Collectors Universe, Inc. (NASDAQ:CLCT)

TMF1000 (99.78) Submitted: 10/13/2011 11:19:31 AM : Start Price: $12.16 CLCT Score: -24.40

Caps starting price $14.34:

I have watched this company for a long time with great interest. It is a very small cap company - a market cap of about $112 million. It is small. Earnings had some one-time charges and they discontinued part of their business so Net income is down from last year. However, Cash flow was up from last year which is important since they pay a $1.30 per year in dividends which gives them a 9.1% yield.

Now I am sure you are thinking well that dividend is going to be dropped or lowered. And they may lower it. But their financials are solid. Last year, they paid out $9.944 million in dividends and made $9.808 million in cash flow. They have no debt and $21.926 million in cash. But if they wanted to lower the dividend even by 50%, it would still be a solid dividend yield which they could easily afford.

There are problems – They are dependent on the economy. Their growth is suspect, but they should be able to pay a strong dividend. There are no analysts following the company, so one has to piece together the history of the company.
I believe they provide a very important service to the collectible industry. I think this little company may help me monitor a key piece of macro information.

I know there are others that have CLCT on caps. I will be writing a full page report on them in time. This one highly interests me for many reasons