Issue link: https://read.dmtmag.com/i/360137
FOCUS PSB F&I www.PowersportsBusiness.com Powersports Business • August 11, 2014 • 19 BG: How often does your buddy work on friends' bikes from his shop? CU: Probably never. BG: And what are the chances he is able to diagnose an electrical problem given the latest technology in these machines these days? CU: He probably couldn't handle that. THE THINGS GONE WRONG OBJECTION BG: OK, so you want the service contract included in this sale right? CU: Well, I just don't think that much is going to go wrong. BG: OK, so let's recap quickly. You said you didn't want the extra payment, and I showed you how a service contract actually saves you money over the next five years. You said you have a mechanic friend that you agreed prob- ably will not have the time or expertise to fix your bike. How many parts do you think are actually on one of these bikes? CU: I don't know, probably over 1,000? BG: You are right, well over 1,000. And what would you say is a good number for a manu- facturer to control quality over a five-year year period? CU: I don't know, maybe 99 percent? BG: OK, let's assume there's just 1000 parts, and a good manufacturer controls quality to 99 percent over five years. You are saying that 10 parts will go bad over those five years. CU: Yikes, I doubt that. BG: But is it safe to say you will have at least one or two things gone wrong over those FOREIGN CURRENCY EXCHANGE 7/18/14 1 Month Ago 6 Months Ago Year Ago Annual Price Price %Change Price %Change Price %Change High Low Australian Dollar 1.07 1.07 0.5% 1.14 6.8% 1.07 0.0% 1.07 1.07 British Pound 0.59 0.59 0.8% 0.61 3.8% 0.59 0.0% 0.59 0.59 Canadian Dollar 1.07 1.09 1.2% 1.10 2.0% 1.07 0.0% 1.07 1.07 Euro 0.74 0.74 -0.5% 0.74 -0.4% 0.74 0.0% 0.74 0.74 Indian Rupee 60.33 60.40 0.1% 61.47 1.9% 60.33 0.0% 60.33 60.33 Indonesian Rupiah 11,615 11,996 3.3% 12,090 4.1% 11,615 0.0% 11,615 11,615 Japanese Yen 101.40 102.13 0.7% 104.27 2.8% 101.40 0.0% 101.40 101.40 Malaysian Ringget 3.18 3.23 1.6% 3.30 3.6% 3.18 0.0% 3.18 3.18 Phillipine Peso 43.53 44.12 1.4% 45.02 3.4% 43.53 0.0% 43.53 43.53 Singapore Dollar 1.24 1.25 0.8% 1.27 2.7% 1.24 0.0% 1.24 1.24 South Korean Won 1,029.50 1,022.45 -0.7% 1,059.75 2.9% 1,029.50 0.0% 1,029.50 1,029.50 Taiwan Dollar 29.98 30.01 0.1% 30.08 0.3% 29.98 0.0% 29.98 29.98 Thailand Bhat 32.16 32.51 1.1% 32.85 2.1% 32.16 0.0% 32.16 32.16 Note: A positive percent change reflects a weakening of the U.S. dollar and a strengthening of the foreign currency. Source: Wells Fargo Securities LLC POWERSPORTS BUSINESS STOCKS Stock Price Price Percent 52-Week Company Ticker 7/18/14 6/20/14 Change High Low Arctic Cat, Inc. ACAT $36.91 $38.90 -5.1% $61.13 $31.95 ARI Network Services, Inc. ARIS $2.82 $3.07 -8.1% $3.51 $2.33 Assurant, Inc. AIZ $65.69 $68.12 -3.6% $69.71 $51.50 Brunswick Corp. BC $41.00 $41.76 -1.8% $47.69 $32.57 General Electric Co. GE $26.46 $26.97 -1.9% $28.09 $22.92 Harley-Davidson, Inc. HOG $67.30 $71.37 -5.7% $74.13 $54.83 Honda Motor Corp. ADR HMC $35.29 $35.63 -1.0% $42.96 $32.42 Orbital Engine Corp. Ltd. ADR OE $2.33 $2.25 3.3% $4.32 $1.99 Polaris Industries, Inc. PII $132.80 $129.16 2.8% $146.99 $102.23 TCF Financial Corporation TCB $15.88 $16.49 -3.7% $17.39 $13.69 Stock Price Price Percent 52-Week Company Ticker 7/18/14 6/20/14 Change High Low ArvinMeritor ARM $12.66 $14.59 -13.2% $15.14 $6.09 ADP ADP $81.03 $79.45 2.0% $83.82 $69.76 Bridgestone Corp. ADR BRDCY $18.75 $18.09 3.7% $19.08 $16.38 Carlisle Companies CSL $86.47 $86.37 0.1% $88.36 $63.16 Cooper Tire & Rubber CTB $30.00 $29.83 0.6% $34.17 $20.55 Dover Corporation DOV $88.72 $90.71 -2.2% $91.84 $67.76 Intl. Speedway Corp. Cl. A ISCA $32.48 $32.26 0.7% $38.01 $29.90 Deere & Company DE $87.63 $92.04 -4.8% $94.89 $80.50 MarineMax, Inc. HZO $16.26 $15.85 2.6% $17.62 $10.17 Spy Inc. XSPY $1.02 $0.90 13.3% $2.25 $0.50 Speedway Motorsports, Inc. TRK $17.71 $18.20 -2.7% $20.75 $17.26 Universal Technical Institute UTI $12.50 $11.72 6.7% $15.16 $10.02 POWERSPORTS BUSINESS INDEX COMPONENTS INTERNATIONAL STOCKS OF INTEREST Source: Wells Fargo Securities LLC Stock Price Price Percent 52-Week Company Ticker 7/18/14 6/20/14 Change High Low BMW AG BMW-ETR 93.61 € 92.56 € 1.1% 96.10 € 70.08 € BRP, Inc. DOO-TSE $26.48 $26.60 -0.5% $31.98 $25.26 Kawasaki Heavy Industries 7012-TKS 390 ¥ 397 ¥ -1.8% 496 ¥ 328 ¥ KTM Powersports AG KTM-WBO 94.00 € 85.00 € 10.6% 99.00 € 50.12 € Michelin ML-PAR 85.41 € 90.33 € -5.4% 94.33 € 71.75 € NGK Sparkplug 5334-TKS 2869 ¥ 2999 ¥ -4.3% 3005 ¥ 1846 ¥ Suzuki Motor 7269-TKS 3280 ¥ 3201 ¥ 2.5% 3465 ¥ 2054 ¥ Yamaha Motor 7272-TKS 1744 ¥ 1748 ¥ -0.2% 1865 ¥ 1240 ¥ Yokohama Rubber 5101-TKS 865 ¥ 949 ¥ -8.9% 1081 ¥ 829 ¥ DOMESTIC STOCKS OF INTEREST See Gallmeier, Page 21 GALLMEIER CONTINUED FROM PAGE 18