This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

No Clear Wins Yet for China's Golf Development

Neil Haworth, a chief architect with Singapore-based golf course developer Nelson & Haworth, has been quoted saying 2012 is a comeback year for golf development in China after it shakes off the crush of regulations.

One golf-related firm that might already be in an American investor's stock portfolio is Hyatt (H - Get Report), which runs hotels at country clubs in China. It operates a hotel at the 27-hole Regal Riviera Golf Club in Jing Jin City and sells packages to the Westlake International Golf & Country Club in Hangzhou, for example. Hyatt share prices are edging up as income grows on hospitality demand since the 2008-2009 global financial crisis.

Back in the equipment shack, American gear seller Callaway (ELY - Get Report) is flirting with some of its lowest share prices since the early 1990s, before tumbling almost for good in 1998. A chief executive who took over in March is trying to turn the company around.

Could China help? The company that started its China division four years ago now has about 100 outlets and annual turnover of 100 million yuan, the official China Daily newspaper reported last year. China's overall golf market was worth 3 billion yuan per year in 2010, the newspaper says.

China Daily also calls Titleist the most popular golf ball brand in China. When sports clothier Fila Korea (081660.KS) agreed last year to buy the brand, its share prices jumped (they have come way down since then).

A positive spin on golf should also lift business for the likes of Rio Tinto (RIO.L) or Sumitomo Titanium (SUMA.MU). Both make titanium for the heads of golf clubs and have seen steady share prices post 2009.

Add to these the standard big-name makers of shoes, shirts and bags. Sports equipment is already expected to enjoy a boost from China's No. 2 performance in the London summer Olympics.

But traps loom in the way of China's golf development. The country has produced no globally known legends to serve as role models -- as Taiwan's 23-year-old Yani Tseng does for younger athletes in her homeland or as ex-NBA star and Chinese national Yao Ming does for basketball fans in China.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ELY $8.10 -1.94%
H $38.36 -2.54%
AAPL $94.18 -0.10%
FB $103.20 2.20%
GOOG $683.11 -0.15%


Chart of I:DJI
DOW 15,660.18 -254.56 -1.60%
S&P 500 1,829.08 -22.78 -1.23%
NASDAQ 4,266.8370 -16.7550 -0.39%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs