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Acushnet IPO off to an underwhelming start

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Acushnet (GOLF), the umbrella company for Titliest, opened on the New York Stock Exchange on Friday at $17 per share, below the originally expected price range of $21-24.

On Friday, GOLF hovered between $16.90 and $18, ultimately closing at $17.95 on the day. The IPO was for 19.3 million shares, raising $329 million for Acushnet’s existing investors.

CNN Money compared the stock’s small percentage gains to, very fittingly, the sport of golf: “It’s like finally hitting a shot onto the green — after you’ve already plunked your ball in a water hazard a few times.”

The Boston Globe piled on, saying Acushnet “made a bogey in its debut.”

After a proverbial bogey on the first hole, Acushnet’s leadership is looking toward the future; the next 17 holes, if you will.

“I don’t get caught up in the day to day,” Acushnet CEO Wally Uihlein told the Boston Globe. “I’m looking long-term. Over time, we have a very strong track record of delivering the kind of financial results that we think make an attractive investment opportunity.”

Acushnet is owned by Fila Korea Ltd., which purchased the company from Fortune Brands in 2011. Acushnet registered $1.5 billion in sales during a 12-month period ending this past June.

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9 Comments

9 Comments

  1. JustTrying2BAwesome

    Oct 31, 2016 at 6:39 pm

    I’m buying 1 share. Karma to the golf gods praying I can make a hole in one someday. Someday…

  2. King of Carlsbad

    Oct 31, 2016 at 12:12 pm

    Acushnet does not sell a lot of golf clubs now (380 million/yr) and is unlikely to sell a lot more in the future, so it will be interesting if the Pro V1 and FJ shoes can keep this stock afloat.

  3. Large chris

    Oct 31, 2016 at 10:39 am

    I lolled at Wally Uilein reckoning he’s not caught up in the day to day. Hahahahaha he’s obviously not had to do many investor conference calls. They’ll want his numbers am and pm.
    Corporate investors won’t put up with that, I give him 3 months tops.

  4. Nolanski

    Oct 31, 2016 at 7:12 am

    Inflation is very low right now

    • Steve S

      Nov 1, 2016 at 8:42 am

      Bubba, 20%!!?? Really? Where do you live? Since I track such things with my financial programs my personal findings (in the mid west over last year) are as follows:

      1. Food we buy from the supermarket is almost even from last year (up .1%)
      2. Housing costs up about 4% (utilities, taxes, mortgage didn’t change)
      3. Gasoline for car down 15%
      4. Healthcare up about 4% (insurance premiums)

      Buying a house would be up because prices were in the toilet for so long; they would naturally be up after hitting 15 year lows.

  5. John M.P. thirty-three

    Oct 29, 2016 at 1:04 pm

    If the asset was a cash cow why would Fila shed it?
    …rough times ahead for shareholder s.

  6. Philip

    Oct 29, 2016 at 11:47 am

    Not failing at the moment, but now that they have shareholders on board the fall will slowly begin. Shareholders do not care one bit (the bigger ones at least) about the company – they care about their investment “share price” and want it to grow. In a flatlined industry with no star stepping up for likely quite a while they have two options to grow share price – increase price and decrease quality … I suspect prices are near the max now for what the larger public can afford so reducing quality will likely be next – let the tumble begin.

  7. J.R.

    Oct 29, 2016 at 10:05 am

    why would one invest in a failing company–or one that is at best on it’s way downhill instead of uphill!!

    • Steve S

      Nov 1, 2016 at 8:44 am

      Good question, J.R. If there were something available to buy that would allow you to “long term”(1 year or more) short this stock I’d buy a bunch of shorts. It’ll be $10-12 range in a year.

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Opinion & Analysis

The Wedge Guy: Is lighter always longer?

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One of the continuing trends in golf clubs – particularly drivers – is the pursuit of increasingly lighter shafts; this obsessive goal has given us the premise that the lighter the club, the faster you can swing it. And that idea is driven by the relentless pursuit of distance at all levels, and for all golfers.

But as long as he is, for example, Dustin Johnson ran away with the Masters because he was exactly that – a “master” at ball control and precision. DJ outperformed almost everyone in the field in terms of fairways and greens. That gave him more birdie putts, better looks because of his precise approach shots, and many fewer tough par saves.

But my topic today is to pose the question: “Is lighter really the key to being longer for all of us “recreational” golfers?”
Let me begin by saying that “recreational” doesn’t mean any lack of seriousness or dedication to the game. Hitting better shots and shooting lower scores is the goal for all of us who care about our golf games, right? What I mean is that we do not make our living playing the game. We do not practice incessantly. We do not spend hours at the gym every day specifically preparing our bodies to optimize our golf skills.

Today I’m going to put on my “contrarian” cap and challenge this assumption of “lighter is longer” on a couple of bases.
First, if you watch every accomplished player, you will see that the body core rotation is fast enough to “beat” the hands and clubhead to the ball. All instructors agree that the big muscles of the legs and body core are the key to power and repeatability in the golf swing. The faster you can rotate your body through impact, the more power you generate, which flows down the arms, through the hands and shaft and to the clubhead. This is a basic law of “golf swing physics”.

The simple fact is, the speed at which you can fire these big muscles is not going to be measurably impacted by removing another half ounce or less of weight from your driver. But what that removal of weight can do is to possibly allow for your hands to be faster, which would aggravate the problem I see in most mid- to high-handicap players. That problem is that their body core is not leading the swing, but rather it is following the arms and hands through impact.

Secondly, speed without precision is essentially worthless to you, and likely even counter-productive to your goal of playing better golf. Even with the big 460cc drivers, a miss of the sweet spot by just a half inch can cost you 8-12% of your optimum distance. You could never remove enough weight from the driver to increase your club speed by that amount. So, the key to consistently longer drives is to figure out how to make consistently more precise impact with the ball.

No golf adage is always true, but my experience and observation of thousands of golfers indicates to me that the fastest route to better driver distance is to get more precise with your impact and swing path, and not necessarily increasing your clubhead speed. And that may well be served by moving to a slightly heavier driver, not a lighter one.

I’ll end this by offering that this is not an experiment to conduct in a hitting bay with a launch monitor, but rather by playing a few rounds with a driver that is heavier than your current “gamer”.

Continuing with my “contrarian” outlook on many aspects of golf equipment, the typical driver “fitting” is built around an intense session on a launch monitor, where you might hit 30-40 or more drives in an hour or so. But the reality of golf is that your typical round of golf involves only 12-13 drives hit over a four-hour period, each one affected by a number of outside influences. But that’s an article for another time.

For this week, think about pulling an older, heavier driver from your closet or garage and giving it a go for a round or two and see what happens.

I would like to end today’s post by wishing you all a very Happy Thanksgiving. It’s been a helluva year for all of us, so let’s take some time this week to count our individual and collective blessings.

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Podcasts

TG2: Reviewing the first major OEM (Cobra) 3D-printed putter!

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The first major OEM with a 3D printed putter is Cobra Golf! I took the new Limited Edition King Supersport-35 putter out on the course and found it to be a great performer. Cobra partnered with HP and SIK Putters to create a 3D printed body mated to an aluminum face that features SIK’s Descending Loft technology.

 

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Opinion & Analysis

You went to play, now you want to stay: Homes near Cabot Links & Cliffs

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At some point, we’ve all had that moment during a vacation where we look around and think to ourselves, “Instead of visiting, why don’t we just move here?” It always sounds a little crazy in the moment, but really, what’s stopping you?

Like many, I have done this myself, and it leads me down a rabbit hole of golf destination real estate to places all over North America where you get world-class golf minutes from home.

So whether you’re a big spender or looking to downsize and find a cozy hideaway, these homes near Cabot Links & Cliffs have it all.

Homes near Cabot Links & Cliffs

Inverness, Nova Scotia

Steps away

$1,495,000 – 12 Mine Road Inverness MLS Number: 202011562

Location, location, location!

This is currently the most expensive house in Inverness NS, and for good reason. It’s steps away from Cabot Links and overlooks the resort. It’s over 2,600 square feet of beautiful open concept living, and with a local address, you get a discount on tee times at the course, although with its growing popularity, you aren’t guaranteed times like if you stay on the actual property.

Who wouldn’t want to wake up to this view every day? Listing: 12 Mine Road – Realtor

Just up the road

$980,000 – 30 Broad Cove Road Inverness, MLS Number: 202010717

If the first one seems a bit crazy, this next one might be right up your alley.

This 4,000 square foot home, is only minutes from Cabot Link and Cliffs and has amazing views that overlook the Gulf of St. Lawrence. It has everything you could want including a large chef’s kitchen and enough room to host friends and family.

Listing: 30 Broad Cove Road – Realtor

Just you and the ocean

$394,000 – 6 Bayberry Road, Port Hood, MLS Number: 202015994

If you like golf but want a little more separation from the Cabot golf resort, less than 20 miles down the road is Port Hood, another quiet seaside town filled with quaint shops and endless views of the ocean.

You can wake up every morning to the sounds of the ocean and the smell of sea air, and when you want to play golf at a top 50 course in the world, you just need to make a relaxing drive along the water to get there—heck, if you are so inclined, and happen to have a boat, you can go almost door to door that way too!

Listing: 6 Bayberry Road – Realtor

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