Is Callaway A Good Recession Buy?

by The Editors on June 20, 2009

Callaway-LogoIn a recent column Reuters’ “blogging money and politics” writer James Pethokoukis asked the question: Is Callaway Golf a good play in the recession?

James goes on to say that the golf business is getting hammered right now and that sales could be down 17 to 20 percent rather than the 5 to 10 percent that Callaway reported.

However, most analysts agree Callaway boasts a strong balance sheet and one of the best golf brands. . . And the new drivers are doing better than expected as the company is using them to clear out unwanted fairway wood inventory, Gilford Securities analyst Casey Alexander said. . . In fact, the stock is likely to rebound as things improve, said Alexander, who has a “buy” rating on the stock and also runs a small hedge fund that holds Callaway shares.

Guess that’s a “yes.”

[Link: Reuters]

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