Financial Analyst: Dump HOG Stock Before it’s too Late!
If you’re an owner of Harley-Davidson stock, you probably don’t want to read the rest of this post. Or heck, you might actually want to. According to an analyst at TheStreet, it’s time to dump the stock before things get really bad. But what is his reasoning?
Harley-Davidson hasn’t seen the rebound and growth that the American automakers have seen since we dug ourselves out of the latest recession. Americans have more disposable income, but why aren’t they disposing of that income into the Harley-Davidson coffers?
John Persinos of TheStreet blames a few things, including the litany of less-expensive options from other manufacturers. Additionally, Persinos cites low reliability surveys. Finally, Harleys are just more expensive to build, according to Persinos, because of unionized labor in the United States.
While I do have an MBA, I can say it doesn’t take an MBA to see Persinos’s point. The stock market expects companies to be profitable and to grow. A company that isn’t growing usually sees a decline in the share price as people sell.
So should you follow his advice and dump your stock? While I am an MBA, I am not a financial advisor, so I can’t advise you on that. But what I can tell you is that when people sell, that means other people are buying. While some may dump, others will buy. It might be your chance to get a stock at a discount, if you’re so inclined.
Let us know what you think over in our forums, and please don’t follow my financial advice!