I guess you could say that shareholders of Harley-Davidson (HOG) aren't in hog heaven. The motorcycle magnate announced solid third-quarter earnings results, but it disappointed the Street with its motorcycle sales.

Let's start with the good news. Harley-Davidson reported third-quarter net income of 38 cents per share ($88.8 million) or 40 cents per continuing share, far better than last year's same-quarter earnings of 11 cents per share. What's more, these results topped the consensus estimate of 35 cents per share. The company was even able to overcome poor quarterly sales because of it financial services division and cost-cutting efforts.

You had to love the excitement surrounding Harley-Davidson (HOG) Tuesday. I'm sure shareholders were jumping for joy at the incredible rise experienced by the stock: it closed on Tuesday at a price of $26.83, up well over 13%. Volume supported the conviction of the move.

Back in April, BloggingStocks' Tom Taulli covered the company's first-quarter numbers. He called the stock risky at the time. He was correct to do so because the shares retreated not long after his piece was published, as the following chart clearly shows. Now that the second-quarter stats are here, should investors be interested in the motorcycle maker?

Harley-Davidson (HOG) closed yesterday much higher than where it opened. The stock rose over 10%, finally settling at $31.37. During the intraday session, the shares hit a new 52-week high of $31.66. According to TheFly, RBC Capital increased its price target for the motorcycle company, believing it may eventually hit $36.

You know what? My gut tells me $36 is easy at this point (however, I do have some reservations and warnings, which I'll get to). There was a lot of volume backing the bid on Monday, and as I look through different time periods for the stock in terms of price gain (one-month return, three-month return, etc.), I come to the conclusion that this is one strong equity.

Harley-Davidson has certainly recovered from its 52-week low made back in March of this year. The stock bounced back from $7.99 to a price of $16.55 as of this writing.

Enterprise zone tax credits for Harley Davidson Motor Company (NYSE: HOG) in the amount of $4.5 million have been approved by the Wisconsin Department of Commerce. With the full involvement of Wisconsin state government and the United Steel Workers Union, this tax credit was arranged to confirm Harley Davidson's intent to invest some $300 million in the expansion of engine and transmission manufacturing in the state of Wisconsin. It is expected that this growth could create up to 200 new high paying manufacturing jobs and will assist in the retention of Harley's 4,100 existing employees in the state.

Harley Davidson was considering expanding outside of Wisconsin but left the door open to stay at Harley's home in Menomonee Falls. The company has always sought home-based solutions first. The administration of Governor Jim Doyle claims it was hard work to get Harley to accept the state tax credits but historically that has not been the pattern. All Harley Davidson has ever asked for is a level playing field.

I'll believe that it was hard work for Doyle to give it to them... when Hogs fly!