Leading value investor Charles Mizrahi looks to Harley-Davidson (NYSE: HOG) as the latest “stock of the month.”

 in his Hidden values Report, he observes, "HOG dominates the market for heavyweight motorcycles in the U.S. and continues to grow market share internationally."

“Harley-Davidson Inc. was incorporated in 1981, is the only major American motorcycle manufacturer. 

"Its domestic dealer network makes it very challenging for competitors to take market share.

“The company has had the largest share of the U.S. heavyweight motorcycle market since 1986.

"During 2007 the company’s market share, based on retail registrations of new Harley-Davidson motorcycles, was 48.7% in the United States.

“Since 1988, the company’s research has consistently shown that retail purchasers of new Harley-Davidson motorcycles in the United States have a repurchase intent at or in excess of 80%.

“Research completed by the company in 2007 shows that approximately 52% of all retail purchasers of new Harley-Davidson motorcycles in the U.S had previously owned a Harley-Davidson motorcycle.

“HOG dominates the market for heavyweight motorcycles in the United States and continues to grow market share internationally.

“During the past three years, HOG has returned more than $3.7 billion to shareholders via stock repurchases and dividends due to its free cash flow.

“HOG is a well-run business, and a price of $30 or lower per share represents a very good value. If HOG can grow earnings at only 9% per annum and maintain a P/E of 10, the stock will reward investors handsomely during the next five years.”