Greenbrier Formally Unveils New Course Plans Travelers Championship Gets Record Crowds Travelers Goes Extra Mile For PGA Tour Event USGA Tailors U.S. Open Merch To Locals FedEx Renews PGA Tour Event Deal CBS' Peter Kostis Dishes On State Of Golf Wells Fargo Field Strong Despite Date Move CareerBuilder To Title Sponsor Palm Springs Stop The Players Sees Ratings Increase Players Championship Doesn't Want Title Sponsor
SBD/8/Sponsorships Advertising Marketing
THE PROS AND CONS OF INVESTING IN COBRA GOLF
Published September 8, 1995
Cobra Golf is featured in USA TODAY's "Company Spotlight." Cobra is the second largest maker of premium oversized golf clubs in the U.S. and has "enjoyed superb growth," writes David Craig. Last year, the company's net income jumped 198% on a 121% increase in revenue, and in '95 net income and revenue are expected to jump 53%. In an "industry where celebrity endorsement carries much weight," Cobra has Greg Norman, who sits on Cobra's board and owns 700,000 shares and nearly 4% of the company. Norman's stake is worth around $23M. Cobra "frequently has been rumored to be a prime take-over candidate of American Brands, which owns the Titleist and Foot-Joy product lines," but neither party would comment on such speculation. Some stock analysts believe that without a takeover, the "Cobra story isn't so compelling." Their stock has already jumped 63% from its '95 low in late April, and "even bullish analysts admit Cobra simply can't keep growing at such a torrid rate." Robert Marvin, stock analyst at Seidler Cos., believes the company "could be an uneventful investment, at least until it launches a line of titanium golf clubs at the January PGA golf products show" (USA TODAY, 9/8). SOMEBODY STOP ME: Cobra filed four new lawsuits in Federal Court and received temporary restraining orders against all defendants for manufacturing and distributing knock-off copies of their oversized clubs (Cobra).