Skip navigation
MOST POPULAR RELATED TAGS
  • TOPICS
  • SECTORS
  • COMPANIES

MAD MONEY FEATURES

Podcasts PODCASTS
Watch the Lightning Round whenever and wherever you want.




Widget OFFICIAL MAD MONEY WIDGET
Grab this all-in-one application and get recaps of the show sent right to your desktop or blog.




Soundboard CRAMERS SOUNDBOARD
Admit it: You've always wanted to hit the "They
know nothing!" button. Here’s your chance.




Mad Money PhotosCHECK OUT OUR PHOTOS
Check out Cramer on set, back to school, behind the scenes and more.




ShopSHOP FOR MAD MERCHANDISE
Buy Cramer books, bobbleheads and other Mad Money merchandise.




Ringtones RING TONES
Pick up the phone! It's Cramer! New Mad Money sounds for your cell phone.




Mobile AlertTEXT MESSAGE ALERT
Mad Money's mobile. Get show highlights sent to your phone.







Font size:
Apr.24
6:59 PM ET
Thursday, 24 Apr 2008
Otter Tail's Diamond in the Rough

As much as Cramer likes wind-power company Trinity [TRN  Loading...      ()   ], it’s not his favorite stock in the sector. That honor goes to Otter Tail, a collection of disparate businesses that includes DMI Industries, a fast-growing wind tower manufacturer.

Cramer sees DMI as a diamond in the rough of sorts, that just needs to be spun off to unlock its tremendous value. Just how valuable is it? Analysts at D.A. Davidson predict that DMI alone – forget about the rest of Otter Tail’s [OTTR  Loading...      ()   ] businesses – should see 63% earnings growth in 2008.

If DMI offered shares of its own, there’s a good chance Wall Street would jump all over it, Cramer said. He figures a spun-off DMI would be worth about $37 a share, which is $1 more than Otter Tail’s trading at now.

In the meantime, DMI’s handling business as it should while it waits for Otter Tail to realize wind power’s true potential. DMI already built over 600 towers, holds 18% of the market and it’s expanding one of its Canadian plants to boost production. Not to mention, DMI operates in some of the best wind markets in the U.S., namely North and South Dakota, Montana and Minnesota, just to name a few.

Be careful with Otter Tail, though, if you choose to buy a position. The stock doesn’t trade much, so Cramer recommended using limit orders. And whatever you do, don’t pay over $37 for OTTR, he said.

Questions for Cramer?

Questions, comments, suggestions for the Mad Money website?

© 2008 CNBC, Inc. All Rights Reserved

Permalink: /id/24294700

HOME  |  NEWS  |  MARKETS  |  EARNINGS  |  INVESTING  |  VIDEO  |  CNBC TV  |  CNBC PLUS  |  CNBC HD+
About CNBC   |   Site Map   |   Privacy Policy   |   Terms of Service   |   Advertise   |   Help   |   Feedback   |   Video Reprints
  Data is a real-time snapshot   *Data is delayed at least 15 minutes

Global Business and Financial News, Stock Quotes, and Market Data and Analysis