Market Read®

  • Sunday, March 01 2015

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 and balls. It offers drivers, fairway woods, hybrids, irons, wedges, and putters. The company also designs and sells golf accessories, such as golf apparel and footwear, golf bags, golf gloves, headwear, towels, umbrellas, eyewear, and travel gear under the Callaway Golf, Odyssey, and Strata brand names. In addition, it licenses its trademarks and service marks for use on golf related accessories, including golf apparel and footwear, prescription eyewear, golf gloves, umbrellas, 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 worldwide. It also sells pre-owned golf products through its Website callawaygolfpreowned.com; and Callaway Golf and Odyssey products directly to consumers online through its Websites callawaygolf.com and 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 $9.0.

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 9.00 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 7.42.

Date Short Volume Short Value SqueezeTrigger
2015-02-28 526364 4231440.196 8.039
2015-01-31 3095104 24529937.2416 7.9254
2014-12-31 3099212 22871564.7176 7.3798
2014-11-30 775771 6100973.4524 7.8644
2014-10-31 2942519 21391230.3743 7.2697
2014-09-30 2201740 16526700.788 7.5062
2014-08-31 3448982 26407475.5812 7.6566
2014-07-31 7187014 60766922.0714 8.4551
2014-06-30 3056513 24531267.6867 8.0259
2014-05-31 5274273 43905158.1612 8.3244
2014-04-30 3000775 29186137.805 9.7262
2014-03-31 6196847 58671127.7113 9.4679
2014-02-28 3642719 29907815.8057 8.2103
2014-01-31 5782467 49423901.9424 8.5472
2013-12-31 1258783 9827570.6376 7.8072
2013-11-30 1899068 15706621.7076 8.2707
2013-10-31 5766625 46304845.425 8.0298
2013-09-30 2225707 16010178.1631 7.1933
2013-08-31 3851634 27360852.4458 7.1037
2013-07-31 4385319 30489368.8794 6.9526

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
2015-02-04 0.11 980764 419306 561458 51041.63636
2015-02-03 0.15 353381 210381 143000 9533.333333
2015-02-02 -0.29 430008 450140 -20132 -694.2068966
2015-01-30 0.35 605022 744846 -139824 Bullish Bias
2015-01-29 0.03 211365 167896 43469 14489.66667
2015-01-28 -0.13 165280 167324 -2044 -157.2307692
2015-01-27 -0.09 207030 203077 3953 Bearish Bias
2015-01-26 0.08 250665 328966 -78301 Bullish Bias
2015-01-23 -0.11 235499 219347 16152 Bearish Bias
2015-01-22 0.16 281147 183237 97910 6119.375
2015-01-21 -0.1 143010 133479 9531 Bearish Bias
2015-01-20 -0.01 252248 356932 -104684 -104684
2015-01-16 0.14 172237 165155 7082 505.8571429
2015-01-15 -0.12 192813 156288 36525 Bearish Bias
2015-01-14 -0.12 109655 60642 49013 Bearish Bias
2015-01-13 -0.06 152600 126381 26219 Bearish Bias
2015-01-12 0.0 191133 70491 120642 Bearish Bias
2015-01-09 0.05 186377 201737 -15360 Bullish Bias
2015-01-08 0.08 387409 242247 145162 18145.25
2015-01-07 0.3 388708 299493 89215 2973.833333

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 $9.0 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 15.878 77.75 11200 579 95.08%
SqueezeTrigger 12.549 22.06 8978 582 93.91%
Valuation 14.484 26.96 4201 302 93.29%
Seasonality 7.341 15.2 48621 4642 91.28%
Group Correlation 6.791 14.81 3320 322 91.16%
PatternScan 8.547 11.5 174782 25728 87.17%
Events 6.902 11.24 3931 606 86.64%
Earnings 8.551 10.23 23341 4724 83.17%
GATS 5.388 7.89 58687 11910 83.13%
Naked Shorts 14.012 10.92 2615 683 79.29%
Friction Factor 7.178 3.63 6607 1890 77.76%

Prediction Success

 

Past success in predictions regarding Callaway Golf Company.

  • February 06, 2015 - Callaway Golf Co (NYSE:ELY), Up By 5.66% ($0.46) From $8.130 After ${brandname}.com Report Predicted Stock Would Go Up Due To Bullish Conditions

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$9.00
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
2015(E)$-0.109
 
Capitalization
Shares Outstanding77MM
Market Capitalization$669.80MM
 
 

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