Harley Davidson: Stock Going Hog Wild or A Crank Case?

Thursday, 14 Dec 2006 | 9:53 AM ET

It's been a rough week for shares of Harley Davidson - the stock is down nearly 4%. But over the last 6 months--the shares have been riding high on the hog, so to speak--up close to 40%. On "Squawk on the Street," CNBC’s Melissa Lee attempted to determine if Harley Davidson was at a crossroads.

Citigroup Analyst Gregory Badishkanian said that the stock is up since Harley Davidson introduced new products in July and investors got very enthusiastic- 3Q U.S. sales were up 7% which is nice sales growth.

High on the HOG?
Shares of Harley Davidson have been riding high, but are investors getting too HOG wild? Gregory Badishkanian, Citigroup Analyst, shares his view with CNBC's Melissa Lee.

October and November, however was another story. There was moderation; low single digit growth.

Badishkanian does not think it’s a good time to buy – he said wait for the company to report 4th quarter earnings.

Mark Haines remarked that historically Harley has had a back log of orders – “You’d have to wait quite while to get your bike,” he said. Badishkanian remarked, “Just within the past few years, Harley has increased supply to meet demand. Now a customer can go into a store and take a bike away.” But, as Mark Haines observed, that also makes them more vulnerable to cyclicality (business cycles--no pun intended).

Analyst disclosure: HOG is an investment banking client and a non-investment banking client of Citigroup.

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