Something tells me there is market manipulation going on here.
Something tells me there is market manipulation going on here.
Harley-Davidson (HOG), perhaps the most iconic form of discretionary spending, came out with a howler set of Q4 numbers. Revenue down 9% and operating losses in the last period. FY operating income fell 30% on revenues that finished 1% up. Domestic sales for the 2018 year fell 10% while international sales were flat. Worse was guidance pointed to unit sales falling between 217,000 & 222,000 units down from 228,000 in the fiscal year just past. This new range of unit targets would mean a decline for five consecutive years. If this pattern continues into 2020, luxury competitor BMW, which targets 200,000 units, will likely even up the tally, despite being less than half HOG was in FY2012.
Operating margin guidance for the motorcycle segment is forecast at 8-9% in 2019 down from 12% in 2017.
In June 2018, CM wrote, ““Harley-Davidson (HOG) is the classic case of a divine franchise. While still the world’s largest maker of cruiser motorcycles, it is being swamped by new competition. HOG’s EBIT performance has slid for the last 4 years and is even below the level of 2012…Sadly for HOG, 1Q 2018 has revealed even worse numbers. Global unit sales were 7.2% down on the previous year and 12% down at home. Japan and Australia were soft. Looking at the strategy it looks like throwing spaghetti at a wall and hoping it sticks.”
Harley may have a grand master plan to incubate 2,000,000 new riders and launch 100 new bikes out to 2027, but all the while they remain stuck in a design studio, the competition, including the Japanese, keep stealing sales away from the Milwaukee icon.
The strategy looks completely unrealistic because growing 200,000 new bikers a year for a decade in the domestic market would mean that based on 2019 global unit sales projections, 92% of customers would need to be brand new, not repeat or existing. However the plan is to grow in the US where it had 138,000 sales in 2018 that would mean new customers would need to be 145% of all current sales in the US. No auto maker on the planet has ever had such pie in the sky assumptions for cultivating new customers, much less at that pace for 10 straight years. How can the board of HOG honestly think this is even remotely achievable? Sadly the company has been too eager conducting buybacks to flatter EPS. Net income for HOG was +1.8% for FY2018, diluted EPS was +5.6%. Time to stop playing games and properly delivering for shareholders.
US Senator Ted Cruz gave a pointed speech around the hypocrisy displayed by the Democrats over the border wall, something they all passed in 2013 to build 350 miles worth when in power. Cruz unmasks the real modus operandi from 5 minutes into his speech.
Yes many can’t stand Ted Cruz but if a bill was put forward just to pay the Coast Guard during the shutdown the Dems all voted against it even though it was not contingent on the discussions over the wall. So insane is their hatred.
Oh the irony. Poor young Greta Thunberg was invited to speak at Davos. She may have wanted her audience to panic but it might have been better for her to focus outside her window on landing so she could see the utter hypocrisy of those she was addressing and their chosen mode of transport – 1,500 private jets.
Still, like the UN COP summit just past, we are supposed to believe that a 16yo has all the answers. Why go to university? What is the value in further education if a kid not even out of high school is smarter than all the adults in the room?
What a farce. The word “panic” says it all. It is hard to know who to believe. Thunburg? Alexandria Ocasio Cortez has only given us 12 years to live. Even The Pentagon wrote a report in 2003 that suggested by 2020 climate change would cause nuclear war, famine and natural disasters costing millions of lives. Not long to go til we get confirmation.
The left has a real dilemma. Apparently scientists in Japan think that “stress” caused by climate change will lead to lower birth rates of boys. If the planet warms, toxic masculinity will decline naturally. Save the planet and the risk having a surge in bro-culture. Maybe that’s why they push so hard to indoctrinate kids at such a young age to prepare for a naturally cooler globe.
While Carlos Ghosn maybe wasting away in a Tokyo detention centre, Nissan is not wasting the talents of Naomi Osaka. At a puffy ecomentalist launch of the new Nissan Leaf EV, one of the board director’s asked the then just crowned US Open winner what car she’d like and without hesitation it was the GT-R. Why? “Because it is fast.” So despite breaking every politically correct rule as goes a green car launch, Nissan got religion and sold out 50 Naomi Osaka edition GT-Rs in a heartbeat. It looks like Naomi run #2 reservations can be made in Feb. Capitalism wins again. Surely the margins on Naomi GT-Rs will outstrip any margins made on Naomi Leafs.
Watch Japanese companies fumble over getting her to star in their commercials. You know what? Best to buy a basket of Naomi Osaka stocks on the TSE. CM wrote a piece on stocks and Japanese idols – there is correlation! Smaller caps tend to benefit more. Valuations largely irrelevant.
As CM wrote it is any wonder a financial institution hasn’t made a Naomi ETF?
Once again the pill testing argument will rear it’s ugly head after 14 Australia Day revelers were hospitalized at two events, the HTID and Electric Gardens concerts. 6 remain in critical condition. At what point will we hand responsibility over to ‘legal’ adults?
If voting age party-goers are caught with ‘illegal’ substances then charge them accordingly. If people don’t like the law then put action behind a proposal to change it. Despite police sniffer dogs, people smuggled in drugs in condoms and ziplock bags presumably hidden in the nether regions. Coffee grounds were used to throw off the scent.
The real question is if one is hospitalized, why should tax payers pick up the tab for their selfish, reckless behaviour? Would it be a deterrent to let them know that any medical treatment (likely expensive) would not be covered by the state? Put measures in place to ensure the bill is paid for out of future income tax or lowered dole payments. Then let these adults work out the risk reward ratio of taking illicit drugs. Instead of having OD survivors tell horrid tales, they might talk of the financial penalties that followed which have made life considerably tougher than going cold turkey.
“If you take illegal pills, don’t say we didn’t warn you. Let’s see how hardcore you really are.” That should be the slogan. Flash up the average cost of an OD treatment on the big screens.