Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Oshkosh Has The Margins; Can It Grow Revenue Enough?

It has been an interesting run for specialty vehicle manufacturer Oshkosh (NYSE:OSK) over the last three or four years. The company was able to leverage its long expertise in tactical vehicles for the defense market into strong revenue and cash flow during the wars in Iraq and Afghanistan, but the sharp declines in defense demand, coupled with a weak market for construction-related and municipal vehicles, cut the shares down almost two-thirds between mid-2010 and the fall of 2011.

Oshkosh's struggles attracted the attention of Carl Icahn, but management successfully fended off his efforts by convincing shareholders that the company's MOVE strategy was the better plan for the company. I'd argue that the company's running tally of strong quarterly...

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