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$2.57 0.05 (1.98%)
5/16/2008 3:59 PM

Golfsmith International Holdings, Inc. (GOLF)

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The Company is a retailer of golf and tennis equipment, apparel and accessories.

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Avatar ForceMajeure26 (71.56) Submitted: 10/18/06 1:03 PM : Underperform Start Price: $8.42 GOLF Score: 73.44

As big a golfer as I am, the facts remain: Rounds of golf, and # of new players to the game have been declining for years and years - the only way the manufacturers can grow is by stealing market share from others, and lowering prices (and hurting margins). Same goes for the golf stores if you ask me.. hence my thumbs down on ELY and GGXY as well.

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Avatar morphd35 (34.28) Submitted: 1/19/07 11:07 AM

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I think the popularity of golf has been hurt by the downturn in the recent economy. Lots of us IT types have lost jobs and salary levels to foreign markets in the past several years. I know within my profession, there used to be alot of golf being played by my counterparts. Looking at the cheaper courses in my area, I see lots of new golfers and very crowded conditions, but not so much on the more expensive courses. I think with the better economy now and I hope that is ahead, golf will rebound. Looking at the golf mags, I can see a huge push for custom fitted clubs. I know I am in the market in this coming year for a new set and custom is the way I plan to go. Seeing this and hearing it from different areas and on golf courses, I am bullish on the companies that can do this within a reasonable budget. Golfsmith fits that category, at least here in Texas. They are building more locations, but not so many that there is concern about expansion, they have been very slow to over build. Their facilities are state of the art and they can fit a golfer for less than most other venues. At under $10 a share, this is a bargin IMHO.

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Avatar ForceMajeure26 (71.56) Submitted: 3/09/07 11:48 AM

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Good luck and enjoy the new clubs. You can never go wrong with Callaway or Ping. (I worked for Callaway and can vouch for their products). Ive been in the industry for years, and the trends have not changed. Margins are not great on clubs, and millions of people buy clubs on Ebay for a fraction of the cost at a major retailer (Golfsmith, Edwin Watts, Golf Galaxy, etc), and that to the decling number of new golfers and rounds played year over year will make it difficult for the stock to outperform IMHO...

Matt

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