This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Is the Golf Industry a Birdie or Bogey Investment?

Know why? 'Cause most weekend warriors are learning it's the talented player who hits it 300-yards plus, not the club itself (which are also highly customized for Tour players' games).

Adams Golf (recently absorbed by Adidas) burst on the scene in the late 1990s by introducing the very playable Tight Lies hybrid club to help golfers struggling with long irons. It was an immediate hit for amateurs and pros alike and the company raked in millions. That is until the big competitors designed their own wonder clubs (its hardly difficult to mimic a club design) and supported it with comparatively bottomless marketing dollars to usurp Adams' revenue.

As stated, the problem with golf equipment is companies with a unique product enjoy a fairly short unique shelf life. Sales skyrocketed when Woods shocked the stodgy conservative golf apparel landscape donning the mock collar in 2003.

But like equipment, other manufacturers quickly caught onto the trendy fashion threads and now every company sells performance fabric wear -- including Under Armor (UA - Get Report), which expanded its popular line into the golf segment and is big with the younger crowd.

Today's golfers realize it's far easier to look like their favorite star performers than play like them. Popular player Rickie Fowler put Puma (PMMAF) on the map with his trendy outfits -- its akin to Apple's (AAPL - Get Report) early iPod attraction to kids -- even with only one tour victory. If he wins a out. Yet, Puma stock is flat while Adidas is trending up.

Privately held Danish shoe company Ecco struck marketing gold after popular golf star Fred Couples wore its casual golf shoe with the ubiquitous molded traction bar soles at the 2010 Masters. However, the lofty price is hard to justify as I have four pair of similar (and less expensive) competing models that also feel and look good on and off the links.

In addition, golfers aren't as apt to trade in their current sticks for the latest, greatest clubs these days, instead opting to use the savings to buy actual rounds of golf. But they'll still spend to look the part -- at least until they take that way-off-plane golf swing.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
ADDYY $38.96 0.00%
ALDA $0.60 0.00%
PMMAF $195.45 0.00%
AAPL $128.46 0.00%
DKS $54.09 0.00%


DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs