In 2009: Be a HOG!!!
A lot of companies have been beaten down by the economy, we all know that. But I am an eternal optimist when it comes to the American economy and its ability to come back with a vengeance. In my opinion right now is one of the greatest, and maybe the greatest, time to buy undervalued companies in the last half a century. One company that I have recently added to my portfolio (a little disclosure there) is Harley Davidison (HOG). If there is a company that I can see being around 50 or even a 100 years from now, this is one of them. Here are the following reasons why:
1. Brand Power - Everyone knows what a Harley is and nearly everyone would love to have one.
2. Cult like following - To be a Harley owner is like joining an elite club where everyone likes everyone. It's like being a fireman but way cooler.
3. Nostalgia - Just the name Harley Davidson evokes feelings of good times and euphoria for millions of Americans.
4. Global Market - They are now selling to markets overseas. This is only a recent (past couple years) reality for HOG.
5. Value - I could give you an excel spreadsheet which shows the expected freecash flow, NPV and ROIC, but I will just say that a price under $20 is a heck of a bargain. Think long term.....
If there has ever been a great time to be a HOG, now has got to be it. Ride on!!