Would you like to be able to invest in Tiger Woods? If so, I’ve got a company that you might be interested in taking a look at.
If you watched the Masters last April, you were likely captivated along with the rest of the country. Tiger-Tiger Woods, y’all! The man that most had written off (including myself) got his swag back and put golf on his back by dominating the Masters!
Truth be told, the game of golf needed this pick-me-up with Tiger winning the championship. Golf has slowly lost viewership and ratings over the last few years, with the game becoming less and less popular for the younger generation.
However, as Tiger returns, so too does the sport. The man can single handily make golf cool and popular again. If he continues to compete and win at a high level, the money and ratings will come pouring in.
A handful of stocks could benefit from Tigers success, with Nike, of course, being the first that comes to mind. But with Nike, the ship is so huge that swinging the pendulum and moving the stock in a meaningful way will be tough to do.
I have a much smaller stock in mind. One that has a market cap under two billion, that’s been around for 35 years, and that pays a small dividend. Are you interested yet?
I give to you ELY, or the Calloway Golf Company, the world’s largest manufacturer of golf clubs! In my opinion, these guys are a real hidden gem, or a diamond in the "rough". Because the company is so small, there is plenty of room for the upside.
What about the downside, you ask? Well, like I said, the company has been around for some 30 years. My guess is that the athletic apparel and golf club maker will be around for many years to come. It has established itself in the golf world and is a very well-respected brand.
The company was first brought to my attention a year ago. That’s when I began seeing a certain logo at the poker tables. The logo was through a brand called Travis Mathews. Being the stock degenerate that I am, I needed to know more about this trendy logo that was being worn by my opponents at the table.
Guess who owns the Travis Mathews brand? Yup, you guessed it, Calloway Golf! After looking into the company’s solid financial numbers and seeing that it has such a small market cap, it was a no-brainer, I had to own the stock! If the Travis Mathews apparel brand takes off in any way, it will only add to the company’s bottom line.
Here is what I love aboutELY:
1. Small capitalization and room for potential big upside
2. Well established and likely doesn’t have a big downside risk
3. Can benefit from the success of Tiger Woods
4. Pays a small dividend
5. Owns the Travis Mathews brand
6. World largest golf club manufacturer.
So there you have it. This company is a hidden gem that might be worth taking a look at. Hopefully, Tiger woods will continue to win and bring more viewers to the game of golf. That would likely benefit the Calloway Golf Company and add to its bottom line!
Remember, all opinions are mine. I’m not a financial advisor. Investing in stocks involves the risk of financial loss. I always recommend keeping things fun and low stress. In my opinion, that is the best recipe for beating the markets and making money. However, always speak with a professional financial advisor before investing.
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