Deadbeat Stock #1: Harley-Davidson (HOG)


Deadbeat stock #1 -- Harley-Davidson (HOG)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.

Next: Deadbeat Stock #2: Palm (PALM)

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IndexesChangePrice
DJIA-133.0512,757.41
NASDAQ-21.142,906.09
S&P 500-11.651,340.30

Last updated: February 10, 2012: 10:09 AM

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