CU stock continues to soar.

Buckwheat

The stock closed today at $6.98. This is up 76% in the past 3 weeks from 3.98, and up 100% since the Nationals. Perhaps it would have been wise to have taken to heart the CEO's talk at the luncheon.

koby

This must make MW and Vayank very sad.

gemint

I wonder how much of it is due of strong company performance and how much is due to the recent surge in the market? We'll have to wait for the next financials. I'm just glad my company's stock is doing well.

40ozman

Glad for CU, like to see them do well... I'm not stock expert, but are those numbers from the last profit reports (which I believe they did real well)? OR is there something else in the works for future reports to come?

Now if they would only drop the bulk rate to $5. It would reward the people that have created their success, and probably knock most of the riff-raff out of the card grading business. If they dropped there rates down, even for just specials, they could knock out some of these PSA wannabes.

Virtualizard

<< <i>I wonder how much of it is due of strong company performance and how much is due to the recent surge in the market? We'll have to wait for the next financials. I'm just glad my company's stock is doing well. >>



I'm pretty sure it's due to my recent submissions! Hey, I have to protect my investment.

JEB.

KING KELLOGG

JEB...

The Kellogg's collectors probably kept a light or two on at PSA too...Hee...Hee.....



Larry

VaYank

No, I am not sad. Facts neither make me sad or happy, they are merely data points for analysis. I was not at all surprised by the 1Q profit, and the stock increase is tied to that. The membership dues doubtlessly brought alot money in upfront without moving the corresponding expense upfront. In other words, it front loaded the revenue without frontloading the expense related to delivering their service. It will be interesting to see how the financials go when, on the back end in the 3Q and 4Q, PSA (already having been paid) has to fulfill, and incur the expense of fulfilling, the freebies, which come with membership like the gradings and SMR etc.

carew4me

BS.
VaYank and his ilk danced like pageans when the stock was in the dumper. (ALL stockers were in the dumper)

PSA is making the right moves and this further solidifies their position as the #1 choice of serious collectors of coins and cards.

Get used to it.

grilloj39

I'll stick with accurate grading and customer service as my preferred grading company of choice, not what it's stock is worth.

rw2win

Va Yank - What a brilliant financial mind...

acowa

<I'll stick with accurate grading and customer service as my preferred grading company of choice, not what it's stock is worth.>

Over the long run, the two will be the same. If you think PSA is going down, then short the stock. It's your perfect opportunity.


Regards,



Alan

PeterAldridge

makes that whole "membership required" thing seem like a good business move even though we thought it was not.

beefcake210

But Vayank, why not post the CLCT financials on the SGC board?? You don't see the hypocracy of only stating facts that are beneficial to the SGC propoganda machine?

qualitycards

How can the membership of joining PSA just help the first quarter, but kill the last quarter?
Don't people sign up for membership all year long? and if so isn't their 1 year renewal tied to when they initially signed up be it in January, May or October?

I really don't care about the stock numbers anyway, be it low, beaking even or making $. Any of the 3 scenerios does not help or hurt the value of a PSA card. If I owned stock in CU, I would care. ...jay

packCollector

I'll stick with accurate grading and customer service as my preferred grading company of choice, not what it's stock is worth.


hey grillo , who are you referring to

koby

<< <i>I'll stick with accurate grading and customer service as my preferred grading company of choice, not what it's stock is worth.


hey grillo , who are you referring to >>





I think Accu-grade is Alan Hager's group. It is one of the original grading companies, but I don't know why anyone would use them today.

koby

NickM

I expect that most people who joined used their free submissions fairly quickly, which means that expenses and revenue were probably booked in the same quarter. I know I did. Of course, I joined through the Superior special, so I wasn't much of a revenue source for them.

Nick

theBobs

<< <i>In other words, it front loaded the revenue without frontloading the expense related to delivering their service >>



I am not an expert in accounting issues, so maybe Basilone or Cubfan can correct me (Koby, aren't you a CPA?), but...

I believe accounting rules would require CU to capture the revenue and liability associated with an membership at the same time.



<< <i>It will be interesting to see how the financials go when, on the back end in the 3Q and 4Q, PSA (already having been paid) has to fulfill, and incur the expense of fulfilling, the freebies, which come with membership like the gradings and SMR etc. >>



Again, these future liabilities should already be reflected in CU's Financial Statements... Vayank, I think the bad news you are expecting to hit PSA's books is already baked in there...

qualitycards

NICK - I love when people add their own spin to the financial report. If stock prices went down, then its doom & gloom for the company. Better unload everything quick. If the stock prices went up, well it must be because of this & this.
For me, I don't care 1 way or another, but its interesting to see the spin some put on the results, actually entertaining.
For me, I'll let my finacial advisor & accountant sweat out the details for our retirement accounts. Til then I'll just, sort/buy/sell/trade/play w/ cards, cause thats what I know...jay

mikeschmidt

Just remember, all -- PSA is but a small part of the CU franchise. I believe that PCGS is a much larger portion of revenues, etc.

MS

Wayne8348

Marc,

I was getting ready to post the exact same thing.


I would think that eliminating the discounted submissions from the registry specials has probably helped income on the psa section of collectors universe. I'm not sure that the $99 membership would have enough impact to make the stock jump 1 cent - much less a few dollars.

Wayne

aconte

thebobs,

I doubt the revenue from memberships would be deferred in any way. I would not think it is material
enough to worry about. I would think it is treated as income. I don't think it made a big difference
in the overall stock price alone. It was probably a combination of things. Refer to MS's comments.
Overall, it is definitely a good thing.

VaYank,

The comment about the expenses being recognized after the revenue is insignificant too.
You still have to pay to submit. Any additional expenses incurred would be no different than
the normal operating costs. It is highly unlikely that there would be such an increase to variable
expenses that would hurt future earnings. I'm sure someone at Psa is performing some type
of analysis to review the benefits (net income) achieved by the membership charge. At least
over the long term. I know I would if it was significant to CU's or even Psa's bottom line (quarterly).

The key to CU's success will be growth in future revenue as well as being able to reduce
costs. Basically, it's important to keep costs down. LOL! I always say that stuff!!

And qualitycards is right. It's good for business but I don't think the things in the holders really
care about the stock price.

aconte

theBobs

Thanks for the clarification Aconte.