Redwood Technimentals Issues New Sell Rating on Harley-Davidson

NEW YORK, July 9 -- A strong sell signal on former high-flyer Harley-Davidson, Inc. , which reports earnings next week, was sent out this morning to global institutional investors by Joseph H. Phillips, CFA, senior analyst at Redwood Technimentals Research Group (CRD #39416), a leading independent equity research firm.

Mr. Phillips believes Harley-Davidson, which opened this morning at $39.37 and reached a high in February of $54.99, will experience significant declines in both sales and earnings growth rates in the near-to-immediate term. He said the company's shares are now tracing out a major top and might fall as low as $27-$28.

Although second quarter earnings should be in line with analyst estimates, he cited the company's "deeper underlying sluggishness as evidenced by a slowing inventory and an increased working capital build-up."

He forecast a growth rate dip to 16-percent this year. Since day-to-day share prices will fluctuate, Mr. Phillips suggested a scaled approach to those shorting the company, but an outright sell for long accounts "since the long-term price trend has now deteriorated enough that long accounts remain at imminent risk of a sizable price decline."

Redwood Technimentals Research, LLC is a member of the National Association of Securities Dealers, CRD number 39416.

NOTE TO EDITORS: To receive the in-depth Redwood Technimentals report on Harley-Davidson, please contact Mr. Phillips at +1-212-742-8706.