Investopedia: Harley-Davidson Already Priced For Improvement

It's worth asking how long it's going to take Harley-Davidson (NYSE:HOG) to return to former glories. Nothing has really dented the brand value or product quality of this well-loved brand, but easy credit in the early and mid-2000s spiked demand and sales for these expensive motorcycles. Although a focus on lean manufacturing ought to improve long-term margins and cash flow conversion, investors may be expecting more of this company than the numbers can deliver.

Continue reading here:
http://stocks.investopedia.com/stock-analysis/2012/Harley-Davidson-Already-Priced-For-Improvement--HOG-HMC-PII-BAMXY0803.aspx

Investopedia: Bull Vs. Bear - Major Automakers Face A Tough Future

Question: Are automakers a smart investment right now?

Bear's Response
The auto industry has certainly enjoyed a meaningful recovery from the worst of The Great Recession, when both General Motors and Chrysler declared bankruptcy and Ford (NYSE:F) came under serious stress. It wasn't just an American phenomenon either - even mighty automakers such as Toyota (NYSE:TM), Nissan (OTC:NSANY) and Honda (NYSE:HMC) saw major declines in sales and profitability, and a host of European carmakers saw substantial stress.

While auto sales for the major automakers may be better than its lowest levels, that doesn't mean that major automakers represent great investments today. Not only are these companies facing a challenging demand environment, but production costs are increasing and this industry has a decidedly mediocre history of financial performance.

Please click here for more:
http://stocks.investopedia.com/stock-analysis/2012/Bull-Vs.-Bear-Major-Automakers-Face-A-Tough-Future--F-TM-NSANY-HMC0709.aspx

Investopedia: Harley-Davidson Looking A Little Over-Revved

Nobody knows what the "new normal" for this economy is going to look like. Poor employment and wage growth, and nervous banks are keeping a limit on big-ticket consumer spending, but it seems reasonable to assume that the average consumer's taste for leisure has not vanished for good. The trouble, though, is that some stocks like Harley-Davidson (NYSE:HOG) seem to be pricing in a quicker return to normal than the economy seems capable of delivering. (To learn more about the effect earnings will have on stock prices, check out Earnings: Quality Means Everything.)

A Strong Rebound in the Second Quarter  
Certainly Harley-Davidson showed some signs of life in this latest quarter. Revenue jumped 18% as the company shipped 13% more bikes and realized almost 7% better pricing. This growth was underpinned by better than 7% growth in domestic sales, while international sales and shipments were relatively softer. 


To read more, click below:
Harley-Davidson Looking A Little Over-Revved (HOG, THO, WGO, PII, CCL, RCL, MTN, HMC)

Investopedia: Can China Yuchai Rev Up Your Portfolio?

Sometimes it seems that investing in China is all about finding the "Chinese version" of some successful Western company. Gome is the "Chinese Best Buy (NYSE:BBY)," Lenovo is the "Chinese Dell (Nasdaq:DELL)," Zhongpin (Nasdaq:HOGS) is the "Chinese Smithfield (NYSE:SFD)," etc. 
With that in mind, then, is China Yuchai (NYSE:CYD) the "Chinese version" of Cummins (NYSE:CMI), the successful Indiana-based diesel engine manufacturer? More to the point, as the risks of investing in Chinese stocks become more widely-known, is this a name investors can trust as a play on the ongoing growth of China's industrial and transportation sectors? (For more, see Investing In China.)

A Solid End to the Year 

China Yuchai reported that fourth quarter revenue rose almost 24% to about $607 million, largely on the back of a nearly 14% increase in unit sales. While pricing was strong in general, the company also benefited from an going migration towards heavy-duty engines making up a larger portion of the sales mix.

To read the full piece, please go here:
http://stocks.investopedia.com/stock-analysis/2011/Can-China-Yuchai-Rev-Up-Your-Portfolio--CYD-CMI-CAT-F-GM-HMC0401.aspx

Is Cheap Chinese Labor Over?

Bookshelves groan under the weight of materials written about how China has changed the global economy. Skeptics blame China for a "hollowing out" of American industry that has seen companies choose to relocate manufacturing China to take advantage of cheaper labor. Others point to the fact that lower labor costs in China have allowed Americans to prosper from cheaper Chinese imports and essentially live better by getting more for their money. 

Regardless of your view of China's role in our economy, the reality is that the situation is always changing. With wages and standards on the rise in China, can American companies still exploit the leverage present in lower wage costs? (For more, see 


You can read the full column here: 
http://stocks.investopedia.com/stock-analysis/2010/Is-Cheap-Chinese-Labor-Over-AAPL-DELL-WMT-ABB-SIE-CAT-PG0625.aspx

Keep An Eye On Biobutanol

This article actually was originally prompted by something I read in my weekly reading of newspapers, magazines, and journals. I just wish I could remember which one it was... 

Few topics seem to garner as much interest these days as the idea of moving past the gasoline-based transportation economy and onto something better. Several candidates for "better" have risen and fallen in recent years - fuel cells and ethanol seem to be yesterday's news - and advanced batteries are the belle of the "better" ball right now.

Investors should keep an eye out for biobutanol. While there are several significant challenges to surmount before biobutanol could be commonplace, this is an alternative fuel that may actually give us a real alternative when it comes to fueling our cars. That, in turn, could deliver real rewards for companies like DuPont (NYSE:DD), BP (NYSE:BP) and Total (NYSE:TOT) down the line.

http://stocks.investopedia.com/stock-analysis/2010/Keep-An-Eye-On-Biobutanol-DD-BP-TOT-F-HMC-CZZ-ADM0518.aspx