Imagine a manufacturing and wholesale distribution company whose fortunes are dependent on higher-income customers with discretionary income, readily available access to credit and an optimistic view to the future. Now add a financial services component that extends credit to the company's dealers and customers.

Harley-Davidson (NYSE: HOG) is just such a company.

Harley is a classic case of a company that prospered immensely from the combination of an aging baby boomer population and a massive increase in the appearance of wealth resulting from unprecedented increases in home values and a stock market that exploded to new heights during the last 10 years.

Now that both of these bubbles have burst, HOG is feeling the impact of a recalcitrant consumer and mounting problems with the loan portfolio of its financial arm, Harley-Davidson Financial Services (HDFS).

As an American icon, Harley Davidson's line of heavyweight touring, custom and performance motorcycles is the most visible (and audible) symbol of American self-indulgence.

Continue reading Will Harley-Davidson (HOG) ride again?

Will Harley-Davidson (HOG) ride again? originally appeared on BloggingStocks on Wed, 21 Jan 2009 12:31:00 EST. Please see our terms for use of feeds.