In early March I posed the question “is $3.25 gas helping Harley Davidson?” Now that the price is up to $3.50 and higher in most areas, there is more evidence unfolding that it may be true..
In the first post it was an Illinois dealership reporting increases in sales and now we have both a California dealership and a Florida insurance agency that insurs motorcycles in 21 states reporting the same thing.
The fact that the reports are coming in from both the sellers of the bikes and insurers in such regionally diverse areas has to assure investors that this is not a specific trend to a specific dealership or area but more of a widespread one.
Some of the comments I got after the first post were of the “a Harley gets the same mileage as my Prism” well, ring hollow. The simple reason is that I do not know too many drivers of Prisms, Escorts or other gas saver vehicles that own and drive a Harley. I do know plenty of F150, Suburban and Silverado drivers who do. In that case, you are doubling or even tripling your gas mileage and savings by making the switch.
Harley Davidson (HOG) recently lowered full year guidance to a level that, as gas prices continue their climb. I think are going to prove way to conservative as the year unfolds.
Disclosure (“none” means no position):Long HOG
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