Thursday, March 15, 2007

Taking a Swing at Golf Stocks

Spring is here; time to break out the golf clubs. Unless you live in the southeast, southwest, or west, then you probably play golf 365. There are a few ways to play the golfing industry, the manufacdturers and the retailers. Here are a few to line up to see if you can find a hole-in-one.

Adams Golf (ADGO.OB) P/S ratio is .6, quarterly revenue growth is 47%.

Callaway Golf (ELY) Dividend yield 1.8%, PEG a very reasonable 1.4.

Fortune Brands (FO) They manufacture a lot of different items with a portion of sales from golf. Yield 2%, PEG 1.4.

Golfsmith International (GOLF) P/S is a very low .4, Quarterly earnings growth 178%.

Dick's Sporting Goods (DKS) They retail all types of sporting equipment including golf products. P/S .97, PEG .94 [lowest I've seen in a long time]. Quarterly earnings growth 86%

Author owns ADGO.OB, ELY, and GOLF.

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