Nerds and transportation buffs will both know about the Segway Personal Transporter, the funky single person vehicle that looks like a cross beween a step ladder, a unicycle, and a horse-less chariot. While this futuristic device has yet to make it into mainstream use and acceptance, the company has recently decided to target the golf market and is offering a modded version that acts as a mix of caddy and golf cart, taking up a little more space than the former, yet allowing greater movement than the latter. Here’s a quote from their site:

Special low-pressure tires barely disturb the turf and provide a smooth ride over a variety of terrain. Based upon the Segway x2, it features new LeanSteer technology, a wireless InfoKey controller, long-lasting Saphion® lithium-ion batteries and includes the following components:

* Golf Bag Carrier Attachment secures your golf bag to the Segway x2 Golf and allows for easy dismount and club access while playing. Removes easily for storage and transport

* Scorecard Holder keeps your scorecard, golf balls, and tees readily accessible

I know I’d like to try one. I would guess that some golf resorts will buy a fleet of these and offer them as an alternative to riding in the cart…

I recently stumbled upon an analysis of the retailer Golf Galaxy that also provided a window onto the golf industry in general. Here’s a quote:

Golf Galaxy is still a rather small retailer, with only about $200 million in fiscal 2006 sales, yet it grew sales by 50% last year and predicts 52%-57% growth this year. What really impresses us about Golf Galaxy is that it was founded by two former Best Buy(Nasdaq: BBY) executives and that the rest of the management team includes players from Select Comfort(Nasdaq: SCSS), Calloway(NYSE: ELY), and Target(NYSE: TGT).

The number of golfers in the USA has been fairly stagnant for a few years now, and according to the National Golf Foundation, the number of rounds of golf played in 2005 was down slightly from 2004, which was also the first year in the previous three years that the number had actually increased. Even so, it looks like 2006 might be a good year, as the number of rounds played has risen just less than 2% year-to-date.

In the recent CIBC World Markets report covering the sporting goods sector, Golf Galaxy is rated as a sector performer. While they face formidable competition from the large operators, they have the opportunity to gain market share from on-course pro shops and smaller retail chains. Weak sales trends are expected to be offset by continued margin upside which will help the company meet estimates for FY06.

With Golf Galaxy’s shares having fallen 30% year-to-date, we believe the current level has limited downside.