Harley Davidson: Enticing on Repurchase News

What a great use of cash for Harley (HOG). They announced a 20 million share repurchase plan Monday morning. With $1.7 billion in cash on the books, Harley can easily complete the repurchase without any additional debt. Since they already increased the dividend 20% in September, shareholders are getting rewarded at both ends.

I have wrote about my desire to own Harley shares in the past, the only thing holding me back was the price of shares. Currently trading at $44 and yielding 2.5%, Harley is becoming very enticing with this news....

Just wait a little longer, we may get this around $40.

Comments

[Pj568:]

Can't agree with you this time. Don't know where the 1.7B in cash comes from unless you count securitization receivables and/or the 400M in new debt issued in December. Is the securitization pipeline still open? If not, they may have to internally fund receivables. Might also need some cash to operate. Increasing leverage in uncertain environments seems questionable.

2007 Dec 18 08:07 AM

[todd su:]

finance.google.com/fin...

as of 9/30 they had $1.7 billion of cash and short term investments

2007 Dec 20 07:44 AM

[kowalski:]

Cash and marketable securities totaled $456.7 million as of September 30, 2007.

investor.harley-davids...

2008 Jan 04 06:08 PM