Friday, January 30, 2015

Seeking Alpha: Little Clarity, But Ample Concerns, With Oshkosh

Investors in the industrial/machinery sector have quite a lot to mull over these days. The steep drop in energy prices has undermined the growth plans of many companies, while the persistently sluggish recovery in construction has taken its own toll. Add in concerns about Europe and China and it's not a terribly comforting picture.

In the case of Oshkosh (NYSE:OSK) it's arguably worse from an uncertainty standpoint. Oshkosh is logging good orders in access, but utilization rates aren't great and the ABI hasn't broken out. Add in the potentially enormous, but very uncertain, award for the JLTV vehicle contract and you can generate a wide spread between the bull and bear scenarios. I'm not a big fan of win-big/lose-big investment scenarios unless I've very confident that the conditions support the "win-big" side, and so it is hard for me to get enough comfort with Oshkosh to put my own money into these shares.

Read the full article here:
Little Clarity, But Ample Concerns, With Oshkosh

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