Harley-Davidson a Discretionary Play? Not So Fast.

4/7 - "There has been a flurry of posts flying around lately about Harley Davidson (HOG) and their status as a "discretionary" purchase. Now, while the choice to buy a motorcycle may be for some, riding a Harley is not necessarily. There is a huge segment of the Harley population that considers their cars their second mode of transportation."

"A Harley Davidson rider will never, ever, make the decision to NOT buy a Harley and instead hop on a Suzuki to "save a few bucks". That very fact means there is a very large limit to just how discretionary the bikes are."

"Let's not forget that this brand is so powerful people tattoo its logo on their skin. Ever see Google (GOOG) or Apple (AAPL) tattooed on anyone? We know how passionate those folks are about their products, yet it would seem they pale to those who ride HOG's. You cannot both put a price tag on this and underestimate the power of the brand in people decision making process.

This passion means there is an in-elasticity to the "discretionary" aspect of the bikes. If that is true, and I believe it is, then we may have reached the limit of it and shares have bottomed. That is why I bought earlier in the year..."