What will Collectors Holdings do with SGC?

[Peter_Spaeth]

Originally Posted by puckpaul

I dont think a 78% market share company should be able to buy a 7% player. Hope it gets rejected.

At a glance it would seem to entrench PSA's monopoly position, and/or threaten to substantially lessen competition by taking away the one competitor who arguably could constrain PSA's pricing. These are the basic principles that inform the Merger Guidelines. No clue how the government would view it though, if they have a view at all. May not care. I guess if I were defending it I'd say the entry barriers to starting a grading service aren't that high, so PSA is also constrained by potential competition. Also deal may be under filing thresholds under Hart Scott Rodino Act making review unlikely.

[raulus]

Originally Posted by Peter_Spaeth

At a glance it would seem to entrench PSA's monopoly position, and/or threaten to substantially lessen competition by taking away the one competitor who arguably could constrain PSA's pricing. These are the basic principles that inform the Merger Guidelines. No clue how the government would view it though, if they have a view at all. May not care.

I wonder to what extent it makes a difference that this is a weird backwater part of the economy. We're not talking about groceries or internet service. This is a service that a tiny minority of Americans will ever use or even come into contact with, and it's definitely an optional service. Extra so for people who are part of our world, yet are loud and proud antigraders, like Jingram.

[Peter_Spaeth]

Originally Posted by raulus

I wonder to what extent it makes a difference that this is a weird backwater part of the economy. We're not talking about groceries or internet service. This is a service that a tiny minority of Americans will ever use or even come into contact with, and it's definitely an optional service. Extra so for people who are part of our world, yet are loud and proud antigraders, like Jingram.

Well you saw how much the government cared about rampant card doctoring, although maybe not a fair analogy. But yeah, doesn't seem like something that would be of great concern. Also deal may be under filing thresholds which makes review unlikely. Private parties can also sue of course.

[jjbond]

and I just sent SGC my largest grading order ever. Sigh....

[Fred]

I selected "Other" because PSA will find a way to really screw things up that hasn't been thought of yet.

In the end, does anything really change when you consider the apathetic attitude that is taken with regard to TPGs inability to be consistent in assessing pieces of cardboard?

[parkplace33]

I am wondering the sentiment about SGC at the Philly Show. Will be interesting.

[DeanH3]

What's the saying? Buy the fear, sell the hype? Something like that.

If SGC is seen as a reputable grader now, why should those cards already graded be looked upon as substandard? What really changes about the card? Nothing. I don't think they should be considered substandard. The card is still the card. We all know we can find over/under-graded cards in both slabs, old and new. SGC would not be going away because of a default in their grading or some kind of a scandal. So, should SGC cards be looked at differently? I think not. I will still continue to buy the card and not the grade. If that card happens to be in a SGC holder, I'm OK with that. Seems like it might be a little premature to panic. Who knows what the future folds. It will be interesting to see.