Harley-Davidson, Inc. (NYSE:HOG)

CAPS Rating: 2 out of 5

The Company operates in two business segments: Motorcycles and Financial Services.

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Player Avatar JaysRage (89.06) Submitted: 2/9/2011 9:44:11 AM : Underperform Start Price: $40.78 HOG Score: +7.69

Harley Davidson has done a reasonable job of rebuilding themselves into a viable business model with sustainable costs. That said, the brand is not what it once was. Unless Harley can effectively brand itself with one of the younger generations, continuing to milk their older customers with "Trikes" and other offerings is only delaying inevitable, the death of this once great company. They have also had a runup far past what the improvements will gain them in the short term.

Member Avatar JaysRage (89.06) Submitted: 3/7/2011 12:22:22 PM
Recs: 0

I have to admit, the yield on the most recent debt coupons is pretty low. It is good for HD to be able to finance at such a low rate. This could have a positive near-term impact on the company, depending on how they use the money, of course. I think it also should put the kabosh on buyout talk, which was ridiculous for any Warren Buffet company anyway.

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