SchaeffersResearch.com - Daily Contrarian - Mar 01, 2010Oshkosh Corp. (OSK)
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Steve Barger
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KeyBanc Capital MarketsThis Barron's article contends that cutbacks in defense spending threaten Oshkosh's (
OSK) military truck business, which is the center of the company's earnings strength, and that the U.S economy is still too weak for the contractor's other units to pick up the slack. While the U.S. Army recently reaffirmed its award of a key $3 billion, five year contract to supply as many as 23,000 cargo trucks and trailers for use in Afghanistan, Iraq, and other parts of the world, the article argues that the news isn't good enough to sustain a stock price that has gained 448% over the past 12 months.
Furthermore, Steve Barger, an analyst for Keybanc Capital Markets, recently downgraded the stock to "hold" from "buy," citing concerns about future earnings in the face of military cutbacks by the Obama administration and the end of the M ATV program this summer. Senior analyst Bill Driscoll, of RBM Capital's 1837 Partners, shares some of Barger's worries
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This Barron's article contends that cutbacks in defense spending threaten Oshkosh's (<span class="company">OSK</span>) military truck business, which is the center of the company's earnings strength, and that the U.S economy is still too weak for the contractor's other units to pick up the slack. While the U.S. Army recently reaffirmed its award of a key $3 billion, five year contract to supply as many as 23,000 cargo trucks and trailers for use in Afghanistan, Iraq, and other parts of the world, the article argues that the news isn't good enough to sustain a stock price that has gained 448% over the past 12 months.<span class="sent"> Furthermore, <span class="analyst">Steve Barger</span>, an analyst for Keybanc Capital Markets, recently downgraded the stock to "hold" from "buy," citing concerns about future earnings in the face of military cutbacks by the Obama administration and the end of the M ATV program this summer.</span> Senior analyst Bill Driscoll, of RBM Capital's 1837 Partners, shares some of Barger's worries....This Barron's article contends that cutbacks in defense spending threaten Oshkosh's (<span class="company">OSK</span>) military truck business, which is the center of the company's earnings strength, and that the U.S economy is still too weak for the contractor's other units to pick up the slack. While the U.S. Army recently reaffirmed its award of a key $3 billion, five year contract to supply as many as 23,000 cargo trucks and trailers for use in Afghan
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