Collectors (PSA) Acquired SGC

[The Nasty Nati]

I’m surprised PSA never considered making a black slab add on option since a big selling point for SGC was the great look of their black “tux” slab.

All PSA had to do was make their current slab available in also a black color instead of clear and maybe make it cost an extra $2-5. Easy extra revenue.

[Casey2296]

Originally Posted by The Nasty Nati

I’m surprised PSA never considered making a black slab add on option since a big selling point for SGC was the great look of their black “tux” slab.

All PSA had to do was make their current slab available in also a black color instead of clear and maybe make it cost an extra $2-5. Easy extra revenue.

CSG missed the boat on that one too, a black apron is so much more aesthetically pleasing for pre-war cards that they never would have had to buy them, they would have just put them out of business offering a black apron.

[jethrod3]

I'm disappointed. Just very disappointed. But I just decided that if I win the lottery, it would be fun to create a new grading company! Come on, Powerball numbers!

[painthistorian]

Lets see...SGC used to have a contact telephone, maybe now they will implement a new one for contact, have not submitted since they dropped that

[Flintboy]

Has Nat Turner said or has anyone asked him what the long term plans are with the purchase? He’s always seemed pretty open on social media sites and if I remember correctly is a member here.

[cgjackson222]

I'm not saying beer is analagous to card grading, but I'm hoping that this is sort of like InBev or one of the big guys buying a craft brewery and not changing the recipes (diluting them with corn or rice instead of barley, etc.)

If it is true that Collectors tried to buy SGC multiple times in the past, but failed, I wonder what, if anything, changed this time?

Was it just more money? Was it that Peter sees the writing on the wall and that card grading (like beer) may have topped out and selling in the future would not be as profitable?

Or could it be that SGC got better terms? For instance, a guarantee that SGC could continue on without much interference, or that it would even get an infusion in cash to make improvements? This is probably just wishful thinking on my behalf, but everyone can dream.

[gunboat82]

Originally Posted by cgjackson222

I'm not saying beer is analagous to card grading, but I'm hoping that this is sort of like InBev or one of the big guys buying a craft brewery and not changing the recipes (diluting them with corn or rice instead of barley, etc.)

I saw your AB InBev analogy and had a fleeting twinge of optimism. But then I remembered that they stopped making Bourbon County Coffee Stout in 12-oz. bottles, and the price per ounce nearly doubled.

[bk400]

The terms of Collectors' purchase would tell us a lot, but unlikely that much will be disclosed publicly given that both the buyer and the target are private companies with private shareholders.

I would think that PSA is really "buying" SGC's loyal customer base. It wouldn't surprise me if PSA saw data in their due diligence that suggests that SGC devotees are unlikely to submit to PSA as a general matter.

As such, if the deal is announced and SGC customers flee en masse to PSA, PSA probably wouldn't care so much. But if they hate PSA and flee to CGC or Beckett, PSA would look like a muppet.

So, I wouldn't be surprised if there are conditions in the deal that link the price that the SGC shareholders ultimately receive to the financial performance of the SGC unit over a certain time period -- maybe 1 year.

If this is the case, I wouldn't be surprised if you saw over-grading at SGC during this 1-year period.