CLCT CEO retiring
dbtunr
Posts: 614 ✭✭✭
Any thoughts on who the new CEO could be? Don? CLCT is hiring a search firm. This explains the selling of virtually all the CEO's stock over the past year, He's down to just 32K shares.
0
Comments
The current CEO was from outside the collectible fields with an engineering management background. It seems like they would probably go that way again and look outside the world of numismatics. They already have HRH and Van Simmons as Directors.
I'll do it
Latin American Collection
Possible. The current CEO spent millions on this forum upgrade (twice), collectors.com, and other IT functions without much to show for it in the way of revenue. HRH is getting on in years and had some health issues. I think Don Willis has an IT background as well and he understands coins.
The press release said the CEO is retiring. His contract is up in mid October. Maybe the Board decided not to renew and let him know. No way to tell. He is walking away from 150,000 shares worth almost $4M. Cash has been dwindling and rather than make the hard decision to cut back on spending or cut the dividend, he let cash dwindle. If I am a new CEO coming in, I want the dividend cut before I take over.
This is what NGC did in the move from NJ to FL.
I believe they needed more space, and it was cheaper in FL. I seem to remember it was a controversial move with copper specialists at that time.
It always benefits a business bottom line to move to a crooked state like florida .
Do you want many companies have already done. Move to Delaware. For years Delaware in a great place to retire. Property taxes are low, there is no sales tax, real estate prices. There are plenty of people that are already hired a second income . Many of them are coin collectors.
It is in the middle between New York City and Washington DC and Baltimore so within three hours you are your operation is with in over 35 million people. Take a look at your credit cards and banking and oil industry, many are incorporated in Delaware. Delaware is a sales tax free state, And thanks to very favorable tax breaks to businesses, many are incorporated there. The climate over all is pretty good. Even though they would have to move across country, it would be well worth the trip. Plus that way I could have them at my back door. Best of luck anyway.
I'm in MD, near DE, but I say do what most of the other CA businesses have done and move to TX.
There are almost as many Californians in Austin, as there are in San Diego. lol
I've always thought that the spots on silver has something to do with PCGS's location (coastal CA). Move to Las Vegas as NV has no corp taxes, housing is cheap (relatively speaking) and CA is next door if you need it. Just a thought.
bob
OK. Gotta ask. Who/m is the current CLCT CEO?
Just wondering.
Robert G. Deuster, age 66, was appointed Chief Executive Officer of the Company, effective October 15, 2012. Mr. Deuster served as Chairman and Chief Executive Officer of Newport Corporation, a public company that is a global supplier of laser, optical and motion control products, from May 1996 until his retirement in October of 2007. He also served as President of Newport from May 1996 until July 2004, and in June 1997 became Chairman of the Board. From 1985 to 1996, Mr. Deuster served in various senior management positions at Applied Power, Inc. (now Actuant Corporation, a New York Stock Exchange listed company), which is a global manufacturer of electrical and hydraulic products, serving as Senior Vice President of the Distributed Products Group from 1994 to 1996, President of the Barry Controls Division from 1989 to 1994, President of the APITECH Division from 1986 to 1989 and Vice President of Sales and Marketing of the Enerpac Division from 1985 to 1986. From 1975 to 1985, he held engineering and marketing management positions at General Electric Company's Medical Systems Division. Mr. Deuster currently serves as a director of Ondax, Inc., a private optical components company. He also was a director of Symmetry Medical Inc., a publicly traded provider of medical devices and solutions to the global orthopedic market, until that company was sold in June 2016. Mr. Deuster received a B.S. in Electrical Engineering from Marquette University in 1973. Mr. Deuster holds a Masters Professional Director Certification from the American College of Corporate Directors, a public company director education and credentialing organization. The Board believes that Mr. Deuster’s extensive management experience, including as a CEO of and a senior executive at other public companies, combined with his experience as an independent director of both public and private companies, qualifies him to serve as a member of our Board of Directors. In addition, because Mr. Deuster is the Company’s Chief Executive Officer, the Board of Directors believes that his participation as a member of the Board will facilitate communication between the outside Board members and management.
Holy Cow!
A synopsis would have sufficed.
How do you know how many 'collector club' memberships and coin submissions there were because of this website and forum? I suspect there is quite a bit to show for it.
As much as everyone would like to believe they are a big spender, collectors club and members here probably make up less than 10% of revenue but probably 80% of customer service issues. If you really wanted to get to the crux of it, the company should be called "Dealers Universe". I guess we will see where the next guy does with capital outlays and the dividend.
This is pure speculation to justify theory / hypothesis / opinion. Data needed.
Collectors Club Subscription Program . We also have established “Collectors Clubs” for coin and trading card collectors. For an annual membership fee, ranging from $69 to $249, collectors receive a number of benefits, including (i) the right to have, without any further charge, a specified number of collectibles authenticated and graded by us, a privilege that non-member collectors do not have; and (ii) access to certain proprietary data that we make available on our websites or in print. At June 30, 2016, there were approximately 16,300 members in our Collectors Clubs.
Assume an average price of $200 per member (which is probably way too high), and that's just $3M in club fees or less than 5% of revenue. Double that for extra submissions and add a little more and I get 10%. The bulk submitters generate 40% of the revenue (the CEO has stated such in presentations), dealers 40%. The other 10% is from show/expo (Long Beach) revenue, CCE Network, and to a minor extent web ads from this site. coinflation.com adds another $100K in revenue and they get about $100K in royalty revenue for licensing "PCGS" to the currency division.
Stop. I've read enough.
My goodness how you tune has changed! Back when you were a shareholder, nothing bad to say about clct, now nothing good.
Liberty: Parent of Science & Industry
I don't get your point. I don't consider his leaving a negative, I consider it a positive. I didn't think he was getting the return on capital that shareholders need. If the new CEO is a better businessman, then this is good news. I like the company, I didn't like the now leaving CEO from a business perspective.
Take the company private , tell the shareholders to stick the EPS where the sun don't shine.
If they cut the dividend ...
look out below!
Why? There would be no reason.
Not necessarily. If they cut to say $1 from $1.40, they could cover that with the cash flow/earnings and it would still be a hefty dividend. The stock might fall a bit but not by a great amount. Many more investors would be drawn to a high yield stock that covers the dividend with earnings and cash flow. Many stay away now because it is not covered. So it would be a short time down followed by a gain later on
I doubt that. Without the very high dividend to offset the high risk and low liquidity, many investors (like myself) will flee.
The problem with moving to Delaware is that it's in Delaware
mark
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......
Most companies are incorporated in Delaware for favorable legal reasons. Few actually operate out if Delaware.
Latin American Collection
This talk of them moving was not the intention of this thread nor is it going to happen. They just entered into a new long term lease for a larger facility close to the current facility and are in the process of moving down the street basically.
Retirement is good...will give him more time to work on his coin collection....
Cheers, RickO
Rather than subservience to the bottom line, companies should be re-examining their business philosophy, serving the customers and hobby well with a quality ethical code. CLCT seems to be doing these things well but could be speeding up vital things like their guarantee program and strengthening their variety attributions.
I agree with 1. cut it to the point earnings are at and a little lower, so $1.
They have already spent the money on collectors.com. Don't see what shutting it down saves them. Running it is minimal.
they had their own GC at one time many years ago (bought B&M in 1999) and sold it (B&M) to Greg Manning (Spectrum) at the time in 2004. They didn't want a conflict between grading and selling of graded coins.
In my experience in working on large scale turnarounds, a critical factor in successful turnarounds are the situations in which management faces their reality and doesn't shy away from it. The dividend is not sustainable long-term without an increase in cash flow. I'm not sure to what extent CLCT has leveraged advanced cash generation strategies which other industries use and that may be an option but unless profitability significantly expands or sales increase, the dividend is a struggle to sustain may be a cloud over strategic decision making. The best time to make the tough choices is when you don't have to.
Latin American Collection
>
I'm not sure how owning a GC online marketplace is any different than running Collectors.com...it's a marketplace forum for collectors to purchase from sellers...PCGS would not be taking an ownership stake in the items that they are selling...if they did it before it doesn't mean it wasn't a good idea...maybe they were too early to the game....
Personally I'd shutter Collectors.com even if it doesn't save them anything...I don't like it....LOL
Good idea but you are buying back shares near an all-time high. Last time they eliminated the dividend the share price cratered from $14 to $2. about 8 months after the cut they announced a $10M buyback at $5 which bought back about 20% of the outstanding shares. That was a good use of cash. A few months after that they restarted the dividend again at $1
The other fly in the ointment is the cash they have is needed for working capital. They really don't have any to spare
A share buyback would be a net use of cash and not a source of cash. It increases the drain on cash....Buyback shares at $24 a share to save a dividend value of $1.40 a share don't make sense unless the stock is materially undervalued which at 22x earnings I would say it is not.
Share buybacks are historically very poor uses of cash and tend to be earnings manipulation tools to boost EPS. The majority of times CEO's and CFO's buy at the top when using company funds.
Latin American Collection