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Topgolf Callaway Brands ($MODG) – Hammerstone Breaks an Overlooked Story from Overseas
| 04/11/2024
In today’s 24/7 news arena, one assumes that news from different parts of the globe will move seamlessly across time zones and datelines, but it turns out that that is not always the case.
On Wednesday, March 20th, the team at Hammerstone Markets was alerted to an overnight article in the English edition of South Korea’s largest newspaper, Chosun Ilbo. The article stated that Topgolf Callaway was to be sold, possibly to a South Korean private equity firm. With the U.S. markets closed and Callaway shares not listed on any Asian exchanges, the headline essentially ignored and overlooked. Here is how it appeared in Hammerstone’s scrolling financial new feed that morning:
07:49:20 am – $MODG – Global golf equipment brand “Callaway” is up for sale. Link To Story from CHOSUN.com
With this post, the Hammerstone Markets Feed was the first American news outlet to “re-break” Chosun Daily’s M&A speculation across Wall Street.
Soon after alerting our community of traders, brokers, analysts and portfolio managers, the story was picked up and publicized by the major news outlets like Bloomberg. Callaway shares began moving higher, trading up 15% on heavy volume in the premarket session, ticking over the $16 level for the first time in 7 months. While other traders searched for the MODG story, and their news services played catch-up, the Hammerstone community was already making trading and investing decisions or relaying the news to clients.
Topgolf shares remained strong throughout the day, weathering a skeptical analyst note and a trading halt followed by an official denial by Callaway that they were not for sale. The team at Hammerstone kept our community in the loop. Callaway shares have remained elevated in the weeks since – a telltale sign to some veteran traders that perhaps the writers at Chosun Daily were on to something. Time will tell and if or when it does, one thing is certain, the Hammerstone community will be alerted immediately.
The story as it unfolded in Hammerstone’s scrolling financial news feed:
07:49:20 am – $MODG – Global golf equipment brand “Callaway” is up for sale: Link To Story from CHOSUN.com
07:50:17 am – $MODG – Topgolf Callaway Brands Corp., one of the world’s top 3 golf brands is up for sale. A South Korean strategic investor is reportedly in the running to acquire the company, valued at around $2.98B.
07:57:19 am – $MODG +10% pre-mkt.
10:00:12 am – $MODG – Raymond James publishes update, analyst doubts the validity of the possible M&A news from South Korea’s Chosun Daily; maintains Outperform rating….>
01:41:23 pm – $MODG halted, news pending.
01:51:52 pm – $MODG Topgolf Callaway issues statement on recent media reports
01:52:01 pm – $MODG Topgolf: “While it is our long-standing practice not to respond to market rumors and speculation, in light of today’s unusual market activity, coupled with a recent media report originating in Korea regarding discussions of a potential sale of the company or its golf equipment business, we confirm that we are not aware of any such discussions.”
01:52:14 pm – $MODG Topgolf Callaway confirms not aware of any talks on sale.
02:06:49 pm – $MODG resumes trading, pares gain to +6%.