Stockholders in PSA??

mrc32

I was thinking about this today. We are all customers of PSA and even more of us are buyers of their product on the secondary market(which incidentally gives zero money directly to PSA, though it does support them indirectly).

If people like Vargha, Davillio etc. have massive INVESTMENTS in PSA cards, I wonder if they also invest in their stock?

I think most (but probably not all) would agree that if PSA folds then PSA graded cards would be worth much less. Or do people not agree?

If people are investing in PSA graded cards because they believe in the company, shouldn't these same people be investing directly in the company??

Just a thought.

Mrc32

riccaboni

On the surface, something like that seems like it would be a conflict of interest if the person with a large stake in PSA graded cards and shares in the company would decide to sell their cards, but I could definately be wrong in that. Unfortunately, the most we can do is just voice our concerns to Joe and BJ and the fine folks at PSA.

Ian

Vargha

I have very little invested in PSA cards anymore. I also am not in Jim Crandell's league and never have been. His annual card budget is slightly more than what I had invested in PSA cards at the height of my collection.

I do not hold stock in CU and never have. If CU folds or if PSA is spun-off or sold, it is my belief that the PSA name would still have real value and that someone would purchase it as well as some of its real assets. What would happen to the value of PSA cards in the long run would be only a guess. However, a short-term drop in prices after such a scenario woul certainly result. If no viable alternative were to be found, it would be possible that PSA cards could actually jump in value in the long-term. The market is a fickle taskmaster at times.

crazysc

I think the key question would be what happens to the PSA brand name if PSA (or more critically, CU) folded. Would another company buy the brand and continue to grade cards under the current PSA standards? Would they grade in a much looser fashion.

Unfortunately, to be frank, if PSA goes under I think it'll be an indication that the card market has deteriorated to a very bad point, and the cause of a precipitous decline in values won't be tied only to PSA's existance.

jvineyard

Investing in PSA cards and investing in PSA stock are two very different issues.

By investing in PSA cards you are investing in the card hobby and presumably the idea of third party grading generally.

Investing in PSA/CU stock is an investment in CU's ability to profitably operate a business, whether the card hobby is strong or in decline.

mcastaldi

Sol> "if PSA goes under I think it'll be an indication that the card market has deteriorated to a very bad point,. . ."

I can agree so far as the statement goes, but I feel it's incomplete in that it ignores any self-inflicted wounds on PSA's part. For the past few months, it seems to me that several actions by PSA have made them less and less collector-friendly.

Mike

Basilone

There is no such thing as PSA stock....there is Collector's Universe Stock.

It would not suprise me to see the PSA brand name sold in the next 3 years.

Anyways...for the "insiders" out there...what percent of CU's overall business do the PSA operations represent?

John

carkim

I own CU stock.

Collectors Universe, Inc. - Common Stock (NASDAQ NM:CLCT) last updated $3.65 per share.

Vargha

$3.65? I should have bought it at a buck last year.

Davalillo

David,

I believe the company did a reverse split--the stock I think has just gone steadily lower and lower.

Jim

mikeschmidt

Performance over past two years: