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Heritages owns 30% of NGC


I was reading Scott Travers' new book, The Coin Collectors Survival Manual, 7th edition, and on page 147 it mentions the Jim Halperin and Steve Ivy (the owners of Heritage) owned 24.254% of NGC as of 2005, but in recent years have increased their ownership position to 30.3%.

I knew that Jim and Steve and/or Heritage owned about 30% of NGC, but I just wondered if everybody else knew that. I'm not saying there's anything wrong with that. In fact, coin dealers, including me, own shares of Collectors Universe, the PCGS parent company. PCGS (Collectors Universe) is a public company and anyone can buy the shares. So Heritage (or actually the owners of Heritage) owning a huge stake in NGC is not neccessarily good or bad. But I don't think everyone knows that the world's largest coin dealer owns 30% of the a major grading service.

So there's the information. Make of it what you wish.

hrh

«1345

Comments

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    llafoellafoe Posts: 7,220 ✭✭
    Does Heritage own any stock in CU?
    WANTED: Cincinnati Reds TEAM Cards
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    FrankcoinsFrankcoins Posts: 4,569 ✭✭✭
    This needs to be out in the open. NGC reveals absolutely nothing about its ownership on its "ABOUT US" page.
    Frank Provasek - PCGS Authorized Dealer, Life Member ANA, Member TNA. www.frankcoins.com
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    sinin1sinin1 Posts: 7,500
    I was wondering why most of their Jefferson nickels lately have been in NGC edge view slabs - now I know.
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    MrEurekaMrEureka Posts: 24,073 ✭✭✭✭✭
    I doesn't matter to me. If NGC were corrupt, there would be other ways to get preferential treatment. And if the company has integrity, even a major stockholder would have no advantage in the grading room.

    Now, on the other hand, I could see why PCGS might not like seeing a major customer like Heritage having such a great incentive to submit coins to NGC instead of PCGS.
    Andy Lustig

    Doggedly collecting coins of the Central American Republic.

    Visit the Society of US Pattern Collectors at USPatterns.com.
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    ElcontadorElcontador Posts: 7,464 ✭✭✭✭✭
    It's old news.
    "Vou invadir o Nordeste,
    "Seu cabra da peste,
    "Sou Mangueira......."
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    The official over/under on this thread is 400. I'm taking the over.
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    airplanenutairplanenut Posts: 22,015 ✭✭✭✭✭


    << <i>I was wondering why most of their Jefferson nickels lately have been in NGC edge view slabs - now I know. >>

    No you don't. Why does any dealer submit to PCGS over NGC or NGC over PCGS? If one service were clearly superior in every regard (for instance, suppose even a tighter grade would always sell for more, the turnaround time is better, the cost is less, etc.) then no other service would be used or needed. Submitting to any particular service has to the submitter some perceived advantages over the other services, and certainly there is no way to prove causality in this case.
    JK Coin Photography - eBay Consignments | High Quality Photos | LOW Prices | 20% of Consignment Proceeds Go to Pancreatic Cancer Research
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    richardshipprichardshipp Posts: 5,647 ✭✭✭
    If we "buy the coin" and not the "holder", "dealer"or "auction house" we should be ok right?

    What am I saying... I can't even seem to afford the coins I like anymore image

    Carry on.
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    RYKRYK Posts: 35,796 ✭✭✭✭✭


    << <i>It's old news. >>


    That was my thought, as well. image
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    derrybderryb Posts: 36,377 ✭✭✭✭✭


    << <i>

    << <i>I was wondering why most of their Jefferson nickels lately have been in NGC edge view slabs - now I know. >>

    No you don't. Why does any dealer submit to PCGS over NGC or NGC over PCGS? If one service were clearly superior in every regard (for instance, suppose even a tighter grade would always sell for more, the turnaround time is better, the cost is less, etc.) then no other service would be used or needed. Submitting to any particular service has to the submitter some perceived advantages over the other services, and certainly there is no way to prove causality in this case. >>


    Well put. I use both services depending on my need.

    Rampant currency debasement will be the most important investment trend of this decade, and it will devastate most people.
    - Nick Giambruno
    Buy dollar insurance now, because the policy will cost more as the dollar becomes worth less.

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    djdilliodondjdilliodon Posts: 1,938 ✭✭
    Doesnt bother me.
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    coinguy1coinguy1 Posts: 13,485
    So, David, what's the reason for mentioning that now, as opposed to some other time during the past 5 years? I can't help but think that something large and/or interesting must be brewing.
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    lkeigwinlkeigwin Posts: 16,891 ✭✭✭✭✭


    << <i>So, David, what's the reason for mentioning that now, as opposed to some other time during the past 5 years? I can't help but think that something large and/or interesting must be brewing. >>

    That was my first thought too. Why mention it now? Something in the works?
    Lance.
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    Halfhunter06Halfhunter06 Posts: 1,332 ✭✭✭
    Who are the major share holders of PCGS?
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    illini420illini420 Posts: 11,466 ✭✭✭✭✭


    << <i>So, David, what's the reason for mentioning that now, as opposed to some other time during the past 5 years? I can't help but think that something large and/or interesting must be brewing. >>




    Yeah, I'm trying to read between the lines as well.
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    TorinoCobra71TorinoCobra71 Posts: 8,044 ✭✭✭


    << <i>So, David, what's the reason for mentioning that now, as opposed to some other time during the past 5 years? I can't help but think that something large and/or interesting must be brewing. >>



    ahhh yeah. The Mark Feld of the good old days.

    image
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    llafoellafoe Posts: 7,220 ✭✭


    << <i>So, David, what's the reason for mentioning that now, as opposed to some other time during the past 5 years? I can't help but think that something large and/or interesting must be brewing. >>



    Maybe he was simply bragging that he read a book? image
    WANTED: Cincinnati Reds TEAM Cards
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    PawPaulPawPaul Posts: 5,845
    .......It is news to me ,.. and it doesn't sit very well with me .

    but I don't buy NGC coins , or at least I don't 98% of the time .

    so it really don't mean a hoot to me

    humm , I wonder why I don't buy NGC coins ............,

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    mozinmozin Posts: 8,755 ✭✭✭
    Heritage is so very large, that ownership of 30% of NGC is just a tiny bit of the total Heritage worth. Now, let's hear what is the Heritage ownership percent of PCGS.

    I don't see any problem with Heritage owning such a large chunk of NGC.
    I collect Capped Bust series by variety in PCGS AU/MS grades.
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    Fascinating. I will follow along.
    "If I had a nickel for every nickel I ever had, I'd have all my nickels back".
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    PawPaulPawPaul Posts: 5,845
    I think D.Hall and Van Simmons are way up there in ownership of PCGS stock

    In fact , Mr. Simmons is the 4th largest holder of C.U. stock
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    << <i>So, David, what's the reason for mentioning that now, as opposed to some other time during the past 5 years? I can't help but think that something large and/or interesting must be brewing. >>



    Mark, you should have been a lawyer.
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    MrEurekaMrEureka Posts: 24,073 ✭✭✭✭✭
    Heritage is so very large, that ownership of 30% of NGC is just a tiny bit of the total Heritage worth.

    Maybe so. But NGC is probably more profitable and more valuable than CU. And CU has a market cap of $108 million.
    Andy Lustig

    Doggedly collecting coins of the Central American Republic.

    Visit the Society of US Pattern Collectors at USPatterns.com.
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    Also, lest anyone think that Heritage exerts any kind of influence on NGC in grading "their" coins, my belief is that NGC's reputation as an objective third party grader is worth more than any results they might get with any influence.
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    RampageRampage Posts: 9,427 ✭✭✭✭
    Here is the list of owners in Collectors Universe. This is straight from their Investor Relations page and that be viewed by everyone:

    OWNERSHIP PROFILE

    Name Total Held
    A. Clint Allen, Director of the Board 66,087
    Deborah A. Farrington, Director of the Board 25,800
    David G. Hall, President & Director of the Board 990,733
    Michael J. McConnell, CEO & Director of the Board 111,725
    A.J. Bert Moyer, Director of the Board 30,200
    Van D. Simmons, Director of the Board 244,270
    Bruce A. Stevens, Director of the Board 24,700
    Joseph J. Wallace, CFO 85,590

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    << <i>Who are the major share holders of PCGS? >>



    A. Clint Allen, Director of the Board 66,087
    Deborah A. Farrington, Director of the Board 25,800
    David G. Hall, President & Director of the Board 990,733
    Michael J. McConnell, CEO & Director of the Board 111,725
    A.J. Bert Moyer, Director of the Board 30,200
    Van D. Simmons, Director of the Board 244,270
    Bruce A. Stevens, Director of the Board 24,700
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    RampageRampage Posts: 9,427 ✭✭✭✭
    I do not see a problem with David Hall owning such a large share of CU. I also do not see a problem with Halperin and Ivy owning 30% of NGC.






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    jhdflajhdfla Posts: 3,030 ✭✭✭
    Any inference here that PCGS may team up in some fashion with a viable potential rival to Heritage in the newly created Stack’s-Bowers Numismatics group under the recently announced President Chris Napolitano? Just a thought.

    edited for spelling.
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    WTCGWTCG Posts: 8,940 ✭✭✭
    What percentage of Collectors Universe does the big player from Houston own? That information is just as relevant.
    Follow me on Twitter @wtcgroup
    Authorized dealer for PCGS, PCGS Currency, NGC, NCS, PMG, CAC. Member of the PNG, ANA. Member dealer of CoinPlex and CCE/FACTS as "CH5"
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    cmerlo1cmerlo1 Posts: 7,902 ✭✭✭✭✭
    I'm eagerly awaiting the real news image

    Thanks for the teaser, Mr. Hall!
    You Suck! Awarded 6/2008- 1901-O Micro O Morgan, 8/2008- 1878 VAM-123 Morgan, 9/2022 1888-O VAM-1B3 H8 Morgan | Senior Regional Representative- ANACS Coin Grading. Posted opinions on coins are my own, and are not an official ANACS opinion.
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    JustacommemanJustacommeman Posts: 22,847 ✭✭✭✭✭


    << <i>What percentage of Collectors Universe does the big player from Houston own? That information is just as relevant. >>



    As of Dec 2010 (source Yahoo Finance) it is reported that Kenneth Duncan owned 1,200,000 odd shares............ the largest single shareholder. I believe that number has changed in 2011. Yes, it seems smoewhat as relevant. MJ
    Walker Proof Digital Album
    Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
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    llafoellafoe Posts: 7,220 ✭✭


    << <i>

    << <i>What percentage of Collectors Universe does the big player from Houston own? That information is just as relevant. >>



    As of Dec 2010 (source Yahoo Finance) it is reported that Kenneth Duncan owned 1,200,000 odd shares............ the largest single shareholder. I believe that number has changed in 2011. Yes, it seems smoewhat as relevant. MJ >>



    That's almost equal to all the shares owned by all the Board members (of CU, not the U.S. Coin Forum)!
    WANTED: Cincinnati Reds TEAM Cards
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    djdilliodondjdilliodon Posts: 1,938 ✭✭


    << <i>.......It is news to me ,.. and it doesn't sit very well with me . >>



    Why not?
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    FrankcoinsFrankcoins Posts: 4,569 ✭✭✭
    There is a conflict of interest when an auctioneer of a brand of slabbed coins is also a major owner of that same
    slabbing company. A favorable grade by a slabbing company increases the selling price and thus the commissions
    that the auctioneer earns. This is all good for the slabbing company, the auction company, and the consignor.
    Not so good for the buyer of a coin where ALL OTHER PARTIES EXCEPT HIM profit if a coin is given a "generous"
    grade.
    Frank Provasek - PCGS Authorized Dealer, Life Member ANA, Member TNA. www.frankcoins.com
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    djdilliodondjdilliodon Posts: 1,938 ✭✭


    << <i>There is a conflict of interest when an auctioneer of a brand of slabbed coins is also a major owner of that same
    slabbing company. A favorable grade by a slabbing company increases the selling price and thus the commissions
    that the auctioneer earns. This is all good for the slabbing company, the auction company, and the consignor.
    Not so good for the buyer of a coin where ALL OTHER PARTIES EXCEPT HIM profit if a coin is given a "generous"
    grade. >>



    What if graders at a third party grading company are all dealers?
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    JustacommemanJustacommeman Posts: 22,847 ✭✭✭✭✭


    << <i>There is a conflict of interest when an auctioneer of a brand of slabbed coins is also a major owner of that same
    slabbing company. A favorable grade by a slabbing company increases the selling price and thus the commissions
    that the auctioneer earns. This is all good for the slabbing company, the auction company, and the consignor.
    Not so good for the buyer of a coin where ALL OTHER PARTIES EXCEPT HIM profit if a coin is given a "generous"
    grade. >>



    What about one of the largest submitter of coins (if not the largest) being the largest shareholder in that grading company.

    CU is not supposed to know who the submitter is and the same at NGC. So in theory it would not matter, right?

    Just sayin............MJ
    Walker Proof Digital Album
    Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
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    PerryHallPerryHall Posts: 45,676 ✭✭✭✭✭


    << <i>

    << <i>So, David, what's the reason for mentioning that now, as opposed to some other time during the past 5 years? I can't help but think that something large and/or interesting must be brewing. >>

    That was my first thought too. Why mention it now? Something in the works?
    Lance. >>



    Great question! Can't wait to see the answer.

    Worry is the interest you pay on a debt you may not owe.

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    HyperionHyperion Posts: 7,438 ✭✭✭
    thank heaven that ultimately a coin has to stand on it's OWN merits, not what PCGS says, NGC, CAC says... as much as commoditization is desired to influence the market as a whole.


    buy the coin, not the holder!
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    FrankcoinsFrankcoins Posts: 4,569 ✭✭✭


    << <i>

    << <i>What percentage of Collectors Universe does the big player from Houston own? That information is just as relevant. >>



    As of Dec 2010 (source Yahoo Finance) it is reported that Kenneth Duncan owned 1,200,000 odd shares............ the largest single shareholder. I believe that number has changed in 2011. Yes, it seems smoewhat as relevant. MJ >>



    This is the block of stock that Roy Disney (nephew of Walt) owned though his investment fund, Shamrock Holdings. He wanted
    CU broken up and sold off.

    But on Dec 16, 2009, Disney died at Hoag Memorial Hospital in (coinidentally) Newport Beach, California.
    Frank Provasek - PCGS Authorized Dealer, Life Member ANA, Member TNA. www.frankcoins.com
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    dbcoindbcoin Posts: 2,200 ✭✭
    here are the holders of CU stock:

    I don't believe Heritage owns ANY CU stock.

    Not in the list below but also showing up on SEC filings is Marlin Sans
    364,000 shares 4.7%
    SEC filing of Marlin Sans


    Largest CU holders

    Major Direct Holders (Forms 3 & 4 and 13G)
    Holder Shares Reported
    DUNCAN RICHARD KENNETH SR 1,267,274 Dec 22, 2010 the guy from Texas
    HALL DAVID G 990,733 Jul 31, 2009 we know who this is
    MARLIN SANS 364,000 September 27, 2010 (added by me) Note: he is no longer required to update his holdings as he is under 5%
    MCCONNELL MICHAEL J 186,954 Dec 22, 2010 CEO of CU
    SIMMONS VAN D 244,270 Nov 19, 2010
    WALLACE JOSEPH JOHN 85,590 Jul 19, 2010 CFO of CU
    A. Clint Allen, Director of the Board 66,087
    A.J. Bert Moyer, Director of the Board 30,200
    Deborah A. Farrington, Director of the Board 25,800
    Bruce A. Stevens, Director of the Board 24,700



    Top Institutional Holders
    Holder Shares % Out Value* Reported
    RENAISSANCE TECHNOLOGIES, LLC 418,919 5.34 5,609,325 Sep 30, 2010
    DIMENSIONAL FUND ADVISORS LP 276,073 3.52 3,696,617 Sep 30, 2010
    BRIDGEWAY CAPITAL MANAGEMENT, INC. 112,960 1.44 1,512,534 Sep 30, 2010
    MARXE, AUSTIN W. & GREENHOUSE, DAVID M. 93,241 1.19 1,248,496 Sep 30, 2010
    Lapides Asset Management, LLC 83,334 1.06 1,115,842 Sep 30, 2010
    VANGUARD GROUP, INC. (THE) 59,506 0.76 796,785 Sep 30, 2010
    Bank of New York Mellon Corporation 28,176 0.36 391,646 Dec 31, 2010
    Bailard, Inc. 21,800 0.28 291,902 Sep 30, 2010
    CALPERS (CALIFORNIA-PUBLIC EMPLOYEES RETIREMENT SYSTEM) 18,000 0.23 250,200 Dec 31, 2010
    Winchester Group, Inc. 17,033 0.22 228,071 Sep 30, 2010

    Complete SEC list of Institutions:
    Full Institutional list

    Top Mutual Fund Holders
    Holder Shares % Out Value* Reported
    BRIDGEWAY FDS INC-ULTRA SMALL COMPANY MARKET FD 69,460 0.88 930,069 Sep 30, 2010
    DFA U.S. SMALL CAP SERIES 60,699 0.77 1,028,848 Oct 31, 2010
    DFA U.S. MICRO CAP SERIES 49,720 0.63 842,754 Oct 31, 2010
    DFA U.S. SMALL CAP VALUE SERIES 44,047 0.56 746,596 Oct 31, 2010
    VANGUARD EXTENDED MARKET INDEX FUND 41,451 0.53 555,028 Sep 30, 2010
    BRIDGEWAY FDS INC-ULTRA SMALL COMPANY FD 40,000 0.51 535,600 Sep 30, 2010
    DFA TAX-MANAGED U.S. SMALL CAP PORTFOLIO 17,633 0.22 298,879 Oct 31, 2010
    VANGUARD TOTAL STOCK MARKET INDEX FUND 14,905 0.19 199,577 Sep 30, 2010
    DFA U.S. Targeted Value Portfolio 13,784 0.18 233,638 Oct 31, 2010
    ISHARES Russell Micro Cap (TM) Index Fund 11,799 0.15 164,006 Dec 31, 2010

    Edited to add more info
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    llafoellafoe Posts: 7,220 ✭✭
    It looks like Kenneth Duncan made a nice profit on the 120,000+ shares he purchased in May '09 at around $4/share! Should be enough to buy another 1943/44 cent.
    WANTED: Cincinnati Reds TEAM Cards
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    dbcoindbcoin Posts: 2,200 ✭✭


    << <i>

    << <i>

    << <i>What percentage of Collectors Universe does the big player from Houston own? That information is just as relevant. >>



    As of Dec 2010 (source Yahoo Finance) it is reported that Kenneth Duncan owned 1,200,000 odd shares............ the largest single shareholder. I believe that number has changed in 2011. Yes, it seems smoewhat as relevant. MJ >>



    This is the block of stock that Roy Disney (nephew of Walt) owned though his investment fund, Shamrock Holdings. He wanted
    CU broken up and sold off.

    But on Dec 16, 2009, Disney died at Hoag Memorial Hospital in (coinidentally) Newport Beach, California. >>




    I don't believe that is the same block of stock. Duncan bought his stock on the open market mostly in the 4's (now almost 14). Shamrock was calling for CU to get bought out at $7. They tendered most of their stock in the $5 tender offer by CU and then sold the rest after that. They probably got out at an average of $6. They totally missed the run up and played this very badly.

    As a side note, when the then CEO of CU (now the CEO of APMEX) got a margin call and was forced to sell, David Hall pulled out his wallet and bought in the vicinity of 100,000 shares in the $3 range. This act probably saved the stock from going down to $1 and getting delisted.
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    Perhaps they increased their stake in NGC when they introduced the terrific edgeview holder? image
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    deltadimemandeltadimeman Posts: 1,036 ✭✭✭
    you sale coins or you grade coins, it should be unlawful to do both !
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    dbcoindbcoin Posts: 2,200 ✭✭


    << <i>you sale coins or you grade coins, it should be unlawful to do both ! >>



    For a while CU owned B&M but then sold them to Spectrum (then Greg Manning, then Afinsa, now Spectrum) about 5-6 years ago.

    I like the current way things are: keep grading and selling separate.
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    tmot99tmot99 Posts: 5,238 ✭✭✭
    Isn't it a fair statement to say that Jim Halperin and Stev Ivy are the investors and not "Heritage"? Certainly they own Heritage but that does not mean that Heritage owns any part of NGC. They may very well own a portion of Kraft Foods, Exxon, and JPMorgan Chase.
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    AnkurJAnkurJ Posts: 11,366 ✭✭✭✭
    If heritage offerred ONLY NGC coins, I would agree that its a conflict of interest. But they do not.

    AND, Heritage sells a LOT more than just coins.
    All coins kept in bank vaults.
    PCGS Registries
    Box of 20
    SeaEagleCoins: 11/14/54-4/5/12. Miss you Larry!
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    << <i>There is a conflict of interest when an auctioneer of a brand of slabbed coins is also a major owner of that same
    slabbing company. A favorable grade by a slabbing company increases the selling price and thus the commissions
    that the auctioneer earns. This is all good for the slabbing company, the auction company, and the consignor.
    Not so good for the buyer of a coin where ALL OTHER PARTIES EXCEPT HIM profit if a coin is given a "generous"
    grade. >>



    If Heritage (and by the way, Heritage is owned by more than just Steve Ivy and Jim Halperin) was exerting some influence on the grades coins got, anyone with that information would be someone who could come out with it. I know several of the owners well enough to know that they are smart enough not to hand over their reputation to another individual. That's why you'll never "catch" them doing something unethical.....because they steer far away from that kind of behavior. It's what smart businessmen do, and that's what they are.
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    coinguy1coinguy1 Posts: 13,485


    << <i>There is a conflict of interest when an auctioneer of a brand of slabbed coins is also a major owner of that same
    slabbing company. A favorable grade by a slabbing company increases the selling price and thus the commissions
    that the auctioneer earns. This is all good for the slabbing company, the auction company, and the consignor.
    Not so good for the buyer of a coin where ALL OTHER PARTIES EXCEPT HIM profit if a coin is given a "generous"
    grade. >>

    And you saying that NGC knows at the time they grade coins that they will be consigned to a Heritage auction, so they grade them higher than they otherwise would have? Please answer yes or no, and if your answer is no, what is the relevance of what you posted above?
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    BearBear Posts: 18,954 ✭✭
    And Red China owns 60% of America......Sooooooooooimage
    There once was a place called
    Camelotimage

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