Collectors Universe, Inc. (NASDAQ:CLCT)

CAPS Rating: 5 out of 5

The Company provides grading and authentication services to dealers and collectors of value coins, sportscards, autographs, stamps, and vintage U.S. currency notes and to sellers and purchasers of diamonds and colored gemstones.

Recs

1
Player Avatar bigshotz76 (< 20) Submitted: 3/9/2007 1:00:41 AM : Underperform Start Price: $7.89 CLCT Score: -130.69

CLCT relies heavily on only a small handful of clients to generate the vast majority of their revenue. Losing any one of these clients would have a far reaching affect on the company's bottom line. The diamond grading business could also prove to be a difficult path of acquiring clients, as the diamond industry would have to ultimately accept them as a market standard. Unlike dealers of coins or baseball cards, gemologists are generally highly trained and certified experts and may not take to the idea of someone else meddling in their job.Contributing to a possible downfall is the fact that PSA, their card grading division, recently received publicity as the imfamous Honus Wagner baseball card they had authenticed and graded was sold for $2.35M. However, a book ("The Card" by Michael O'keeffe) is set for release in May 2007 which will be exposing the fact that the $2.35M Wagner is nothing more than a reprint created in the 1950's, and is altered on top of that. Depending on the fallout, PSA could face a tremendous amount of negative publicity and/or face a costly legal case.

Report this Post 2 Replies
Member Avatar ikkyu2 (99.16) Submitted: 8/1/2007 6:09:31 PM
Recs: 0

I don't believe that the "infamous" Honus Wagner card you refer to was actually exposed as being fake. The Michael O'Keeffe book you refer to is out, and while it does track the history of the card it certainly does not prove it was fake.

Here's an interview with O'Keeffe: http://baseballcardblog.blogspot.com/2007/06/baseball-card-blog-interview-with.html

In his own words: "I can’t say if their card is real or not."

Member Avatar dalonega (< 20) Submitted: 1/12/2010 2:13:50 AM
Recs: 2

These comments are really outdated now. They unloaded their money losing jewelry division, fired the CEO responsible for bringing down the CLCT, hired a new CEO who seems to be doing all the right things, reinstated quarterly div to $0.25 per share which translates to 10% yield per year. CLCT is now making money again and their core business seems to be growing. I only see upside at this point.

Featured Broker Partners


Advertisement