Coastcast Corp. takes $66.9 million secondary offering to the market.

Coastcast Corp., four months after selling its $29.76 million initial public stock offering, has filed with the Securities and Exchange Commission for an estimated $66.9 million secondary offering.

According to the April 13 filing, 2 million shares of the Rancho Dominguez-based company will be sold by its shareholders and 500,000 shares will be sold by the company itself.

The company, a manufacturer of premium-priced golf club heads, stated it intends to use the proceeds for general corporate purposes, including plant and equipment upgrades.

All stockholders who are selling shares have held Coastcast stock since the company's inception, said Michael Yageman, who heads the issues underwriting effort for the L.A. office of investment banking firm Bear, Stearns & Co. Inc.

The shareholders who are selling "are looking to get some liquidity for a portion of their investment so that they can diversify their investment portfolio," said Yageman.

"These shareholders didn't sell any shares in the IPO. They've been in this stock for 14 years."

Coastcast Chief Executive Hans Buehler intends to sell 500,000 shares, or about 25 percent of the 2.2 million shares of common stock he presently owns, according to the filing.

Henry Present, vice chairman and company co-founder, will sell 855,000 shares, or about 37 percent of the 2.3 million shares he owns, according to the filing. Present, 70, is no longer active in the daily running of the company.

The balance of shareholder equity slated to be sold will be from original investors who are not Coastcast executives.

Yageman estimated the secondary sale will take place in mid to late May following a roadshow of presentations to analysts that is expected to stop in Los Angeles, New York, Dallas, Atlanta, Denver, Chicago, Minneapolis, San Francisco and San Diego -- cities with investors who participated in the IPO, said Yageman.

To date, the stock has traded between $15.75 and $33.88 a share on the New York Stock Exchange following an IPO pricing of $16. The secondary offering price is based on an estimated value of $26.75 a share, the price at which the stock closed on April 12.

Coastcast officials recently reported first-quarter revenue of $19.8 million, which yielded $2.8 million in net operating profits and earnings of 31 cents per share.

Revenues for 1993 were reported at $67 million, yielding net operating profits of $6.2 million and an 80 cent EPS.

San Francisco-based investment banking firm Montgomery Securities rated the stock a buy early last month. It forecast Coastcast's earnings per share would jump 62 percent to $1.30 a share in 1994 and another 23 percent in 1995 to $1.60 -- or twice 1993's profit.

Assuming that $1.60 EPS, and the analysts' predicted 1995 price/earnings multiple of 25, Coastcast's average stock price would work out to $40.

Montgomery Securities analysts John Weiss and Philip Fisher admitted their earnings estimates were above the consensus of their peers at other investment banking firms, but they said they are convinced the others are overlooking two important criteria: market share and production capacity.

Weiss and Fisher based their rosier assessment on Coastcast's continuing position as the leading supplier of clubheads for high-performance golf clubs. They also stressed the company's ability to supply large quantities of these premium-priced items in a cost-effective manner.