Date: 9 March 2009
Price: $5.81
P/E: 5.59
FP/E: 6.6
P/B: 0.6
Yield: 4.8%
Debt/Eq: 0
Introduction
The ratios look pretty good. It's cheap based on earnings and book value. Yield is fairly good, and there's no debt.
Company Description
Callaway makes and sells various golfing equipment - clubs, balls, clothing etc - and have a number of well known brands.
Past 10 years
The results look patchy. There's steady sales growth over the whole period. The past 4 years have seen good earnings growth, but it seems that this is mostly because they hit a bad patch around 2004/05 which they have gradually recovered from... and have now returned to the levels they saw in the early years of the millennium. Cash flow is overall positive, but varies from year to year. The book value has been fairly static over the last 10 years - again moving up and down a bit. They seem to have been consistent with their dividend payouts, which is good.
The company has historically been valued on a high multiple of its earnings - with a P/E above 20 for much of the time - so that's encouraging given the current P/E.
Pros
The business is simple. Current trend is for increased earnings. Valuation is cheap. No debt. Has been highly valued in the past - currently at lowest price of last 10 years.
Cons
The financial history isn't giving me a warm fuzzy feeling. The balance sheet is sound, but I don't get the feeling that the company is growing in value over time. Having said that, if it stagnates, but continues to pay out 4.8% in dividends then that's a lot better than money in the bank right now.
Conclusion
Tentative yes? I'd buy these as part of my portfolio, but they'd probably get a relatively small chunk of money.
Showing posts with label ELY. Show all posts
Showing posts with label ELY. Show all posts
Monday, 9 March 2009
Saturday, 7 March 2009
7 March 2009, Dow 6627, FTSE 3530 - screening
As I start looking to invest again, I'm a little overwhelmed by the number of really cheap stocks available at this time - but also excited.
In this post I'm going to jot down a few notes on the stocks I've found - simply as a to-do list of stocks to investigate. This is based on a list I got from the MSN Deluxe stock screener (see previous post).
Screen
Roughly: FP/E < 10, Yld > 4%, Debt/Equity < 20%, P/B < 1.
I'm ignoring financial stocks for now, as these are something of a special case.
Stocks
SAY - Satyam Computer Services - Indian based consultancy.
FPE = 1, P/B = 0.28
Price has crashed in the last couple of months. A brief skim of the news suggests they're raising more money, and that there's some sort of fraud/legal investigation ongoing. May still be a bargain, but clearly there are reasons for the ridiculous price.
PDS - Precision Drilling Trust - Oil and Gas equipment
FPE = 2.3, Yield > 17%
Latest news suggests that my debt stats are incorrect, as they're trying and failing to issue debt to raise more money - perhaps to finance a recent acquisition. Again - doesn't look like a conservative pick.
ERF - Enerplus Resources - another oil and gas exploration
FPE = 3.5 (per MSN - more like 8 in reality), yield 12%
Nothing untoward here, other than typical economic woes due to falling oil and gas prices. Worth further investigation.
PAC - Pacific Airport ADR - own airports and other properties in Mexico
FPE = 6.9, P/B = 0.49. No debt.
No disasters here. Worth further investigation.
ELY - Callaway Golf Co - Makes and sells golf clubs and other accessories
FPE = 8.6. Generally cheap, but nothing spectacular.
Worth further investigation - simple business.
WES - Western Gas Partners - gas pipelines, processes and transports gas in USA.
FPE = 9. P/B = 0.5 Yield = 9.3%
Worth further investigation - has long term contracts, so may not be hit by falling gas prices particularly.
ANF - Abercrombie and Fitch - clothing retailer
Just qualified under my filter. Not particularly cheap. I don't like them because they're trendy and I'm not! :-) Maybe investigate.
RDS.A - Royal Dutch & Shell: A shares - gas again
Huge company, that I've owned (profitably) before (which is irrelevant). P/B is slightly over 1, but P/E is 6, and yield is 7.5%. Worth looking at - obviously need to figure out what the A shares are.
SNY - French pharmaceutical company
Generally cheap - FP/E of 7.
No crisis. Worth investigating.
EBF - Ennis, Inc - sells business forms, and T-shirts... ?!
Smaller than other companies. FP/E 5.4, Yield 8.3%.
Worth investigating.
For further investigation:
ERF, PAC, ELY, WES, RDS.A, EBF, SNY, ANF
In this post I'm going to jot down a few notes on the stocks I've found - simply as a to-do list of stocks to investigate. This is based on a list I got from the MSN Deluxe stock screener (see previous post).
Screen
Roughly: FP/E < 10, Yld > 4%, Debt/Equity < 20%, P/B < 1.
I'm ignoring financial stocks for now, as these are something of a special case.
Stocks
SAY - Satyam Computer Services - Indian based consultancy.
FPE = 1, P/B = 0.28
Price has crashed in the last couple of months. A brief skim of the news suggests they're raising more money, and that there's some sort of fraud/legal investigation ongoing. May still be a bargain, but clearly there are reasons for the ridiculous price.
PDS - Precision Drilling Trust - Oil and Gas equipment
FPE = 2.3, Yield > 17%
Latest news suggests that my debt stats are incorrect, as they're trying and failing to issue debt to raise more money - perhaps to finance a recent acquisition. Again - doesn't look like a conservative pick.
ERF - Enerplus Resources - another oil and gas exploration
FPE = 3.5 (per MSN - more like 8 in reality), yield 12%
Nothing untoward here, other than typical economic woes due to falling oil and gas prices. Worth further investigation.
PAC - Pacific Airport ADR - own airports and other properties in Mexico
FPE = 6.9, P/B = 0.49. No debt.
No disasters here. Worth further investigation.
ELY - Callaway Golf Co - Makes and sells golf clubs and other accessories
FPE = 8.6. Generally cheap, but nothing spectacular.
Worth further investigation - simple business.
WES - Western Gas Partners - gas pipelines, processes and transports gas in USA.
FPE = 9. P/B = 0.5 Yield = 9.3%
Worth further investigation - has long term contracts, so may not be hit by falling gas prices particularly.
ANF - Abercrombie and Fitch - clothing retailer
Just qualified under my filter. Not particularly cheap. I don't like them because they're trendy and I'm not! :-) Maybe investigate.
RDS.A - Royal Dutch & Shell: A shares - gas again
Huge company, that I've owned (profitably) before (which is irrelevant). P/B is slightly over 1, but P/E is 6, and yield is 7.5%. Worth looking at - obviously need to figure out what the A shares are.
SNY - French pharmaceutical company
Generally cheap - FP/E of 7.
No crisis. Worth investigating.
EBF - Ennis, Inc - sells business forms, and T-shirts... ?!
Smaller than other companies. FP/E 5.4, Yield 8.3%.
Worth investigating.
For further investigation:
ERF, PAC, ELY, WES, RDS.A, EBF, SNY, ANF
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