Titleist Prepares to register for IPO

[boogielicious]

http://www.geoffshackelford.com/homepage/2016/5/25/titleist-acushnet-prepares-to-register-for-ipo.html

Interesting.

Quote

Reuters' Lauren Hirsch with the not-totally-surprising news that Acushnet, makers of Titleist and Foot-Joys, is preparing to register for an initial public offering as early as June, with a potential valuation at more than $2 billion.

Hirsch writes:

The IPO would come five years after consumer products conglomerate Fortune Brands sold Acushnet, under pressure from activist investor William Ackman, to South Korean sports apparel company Fila Korea Ltd (081660.KS) and Mirae Asset Private Equity for $1.23 billion. 

Acushnet is now working with investment banks that include Morgan Stanley (MS.N), JPMorgan Chase & Co (JPM.N), UBS Group AG (UBSG.S) and Nomura Holdings Inc (8604.T) on the IPO, the sources said on Wednesday.

There was also this buried lede...

Golf balls are cheaper and more easily lost than golf equipment, making them more frequently replaced. The more rounds of golf people play, the more balls they will buy.

Combined with the Taylor Made sale, this has the potential to drastically reshape the industry as well as those who rely on the marketing dollars of the two companies. Stay tuned...

 

[iacas]

Interesting. Titleist makes a lot of money from golf balls.

[bkuehn1952]

I am not going to line up to get shares from the IPO.  My impression is that golf is not expanding; at best the sport is static as far as people playing & purchasing "stuff".  My money is going into the rotary dial phone business; an industry poised for a rebound!!!  

[boogielicious]

11 hours ago, bkuehn1952 said:

I am not going to line up to get shares from the IPO.  My impression is that golf is not expanding; at best the sport is static as far as people playing & purchasing "stuff".  My money is going into the rotary dial phone business; an industry poised for a rebound!!!  

I think I might buy a couple shares just to say I have them. I'm not much of a stock market or gambling guy, so I wouldn't do it banking on a profit.

[newtogolf]

IPO's and stock prices are not so much tied to the  industry but the quality of the company's management to run the business efficiently, project revenue, earnings and deliver on them consistently.  

Titleist will head into this IPO with the industry having already peaked and trending down.  I have participated in some recent IPO's, Box, Shake Shack, ETSY, GOPRO and if you get in early you can make some quick money on a day or swing trade.  Usually after all the excitement of the IPO the price drops and levels out which makes it a good time to hold for long term investment.  

With regards to Titleist, the key will be their prospectus and how it's received by investment companies.  Golf is still a large industry.  The only major golf manufacturer that offers public stock is Callaway, here is a five year chart which shows they have held their value for the last few years.  

[jamo]

1 hour ago, boogielicious said:

I think I might buy a couple shares just to say I have them. I'm not much of a stock market or gambling guy, so I wouldn't do it banking on a profit.

I was just thinking the same thing.

 

[xcott]

Callaway has a P/E of 60? That's a lot of growth built into the current price.