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Non-Tech : Callaway Golf -- it's a buy -- Ignore unavailable to you. Want to Upgrade?

To: Don Dorsey who wrote (136)	5/13/1998 4:04:00 PM
From: Don Dorsey	Respond to of 307

Callaway Golfsays mulls price cuts on clubs Reuters Story - May 13, 1998 14:27 Jump to first matched term NEW YORK, May 13 (Reuters) - Callaway Golf Co is mulling price cuts on its Big Bertha metal driver and other clubs amid fierce competition in the golf-equipment industry, the company's chief executive, Donald Dye, said. "We've elected to consider whether or not a price reduction on our metal woods would help retailers flush out inventory," Dye said in an interview with Reuters. "It would also help maintain (the company's) momentum and do damage to our competitors." Dye did not specify how steep the price cuts -- if implemented -- would be. "We can go awfully low because of our fundamentals," he said. Currently, the highest-priced Big Bertha has a suggested retail price of about $600 but can be found in stores in the $450 range, Dye said. "We have been perceived and continue to be perceived as the premium-priced golf equipment provider in the world and any lowering in the price of our products that would give a sign we no longer wanted that position would be a huge negative," Dye added. "On the other hand," he said, "it would be a huge mistake to leave prices at an unduly high level."

To: Don Dorsey who wrote (136)	5/13/1998 4:39:00 PM
From: Mark T. Heath	Respond to of 307

I always loved hitting my Calloway clubs, but I've never given a serious look at the stock. Today's selloff on over 8 million shares did catch my eye and has me looking at a buying opportunity. I think the potential USGA intervention on the speed a ball can leave a clubhead could be dangerous. However, I think an outcry from not only amateurs, but the pros especially so, will halt the USGA in their tracks. If they are concerned that the current technology is making courses obsolete, they didn't watch this year's Masters tournament. As a guy whose been playing golf since he was six years old, I'll tell you this; if you don't have the swing, I don't care what club you hit. I believe the El Nino thing is being overblown. So it's been a wet spring; so what. Are we to expect every spring to be as wet? I don't think so. A look at a 5 year chart shows some support at $20. This may be one you could buy and put away for awhile. The only thing that could reach up and bite you is if the company nixes the dividend which would jolt the stock again.