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

JAKKS Pacific; Callaway Golf Comeback Could Be in the Works

JAKK Chart JAKK data by YCharts

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. ELY Chart ELY data by YCharts

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.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Jonathan Heller, CFA, is president of KEJ Financial Advisors, his fee-only financial planning company. Jon spent 17 years at Bloomberg Financial Markets in various roles, from 1989 until 2005. He ran Bloomberg's Equity Fundamental Research Department from 1994 until 1998, when he assumed responsibility for Bloomberg's Equity Data Research Department. In 2001, he joined Bloomberg's Publishing group as senior markets editor and writer for Bloomberg Personal Finance Magazine, and an associate editor and contributor for Bloomberg Markets Magazine. In 2005, he joined SEI Investments as director of investment communications within SEI's Investment Management Unit.

Jon is also the founder of the Cheap Stocks Web site, a site dedicated to deep-value investing. He has an undergraduate degree from Grove City College and an MBA from Rider University, where he has also served on the adjunct faculty; he is also a CFA charter holder.

2 of 2

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
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!
ELY $9.89 0.00%
JAKK $6.77 1.20%
AAPL $132.65 1.82%
FB $81.91 0.47%
GOOG $555.37 -1.71%


DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs