When last I looked at Harley-Davidson (NYSE: HOG) in 2007 the stock was trading a lot higher. I argued at the time that there was value in this quality company and investors should take a look. Others liked the company, but wisely said there was plenty of time to wait because profits would be coming down with the slowing economy.

Some commented that HOG was over-priced in the high $40's even though it had come down from it's 52-week high of $66 per share. It was trading at a sizable 26% discount when I posted Chasing Value: Harley-Davidson (HOG) profits down 15% -- beats Wall St. last November at $48.95. Having closed yesterday at $39.39 it is now down over 40%.

Many of the brightest minds in my circles feel the economy will not pick up significantly for another 18 months and that we will have fits and starts in between then and now. There does not appear to be any urgency to acquiring stocks that will be dependent on economic recovery to turn for the better. However, HOG might be one to dollar cost average into over time if you believe it will not turn into General Motors or fade like Levi Strauss.

It is currently paying over a 3% dividend yield and unlike other companies Harley has been raising it recently, not lowering it. The P/E ratio of 10 which is projected to hold going forward, the ROE over 36 which is substantial and the ROIC over 20 are more than respectable.

I have not heard even a whisper doubting its superior quality of management and they seem to have put any labor issues to rest as well. I thought there was value in HOG a few months ago so I have to believe the story is even better today with international markets growing and all types of motorcycles being considered for those trying to stretch their gas dollars.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of HOG.