Adams Golf Inc. (ADGO)

[billythekid245]

This company is very small but growing intensely!

Their hybrid irons make up the bulk of their sales and their growth. The company is growing around 30% year over year and has a solid balance sheet. They are trading at just about 7x earnings.

However, ADGO is OTC with limited volume. This is one of the only downsides to the company. As of the time of my writing, ADGO is trading at $2.00.

Take a look at it and tell me what you all think.

[amgdriver]

I don't know- the golf equipment industry is not an easy one to be in. I come from a golf family and I wouldn't invest in a company that makes equipment. But hey, I am biased, so you probably don't want my opinion anyway!

[billythekid245]

This is true. I agree with you that the golf industry is weak, but I still like the company.

Its too hard for me to pass up a company growing at 30% trading at 7x earnings. thats just crazy!

[reef]

I think they give away a ton of their products to the Pro's and the retail side doesnt make up for it, as well.

[billythekid245]

Thats an interesting point. I heard them saying on their quarterly report conference call that they are the #1 used hybrid iron on the pro tour. Their excessive handouts must be part of their marketing strategy.

They also commented on their continuous efforts to increase their appearance and frequency in retail stores.

I think that they also need to work on their brand image. ADGO isn't a very highly regarded or prestigious golf brand, in my opinion.

Your thoughts?

[billythekid245]

Here is a recent article I found from a blogging site that I am not affiliated with:

http://www.bloggingstocks.com/2007/06/12/the-bloggingactivist-increasing-shareholder-value-at-adams-golf/

It is a much better outline of the argument I attempted to make earlier.

[billythekid245]

ADGO @ $2.15, having a nice little run this week. Could breakout from here.

[AJLightning]

Im waiting....picked up 500 @ 2.05, then 500 more @ 2.00, then 500 more @ 1.95..for a average of 2.00..... 2.25 or better would be great!!!

[billythekid245]

buy! Buy! buy!

For anyone who keeps a close eye on the stock: why is the stock not very responsive to earnings?

It blows my mind.

[AJLightning]

not sure about earnings not working in their favor...maybe because their not in a major market? not a lot of interest? just guessing :?:
I still like it A LOT right here...

RSI is low (59.27) and rising
MACD is favorable (.021 over .013) and their both over zero and rising
15 day MA crossed over the 50 day MA and rising
200 day MA is rising




1519

[billythekid245]

$2.20 today