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A Custom Indian Chief like no other

By General Posts

Noise Cycles & Zach Hines take a cruiser model to racing design
by by Jeff Millard

Barber Vintage Motorcycle Festival, Indian Motorcycle debuted a custom Indian Chief like never before utilizing the power of Indian’s Stock 111ci.

Have a glimpse of the photos of the completed build, along with a series of videos filmed and directed by Scott Toepfer.

CLICK Here to View this Incredible Piece of Machinery and its Customization.

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At Largest Market: Two-wheeler sales crash to 10-year-low in FY22

By General Posts

Two-wheeler sales crash to 10-year-low in FY22; motorcycles fall below 9 mn
India is the largest manufacturer of two-wheelers and also the largest market for it. (China being second)

One of the primary reasons for this downfall is the spiraling cost of fuel prices.
by John from https://www.newswwc.com/

New Delhi: Rural distress impacted the Indian two-wheeler segment, one of the largest in the world, in a big way that their sales in 2021-22 fell sharply, for the first time in ten years, to 13,466,000 units, as per the latest data from the Society of Indian Automobile Manufacturers (SIAM). It was in 2011-2012 that the two-wheeler sales were close to this number at 13,409,00.

( India’s Financial Year is calculated as from 01-April-2021 to 31-March-2022 )

Throughout the year, demand for motorcycles and scooters was impacted by rural distress and higher ownership cost amidst soaring fuel prices. Sales of two-wheelers, particularly motorcycles failed to gather momentum even during the festive months, leaving the companies burdened with a pile of unsold stocks. As a result, the overall sales of motorcycles fell below the 9-lakh mark for the first time since 2016-2017, SIAM report said.

One of the primary reasons for this downfall is the spiraling cost of fuel prices. Barring two months, petrol prices escalated in almost all months of FY22, sometimes even thrice a month that severely impacted the demand of entry-level motorcycles which is the primary choice of the budget-conscious low-income consumers.

New motorcycle sales are directly correlated with fuel prices, as 62% of the country’s fuel sales are consumed by the two-wheeler segment.

According to market experts, spike in auto fuel prices has triggered the rate of deferment majorly among the consumers of below 125cc two-wheelers that hold about 80% of the total market. Besides, shortage of semiconductors and high container charges have also deterred the production levels of OEMs.

Besides, frequent price hikes by the OEMs to overcome the spike in input cost coupled with moderation in rural demand hugely deterred the buying sentiments of consumers.

Additionally, electric vehicle demand continues to witness pickup in the states with higher government incentives like Maharashtra, Gujarat, Delhi, Karnataka etc., which are also key markets for conventional two-wheelers.

All the segments except the two wheelers are in green. Passenger vehicle sales grew 13.2% to 30,69,499 units in FY 22 compared to 27,11,457 units in FY21. Sales of passenger cars stood at 14,67,056 units, utility vehicles at 14,89,178 units and vans at 1,13,265 units.

As fuel prices skyrocket and concerns grow over the running cost of petrol and diesel vehicles, the electric vehicles market has quietly started to build up. As fiscal 2021-22 came to a close, the green brigade — still small in numbers — seems to be coming of age, also charged by government subsidies.

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Vance & Hines Reveals New Look for NHRA Pro Stock Motorcycles

By General Posts

Vance & Hines Reveals New Look for NHRA Pro Stock Motorcycles in
Conjunction with Launch of VO2 Military Power Series Program

Following yesterday’s launch of the Vance & Hines VO2 Military Power Series, the Vance & Hines NHRA race team revealed new livery on all three of their NHRA Pro Stock Motorcycles for Veteran’s Day weekend.

The VO2 Military Power Series is a line of air intake products recognizing five branches of the US Military and supporting the Children of Fallen Patriots, an organization that provides educational resources to military children who have lost a parent in the line of duty. The logos of the military branches are “officially licensed” to Vance & Hines for use in this program.

Today, in the first round of qualifying at the NHRA Auto Club Nationals in Pomona, California, Vance & Hines riders Angelle Sampey, Andrew Hines and Eddie Kraweic rolled out a new paint scheme honoring veterans and those serving in the US Military. The design features a dramatic take on the stars and stripes of the American flag along with the logos of the US Army, Navy, Air Force, Marines and Coast Guard.

The Auto Club Nationals are the finale of the NHRA drag racing season. The results will determine the championship in the Pro Stock Motorcycle class for 2021.

Harley-Davidson XL Sportster 1957 & the OHV Engine

By General Posts

The XL commonly known as the Sportster.

The original XL Sportster used a lot of parts from the previous K Model, but the real revelation was its new OHV engine. Harley-Davidson was aware of the interest of buyers in customizing.

While the humble XL Sportster had made an impact of sorts upon its initial release in 1957, it was the continual evolution of this lighter-weight V-twin engine that cemented it as a staple in the Harley-Davidson range.

It has truly helped instill the Harley-Davidson name in motorcycle history.

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Vance & Hines Launches NHRA Race Team

By General Posts

Vance & Hines Launches NHRA Motorcycle Race Team – Three-Time Champion Angelle Sampey to Campaign New Four-Valve Suzuki-Powered Bike

Vance & Hines Signs on Mission Foods as Partner for NHRA Pro Stock Team

February 8, 2021 – Santa Fe Springs CA – Vance & Hines announced today that the NHRA’s winningest female, Angelle Sampey, will ride the company’s new four-valve Suzuki-powered race bike in the 2021 NHRA Camping World series. The team’s quest for the championship in 2021 is a partnership between Vance & Hines and global food producer Mission Foods.

A three-time NHRA Pro Stock Motorcycle (PSM) champion, Sampey’s 43 NHRA Pro Stock Motorcycle wins make her the NHRA’s top female athlete. She has the fourth most wins in NHRA PSM history. In 2019 and 2020 Sampey was a member of Vance & Hines’ Harley-Davidson-sponsored team.

Sampey will be among the first to ride the recently announced Vance & Hines four-valve Suzuki-powered machine. The new engine features a modernized top-end which provides increased valve lift and reduced mass in the valve train. The 1850cc motor delivers nearly 400 horsepower and will be paired with a custom chassis developed using data from thousands of runs in NHRA competition.

“I’m so excited to be part of the Vance & Hines team again this year,” said Sampey. “This is a first-class company that gives me the best bikes I’ve ever ridden. I’m feeling really good about what we can accomplish together this year. “

“We’re happy to be working with Angelle once again,” said Vance & Hines President & CEO, Mike Kennedy. “Vance & Hines is in a wonderful position right now. We’ve got one of the top riders in the sport aboard our outstanding new equipment and we have Mission Foods as our new Team Partner. I couldn’t have hoped for anything better as we go into the 2021 season.”

Multi-billion-dollar company Mission Foods, the world’s largest manufacturer of best-selling tortillas and wraps, joins the effort as a sponsor of the new team. The food giant shows its passion for motorsports with sponsorships in IndyCar, AFT and GT3 racing and now enjoys relationships with both Arrow McLaren SP and Vance & Hines.

“Terry Vance and I have talked about putting together a race team, and I was overjoyed to get his invitation to work with Angelle and the Vance & Hines crew,” said Juan Gonzalez, President and Chief Executive Officer of Mission Foods. “NHRA has a great tradition and loyal fan base, we can’t wait to see our brand and products at this year’s NHRA races.”

The team will feature the brilliant yellow and red Mission Foods logo on the race bikes, rider, crew and the team transporter at all scheduled Pro Stock Motorcycle events for the 2021 season. The NHRA Pro Stock Motorcycle season starts in mid-March at the Gator Nationals in Gainesville FL.

ABOUT MISSION FOODS

MISSION®, owned by GRUMA, S.A.B. de C.V., is the world’s leading brand for tortillas and wraps. MISSION® is also globally renowned for flatbreads, dips, salsas and Mexican food products. With presence in over 112 countries MISSION® products are suited to the lifestyles and the local tastes of each country. With innovation and customer needs in mind, MISSION® focuses on the highest quality, authentic flavors, and providing healthy options that families and friends can enjoy together. For more information, please visit www.missionfoods.com

ABOUT VANCE & HINES

About Vance & Hines: The Vance & Hines brand has always been about enhancing the exhilaration of the motorcycle ride. It started over 40 years ago, when Terry Vance and Byron Hines were two young enthusiasts in the fledgling Southern California motorcycle drag race scene. Terry always wanted to go faster and Byron knew how to make that happen. In short order, their on-track success and innovation drew the attention of other racers, riders and motorcycle manufacturers, which ultimately translated to commercial demand for their products and services. Today, the Company’s mission and activity is the same; make bikes go faster on the racetrack and take those learnings to make impactful products for riders around the world. Since the Company’s inception in 1979, it has run factory race programs in partnership with Suzuki, Yamaha, Ducati and Harley-Davidson in drag racing, road racing and flat track. Vance & Hines is based in Santa Fe Springs CA and has its Racing Development Center is in Brownsville IN. Learn more about the company’s history and products at www.vanceandhines.com.

Harley-Davidson: A Piece Of Americana On Sale

By General Posts

from https://seekingalpha.com

Summary
  1. Harley-Davidson has the power of a strong brand name that resonates well with consumers.
  2. While it’s had its fair share of recent challenges, I’m encouraged by the company’s turnaround efforts being led by its new CEO.
  3. I expect the company to benefit from an increased need for outdoor recreation, and see the shares as undervalued.

During the current COVID-19 environment, technology stocks seem to get all of the glory. However, I believe that by looking beyond the headlines, one can find value in stocks that are positioned to benefit from the current environment. One such stock that I see is Harley-Davidson (HOG), which is a well-recognized, classic American company. In this article, I evaluate what makes this an attractive investment at the current valuation; so let’s get started.

Looking Into Harley-Davidson

There are perhaps few companies that spell Americana more than Harley-Davidson. Its iconic brand is synonymous with motorcycles and is loved by enthusiasts in the U.S. and around the world. Its loyal customer base like the fact that the bikes are highly customizable, therefore making each bike their own personal expression.

What I like about the company is that its brand transcends beyond just the product, and into a feeling. Emotions play a huge role behind consumers’ large discretionary purchases, and this is exemplified by the following quote from the company:’

The current environment, however, has not been kind to Harley. Revenue was down by 47% YoY in the latest quarter due to lower shipments, and the company posted a net loss of -$1.83 per share. This was due to a combination of restructuring charges and the fact that nearly 60% of its global dealer network was closed back in April. In addition, Harley had lingering issues with a bloated cost structure and an inefficient supply chain. These factors led to the company cutting its quarterly dividend to just $0.02 per share.

These challenges have resulted in the shares widely underperforming both the market and that of its competitor Polaris (PII), which makes off-road vehicles, snowmobiles, and the Indian brand motorcycles. As seen below, HOG has returned -39% on a YTD basis, while PII posted just an -11% return.

What I find encouraging, however, is that the board of directors seems to have acknowledged Harley’s missteps with the appointment of the new CEO, Jochen Zeitz, in early May of this year. Jochen came from Puma (OTCPK:PMMAF), where he was credited with that company’s turnaround, and the hope is that he will do the same for Harley. Initial reviews seem to be positive.

The activist investor, Impala Asset Management, which holds a 2.5% stake in Harley, noted in its August report that “for the first time in five to six years, the company is on the right track again,” and that “this is a fundamentally strong company that just lost its way.”

Looking forward, I see the company as delivering on its ‘Rewire’ restructuring efforts. This year, management expects to deliver $250M in cash savings, excluding restructuring charges. In addition, the company has simplified its organizational structure, by merging complementary divisions together. I see this as enabling the company to operate and make decisions more efficiently by reducing bureaucracy.

In addition, the company is refining its product models, which reduces complexity and enables investment into high growth areas, as management noted during the last conference call:

“Our product portfolio and launches have been reset for maximum impact with a fully aligned go-to-market process. We’re streamlining our motorcycle models by approximately 30%, with plans to further refine our product portfolio. This enables us to invest in the products and platforms that matter the most, while better balancing our investment in new high potential segments.”

In the meantime, Harley has a strong $4.23B in liquidity, which is comprised of $3.4B in cash, and $817M in availability on its line of credit. Although the company raised debt during the last quarter, management noted that it is within its financial debt covenants, and the company maintains a BBB investment grade rating from S&P.

The company appears to be making continued progress in its streamlining efforts, as it announced its exit from manufacturing in India while it is reportedly close to a distribution deal with India’s Hero MotoCorp. I see this as a plus, as it reduces Harley’s manufacturing overhead, which can be especially burdensome during the economic recession.

Looking forward, I’m encouraged by the fact that more than 90% of its global dealer network was open at the end of June. I see Harley as benefiting from an increased need for outdoor recreation due to social distancing measures.

Valuation

Turning to estimates, it appears that analysts are expecting a strong rebound in the EPS in the next two years, with a consensus Buy rating (score of 3.8 out of 5) and an average price target of $31.92.

Based on the 2021 earnings estimate, the forward P/E of the stock is 9.24, which is well below the stock’s normal P/E of 15.8. While the stock may not deserve to trade at its normal P/E based on a forward estimate, I do see upside potential to at least bridge some of the gaps.

Investor Takeaway

Harley-Davidson has the power of a strong brand name that resonates well with consumers. While it’s had its fair share of recent challenges, I’m encouraged by the company’s turnaround efforts being led by its new CEO. So far, it appears that the company is making good progress, and revenue should pick back up as the vast majority of its dealer network has re-opened for business. In addition, I see the increased need for outdoor recreational activities as being a strong tailwind for the company. Based on forward P/E estimates, the stock appears to be undervalued. For this, and the reasons stated above, I have a favorable view of the shares and see upside potential.

 

Harley-Davidson Rallies on BMO Upgrade, Expected Turnaround

By General Posts

by Christiana Sciaudone from https://www.investing.com

Harley-Davidson (NYSE:HOG) shares rose 5% after an upgrade by BMO Capital.

HOG was raised to outperform from market perform by analyst Gerrick Johnson, who also boosted his price target to $33 from $23, MarketWatch reported. The average price target is $26.75, while the highest is $34, according to data compiled by Investing.com. The stock was trading around $27.28 on Tuesday.

Johnson is more positive on the motorcycle maker thanks to management changes and the “high level of credibility” that Chief Executive Officer Jochen Zeitz has brought to the company.

While retail sales may not recover quickly, key metrics like used bike prices and dealer inventory levels should improve, showing proof of a turnaround, MarketWatch quoted Johnson as saying.

Last week, Harley-Davidson said it would cut 700 positions across global operations, with about 500 expected to exit in 2020. The company said it is overhauling its global operating model to become a “leaner, more nimble” organization.

HOG has seven buy ratings, 10 holds and one sell, according to data compiled by Investing.com.

Harley-Davidson’s stock surges after BMO Capital upgrades, raises price target to highest in the Street

by Tomi Kilgore from https://www.marketwatch.com

Shares of Harley-Davidson Inc. HOG, +5.55% hiked up 3.4% in premarket trading Tuesday, after BMO Capital’s Gerrick Johnson became the most bullish analyst covering the motorcycle maker following an upgrade and price target boost. Johnson raised his rating to outperform from market perform and lifted his stock price target to $33, which is 27% above Monday’s closing price of $25.92, from $23. His target is now the highest of the 19 analysts surveyed by FactSet. Johnson said he’s more positive on the company after recent management changes, as new Chief Executive Jochen Zeitz has brought in “a high level of credibility” that investors have embraced. “As strategic changes are implemented over the next several quarters retail sales may struggle, but other key metrics, such as used bike prices and dealer inventory levels, should improve, providing ‘evidence’ the turnaround is taking hold,” Johnson wrote in a note to clients. The stock has run up 34.0% over the past three months through Monday, while the S&P 500 SPX, +1.34% has gained 10.9%.

Harley-Davidson To Drop From S&P 500 As Coronavirus Batters Struggling Motorcycle Maker

By General Posts

by Bill Roberson from https://www.forbes.com/

Iconic American motorcycle maker Harley-Davidson [HOG] continues to struggle. The company will move off the S&P 500 in the next week and will land on Standard and Poor’s MidCap 400 list of stocks instead, according to the Milwaukee Journal Sentinel. Clothier Nordstrom Inc. and Alliance Data Systems Corp. will also fall off the S&P 500.

With a two-month work stoppage (since resumed) due to the pandemic coupled with an expected deep dive in sales due to the general halt in economic activity, the near future could be a rough ride. The most recent report on sales from the company show the numbers were down close to 18% year over year as of late April.

The S&P 500 delisting, set for June 22, comes while Harley-Davidson continues to navigate rough waters, including a personnel shuffle that included the CEO and a stock price that has hung in the $25 range during the pandemic but was as high as $73 in 2014 and over $40 per share in the last year. In the depths of virus-fueled market turmoil in April of this year, the share price dipped to nearly $15 but has since rebounded, almost reaching $30 just about a week ago. The drop from the index could hurt the stock price since many investors include companies in the S&P 500 as part of their portfolios.

Before the coronavirus and COVID-19 outbreak, the Milwaukee,Wisconsin-based maker of heavyweight cruisers – and a fully electric model – had been on a sales and stock price slide for several years as the company searched for new buyers. Their core – and highly loyal – customer base has slowly eroded due to age and competition, notably from a resurgent Indian, which was once Harley’s main sales and racing competitor before shuttering post-WWII. The brand was recently revived by outdoor recreation equipment Polaris and has targeted Harley’s market while also attracting new riders with their Scout and FTR models.

Under the tenure of now-departed CEO Mark Levatich, Harley embarked on a risky tangent into the world of electric vehicles and debuted the all-electric LiveWire motorcycle two years ago. While the bike has received favorable reviews, a price tag near $30,000 has been a tough sell while pioneers in the electric motorcycle space like Zero sell models with similar performance for nearly a third less. Before Levatich left the Motor Company, as Harley is also known, the CEO said more electric models, including bicycles, were on the way. New CEO Jochen Zeitz, a longtime board member known as a turnaround specialist, hasn’t yet laid out the specifics for Harley’s future, saying he plans to “rewire” the company with a 5-year plan for growth.

Part of Harley’s current conundrum is a perfect storm of a waning traditional customer base, expensive motorcycles, and young people who have high debt, myriad transportation options and little brand loyalty. Harley-Davidson has been working to build their international markets over the years and growth there has been a strong point along with their finance arm, but slumping overall sales have driven the company’s market cap to under $4 billion, or nearly half of what the S&P 500 regards as a minimum to make the list.

Tyler Technologies Inc., Bio-Rad Laboratories Inc. and Teledyne Technologies Inc. will all join the index, according to the Milwaukee Journal Sentinel.

Harley-Davidson shifts strategy, to focus on core markets

By General Posts

from https://www.livemint.com

  • The company’s shares climbed after the motorcycle maker’s new acting chief executive officer laid out plans to cut costs
  • The stock had plunged 49% this year through Monday’s close

Harley-Davidson Inc. shares climbed after the struggling motorcycle maker’s new acting chief executive officer laid out plans to cut costs and complexity and focus on the company’s strengths.

The stock rose as much as 17% after the unveiling of a strategy dubbed “The Rewire,” which Morgan Stanley analyst Adam Jonas said could make Harley one of few manufacturers to grow profits in the coming years.

“It is clear to us that HOG will be less adventurous in terms of trying its hand at segments and markets where the brand faces extremely low chances of success with high up-front costs and high risks of brand atrophy that could threaten the company’s long-term survival,” Jonas, who rates the stock the equivalent of a buy, wrote in a report Tuesday.

Jochen Zeitz, a board member and former CEO of sporting-goods maker Puma SE, took over as acting CEO at the end of February. He’s dialing back his predecessor’s turnaround plan to focus on expanding U.S. ridership, iconic profitable bikes such as the Adventure Touring and Streetfighter models, and electric motorcycles. Those goals echo the demands of an activist investor, Impala Asset Management, that reached an agreement calling for Harley to add an independent director to its board later this year.

‘Achievable Plans’

Harley “has become accustomed to over-committing and under-delivering; we need to set achievable plans and realistic goals,” Zeitz said during the earnings call. “It is clear that our strategy needs to be refocused to better align with our capacity and capabilities and also updated given our new reality.”

Harley shares were up about 12% as of 11:53 a.m. in New York; the stock had plunged 49% this year through Monday’s close.

Zeitz was mum on the subject of a permanent CEO search, batting away analyst questions by saying he’s focused on steering the iconic motorcycle maker through the crisis.

The fallout from the coronavirus was swift: U.S. sales had been up 6.6% before the pandemic took hold in mid-March, but the drop during the first three months ended up being Harley’s biggest first-quarter fall since 2010. After that 16% plunge in retail sales, Harley is in all likelihood headed for its sixth straight annual decline.

Slashing Costs

Zeitz resisted giving a new financial forecast, saying it’s too early to see the full scope of the virus’s impact. But he’s slashing costs and borrowing money to ensure Harley can weather the storm.

The manufacturer said it will save $250 million this year by freezing hiring, reducing salaries, trimming capital expenditures and retiming product launches. It’s also halting share repurchases.

Harley announced it’s in talks with major U.S. banks to secure $1.3 billion in funding and expects to tap capital markets for more in the coming weeks after sales of its motorcycles declined in every market worldwide, including a 13th consecutive quarterly drop in the U.S.

John Olin, Harley’s chief financial officer, said he’s tightening underwriting standards and increasing loan-loss provisions at the company’s lending arm. He stepped up provisions by $36 million and wrote off $8.9 million in credit losses in the quarter. Harley has been granting payment deferrals for some customers.

With Harley-Davidson Production, Sales Frozen, Argus Downshifts On Stock

By General Posts

by Priya Nigam , Benzinga Staff Writer from https://www.benzinga.com

Although shares of Harley-Davidson Inc HOG 11.31% have significantly underperformed the S&P 500, the company has suspended production at most of its U.S. manufacturing facilities and shut its retail stores due to the coronavirus pandemic, according to Argus.

The Harley-Davidson Analyst David Coleman downgraded Harley-Davidson from Buy to Hold.

The Harley-Davidson Thesis

While Harley-Davidson’s stock has lost around 59% over the past three months versus a 24% decline for the S&P 500, recent developments have been particularly disappointing, Coleman said in the Monday downgrade note. (See his track record here.)

The motorcycle manufacturer has withdrawn its 2020 guidance.

Argus lowered its adjusted earnings estimates for 2020 and 2021 from $3.52 per share to $3.07 per share and from $3.68 per share to $3.41 per share, respectively.

Harley-Davidson had witnessed a marginal improvement in sales in the fourth quarter, raising expectations of its strategic growth plan leading to a turnaround by the end of 2020, Coleman said. The company instead stopped production and closed its retail stores.

Although Harley-Davidson’s shares are trading near the bottom of their 52-week range, they are not attractively priced given the company’s substantial challenges, including the loss of production and sales due to the coronavirus, the analyst said.

HOG Price Action

Harley-Davidson shares were trading 5.47% higher at $15.82 at the time of publication Monday.