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There is a very good article in today's WSJ about Harley Davidson. The stock dropped 12% yesterday. Today Goldman Sachs has issued a "sell" to investors. Goldman is predicting that Harley's sales will be down over 30% this year. Profits down over 95% this year. What they are really worried about is the Harley credit with financing bike sales. The loans out on the bikes are NOT doing well at all.
It will be a very interesting for all the motorcycle manufactures.
 

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I noticed that on the stock reports too. Then I checked Honda and it was unchanged. There were several Honda stocks and maybe I checked the wrong one.

prs
 

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might be time to buy some stock. can't imagine them going under. am i wrong?
 

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Goldman is predicting that Harley's sales will be down over 30% this year. Profits down over 95% this year.
Actually, it is the <Financial> sector of Harley Davidson that will take a profit hit of 95%, not Harley Davidson the Motorcycle division. In addition Goldman is predicting a 30% drop in motorcycle sales, not a 30% drop in specifically Harley Davidson sales. I imagine Harley sales will indeed take a hit, just like everything else has.

Harley extended a LOT of credit to subprime borrowers during 2006 and 2007. Those loans are now running at over a 6 percent default rate (over 60 days due). The financial division of Harley Davidson is responsible for about 20 or 25 percent of the Motor Company's profit, so yes, this is gonna hurt, but it isn't as bad as it seems. Harley will have to tighten their credit underwriting guidelines and that will also impact sales negatively.
 
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