Callaway Golf Company (ELY)

TMFMmbop (99.09) Submitted: 5/16/08 4:18 PM : Start Price: $13.60 ELY Score: 10.59

Slowish sales growth in an uncertain economic environment, but looks cheap on an EV/Sales basis. EBIT margins have improved incredibly with the market giving the stock no credit for having tripled its profitability in a little more than a year alongside just 14% sales growth. If the economy picks back up (and golf spending along with it) and ELY can maintain current marginss, the market should reevaluate its opinion of the stock in a big way.

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