Now... the down side for HOG

the bears say:

1. sales slipped 6% in the Q3 2007 period versus Q3 2006 numbers. That translated into a 15% decline in net profits
2. gross margins are slipping (see above)
3. no significant insider buying (at least according to EDGAR, 3 months+ ago)
4. accounts receivable up 23% and increasing defaults on loans through HD financial (offers loans to customers)
5. inventory up 34%. IMHO, this is the most worrisome number/trend and the bears are focusing on this quite a bit. Moving older stock to make room for 2008 models will usually require price cuts, further eroding margins.
6. North American middle and lower class discretionary income is likely to be impacted by the possible impeding recession, US dollar currency devaluation, burst real estate bubble, and banking crisis (i.e. opposite of the "wealth effect")