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Callaway Golf (ELY) slashes dividend to $0.01

Posted Jun 9th 2009 2:30PM by Brent Archer (RSS feed)
Filed under: Major movement, Bad news, Options, Technical Analysis

ELY logoCallaway Golf (NYSE: ELY - option chain) stock is falling today after the company said it will reduce its quarterly dividend to 1 cent per share. The dividend had been at 7 cents per share. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on ELY.

This morning, ELY opened at $6.24. So far today the stock has hit a low of $6.10 and a high of $6.47. As of 12:25, ELY is trading at $6.26, down $1.02 (-14.1%). The chart for ELY looks bearish and S&P gives ELY a negative 2 STARS (out of 5) sell ranking.

Continue reading Callaway Golf (ELY) slashes dividend to $0.01

If Justin Timberlake played Callaway clubs, would you?

Posted Nov 1st 2008 2:28PM by Zac Bissonnette (RSS feed)
Filed under: Marketing and advertising

In a press release, Callaway Golf (NYSE: ELY) announced that it has signed former NSYNC'er and current pop prince Justin Timberlake to an endorsement deal.

Timberlake, who currently hosts the PGA Tour's Justin Timberlake Shriners Hospitals for Children Open, will "play a full complement of Callaway Golf clubs, golf balls and will carry a bag branded with the Company's logo."

Financial terms of the deal were not disclosed, but here's my question: Would you -- would anyone? -- buy Callaway golf clubs because Justin Timberlake plays them? He may be one of the better celebrity hackers, but he's no Tiger Woods.

The endorsement deal will probably get Callaway's logo to show up in places you don't normally see it: US Weekly, People and PerezHilton. But are those really places Callaway will benefit from exposure?

Option update 1-31-08: Callaway Golf volatility elevated into EPS

Posted Jan 31st 2008 10:45AM by Paul Foster (RSS feed)
Filed under: CA Inc (CA), Options

Callaway Golf (NYSE: ELY) is scheduled to release Q4 EPS this afternoon.

ELY will hold an analyst meeting on February 7.

ELY overall option implied volatility of 50 is above its 26-week average of 41 according to Track Data, suggesting larger risk.

CA, Inc. (NYSE: CA), an information technology management software company, closed at $22.30 Wednesday.

Stanford Group initiated CA with a Hold rating. Stanford says: "In our opinion CA has suffered from three main problems in recent years; growth, restructuring-related disruptions, and a complex financial model that hindered visibility of its financial performance."

CA is expected to report Q3 EPS after the market close tonight. CA February option implied volatility of 43 is above its 26-week average of 28 according to Track Data, suggesting larger price risks.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Callaway reports well but guidance fails to appease Wall Street

Posted Aug 1st 2007 6:45PM by Kevin Kelly (RSS feed)
Filed under: Earnings reports, Forecasts

Although Callaway Golf (NYSE: ELY) reported solid earnings and upped guidance after the bell, the stock has moved down in after hours trading. The reason for this sell-off, according to press reports, is the fact that the company's new guidance is still below the analysts' consensus for yearly EPS and revenues.

On the quarter, Callaway was roughly in-line with estimates -- they missed EPS estimates by a penny but matched revenue expectations. For the year, Callaway expects to earn 78-84 cents per share, an increase from previous guidance, but still below the consensus estimate of 89 cents per share. The fact that the company didn't up guidance all the way to analyst expectations is nothing surprising in my experience, very few companies actually match expectations in guidance.

As I mentioned in an earlier post, I think the play in golf stocks is Adams Golf (OTC: ADGO). The stock is trading for roughly half Callaway on almost every metric and I'm very bullish on the future of the company's hybrid irons.

Disclosure: Kevin Kelly is long Adams Golf.

Analyst initiations 1-18-07: Susquehanna is positive on Marvel's superheroes

Posted Jan 18th 2007 11:16AM by Kevin Shult (RSS feed)
Filed under: Before the bell, Applied Materials (AMAT), Analyst initiations

MOST NOTEWORTHY: Applied Materials (AMAT) and Marvel Entertainment (MVL) were the most notable companies initiated today:
  • Citing an unattractive valuation, Nollenberger initiated Applied Materials (NASDAQ: AMAT) with a Neutral rating.
  • Susquehanna initiated Marvel Entertainment (NYSE: MVL) with a Positive rating, expecting strong earnings momentum for the foreseeable future driven by the success of licensed properties and the release of feature films.

OTHER INITIATIONS:
  • Rochdale Research initiated shares of Callaway Golf (NYSE: ELY) with a Neutral rating and $12.50 target, citing valuation
  • Prudential initiated MGIC Investment (NYSE: MTG) with an Underweight rating and $65 target; as they prefer business models that are less reliant on the U.S. mortgage insurance, the firm sees an unfavorable risk/reward.
  • Merriman initiated TheStreet.com Inc (NASDAQ: TSCM) with a Buy rating. Merriman said TheStreet.com is transitioning to a Media Business model leveraging unique content assets and high organic user traffic. The firm likes the company's strategy to increase its mass market appeal towards the retail and professional investors.
Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

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DJIA+73.0010,270.47
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S&P 500+6.241,093.48

Last updated: November 14, 2009: 01:32 PM

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