Shares of Sports Supply Group (NYSE: GYM) climbed more than six percent, rising 9/16 to 9-5/8, on Thursday after the company announced that it has become the exclusive sporting goods manufacturer and distributor for online auction site uBid.com (Nasdaq: UBID).
Sports Supply Group manufactures under the brands and licenses of MacGregor, Voit, AMF, Portapit, Champion and Junglebug, and all of these brands and licenses will be available on uBid.com. Under the terms of the deal, uBid.com will be Sport Supply Group’s exclusive distribution channel for online auctions.
Meanwhile, Sports Supply Group is busy working on its own online sporting goods store, which will go online at esportsonline.com on June 3. The company recently announced that it had received $40 million in credit from Comerica Bank to develop e-commerce.
With a market capitalization of $71.1 million and price/earnings ratio of 13.3, Sports Supply Group could be cheap right now, especially if investors start looking at this stock as an Internet play.