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Saturday, Sep 23, 2023

Sacks Parente Places Bet on Golf’s Future

Sacks Parente Golf Inc., a manufacturer of golf equipment based in Camarillo, is reeling from an over-par debut on the New York Stock Exchange.

The maker of a $400 putter saw its stock price soar on Aug. 15, its first day of trading, but the bliss was short-lived.

Sacks Parente shares tumbled 80% the following day, soon trading below their initial public offering price of $4. Shares of the company’s stock ended their first week on Wall Street at $2.51 per share, and closed at $2.54 on Aug. 23.

The stock surged, then quickly eroded as investors took a breather from the frenzy and got caught up on the company’s rocky financial history.

According to its filing with the U.S. Securities and Exchange Commission in December, Sacks Parente is far from turning a profit despite the eyebrow-raising prices of its golf clubs. The company had a net loss of $3.5 million last year, making just $190,000 in sales.

Sacks Parente was founded by two former professional golfers, Steve Sacks and Richard Parente. Parente also founded one of the most well-known golf brands, Callaway, now known as Topgolf Callaway Brands Corp.

Sacks Parente sells its products through resellers, its website and distributors in the United States, Japan and South Korea. Proceeds from its initial public offering are expected to expand the company’s production

The rollercoaster trading week for Sacks Parente reflects the golf industry’s growing pains. The emergence of LIV Golf, the Saudi-backed professional golf tour, and its contentious merger with Professional Golfers Association of America Tour, and the growth of golf entertainment brands such as Topgolf, represent a changing presence for a sport once kown for its exclusivity.

Coming into the public market, Sacks Parente is likely hoping to cash in on the sport’s growing market.

Hannah Madans Welk
Hannah Madans Welk
Hannah Madans Welk is a managing editor at the Los Angeles Business Journal and the San Fernando Valley Business Journal. She previously covered real estate for the Los Angeles Business Journal. She has done work with publications including The Orange County Register, The Real Deal and doityourself.com.

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