Just when most investors believe it shares had topped out and were ready to level off, OshKosh (NYSE:OSK) goes and wins yet another huge contract.

When I first started tracking the heavy-equipment manufacturer late last year, shares were going for just $5.76. After a quick, in-and-out recommendation, readers that followed my recommendation locked in gains of 35%.

Not bad, but we should have held our shares.

As I write, those same shares are trading for over $34.00, good for gains of just shy of 500%, up 25% today alone.

Obviously, when a stock surges by that much in that short of a period, the market made some forecasting errors. In the case of Oshkosh, nobody could have predicted the company’s ability to deliver a knockout right hook to its competition.

After all, Oshkosh has some fierce competition, chiefly BAE Sytems.

David versus Goliath

Over the six months, shares have soared based on the news Oshkosh was awarded a billion-dollar contract from the Pentagon. While today’s news that the company locked in yet another $280 million worth of Army spending is not nearly the size of the previous deal, it highlights the fact that BAE is having one tough time beating the deals Oshkosh is putting on the table.

With several major contracts under the company’s belt, investors are beginning to realize Oshkosh may no longer be a small, niche player.

Thanks to over $1.3 billion in government-funded revenues so far this year, Oshkosh appears to be building enough momentum and financial stability to turn the company into a fantastic growth story.

As for BAE, the top-line figures the Street is putting onto Oshkosh’s income statement are being pulled off the British firm’s valuation. Shares of BAE were down by over 5% today.

While we missed out on spectacular triple-digit gains, I am not going to complain one bit.

First, we locked in 35% gains in the eye of a nasty recession. Next, the market’s recent action proves I was not the only one limiting the company’s growth potential.

And finally, who is going to complain when an American company is locking in jobs building trucks for American forces?

Here’s a tip of my hat to Oshkosh and its winning ways. Keep up the good work.

Source: David versus Goliath: Oshkosh Wins Yet Another Big Contract

What does the government have up its sleeves this time? While the president is on vacation (playing golf with shady business connections), the White House put out a report detailing how the economy is much worse off than it originally anticipated.

Of course, Wall Street shrugs it off, virtually saying, “Washington was wrong? What else is new?”

Most intriguing, or alarming, is the White House’s latest deficit predictions. Instead of the $7 trillion estimate predicted in May, our executive branch is now expecting a gap of $9 trillion.

It turns out the notion of higher taxes really does decrease revenues.

With a cost of $2 trillion, it was an expensive lesson to learn for the rookie administration, especially as it tries to prove the benefits of a trillion-dollar healthcare overhaul.

Good luck with that

When news like this hits the Street, it is vital to remember, the Obama administration does not do anything unless it has positive political ramifications. You can bet the spinsters are going to turn today’s “dire” figures into a public-relations campaign for even more fiscal stimulus and government spending.

That is horrible news if you are a taxpayer or an American creditor. But fantastic news for the company’s already bloated from suckling on the raw teats of the American taxpayer.

The nation’s auto industry is currently sick in bed dealing with the hangover and rebound shock of the sudden weaning from public assistance.

Now that the $3 billion Cash-for-Clunkers program is officially over, automakers are wondering how long the artificially created dry spell will last.

The pain is just as bad for the nation’s car dealers. Not only are their showrooms going to be empty for the next several weeks or months, their banks accounts will look just as bleak until Uncle Sam finds his check-writing pen.

But not every stimulus-fueled company is forced to deal with the short-term gyrations created by a drive-by government.

Two companies that are in no jeopardy of giving back their recent stimulus-fueled gains are Oshkosh (NYSE:OSK) and Rentech (AMEX:RTK).

Shares of Oshkosh have soared by nearly 400% since I first mentioned the company’s investment possibilities earlier this year.

Thanks to a load of military-backed orders for vehicles suitable for the escalating fight in Afghanistan and the increased demand from infrastructure-related stimulus spending, the company’s top line is growing by the minute.

As a manufacturer of heavy equipment used in the building industry, the military and the public service sector, Oshkosh investors do not have to worry about a sudden turnaround as political attention moves on to the next hot topic.

While another set of triple-digit gains are unlikely, Oshkosh will continue to outpace the overall market, with equal or less risk, every investor’s ultimate goal.

Green with profits

For a little more risk, but plenty more potential in the return department, Rentech is worthy of our attention. Shares of the company are on the move thanks to the ever-increasing talk of a “green” economy.

If you read these pages often, you know I have covered this company several times over the past couple of months. There is a good reason. Its share price continues to rise.

In late July, shares of the synthetic-fuels developer were trading for just $0.50. Today, it will take over $2.00 to get your hands on the up-and-coming company’s revenue stream.

Why the surge?

After years of promising big potential, the $400 million company is finally making good on its potential.

First, the company announced its synthetic aviation fuel will be allowed in commercial-grade blends. The news opened the company to a multi-billion industry.

And most recently, a handful of airlines at Los Angeles International Airport announced they would be using Rentech’s synthetic diesel in the ground-based vehicles. It is a way for them to take advantage of Washington’s “green” kickbacks.

Investors should view this news as the turning point for the young company’s future. It is one of the first big stories that does not mention a “potential” market. Instead it is a fact that Rentech’s fuel will be in their tanks.

While I would be much happier to see these two companies surging in value without assistance from the political machine in Washington, smart investors will take the “green” industry gains and the free infrastructure handouts while they can.

With a public debt estimated to increase to nearly three-quarters of the nation’s GDP in the next decade, who knows how long the government will have the ability to spend?

We might as well get our tax dollars back while we still can.

Source: Two Companies Taking Advantage of the Growing Deficit

HudBay Minerals and Lundin Mining have agreed to join forces in an effort to fight the current downtrend. Under the proposal, Lundin shareholders will get 0.3919 of a Hudbay share for each Lundin share held. Hudbay ended the day down C$2.07 at C$3.16, while Lundin added C$0.04 to close at C$1.05.

Finally, a sign that there is equity financing out there for the right deal, Red Back Mining has entered into a bought deal comprising 17.15 million shares at C$3.50 a piece for a cool C$60.02 million. Red Back ended the day up C$0.60 at C$4.60.

Osisko Mining continues to hit the goods at the South Barnat zone near is its Canadian Malartic deposit in Quebec. The latest results included 185.2 metres grading 1.97 grams gold per tonne. Osisko ended the day up C$0.13 at C$1.70.

Shares of Katanga Mining added C$0.01 to C$0.39 after reporting that the depressed price of cobalt has resulted in the temporarily suspension of mining operations at the Tilwezembe open pit and ore processing at the Kolwezi concentrator in the Democratic Republic of the Congo.

The trading week ended on a positive note with news of a large equity financing indicating there is money out there that will to be put to work for the right assets. We will see what Monday trading has in store.

Source: Resource Stock Roundup Monday, November 24th, 2008

For the tale of the tape, the TSX Exchange fell 0.15%, while the TSX Gold Index tacked on 1.3% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 0.78% with the declining issuers once again outpacing the advancers this time by a 464 to 403 margin on volume of 140 million shares traded.

Shares of Golden Predator Mines (GP) added C$0.10 to close at C$0.87 after the company reported a 3.5 metre intercept running 1% tungsten at its Springer project in Nevada.

Osisko Mining (OSK) continues to hit the goods at the South Barnat target some 1.2 km northeast of its Canadian Malartic deposit in Quebec. Highlights included 2.4 grams gold per tonne over 141.5 metres and 2.76 grams gold per tonne over 71.2 metres. The market however remains reluctant as Osisko ended the day down C$0.06 at C$3.54.

Sprott Resource (SCP) completed the sale of 17.05 million shares of PBS Coals and in the process pocketed over C$97 million after commissions. The cash rich company closed up C$0.09 at C$2.79.

The A flood of drill results are expected over the next few weeks and perhaps this will ignite a rather lackluster junior market currently plagued by a notable lack of buyers. We will see what Thursday trading has in store.

Source: Resource Stock Roundup Thursday, September 25, 2008

For the tale of the tape, the TSX Exchange added 1.58%, while the TSX Gold Index fell 4.2% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, rallied 0.56% with the declining issuers edging out the advancers by a 511 to 408 margin on volume of 143 million shares traded.

Cash rich SNS Silver and cash-poor Andover Ventures (AOX) have inked a deal to merge. Under the proposal, SNS shareholders will get half an Andover share for each SNS share held. SNS has also provided Andover with a C$2 million bridge loan. SNS closed flat at C$0.16, while Andover dropped C$0.03 to close at C$0.34.

ATW Venture (ATVWF) cut 13.37 grams gold per tonne over 15.6 metres at its Burnakura gold mine in Western Australia. The result was good enough for a C$0.06 gain as shares in the junior closed at C$0.44.

Sherwood Copper (SWK), which added C$0.70 to close at C$4.30, hit 9.6 metres grading 2.58% copper at the high-grade Minto copper-gold mine in the Yukon.

Not to be outdone, Osisko Mining (OSK) tabled a 258 metre intercept running 2.13 grams gold per tonne at the South Barnat target some 1.2 km from its Canadian Malartic project in Quebec. Osisko ended the session up C$0.41 at C$2.95

Shares of Cameco (CCJ) continued to slide closing down C$0.63 at C$23.44. The company reported that production at its Key Lake mine in Saskatchewan will come in lower than expected. Earlier the company reported a green light to restart operations at its Port Hope uranium hexafluoride conversion plant that was shut down in July 2007 for contaminated soil. On the downside, its supplier of hydrofluoric acid has terminated its contract leaving the company without the key ingredient needed to produce uranium hexafluoride.

Liquidity or the lack there of remains a major stalling point for the more speculative issues. Cash rich companies can sit back and wait things out but the cash poor explorers will be fighting for survival by looking to do deals. Meanwhile, the prospects moving the debts off the books of the financials by throwing all the bad ones into a U.S. government vehicle may have the markets jumping for joy but one has to wonder as to the scale and practicality. We will see what Friday trading has in store.

Source: Resource Stock Roundup Friday September 19, 2008

• Toyota Motor Corp. (ADR: TM) plans to drop more than $1 billion on a new factory in Sao Paulo, Brazil, Valor Economico reported without citing a source. The new factory would be a bid to capture a share of the economic growth and rising incomes in South America.

• A pair of mortgage executives in India said the country’s five-year property boom is coming to an end as the number of available homes increases along with interest rates. “Due to the state of the equity markets, many investors who would have bought a second or a third house are abstaining from doing so,” Keki Mistry, vice chairman of Housing Development Finance Corp., India’s largest provider of home loans, told Bloomberg News. “Genuine home buyers who are looking to buy a house for self occupation will continue to buy.”

• The economy turned in a better, though still unimpressive, performance in the first quarter of 2008, edging up a full 1%, the Associated Press reported. The Commerce Department had originally estimated a growth rate of 0.9% for the January-to-March quarter.

• Existing home sales picked up in May, but home values continued their decline, according to a report from the Associated Press. The National Association of Realtors reported that sales of existing single-family homes and condominiums rose by 2% to 4.99 million units last month. However, the median price of an existing home sold in May dropped to $208,600, down 6.3% from a year go.

• Anheuser-Busch Cos. Inc. (BUD) is expected to reject InBev NV’s unsolicited $46.3 billion offer, saying it undervalues the company, and announce its own restructuring plan, the Wall Street Journal reported. The company will then outline its own restructuring, which includes the sale of nonessential assets such its theme parks in an effort to boost its stock price.

• Bank of America Corp. (BAC) announced it would cut approximately 7,500 jobs after its merger with Countrywide Financial Corp. (CFC), Reuters reported. The second largest U.S. bank will let go of 3% of the combined workforce after its acquisition of the largest U.S. mortgage lender.

• Kinross Gold Corp. (KGC) stock gained almost 12% yesterday (Thursday) on the back of a gold increase, which saw a 4% gain to $915 an ounce. The gold miner’s shares gained $2.35 to close at $22.34. Canada-based Eldorado Gold Corp. (EGO) saw a similar gain, with shares climbing over 10% with a 77-cent increase to close at $8.02.

• Oshkosh Corp. (OSK) shares plunged over 33% yesterday (Thursday) after the aerial work platforms manufacturer forecast a loss of as much as $1.32 per share in the third quarter, Bloomberg News reported. Shares plunged $11.22 to close at $22.29.

Source: Global Investing Roundups Friday, June 27th, 2008