Crossover's and PSA

[egbeachley]

There have been a couple recent comparisons between the 2 companies where SGC is beating PSA 2-1 on the same grades for the same cards (meaning when 30 cards of the same grade are compared, 20 SGC cards went for more and 10 PSA cards went for more). Same thing on the non-sports side. This is in direct contrast to a couple years ago when it was the other way around and seems to be relevant based on the sample sizes. And yes, I've said that in certain cases (T206 in grade 9), they sell for considerably more. But not for the average card. I'm trying to find the posts to link.

This is an observation based on observable events, not an opinion. My posts on PSA going out of business is an opinion based on many factors such as their cessation of dividends, recording a deferred tax valuation allowance, stock market price below repurchase plan agreements, executive poison plan implementation disagreed upon by major shareholders, lack of integrity on violation of the service agreements, etc.

As a third-party service provider they are following the direction of Arthur Anderson, not Price Waterhouse Coopers.

[egbeachley]

Here is a short post from last year from a thread call "Grading Companys" from the non-sports side on similar N224 cards sold the same week and the results. Not statistically definitive though.


..........Just waited to see how the SGC Kinney Military cards graded 80 (which they also call a 6) compared to the PSA Kinney Military cards graded 6.
Same grade, different companies. PSA got $14 on average while SGC got $18 on average..........

But what is interesting is a post on the thread from a PSA customer where he said he has submitted between 50-100 SGC cards (broken out) and NEVER has received a higher grade from PSA. I believe him. That was a year or more ago. That is not the case anymore (see a few posts above). It is apparent that PSA has loosened grading standards and that is what I am basing my opinions on, along with their financial results. Again, see the Arthur Anderson comparison.

Now looking for the other comparison threads.

And Jamie, no lies or falsehoods in anything I've written.

Eric

[cyseymour]

PSA posted a profit last quarter. Can you recall a time when a company that was posting profits went out of business? Also, their share price has increased 60% over the last few months. They hold $10 million in cash. There has been massive insider buying. It is one thing to be a "bear" on their stock, but there is little to support their going out of business. Also, your claims, as you know, may effect the opinions and actions of those on this board, which I still suspise is your true agenda.

As for the pricing, it does appear that SGC cards are increasing in value, but there are thousands of cards on the market. Simply because you found "a couple" examples, of which you fail to mention any particulars, is scant evidence that the conventional wisdom of PSA cards going for more should be overturned. PSA cards definitely go for more in all high grades, not only 9's. I do not follow the prices of lower grade cards, but I see no concensus that SGC cards deliver higher prices as you suggest, and no evidence either, which would mean that your both your arguments, that a) PSA is going out of business, b) that SGC cards sell for more - is complete speculation and conjecture. You also failed to deny that you have had a personal experience with PSA that you have found less than satisfactory, and my speculation is that that is truly the case.

[cyseymour]

Eric,

I had not read your second post, but I hardly think that price results from a set of obscure Kinney Military cards is an accurate indicator of the total market for SGC vs. PSA prices.

Also, just because one or two posters has suggested that they have recently received higher grades from PSA, that again, a sample of one or two people, is hardly a significant sample size in which to judge the strictness of an entire companies that grades hundreds of thousands of cards.

I am not thrilled myself with the stories about PSA that have come off this board, especially the one where PSA bumped two cards based on a customer complaint of not having a report that explained the grades. It is not that I believe that all PSA does it angelic - hardly. But I do believe that, in spite of a few widely written cases, they are a respectable, and highly credible grading company. To suggest that PSA may be going out of business, when in fact they are turning a profit, in my opinion, is simply irresponsible and slanderous. And again, I wish I knew more about Kinney Military cards, but I hardly think that one strange subset of non-sports cards is an accurate indicator for the entire pre-war market.

[egbeachley]

Originally Posted by cyseymour

PSA posted a profit last quarter. Can you recall a time when a company that was posting profits went out of business? Also, their share price has increased 60% over the last few months. They hold $10 million in cash. There has been massive insider buying. It is one thing to be a "bear" on their stock, but there is little to support their going out of business. Also, your claims, as you know, may effect the opinions and actions of those on this board, which I still suspise is your true agenda.

Their small quarterly profit was their first in 3 years and consists of 1 profitable division (coins) and the rest losses. Their 60% price gain was unusual in that the low price was below book value. Their $10M is about to become $5M after the stock purchase. Their insider buyers are the only buyers and a large shareholder thinks they can be broken up (sold) for $7 per share.

As far as my objectives...none really since I don't grade cards. Except as an Accountant I don't like some of the things they have done. I just read financial statements and make predictions. But predictions don't count unless they are in writing. This is my writing.

I wasn't going to make a Part 3 post except that the stock purchase plan was very unusual and needed to be mentioned.

I should mention that I don't have any financial stake in any grading company either.

And yes I agree that that sample is too small. But it is the first I found.

[cyseymour]

If you own cards that are graded by one of the companies at hand, then you inherently have a financial stake in the grading companies. I am not an accountant, but I do not see stock purchase plans as unusual when share prices are low. Apple Computer announced a buyback plan when their shareprice was low, and they are hardly going out of business. Exxon Mobil buys back shares almost every year. These types of actions are very common for value stocks such as CLCT. They are a publicly traded stock and have many more buyers than just the insiders, so that statement of yours is false. I do not know many accountants who would think that a small company with $10 million in cash that is making a $700,000 profit and buying back shares is going out of business, so that is a new one to me. But apparently you have read "some of the things" in a financial statement that you "don't like" - and then made an EXTREMELY one-sided thread about how they were going out of business.

In ten years, when you are creating a thread called "Part 17 - PSA going out of business?", I will roll my eyes and think, the hate goes on.

[egbeachley]

The significant and unusual part is not that they announced an open-ended buyback plan which is common as you mentioned, but that they announced a dutch-auction type plan where they committed 1/2 their cash to paying a minimum of $5.00 per share. Yet the price is at $4.80. People are selling for lower than what they would get in the plan.

I have about 40 graded cards. I expect they will still be there no matter what happens to the company that graded them.

In 10 years I'll be on part 44, one post per quarter

[barrysloate]

When you compare prices realized among PSA and SGC cards, you need to divide them into two categories: set registry cards, and collector cards.

PSA cards achieve higher prices when they fall into the high end, highly competitive set registry market. But at lower grades, more the collector market, SGC cards generally do better simply because they are more strictly and accurately graded.

You can look at the set registry as an almost distinct hobby from the one most of us indulge in.

[Potomac Yank]

It's better than todays Wall Street Journal.

[cyseymour]

Eric,

It's not necessarily irregular that the share price is slightly lower than the price PSA promises to buy shares at. Now, if it was trading at $2.80 when PSA promised to buyback at $5, that would be remarkable. But at $4.80, you are talking about a 4 percent discount - hardly worth worrying about. It may be that people believe that after PSA purchases the shares, the price will again fall. I do not know, but with these micro-cap types of stocks, there are often share prices that are either volatile or temporarily inexplicable. The stock being off four percent is hardly cause for concern.

As far as whether the cards themselves will be there, of course they will, but the values of the cards will be effected if a company goes out of business. Look what happened with GAI cards. So your spreading false rumors, I think, is intended to scare people into worrying about of PSA cards and scare them away from submitting to PSA. I am not fooled. Is anyone? Anyway, you can click the link on my signature to see exactly what I own. I am not hiding anything. I am not spreading half-truths and false rumors. You have failed to disclose what I suspise - that you are a disgruntled former PSA customer with a personal vendetta towards the company. Those who participate on this board should keep that in mind when they read your posts.

It seems like PSA spends considerably less time worrying about the accuracy of the grading of low-priced, low-grade cards, as reflected by their fee structure. I do not closely follow the mid-grade market, but I gather PSA might outperform SGC there as well.

Anyways, this is my last post on this topic for now, as I will be gone for a week and the subject has become tiresome. Anyone with an ounce of common sense will see that I am right. Yes, this board has a lot of SGC groupies, so you have a good forum to spread your half-truths and rumors. Maybe you did not expect someone to stand up to you about it. It may not be the popular thing to do, but I believe it was the ethical action. Good luck with your collection.