Tiger Woods' decision over the weekend to take an indefinite leave from the game of golf in an attempt to repair his family and his reputation isn't necessarily a bombshell. His presence on the golf course would be a major distraction, and it would send the wrong message about the severity of his apparently multiple extramarital affairs.
However, plenty of companies will suffer as the game's greatest current player takes his leave. Lots of disappointed sponsors and companies rely on the popularity of golf, and both they and their shareholders will pay the price for Woods' actions.
Let's go over a few of the names.
Electronic Arts
Accenture
PepsiCo
Procter & Gamble
Nike
Callaway Golf
AT&T
The scorecard
Woods' world began to come undone on Nov. 25, when The National Enquirer claimed the golfer was having an affair with a New York party organizer. He crashed his SUV two days later, and it's been all downhill for Woods ever since.
Let's see how these seven stocks have performed relative to the S&P 500 in that time.
Stock |
12/11/09 |
11/25/09 |
Change |
---|---|---|---|
EA |
16.11 |
17.51 |
(8%) |
Accenture |
42.00 |
40.58 |
3.5% |
PepsiCo |
61.27 |
62.74 |
(2.3%) |
P&G |
62.34 |
62.87 |
(0.8%) |
Nike |
63.86 |
65.70 |
(2.8%) |
Callaway |
7.38 |
7.20 |
2.5% |
AT&T |
28.01 |
27.08 |
3.4% |
S&P 500 |
1106.41 |
1110.63 |
(0.4%) |
Back out the 8% slide in shares of Electronic Arts -- a drop more likely tied to the general malaise in the video-game industry at the moment -- and you have a basket of stocks that has mostly shrugged off the Woods incident. Three of the seven stocks have beaten the market in that time.
I don't think the indifference will last, especially for Nike, Callaway, and, to a lesser extent, EA, since they're all companies that need the public to remain interested in the sport of golf.
Fore!
You've just been warned about the incoming shot.
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