Callaway Golf Company (NYSE: ELY) makes golf equipment, including woods, irons, putters, balls, and other accessories.^[1] Callaways sales have historically been tied to the spending power of consumers overall, and thus was adversely affected by the global downturn.^[2]

Callaway faces pressures from a shrinking market. As the Baby Boomer generation that fueled the sport's popularity ages and a younger, less active generation finds its entertainment elsewhere, fewer people are playing fewer rounds of golf.^[3] The number of golfers in the U.S. has is on a steadily declining trend.^[3] Furthermore, the amount of golfers that play at least 25 times a year has dropped about 33% since 2000.^[3] However, experts predict that the golf club market will see a growth rate of over 25% annually in China and India as golf continues to expand worldwide, a trend that benefits Callaway.^[4]

(Read more at Wikinvest )