Market Read®

  • Friday, May 27 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 $9.92.

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 9.92 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 7.51.

Date Short Volume Short Value SqueezeTrigger
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
2014-11-30 775771 6100973.4524 7.8644
2014-10-31 2942519 21391230.3743 7.2697
2014-09-30 2201740 16526700.788 7.5062

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
2016-05-03 -0.08 270563 158777 111786 Bearish Bias
2016-05-02 0.23 441996 288558 153438 6671.217391
2016-04-29 -0.01 419130 282900 136230 Bearish Bias
2016-04-28 0.02 799086 827720 -28634 Bullish Bias
2016-04-27 -0.08 263021 218907 44114 Bearish Bias
2016-04-26 0.08 278133 117056 161077 20134.625
2016-04-25 -0.07 243519 129632 113887 Bearish Bias
2016-04-22 0.06 225096 162382 62714 10452.33333
2016-04-21 0.14 223989 266832 -42843 Bullish Bias
2016-04-20 -0.12 290088 461698 -171610 -14300.83333
2016-04-19 0.09 339324 217364 121960 13551.11111
2016-04-18 0.13 218777 132586 86191 6630.076923
2016-04-15 -0.06 161076 228165 -67089 -11181.5
2016-04-14 -0.02 84129 101790 -17661 -8830.5
2016-04-13 0.16 166543 96953 69590 4349.375
2016-04-12 0.0 172458 141918 30540 Bearish Bias
2016-04-11 0.11 223261 241138 -17877 Bullish Bias
2016-04-08 0.03 199016 137480 61536 20512
2016-04-07 -0.12 330015 177498 152517 Bearish Bias
2016-04-06 0.06 173048 114482 58566 9761

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 $9.92 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 17.438 83.48 15301 706 95.59%
SqueezeTrigger 12.619 21.52 11196 799 93.34%
Valuation 14.484 26.96 4201 302 93.29%
Seasonality 7.29 15.17 59480 5450 91.61%
Group Correlation 7.204 14.96 10957 1291 89.46%
PatternScan 8.446 11.38 235570 35190 87.00%
Events 6.746 11.21 4713 725 86.67%
Earnings 8.557 10.34 25109 5050 83.26%
GATS 5.636 7.87 85161 18040 82.52%
Naked Shorts 13.777 10.98 3008 776 79.49%
Friction Factor 6.955 3.6 8592 2501 77.45%

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$9.92
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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