Today’s report on Harley-Davidson from the Motley Fool explains why the company’s stock price fell 18% during Tuesday’s trading. Wall Street forecasters predicted that new CEO Jochen Zeitz’s turnaround plan, dubbed “The Hardwire” would result in an adjusted profit of $0.21 per share for the company’s third-quarter results. Didn’t happen. Instead, the company posted a loss of $0.44 per share.
I suggested in May of 2020 that the best course for Harley-Davidson is to leave Wall Street and return the company to private ownership. Today’s news makes it a lot easier for a consortium of investors to make that happen. Could that be the secret goal of Harley Davidson’s management? I sure hope so.
In private hands Harley-Davidson could focus on being a great motorcycle company instead of trying to be a mediocre Wall Street company. Harley-Davidson is a very, very valuable motorcycle company even if its sales remain flat or decline. To Wall Street, that is blasphemy, but to riders who understands Harley-Davidson’s mystique and importance, it can be a tenable position. These would be investors proud to own and profitably operate the most amazing motorcycle company in the world.