How Callaway’s CEO Sees It

“Callaway Earns a Double Bogey . . .” [Stock Exchange, Nov. 23] by James Peltz and Michael Hiltzik caused quite a stir around here.

I appreciate conversational tone and breezy writing, and compliment both of you on your facility with the language. You have an uncommon ability to entertain the reader, a key element of style. But informing the reader is equally important, and it is on this point that we must differ. Some of the opinions you expressed in an attempt to bolster your points of view were mystifying to many of us here at the company.

We were trying to figure out, for example, how three profitable quarters in succession in 1999 and nine consecutive analyst’s upgrades of our stock (beginning April 1, 1999 through Nov. 23, 1999) constitute “turmoil” at Callaway Golf. I assure you there is nothing approaching turmoil here. Coincidentally, the day your article appeared, a respected analyst named John Weiss, formerly of Montgomery Securities, initiated coverage for Thomas Weisel Partners with a “strong buy” rating on our stock.

These and six other institutional analysts who closely follow our company have carefully studied the trends here and have concluded that we have turned the ship around and are doing things right. Their consensus is that we have a pretty positive outlook.

ELY CALLAWAY

Chairman & CEO

Callaway Golf Co.

Carlsbad, Calif.