The recent correction in utility stocks provides an asymmetric investment opportunity in Otter Tail (OTTR). The current valuation does not reflect the sale of non-core assets and more predictable earnings/cash flow, high operating leverage, debt reduction or positive fundamentals in core utility business. The recent takeover of NV Energy (NVE) by Buffett highlights the value in regional utilities with a history of strong operating performance.
Otter Tail is a conglomerate with four operating segments.
Otter Tail Power Company provides electricity to customers in North and South Dakota and Minnesota. The company has been producing electricity since 1909.
Otter Tail Energy Services Company provides technical and engineering services.
BTD Manufacturing Inc....