The company’s experienced team is led by the legendary investor Carl Icahn. Mr. Icahn believes that an activist strategy will drive growth in the coming years. This is because corporate balance sheets are rife with cash and credit markets are willing to provide cheap loans. Activism will drive M&A and consolidation of companies and this will, from the company’s perspective, unlock value for shareholders. I believe this argument has substance because other industries are following the same trend. Take, for example, the packaged meat products industry. The industry used to have a lot of participants, but now it is made up of four large companies that have slowly grown through acquisitions.
At present, Mr. Icahn has been involved in a bidding war over Dell. People perceive that his involvement in this whole saga will benefit the stakeholders involved. Icahn Enterprises LP (NASDAQ:IEP) has stakes in other public companies, such as Netflix, Chesapeake and Transocean, and it owns a variety of private companies too.
On top of its impressive capital gains, the company increased its yearly distribution policy to $5 per depository unit. With its proven track record and a sensible activist strategy going forward, I believe the company is a must-have for your portfolio.
Making profits through specialty vehicles
Oshkosh Corporation (NYSE:OSK) is involved in the production of specialty vehicles and vehicle bodies. The company operates through its access equipment segment, defense segment, fire and emergency segment and commercial segment. Oshkosh Corporation (NYSE:OSK)’s 2Q13 results were very impressive, as its EPS figures increased by more than 100% on a YoY basis and by 70% on a QoQ basis.
Oshkosh Corporation (NYSE:OSK) produces industry-leading brands. The access equipment segment produces a wide range of lifting vehicles. This segment is showing growth because of the recovery in the housing industry. U.S. housing starts have increased by almost 10.4% in comparison to last year’s figures. An increase in construction activities means that North American rental companies are refreshing their fleets and driving the sales of this segment.
Oshkosh Corporation (NYSE:OSK)’s defense segment has designed the L-ATV vehicle. The prototypes of this vehicle will undergo several tests by the end of 2013. If successful, the company expects to acquire contracts from the Pentagon as early as 2015. The commercial segment, which produces different types of loaders, mixers and cranes, is also set to benefit from the modest recovery in the housing and construction markets. All in all, the company is a solid package.
Final word
Harman International Industries Inc./DE/ (NYSE:HAR) and Icahn Enterprises LP (NASDAQ:IEP) have great potential going forward. Both of the companies have significant advantages based on unique products and smart management teams. I would advise investors to explore each company further and take a long position as soon as they understand the inherent value in these stocks.
The article Strong Consumer Goods Companies for Your Portfolio originally appeared on Fool.com is written by Usman Ghani.
Usman Ghani has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
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