The shares of MotorCycle Holdings Ltd (ASX: MTO) are rocketing higher by 8% this morning following the release of a positive business update by the recently listed motorcycle retailer.

In its prospectus the company had forecast full year pro forma net profit after tax of $6.9 million, but today it reported that following a strong performance it is now expecting net profit after tax to come in ahead of forecast by 10% to 15%.

In recent years the company has benefited greatly from increasing numbers of motorcycle riders. According to data in its prospectus, in the last 5 years total registered motorcycles in Australia have grown at a compound annual growth rate of 4.1% to 807,000. Judging by this update it would appear that this trend is continuing and business across its 34 Australian dealerships is still booming.

One spot of disappointing news from the update was the announcement that chairman Bob Thorn would be retiring from the board after only a reasonably short time in the position. Having previously been the managing director of Super Retail Group (ASX: SUL) for 9 years, he was an experienced figure that was no doubt key to leading the company successfully through its ASX listing.

The company revealed Mr David Foster will act as interim chairman until a permanent appointment is made. A search for a suitable replacement chairman will commence shortly.

The company may be a new listing to the Australian Stock Exchange but it has already been catching the eye of institutional investors. In the last month both Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) have been busy increasing their interest in the company to 8.9% and 5%, respectively.

By my calculation the shares of MotorCycle Holdings are changing hands at around 15x estimated full year earnings, which I believe makes them reasonably priced for the growth they are exhibiting. I feel this could make MotorCycle Holdings a great addition to your portfolio today.

Lastly, if you do plan on adding it to your portfolio then whilst you're there I would highly recommend you check to see if you own one of these three rotten ASX shares. Each could be harming your portfolio and might be best swapped out if you ask me,

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.