Channel Checkers Report

By Insider Scoop

July 13, 2009

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136

Courtesy of Channel Checkers

Polaris Steady With Strong Brand Recognition and Available Financing.

Positive

Ticker: PII

Questions We Asked:

1. What is the most popular brand of motorcycles you sell?

2. What is your view on the Victory brand of motorcycle?

3. Do you offer any deals or good financing options for Victory motorcycles? Is financing going away because of the economy?

4. Are you as busy as normal right now? Or is it a good time to buy because business is slow?

Victory was viewed as the most popular brand by 72% of dealers we spoke with. Another 8% thought that Kawasaki was the most popular.
When asked about their view on the Victory brand of motorcycles, there were zero negative responses.
72% of respondents say they are offering good deals on financing. 28% said they are not. 64% of respondents say financing is not going away due to the economy. 36% say it is.
48% say that business is busy as normal. 52% say that now is a good time to buy a motorcycle because business is slow.

Conclusion of Channel Check: Based on the survey, Victory brand motorcycle is the most popular brand motorcycle out at multi-brand dealers with little negative feedback. Business levels look muted with a near even split in those saying business is soft and pricing good and those who claim business levels are normal in June.

Catalyst for stock movement:

PII Reports Earnings on 7/16/09

******

Harley Dealers See Business Declining in May and June

Negative

Ticker: HOG

Questions We Asked:

1. What is the best selling motorcycle model right now?

2. Are they sold out of any models right now?

3. How is business compared to this time last year?

4. Has there been an increase in sales in the past month?

36% of respondents cited some version of the Sportster as the top selling model right now. The 09 FLXH Street Glide was seen as the top seller by 16% and 12% see the Night Train Softtail.
87% of respondents said they were not sold out of any models. 13% cited some models that were out of stock.
52% of respondents say that business is the same as a year ago. 36% say business is worse while 12% say it is better.
57% of respondents said that sales had not increased in the past month. 43% said they had. This mix of responses is a significant deviation from the trend we have seen across many of our covered companies in the past.

Conclusion of Channel Check: Harley dealers continue to see demand focused on their lower end models (from a price point perspective). Inventories appear to be sufficient to match demand. Business appears to be the same or lower according to 88% of respondents. The 57% citing lower sales in the past month should be a concern for investors as it is a sharp deviation in this answer set versus the past few months.