BLBD - Blue Bird Corporation Takes Me To School

2024-03-13 13:45:59 ET

Summary

• Blue Bird Corporation has seen rapid growth and robust cash flows, outperforming the broader market with a stock increase of 53.5%.
• The company's revenue has increased by 41.5% in 2023, with a significant rise in sales in the Bus segment.
• Management forecasts a positive outlook for the future, with expected growth in units ordered and improved profitability.
• If growth is achieved as expected, the upside for investors could be quite appealing.

If you have difficulty admitting that you are wrong, you absolutely will not make for a good investor. The fact of the matter is that investment decisions made by even the best of us are not always correct. Over the past couple of years, I have worked hard to make sure that I am more open with myself so that I can learn from my mistakes. One company that I have been dead wrong about, for instance, is Blue Bird Corporation ( BLBD ), a firm that's focused on the electrification of buses. Back in March 2022, very close to two years ago from the current date, I talked about how the company had a rough couple of years. The worst at that time appeared to be over, and I even acknowledged that shares could be undervalued. But at the end of the day, a lot was riding on whether or not management's expectations would come to fruition. Because of the uncertainty associated with that, I ended up rating the business a 'hold'....

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