Market Read®

  • Saturday, September 24 2016

This prediction has passed its maturity date!

This prediction was valid between April 04, 2013 and February 27, 2013. All information in this report is for reference only and should not be considered forward looking.

(NYSE: ELY)

Callaway Golf Company


Bearish

Callaway Golf Company, together with its subsidiaries, designs, manufactures, and sells golf clubs, golf balls, golf bags, and other golf-related accessories. It offers drivers, fairway woods, hybrids, irons, wedges, and putters. The company also designs and sells golf accessories, such as packaged sets, golf bags, golf gloves, golf footwear, golf apparel, travel gear, headwear, towels, umbrellas, eyewear, and other accessories under the Callaway Golf, Odyssey, and Strata brand names. In addition, it licenses its trademarks and service marks for use on golf related accessories, such as golf apparel and footwear, golf gloves, prescription eyewear, and practice aids. The company sells its products directly to golf retailers, sporting goods retailers, and mass merchants; and to third-party distributors in the United States, as well as in approximately 100 countries. It also sells pre-owned golf products through its Website, www.callawaygolfpreowned.com; and Callaway Golf and Odyssey products directly to consumers through its Websites www.callawaygolf.com and www.odysseygolf.com. The company was founded in 1982 and is based in Carlsbad, California.

Investment Highlights

  • EARNINGS predicts that ELY will move down -4.96% by February 01, 2013. The target is $6.18. more
  • PATTERN SCAN predicts the price of ELY expected to move down in the coming weeks based on the appearance of a 'Resistance Break(1)' pattern. Specifically, a ACT EOD variant of Resistance Break(1) has been detected. The target is $6.45. more
  • VALUATION ELY has a current calculated value of $4.88 which means the stock is overvalued compared to its price of $11.73.

Predictive Range January 30, 2013 - February 27, 2013

Anticipated price movement, between prediction date and target date, based on all market reads.
$6.81 - $6.31

How WealthMakers Market Reads Work:

WealthMakers Market Reads™ provide you with market performance predictions based on proprietary technologies, trading algorithms and data to help you make better, more informed investment decisions. Here's a quick review of our predictive technologies:

  • EARNINGS Most stock price histories show random or unpredictable movements around earnings reports. But some repeat the same pattern quarter after quarter, year after year. Earnings predicts probability, price move and length of move before and after all US stock earnings reports.
  • FRICTION FACTOR Friction Factor is based on the relationship between the price of a stock and the volume at which it's bought and sold. Normal and abnormal Friction factor patterns can help you time your buying and selling decisions for maximum earnings potential.
  • GATS The Global Automated Trading System (GATS) combines neural networks and genetic algorithms to reduce investment risks. GATS selects the highest probability trades in stocks, bonds, options, commodities, currencies and private equities, delivering precise, predictive and profitable data.
  • GROUP SECTOR Certain institutions can exert buying or selling pressure over an entire industry group, pushing prices higher. Group Sector identifies stocks that most closely match their group's movement and generate powerful group consensus trading signals to help you profit from the herd mentality.
  • PATTERN SCAN This technology automatically tracks "Trigger Events" that positively or negatively affect the value of a stock — or its perceived value among analysts — ranging from price fluctuations to natural disasters and political shifts. The results reveal patterns that can predict market movements.
  • EVENTS Events describe the current technical situation in your stock. It displays the technicals, trend conditions and seasonal factors and automatically discovers how that stock has performed in the trading days following the occurrences of the event or combination of events. This technology automatically scans using complex historical queries based on what event is taking place right now in the stock. It then displays the probability, expected return and number of trading days for the expected move.
  • RegSHO NAKED SHORTS SEC Regulation SHO mandates that if a clearing agent holds a fail-to-deliver position for 13 consecutive settlement days, it must purchase securities to close out its position, a.k.a. a forced cover. WealthMakers aggregates data from NYSE, AMEX, NASDAQ, OTCBB and PINKSHEETS to track stocks that are about to have forced covers.
  • SEASONALITY Seasonality analyzes more than 20 years of data to determine if stocks have a long or short seasonal bias, how many trading days the move is expected to last, the probability of that move and the percentage move the stock is expected to make based on the seasonal bias.
  • SQUEEZE TRIGGER Our proprietary database of more than 3,500,000,000 short sale transactions allows us to calculate the exact price at which the total short interest is short in each stock. Squeeze Trigger Alerts let you know exactly when a short squeeze will start and how to trade profitably.
  • VALUATION A stock's value is a function of its forecasted earnings per share and forecasted earnings growth, as well as profitability, interest and inflation rates. Valuation use these metrics to determine at what price a stock is undervalued or overvalued, so that you can make investment decisions accordingly.
  • INSIDER Significant stock sales or purchases by company "insiders" (officers or directors) can be a predictor of future price movements — up or down. The Insider strategy tracks these actions and correlates them with historical data to give you an investment edge.

Earnings

 

Predicts probability, price move and length of move before and after earnings reports.

The movement of stock prices in the days and weeks leading to and following these earnings announcements may follow a predictable pattern. Most companies stock price histories show random or unpredictable movements around earnings dates. But some seem to repeat the same pattern quarter after quarter, year after year. The # of Reports in the table below shows how many previous quarterly reports comprise the indicator that predicts how a stock will act after its earnings are released.
Earnings, or profits, drive stock prices. The market values a company based on its current and anticipated future ability to make money. The market takes the earnings pulse of a company four times per year when quarterly reports are issued. When this information is released it can often be a trend-changing or a trend confirming event because the information is so vital to the market's perception of the vitality of that company.
This technology is designed to help the stock trader identify those companies that seem to have a consistent pattern of movement before or after the earnings release date, based on the history

  • ELY, currently trading around 11.73 expected to hit $6.18.
  • The price of ELY tends to move down after earnings report dates.
  • Of the previous 13 earnings releases, ELY has moved down 85% of the time.

Pattern Scan

 

Tracks "Trigger Events" that positively or negatively affect the value of a stock.

Callaway Golf Company (NYSE: ELY) is predicted to go down in coming weeks based on bearish technical trends that have appeared in the recent performance of the stock. ELY has demonstrated Resistance Break(1) strategy ACT EOD with a strength of 5.0/5. The higher the strength, the higher the probability of an accurate prediction.

  • The price of ELY expected to move down in the coming weeks.
  • PatternScan has detected that a 'ACT EOD' pattern has appeared.
  • Specifically, a ACT EOD variant of Resistance Break(1) has been detected.
  • This indicates a high probablity that ELY will move down in the coming weeks.

Squeeze Trigger

 

We have a proprietary database of all trading in US stocks and maintain massive databases of short sale and naked short sale time and sales data, along with short squeeze SqueezeTrigger prices. We are the only firm that knows the exact price that a short squeeze will start in every US stock.

The Cumulative Squeeze Trigger price for ELY is 7.74.

Date Short Volume Short Value SqueezeTrigger
2016-07-31 1094613 11162753.9127 10.1979
2016-06-30 4588297 46821276.7365 10.2045
2016-05-31 6549952 63860722.0096 9.7498
2016-04-30 3605836 22730829.5604 6.3039
2016-03-31 4127210 28088553.097 6.8057
2016-02-29 3065550 26018855.625 8.4875
2016-01-31 2443453 21442033.1109 8.7753
2015-12-31 1635370 16109048.648 9.8504
2015-11-30 1371172 13571723.3388 9.8979
2015-10-31 2051449 18903897.3901 9.2149
2015-09-30 1404842 12037107.7086 8.5683
2015-08-31 2340425 20809654.845 8.8914
2015-07-31 3282656 28590620.6976 8.7096
2015-06-30 3710455 35017048.017 9.4374
2015-05-31 3586023 34328639.5767 9.5729
2015-04-30 4272770 41594988.673 9.7349
2015-03-31 3526331 31764837.0149 9.0079
2015-02-28 526364 4231440.196 8.039
2015-01-31 3095104 24529937.2416 7.9254
2014-12-31 3099212 22871564.7176 7.3798

Friction Factor

 

Friction Factor determines if there is normal or abnormal behavior in the price action of the stock when compared to the buying vs. selling trading statistics. It shows us how many more shares of buying than selling it takes to move a stock higher by 1 cent, or how many more shares of selling than buying it takes to drop a stock by 1 cent.
Here is how to understand Friction Factor:

  • If Friction Factor is positive, more buying than selling caused ELY's price to rise
  • If Friction Factor is negative, more selling than buying caused ELY's price to fall
  • If Friction Factor is 0, there was no discernable activity either way
  • If Friction Factor is abnormal, it means that more buying than selling caused the price to drop which is evidence of manipulative activity. In some cases more selling than buying can cause the price to increase. While this is rare, it must be noted as well. Friction Factor raw data.

Date Change Buy Vol Sell Vol Net Vol Friction
2016-07-08 0.16 271546 155901 115645 7227.8125
2016-07-07 0.18 277128 195635 81493 4527.388889
2016-07-06 0.07 147079 112058 35021 5003
2016-07-05 -0.17 166561 223838 -57277 -3369.235294
2016-07-01 0.07 162060 116169 45891 6555.857143
2016-06-30 0.24 406158 189370 216788 9032.833333
2016-06-29 0.18 158783 99328 59455 3303.055556
2016-06-28 0.09 307797 304179 3618 402
2016-06-27 -0.25 313219 389368 -76149 -3045.96
2016-06-24 -0.5 433429 1889456 -1456027 -29120.54
2016-06-23 0.02 299983 264881 35102 17551
2016-06-22 -0.02 247724 295722 -47998 -23999
2016-06-21 0.13 230868 303015 -72147 Bullish Bias
2016-06-20 0.24 179537 234191 -54654 Bullish Bias
2016-06-17 -0.05 210463 187722 22741 Bearish Bias
2016-06-16 0.04 308535 241470 67065 16766.25
2016-06-15 0.01 225142 258140 -32998 Bullish Bias
2016-06-14 -0.04 154995 239294 -84299 -21074.75
2016-06-13 -0.07 283404 277156 6248 Bearish Bias
2016-06-10 -0.2 291109 348414 -57305 -2865.25

Valuation

 

Value is a measure of a stock's current worth. ELY has a current value of 4.88 per share. Therefore, it is overvalued compared to its Price of $11.73 per share. Value is computed from forecasted earnings per share, forecasted earnings growth, profitability, interest, and inflation rates. Value increases when earnings, earnings growth rate and profitability increase, and when interest and inflation rates decrease.

General Results

 

Past success in predictions regarding all predictions on the WealthMakers platform.

Our prediction engine has a track record that is second to none. See for our results.

Read Type Avg Return Avg Maturity Days Hits Misses % Accurate
Insider 18.058 82.75 16495 792 95.42%
SqueezeTrigger 14.974 21.74 11442 877 92.88%
Valuation 19.577 27.08 4010 317 92.67%
Seasonality 11.028 15.21 59684 6844 89.71%
Group Correlation 8.205 15.14 13036 1562 89.30%
PatternScan 12.14 11.42 244522 39133 86.20%
Events 9.826 11.16 4694 833 84.93%
GATS 8.65 7.88 89582 21092 80.94%
Earnings 12.952 10.46 24173 5882 80.43%
Naked Shorts 19.936 10.98 2880 788 78.52%
Friction Factor 10.589 3.62 8502 2613 76.49%

About Wealthmakers

WealthMakers gives institutional and individual investors an exclusive advantage in making precise, predictive and profitable trading decisions. Our proprietary technologies — Earnings, Seasonality, Squeeze Trigger, Group Sector and GATS — apply artificial intelligence, proprietary algorithms, market data and research to help our clients realize exponential returns. Find out more at WealthMakers.com.

All material herein was prepared by WealthMakers, based upon information believed to be reliable. The information contained herein is not guaranteed by WealthMakers to be accurate, and should not be considered to be all-inclusive. The companies that are discussed in this opinion have not approved the statements made in this opinion. This opinion contains forward-looking statements that involve risks and uncertainties. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. WealthMakers is not a registered investment advisor in the State of California. Please consult a broker before purchasing or selling any securities viewed on or mentioned herein. WealthMakers or its affiliates may receive compensation from independent third parties, or from the companies mentioned, for data provided in this report or related services. WealthMakers affiliates, officers, directors and employees do not own shares of the company mentioned in this report, but may from time to time buy/sell the shares discussed in this opinion and may profit from those trades. Market commentary provided by Thomas Ronk, a registered investment advisor and commodities trading advisor in California. WealthMakers will not advise as to when it decides to sell and does not and will not offer any opinion as to when others should sell; each investor must make that decision based on his or her judgment.

All Rights Reserved. Copyright 2011 WealthMakers

Overview
Last Price$11.73
52 Week Range$6.66 - $10.35
1 Month Range$7.76 - $8.75
Avg Daily Volume660895.0
PE Ratio0.0
 
Earnings Per Share
YearEPS
2016(E)$-0.109
 
Capitalization
Shares Outstanding77MM
Market Capitalization$669.80MM
 
 

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