Posts Tagged ‘ATVs’

Join MIC Campaign To Stop the Ban

February 9, 2010

MIC Launches Communications Effort at Dealer Expo

The Motorcycle Industry Council (MIC) again this year is offering a variety of  communication tools at the Dealer Expo so that attendees and exhibitors can urge Washington to drop the existing ban on the sale of youth ATVs and motorcycles.

“There is tremendous momentum for Congress to amend the Consumer Product Safety Improvement Act’s (CPSIA) lead content provisions to exclude youth vehicles,” said Paul Vitrano, MIC general counsel. “We need our voices to be heard now.”

The MIC’s multi-media communication offerings at Indy and on www.stopthebannow.com include:

  • Text. Use your cell phone to send the text message “StoptheBan” or “STB” to 30101. An SMS interface on http://www.stopthebannow.com allows the public to send StoptheBan text messages directly from the website.
  • Letter. You can add your signature to letters urging Congress to amend the CPSIA to exclude youth vehicles. Last year’s campaign generated over 5,000 hand-signed letters at the show.
  • E-mail. Computers are available in the MIC Business Center (Booth # 4508) so you can send e-mails to Washington calling for the ban on youth equipment to be dropped. Last year, more 1 million electronic messages were sent to Congress.
  • Call. A computer station in the MIC Business Center will identify key members of Congress, and a Skype account will enable you to call your congressmen directly from the computer.
  • Video. You can “Send a Video Message to Congress.”  A camera and filming booth will be set up in the MIC Business Center so that Stop the Ban messages can be created, posted online, and forwarded to Congress.

Vitrano said there are three key reasons why youth ATVs and motorcycles should be excluded from the CPSIA’s lead content provisions: (1) the lead content poses no risk to kids; (2) the key to keeping youth safe is having them ride the right size vehicle; and (3) the lead ban hurts the economy.

“MIC calls on Congress to draft legislation as soon as possible to either grant a categorical exemption for these products, as would be provided by H.R. 1587, a pending bill with 56 bi-partisan co-sponsors, or to give the CPSC the flexibility to do so,” Vitrano said.

Visit www.stopthebannow.com for background information, FAQs, and public outreach tools for the Stop The Ban campaign.  JD

Contact me with story ideas or news tips
at 952/893-6876 or joe@powersportsupdate.com.

Investors In Powersports Stocks Enjoyed 2009

December 31, 2009

Harley, Polaris, Arctic Cat Post Hefty Gains

Investors who placed bets on the powersports industry last year at this time— and held steady for the ride through the year— have reason to celebrate tonight. I checked the performance of three of the leading powersports stocks this year—Harley-Davidson (HOG), Polaris Industries (PII), and Arctic Cat (ACAT) and each of them outperformed the Dow Jones Industrial Average (DJIA) by a wide margin in two cases and matching it in the last one.

It wasn’t a smooth ride, however, and it took a firm hand to stay in the game through the sharp downtown in the first quarter.  For example, while the Dow lost 13% in value during the first two months of 2008, Polaris lost 25%, Harley  dropped 21%, and Arctic Cat slipped 20%.

For the year, though, the Dow climbed 1,772 points from 8,776 on Dec. 31, 2008, to 10,548 at the close yesterday. That’s a 20% jump. During the last 52 weeks, the Dow ranged from a low of 6,440 to a high of 10,605.

Polaris, the Minneapolis-based manufacturer of ATVs, UTVs, motorcycles, snowmobiles and electric vehicles, posted the biggest dollar gain during the last year of the three companies I looked at. Polaris common moved from $28.65 on Dec. 31, 2008, to $43 at the close yesterday. That’s a gain of $14.35, or 50.1% over the year. Its 52-week performance ranged from $14.53 to a high of $49.74.

If you would have purchased 1,000 shares of Polaris common stock one year ago, your investment would have gained $28,650, not considering quarterly dividends nor any sales commissions. Now, wouldn’t that provide a nice party tonight.

Securities analysts who follow the Polaris stock like the management team lead by new CEO Scott Wine, and Bennett Morgan, president and COO, and a long-time Polaris executive. When talking about Polaris, investors also talk about its ability to quickly bring new products to market, its efficient operations that emphasize cost controls, and its growing ability to control inventories at the dealer level through its Max Velocity Program (MVP) which allows dealers increased ordering flexibility.

Harley-Davidson gained $8.53, or 50.3%, climbing from $16.97 at the close on Dec. 31, 2008, to $25.50 at yesterday’s close. Harley investors had perhaps the toughest time waiting calmly for gains on the HOG stock as the company reworked its operations in several major steps.

One move with immediate and long-term implications was  the new contract it won with workers at its York, PA, plant that  permits the company to cut loose nearly half the 2,000 employee York work force and move ahead with major physical improvements in the plant. The plant modernization will be aided by a stimulus package from the state of Pennsylvania. Harley said at one point that it was considering relocating the operation to Kentucky.

In its second big reorganizational move, Harley dumped its MVAgusta operation and it closed its Buell sport bike business.

During the 2009 52-week period, Harley stock ranged from a low of $7.99 to a high of $30.00

Arctic Cat common stock is played at a much lower level than either Polaris or Harley, but it, too, posted a nice gain of 20% during the period Dec. 31,  2008, to Dec. 30, 2009. It climbed $4.16 for the year, moving from $4.79 in December 2008 to $8.95 yesterday.

Cat had a tough year, partly because of its dependence on snowmobiles and partly because of the loss of Gander Mountain, its high visibility outdoors retail chain based in Minneapolis. Gander had been carrying Arctic’s ATV and SXS lineup in its major stores. Arctic stock ranged from a low of $2.40 to a high of $9.27 during the last 52 weeks.

Okay, so now you’re probably waiting for my forecast on the performance of these stocks in 2010. Sorry, I don’t have one. After reporting on publicly traded stock for more than 40 years, I’ve come up with one basic rule: Stock market performance doesn’t always reflect corporate performance, especially when you try to tie it to a specific quarter or other reporting period. I don’t have a clue how these three stocks, or the Dow, for that matter, might perform over the next four quarters. And if I did know,  I wouldn’t give that information away; I would charge a lot of money for it. Isn’t that what investment advisors do?

Happy New Year and good luck with your investment decisions. I hope your powersports stocks perform well for you in 2010 as these three stocks did in 2009. JD

Contact me with news tips and story ideas at
976/893-6876 or joe@powersportsupdate.com

Second Co-Founder Departs Baja Motorsports

May 16, 2009

Ryan Daugherty Resigns From Leading Chinese Distributor

Handled Sales & Marketing, Product Development, Sourcing

Ryan Daugherty, one of the co-founders of Baja Motorsports, has resigned the company and is looking for other opportunities, he told me. Daugherty, Rich Godfrey and Jennifer Andrew launched Baja in 2004 and built it into a leading distributor of Chinese powersports products—including kid’s ATVs and dirt bikes— in the U.S. and Canada. Last year, Baja sold an estimated $70 million worth of products at wholesale. Its leading customers include Pep Boys, Fleet Farm and Canadian Tire.

Ryan Daugherty

Ryan Daugherty

“It’s just time for a change,” Daugherty told me. “I’ve enjoyed helping build Baja to its current strong position in the market, but I’m going to step back now for a bit and look at the powersports industry. It’s changing and I know there will be other opportunities down the road.”

Daugherty says he doesn’t have any deadline in mind for taking on a new position.

I tried to get in touch with Rich Godfrey a couple of times to see what changes he’s likely to make now that his partner is gone, but I haven’t hear from him yet. I’ll let you know what he has to say when we hook up.

Daugherty, 43, has been vice president for sales and marketing at Baja. His duties include developing new products, sourcing those products in China and marketing the products to dealers and consumers. One of his big efforts has been developing training and service materials for technicians and customers.

He also wrote Baja’s ATV Action Plan recently presented to the CPSC (Consumer Product Safety Commission); Baja is one of only two importers of Chinese products that has had its Action Plan approve by the CPSC. An approved Action Plan is required before a foreign manufacturer can sell ATVs in the U.S. under provisions contained in the Consumer Product Safety Improvement Act (CPSIA) of 2008.

With Daugherty’s departure, Godfrey remains the sole co-founder of Baja still with the company. Andrew sold her shares in 2007 and left the company when Techtronics Industries, Inc., (TTI) acquired a majority share of Baja. Daugherty sold his equity position to TTI almost two years ago.

TTI is a $3.2 billion manufacturer who’s stock is traded on the Hong Kong Exchange. It manufactures private label household goods for leading brands, and it also owns several internationally known brands, including Hoover, Dirt Devil, Milwaukee, Homelite and Ryobi. JD

Contact me with news tips and story ideas
at 952/893-6876 or joe@powersportsupdate.com.

CPSC Blocks MIC Lead Content Petition

February 17, 2009

The Consumer Product Safety Commission (CPSC) has denied the motorcycle industry’s request for temporary relief from the lead content rule covering children’s toys that became effective Feb. 10, 2009, saying it didn’t have authority to grant that relief.

The petitions filed by the Motorcycle Industry Council (MIC) and the Specialty Vehicle Institute of America (SVIA) sought temporary exclusions that would have provided an opportunity for powersports companies to clear out inventories that do not meet the new standards.  The CPSC now will consider the MIC/SVIA submissions as it finalizes its rule-making for granting permanent exclusions (more…)

Remember what mom always said: Don’t eat lead or motorcycle parts.

February 16, 2009

The story that has been buzzing all around Indy for this Dealer Expo is the new lead content rules that affect sales of youth ATVs and motorcycles. We’ve covered it extensively over at Dealernews.com and in our Show Dailies. The regulations are the kind of sweeping, all-inclusive legislation that rules out such things as common sense and rational thinking.

Here is one exhibitor’s solution: 

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If you’re reading this and you’re still at Dealer Expo, head over to the Motorcycle Industry Council’s Business Center to voice your concerns. They’re in Booth 4705 in the Indiana Convention Center and sign a pre-printed letter to the CPSC and generate an e-mail to members of congress.

 

“This is a big deal,” said MIC president Tim Buche at the organization’s annual meeting on Friday. He urges people to take charge against the rulings that virtually wipes children’s ATVs, motorcycles and related accessories off the market.

 

You can also go online at www.arra-access.com to generate the letter to congress.