Did DLRC make itself more attractive or less attractive as an acquisition target with its purchase o

Longacre

Personally, I look at DLRC as sort of a “wild card” in numismatics. They seem to do a lot of things well, but they just don’t seem to have the scale that a larger firm has. For example, they have a very strong retail base (like Littleton or another commercial firm), and an excellent electronic auction system (like Heritage). They have really good customer service (like the old ANR), and they are able to broker BIG coins (just like the big name dealers). However, as stated above, I feel as though they just cannot get to the “Heritage level” or the “Stack’s level” when looking at the numismatic landscape overall.

For a long time, I have tended to view DLRC as a take-over target, who does a lot of things well, and would be a great complement to another firm that does not have a strong retail presence or electronic auction presence, for example. I always thought that if Stack’s purchased DLRC, both firms would prosper and it would be a nice combined firm.

However, the purchase of PCI by DLRC threw me for a loop, and I am failing to see the rationale in the purchase. Does anyone think that DLRC made itself more or less attractive as an acquisition target with its purchase of PCI? I think there has to be some more consolidation in the numismatic industry, so my question is based on the assumption that there will be some M&A that has to occur to stay competitive.

291fifth

I don't think of coin dealers as good take-over targets. Their value lies primarily in their personnel and the personnel may just walk away once the take-over is completed (or their contract to stay expires.)

RegistryCoin

Disclaimer?

MrBreeze

I put DLRC above Stack's because they take credit cards for payment.

DavidLawrence

Longacre,

Interesting perspective and insight. I used to think of DLRC as a takeover target, as well. But that was before I realized how much I enjoy the business and the company so much. We have a great staff and the work is rewarding in more ways than financial and -- most importantly -- we have our own vision of the future.

PCI is exciting because it will allow us to add a whole new set of services to collectors. We are taking our time with the planning and execution of the "new PCI" to ensure collectors embrace the coins we certify. I encourage everyone to let the coins speak for themselves.

Thanks,
John

MrEureka

I encourage everyone to let the coins speak for themselves.

Actually, John, I think what you really mean to say is that you encourage everyone to let the coins speak for PCI. In fact, all coins already speak for themselves, although few people fully understand the language.

RBinTex

What was the purchase price?

RegistryCoin

Since grading standards anything but standard, I wonder if the "new PCI" standards will be aligned with one or more of the other TPGs?

Hmann

I am confused by this decision!

I like DLRC and think they have a great reputation. I have bought a few coins there and have been very happy with my purchases. Everything I have heard about their company has been positive!!!! This being said its the exact opposite with PCI.

PCI coins I purchased when I started with coins have all been disapointments! A lot had to do with my optimistic view of a coin that had a "cool" date and a good grade from this TPG... My personal experiences aside, I don't think I have heard of anything positive about this grading company ever!!!

I think DLRC would have been much better served by starting a brand new grading service! Purchasing a poor reputation doesn't make sense from my perspective!

I could be missing something, and would love a different perspective!!!

TwoSides2aCoin

I already said in another thread what I thought of this and like all AMERICAN businesses, I hope it is successful. We have room for competition within our own borders.

DJCoinz

<< <i>I already said in another thread what I thought of this and like all AMERICAN businesses, I hope it is successful. We have room for competition within our own borders. >>

leothelyon

<< <i>Longacre,

We have a great staff and the work is rewarding in more ways than financial and -- most importantly -- we have our own vision of the future.

Thanks,
John >>



Is there any possible way you could return the 1947-S PCGS MS66FS to PCGS for a review instead of trying to sell it?

I see a lot of this stuff selling through your company and I'll never understand it.


Leo

TwoSides2aCoin

<< <i>s there any possible way you could return the 1947-S PCGS MS66FS to PCGS for a review instead of trying to sell it?

I see a lot of this stuff selling through your company and I'll never understand it.


Leo >>



Is your opinion based on a photo ? Just curious.

leothelyon

<< <i>

<< <i>s there any possible way you could return the 1947-S PCGS MS66FS to PCGS for a review instead of trying to sell it?

I see a lot of this stuff selling through your company and I'll never understand it.


Leo >>



Is your opinion based on a photo ? Just curious. >>




Their photography isn't that bad, I'll give them that!


Leo

Tyler1924S

RegistryCoin

BECOKA

I think it makes them more attractive. As long as they don't try to push PCI to be as big as PCGS or NGC and keep it in a similar scale to the rest of their business they could have a quality specialty slabbing business.

If they do it right and grade conservatively they can maintain similar premiums to PCGS.

There is no reason for them to get gung ho and greedy. Large scale greatness comes with time and persistence.

Unknown

This content has been removed.

bidask

When will CAC review PCI coins, or have most of the good PCI coins that qualify already gone by the way of NGC or PCGS and are now being reviewed by CAC? I think they have and that is why CAC won't review any PCI coins because the ones leftover in PCI holders cannot anywhere near cross anyway. Yes?

bidask

<< <i>I think it makes them more attractive. As long as they don't try to push PCI to be as big as PCGS or NGC and keep it in a similar scale to the rest of their business they could have a quality specialty slabbing business.

If they do it right and grade conservatively they can maintain similar premiums to PCGS.

There is no reason for them to get gung ho and greedy. Large scale greatness comes with time and persistence. >>

No way can PCI coins bring similar premiums to PCGS coins of same grade. That will be a loser investment for DLRC imo.

RegistryCoin

Retailing and grading don't seem to mix that well, but stickering and retailing seem to go together ok. So, instead of becoming just another grader/slabber, how about DLRC/PCI start out as the #2 stickerer, and their ticket to becoming the #1 stickerer will be their ability to properly re-slab those coins that didn't previously deserve their sticker?

PerryHall

<< <i>Retailing and grading don't seem to mix that well, but stickering and retailing seem to go together ok. So, instead of becoming just another grader/slabber, how about DLRC/PCI start out as the #2 stickerer, and their ticket to becoming the #1 stickerer will be their ability to properly re-slab those coins that didn't previously deserve their sticker? >>



If DLRC reslabbed all the overgraded PCI slabbed coins, they would have to pay their owners some compensation which would probably bankrupt them.

DavidLawrence

We are not looking to be anywhere near the size and scale of PCGS and NGC. They both do a great job and we will continue to be major supporters and market makers of coins certified by both services. However, I saw an opportinity in PCI for a company that had tarnished its image but had a very well recognized brand name. I believe we can turn that brand around and build a small, boutique grading service that offers quality, custom services for our clients, etc. At the same time, I feel cleaning up this brand is a net good for everyone in the hobby.

Lastly, will will not support or market coins in the old PCI holders -- we simply cannot. That is why we are introducing an all-new label that will clearly denote the "new PCI" coins. We will make provisions for folks to submit old PCI coins for cross-over regrade, but the coins will be fully reexamined without regard to the old grade.

LeeG

Hi John,
Hope this works out for you. I've done business with DLRC in the past and have visited your old offices. Any thoughts on who your grading team will be? When will info be posted on your website about PCI moving forward?

Longacre

John--

Thank you for your responses. If you are going to be at Baltimore tomorrow, I hope to introduce myself.