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Originally Posted by Fuddjcal
once again, I agree. I was contemplating making a complaint against collectors universe with the SEC but wasn't sure that was the proper agency? Thanks for making this point loud and clear.
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The SEC and FTC are extremely unlikely to do anything with a complaint or disclosure filed by any member of this board. I say that to save peoples' time if they want to go that route. It is best spent elsewhere...
Collectors Universe (CLCT) is most likely to be sensitive to how this impacts their stock price and financial health. They are not a well capitalized company and they may have inadequate reserves given the magnitude of the problem. Their stock price will likely be driven by the selling or buying of several large institutional shareholders. Here's a partial list:
https://finance.yahoo.com/quote/CLCT/holders?p=CLCT. Note that Renassaince and Dimensional are quant/indexing focused, not fundamentally focused, so one is better off trying to contact the money managers/research analysts at the other funds. If one is unable to make direct contact with these people, contacting investor relations at CLCT is an alternative -- though less impactful -- starting point. Investor relations is in contact with senior management, and will likely inform them if a groundswell of people are making inquiries.
CLCT is most likely to start making the changes people desire if they are getting pressure or inquiries from their large institutional shareholders or senior management recognizes the potential enormity of forced buybacks of altered cards versus their reserves/cash levels. Beyond the $800,000 in reserves they have ~$16 million in cash (around $13.5 million net of debt). They generate a healthy amount of cash (~$12 million over the last 9 months), but a chunk of that goes to paying dividends, the absence of which would hurt the stock price. They also have exposure to the Chinese market in coin grading. One can see several potential problems, so they are certainly not immune to a grassroots effort among hobbyists.