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Revision History For: Adam's Golf (ADGO)

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Adam's Golf, maker of TightLies fairway woods:

* IPO in July - Opens @ $18, now trades @ $4

* First 6 months of 98, earns about $0.50/share. Expects Q3 earnings to be a little below expectations and come in around $0.17-$0.19/share, which makes 9 months earnings around $0.70/share. PE ratio based on 9 months earnings is under 6.

* Announced 2 million share buyback on 10/1/98

* Very little debt (debt to equity ratio 0.02)

* 23 million shares outstanding, only 6 million float

Basically, it looks like a small cap stock that got caught in the Russell 2000 meltdown. The chart appears to have support at $4, so there seems to be very little downside risk. While I don't think it will continue to grow at 50-100% per year, I definitely think it can sustain growth in the 20% range, which would mean it is significantly undervalued at this level. Also, it appears that the small-cap decline is approaching a bottom.