Collector's Universe (CLCT) Stock Cratered -- fewer gradings

Discussion in 'Bullion Investing' started by GoldFinger1969, Mar 21, 2018.

  1. GoldFinger1969

    GoldFinger1969 Well-Known Member

    CLCT is the company that includes PCGS. A month ago they reported their quarterly earnings. Stock got crushed about 35% in 1 day. U.S. Mint had lousy sales in 2017 plus classic coin gradings falling alot killed them.

    Could be a trend to watch between PCGS and NGC.
     
    DrDarryl likes this.
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  3. NorthKorea

    NorthKorea Dealer Member is a made up title...

    It's actually more likely due to PSA than PCGS. PSA has been losing market share to Beckett's new autograph authentication service, as well as their grading service.

    That, coupled with lower membership subscriptions, would lead to lower revenue for the quarter.
     
  4. Blissskr

    Blissskr Well-Known Member


    Actually in there own press release they mention increases in cards and autographs before stating the losses cause as being slow down in the coin service area

    'Our coin service revenues declined by $4.4 million, or 34%, and $0.9 million, or 4%, in the second quarter and first six months, respectively, of the current fiscal year, as compared to the same respective periods of last year. China coin revenues decreased by $2.2 million, or 59%, in this year's second quarter, which we believe was primarily due to seasonality and period-to-period volatility we have seen in that business. For the six months, China revenues increased by $1.0 million or 21%, due to the increase in those revenues during this year's first quarter. In addition, revenues generated by our US coins business declined by $2.3 million, or 27%, and by $2.2 million, or 13%, in the second quarter and six months ended December 31, 2017, respectively, reflecting a general slowness in the coin market in this year's second quarter.'

    https://www.nasdaq.com/press-releas...-second-quarter-of-fiscal-2018-20180207-01308
     
  5. ldhair

    ldhair Clean Supporter

    A lot of folks keep talking about how tight they are right now. A while back they were saying how loose they were. This can't be good for them.
     
  6. baseball21

    baseball21 Well-Known Member

    The stock was crushed because the dividend was cut. Big money used the stock for that. It's really not rocket science
     
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  7. Nathan401

    Nathan401 Supporter! Supporter

    Crazy coincidence on this thread, I made a stock purchase earlier today. Interesting to see how this plays out. I was flush after KILLING it with GERN yesterday and today.
     
  8. NorthKorea

    NorthKorea Dealer Member is a made up title...

    Ironically, the 14% "record" increase was well below their internal growth projections. Steve Grad leaving is a huge problem for them, going forward.

    And, yes, the dividend was the driver... BTW, why is this in bullion and not GD?
     
  9. Santinidollar

    Santinidollar Supporter! Supporter

    Just curious. At today’s price, the dividend is 4.45 percent, which ain’t shoddy. What had it been?
     
  10. baseball21

    baseball21 Well-Known Member

    I can’t remeber the percentage but they cut they actual payout by at least half. It was a really nice dividend
     
  11. NorthKorea

    NorthKorea Dealer Member is a made up title...

    Last I looked, which admittedly was Sept or Oct, I think it was 7.2%.
     
  12. Nathan401

    Nathan401 Supporter! Supporter

    I bought a small position recently when it was at 15. Was this a good or bad decision? I'm an amateur playing around with Ameritrade. I'd like to hear a few experienced opinions.
     
  13. Santinidollar

    Santinidollar Supporter! Supporter

    $15 stock with a 4.4 percent dividend? Might be a winner, depending on whether cash flow will cover the dividend. But do some studying of their financials.
     
  14. baseball21

    baseball21 Well-Known Member

    It’s hard to say the dividend was such a big part
     
  15. medoraman

    medoraman Supporter! Supporter

    I have tracked them for years. Never bought any though since I always was worried where the revenue would come from once all classic coins that are going to be slabbed are slabbed. They can only play the "loosen standards to encourage crackouts" game to a point.

    I am a fundamentals investor. Do you believe their grading growth will continue? If so, it may be an attractive stock for you. Personally I am bearish.
     
  16. baseball21

    baseball21 Well-Known Member

    We’re a long ways away from those all being slabbed especially with how many people still crack slabs or stubbornly refuse to accept them.

    Regardless world coin revenue is large and both PCGS and NGC could survive off the modern issues issued every year if they had too.

    As far as the stock who knows, the cut dividend really hurts it in this climate since it’s obviously not going to be a 1000 dollar a share stock ever. It could certainly benefit in a climate where people look more for dividends than riding growing stocks
     
  17. Nathan401

    Nathan401 Supporter! Supporter

    It's up $1.50 per share since I bought.
     
  18. Tater

    Tater Coin Collector

    Maybe turn around times will be better now. o_O
     
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