Adams Golf, Inc. designs, assembles, markets and distributes premium quality, technologically advanced golf clubs. Adams Golf operates in a single segment within the golf industry and offers more than one category of product within each segment. The company’s principal products are the Tight Lies fairway woods. Its other clubs include the Air Assault Drive and the Assault-VMI irons. Adams Golf’s target market is male and female golfers of various ages and ability levels.
Adams Golf, Inc. was founded in 1987 by B.H. (Barney) Adams, the company’s current Chairman. Alongside Mr. Barney is President and CEO, Oliver G. (Chip) Brewer III and CFO, Eric T. Logan.
During the past year Adams’s Hybrid clubs dominated on tour as it was played by more pros on the PGA Champions and Nationwide Tours, combined, than any other manufacturer’s hybrids. The company also saw nine Adams Golf tour staff pros combined to win 12 times on the Champions, Nationwide and LPGA Tours.
In 2008, the Adams Golf brand is expected to get a boost in exposure on the PGA Tour with the signings of Rory Sabbatini and Aaron Baddeley, the 11th and 18th-ranked players in the world, respectively. Also representing Adams Golf on the PGA Tour are Tommy Gainey and Brad Elder. On the LPGA side the company will continue to build its women’s tour staff with Brittany Lang, Lindsey Wright and Taylor Leon.
Adams Golf also plans on expanding its international reach to support future growth in its European business. In order to do so, they have hired a tour representative and will be putting a tour trailer on the European Tour for the 2008 season.
The company intends to apply for listing on The NASDAQ Capital Market. The Company believes that it meets all NASDAQ Capital Market listing requirements, except for bid price, and plans to seek stockholder approval for a reverse stock split. If the bid price requirement is satisfied following the reverse stock split, the common stock could begin trading on The NASDAQ Capital Market as soon as its listing is approved. The Company hopes to complete the listing in the first quarter of 2008.
However, there can be no assurance that stockholders will approve the reverse stock split, that the reverse stock split will result in the required minimum bid price or that NASDAQ will approve the listing.
The company also faces many competitors as the industry is very saturated and golfers now have an abundance to choose from including Callaway Golf (NYSE: ELY) who recently received a buy rating from Analysts at Wedbush Morgan, Aldila, Inc. (NASDAQ:ALDA) and Ben Hogan Clubs which has been around since 1953.
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