CLCT Happenings

Coinosaurus

Interesting recent SEC filing:

https://marketwatch.com/investing/Stock/CLCT/SecFilings?subview=secarticle&sid=1330755&guid=14226003&type=312

[Deleted User]

Can someone please explain in English what's going on here?

edwardjulio

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Boosibri

Are you referring to the large sale by Richard Duncan?

edwardjulio

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Jimnight

I'm lost

AUandAG

Alta has a target of $50/share if they can get their way. Guess we will see.

bob

Bochiman

As a shareholder, I've been ready to divest at ~$30 for awhile now....since they halved their dividend a few years ago......now, if they get close to this mythical amount they mention, I will sell. For now, I'll keep it just north of $30, but, get close to that $50+ and......

topstuf

Is this where Tradedollarnut is putting the proceeds?

yosclimber

Alta Fox holds 5.4% [corrected] of the CLCT stock, and wants to replace the board with their own candidates.
The filing mentions PSA but not PCGS.

Here's a February, 2020 Q2 financial press release:

The $3.8 million revenue increase in this year’s second quarter to $19.5 million included a $2.1 million, or 35%, increase in cards/autographs revenues and a $1.8 million, or 21%, increase in coin revenues. The cards/autographs revenues represented a second quarter record for that business. China coin revenues at $2.0 million in this year’s quarter were up $1.3 million, or 185%, from last year’s second quarter.

The 19% increase in revenues to $39.7 million in the first six months of this year, represented record first half revenues and included a $4.1 million, or 34%, increase in cards/autographs revenues and a $2.7 million, or 14%, increase in coin revenues. The cards/autographs revenues represented record six months revenues for that business. China coin revenues at $3.3 million in the first six months were up $1.5 million, or 86%, from last year’s first six months.

The gross profit margins at 56% and 58% in this year’s second quarter and first six months, as compared to 56% and 57% in last year’s second quarter and first six months, reflect improved gross profit margins in our coin business due to higher coin revenues, partially offset by lower gross profit margins in our cards/autographs business, as we build capacity to reduce the record backlog in that business.

https://www.globenewswire.com/news-release/2020/02/04/1979825/0/en/Collectors-Universe-sets-Record-Q2-Revenues-and-1st-Half-Operating-Results.html

pruebas

@yosclimber said:
Alta Fox holds 25% of the CLCT stock, and wants to replace the board with their own candidates.
The filing mentions PSA but not PCGS.

Every time private equity takes over a company, they load it with debt and there is a long, painful march to eventual death. These companies are often run solely for the benefit of the investors and have horrible customer service and demoralized employees because operations is starved of resources.

Let’s hope this is not in CLCT’s future.

AUandAG

@yosclimber , isn't their holdings under 6%?
Couple of cautions here: China should be growing exponentially as it's a fresh market.
Alta want to take the company "digital" whatever that means.

bob

yosclimber

@AUandAG said:
@yosclimber , isn't their holdings under 6%?

You are correct - 5.4%.
I did not read it carefully and I counted the 5.4% 5 different times!

johnny9434

Time will tell

ricko

Having spent years in business, and been through several 'takeovers', I can attest that it is rarely good for employees and the long term company outlook. Could be rough waters ahead. Cheers, RickO

TurtleCat

As always it depends. The company I work for is on the second equity owner. The first was only concerned with EBITDA at 40%. As long as we hit that we were fine. We sold to another equity firm last year. They gave us 2 years to not match the previous EBITDA so we could invest and acquire another company. Overall it’s been good for us. Our revenues are 4x what they were 5 years ago.

If the employees of CLCT have a good plan and execute it well, no reason why it won’t work for everyone.

fivecents

Buy CLCT dudamages. PCGS stock has already made a bookoo of $$$$$.:p Bet lots of gold being ceritified right now. They be trying for the PCGS 70 yo.

ms70

FWIW, It's listed as overvalued on Yahoo Finance.

https://finance.yahoo.com/quote/CLCT

Dave99B

1 year chart

Dave

291fifth

Can someone explain the huge spike in value since the onset of the Covid 19 crisis? I don't follow the stock and would like to know just what has caused this near doubling in value.

pruebas

Pump & dump.

Boosibri

Activist investors take many forms. Some are constructive, some are destructive.

The eBay agitation to spin off PayPal and later stubhub is in example. eBay argueay wasn’t wrecked as a result but value was unlocked by capturing the multiple expansion differential for a FinTech company like PayPal vs the slower growing eBay.

Other deals are much more destructive to long term shareholders, employees and stakeholders using the companies products.

A leveraged buy-out was described above, a private equity takeover as well. A 5% ownership interest to get seats on the board to drive a change agenda is neither of the “takeovers” describes.

fivecents

@ms70 said:
FWIW, It's listed as overvalued on Yahoo Finance.

https://finance.yahoo.com/quote/CLCT

You already missed the party son. Still a little cake and ginger ale left over though. jmo