PBS' "Nightly Business Report" examined the golf industry,
asking "if there's still room for more growth in the sector."
"NBR's" Jeff Yastine reported on the trend to move to titanium
clubs -- something all clubmakers are doing. Roger Casl,
Publisher of Golf Shop Operations, says that higher priced clubs
may affect sales, but "what they may lack in unit sales they will
make up in dollar sales." As for the industry, Yastine said
analysts expect "more strong growth, but the continuing use of
high technology in golf clubs means higher research and
development costs." Yastine notes that there are "more
competitors out there ... looking to copy whatever proves
popular" (PBS, 1/29).
HOT METAL, HOT PRICES: In the current GOLFWEEK, Steve Pike
examines titanium, the "hottest metal in the golf-club industry."
Pike notes that capitalizing on titanium "is an expensive
proposition, one that, in the long run, perhaps only a few
companies can afford," as processing the metal "is extremely
costly" (GOLFWEEK, 1/26 issue).
COBRA BUYOUT A "SIGNAL": Analysts also say the ongoing
buyout of Cobra by American Brands "is a signal of more
consolidation to come with stories of explosive growth and
earnings -- and stock prices -- harder to come by." Eric
Elliott, analyst at Barber & Bronson: "When a acquisition like
that takes place, it's an indication that the industry is
becoming more predictable, the growth pattern is more trackable -
- so that means the real jumps in process have already happened"
("NBR," PBS, 1/29).
NICK, NIKE SET A PRICE: Nick Price has signed a four-year
deal with Nike as that company attempts to increase "PGA Tour
visibility" (GOLFWORLD, 1/26 issue).
KNICKERS NEVER GO OUT OF STYLE: Payne Stewart introduced a
new apparel line at the PGA Merchandise show. The line features
golf wear, including caps and socks. The line features subdued
tones (Jerry Potter, USA TODAY, 1/30).
