Daily Pulse

Web Street Golf Daily Pulse

VOLUME 1, NUMBER 217

Friday, November 5, 2010

ANY IDEA WHO SAID THIS? “ Golf needs more uniqueness ... and fun  - especially now in this environment.”

ON THIS DAY: In 2000, Tiger Woods finished second at THE TOUR Championship and became the first to top $20 million in career earnings.

SEA OF SAMENESS: Are all golf clubs the same? At a point in time when equipment has been reduced down in many cases to a price, it can be a challenge from the consumer end to see a difference between one versus another. Consider also that every driver is built with a black finish and an argument can be made that it all blurs together after a while.

In perhaps what might be considered a sneak peak of more things to come from the company, Cobra has decided to go with a different look, but in a limited edition way. It has an all-white model of its ZL Driver available for anyone who wants to stand out from the crowd. “The Limited Edition ZL Driver is a distinct offering for our loyal customers,” says Brian Zender, Senior Vice President and General Manager of COBRA-PUMA GOLF. “The ZL Driver is regarded as one of the highest performing drivers in the market. The Limited Edition ZL demonstrates the unique attitude of the Cobra brand, and our focus on superior performance and innovative design.”

The alternative look certainly makes a statement, but Ian Poulter is perhaps the only one who can make it stand out even more. The newest look in a driver made its Tour debut this week, as COBRA GOLF staffer Ian Poulter – who plays the ZL Driver on the PGA Tour – teed up the all-white ZL Driver at the World Golf Championships-HSBC Champions event in Shanghai. “It’s been a year since my first win with my Cobra ZL Driver, and what a better way to celebrate it than with this Limited Edition model,” said Poulter. “I like the visual of the new white ZL, it’s really very cool. It’s unique and different than any driver I’ve seen – plus its performance is great, too. It has the identical performance of the driver that I’ve won with twice.”

Only 500 of the Limited Edition ZL Drivers are available globally, 300 of them are earmarked for the US. Each model is individually marked with a production serial number. Cobra has plans to given away #1 and #500 of the series through its social media sites for those of you who have trouble finding or landing one. Without 500 in circulation, authorized accounts will likely have difficulty getting more than one or two of the drivers to sell.

The Limited Edition ZL Driver is paired with a high performance Fujikura Motore Speeder shaft, which can retail for $400 on its own. This exclusive product clearly offers Tour-caliber performance and an upgrade to the ZL driver that Cobra originally launched. The Cobra Limited Edition ZL Driver (MSRP $625) is available in lofts of 9.5° and 10.5°, in men’s right-handed with Fujikura Motore Speeder VC 6.0 stiff flex shaft. It will be available Dec. 15, but can be pre-ordered through participating retailers starting Nov. 15.

HIT AND GIGGLE: Golf Australia decided a year ago to overhaul the Australian golf handicapping system in favor of the USGA handicapping system. Among the many changes to be implemented included 'social rounds' for handicapping purposes, not just club competition rounds of golf. In the words of a memo issued by Golf Australia, the response was "overwhelmingly negative" and they decided, for the moment, to pull the pin on the new changes and reassess their options. READ MORE>>>

A HELPING HAND: True Temper Sports reported that 24 out of 25 Nationwide Tour graduates embarking on the PGA Tour in 2011, earned the trip playing its shafts. “These newest graduates from the Nationwide Tour are the great players of tomorrow, and we’re proud that True Temper shafts are a trusted part of their game,” said Chad Hall, director of global tour operations for True Temper Sports. “Dynamic Gold and Project X shafts have established historic legacies linked to the greatest players in the game. What is exciting about this 2010 class is they play Dynamic Gold and Project X as well as some of our newer products, including DG Spinner and Project X graphite, and are already seeing winning results.”

I WOULD RATHER BE DRIVING A: Hyundai is now the title sponsor of PGA Tour season opening limited field event in Kapalua. Once upon a time Mercedes sponsored the winners’ only tournament. As part of the agreement and starting with the 2011 tournament, the event is being renamed the Hyundai Tournament of Champions.

"Hyundai's title sponsorship of the PGA Tour's traditional season-opening tournament aligns our brand with world-class athletes who mirror our own competitive drive," said John Krafcik, president and CEO, Hyundai Motor America. "This sponsorship ensures that every champion at the tournament will arrive in luxury, and the fans that follow the sport will be exposed to an all-new interpretation of intelligent luxury, the Hyundai Equus." The car company has agreed to be the title sponsor for the next three years and it’s believed the partnership is breathing some life into the event for the sake of its future. READ MORE>>>

WEB GEMS:

ONE HIT WONDERS: Golfers are known to try just about anything. Once it invades your soul, everything is fair game as the never-ending pursuit towards improvement can make a grown man do strange things sometimes. Golf is known for its difficulty, which either drives people away from playing it or turns them into golf junkies. For those who want to turn it up a notch this should hit the spot. READ MORE>>>

FOLLOW THE MONEY: Aaron Baddeley is set to pull out of next week's Australian Masters to play for a million-dollar challenge in Florida. His coach confirmed Baddeley’s decision, a blow to tournament organizers. It means both of the young lions of the past decade of Australian golf will be missing from Victoria next week, with Adam Scott preferring to play the $6m Singapore Open READ MORE>>>

#1 IS 1 BACK: Italy's Francesco Molinari has a one-shot lead over new world number one Lee Westwood at the halfway stage of the HSBC Champions on Friday, shooting a two-under-par 70 in Shanghai. But a cast of characters is lurking to overtake him on the weekend. READ MORE>>>

LAST BUT NOT LEAST: If you like what you have seen with the Daily Pulse, help spread the word. Pass along your copy. Its free and all anyone needs to do is send an email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it asking to be put on the distribution list. It is a complete opt in or out system.

BEFORE WE GO: If you feel like you may have missed something from a back issue feel free to check out the archive section of the Daily Pulse, which includes an easy to use word search!

ANSWER: Todd Colburn, Senior Director of Marketing, COBRA-PUMA Golf talking about the limited edition, all-white ZL driver offer

THE INFORMATION CONTAINED IS BELIEVED TO BE RELIABLE, BUT IT IS NOT GUARANTEED. THE OPINION EXPRESSED IS THAT OF TERRY O 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

Web Street Golf Daily Pulse

VOLUME 1, NUMBER 216

Thursday, November 4, 2010

ANY IDEA WHO SAID THIS? “ I think in everybody's head, Tiger is still the best player in the world. Of course, he's not playing so good at the moment but he has some reasons for that, obviously. But everybody hopes he will come back to the way he was before."

ON THIS DAY: In 1973, Ben Crenshaw won the San Antonio-Texas Open in his first professional start.

ANYONE SEE THIS COMING? The economy has become a focal point for many ever since it unraveled in late 2008. It also becomes a convenient excuse to explain why operating results haven’t been up to par in some instances. A week ago Callaway Golf revealed third quarter sales slipped by 8%. George Fellows, Callaway’s CEO stated, “Overall consumer spending on golf equipment in the United States is down approximately 3% compared to 2009, which was down approximately 14% compared to 2008.”

But the economy hasn’t been a hazard for all golf companies. The Acushnet Company (Titliest and FootJoy) revenues were off 4.8% from a year ago but when you back out Cobra Golf’s sales (included in the 2009 comparison numbers), which it sold earlier this year, sales were actually up 3%. Last week, we also learned that Wilson Golf’s third quarter sales improved by 9% from 2009, while Golfsmith reported its retail sales were up 3%. This week more information came in that implies the current economic conditions haven’t been as difficult as some have portrayed.

TaylorMade adidas Golf reported third quarter revenues of EUR 221 million, a jump of EUR 37 million or 20% from a year ago when it recorded EUR 184 million. It’s worth pointing out that TMaG’s third quarter surpassed 2008’s (EUR 197 million), which was when the economy went into the tank. According to its parent company, adidas, currency translation positively affected revenues in euro terms. It stated TMaG’s sales increased by 4% on a currency neutral basis for the quarter.

Year-to-date, through nine months, TMaG’s revenues (EUR 713 million) are already running EUR 80 million ahead of 2009’s level of EUR 633 million. According to adidas, the growth was driven by revenues increases in irons, balls and metal woods. TMaG’s operating results are reported through adidas’ “other business” category, which incorporates the Reebok-CCM hockey and Rockport brands. It doesn’t provide a breakdown by business of the operating income contributions but did state the segment generated EUR 307 million in operating profit.

Organic growth in golf equipment sales has been virtually impossible to achieve in recent years in part due to discounting practices. TaylorMade’s double-digit growth in the quarter implies it was able to accomplish this by gaining market share at the expense of other companies in its peer group to account for the revenue growth it experienced.

FROM WEAK TO STRONG: The third quarter of the calendar year is a bit of a cross roads for the equipment industry. Companies are monitoring current products already in the retail system, while at the same time working behind the scenes on the next wave yet to make their debut. Unless a company decides to spill the beans in advance, the buying public doesn’t know what is coming next year.

Third quarter operating results thus far have painted a mixed picture as some companies have been able to handle the obstacles in front of them while others haven’t. For the equipment companies the results are a picture from the rear view mirror, while component (shafts and grips for example) businesses offers a glimpse through the windshield or windscreen as they say in the UK.

To date the equipment business has attempted to defend its turf through the introduction of new products essentially with retail prices held in check. It doesn’t appear that the velocity of new product introductions or frequency is going to skip a beat in 2011 as shaft manufacturer; Aldila (ALDA: PK) reported its third quarter operating results.

Net sales came in at $12.2 million, up from $10.7 million a year ago. The bottom line showed a net profit of $1.3 million compared to 2009 when Aldila lost $571,000 in its third quarter. "We continued to experience relatively strong sales during our third quarter, historically our weakest quarter,” said Pete Mathewson, Aldila’s Chairman and CEO. He said shaft sales increased by 6%, unit sales increased by 15% but average selling price declined by 8% during the third quarter.

"The golf industry and golf equipment sales in particular have suffered through several years of tough conditions with declines in sales in the key categories of woods and irons during 2008, 2009 and year to date 2010. Retail sales numbers through August of 2010 show metal wood units off 4% and dollars off 7%, with the biggest decline in drivers with a decline of 11% in units and dollars are off 16%. In the iron category unit sales are down 2% and dollars are down 1%,” Mathewson stated. “This is not surprising because the macro economic conditions have been severely stressed since the second half of 2008 and we have yet to emerge with a full recovery.”

For the nine months ended September 30, 2010, Aldila’s net sales are $42.7 million with a net income of $2.7 million as compared to net sales of $35.0 million and net loss of $1.2 million for the comparable period of 2009. “For the nine months ended September 30, 2010, consolidated sales are up 22% as compared to 2009, with Composite Product sales up 13% and Composite Materials up 81%. Golf shaft sales are up 13% on an increase in units of 22% and a decline in average selling prices of 7%," the CEO added. Mathewson said his company’s order backlog was $6.1 million as of September 30th, which is down by 39% compared to $10.1 million as of September 30, 2009. “Our backlog has been affected by the change in our OEM and their assemblers' ordering patterns,” he explained. “They have shortened their lead times on ordering new product reflecting continued emphasis on tight inventory management.”

WELL RAISE MY RENT: Harding Park has become part of the TPC Network and will be operated by PGA TOUR Golf Course Properties for no management fee. Through terms of the 9½-year agreement, the facility will be known as TPC Harding Park. The PGA TOUR pledged to donate any incentive bonuses received for successfully operating the historic course to The First Tee of San Francisco, a chapter of The First Tee (www.thefirsttee.org) that is based at the Fleming 9 course, as well as to other local charities.

“We are excited to provide local residents, tournament fans and the community with an outstanding PGA TOUR experience, while preserving and perpetuating the rich history and traditions of this treasured City of San Francisco landmark,” David Pillsbury, president of PGA TOUR Golf Course Properties and executive vice president for the PGA Tour’s Championship Management division, said. “It’s important to note that this is a true non-profit arrangement that will benefit The First Tee of San Francisco and the city. We look forward to impacting lives and enhancing communities through our support of local grass roots charitable organizations and causes throughout the Bay Area.”

WEB GEMS:

AN EYE ON THE FUTURE: Lee Westwood is not prepared to risk his long-term future over the next month simply in an effort to retain his world No 1 status. The Englishman has scrapped plans to play in next week's Singapore Open and will consider whether to play in next month's Nedbank Golf Challenge in South Africa. READ MORE>>>

WHAT’S NEW? Louis Oosthuizen hasn't been doing much of a victory lap since winning the British Open at St. Andrews. For about the last two months, he has barely been able to walk. READ MORE>>>

THE ROAD TO RECOVERY: Tom Watson noted astutely at the British Open that what most ailed Woods was that golf was a sport that needed to be played in silence and that there was too much noise around Woods. Days after being deposed as world No. 1, Woods opened the HSBC Champions in Shanghai overnight with an impressive four-under par round of 68. READ MORE>>>

LAST BUT NOT LEAST: If you like what you have seen with the Daily Pulse, help spread the word. Pass along your copy. Its free and all anyone needs to do is send an email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it asking to be put on the distribution list. It is a complete opt in or out system.

BEFORE WE GO: If you feel like you may have missed something from a back issue feel free to check out the archive section of the Daily Pulse, which includes an easy to use word search!

ANSWER: Martin Kaymer

THE INFORMATION CONTAINED IS BELIEVED TO BE RELIABLE, BUT IT IS NOT GUARANTEED. THE OPINION EXPRESSED IS THAT OF TERRY O 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