Superior has been sold...

MrEureka · July 17, 2006 12:29AM

July 17 (Reuters) - DGSE Cos. Inc. (DGSE.O: Quote, Profile, Research) on Monday said it agreed to buy Superior Galleries Inc. (SPGR.OB: Quote, Profile, Research) in an all-stock deal valued at $14 million.

DGSE, which wholesales and retails jewelry, diamonds, fine watches and precious metal bullion products and rare coins, said the deal would make it one of the largest rare coin firms in the U.S.

DGSE and Superior expect the deal to close late in October, the company said in a statement

Trinketts · July 17, 2006 12:31AM

Maybe we won't see anymore of those $100 BIN mistakes now....

sweetwilliet · July 17, 2006 12:33AM

Maybe they will include pictures in their auctions. Just a thought, probably won't happen. Oh, and maybe they will send you the coin pictured, rather than one identical in value according to them in the same holder.

Michigan · July 17, 2006 12:38AM

Only $14 million? I would have thought the company was worth more than that.

ER · July 17, 2006 12:40AM

not surprised.

BillJones · July 17, 2006 12:41AM

The only numismatic entity that seems to change hands more often than Superior is PCI grading service.

Michigan · July 17, 2006 12:43AM

<< The only numismatic entity that seems to change hands more often than Superior is PCI grading service.

>>

How many times has Superior been sold? Anyone know?

Longacre · July 17, 2006 12:45AM

Let me try to dig up the balance sheets. That price seems strange.

BillJones · July 17, 2006 12:48AM

<< 

<< The only numismatic entity that seems to change hands more often than Superior is PCI grading service.

>>

How many times has Superior been sold? Anyone know? >>

I think that it must have been at least three times since the Goldbergs gold out of it years ago. I used to deal with them when the Goldbergs ran it, and I thought it was pretty classy. Now, well you need a scorecard.

goose3 · July 17, 2006 12:51AM

let me guess...

someone got the joint, lock stock and barrell, via a 100.00 BIN.

RYK · July 17, 2006 12:57AM

As a buyer, I would total up the fair value of the inventory and other assets, subtract the debt and other liabilities (ie. Beepy's lawsuit

) and round up to the nearest million. The goodwill could not be worth much, and the barrier to entry in coin auctions, as we are learning from Legend, is non-existent.

ABC123 · July 17, 2006 1:07AM

Or, maybe we will see more of those BIN mistakes !!!

mrearlygold · July 17, 2006 1:09AM

Again?

airplanenut · July 17, 2006 1:30AM

<< let me guess...

someone got the joint, lock stock and barrell, via a 100.00 BIN. >>

This one was $1

JRocco · July 17, 2006 1:32AM

<< let me guess...

someone got the joint, lock stock and barrell, via a 100.00 BIN. >>

Trime · July 17, 2006 12:28PM

I have heard that the owner of Superior is one of the astute judges of the coin market. If this is true , is this the market top?

bidask · July 17, 2006 12:34PM

<< I have heard that the owner of Superior is one of the astute judges of the coin market. If this is true , is this the market top? >>

Could be.

Coinosaurus · July 17, 2006 12:38PM

<< I have heard that the owner of Superior is one of the astute judges of the coin market. If this is true , is this the market top? >>

The coin market overall is quite a different beast than the coin auction market.

In auctions it's all about reputation, connections, and execution. A good market helps, but the fundamentals will make money for the strong players even in a down market. I see Stack's has been cranking out catalogs pretty regularly for over 70 years now.......

MrEureka · July 17, 2006 12:46PM

I have heard that the owner of Superior is one of the astute judges of the coin market. If this is true , is this the market top?

First, you heard that from Superior's marketing department. Hardly an impartial judge of "astuteness".

Second, the decision to sell was probably not made by the person in question.

Finally, even if the guru is a real guru and he did make the decision, the fact that Superior took payment in DGSE stock means the decision had little to do with cashing out of the coin market.

relayer · July 17, 2006 12:47PM

$14 million in stock isn't much of a company.

Maybe DGSE did a BIN and got it cheap?

ColonialCoinUnion · July 17, 2006 12:49PM

<< I have heard that the owner of Superior is one of the astute judges of the coin market. If this is true , is this the market top?

First, you heard that from Superior's marketing department. Hardly an impartial judge of "astuteness".

Second, the decision to sell was probably not made by the person in question.

Finally, even if the guru is a real guru and he did make the decision, the fact that Superior took payment in DGSE stock means the decision had little to do with cashing out of the coin market. >>

Good answer.

TahoeDale · July 17, 2006 5:33PM

The DGSE website has a press release, that gives more details.

Sil DiGenova and Larry Abbott will still be there, among others.

It looks like the combination will be to expand both companies, into the areas that each now specialize. DGSE gets more coin business, and Superior will be selling/auctioning more jewelry.

UncleWiggly · July 17, 2006 7:01PM

<< I have heard that the owner of Superior is one of the astute judges of the coin market. If this is true , is this the market top? >>

I'm not sure what you mean by the owner. The majority of Superior's stock was owned by Standford Financial Portfolio Co. If you had an account with them or did a lot of business with Stanford Coin and Bullion you could consign with Superior with 0% seller's commission and buyback fees. Also, Dallas Gold & Silver Exchnge used to have their own auctions. Not very big. Just 5-10 items up at a time.

Jerry

Barndog · July 17, 2006 7:31PM

Superior has some work to do to inspire enough confidence in me to bid in their auctions again.

seateddime · July 18, 2006 12:48AM

what would heritage sell for?

Longacre · July 18, 2006 2:00AM

Here is the publically-available balance sheet at March 31, 2006. What do you think of the purchase price? Someone is paying a premium for something.

SUPERIOR GALLERIES, INC.
BALANCE SHEETS
(IN THOUSANDS)

March 31,
2006
(Unaudited)
------------

ASSETS

CURRENT ASSETS
Cash $ 471
Accounts receivable, net of allowance for uncollectible
accounts of $148 (March 2006) and $122 (Jun. 2005) 5,208
Auction and customer advances 1,842
Inventories 9,425
Prepaid expense and other 328
------------
Total current assets 17,274
------------
LONG-TERM ASSETS
Property and equipment, net 409
------------
Total long-term assets 409
------------
TOTAL ASSETS $ 17,683
============

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Line of credit - related party $ 10,850
Line of credit 2,200
Accounts payable and accrued expenses 4,394
Notes payable to a related party 200
Notes payable 1,150
Series A stock redemption payable

Total current liabilities 16,594
------------
LONG-TERM LIABILITIES
Notes payable to a related party, net of current portion 300
------------
Total long-term liabilities 300
------------
TOTAL LIABILITIES 16,894
============

STOCKHOLDERS' EQUITY
Preferred stock, 693 shares undesignated,
none outstanding
Series B convertible preferred stock, $1.00 par value, 3,400 shares
designated, 3,400 shares issued
and outstanding with a liquidation preference of $3,400 2,967
Series D convertible preferred stock, $1.00 par value, 2,000 shares
designated, 2,000 shares issued and
outstanding with a liquidation preference of $2,000 1,931
Series E convertible preferred stock, $1.00 par value, 2,500 shares
designated, 2,500 shares issued and
outstanding with a liquidation preference of $2,500 2,488
Common stock, $0.001 par value, 20,000 shares authorized; 4,808 and
4,820 shares issued and outstanding as of March 31, 2006 and June
30, 2005, respectively 5
Additional paid in capital 8,685
Accumulated deficit (15,287)
------------ ------------
Total stockholders' equity 789
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 17,683
============ ============

CoinRaritiesOnline · July 18, 2006 2:09AM

Speaking as a "non-insider" in this transaction, $14 million seems like an awful lot for this company. I suspect it includes assumption of debt and/or millions in inventory. I think the "net" sales price may be far lower.
JMHO

tradedollarnut · July 18, 2006 2:11AM

Too bad one couldn't acquire that accumulated deficit ... now *that's* worth smoething!

mrearlygold · July 18, 2006 2:16AM

I agree that it's a lot of money for that company

Superior has been sold...

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