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The Golf Trade

Tiger Woods has been getting a lot of attention lately -- what you haven't heard?

Last week Woods landed in the center of a sex scandal after he crashed his Cadillac Escalade into a tree outside his mansion in Florida. According to published reports, he may have been fighting with his wife about an extra-marital affair.

The story has led some to ask if Woods will lose his sponsorships. So far, most sponsors appear to be standing by him.

Nike was not expected to sever their ties; that deal alone is worth an estimated $100 million a year.

Procter & Gamble’s Gillette declined to comment but other sponsors, including AT&T and Electronic Arts are expected to stick with him.

It doesn't matter as things stand today, says Marc Ganis, president of consulting firm Sportscorp Ltd. We'll see what the future brings, (but) he is the reason golf is still on the map. He's got a heck of a lot of chits in his ledger.

There's no denying that Woods has helped catapult golf's popularity into the stratosphere.

Not only did he bring in fans and new participants, those sponsorships have sent equipment sales soaring. According to BERA, over 27 million people play golf in the US and spend over 3 billion in equipment.

So, what’s the golf trade?

My top pick in the sector is probably Callaway , says says Stifel Nicolaus analyst Thomas Shaw. But I think we have to get through a pretty ugly quarter before the stock starts to improve.


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Trader disclosure: On Dec. 4th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Najarian Owns (AAPL) Calls; Najarian Owns (AMAT) Calls; Najarian Owns (BAC) Calls; Najarian Owns (DD) Calls; Najarian Owns (GE) Calls; Najarian Owns (INTC), Is Short (INTC) Calls; Najarian Owns (TXN), Is Short (TXN) Calls; Najarian Owns (HUN) Calls; Najarian Owns (CLF), Is Short (CLF) Calls; Najarian Owns (HUN) Calls; Finerman Owns (GGWPQ), (TBT); Finerman's Firm Owns (BAC) Preferred, (BAC), (BAC) Call Spread; Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm Owns (M), (MSFT), (WMT), (CBY), (PLCE); Finerman's Firm Is Short (KFT), (IJR), (IWM), (SPY), (MDY), (USO), (UNG); Terranova Works For (VRTS); Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.

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