Meanwhile, Callaway Golf -- which I owned for several years and finally gave up on -- also reported better-than-expected results, which sent shares up 20% on Friday to a 2 1/2-year high. Third quarter revenue of $178 million was well ahead of the $153 million consensus estimate, while the 18-cent loss better than the expected 31-cent loss.
Late yesterday, Callaway announced redemption of its remaining convertible preferred stock, issued back in 2009, while facing significant liquidity challenges. This was a very controversial move at the time and an expensive form of financing. The buyback may signal the end of a difficult chapter in the company's history.
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Whether Callaway is finally turning the corner remains to be seen, as the company has not turned an annual profit since2008.I was an "early adopter" back in 2009, believing that a turnaround was just a year, or perhaps two, away. Even my patience ran out, as that turnaround was pushed farther and farther into the future. Now, it does appear that the future is looking brighter for Callaway, but I'm still staying on the sidelines, at least for now. At the time of publication, Heller held no positions in either of these companies. Follow @JonMHellerCFA This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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