Is anyone else riding the CLCT train? I don't think it has any brakes!
opportunity
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Up well over 350% since March something, and by far at an all time high.
Early American Copper, Bust and Seated.
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opportunity
Posts: 985 ✭✭✭✭
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You won't be able to ride it for much longer!
Read more:
https://finance.yahoo.com/news/collectors-universe-acquired-investor-group-142400274.html
Wow!
Collector, occasional seller
LOL what? What are the implications of this?
edit: Wow, I had no idea they were going private. Holy cow.
Early American Copper, Bust and Seated.
Looks like the sale may have been partially defensive against Alta Fox. Nat Turner and team are keeping CEO Joseph Orlando.
https://www.bloomberg.com/news/articles/2020-06-18/collectors-universe-investor-seeks-to-replace-board
My guess is CU will be retooled to maximize profitability. That’s typically the equity owner playbook. So they will be watching their EBITDA closely. If my experience in a different sector is any indication they will aim for 40-45%. So either raise revenue or cut expenses, preferably both.
TurtleCat Gold Dollars
At $76.99 now.
Fingers crossed for the forums!
Wow. I have a token number of shares...... Been good so far, but sounds like times are a changin'.
Are you saying they may shut them down?
Early American Copper, Bust and Seated.
Nope! I don't even want to think that!
Wow, the high today was $81!
Wow, Nat Turner is a serial entrepreneur who graduated with a bachelor's degree in 2008, sold a company to Google in 2010 and another to Roche Group in 2018.
This should be a good sign for growth vs. traditional private equity.
https://natsturner.com/about
I really hope not. I don't think they would do that.
Early American Copper, Bust and Seated.
I seriously doubt they would do anything with the forums. It’s a very cheap way to have engagement with their core customers. If anything, they might find a way to encourage more engagement from employees. It would be effective and inexpensive and potentially lead to greater satisfaction which tends to lead to the core spending more.
TurtleCat Gold Dollars
I’m certainly not a financial wizard but this doesn’t sound good to me. Public company going private to maximize profits and then perhaps going public again doesn’t sound like it’s in the little guys best interests.
Nothing usually is.
"Gold is the canary in the financial coal mine." (Alan Greenspan)
"I only golf on days that end in 'Y'" (DE59)
Have the fundamentals been tossed out the window?
Price to earnings is already high at 52, and the dividend down below 1%.
National Commemorative Medals of the U.S. Mint:
https://www.pcgs.com/setregistry/u-s-coins/medals-tokens/national-commemorative-medals-united-states-mint-1940-present/alltimeset/195526
.
Successful transactions with : MICHAELDIXON, Manorcourtman, Bochiman, bolivarshagnasty, AUandAG, onlyroosies, chumley, Weiss, jdimmick, BAJJERFAN, gene1978, TJM965, Smittys, GRANDAM, JTHawaii, mainejoe, softparade, derryb
Bad transactions with : nobody to date
I know there has been an influx of graded Pokemon cards. CGC has gotten into Magic the Gathering. Grading must be fairly lucrative recently.
Well now...... Reminds me of the ancient Chinese curse -"May you live in interesting times." Usually results in restructuring and mid to upper level personnel changes. Cheers, RickO
Well RickO, we can apply that to several aspects of our lives these days!
We are living that curse!
Fortunately though, we had it good for a very long time beforehand.
Happy, humble, honored and proud recipient of the “You Suck” award 10/22/2014
Newport Beach, California is expensive.
They could move to Pittsburgh.
Just a thought.
My Saint Set
An East cost office would be awesome
100% positive transactions with SurfinxHI, bigole, 1madman, collectorcoins, proofmorgan, Luke Marshall, silver pop, golden egg, point five zero,coin22lover, alohagary, blaircountycoin,joebb21
I understand why it was founded there given David Hall, etc but you’re right. Establishing a presence in a less expensive area would save a great deal over time. The problem would be relocating the talent.
TurtleCat Gold Dollars
Sold all but 5 shares. A token nickel's worth. ( (as it were)
Having an investor who understands the collectibles market is a big plus. Many of these private equity firms know little beyond the numbers of what they are buying and make expensive management mistakes that often tank their acquired company. Retaining the current CEO is not unusual at least through a transition period.
... and lots of them.
When was their IPO?
My PCGS Set Registry Profile
9/1999
TurtleCat Gold Dollars
@ReadyFireAim said: They could move to Pittsburgh.
With the relatively reasonable cost of living and tech talent at Carnegie Mellon, that’s not a bad idea!
Steve Cohen is in the mix.
https://www.bloomberg.com/news/articles/2020-11-30/steve-cohen-and-d1-capital-team-up-to-buy-collectors-universe
Cohen Private Ventures, which invests the personal capital of hedge fund billionaire Steve Cohen, is teaming with Dan Sundheim’s D1 Capital Partners and sports card collector Nat Turner to take collectibles-grading company Collectors Universe Inc. private for about $700 million.
The deal represents a 3.7% premium to Friday’s closing price of $72.55. Shares of the Santa Ana, California-based company have more than tripled this year as consumers dedicate more time to hobbies like collecting during quarantine and lockdowns. Collectors Universe provides authentication and grading services to buyers and sellers of memorabilia, including sports cards, coins and vintage autographs.
...
He who knows he has enough is rich.
Normally a higher share price results in a lower dividend percentage. Frankly, I'd rather have the higher stock price.
MY COINS FOR SALE AT https://www.pcgs.com/setregistry/collectors-showcase/other/bajjerfans-coins-sale/3876
This will destroy the value of PCGS graded coins. The 3rd-party neutrality concept that garners trust from collectors will be absent. Gradeflation for profits anyone?
Guess Mets player cards will get higher grades
I think it is very interesting that the market price of CLCT is higher than the offer price. This must mean that the market expects another offer, or the current bidder to raise their offer.
It will be interesting to watch this all unfold.
Join the fight against Minnesota's unjust coin dealer tax law.
Makes me wish i was able to buy more shares in June but hey im still happy!! Im curious of why NGC doesnt have anything??
Amazing
I forsee that they perceive that grading fees are under valued and that they can share in the upside of grade inflation based upon price differential on grade reassignments. This will not be a stabilizing event for collectors.
OINK
It is quite possible that they believe they can increase volume without a need to inflate grades or change grading fees.
These are smart people. They must know that intentional grade inflation all but killed ANACS and PCI as competitors.
I'm curious how much moving out of California to the more affordable states would increase their bottom line. I would wager it could be in the 20% or more range. I also wouldn't worry about convincing employees to follow along unless they decide to cut their pay because their cost of living would go down so much!
It all depends on where they would go and whether they would enjoy living in the new area. It’s tricky to uproot people. Only the graders would be moved, though. And since many (all?) have/are/will be dealers they have to consider the market for that. Internet buying does help, of course.
I think they would do it in phases. They could establish part of their business in one location and slowly grow it and move over other business functions as it makes sense. That would probably be the first sign of a big relocation. Although they recently acquired real estate near them so I doubt it will be anytime soon.
TurtleCat Gold Dollars