What will Collectors Holdings do with SGC?

[Snowman]

Originally Posted by Peter_Spaeth

I agree with Howard there likely was a defensive motivation as part of the equation. That said, I think you're (1) underestimating the huge revenues they would make from crossover if they eventually discontinue the brand and (2) overestimating any loss of market share. There's noplace else to go, people who want slabbed cards for the most part are going to submit to PSA in my opinion if there is no SGC per se. And I think there likely are efficiencies to be gained by folding in the SGC brand vs. inefficiencies in propping up two brands one of which is small. That said, I have no idea.

I think you're overvaluing the value of the crossover revenue component. First, it's a one time shot. Collectors makes more crossover money by keeping both brands alive and allowing submitters to continue to cross cards back and forth. Second, simply taking on more crossovers comes at an opportunity cost. There are always tradeoffs. Their overall bandwidth is still limited by headcounts, and the tradeoff to offer crossover specials is to not offer other specials that they otherwise would have. And hiring enough extra people just to expand their capacity for long enough to handle the crossover wave only to no longer need them when it's over probably isn't worth the effort and added expense.