Performing well in the quarter were ATW, FL, SIG, and Oshkosh (OSK
). OSK appreciated over 30% in Q3 due to in part to investors growing more confident that the company’s earning power over the next few years would be greater than the expectations of just a couple of quarters ago. Additionally, the higher confidence can also be attributed to management’s more focused attention on reducing costs and improving the profitability in their Access Equipment, Commercial, and Fire & Emergency divisions. The stock closed the quarter at $27.43, and we believe the shares may rise further over the next couple of years as the company strives to achieve its target of over $4.00 in earnings per share.
From FPA Capital’s third quarter commentary