Tom Watson uses Adams Clubs and has been the marketing face for them for 10 years now. If you look closely at the price action the stock made a bottom into the 2009 July British Open at Turnberry when he painfully lost to Stewart Cink. Now with the Ryder Cup upon us from Wales it may be time to look again at Sports Stocks.
Adams Golf (NASDAQ:ADGF) had an increase in volume and awareness on the back of Watson’s loss. In retrospect the British Open loss was small compared to other events and if you ask Tom, it had nothing to do with his clubs… he will tell you that the toughest yardage on the Golf Course is the 6 inches between your ears.
I met Tom a few times because I was friend of Bruce Edwards. Bruce would stay at my house for PGA Tournaments in Chicago and we would go to White Sox and Cub games with friends so he could get away from Golf and relax. My kids would sit on his lap in the living room and taunt him with the remote control…those were good days.
Bruce was caddying for Greg Norman at the time and was contemplating leaving the Shark to go back to Watson after Norman bitched him out for a wrong yardage one too many times. I recall Tom and Bruce sitting at a corner table in a restaurant working out a plan for Bruce to work with Watson again. I was sad when Bruce Edwards died…he was a great man and I miss him. But back to Adams.
Club making and marketing in this down economic cycle is tricky. The Club I belong to has seen an obvious decline in membership and family’s leave these Private Clubs and do more things at home; it’s called “cabin fever spending”. It makes more sense that people spend their money at Lowes and Home Depot than on Country Clubs and Golf Clubs.
Adams still trades thin and needs a good marketing campaign for the stock itself… but 2010 probably is the most important year since inception.
Like the rest of the stock market …Adams has had a steep decline (70%) in MarketCap since its high on Feb 11th 2008 ($ 10.12).
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