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Home Daily Golf Briefs Daily Pulse for November 1, 2017

 

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Web Street Golf Daily Pulse
VOLUME 7, NUMBER 214                                                       
Wednesday, November 1, 2017

ANY IDEA WHO SAID THIS? “The game would be in a better place if he came back and was competitive. You have to realize, though, that Tiger is going to be 42 in December. I think that (getting back to golf's elite) is going to be a stretch for right now and I think we're going to have to wait to see how this event plays out and how many more events he decides to play. I know all of us in the golf industry would love that to happen and if that was a genuine possibility then that would be wonderful. The players at the top of the world are young and good and are in the game because of him, so they would love to see him come back. I hope that he does, but I'm not as optimistic as I wish I was.”

BRAIN TEASER: Rod Pampling is looking to win back-to-back at the Shriners Hospitals for Children Open. Only one player to managed to do this in the history of the event. Can you name him?

HOW’S BIZ? Under Armour, Inc. announced financial results for the third quarter ended September 30, 2017. Revenue was down 5 percent to $1.4 billion. uaApparel revenue decreased 8 percent to $939 million, as growth in golf and sportstyle was more than offset by declines in outdoor, women's training and youth. Accessories revenue increased 1 percent to $123 million led by golf and men's training, tempered by a decline in outdoor. Net income was $54 million in the third quarter.

"While our international business continues to deliver against our ambition of building a global brand, operational challenges and lower demand in North America resulted in third quarter revenue that was below our expectations," said Under Armour Chairman and CEO Kevin Plank. "Based on these issues in our largest market, we believe it is prudent to reduce our sales and earnings outlook for the remainder of 2017.

"Against this difficult backdrop, our management team is working aggressively to evolve our strategy and level of execution to proactively address these challenges. We understand that success in our next chapter requires managing with focused financial discipline and driving excellence into every area of our business while we amplify innovation, deliver fresh product and connect even more deeply with our consumers."

BUY, SELL OR HOLD? Insider activity in a company’s stock is often considered a harbinger of what is to yet come. Insiders are the first to be aware of the general state of business and therefore investors react according should it be reported they are buying or selling company stock. That said, it’s worth noting insiders rarely get a fair shake after a sale has been reported. Speculation often is injected when reading between the lines on the motive behind the transaction. Do they know something about the business that will impact the future stock price? Or is it a simple case of financial planning? Barney Adams sold some of his stock on his namesake company’s at the initial public offering. It turned out to be the right move for his personal financial health. With that as a disclaimer, Callaway Golf, President and CEO, Chip Brewer has sold 131,884 shares of the company’s stock. The shares were sold back on August 4th at an average price of $13.31, for a total value of $1,755,376.04. Following the completion of the sale, he still directly owns 291,399 shares, valued at more than $3.8 million. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed at the SEC website.

Also, SVP Brian Lynch sold 6,277 shares of the firm’s stock in a more recent transaction on October 26th. The stock was sold at an average price of $15.42, for a total value of $96,791.34. Following the completion of the sale, Lynch now owns 46,184 shares of the Callaway stock, valued at approximately $712,157.28. The disclosure for this sale can be found here. Insiders sold 295,893 shares of stock valued at $4,016,299 over the last 90 days. Corporate insiders own 2.59% of the Callaway’s stock.

On October 25th, Callaway Golf reported third-quarter net income of $3.1 million, which beat Wall Street expectations.

BLOW BACK: Hurricane Irma was created on August 30th and it packed a powerful punch. It came on the heels of Harvey, which was the first major hurricane to make landfall in the United States since 2005. According to Golf Datatech research, rounds played in Houston in September dropped 28.1%. The impact of Harvey has much to do with it can be safely said. Meanwhile, Irma delivered a 20.5% drop in Tampa and Orlando 20.1% in September. But Texas fared much better than Florida during the month, as the Lone Star state saw overall rounds played off only 3.2%. The Sunshine State wasn’t as fortunate as rounds played on Naples/Ft Myers was down 42.8% from the previous year, Sarasota -23.4%, Jacksonville/Daytona -19/1%, Miami/Ft Lauderdale -12%. Overall, Florida reported a decline in rounds played in September by 18.7%.

Despite these double-digit declines, year-to-date Florida rounds are only off by 0.4%, according to Golf Datatech. Palm Beach, which was down 13.5% in September, is still 13.9% ahead of 2016’s pace. Houston’s big fall off in September still leaves the home of the Astros, down 2.5% for the year. Not ideal but many would have expected it to be worse considering how September was.

Looking at the United States, rounds played in September were up 2.1%, Datatech reported. Year-to-date, however sees a decline of 2%. Public access play was up 2.2% in September, but down 2.8% for the first nine months of 2017. Private play was higher by 1.5% in September and 1%, year-to-date.

WEB GEMS:

WILL THIS TIME BE DIFFERENT? Tiger Woods still has more majors than comebacks. But the gap is narrowing. This will be the 10th time that Woods has returned from an unscheduled break of two months or more, eight of them since winning his 14th major at Torrey Pines in the 2008 U.S. Open. And it will be the fifth time he returns since his last victory in August 2013 at the Bridgestone Invitational. This will be the second straight year that Woods makes a celebrated comeback from back surgery in the Bahamas.

He had gone 15 months and two microdiscectomy surgeries when he played the Hero World Challenge last year and finished 15th against a field of 18 (Justin Rose withdrew after the opening round with back pain). Woods made 24 birdies that week but finished at 4-under par and was 14 shots behind the winner, Hideki Matsuyama. He was held to a different standard. He was measured by the freedom of his swing more than his score in relation to the field. READ MORE>>>

ANSWERS: “The game would be in a better place if he came back and was competitive. You have to realize, though, that Tiger is going to be 42 in December. I think that (getting back to golf's elite) is going to be a stretch for right now and I think we're going to have to wait to see how this event plays out and how many more events he decides to play. I know all of us in the golf industry would love that to happen and if that was a genuine possibility then that would be wonderful. The players at the top of the world are young and good and are in the game because of him, so they would love to see him come back. I hope that he does, but I'm not as optimistic as I wish I was.”--Butch Harmon.

Rod Pampling is seeking to join Jim Furyk (1998, 1999) as the only players to win back-to-back at the Shriners Hospitals for Children Open.

THE INFORMATION CONTAINED IS BELIEVED TO BE RELIABLE, BUT IT IS NOT GUARANTEED. THE OPINION EXPRESSED IS THAT OF TERRY MCANDREW AND SHOULD NOT BE CONSIDERED A SOLICITATION TO BUY OR SELL SECURITIES IN ANY OF THE COMPANIES DISCUSSED WITHIN THIS NEWSLETTER. CONTENTS OF THIS NEWSLETTER MAY NOT BE REPRINTED OR REBROADCAST WITHOUT THE EXPRESSED WRITTEN CONSENT OF TMAC GOLF