[ILuv_UMan]

Shares of Harley-Davidson Inc. (NYSE:HDI - News) the motorcycle maker cut its profit and production targets for the year.

"While we continue to regard Harley as an excellent company, its long-term growth rate is now very much in question," analyst Edward Aaron told clients in a note.

 

[pwrpony]

BUMMER! :roll:

 

[Guest]

It was only a matter of time.

 

[dud-57]

At least they are being honest about their projections.

With unsold inventory backing up in the warehouses, even Harley knows that there is a limit to the number of folks willing to pay a premium for the "you wouldn't understand" mystique.

Honestly, I wish Harley continued luck in selling their nice-looking bikes. However, I fear that all the accountants and insurance-selling biker wannabes that have jumped on the bandwagon, thinking that Harleys appreciate in value, are going to be sorely disappointed.

Similar wailing has been heard here when heavily discounted VTXs have been sold to clear out the production glut. My logic is "We bought the bike we wanted so that we could ride it." As Chi-Spike has observed "If you want an investment, buy land."

 

[Square Bill]

Yeah, but I think a lot of guys get comfortable paying the premium on the HD thinking, "I can always sell it and get my money back." If depreciation starts to pick up on HDs, I think it could quickly become a free-fall for the HD market (as guys shift their mind set and pick up less expensive used HD bikes or, as we already know to be superior, metric bikes). That's my prognostication anyway. Should be interesting.

I rode my little brother's Sportster last weekend. It was like riding an antique motorcycle. They sure do have some cool mods though.

 

[Gary in Indiana]

Well, since Honda owns a big, big block of that stock we should be concerned. Harley owns Holiday Rambler RV's and that business is in real trouble with $3.00/gallon gasoline prices looming.

 

[dd3genrider]

Well, since Honda owns a big, big block of that stock we should be concerned. Harley owns Holiday Rambler RV's and that business is in real trouble with $3.00/gallon gasoline prices looming.

Harley is a great success story. The main man (CEO) is retiring and the new projections may be something the new guy can show improvement with...

At least gasoline prices will be falling a bit, soon. $3.00/gal next summer. Not this one.

 

[Square Bill]

I was speaking more of the industry-wide impact of depreciating Harleys. HD is a great company, and I agree that the projections may be a set up to allow the new CEO to be a success story, but for the average consumer, confidence in the HD brand is everything. Like I said earlier, should be interesting.

 

[REALBOB]

I was killing time with a brother at a HD dealer in Memphis & we noticed that inventories were up and prices were way down compared to prices in the past there. Salesperson explained that the 03 's were alot more expensive that the 05's since they were anniversary editions. Yet custom production bikes like the RK's & Fat Boys were way overpriced and sitting on floor for a long time before sale. For example the new RK with custom paint & the "squirming beagle" 103 C.I. engine was about $31,000.00. Way over MSRP!

 

[iCe]

OTB mark...

 

[hackenfort]

Honestly, I wish Harley continued luck in selling their nice-looking bikes. However, I fear that all the accountants and insurance-selling biker wannabes that have jumped on the bandwagon, thinking that Harleys appreciate in value, are going to be sorely disappointed.

One of buddies, is currently finding out how much "his investment bike" is worth in the real world market. Last time I spoke with him, the lowered his price a lot , but the offers were still thousands off what he wanted. He's been trying to sell it for two months, to pay for the Chief he bought this past winter.

I remember well, two summers ago, he took my VTX for a ride. Came back raving about the power and how he loved the bike except the "Honda" name. It did promped him to put a big bore and stroker kit on his Fatboy.

I too wish them luck, but at the same time, think this could be the first market adjustment.
Kevin

 

[Square Bill]

It's all really a non-issue anyway. What person in their right mind would ever sell their VTX?

 

[Knightrider]

I know a couple of guys that have been trying to sell the Harleys since last summer and no one will come within a few grand of what they want for their bikes. I think the resell value was a big hype all along. How many people do you know would buy a used bike for the same price as a new one? I do know a guy that bought a Fat Boy for $500 less than a new one sells for. It only had 1200 miles on it. But there was $5K of after market stuff on it so you can say the bike lost $5K in value in less than a year.

 

[Monstermile]

I guess the mystique is finally wearing off. I wonder how long the "$5k over MSRP" dealerships will last.