Re: Anyone own Ducati (DMH) stock? Thinking of buy
I am thinking of buying stock. It is not volatile and the volume of trades is low. Looking at their 5 yr, 2 yr and 1yr chart, it seems the stock is at a low point.
The monster 620 was a great financial move it seems, "an astonishing number of people who never owned a motorcycle before entered into our family via the M620 - something like 40% of all the buyers, which is terribly high."
In those past 5 yrs in the US, Ducati's registrations went from 2000 bikes a year up to 6000, and then it dropped slightly to between 5000 and 6000. They have had problems with marketing in the U.S.
For a small italian company to approach a large country as the US with a heavy ad campaign is not cost effective. They have tried to share the burden with other euro bike companies in cobranded mega stores without success.
My outlook on the stock is a positive one.
- They make bikes that evoke emotion and wanting.
- All their sales numbers in US and intl are growing slowly.
- The stock is near its 5 yr low.
- They have entry model bikes to create new customers.
- Motorcyle registrations in the US are up 15%
I think it will be critical for Ducati to make their bikes more servicable and to find a way to mass market to US customers.
I was going to reduce my risk exposure with buying shares of Harley.