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Cramer Talks Golf Stocks, Thinks Dick's Is A 'Hideous Loser' But Likes Callaway's Prospects

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Cramer Talks Golf Stocks, Thinks Dick's Is A 'Hideous Loser' But Likes Callaway's Prospects
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During Tiger Woods' peak years, the sport of golf was tremendously popular, but this hasn't been the case for at least the past year. As such, investors who had exposure to golf stocks, including major golf retailer Dicks Sporting Goods Inc (NYSE: DKS), were stuck owning a "hideous loser," CNBC's Jim Cramer said during his daily "Mad Money" show recently.

Last year, Cramer looked at the overall golf sector, arguing that "golf was dead." But investors who bought Callaway Golf Co (NYSE: ELY) are up more than 30 percent over the past year, Cramer said. However, this is more so due to luck than a good investment. Specifically, Callaway's golf business has been boosted by default of Nike Inc (NYSE: NKE) exiting the golf equipment business.

"It's easy to win when Nike decides to forfeit the game," Cramer said.

With the absence of industry titans like Nike, Callaway was able to boost its market share in the golf space at a time when the sport is in fact "doing better than many people thought it would be." Also, Callaway did diversify its business away from its core golf equipment business and acquired a golf accessory company OGIO and a sportswear company called TravisMathew.

Meanwhile, owning Dick's as an exposure to the golf sector has been and continues to be a poor idea.

"I did make a mistake in my stock selection — I should've stuck with just Callaway as the best way to get some golf exposure and left awful Dick's Sporting Goods out of it," Cramer also said. "I got it wrong. For now, I think Callaway could have some upside long term, but I'd wait for it to come down before I'd pull the trigger."

Related Links:

Callaway Is The Top Golf Brand In The World, But Has Room To Grow

New Golf Company Stands To Benefit Most From Nike Golf's Departure

Posted-In: Apparel CNBC Golf Golf Equipment Mad MoneySports Media General Best of Benzinga

 

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