Investors who make bad choices are often referred to as “the bag-holders.”
Yeah, they are left “holding the bag” after dumping money into a bad stock.
So now the filthy-rich South Koreans who overpaid for Acushnet in 2015 are out to recoup some of their money.
And who do they want to collect it from?
Why you of course, or anyone who thinks it’s a really good idea to own a piece of a golf equipment and apparel company that has the FootJoy and Titleist brands.
Okay, if this is such a great company, a great money maker, a great business opportunity, then why, pray tell are they looking to sell gobs of shares to the unsuspecting man on the street?
Why? Because they can.
So now there will be 19.3 million shares there for you to scoop up, they’ll be priced at somewhere between $21 and $24 per share.
Hmmmmmm.
Yes, that’s Fila Kora Ltd. that owns Achusnet and now they want some of us hard-working American folks to hand them some of our very hard-earned money.
Wow, that makes all the sense in the world, doesn’t it?
Let’s subsidize a bunch of really rich South Koreans.
Where do we sign up?
Truth be known, this sounds like a very, very bad idea. We have some experience, first-hand in this sort of thing. Yes, your Editor-In-Chief, in an earlier life, was also a Series 7 security-license holder, fingerprints on file with the FBI, all that good stuff you need to enter the complex world of investment banking.
Investing isn’t really that tough. Best game-plan is to buy quality stuff and hold it long term. When the markets plunge, add to your positions, when the markets are up, sit there and smile. Most folks cannot do that.
Also, here’s another great idea, buy quality stocks that PAY YOU to own them — there’s this wonderful thing called dividends. The world’s most elite company, Apple, is now a dividend stock. Imagine that!
We own Apple because folks line up at those Apple stores and fall all over themselves to buy Apple’s expensive stuff.
God bless Apple!
Now we can safely and accurately report that people are not lining up at golf retailers to buy equipment.
Golf equipment is a losing proposition. Just ask the folks at Nike who are a lot smarter than we are and are highly-compensated to pull the plug on bad stuff.
If Nike is selling, do you want to be buying?
Adidas has finally figured it out as well. TaylorMade is for sale to anyone foolish enough to buy it.
Which brings us back to Acushnet.
The lads at J.P. Morgan, Morgan Stanley and UBS will be looking for bag-holders in the United States while Nomura Securities in Japan will try and convince those folks in the land of the rising sun that this is the greatest thing since graphite shafts and three-piece golf balls.
Wouldn’t you just love to hear a sales pitch on this one?
How about Charlie Sheen as Bud Fox in Wall Street?
“Good morning sir, if I may have just a few minutes of your time I would like to tell you about the incredible investment opportunity in Acushnet Holdings……”
Yeah, sure Bud Fox, Gordon Gekko might tell you that this one is a dog with fleas.
Nonetheless, the wonderful underwriting team will be out there pushing Acushnet.
It would be different if the money was actually going INTO THE COMPANY for R&D and maybe to re-up Jordan Spieth or bring Rory McIlroy back into the fold.
But no, this $435 million is going right to South Korea.
So, no thanks, we’ll pass on this one.
