Some hate the sound, some are drawn to it, but everyone notices a quality motorcycle when it comes roaring down the road, with or without a sexy back rider. Three years ago on March 5, 2009, a large number of smart investors bought shares in Harley Davidson Inc. (NYSE: HOG) for as low as $7.99 and are sitting on a 481.60% gain as of this 4th of July. Recently, Viper Motorcycle Co. (OTC: VPWI) teamed up with Harley Davidson in March and, with business expanding, needs to be on the list of penny stocks to watch. The makers of the Viper Diamondback, the world’s fastest production V-Twin Supercruiser, VPWI stock price is so low right now that it could easily triple before Daytona Bike Week.
As of May 9, 2012, there was only 46,752,303 shares outstanding.
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VPWI 2012 Highlights
Since the beginning of the year, Viper Motorcycle Company has been making all the right moves in order to get its production bikes into the retail sector. Viper reported $74,172 of motorcycle and parts revenue for Q1 2012 as compared to $35,773 for the same period of 2011. There were two bikes sold during Q1 2012 as compared to one bike during the same period of 2011.
In March, the Company signed signed Gruene Harley-Davidson & Javelina Harley-Davidson as Gold Dealers in the state of Texas. This move was the first by Viper Motorcycle to aggressively transform their distribution network by targeting demographically key dealers and distributors.
In April they secured $6 Million from Platinum Partners. Viper used $640,000 for the acquisition of Precision Metal Fab Racing, a manufacturer and marketer of high performance racing and custom motorcycle components and accessories. Precision Metal Fab Racing has been in business for 36 years and is a leading manufacturer of performance racing bikes and components.
In May, Viper selected Valerie Thompson, 2-time Bonneville land speed record holder, to present their new Special Edition Viper Diamondback at Dana Mecum’s 25th Original Spring Classic Car Auction in Indianapolis. Marketing 101: Choose the world’s fastest woman to present the world’s fastest Supercruiser at the world’s largest collector car auction. Brilliant move.
In June, the Company announced that NHRA Top Fuel Driver Brandon Bernstein was the highest bidder at the Dana Mecum’s 25th Original Spring Classic Car Auction of the 1st production 2012 “Black Diamond Edition” Viper Diamondback with a winning bid of $55,000. Furthermore, Viper CEO John Silseth addressed shareholders with updates of what to expect in the coming months.
VPWI Current Production: Initially, 25 2013 “Black Diamond Edition” Diamondbacks are expected to be individually numbered along with a commemorative medallion and will be in Viper Dealer’s showrooms starting in July. Currently, Viper is manufacturing 1 bike per week. As demand grows, the Company plans to increase production incrementally at the rate of 1 additional bike per week every 6 weeks. The Viper Motorcycle facility, supply chain and inventory control systems are configured to build up to 16 bikes per week.
VPWI International Marketing: The first of Viper’s motorcycles to their UK based European distributor has been shipped for type approval and review by the UK industry magazine press. Soon after, the same will take place with the addition of an Australian distributor. The Company’s Dubai distributor is also anticipating shipment of the “Black Diamond Edition” Diamondback’s and Mamba models.
VPWI North American Marketing: Viper Motorcycles launched a revamped website yesterday (www.vipermotorcycle.com) to better support their 25 “Black Diamond Edition” Diamondbacks. Motorcycles dealers will host launch parties to coincide with each dealership getting their initial “Black Diamond Editions” Diamondbacks. Each launch party will be by invitation to the dealers high-end customer list and feature a Viper corporate video, Viper-Ilmor displays, and “Black Diamond Edition” Viper Diamondbacks.
Viper Motorcycle’s flagship bike, the “Mamba” will not be unveiled until the Viper Facility Grand Opening in Auburn later in 2012. Viper’s “Mamba” is scheduled to begin deliveries in December.
Made In America Motorcycle Industry Snap Shot
Sales of motorcycles in the U.S. are affected materially by a pattern of seasonality experienced in the industry which results in lower sales during winter months in colder regions of the country. However, Harley Davidson Inc.’s profits rose 44% in Q1 2012 due to an increase in sales of their motorcycles with roughly 67% of those sales happening overseas. Forecasts have Harley Davidson set for 250,000 “hogs” expected to be sold in 2012.
Everyone knows the Tuttle’s have been feuding on TLC and Discovery over Orange County Choppers and Paul Jr. Designs for the past couple of years. The point is American’s and foreigners love their motorcycles and, like the sound of them or not, sales lead to profits.
About VPWI Stock
Viper Motorcycle Company, a wholly owned subsidiary of Viper Powersports, Inc., develops and produces proprietary premium motorcycle products targeted to consumers who can afford to purchase upscale luxury products. The Company’s long-term business strategy is to become a leading developer and supplier of premium V-Twin heavyweight motorcycles, V-Twin engines, and ancillary motorcycle aftermarket products.
To view the SEC filings of VPWI, click here.
Bottom Line: VPWI is one penny stock that anyone who understands the luxury merchandise market will be adding to their investment portfolio. Timothy Sykes might be compensating for lacking physical characteristics by buying a Ferrari recently while I, Tim Richards, have already spoken to the dealer in WPB about getting me a Diamondback as soon as it’s available. Motorcycle riders have nothing they have to compensate for.
VPWI is, without a doubt, a must add if you appreciate companies like Soupman Inc. (SOUP), Skinny Nutrition (SKNY) and BeBevCo (BBDA) which are undervalued and have the demand needed for sales growth.
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