Shorts Eye Harley-Davidson for Discretionary Spending Revival

Harley-Davidson Inc. (HOG) the iconic motorcycle maker reports quarter two earnings on Thursday and many will be looking for signs of a return to consumer discretionary spending. In the last month the short base (as measured by the percent of shares outstanding on loan) in HOG has increased 1.57% to 14.12%. HOG has been a popular short position since the early months of the recession.

Other “big-ticket” consumer discretionary stocks like the boat builder Brunswick Corp (BC), the firearm manufacturer Smith & Wesson Holding (SWHC) and the golf club manufacturer Callaway Golf Company (ELY) have higher than average short base. BC is at 7.63%, SWHC is at 10.61% and ELY is at 11.70%.

HOG has a high utilization (which measures the supply and demand in the securities lending market) ranked 11th in the S&P500 at 56.44%. This is off from its 52 week high of 70.09% which was in March.

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Comments

[BioBoy:]

I fail to see how Smith & Wesson is discretionary. Only someone who doesn't own guns could have put it into that category.

Jul 16 10:34 PM

[Trader85:]

Because guns are not requirement or staple like, I don't know, food. People will spend money on necessities then use their discretion to but things mentioned in this article like guns motorcycles, boats, and golf clubs. Only someone who is a gun-nut would make your comment.


On Jul 16 10:34 PM BioBoy wrote:

> I fail to see how Smith & Wesson is discretionary. Only someone
> who doesn't own guns could have put it into that category.

Jul 17 09:31 AM