Acushnet Holdings is now a real live stock, trading shares daily on the New York Stock Exchange.
You might recall we ran this one past all of you last week before it went public.
Didn’t like it, especially at the number that was being thrown around out there by the lads at J.P. Morgan, Morgan Stanley, UBS and Nomura. It was supposed to go at between $21 and $24 a share but once again, the boys on Wall Street over-promised and under-delivered to the filthy-rich South Koreans who overpaid for the brand that includes Titleist and FootJoy.
This offering was supposed to raise in the neighborhood of $435 million for the fellas over in South Korea but alas, when trading finally began, it was priced at $17 a share.
That’s softer than a wet fairway or one of the covers on those balata Titleists from the ’70s.
The stock is traded under the symbol GOLF — easy enough to remember.
High’s for the stock were $18.08, that a big whoopee!
Lows have been at $16.90. Yuck.
What you will want to watch for is a range on this one. When we get a 1,500-point correction in this market and those are easy to come by and if this stock were to dip around $14 or $15, yeah, then maybe it’s worth picking up a few shares, maybe. Would like it even better at $12.
It’s trading around 18-times earnings, not out of the ordinary.
All you are doing with this stock is betting on the future of this company and the future interest that Joe Q. Golfing Public may have in buying high-priced golf equipment and apparel.
This will bill itself as a “growth” stock because it pays no dividends and will not any time in the near future.
You are betting on the growth of golf and the growth in sales of golf equipment.
You might have more fun betting “red or black” in Las Vegas.
