Harley Davidson should be one of those companies that delivers solid, steady investment returns. It has the premier brand name in the manufacture and sale of motorcycles, and earns 23% operating margins in an industry where 14% operating margins are the norm. Heck, can you even name its competitors? I could name Yamaha, Kawasaki, and Polaris, and that was it.
Despite these superior operating results, Harley Davidson stock has barely appreciated in price over the past twenty years. It traded at $29 per share in 1999. It trades in the $30s now.
Why aren’t the shareholders of the most dominant motorcycle franchise on the continent getting any richer?
The answer is because Harley … Read the rest of this article!