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Callaway Golf Update, now is the time to buy. Free money based on fundamentals.

Hello Fellow Autists,

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Today I am updating you on a free money opportunity that cannot go tits up that I have wrote about before almost a year ago and made you many tendies. **Callaway Golf (ELY)** is at a price point that is perfect to get back in. **With coronavirus beginning to be behind us creating a new generation of golfers influenced by the year under lockdown and mandates, Topgolf acquisition complete, and earnings blowouts in the last quarter**. This company looks to be full steam ahead with a 9.3x PE ratio….the average for the US leisure industry average is 14x. And this is a growth company not some conservative boomer play and it is trading under value which is rare to see in this market with how expensive growth is.

This stock is a **great business with great metrics and catalysts for growth and is undervalued from a fundamental standpoint.** I exited a while ago when it was in the 30 ranges but now that it is at 28 after being at a 52 week high of almost 38$ per share this is a great time to buy into a company where everything else is at all time highs.

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https://preview.redd.it/xvvihi5hrtk71.png?width=1200&format=png&auto=webp&s=c94d31c0d8f46b83da97be6ee880858ff81f1690

**Earnings Update:** Some new updates since my last post on Callaway golf. They crushed expectations for its second-quarter profits. Non-GAAP per-share earnings came in at 36 cents, while analysts had expected just a penny. Revenue came in at $914 million, topping analyst expectations for $755 million. This was driven by a 91% increase in golf-equipment sales compared with the corresponding period last year, Callaway (ticker: ELY) notched a 97% year-over-year increase in revenue across all of its business lines except for[ ](https://www.wsj.com/articles/callaway-nears-deal-to-buy-rest-of-topgolf-11603816074)Topgolf portion.

The Topgolf portion which accounts for 36% of revenue, posted solid numbers, management reported that same-venue sales are still recovering and currently are around 90% of the 2019 level. This is HUGE and once all covid mandates international and domestic are lifted and people are fully comfortable, they will blow past 2019 numbers especially with the growth Topgolf has made in previous years.

For the next quarter, management is expecting revenue to come in between $775 million and $790 million. That would be less than the $914 million for the most recent quarter, but attributes this to seasonal factors mean the second quarter is generally stronger than the third.

**CEO said -** β€œWhile in the short term we will experience some lingering supply constraints and other challenges caused by the pandemic, we believe that these challenges will be manageable given current demand levels and actions we are taking to mitigate the impact,” he said.

**What this means and why we are getting in at a good time** – Quarter guidance may appear low, but shows that he believes management’s call reflects supply-chain troubles rather than problems with demand. Investors may seem a bit weary and nervous which has probably led to the dip in the stock price recently and is more of an investor psychology then the actual business.

**What the professionals on Wall Street are saying – 5 analysts say it is a buy, 1 says it is a hold, 0 sells.** Lowest price target is 32.50….average is 40.92……highest is 49.00 That leaves a lot of room for tendies. I love trades where I can yolo and and be backed by fundamentals and backed by people who do this for a living and speak with management one on one. Because smart money combined with my yolo money is a great recipe for lambos.

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[Callaway in autist language is \”Tendies\”](https://preview.redd.it/8nhd5dclptk71.png?width=750&format=png&auto=webp&s=46965d526d6460387f05ebb33b8d76b147072d90)

**What’s the play?:** Time to capitalize off of any uncertainty of Callaway from investors and the slow price movement the last six months in preparation for the run up for next earnings report which should blow consensus harder then a gay bear behind Arby’s and blow company guidance away as well as people realize more and more Callaway had a great acquisition of Topgolf and golf is growing with the population. Plus the PE ratio, earnings, company from a macro perspective is a fucking no brainer. It’s time to buy the dip.

-**28$ Calls are dirt fucking cheap for January 15th at around 3.00$ and they are already in the money……if you want a true yolo get some 32$ calls and let them rideeeee.**

**-Shares…great long term hold and if you have ever been to a fucking topgolf with your wife and her boyfriend you’ll know how awesome of a place it is to get cucked.**

I entered the 28$ calls

Literally cannot go tits up πŸš€πŸš€πŸš€πŸš€πŸš€πŸš€πŸš€πŸš€πŸš€πŸš€πŸš€πŸš€πŸš€πŸš€πŸš€πŸš€πŸš€πŸš€

What do you think?

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13 Comments

  1. I got in after I saw it tank after earnings…but it kept fucking tanking. I agree that it is a steal at its current price but can’t figure out why the market hates ELY so much. I have September calls that will expire worthless without a miracle. Doubled down yesterday for November.

  2. Also bullish on this ticker. Top golf is a 1+1=3 acquisition for Callaway. They are going to be able to do so much brand development, free marketing, and sales of their products to all these new golfers that it will pay for itself just from incremental Callaway product sales without even counting the revenue from people ordering tendies while playing a game of Top Golf.

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