Fractional Shares in Cards/Memorabilia
bobbybradyjr
Posts: 95 ✭✭✭
Many here won’t care for this article but it appears this is here to stay:
https://nypost.com/2021/02/20/man-turns-100m-sports-memorabilia-collection-into-stock-market/
2
Comments
My opinion.. if I want a card I'll buy it outright. I'm not good at sharing Lol.
You can't own every card out there so I don't need some share of it that I can't even hold in my hand I'll pass
Sounds like a good option for those who don’t care about collecting cards!👍🏻
+1
I'm old school too but it is interesting to me what is happening today in the hobby world.
I guess people can collect in different ways. To each their own.
I find this repugnant, but I've actually been able to rationalize this to a degree. Many of us like to put our more valuable cards into safe deposit boxes and enjoy looking at, and sharing, the images online. Not everyone is comfortable keeping a Jordan rookie in the house. So for at east some of us, owning a card is more important than having possession. With these policies, "owners" can look at images of their cards and share them with their friends and rivals at a small fraction of the cost to take possession.
I wouldn't be interested in doing this, but I can kind of understand why collectors might be.
>
I Agree, It's the same as looking at Pairs of Somethings in Magazines, pictures of things are OK occasionally, but if you can't get your hands on them...then what's the use!!!!
Thanks
YeeHaw!
Neil
Every person I have seen comment on Twitter about buying into these fractional investments posts cards they own.
You can be a card collector and invest additional funds into bigger cards that are out of your reach.
It doesn’t have to be all or none.
It seems like two totally different groups/strategies.
Investors. For them, fractionals make total sense. They don't need to have the physical card. They can get in on a hot card's appreciation without having the money to buy a card outright. Or even if they have that cash, they can diversify and spread their funds over multiple fractionals.
Collectors. This seems to be like many of the commenters above (as well as myself). I want to hold and look at my cards. I collect because I love physically having the cards. Price appreciation is a tertiary concern for me. I would love my collection just as much if it never gained another cent. I would not love my collection if it was comprised of a bunch of 1/100th shares of cards.
there's no wrong way to collect.
wish them the best, not for me (at this moment) but i'm tuning in to either see the fireworks explode or the titanic go down. either way, it's free entertainment.
then adjust my stance accordingly.
Fractional ownership is good for card values.
I'll go ahead and admit that I am one of the investors in a fractional share. I got in on the IPO of a 1910 Ty Cobb PSA 10 offered on Collectable, and purchased 400 shares at $10/share.
I think it's innovative. For investors, it's a way to diversify their portfolio in a tangible asset class. For collectors, it offers the opportunity to "own" an iconic card that they otherwise will never be able to afford, even if it is just a piece. Collectable will actually let shareholders come to their vault and view the card, so I plan to do that sometime this year.
kudos for just coming out and claiming such amongst a high level of skepticism.
good in my book just for that!
A fractional share in an Ali belt in which the owner keeps 2/3 of the shares. My god are humans dumb.
wonder how many collectors realize that they are merely fractional owners in every card they've purchased since the day they were married? and just as laughable, 50% of the other owners probably have never touched the actual cards either. 🤯 🔫
it's funny because it's true.
30/70 in some cases.
Sad but true!
It certainly doesn’t have to be all or none.
My 20 year old son bought and sold fractional shares of Bitcoin and did very well.
To me, this is very similar. Asset sells for a price and “shareholders” are rewarded for their investment.
And they get to say they “owned” a piece of a card like a 52 Mantle for a small buy in. Again, to each their own.
The 53 Topps Mantle PSA 10 is up just under a million dollars. Shares are up 39%. I am sure the shareholders aren’t too concerned about what the naysayers think.
Reminds me of an ETF. Maybe it's apples and oranges.
Fractional; same as GOOG, AMZN.
Sounds like a cool idea for fun, investing, speculating.
Go for it if you feel like you can make a couple bucks
How liquid is the investment? If I have say 10K into it, how easy is it to cash my 40% lift?
It’s trading live. I don’t know anything other than that.
The Jordan is the one that’s up huge. Up 499.8%. Good thing these investors didn’t take your advice.
Damn I remember when this was a $16,000 card and fell back $12,000.
So how does voting work. Is there some sort of "board" or voting is open to all within that time and they just tally the votes at the end?
I saw several other tweets the past few weeks on buy outs and it goes by shares. Think it was a 2/3d’s vote needed.
Didn't you buy into one of these schemes then back out when you saw the terms? The details on these things matter. Liquidity is a real thing, you know this.
No I backed out because I have to get approval from my compliance department on everyone I do.
I was the one who said this was a game changer.
Your compliance manager had it right.
Only because it’s a registered with the SEC investment.
Has nothing to do with the specific offering.
The owner gets to keep the item and monetize a portion of it at the same time. Brilliant!
You certainly did. And you were right.
Buyout was rejected at 160K offer!
Wow! This stuff is very interesting to watch.
The Jordan on Collectable had a 265K buyout offer from an original 100K valuation, which was rejected 65/35 if I remember. The fractional trading exchange opened a week later and the $10 shares jumped to $60 and are $58 as of today. I have my limit of 5 shares there and 4 shares of the unopened 86 Fleer box @$25 apiece which will start trading March 29th I think.
I love my cards in my PC, I love the cards I'm holding, but to sell, I love my flips and I love my fractionals. I know I'll have the former forever and the other 3 will help me add to the first.
Lotta ways to skin a cat...
annnd Rally just emailed me to be on the pre-offering distribution for the 79 OPC BBCE Hockey Box, so in for 3 shares there@30 a share w/ a $300k valuation.
Do you prefer Rally over Collectable or is it too early to tell?
agree 100%
I have to much S**t; so if you working on sets or are a player/team collector, send me your want list, with conditions desired. Keep in mind I have a another job so please allow me a few days to respond.
I'd be interested in taking a look at the financials. There are probably some "management fees" involved to "acquire" the piece and then some more fees on a potential sale.
I don't have a problem with this so long as everything is up front.
I bought a fractional share in a race horse last year and the deal is completely in the favor of the majority owner and the entity selling the fractional shares (who's "profit" is a whopping 15% "due diligence fee" + 10% of track earnings). It was a bad deal that won't pay off in cash unless the horse is very successful at stud but I do have enough understanding of finance to realize exactly what I was getting into. I own 1/1000 of a 12.5% share in the horse. Basically a couple of hairs in his tail.
I just thought it would be cool to say I had a tiny piece of a horse that ran in the Kentucky Derby. Honestly I didn't think at the time he would actually win the Kentucky Derby but he did. There are some very, very rich people who don't have one of these...
Pride of ownership, baby!
Too early, but first impression is Rally is going across a ton of asset classes...wine, cars, historical documents, luxury swag like purses and watches etc. Collectable is basically just sports memorabilia (of one guy I think, right? at least to start?)
Collectable has a secondary exchange that is spinning up to allow weekly trading of shares after a 90 lock up after IPO fills. Rally has just a 1 day window every 90 days so far. No likely that.
There is and will be a rush into this market ( I am getting in line for Dibbs, which has a lot athletes backing it including KD etc
(EDIT, KD is behind a different platform, StarStock) and is focused on the recent blingy modern cards)...so we will see how it shakes out. You'll see a lot of athletes jump in as investors and sell/monetize their swag on these platforms I believe.
The key to staying young is trying new things....so tossing a few hundy at this stuff is not a big deal. Some people have philosophical issues, that's cool. Some people have well grounded financial and trading structure issues....it's good to look at all sides. It's also good to get out of the box, even if it's just to dip a toe in the water. As I said, it's a means to an end to add some more Pujols and Yzermans and Barry's and Mattinglys and Trammells etc. Plus maybe have fun and learn something while you're at it, as Fat Albert used to say. Hey, hey, hey.
True collectors aside, it's simply the same as buying into a REIT. A Group of people all putting in $30k for instance to buy a group of houses that appreciate in value.
One big difference though... Houses are revenue producing assets - cards are not.
In a down market, all you have with a card is a depreciating asset that doesn't pay you rent to take up space in your closet.
Interesting take. I would say there are several people that would disagree with you about cards not being revenue producing items.
And, I am old enough to remember several housing busts when revenue was not being produced. Nothing is a sure thing.
I can't really dis this. As others have said, everyone can collect/invest in their own way. Personally I'd prefer to own a card outright and hold it in my hand. I can't see myself buying a PWCC vault card (for multiple reasons, but I digress) only to let it sit there far away until I sell it. On the other hand, people with stacks of cash sitting in the bank are earning nothing. They need to find avenues to grow their savings. So why not this scheme?
OK. I'll bite. How does a card produce revenue? I understand that it does for the one who divides the card into fractions, but other than that, please explain.
Hope you backed him up at the WIN window.
cards, sure. but the top shelf items these fractional shares hinge on very rarely dip in any economy, whereas the most expensive house on the block is the first and fastest to depreciate in a down economy.
Revenue is defined as top line income. I wouldn’t view selling a fractional asset any differently than selling any other investment. Buy low and sell high.
I gave this a shot today for shits and giggles and tried to buy 5 shares of the Brady cards that went up. I bought right away and got a message that says I was placed in a virtual queue and would get an email if my buy went through. Guessing this is the way it goes with these now?
My shares are at the docusign point in the queue. On Twitter, Collectable said everyone should be a able to sign after 2pm EST. Check your transaction status. I bet you are in the same place.
This offering sold out in around 40 minutes. Incredible!
Nothing showing up for me. Oh well, maybe the next one.
Sorry man. I saw your tweet to them go unanswered.
It’s clear they will need some better servers and a few more CS people if they want to keep customers happy.
Just like buying really Promising stocks in my opinion. Not 100% guarantee for sure. It’s not going to get you rich. It’s not much fun and it’s barely brag worthy... but over time you’ll make a little money.
something like this would make me think twice. i would want immediate confirmation for obvious reasons. similar to confirmation of a trade. anything really. heck when i order a pizza, i get email confirmation instantly.
Yes. You're missing @scottfishvan 's point. And it's a good one. Houses, like bonds, savings accounts, and Microsoft stock produce revenue. You get some money and you get to keep your asset. Cards, even fractional interests, like gold, bitcoin, and Macy's stock do not. If you want to get any money out you have to sell a part of your interest. In a down market, which is what he was talking about, recall, you're paid to wait for a revenue producing asset to recover. It may never happen, but you get some kind of return. In a down market for an asset that doesn't produce revenue, you just have to hope it will recover.
None of this is to suggest that revenue producing investments are always better than those that don't, and of course revenue producing investments can suddenly stop producing revenue (just ask anyone who owned Macy's twelve months ago). It's just a risk you have to consider.