Detroit Bear
Deep value, special situations, long-term horizon, value

Collectors Universe And Its Juicy Dividend

In a depressed yield environment, it is rare that you find a fixed income instrument yielding 7%. It's even more rare to find an equity that yields 7%, particularly when the company has a great business model with little competition. However, that is currently the case for coin, card, and autograph grader Collectors Universe (NASDAQ:CLCT). Let's take a quick look at the business, where it's going, and if that fat dividend yield is sustainable.

Quick Background

Collectors Universe currently sports a market cap of $162 million, and it occupies a unique portion of the collectibles space. The firm owns a few businesses, PCGS (Professional Coin Grading Services), PSA (Professional Sports Authentication), and PSA/DNA Authentication Services. These businesses grade...

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