I posted about my smallest position, $PTON, the other day and figured I would make a post about my largest single stock position (81% of my portfolio is index funds). I love a couple segments of this business as a consumer and think its very reasonably valued right now. Before I jump into Callaway as a whole and a couple individual business segments I think will lead their growth, here are a few bullish side notes:

-Company bought back $25 Million worth of shares in Q4. Purchased 947,000 shares at costs basis of $26.41. Authorized to purchase another $25 million worth of shares

-In December, CFO bought 15,000 shares at $25.79 for a total of $386,850. The CEO bought 4,000 shares at $25.55 for a total of $102,200

Market Cap $4.6 Billion

-2021 Consolidated Net Revenue was $3.1 Billion, a 97% increase YoY vs 2020

-2022 Guidance of Consolidated Net Revenue of $3.8 Billion on Q4 earnings call

-2021 EBITDA of $445 Million, increase of 170% over 2020 and guidance of $490-$515 Million EBITDA for '22

-Available liquidity as of Q4 call of $753 Million between cash on hand and under credit facilities

As a consumer, I am a huge fan of 2 segments of this business.

Top Golf - this is the secret sauce and why I think $ELY has a bright future. We have one in Tampa about 30 mins away and it is always packed. It doesn't matter if its a Tuesday afternoon or Saturday morning, the bays are always full. Serious golfers love it, casual golfers love it, and people that have never even played love it. We have been going consistently for about 5 years now and having the ability to invest in this business is what drew me to Callaway. Some numbers on Top Golf:

-70 locations in 6 different countries. Opening 10, possibly 11, locations in '22

-Same venue sales up 9% vs 2019 levels despite Omicron and its impacts on corporate bookings

-Revenue totaled $994 million for Q2, Q3, and Q4. Merger completed in March so revenue just reflected on those 3 quarters.

TravisMathew - Really like their attire and they are experiencing huge growth.

-Retail comp store sales were up over 67% versus 2020

-Ecommerce up 30% over 2020 numbers

-Launched a women's line in Q4 and it sold out in 48 hours

-Big Cat from Barstool loves the brand and has tweeted about it a few times. Regardless of your thoughts on Barstool, it doesn't hurt to have one of their biggest personalities promoting the brand for free

Possible Headwinds/Stock drawbacks:

-Increase in freight costs

-Inflation with commodity prices and labor

-New outbreaks of COVID continuing to hamper corporate bookings side of Top Golf

-From a personal preference standpoint, I think the ELY ticker has to go. Unless someone has researched the stock, they generally have no clue what company this references

-Chip, the CEO, has used the phrase Modern Golf on the last few calls for his vision on the company. I love the concept and believe they are executing but, as with the ticker, don't think most people think this when they hear the brand Callaway and just think of clubs and balls

All in all, I am very bullish on golf. COVID has provided a huge spike for helping grow the game but I think most of those golfers are here to stay based on what I see on the course. Netflix is in the process of shooting a golf version of Drive to Survive (incredible show if you haven't watched it) that will be a Docuseries following some of the biggest names on tour (Justin Thomas, Rickie Fowler, Jordan Spieth, DJ, Bubba Watson, etc.) and I think that will be a great tailwind for the game when it is released next year.

Anyone other $ELY investors out there? I would also welcome some bear cases. Thanks for reading!