| Author | Message | ||
     Danger_dave |
AP reports Harley stock up 12% on a profit in the finance division. | ||
| Hughlysses |
“We are pleased with the continued moderation in the rate of decline of retail new Harley-Davidson motorcycle sales again in the second quarter."  I think that's about as un-positive of a positive statement as one could make. Complete report here: http://www.roadracingworld.com/news/article/?artic le=41273 | ||
| Danger_dave |
AP report http://www.google.com/hostednews/ap/article/ALeqM5 iby6HPwmtvHa0aEPTtDQb0Bm5KzQD9H2VTSO0 | ||
| Hughlysses |
Wouldn't it be ironic if the profit in the finance division is due to all the interest they're making on loans made on fire-sale Buells? | ||
| Cityxslicker |
yes, but that is still only at 26 a share... I dumped it when it 42 (the universal answer to everything) It was a nice pump and dump for me, and since they are no longer supporting Buell... I see no reason for them to darken my portfolio again. | ||
| Steveford |
It'll be interesting to see how it goes with with the Union talks. Did I mention that I spoke with a recently laid off H-D employee (he was being replaced with a temp) who was appalled at the product cheapening going on? His exact words were "in a few years there will be so many Chinese parts on a Harley you won't even recognize it". Good for the stockholders, I guess. | ||
| Pkforbes87 |
Hughlysses, I'm riding one of those firesale Buells and it's financed through HDFS. The money I borrowed from HDFS is in turn borrowed by them from Berkshire Hathaway (Warren Buffett) The kicker is, I pay HDFS 3.9% interest while they pay Berkshire 15% interest. HDI may have sold a motorcycle, but my guess is that by the time it's paid off, they won't have made one red cent of profit. Once a month when I make those minimum monthly payments, HDFS goes a little further into the red. | ||
| Onezeno |
The kicker is, I pay HDFS 3.9% interest while they pay Berkshire 15% interest. I doubt they're paying 15% | ||
| Buellridersww |
Are you sure it stated 15%, not 1.5%???? Mostly HDFS is making more money out of the payee.... | ||
| Pkforbes87 |
http://www.harley-davidson.com/wcm/Content/Pages/H D_News/Company/newsarticle.jsp?locale=en_US&articl eLink=News/0378_press_release.hdnews&newsYear=2009 &history=news "MILWAUKEE (February 3, 2009) - Harley-Davidson Inc. (NYSE:HOG) today priced an offering of $600 million of its senior unsecured notes as part of the Company’s plan to fund the ongoing motorcycle lending activities of its wholly owned finance company, Harley-Davidson Financial Services (HDFS). Davis Selected Advisers, L.P., a long-time investor in Harley-Davidson, Inc. and the largest holder of Company stock, and Berkshire Hathaway, Inc. each committed to purchase equal portions of the aggregate principal amount of the notes. The offering is being made under the Company’s existing shelf registration for public offerings of securities, including debt. The notes will be due in 2014 and will bear interest at a rate of 15 percent per annum. “This offering represents an important next step in executing our stated strategy for funding the lending activities of HDFS,” said Tom Bergmann, Chief Financial Officer of Harley-Davidson, Inc and Interim President of HDFS. In late January, Harley-Davidson unveiled a three-part strategy to attempt to address the current economic environment. That three-part strategy focuses on stimulating consumer demand by investing in the Harley-Davidson brand, getting the Company’s cost structure right, and securing additional funding for HDFS, which makes wholesale loans to dealers and retail loans to consumers. The offering was arranged by Morgan Stanley, and Citigroup, Deutsche Bank Securities, J.P. Morgan and Morgan Stanley acted as lead underwriters for the transaction." (Message edited by pkforbes87 on July 21, 2010) | ||
| Danger_dave |
>>I think that's about as un-positive of a positive statement as one could make. << Admirable. I could only aspire. | ||
| Hootowl |
"I doubt they're paying 15%" Any rational person would. Makes you wonder what the hell they were thinking about when they borrowed the money at that rate. | ||
| Trojan |
Profits may be climbing back up slowly but actual H-D bike sales (as opposed to 'lifestyle' accessories) are down year on year compared to last years figures (which were poor to start with). Reading between the lines I can only assume that they have written off some losses on the financial services side to enable the figures to look better, but bike sales remains a problem worldwide. | ||
| Court |
It is indeed at 15% and due in May 2014. Imagine the business model of borrowing money at 15% and lending it at 4.59%. Harley's financial showed two things. Instant profits and much tougher time ahead. They've "created" a paper profit in the 2nd quarter by moving shells about. Either that of HDFS just made the greatest turn around in the history of American free enterprise. What they lack is a clear vision of who their customer is, what they want and how to satisfy those needs. Their mindset is locked in 1993. | ||
| Court |
By the way . . . I say that with just a quick glimpse at the 2Q-10K. I'm taking on the plane with me and am going to read it in detail this weekend. Eager to see if I read anything that changes my mind. | ||
| Danger_dave |
>>2Q-10K<< Geek. Doesn't it seem like Y2K was only 10 minutes ago? | ||
| Court |
Hahaha . . . it does . . . Still wishing I'd bought stock in portable generators. You should have seen them hunkered down in Times Square awaiting the end to civilisation (spelled for your benefit) as we know it. 2Q-10K - 2nd Quarter Form 10-K files with the U.S. Securities and Exchange Commission. It's the wifey's world . . . it's all "geek" to me. | ||
| Cityxslicker |
you will get your second change, there is another millenial end of the world hysteria coming.... 12/21/2012 Ammo, guns, gold, gas, generators, solar panels, water filtration, MRE's ; the new currency - I will be out of country when it happens, just like last time. Have fun at the riots | ||
| Danger_dave |
Oh dear. We're not in Kansas any more Dorothy. 'Wifey's World' is a porn site. | ||
| Oddball |
And she's attractive, busty and seems to really like protein.  As for HD, it will be a long slow glide at best. I wonder just how small they will end up when things finally go up? That loan sounds about as good as the balloon payment mortgages that buried many when the real estate bubble popped. |
