Cobra Golf: Speak Loudly, And Sell A Big Stick

For years, Cobra Golf Inc. was about as exciting as the quiet, rolling hills behind its Carlsbad (Calif.) headquarters. Its clubs had a loyal, if modest, following among golfers. But to investors, the real action was at Callaway Golf Co., a Carlsbad neighbor: Callaway's shares have soared sevenfold since it went public in 1992.

Nowadays, investors have an entirely new take on Cobra, No.46 on BUSINESS WEEK's Hot Growth list. Thanks to its King Cobra line of oversized clubs that allow golfers to make better contact with the ball, the company looks a lot more interesting. Analyst Boyd Poston of A.G. Edwards & Sons says earnings could climb 66% this year, to $12.8 million, as sales soar 50%, to $84.8 million. And Cobra's share price has climbed 50%, to 31, since its initial public offering in September.