Ohio to sell NGC shares?

GOLDSAINT

In the latest Coin World on page 2 The indictment of Mr. Noe says the court has ordered the sale of all the shares that Mr. Noe purchased in Numismatic Guaranty Corp.?

I thought NGC was a private company held by just a few high rollers?

So who can buy these shares?

Can PCGS buy these shares?

MORGANHUNTER2

Can PCGS buy these shares?


Odds are they already have a 38-47% share of the stock.

GOLDSAINT

"Odds are they already have a 38-47% share of the stock."

MH

Why do you think that?

Would these additional shares give them control?

MORGANHUNTER2

You would only gain conntrol of a company when and if you were able to hold over 51% of the stock, or make them an offer they could not refuse.

As for my quip- it being a sarcastic one as it is.

I would venture to guess that any Corp, like NGC or PCGS manages to only sell off 46% of their stock- so they can keep control.

Hyperion

private companies can have thier ownership partitioned into "stock or share" holders....
I guess it depends on the companies defined stock ownership plan, they can put any rules they'd like as to who and under what circumstance people
can "gain" these "shares" (it's my understanding)

MrEureka

<Can PCGS buy these shares?>

Odds are they already have a 38-47% share of the stock.

Not that NGC would dream of selling shares to CU, but I'd still love to hear CU explain to its shareholders why it wanted to buy shares in NGC.

Michigan

NGC's explanation of its grading and relationship with Mr. Noe
will make for some interesting testimony in the upcoming trial.

MrEureka

NGC's explanation of its grading and relationship with Mr. Noe will make for some interesting testimony in the upcoming trial.

I don't see why the subject would be of interest to the prosecution. Please enlighten me.

Michigan

<< <i>NGC's explanation of its grading and relationship with Mr. Noe will make for some interesting testimony in the upcoming trial.

I don't see why the subject would be of interest to the prosecution. Please enlighten me. >>




Allegations of favortism in the grades Noe got for coins he submitted because of his relationship with NGC. This angle of the case
has not been covered in the numismatic press from what I can recall but has been covered by the media in Ohio. NGC has been accused of not cooperating with investigators over the situation from what
I have read. NGC's relationship with Noe is apparently quite complex.

MrEureka

Allegations of favortism in the grades Noe got for coins he submitted because of his relationship with NGC.

But it's Noe that's on trial, not NGC. And if Noe got favored treatment - which I doubt - that would have only helped the State of Ohio.

Michigan

<< <i>Allegations of favortism in the grades Noe got for coins he submitted because of his relationship with NGC.

But it's Noe that's on trial, not NGC. And if Noe got favored treatment - which I doubt - that would have only helped the State of Ohio. >>



It's not that simple, it is quite complex with allegations of upgrading
at certain times and downgrading at other times and the difference
in the profit gained or lost not being completely accounted for etc.

Whether those allegations are true or not I don't know. The
investigators spend a lot of time looking into the situation and it
might come up at the trial.

GOLDSAINT

“But it's Noe that's on trial, not NGC. And if Noe got favored treatment - which I doubt - that would have only helped the State of Ohio.”

I agree except,

You don’t think that someone would buy a coin, or have a friend, buy a coin, just a little under graded, say for $5,000.
Have the new owner give it to Noe for submission, but when it came back it was a $10,000 coin in a higher grade.
Then Noe bought the coin for Ohio for $10,000?

Nobody is that smart, are they?

Funny how even one grade higher in the right coin can make such a difference.

It will be interesting to see the actual coins coming up for auction!

Conder101

More likely the problem would be Noe buys the coin for $5000 and then through his influence gets the grade raised by NGC, and then HE sells it into the Ohio account for $10,000 and he pockets the $5000 profit. Ohio isn't really hurt because the coin is still in an NGC slab and will still bring the $10,000 and over time still has price apprecation potential, but the windfall profit from the upgrade goes into Noe's pocket instead of Ohio's.A simple case of conflict of interest if Noe originally bought the coin with his own money, of a case of conversion if the original purchase was made with state money. The former might be a ethics violation. The latter is a criminal offense.