Harley-Davidson (HOG) shot up recently on takeover rumors, but in my opinion, they're just that -- rumors.
Who needs a high-end motorcycle during the Great Recession? Or its aftermath? And who needs the stock of a company with more than $4 billion in long-term debt, huge unpaid pension obligations, lousy cash flow to service its debt, and that is still in search of a partner to take customer loans off its hands.
Currently trading around $28, this stock is grossly overvalued. Even in a normal economy, its sales could not support its debt load. Stay away. This motorcycle king is a $5 stock waiting to happen.
At the time of this writing, the author did not own shares of HOG.
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