Adam's Golf Scores Hole-In-One on Debt Collection Front

The 93^rd PGA Championship is now underway at Atlanta Athletic Club, and while many will be drawn to the dramatic highs and gut-wrenching lows of televised golf (not to mention Jim Nantz’s voice), others may find themselves contemplating yesterday’s 520 point drop in the Dow and thinking, I’d sure like to invest some of these Spanish Doubloons I’ve got collecting dust down in the in the root cellar into some low-risk publicly traded golf companies.

If that sounds enticing, a recent article from Benzinga (say that three times on a crowded city street and try to avoid getting a slap) has got a hot tip for you.  Despite its unassuming name, Adam’s Golf (NASDAQ: ADGF), with a market cap of just $44.6 million is, according to Benzinga Staff Writer Scott Rubin, “an interesting stock which may pique golf enthusiasts’ interests.”

What caught my eye, however, was this little nugget from Adam’s Golf’s corporate strategy: “Adam’s Golf has been increasing its inventories in order to offer customers the widest range of products, and has also been streamlining its debt collection from clients. Accordingly, it has significantly conducted due diligence on all of its customers, so that its allowance for doubtful accounts is maintained efficiently.”

An affordable golf stock with a proactive debt collection policy? That rates a 12 on the Sizzle-O-Meter Scale of golf club design, assembly, and distribution company investments.  Maybe even a 12.5!

I just have one bone to pick with Mr. Rubin’s assessment—not of Adam’s Golf—but of golfers in general. The title of his article is Tees, Clubs, and Stocks: Three Passions of Every Golfer.

The most watched guy in Georgia this week—or at least for the next two days depending on his ability to hit fairways—will be Tiger Woods.  And at last count, his paramours (I mean passions) numbered at least eleven.  And that’s before you count tees and clubs.

Michael Klozotsky is the managing editor of insideARM.com. His stock knowledge is limited to chicken, beef, and vegetable; nothing herein constitutes financial advice of any kind.