03-05-2024, 10:08 PM
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Peter Spaeth
Member
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Join Date: Apr 2009
Posts: 30,682
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Quote:
Originally Posted by Rhotchkiss
Peter, the huge revenues are a one-time event. I suppose if they make enough to reimburse what they paid for SGC, then it’s a wash. But that seems dumb to pay good money for a company hoping you recoup your purchase price from crossover fees as you kill the company.
Inversely, SGC has intrinsic value and income stream. You can earn a return from operating it now, and likely increase that return (and PSA profits) by combining efficiencies.
Buying SGC for one-time cross-over revenue is short term gain for long term pain, or maybe break even. Running SGC, which is growing, and maximizing efficiencies is a short term gain and long term gain.
And, I do believe PSA will lose some market share if they shut down SGC. Those collectors, and many in prewar/vintage are collectors (vs investors) don’t care so much about the flip and will move the CGC. Hake’s has some prewar item, including to Baltimore News Cards, that look real nice in CGC flips.
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Time will prove one of us right and the other wrong. My guess is the brand is terminated by mid to late 2025. We'll probably have clues one way or the other before then.
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My avatar is a sketch by my son who is an art school graduate. Some of his sketches and paintings are at
https://www.jamesspaethartwork.com/
He is available to do custom drawings in graphite, charcoal and other media. He also sells some of his works as note cards/greeting cards on Etsy under JamesSpaethArt.
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