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Tuesday, October 28, 2014 2:17:06 PM
(1) Small Cap - LNN has a market capitalization of $1B.
(2) Low Debt - The company has no long term debt and a quick ratio of 2.6.
(3) Sustainable Products - Water is an increasingly precious resource. If you believe global warming theories, drought may become increasingly common creating growing demand for irrigation equipment. Road infrastructure should continue to be in demand. (Wish I'd invested at the beginning with whatever company first came out with all those endless orange cones in construction zones everywhere! They sure sold a few of those!)
(4) Little Government Influence - In some drought prone high population areas governments may take water rights away from agriculture. Still, there are growing numbers of people on the planet and no one is going to willingly quit eating. Food has to be grown somewhere.
(5) Low or Reasonable PE and PEG ratios - The PE at yesterday's closing price was 20.94. The yield adjusted PEG ratio for LNN is 0.99 based on the average of the 3, 4 & 5 year historical eps growth rates. The PE is somewhat higher than I like. The PEG ratio is OK.
(6) Decent & Growing Dividends - The dividend is 1.29% which I consider quite low. The company doubled the dividend in February 2014 and raised it another 3.8% in August 2014. Doubling is good!
(7) Positive Recent Information - Quite a spotty record here. The company's fortunes tend to follow the agricultural industry. Earnings have been substantially lower in the past year due to low crop prices. The company also sold an irrigation system in Iraq, which has only partially been installed due to the wars going on there. The company has not been able to complete the Iraq project, which could result in a charge-off at some point. The company expects slow sales in the irrigation division until crop prices improve. The infrastructure division is doing well. On 10-9-14 Lindsay reported better than expected earnings due to higher irrigation sales as a result of storm damage. This may only be a one time factor, but took the market by surprise.
NOTE: Others have a very negative view on Lindsay's stock. As of 10-15-14 over 42% of the stock's float was held short. Maybe they are all right and I'm wrong, but if really good news comes out there could be a truly explosive price rally. I don't see any catalyst at this time to get the price moving up. However, crop prices are now very low due to very favorable weather patterns and abundant harvests this year. I doubt crop prices will drop a whole lot farther, so the bad news should be mostly in the stock price already. Sooner or later a year will come along when weather conditions cause those prices to spike again. LNN is likely to soar with them. I am willing to wait. I might add to my position by early next year. I notice grain futures rallied starting in February this year, although the good weather ultimately caused them to collapse as summer went on. Perhaps a seasonal pattern?
Recent LNN News
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/16/2024 08:15:04 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 07/15/2024 08:30:04 PM
- Lindsay Corporation Increases Quarterly Cash Dividend • Business Wire • 06/28/2024 10:45:00 AM
- U.S. Futures Decline Ahead of Key Economic Events, Oil Prices Rise • IH Market News • 06/27/2024 11:06:02 AM
- Lindsay Corporation Reports Third Quarter Fiscal 2024 Results • Business Wire • 06/27/2024 10:45:00 AM
- Lindsay Corporation Installs the First TAU-XR™ Crash Cushion • PR Newswire (US) • 06/25/2024 09:45:00 AM
- Lindsay Corporation Announces Third Quarter Fiscal 2024 Earnings Conference Call and Webcast • Business Wire • 06/13/2024 10:45:00 AM
- Lindsay Announces Irrigation Project Valued at More Than $100 Million • Business Wire • 06/03/2024 10:45:00 AM
- Form SD - Specialized disclosure report • Edgar (US Regulatory) • 05/31/2024 10:45:50 AM
- Lindsay Upgrades FieldNET Advisor™ to Improve Irrigation Management • PR Newswire (US) • 05/16/2024 10:45:00 AM
- Lindsay Corporation Announces Quarterly Cash Dividend • Business Wire • 04/05/2024 10:45:00 AM
- US Index Futures Rise, Oil Dips Slightly • IH Market News • 04/04/2024 11:31:45 AM
- Lindsay Corporation Reports Second Quarter Fiscal 2024 Results • Business Wire • 04/04/2024 10:45:00 AM
- Lindsay Announces Agreement to Acquire a Minority Interest in Pessl Instruments • Business Wire • 04/03/2024 08:05:00 PM
- Lindsay Corporation Announces Second Quarter Fiscal 2024 Earnings Conference Call and Webcast • Business Wire • 03/21/2024 10:45:00 AM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/13/2024 09:26:50 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 01/22/2024 07:03:13 PM
- Lindsay to Invest Over $50M to Expand, Modernize Manufacturing Facility • PR Newswire (US) • 01/17/2024 11:45:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/12/2024 11:45:09 AM
- Lindsay Corporation Announces Quarterly Cash Dividend • Business Wire • 01/12/2024 11:45:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/11/2024 09:15:23 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/11/2024 09:15:22 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/11/2024 09:15:17 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/11/2024 09:15:13 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/11/2024 09:15:12 PM
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Southern Silver Files NI43-101 Technical Report for its Updated Preliminary Economic Assessment for the Cerro Las Minitas Project • SSV • Jul 25, 2024 8:00 AM
Greenlite Ventures Completes Agreement with No Limit Technology • GRNL • Jul 19, 2024 10:00 AM
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