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Icahn’s Oshkosh Reign Slims Down to 6.78%

December 11, 2012 | About:
As of yesterday, Carl Icahn has reported giving up more of his shares of specialty truck producer, Oshkosh Corp. (OSK), trimming 1.2 million shares, his second reduction after deciding to call it quits in his tender offer several days ago when he failed to receive Oshkosh shareholder support. (Read Icahn Backs Off From Oshkosh.) The share disposal deflates Icahn’s ownership down to 6.78 percent from 8.13 percent six days ago. The reduction accounts for 16.57 percent of his overall stake, according to GuruFocus Real Time Picks.

Over the past few months, Oshkosh confidently battled Icahn in a drawn out, publicized proxy fight. The basis of Icahn’s activist endeavors center around his belief that Oshkosh is undervalued and poorly managed. With every attempt, Oshkosh retaliated by reassuring its shareholders that Icahn’s claims were false and inadequate.

In a series of of news releases, Oshkosh debunked Icahn’s claims, which at the end, helped Oshkosh prove to be victorious in the proxy. In an October statement regarding Icahn’s tender offer, Oshkosh chairman Richard M. Donnelly affirmed:

“Your Board encourages shareholders to send a clear message to Mr. Icahn that you will not allow him to pursue his self-serving agenda and will not permit him to take control of Oshkosh for a price significantly below the Company’s value. Tendering into Mr. Icahn’s Offer would only encourage Mr. Icahn in his opportunistic attempt to acquire Oshkosh at the inadequate price of $32.50 per share – a price that even he admitted was below the Company’s value.”

Oshkosh stock is up 0.63 percent this morning, at the price of $28.70. Its valuation on GuruFocus’ Fair Value calculator is $30.61.

Oshkosh is ranked 1 star in Business Predictability, 6 in Financial Strength and 7 in Profitability and Growth.

Pertaining to its fourth quarter, Oshkosh reported $2.27 per diluted share, which exceeded its board’s expectations of between $2.05 and $2.15 per share. It also accumulated $215 million in free cash flow, which makes for a stronger balance sheet for the quarter.

For the full year, Oshkosh reported net sales of $8.18 billion, compared to its $7.57 billion last year.

For the past 12 months, its revenue has been growing at a rate of 7.3 percent, and its book value growth rate is a positive 10.9 percent. GuruFocus Warning Signs alerts of the company’s P/B and P/S ratios close to their one-year highs, as well as a healthy Piotroski F-Score. However, it also warns that its Altman Z-Score is in the grey area which implies a bit of financial stress, as well as a declining gross margin and a divergent cash flow.



With a market cap of $2.69 billion, Oshkosh is known for designing and manufacturing a broad range of specialty access equipment, commercial, fire, emergency and military vehicles and vehicle bodies. It operates under several brands in addition to Oshkosh, including JLG, McNeilus, Jerr-Dan, Oshkosh Specialty Vehicles, Frontline, CON-E Co., London and IMT.

View more of Icahn’s latest trades here. Also view his undervalued stocks, top growth companies and high yield stocks.

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About the author:

Dianne Tordillo
Dianne Tordillo is staff writer for GuruFocus.com. She reports on a variety of financial news, primarily dealing with investor portfolios and stock trades. Her articles also highlight insider trades, as well as the many useful features of GuruFocus.

Visit Dianne Tordillo's Website


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