JSA buys equity stake in SGC

[Fred]

Would it be possible that submissions are WAY DOWN and that there are less people doing the "new and shiney" thing which means that there's going to be even less business (not that SGC was picking up a lot of the "new and shiney" business anyway). Perhaps getting out of SGC may be a good business plan right now. My guess is that the unsustainable submission levels of the past have subsided and the price of grading will have to increase just for the companies to break even or turn a small profit.

This hobby has been over ridden by "collectors" that have speculated and lost their butts on card board. Maybe now they can try to corner the market on Puffles, have them graded and make those little toys completely unavailable to the little kids that really LIKE those things. Without submissions the grading business doesn't look so promising. Hey, maybe they can start grading Puffles.

My opinion - one reason that people supported SGC was the people that ran the company were trusted and held in high regard. I'm not saying that JSA can't be trusted but if you're used to something and then there's a sudden "change", it's not always positive. Look at Coca Cola and "New" Coke.

I guess my ungraded cards aren't going any where, any time soon.

One last thought - If JSA takes over ownership of SGC and uses it as a vehicle to peddle their autograph services does that mean that JSA will not be in the business of selling autographs?

[Bilko G]

Im curious to know if JSA is still gonna do auto authentication for BGS?

[barrysloate]

I was thinking the same thing as Fred: maybe all the grading services are suffering from fewer cards being submitted than in the past, and without some new revenue stream they will be hurting. So they may all need to find new ways to structure their businesses, and increase submissions. Perhaps the autograph authenticating market still has a lot of growth potential, more so than baseball cards.

I also predict a lot of consolidation in 2011. There are too many auction houses, and too many auctions. Perhaps by merging forces the industry will be stronger.

[Jay Wolt]

Barry, will "Barry Sloate Auctions" be resurrected in the coming year?

[botn]

Originally Posted by Fred

One last thought - If JSA takes over ownership of SGC and uses it as a vehicle to peddle their autograph services does that mean that JSA will not be in the business of selling autographs?

Dave Forman never stopped selling graded cards and even submitted and sold material amounts of SGC graded cards, despite making public statements that he would no longer sell cards. Not sure anyone will REALLY care what JSA does in this regard. The hobby seems very selective in taking issue with conflicts of interest which have existed, which is really too bad.

[barrysloate]

Don't think so Jay, but thanks for asking. I've fallen out of the loop.

[drc]

JSA used to authenticate autographed cards for BGS.

[drc]

JSA is longtime and well respected authentication company-- well versed in dealing with collectors and dealers. Other than they are not "baseball card guys," I don't see a problem with them having stake. That he worked for PSA might give him some knowledge on that front. Also, my personal experience is that Spence is a good guy and helpful to normal folks. He's answered my emailed autograph questions in the past.

[Orioles1954]

Originally Posted by Fred

Would it be possible that submissions are WAY DOWN and that there are less people doing the "new and shiney" thing which means that there's going to be even less business (not that SGC was picking up a lot of the "new and shiney" business anyway). Perhaps getting out of SGC may be a good business plan right now. My guess is that the unsustainable submission levels of the past have subsided and the price of grading will have to increase just for the companies to break even or turn a small profit.

This hobby has been over ridden by "collectors" that have speculated and lost their butts on card board. Maybe now they can try to corner the market on Puffles, have them graded and make those little toys completely unavailable to the little kids that really LIKE those things. Without submissions the grading business doesn't look so promising. Hey, maybe they can start grading Puffles.

My opinion - one reason that people supported SGC was the people that ran the company were trusted and held in high regard. I'm not saying that JSA can't be trusted but if you're used to something and then there's a sudden "change", it's not always positive. Look at Coca Cola and "New" Coke.

I guess my ungraded cards aren't going any where, any time soon.

One last thought - If JSA takes over ownership of SGC and uses it as a vehicle to peddle their autograph services does that mean that JSA will not be in the business of selling autographs?

Granted the "new and shiney" market isn't doing particularly well. However, I fail to see how that has anything to do with SGC. Modern collectors almost always go with either BGS or PSA.

[bbeck]

When I recently dropped by SGC for a card submission I asked how business was and was told it was quiet ( a sign of the economy) , except for the occasional burst of auction house submissions. I think JSA made a smart investment in a solid pre war brand name in the grading market. JSA runs a tight ship (I have no idea what their percentage of ownership is) and as long as the key graders stayed on why should the SGC name be tarnished. SGC has had other major executive changes over the years. I think a more important question is the Mastro/Forman proceedings and what effect that will have on SGC.