When someone mentions overnight delivery you think of FedEx; photocopying -- Xerox; search -- Google; and motorcycles -- Harley Davidson. I'm not a motorcycle guy, yet there's something mythical about the idea of hopping on a big Harley and hitting the open road. Maybe it's the sense of freedom, or simply a desire to be like Peter Fonda in Easy Rider, I don't know, but there's definitely something very American associated with owning and riding a HOG.
Yet despite its incredible brand strength and customer loyalty, the company is struggling to grow sales and earnings. Just last month management was forced to lower its earnings guidance due to sluggish U.S. demand. The company also slashed production for the rest of the year and announced that it would not predict its financials for fiscal year 2009. In response to the disappointing news investors slaughtered HOG, and the stock is now down 28% over the past year.
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