Profile: Callaway Golf (ELY)

In my opinion shares of Callaway Golf (ELY) are getting very close to the liquidation value of the shares. Here is a quick back-of-the-envelope attempt to kill the company using the statements of the 2010 annual report:

According to this rough estimate, the per share  liquidation value is in the region of $5 which would indicate a relatively limited downside risk.

Other sources:

A coverage of Callaway (ELY) in the Manual of Ideas (April, 2010)

A coverage of Callaway (ELY) at the Institute of Strategy and Valuation (November, 2011)

 

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