Oshkosh (NYSE:OSK)
is a frustrating company/stock for me in many respects. The valuation
on the shares and the potential of a better-run business keeps it on my
watch list, but I continue to be concerned about what I see as an
overlooked erosion in the company's core Access Equipment business.
Winning the JLTV contract should bring in a long run of profits and cash
flow, but the benefits won't kick in for a while.
Oshkosh remains what it has long been to me - a potentially
undervalued stock attached to an underperforming company. I can see how
Oshkosh shares should trade above $40, but I simply don't have
confidence in the business at this point and I have real questions about
the prospects for long-term valuation creation.
Read more here:
Oshkosh In A Value/Value Trap Puzzle
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