Callaway Golf Company (NYSE:ELY)

Sales of golf equipment should rebound this year

9/18/11 Options Predictor Rank #44. P/C Ratio 0.1 and Call Sizzle 3.731.

CEO got canned! Going to be a touch year for Callaway.

I am following Barron's on this one. The stock has had a tough few years, but it is now trading at just .59X book value. Furthermore, the company has a clean balance sheet with $25 mm in net cash, which should help protect the downside.

However, what really makes me interested is that it seems like change is finally coming. The CEO was ousted after six years at the job, and interim CEO is slashing costs aggressively. This could help serve as a catalyst, drive out some of the 17% short interest, and restore this company to profitability. If they can do that, their strong brand will likely be worth at least book value-- a double from current prices.

recovery of economy, everyone wants new clubs every summer

Alpha

Trading at less than 50% of sales and 70% of book value, this debt free company's stock is trading at bargain levels. Patience will be rewarded.

Going for Par.

Currently trading at .54 book value. Great valuation for a company with such a strong brand. They got nailed with the poor earnings recently and have dropped out of favor of Wall Street. Short term, the golf industry may be hurting but ELY has done a great job with the brand and expanding market share.

Callaway is an established brand in an industry where it is difficult to pick up sizeable market share. Shares appear relatively cheap compared to its book value and sales will return to normal once the worst of the recession has passed.

black

friday

a good golf company

a good golf company

Intrinsic value considerably higher, will be a strong performer when confidence returns at a broader scale. Brand amongst the very strongest in the sector providing a certain 'moat'.

Good Brand and Products.

Price isn't too dear.

Stock price hit rock bottom., ready to bounce back Strong brand (and I am NOT into golf at all) with low D/E.

bull

bull

there's not many stocks left with such low p/b ratios. fundamentals are pretty sound. i think what they're doing with the raising of capital is just being cautious, or maybe even trying to drive the price of the stock down so that they themselves can buy some.

i think all the bad news is priced in and cheap stocks are getting harder and harder to find this far into the rally. investors are looking for price book ratios below 1. if you notice, the big movers most often are stocks with good fundamentals near their 52 week lows that havent popped off yet. well, this probably wont pop off, given the bad taste many have in their mouths from the recent news. but its likely to rise.

check out the last two evaluations. i agree with them completely. brand name that has value. good buy for this cheap. excuse poor grammar and punctuations, im russian or something. and lazy