Does anybody want to ride on Harley Davidson ownership? Not really - as speculation for a buyout is not new for the company. In the past several months, rumors made into News headlines but no concrete proposals are yet in sight.

Market buzz.

Shares were up almost 15% in Friday’s session amid speculation of takeover buzz. The company’s spokesperson was not available for comment immediately when contacted about potential takeover rumours. Market sources revealed that KKR & Co recently expressed interest in taking over the legendary motorcycle manufacturers. Rumours are not new to legendary motorcycle manufacturers.

Backin December the company was under speculation of a possible takeover. The company’s spoke person said at that time that "we never comment on market speculation and we get rumours of take overs every now and then. It’s not our strategy to comment on speculation."

Company analysis.

The company’s sales were down and most of the last fiscal and shares were also down almost 30% since January 2015.Since then they worked to build brand value and strengthen its distribution by adding many stores overseas. Its brand value has not reflected in stock value yet but the company feels that in future sales will increase and so will the stock price. "Our company is making our manufacturing facilities up to date so that we can make efficient motorcycles," said a spoke person from Harley Davidson.

The Company debt to equity ratio is also low at 52% and makes it attractive for buyers to consider this stock. For Harley Davidson’s perspective it is a good option for them to exit asthe last few quarters were bad for them. Companies like Honda, Kawasaki and Suzuki have done some price correction due to the weaker yen which has helped those companies to stay with the competition in a tough American market.

Collector's choice.

As a price rise in the company’s stock is unlikely one will have to wait further for the stock to correct itself in coming days. This may not be an ideal time to consider rumors about Harley Davidson’s stake sale. But there will be better buying options available in future for this particular stock.

If you are a collector of legendary stocks like Harley Davidson then you can surely considerkeeping this in your portfolio in the future.

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