Does A Tiger-Less World Hurt These Stocks (PEP, NKE, GM, CMCSA)?
Tweet
Share
E-mailGet Alerts PEP Hot Sheet
Join SI Premium – FREE
Sadly, Tiger Woods announced he has to miss the rest of the 2008 golf season to have reconstructive surgery to repair damage to the anterior cruciate ligament in his left knee. Woods had an arthroscopic procedure two days after the Masters in April. While recovering from that operation, Woods sustained a double stress fracture of his left tibia. The injuries explain why Woods was in so much pain last week.
Undoubtedly, some of the companies that Tiger Woods is sponsored by will receive less exposure in the upcoming months, but will their stock prices fall?
Pepsi's (NYSE: PEP) Gatorade for the first time ever licensed an athlete's name for a product and gave the athlete a percentage of the sales. Pepsi recently launched Gatorade Tiger and the drink has been receiving great exposure through Tiger's strong play. Tiger Woods had the Gatorade Tiger on display during every Q&A session after he finished each round at the U.S. Open. Pepsi is such a diversified company that I don't think Tiger's absence for the year will depress the stock price.
General Motors' (NYSE: GM) Buick brand heavily relies Tiger Woods to bring a younger demographic to its brand. In fact, Buick is running a weekly contest where users guess Tiger's weekly scores, and the lucky winner was scheduled to have Tiger caddy 9 holes for him or her.
Tiger is obviously Nike's (NYSE: NKE) best advertisement for Nike's clubs, balls, clothes and other golf related merchandise. There could be a slight slowdown in Nike golf-related sales, but reportedly Tiger and Nike golf related sales accounts for less than 5% of Nike's overall sales.
Comcast (Nasdaq: CMCSA) owns The Golf Channel, which will likely lose viewers because of Tiger not playing in the rest of '08. As the ratings drop for The Golf Channel, so will its ad revenue, which will hurt the line bottom line. Comcast is a very large company and The Golf Channel's revenue drop will likely not impact the overall company.
Tiger Wood's uncanny ability to produce some of the best moments in golf will definitely be missed. There is no one else that fist pumps like Tiger after making a 30 foot putt.
A Tiger-Less world may not impact the above stocks over the long-term, but no Tiger will definitely hurt the amount of viewers who have been watching golf. In the short-term, charities, restaurants, PGA, hotels, merchandise and other golf related sales will be negatively impacted.
Sign up at EasyStockAlerts.com To Be Alerted To Your Stock News!
Undoubtedly, some of the companies that Tiger Woods is sponsored by will receive less exposure in the upcoming months, but will their stock prices fall?
Pepsi's (NYSE: PEP) Gatorade for the first time ever licensed an athlete's name for a product and gave the athlete a percentage of the sales. Pepsi recently launched Gatorade Tiger and the drink has been receiving great exposure through Tiger's strong play. Tiger Woods had the Gatorade Tiger on display during every Q&A session after he finished each round at the U.S. Open. Pepsi is such a diversified company that I don't think Tiger's absence for the year will depress the stock price.
General Motors' (NYSE: GM) Buick brand heavily relies Tiger Woods to bring a younger demographic to its brand. In fact, Buick is running a weekly contest where users guess Tiger's weekly scores, and the lucky winner was scheduled to have Tiger caddy 9 holes for him or her.
Tiger is obviously Nike's (NYSE: NKE) best advertisement for Nike's clubs, balls, clothes and other golf related merchandise. There could be a slight slowdown in Nike golf-related sales, but reportedly Tiger and Nike golf related sales accounts for less than 5% of Nike's overall sales.
Comcast (Nasdaq: CMCSA) owns The Golf Channel, which will likely lose viewers because of Tiger not playing in the rest of '08. As the ratings drop for The Golf Channel, so will its ad revenue, which will hurt the line bottom line. Comcast is a very large company and The Golf Channel's revenue drop will likely not impact the overall company.
Tiger Wood's uncanny ability to produce some of the best moments in golf will definitely be missed. There is no one else that fist pumps like Tiger after making a 30 foot putt.
A Tiger-Less world may not impact the above stocks over the long-term, but no Tiger will definitely hurt the amount of viewers who have been watching golf. In the short-term, charities, restaurants, PGA, hotels, merchandise and other golf related sales will be negatively impacted.
Sign up at EasyStockAlerts.com To Be Alerted To Your Stock News!
You May Also Be Interested In
- Nscale targets up to $3B in US IPO as soon as September - Bloomberg
- Fannie Mae loses at least 10 senior executives amid departures - WSJ
- BofA's Hartnett sees dollar slump, risk selloff if bond intervention fails
Create E-mail Alert Related Categories
Insiders' Blog, Trader TalkSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
