Apparently, even Pittsburgh Penguins phenom Sidney Crosby hasn't been enough to revive stagnant interest in hockey. Nike (NYSE: NKE) is reportedly looking to unload Bauer, a market leader in hockey equipment. The company is expected to get less than half of the $395 million it paid for Bauer parent Canstar Sports -- in 1994. According to the New York Times, "Player registrations for USA Hockey, the governing body, rose last season by 3.3 percent over the previous period. But the increase was largely caused by previously unregistered adult players who joined for insurance reasons. Youth memberships, the indicator of the sport's future, fell 0.5 percent."
Bauer has been a lackluster performer since it was acquired and recent efforts to incorporate the Nike swoosh into a new logo for the company (shown above) met with consumer resistance.
Unloading the brand might not be so easy, although Nike says it is profitable but does not break down the unit's income in its financial statements. Quiksilver (NYSE: ZQK) recently hired JPMorgan to attempt to sell its Rossignol ski business which it acquired in 2005 and has struggled with ever since.
The market for slow- to no-growth winter sporting goods manufacturers would seem to be a buyer's one.
After more than a month of rumors surrounding the possible sale of Quicksilver's (NYSE: ZQK) Cleveland Golf subsidiary, the deal is done. Quiksilver announced the sale last night, and will collect $132.5 million from SRI Sports, based in Japan.
It's interesting because it's roughly double what industry experts were initially estimating the company would sell for. Back in September, GolfWeek wrote that "Industry sources say Quiksilver Inc., which acquired Cleveland in 2005 as part of a deal to buy ski-maker Rossignol, is in the final stages of unloading the golf equipment maker for roughly $60 million to $70 million. Some analysts say the price is a bargain, noting Cleveland likely is worth at least $100 million, but they add an expedient sale even at a discount is in Quiksilver's best interests."
Recently, I've written about a stock I own called Adams Golf (OTC BB: ADGO), which I believe is very undervalued, in large part because of some corporate governance issues and managerial apathy toward the stock price (which is a good thing in moderation, but Adams may be at the opposite extreme). Using the sale of Cleveland Golf as a guide, I am convinced that Adams shareholders would be rewarded very handsomely if the company's board explored sale options. Take a look at some of the key stats
MOST NOTEWORTHY: Quicksilver Gas Services, Hireright, DaimlerChrysler and Masimo were today's noteworthy initiations:
AG Edwards initiated Quicksilver Gas Services (NYSE: KGS) with a Buy rating and $26 target as the firm believes the company's distribution growth has high visibility, based on its current asset base and the possibility of third-party acquisitions. UBS initiated shares with a Buy rating and $34 target.
Hireright (NASDAQ: HIRE) was initiated with a Market Perform rating and $13 target at Piper Jaffray, as the firm believes the company's distribution growth has high visibility, based on its current asset base and the possibility of third-party acquisitions. CIBC is positive on Hireright's extensive solution set and strategic alliances and initiated shares with a Sector Outperformer rating.
DaimlerChrysler (NYSE: DAI) was started at Bear Stearns with an Outperform rating. Following the Chrysler transaction, Bear expects Daimler to raise its margin guidance now that the company can focus on its truck platform.
Masimo Corporation (NASDAQ: MASI) was initiated with an Outperform rating at Piper Jaffray, as the firm believes the company's "best in class" technology will drive continued pulse oximetry share gains. Cowen initiated shares with a Neutral rating on valuation and Deutsche Bank started shares with a Buy rating and $30 target..
MOST NOTEWORTHY: ConocoPhillips (COP), Transocean (RIG), LifePoint Hospitals (LPNT), EOG Resources (EOG) and Quicksilver Resources (KWK) were today's noteworthy downgrades:
Banc of America cut ConocoPhillips (NYSE: COP) to Neutral from Buy on valuation and the lack of upstream catalysts.
Deutsche Bank cut Transocean (NYSE: RIG) to Hold from Buy based on the GlobalSantaFe (GSF) merger.
Raymond James downgraded LifePoint Hospitals (NASDAQ: LPNT) to Market Perform from Strong Buy following the company's cut in guidance. Merrill Lynch downgraded LifePoint Hospitals to Neutral from Buy.
Citigroup downgraded EOG Resources (NYSE: EOG) and Quicksilver Resources (NYSE: KWK) to Sell from Hold as both trade above the sector averages for NAV and cash flow and neither is well protected in the likely event commodity prices deteriorate...
OTHER DOWNGRADES:
BMO Capital downgraded Biovail (NYSE: BVF) to Market Perform from Outperform.
MOST NOTEWORTHY: Dow Chemical (DOW), Smart Modular (SMOD), Wolverine World Wide (WWW), Win-Dixie Stores (WINN) and Blue Nile (BLUE) were today's noteworthy initiations:
UBS is positive on the ethylene cycle over the next two years and believes Dow Chemical (NYSE: DOW) can beat 2008 consensus estimates, initiating shares with a Buy rating.
JMP Securities started Smart Modular (NASDAQ: SMOD) with a Strong Buy as a unit volume growth theme without much dependence on commodity memory chip pricing.
Citigroup expects further upside given Wolverine World Wide's (NYSE: WWW) strong portfolio of brands, further growth opportunities through line extensions and international growth. The firm started Wolverine World Wide with a Buy rating and $33 target.
Winn-Dixie Stores (NASDAQ: WINN) was started with a Market Perform rating, citing low levels of profitability and unproven ability to drive sustainable profitable sales.
American Technology believes the valuation of Blue Nile (NASDAQ: NILE) leaves little room for upside, despite a highly attractive business model and strong fundamentals, and started shares with a Sell rating and $45 target...
MOST NOTEWORTHY: Jamba, Inc (JMBA), Quiksilver Inc (ZQK), Volcom, Inc (VLCM) and Interactive Data Corp (IDC) were today's noteworthy downgrades:
Oppenheimer believes Jamba (NASDAQ: JMBA) is in the early stages of a solid top- and-bottom-line growth story and is one of the few opportunities today that offers sizable square foot growth, revenue and earnings growth, all with several years of visibility.
Quiksilver Inc (NYSE: ZQK) was initiated with an Accumulate rating and $14 target at ThinkEquity.
ThinkEquity also initiated shares of Volcom Inc (NASDAQ: VLCM) with a Buy rating.
MOST NOTEWORTHY: Tribune Co (TRB), Quiksilver, Inc (ZQK), F5 Networks, Inc (FFIV) and Johnson & Johnson (JNJ) were some of today's noteworthy upgrades:
Prudential upgraded Tribune Co (NYSE: TRB) to Neutral from Underweight based on the company's decision to go private.
Quicksilver Inc (NYSE: ZQK) was upgraded to Overweight from Equal-Weight with a $17 target at Morgan Stanley.
F5 Networks Inc (NASDAQ: FFIV) was upgraded to Buy from Hold at Kaufman Brothers.
Raymond James upgraded Johnson & Johnson (NYSE: JNJ) to Strong Buy from Market Perform.
Jefferies upgraded Kinetic Concepts, Inc (NYSE: KCI) to Buy from Hold with a $60 target as the firm believes the final competitive bidding ruling on durable medical equipment eliminates the single greatest overhang on the stock.
Wachovia upgraded Amerigroup Corp (NYSE: AGP) to Outperform from Market Perform, believing weakness related to AGP's $240M convertible and risks related to the ongoing whistle blower lawsuit are reflected in valuation.
MOST NOTEWORTHY: EchoStar Communications Corp (DISH), PeopleSupport, Inc (PSPT), and Quicksilver, Inc (ZQK) were today's most notable downgrades:
Credit Suisse downgraded EchoStar Communications Corp (NASDAQ: DISH) to Underperform from Neutral based on valuation and lower probability of an acquisition by AT&T (NYSE: T).
PeopleSupport Inc (NASDAQ: PSPT) was downgraded to Market Perform from Outperform at both Piper Jaffray and Freidman Billings following disappointing Q4 earnings and guidance; JMP Securities cut PeopleSupport to Market Outperform from Strong Buy.
Quicksilver (NYSE: ZQK) was downgraded by a host of firms: to Market Performer from Outperformer at Piper Jaffray, to Sector Performer from Outperformer at CIBC, to Hold from Buy at W.R. Hambrecht, to Neutral from Accumulate at Buckingham and to Sell from Hold at Wedbush.
OTHER DOWNGRADES:
Freidman Billings downgraded Tercica, Inc (NASDAQ: TRCA) to Underperform from Market Perform on valuation.
Prudential cut Cheesecake Factory Inc (NASDAQ: CAKE) to Underweight from Neutral citing soft industry sales trends which will impact Q1 and Q2 results.
Raymond James downgraded Goldcorp Inc (NYSE: GG) to Outperform from Strong Buy.
Lehman cut Sprint Nextel Corp (NYSE: S) to Equal-Weight from Overweight.
UBS downgraded New Century Financial Corp (NYSE: NEW) to Reduce from Neutral.
Stifel downgraded C.H. Robinson Worldwide, Inc (NASDAQ: CHRW) to Sell from Hold.
Apparently, even Pittsburgh Penguins phenom Sidney Crosby hasn't been enough to revive stagnant interest in hockey. Nike (NYSE: NKE) is reportedly looking to unload Bauer, a market leader in hockey equipment. The company is expected to get less than half of the $395 million it paid for Bauer parent Canstar Sports -- in 1994.
After more than a month of rumors surrounding the possible sale of 
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