You’ve probably heard plenty about the fallout from Tiger Woods's heavily publicized car crash. But enough about him — what about our portfolios?
Woods, of course, is big business — and that means that the story, one way or another, has touched its share of publicly traded stocks. Marketers have debated the effects, both short and long-term, on companies that sponsor Woods and rely on him as a spokesperson. Here at SmartMoney, though, we decided to go straight to the bottom line and check out how some key Woods-related stocks are doing in our Tiger Trouble Index. The index looks at the stock prices of six companies associated with Tiger Woods before and after news of the accident broke to see how they’ve fared since the story unfolded.
While far from scientific, our TTI shows that Tiger-related stocks have dropped from the market's close on Nov. 25 (the last close before the accident) through Dec. 1, while the Dow Jones Industrial Average posted a modest gain. We took the average of the change in each stock’s price between the market close on Nov. 25 and the closes on Monday, Nov. 30 and Tuesday, Dec. 1, to determine whether the group as a whole was taking a hit. By the end of Monday trading, the TTI had had gone down 3.2%. On Tuesday, TTI components gained with the broader market’s rise, though it still lagged, posting a 2.1% drop since the accident.
Regardless of the market action, there’s little question that Woods’s polished image has taken a hit from the incident and the circumstances surrounding it. Woods issued a statement Wednesday, saying "I have let my family down and I regret those transgressions with all of my heart.." The Florida Highway Patrol said Tuesday it plans to issue Woods a careless driving citation for the crash, including a fine and points against his license, and he has issued a statement saying that injuries he received in the accident leave him unable to play at the Chevron World Challenge this week, a tournament that benefits his charitable foundation. Some of his sponsors, including Nike, have said that they’re standing by the golfer as he deals with the fallout from this incident.
Here’s a look at the individual stocks in our Tiger Trouble Index:
Quoted in the following: Woods and Stocks: A Tiger Trouble Index: http://bit.ly/4tsYBr via @addthis