Golf stocks in rough on Wall Street

NEW YORK – The U.S. Open is a hot topic in sports circles this week, but golf stocks are a bit less popular on Wall Street. Though stars like Phil Mickelson, Tiger Woods and Vijay Singh have earned millions from the game, publicly traded golf companies and their shareholders have had a much tougher time making a profit.

Like many industries, the business of golf has gone through a cycle over the last several years, surging through the 1990s and declining after the bubble burst.

“There’s a lot of money going around and being spent in golf, but the investors in these companies are really not benefiting from that,” said Brent M. Wilsey, president of Wilsey Asset Management in San Diego.

Eye-popping greens fees might make you think that real estate investment trusts would be a good way to make money in golf, but maintaining those beautifully manicured courses leads to substantial overhead costs. Golf Trust of America Inc., which once operated 47 courses, has been in liquidation mode since 2001.

The options in equipment makers are more varied, but not necessarily more appealing. Adams Golf Inc. went public to great fanfare in 1998, and saw its stock price surge to nearly $20 before nearly going out of business.