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).
