You're right, cavalier. I meant to say "heading back towards that level" instead of "to that level". We can't forget that the U.S. Dept of Defense is downsizing big time in the year ahead.
just spitballing here....
high of $55.69 was early May of 15... I'm thinking if you can get anything under say $44.50.. that would good...
I really do believe that with the contract award, that surpassing the 52wk high will happen sooner rather than later. From what I've read so far... OSK plans moderate hiring with moderate production from yr 1-3 and full production to ramp up after the 3rd year.
The only real danger that I can see is if those knuckleheads in DC decide to make this a fight and redo the bidding process.... just my .02
Also agree with both of you. Started a small position only because pps keeps moving with market.
More stable market I would buy more but have to wait as price was dropping as we speak, and so is the market now losing its highs.
Have to ignore the volitilit and jut buy? Let me know what you think. Dooper, $55.69 is pretty ambitious.
I agree with you. It's great that this news came out now, with the stock down from its 52 week high of $55.69. I think it'll be heading back to that level within the next year.
Been following this stock for awhile... with OSK winning the Army/Marine contract I think this is a strong buy.
Opened a small position at $40... going to be interesting to see how this goes in the future.
Sentiment: Strong Buy
Citi values JLTV at $5 per share. That is simply the dumbest thing ever written. JLTV will in theory replace the Humvee. Spare parts and future wars, etc. and the option value alone make this $1b valuation.
If OSK wins this business (if), it increases the value of the defense division by about $1.5-2.0b alone. It is a game changer.
AM General which really only produced the Humvee for years was worth nearly a $1b and they had nothing else.
This stock is very cheap right now, particularly if eps can grow 13% in fiscal 2016. The decline in expected eps for the current year has really knocked the shares down to a very low level. It is at least a $50 stock if they do anything close to the 2016 estimate.
They just projected $3.75 - 4.00 for Q2. Street expects $3.78. I would bet they would beat that.
Plus the stock is valued at 11x PE. This is with Defense at a Trough.
So if JLTV or MSAV come in. This think is going to skyrocket. I love this stock right now. Absolute steal. You basically are getting an option on that business for free.
Why? AM General was worth $1b in its heyday. If OSK got this contract, it would be a game changer.
Analysts have a $60 target without the contract. Add $20b of Revenues and it adds up.