Bowers Resigns

Coin Finder · February 4, 2003 4:41AM

Collectors Universe Announces Resignation of David Bowers From Board of Directors

NEWPORT BEACH, Calif., Feb. 4 /PRNewswire-FirstCall/ -- Collectors Universe, Inc. (Nasdaq:CLCT), the leading provider of value-added grading and authentication services and products to dealers and collectors of high-end collectible coins, sportscards, currency, stamps, sports and entertainment memorabilia, autographs and other collectibles, today announced that David Bowers has decided to resign as a director of the Company. Additionally Mr. Bowers, whose employment as President of Bowers & Merena terminated on January 24, 2003 pursuant to his employment agreement, declined an offer by the Company to remain at Bowers & Merena as Chairman-Numismatics of that company.

"David Bowers has been a great resource to Bowers and Merena during the growth and development of that business," stated Michael Haynes, Chief Executive Officer of Collectors Universe. "Now that he has decided to follow the path of his former partner Ray Merena by departing from an active role in the Company, all of the employees of Bowers and Merena and Collectors Universe express their best wishes to David Bowers for his future endeavors."

About Bowers and Merena Galleries

Bowers and Merena Galleries is one of America's most renowned and successful coin auction firms, holding the most records for sales of individual U.S. coins. It offers coins monthly on eBay through the Bowers and Merena Express Internet Auctions and through quarterly catalog auctions that use telephone, in-person and Internet bidding. www.bowersandmerena.com

About Collectors Universe

Collectors Universe, Inc. is the leading provider of products and essential services to the high-end collectibles market. The Collectors Universe brands, including Professional Sports Authenticator (PSA) are among the strongest and best known in their respective markets. The Company grades and authenticates collectible coins, sports cards, stamps, and autographs. The Company engages in collectibles commerce, selling coins, currency, sportscards and sports memorabilia, and entertainment memorabilia through direct sales, auctions, catalogs, and the Internet. The Company also compiles and publishes authoritative information about collectible sportscards and sports memorabilia, United States and world coins, and entertainment memorabilia. This information is accessible to collectors and dealers at the Company's website, www.collectors.com , and is also published in print.

SOURCE Collectors Universe, Inc.

CO: Collectors Universe, Inc.; Bowers and Merena Galleries

ST: California

SU: PER

http://www.prnewswire.com

02/04/2003 07:02 EST

truthteller · February 4, 2003 5:02AM

Ray Merena gone, Rick Montgomery gone, Dave Bowers gone. What happens to a company when all the smart, intelligent people are gone.......Enron.....Worldcom...........Pentagon............................business gone.

TRUTH

abuell · February 4, 2003 5:13AM

Reminds me of a situation im my home town only a few years ago. Local fellow spent his life building up a very successful towing company. He retires and his son takes over. The son is bright and continues to expand the company. Then in the late '90's along comes the chance of a lifetime. A huge outfit is going national wants this guy to be the centerpiece of this national operation. Giant stock package, a fancy title in the new organization, life on easy street. Once they get the company he gets the stock and a job with nothing to do. Before you know it that high flying Road One stock is in the pink sheets and poof the whole thing is up in smoke.

Barry · February 4, 2003 5:48AM

Similar thing happened in medicine 5-10 years ago. Companies popped up telling docs they could manage the practice better as a busniess. Lots of docs sold, got paid in stock, and lost their shirts when these companies couldn't do what they promised, floundered and the stock went in the toilet.

originalisbest · February 4, 2003 5:52AM

This news makes my stomach turn.

While I've since found other avenues for very nice quality rare coins, to see Dave Bowers' career at the company he helped found end in this manner is very disappointing indeed.

I hope he'll remain very visible in the world of numismatics!!!

Cameo CC · February 4, 2003 6:07AM

Sorry to hear this. He gave the coin industry many good times.

Todd

coynclecter · February 4, 2003 6:11AM

He didnt die guys. My guess is he'll still be into coins for many years to come. Wonder what his next coin venture will be. Probably has something in the works already.

paigowjohnny · February 4, 2003 6:15AM

I hope he dumped all that crappy CLCT stock...

DesertLizard · February 4, 2003 6:17AM

I do enjoy and own many DB books BUT does one man make a company? A business? An industry?

If this is the case then the hobby would have been down the drain long ago. It is not the end of the "Coin World" [pun intended!]

keithdagen · February 4, 2003 6:20AM

I do enjoy and own many DB books BUT does one man make a company? A business? An industry?

They can. When you think of Wal-Mart, do you think of whoever the CEO is, or do you you think of Sam Walton?

beartracks42 · February 4, 2003 6:20AM

This may end up being a good thing for Mr. Bowers. What with all of the negative stuff going on at CU and most of his best people gone from B&M, it is not surprizing that he is leaving also. I think we will continue seeing and hearing from Q. David Bowers in this hobby!!!

Johnscoin · February 4, 2003 6:27AM

Here's a note that Dave had published in a recent numismatic bibliomania society newsletter. If you're interested in receiving the newsletter go to Numismatic Bibliomania Society

Dave Bowers writes: "I am writing to state that I am
overwhelmed and amazed by the calls and e-mails I have
received regarding the sudden termination of my employment
by the new CEO (Michael Haynes) of Collectors Universe,
who arrived on the job on January 1. I have had offers of
money, assistance, help with moving, loans of books, and even
lodgingyou name it! I never expected to have such an
outpouring from many of the largest names in numismatics,
including quite a few competitors! Indeed, my e-mail file from
well-wishers could well form a nucleus for a book, Whos
Who in American Numismatics. All of this is inspiring and
wonderful to me, and I am extremely grateful. Please pass
my appreciation along to the many NBS members who have
been a part.

As mentioned in my earlier note to you, my research and
writing should be okay in the future except that my library
of thousands of items is packed in two hastily rented premises,
and it will be some time until I can sort everything out and
determine my legal options. All of this happened unexpectedly
and, as you might expect, has caused many sleepless nights.
Ditto for my other top staffers, Christine Karstedt and John
Babalis.

My spirit and my enthusiasm for numismatics and the people
in it are as bright as ever. I do not yet have a business identity
or telephone. And he stated his contact information.

Hopefully this may clear up some information from everyone and proves interesting. Hopefully we'll see him back soon!

dakra · February 4, 2003 6:29AM

What I wouldn't give to be a fly on the wall at PCGS.

-Dave

Coin Finder · February 4, 2003 6:32AM

Did I read that right, they took his library and he may need legal counsel?

On second reading it looks like he moved all his stuff to a temp location. Man what a bunch of A$$ holes

Tbig

Johnscoin · February 4, 2003 6:34AM

No, I believe it states that Dave had to pack up and get his library out of the office quite quickly. It was quite large and consisted of a huge area. So, I believe he just won't be able to easily access everything as easily as he'd hope.

CalGold · February 4, 2003 6:38AM

Sounds like the new CEO convinced the Board that now that CU owns the Bowers "brand" they do not need the man. They may just find out that selling collectables is not like selling manufactured goods, and that the "good will" value they purchased was tied more closely than they realized to the reputation and trust in individuals.

All other considerations aside, I think that consignors and buyers will now pause and reflect before dealing with B&M, andl new management will have to prove itself a worthy successor.

CG

DCAMFranklin · February 4, 2003 7:02AM

They don't call it coin friends, it is a coin BUSINESS.

I'm certainly don't have access to the books of B&M. However, given all that has occured there recently, I feel safe in assuming they were bleeding red profusely. Remember, CLCT is a corporation and they have a fiduciary responsibility to their shareholders. They are responsible for providing a return on the value of the company. For years now, that stock has gone 1 direction - DOWN! That is until Dec. '02, when drastic measures were taken to bolster the stock value. As a result the stock has more than TRIPLED since the end of November. That's called getting it done!

He may have known his coins and authored some nice books, yet that doesn't say anything about his ability to manage a business. Clearly, he wasn't getting it done and his employment contract was terminated. Many a man, in many a kinds of business, have sold their operation to a consolidator, such as CLCT. Upon being placed on a fat salary with perks, they suddenly don't do all the extras they did to survive prior to the sale. They don't hussle quite as hard. They do things to make themselves appear to be busy, but they don't do productive, money-making activities. My bet is that is what occured here and he will have to turn up the productivity to be a valued asset elsewhere. Just my opinion.

Android · February 4, 2003 7:05AM

Reading Mr. Bowers e-mail saddened me. To be so unceremoniously dumped by some ra-ra corporate pinhead is an absolute insult. We are watching the beginning of the end for CU. It is plainly obvious to me that the "powers that be" don't understand what a potential impact on their company this may be. If I were David Hall, I'd do everything I possibly could to take PCGS private again.

Andy

kranky · February 4, 2003 7:16AM

<< They are responsible for providing a return on the value of the company. For years now, that stock has gone 1 direction - DOWN! That is until Dec. '02, when drastic measures were taken to bolster the stock value. As a result the stock has more than TRIPLED since the end of November. That's called getting it done! >>

Actually, CLCT did a reverse 1 for 4 split on December 9th, so you need to divide the current price by 4 to compare to pre-December 9 prices. Their stock today is at 2.80, which is equal to a pre-split price of 70 cents, meaning the stock is just about exactly where it was in November.

redhott · February 4, 2003 7:20AM

Today's close on CLCT stock was 2.80, end of Nov. was 3.12, low for the past year was 2.00 on Oct 11. These prices reflect a relatively unusual four to one reverse stock split that took place recently, meaning that there are now one-quarter as many shares outstanding as there were previously. You may recall that prior to the reverse split, the old stock traded as low as fifty cents, which is now relected as a $2.00 low.

braddick · February 4, 2003 7:21AM

As smart and wonderful as David Bowers is, along with Rick Montgomery- there are many intelligent, honest, and hard working men of Numismatics.
It isn't just limited to a half dozen.

Submissions will continue to flow and we'll all be here to complain about the grades we get!
THAT won't change, no matter who the players behind the scenes are or are not.

DesertLizard · February 4, 2003 7:21AM

the sudden termination of my employment

Does this mean he was canned? I thought he quit?!!

There are 2 sides to every story. I would like to hear the flip side of this one.

rays · February 4, 2003 7:23AM

Michael Haynes, new CEO, was with Tangible Assets Galleries.

keithdagen · February 4, 2003 7:24AM

There are 2 sides to every story. I would like to hear the flip side of this one.

Dare someone to post a question to the Q&A tonight about what happened.

Coin Finder · February 4, 2003 7:30AM

DcamFranklin,

Point taken on the "getting it done." A reverse split on the CLCT stock gave it a jump.

I think Dave Bowers is a kind person and a knowledgeable person in many facets of the coin business. I don't mind so much what they did, but how they did it. I dont see him getting a fat salary and producing less, in fact I see him more prolific then ever!! I think it was the typical Corporate. BS line where everything he wanted to do had to get "Corporate Approval" and lots of red tape and mis communication.

Enron was "getting it done" until they got caught.

Anyway, I for one do not like the hammer mentality of some corporations that do downsizing in this manner. I would do it different. These are real people. They deserve respect and to be treated like humans, not like problems on a balance sheet. Who knows, they could be future clients or customers!

They had better get it done now because everyone is watching.

Tbig

dbldie55 · February 4, 2003 7:33AM

Looking at the 6 month stock trend it is only going one way. It did spike over 10 cents a share recently. Must be the result of this news. Certainly a positive for the company.

Whitewashqtr · February 4, 2003 7:54AM

I do enjoy and own many DB books BUT does one man make a company? A business? An industry?

YES!!

Did I read that right, they took his library and he may need legal counsel?

Do you really think Mr. Bowers paid for the library with personal funds? I would bet he ran it through the Company like every other businessman!!

We are watching the beginning of the end for CU

You got that right!!

Well.. how long before PCGS goes down the drain. The folks across the street are getting a mighty lot of attention.

DCAMFranklin · February 4, 2003 8:10AM

thebigeng- Enron was NEVER getting it done!! Now that all the transactions have been reviewed, all the limited partnerships have been reviewed and the entries have been corrected (now according to GAAP), that company wasn't making any money since they were just a gas distribution company. All of the metioric rise in the stock was due purely to felonious manipulation of the books.

Unless you were there on a daily basis to assess his productivity, unless you were there to review the financials of B&M, I don't believe you are properly qualified to judge whether he was "more prolific than ever". He is a human being and he does deserve respect. I would say the decision was a long time coming and the new man was decisive. I would bet that if you had a substantial portion of your net worth tied to the value of the stock (I don't, David Hall does), you would rather he make decisive decisions rather play politician spending your money with no accountability.

Kranky & redhott- I apologize about the stock values I quoted in my previous post. My charting service usually reflects stock splits immediately. That was not the case for CLCT. Though the reverse split sure destroys my "getting it done" argument, it SURELY reinforces the need to get it done!! I don't own any of the stock, however, if I had bought it for $6 to $8.80 back in 1999 and the beginning of 2000, I would be pretty hacked that it sits at the equivalent of 70 cents!! I would tend to wonder why entire board had not been replaced!

gmarguli · February 4, 2003 8:27AM

Bowers leaving was talked about for a LONG time. Who didn't know this was coming?

My understanding is that he is now free to sell all his stock (if he has any) on the open market without reporthing it to the public. If he has any of CLCT, I'm sure he's looking to dump it as fast as he can.

eagle7 · February 4, 2003 8:34AM

I never knew him in person but I have nothing but respect for Dave Bowers. One can not help but know that he loves coins and collecting them by reading his numerous books on the subject of coins. I have nothing but good to say about him.

Coin Finder · February 4, 2003 10:23AM

Gmarguli,

How long was this talked about??

Thanks

Mark

CLASSICS · February 4, 2003 10:59AM

not to worry, dave bowers was buying and selling some of the worlds rarest coins long before pcgs or collectors universe came along. as a mater of fact he was doing this before david hall was even born. in the early 1950s at the age of 19 he paid 4,700 dollars for a 1894s dime, which at that time was a unheard of price. he was the first teenage dealer to make over a million dollars in one year as a coin dealer, and has been writing some of the greatest books ever written on coins.....his knowledge is unsurpassed when it comes to business or coins.....so not to worry about dave, this guy has forgotten more than collectors universe will ever know.

stujoe · February 4, 2003 11:27AM

<< the sudden termination of my employment Does this mean he was canned? I thought he quit?!! There are 2 sides to every story. I would like to hear the flip side of this one. >>

I think the title of this thread is incorrect. Terminated to me means 'Fired', not a resignation.

The way I heard it was that he was asked to tender a resignation, he declined and was asked to get out by the end of the day. Not my personal knowledge of the incident but what I heard from someone who I trust and believe knows on another forum and it jives with what QDB said in the E-sylum newsletter I received ie: "sudden termination"

northcoin · February 4, 2003 11:44AM

Regarding reverse splits - I've experienced many of them in stock I've held over the last five years and I can't recall a a one that did anything other than tank thereafter. Maybe it is CU we should be feeling sorry for if this desperate move doesn't pan out. Glad to hear that we will still be hearing from Dave Bowers as time goes on and it may be opportunistic that he can separate himself from the garbage collectible business that has drawn down CU's stock. Can't say that I have been thrilled to see CU slabbing coins outside of PCGS and selling them whether as modern collectibles or World Trade Center Recovery pieces.

dakra · February 4, 2003 12:17PM

Dcam,
I find it strange that you can say

<< He may have known his coins and authored some nice books, yet that doesn't say anything about his ability to manage a business. Clearly, he wasn't getting it done and his employment contract was terminated. >>

But then you tell TheBigEng:

<< Unless you were there on a daily basis to assess his productivity, unless you were there to review the financials of B&M, I don't believe you are properly qualified to judge whether he was "more prolific than ever". >>

I presume by the first quote that you have some knowledge of David Bowers work ethic as the second quote you chide TheBigEng because he's not qualified to judge because he isn't there on a daily basis. I'm curious, Do you work for PCGS? Or Collectors Universe?

Thanks,
Dave

IrishMike · February 4, 2003 12:26PM

DCAM, don't quit your day job to go into the business of analyzing companies. You obviously don't know squat about it. Nothing personal, but sometimes when you don't know something you ought to remain silent.

numispro · February 4, 2003 12:37PM

NumisEd · February 4, 2003 12:37PM

Fired or resigned? I have heard many different stories. First it was Ruddy, then Merena, then Bowers..... They should change their name, since all of the founders are gone. How about Dewey, Chetum & Howe Galleries?

Dave Bowers is a collector at heart. Sure, he made some massive deals over the years, but I also have seen him write about $5 coins in great, great detail, all backed by history. He is a real numismatist. CU is making a mistake by hiring all of these psuedo-numismatists. You know, the one's that proudly announce that they were the CEO of some bullion company or chairman of some pretentious board that discusses bullion business. How many books have they written about coins, not gold or silver, but real all American coins??

And another thing: CU is becoming too pretentious with all of their employee titles. They have a CEO, CFO, President, Vice President of YadaYada, Chairman, Director of This and Director of That.....Phooey! Too many damn generals and not enough soldiers! That's what happens when you try to turn a quaint, New England coin shop into a huge coin conglomerate public company.

cladking · February 4, 2003 12:44PM

Change is often a good thing in the long run. Mr Bowers will no doubt land on
his feet, but this is a real opportunity for CU and PCGS. What they make of this
remains to be seen but I wish them all the best.

coynclecter · February 4, 2003 4:12PM

He seemed to run a very successful business for a lot of years. He might have just cared too much for the hobby. Maybe it was time to do whatever it takes to show a profit and may mean doing things that someone who cares for Numismatics and the people in it might object to.

Jupiter · February 4, 2003 5:25PM

I think I agree with most of you that CU is probably circling the drain. Losing Q. David Bowers and gaining Michael Haynes is akin to losing a Michael Jordan or Barry Bonds and gaining Pee Wee Hermann.

Wasn't Michael Haynes previously a CEO or president with TAGZ and instrumental in running that company into the ground, and making their stock price virtually worthless?

cladking · February 5, 2003 1:09AM

<< He seemed to run a very successful business for a lot of years. He might have just cared too much for the hobby. Maybe it was time to do whatever it takes to show a profit and may mean doing things that someone who cares for Numismatics and the people in it might object to. >>

Don't read too much into it but did you see his column in the 2-3-03 Coin World?
Perhaps the powers that be decided to go with someone younger, someone
with a different perspective. I'm certainly not privy to all that goes on in people's
minds, but they do often give clues.

Mr. Bowers is certainly well respected as is PCGS. It does not necessarily follow
that PCGS's or CU's reputations were derived solely or largely from a single cause.

coinut1799 · February 5, 2003 1:48AM

Summary: A lot has been said already in this thread about Dave Bowers' departure from B & M. I am sure the separation was not Dave's idea, and I suspect it was in the works for a long period of time. Dave's early partner, Jim Ruddy, retired from Bowers and Ruddy. Dave moved on and apparently did very well with partner Ray Merena, who retired around the time of the buyout by Collectors Universe. After the buyout good people were let go at Bowers and Merena. Most recently they were Chris Karsted and her father, John Babalis. People in this forum who care about this hobby, and who do not know Dave Bowers are missing out. He has given so much back to the hobby over the years. I'll give a small example of my own personal experience. A few years ago I wanted to write an article about originality of classic commemorative coins. I decided to interview four well known authorities, including Mr. Bowers. He barely knew me, yet took the time to answer my questions and discuss the issues. His knowledge and imput were of great assistance.
I don't know anything about the bottom line at Bowers and Merena or Collectors Universe. What I do know, as I said in an earlier thread, is the company, without Dave Bowers, will never be the same. I sincerely hope Dave prospers and thrives at whatever he choses to do now.

mrfred · February 5, 2003 2:18AM

This is a truly amazing thread, as is the entire story of Dave Bowers at this point in numismatic history. I'd like to see him land at a college or university where he could continue to write about coins and to teach about numismatic history. As an academic, I would attest in a heartbeat that the quality and quantity of his research has 'full professor' (three or four times over!) written all over it. Holy cats, where does he find the time, even with a staff of two?

Think of the classes he could offer! Man, I'd love to sit in on a seminar with him.

coinguy1 · February 5, 2003 2:26AM

There is, shall I say, "speculation" that Q. David Bowers will be operating his own auction company in the not too distant future. I like the odds for that scenario.

mrfred · February 5, 2003 2:31AM

Mark -- lots of universities and colleges allow -- even encourage -- faculty to dabble on the side or even run (effectively) full time enterprises, particularly if those enterprises have some innovation or scholarly side to them. Here is an example..

I wonder if a university could think enough out of the box to court Mr Bowers.

One downside -- university budgets are taking a real hit these days. Real bad. Hard to get authority for new hires...

DCAMFranklin · February 5, 2003 2:32AM

<< Dcam,
I find it strange that you can say

<< He may have known his coins and authored some nice books, yet that doesn't say anything about his ability to manage a business. Clearly, he wasn't getting it done and his employment contract was terminated. >>

But then you tell TheBigEng:

<< Unless you were there on a daily basis to assess his productivity, unless you were there to review the financials of B&M, I don't believe you are properly qualified to judge whether he was "more prolific than ever". >>

I presume by the first quote that you have some knowledge of David Bowers work ethic as the second quote you chide TheBigEng because he's not qualified to judge because he isn't there on a daily basis. I'm curious, Do you work for PCGS? Or Collectors Universe?

Thanks,
Dave >>

Dave- High provile managers rarely have their employment contracts terminated when they are bringing in the big profits.

gmarguli · February 5, 2003 2:35AM

How long was this talked about??

The talk has been for probably close to a year that he was unhappy with the company. I don't know the guy, so I only heard dealer opinions - some of which robably knew him and some of which who didn't. Many seemed to think it was only a matter of time before he left.

DCAMFranklin · February 5, 2003 2:36AM

<< DCAM, don't quit your day job to go into the business of analyzing companies. You obviously don't know squat about it. Nothing personal, but sometimes when you don't know something you ought to remain silent. >>

I take it you were one of the wise buyers of CLCT at $8.80?? Smart move. I'm sure you are quite happy with the board's execution now that the stock is at the equivalent of 70 cents! If you have been a buyer of the stock, then that says VOLUMNS about your ability to analyze a company.

Zerbe · February 5, 2003 2:50AM

When you have a bunch of telemarketing guys in the front offfice and a coindoctor and his grader/ crackout / theif / partner, in the back room, running a large "whoresale to the public business, with phony owners listed on their website, you get instant relief thinking of just the opposite== Dave Bowers. Words cannot describe the integrity, and enthusiasm for coins, that MR. Bowers brings to Numismatics. He is there for the hobby, not to fleece and rip-off. He was a self made millionaire before most of us were even born. I even have the added benefit of living not far from him. Just knowing he will be continuing on, in this hobby, one way or other, makes me still want to persue, study and collect coins. P. Taylor

The "company " I mentioned in the first part of this message really does exist, and due to their propensity to sue, even though they are frauds and thieves, I painfully have to leave their name out. Most of you, hopfully know by now, who this " company " is. I promised them, I would expose them, because even though they are a minority of dealers, they cause a majority of the problems in coins, through outright fraud, lies, coin doctoring, and rip-offs.
I think it shows them for what they are even more profusely, by comparing them to their opposite, ( Dave Bowers ). This "multimillion dollar " company is still doing business as usual, so beware. If anybody is offended by my comments about this company, please PM me and if I count more than a couple of annoyed people, I will stop my little crusade. Thanks, P. Taylor

BillJones · February 5, 2003 2:55AM

<<Don't read too much into it but did you see his column in the 2-3-03 Coin World? Perhaps the powers that be decided to go with someone younger, someone with a different perspective.>>

So now we can justify the removal of David Bowers because he does not buy into your get rich quick schemes with modern coins, Cladking?

To quote Luciano Pavarotti: “Critics are like dogs. They are always looking for an excuse to pee on a monument.”

Bowers Resigns

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