Harley Davidson to Produce Electric Motorcycles in ‘19

Harley 200x200

Harley Davidson (HOG) will start production on electric motorcycles in 2019. Dubbed “Project Live Wire”, the e-motorcycle is expected to resemble a concept bike the company introduced back in 2014. While HOG’s 2017 revenue declined 60.2% YOY (to $2.4 billion), the one segment of the motorcycle business that has been growing is the female demographic (according to Motorcycle Industry Council); so, it makes sense to invest ($25-50 million/year) in the development of lighter bikes (with smaller engines) and EVs, preferred by women. HOG will have little competition in the U.S electric street bike market, none of their big-name competitors (Honda, Kawasaki, Suzuki, BMW & KTM) offer a comparable product.

Howie Long-Short: The big-name competitors referenced (HMC, KWHIY, SZKMF, BAMXF and VIE: TKMI) don’t offer 2 wheel EVs, but HOG will have competition in the U.S. market from a series of smaller companies. Energica (BIT: EMC), publicly traded on the Borsa Italiana, Alta Motors and Zero Motorcycles, are all playing in the space. Alta Motors is privately held, but Telsa (TLSA) participated in the company’s $27 million Series B round (June ’17). Zero Motorcycles appears to have raised over $85 million, but all of it is private money.

Fan Marino: The Trump administration is causing headaches for HOG shareholders as recommended quotas on imported foreign metals has the EU prepared to retaliate; with tariffs on U.S. products sold in Europe. Should the recommendation pass, the European Commission has said it would take “measures to defend EU industry”; including the implementation of tariffs on U.S. agriculture products, bourbon and HOG bikes. Why HOG? The European Commission is looking to hurt House Speaker Paul Ryan, who hails from Wisconsin; the location of HOG headquarters.

Interested in Sports? Sports Business? Sports Finance? Sign-up for our free daily email newsletter list, here!

Dillon Returns #3 Chevrolet to Victory Lane, Discusses Personal Stock Portfolio

Dillon Daytona

Austin Dillon, the grandson of Richard Childress (he races for Richard Childress Racing), won the 2018 Daytona 500; winning The Great American Race in the #3 Chevrolet (GM) car, 20 years after Dale Earnhardt Jr. broke his career-long draught at the 2.5-mile track. Run in front of a sold-out crowd (101,500 reserved stadium seats), Dillon used a “last-lap, bump and run move that was absolutely Earnhardt-like” to win the 60th edition of the Monster Energy NASCAR Cup Series season. Austin follows the market closely and shared some insight on his personal portfolio with JohnWallStreet.

JWS: Do you personally invest in your corporate sponsors?

Dillon: Every sponsor that I have, that is traded (DWDP, GIS), I have stock in. It works well. You can build together. When you are running well, they are doing well. It’s cool how that works.

JWS: You mentioned that you do a little bit of trading for fun. Can you share a few of your holdings?

Dillon: Caterpillar (CAT), I had them as one of our partners for a while; my Grandpa did well on Caterpillar. Builders First Source (BLDR) has been doing well. Nintendo (NTDOY). I was playing Pokeman like crazy when it came out and was like I should get some stock, they’ve been doing well.

Can you give us one trade you’d like to have back?

Dillon: I messed up on Tesla (TSLA), badly. I had it at $44. One of my engineers was like ‘it’s not going anywhere’ and I sold it (currently at $335.49). I had around 200 shares.

Howie Long-Short: While Dillon only references DWDP and GIS (as corporate sponsors he invests in), he owned shares of Cabela’s prior to the its $4 billion acquisition by Bass Pro Shops. Bass Pro Shops remains one of Dillon’s sponsors, but is not publicly traded.

Fan Marino: Dillon returning the famed #3 Chevrolet to Victory Lane was the biggest story line from Sunday’s race, but there were several other noteworthy headlines. Darrell “Bubba” Wallace Jr. returned a Richard Petty Motorsports car to the Daytona 500; the rookie finished 2nd, the highest ever finish for an African-American driver (and first time an African American has participated in the race since Wendell Scott in 1969). Danica Patrick was also competing in her last NASCAR race. She finished 35th after being involved in a Turn 3 crash on Lap 102. The wreck also ended the day for Chase Elliott, Brad Keselowski and Kevin Harvick.

Interested in Sports? Sports Business? Sports Finance? Sign-up for our free daily email newsletter list, here!

Coca-Cola Extends Long-Standing Partnerships with NASCAR, International Speedway Corporation

Coke

Coca-Cola (KO) has extended partnerships with NASCAR and International Speedway Corporation (ISCA) through 2023, extending a 50-year association that has made the brand one of the “most recognized sponsors” in the sport. The integrated agreement means that KO will remain the “Official Soft Drink of NASCAR” and be the leading (non-alcoholic) pour of 21 NASCAR sanctioned race tracks (ISCA owns 12) for the 2018 season. In addition to pouring rights, KO’s immersive NASCAR marketing approach includes race entitlements (Coca-Cola 600, Coca-Cola 400) and the Coca-Cola Racing Family; a group of top drivers that make appearances and are featured in advertising, promotions and packaging.

Howie Long-Short: Back in early October, ISCA reported revenue for the quarter ending August 31st rose 2.2% (to $131.9 million), despite race attendance continuing to decline; with the hosting of non-traditional events, food, beverage & merchandise sales offsetting sagging ticket sales. The company has set 2017 revenue guidance at $660-$670 million; for comparison purposes, ISCA generated $661 million in 2016. The race track owner/manager will report 2017 full year earnings on January 25th.

Fan Marino: The Coca-Cola Racing Family includes 3 of the Top 11 in the Monster Energy NASCAR Cup Series standings; Denny Hamlin (6), Kyle Larson (8) and Austin Dillon (11). Prior to last season’s playoffs, I had a chance to sit down with Austin Dillon (a market buff) and talk to him about the personal stock portfolio he manages (i.e. not his retirement account). I asked him, if there was a trade you could take back; what would it be?

Dillon: I messed up on Tesla (TSLA), badly. I had it at $44. One of my engineers was like ‘it’s not going anywhere’ and I sold it (currently at $344). I had around 200 shares.

Fun Fact: Dillon played for the South-East team in the 2002 Little League World Series.

To join our free daily email newsletter list, sign-up here!

EXCLUSIVE: NASCAR’S AUSTIN DILLON DISCUSSES HIS CURRENT HOLDINGS AND BIGGEST TRADE REGRET

The Monster Energy (MNST) NASCAR Cup Series playoffs continued Sunday at New Hampshire Motor Speedway. Kyle Busch won the ISM Connect 300, advancing in to the round of 12 in the process. JWS got the exclusive opportunity to sit down with Austin Dillon, currently sitting in 13th place, to discuss his corporate sponsorship partners, investment portfolio and a decision to sell (an equity) that he regrets. Austin finished 19th in Sunday’s race after being involved in an 8-car wreck.

How does your passion for sports drive the corporate sponsorship partners you have?

Austin Dillon: I’m a huge outdoorsman, so I started out with Bass Pro Shops (CAB). That was an easy tie-in for me with my hunting and fishing background. From a racing standpoint, I used to be with AdvoCare and their Rehydrate product. I enjoyed using the product. We won a championship with them. I’m now with Dow Chemical Company (DWDP) and their scientists and engineers directly make an impact on our car through technological advances. 

Do you personally invest in your corporate sponsors?

Austin Dillon: Every sponsor that I have, that is traded (CAB, DWDP, GIS), I have stock in. It works well. You can build together. When you are running well, they are doing well. It’s cool how that works.

You mentioned that you do a little bit of trading for fun.  Can you share a few of your holdings?

Austin Dillon: Caterpillar (CAT), I had them as one of our partners for a while; my Grandpa did well on Caterpillar. Builders First Source (BLDR) has been doing well. Nintendo (NTDOY). I was playing Pokeman like crazy when it came out and was like I should get some stock, they’ve been doing well. 

Can you give us one trade you’d like to have back?

Austin Dillon: I messed up on Tesla (TSLA), badly. I had it at $44. One of my engineers was like ‘it’s not going anywhere’ and I sold it (currently at $351). I had around 200 shares.

Howie Long-Short: Dow Chemical Corporation and DuPont Co., the 2 largest American chemical makers, completed a $130 billion merger in late August. As of September 1st, the company began to trade under the symbol DWDP. DWDP is expected to split into 3 separate companies (agriculture, specialty products and materials).

Fan Marino: Austin Dillon played for the South-East team in the 2002 Little League World Series. South East made the 2017 United States Championships and Austin was given opportunity to give the kids a pep-talk before the game. South-East ended up losing a heartbreaker to South-West, 6-5. Nolan Ryan delivered the South-West team’s pregame speech.