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My scope is to assist private companies both abroad and domestic wishing to go public in the U.S. We invest in the company in the earliest stages, and assist in coordinating their audit, legal RTO or IPO. We also offer M&A identification, execution and consulting, Investors relations... More
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  • Collectors Universe Inc. (NASDAQ: CLCT): Nice Small-Cap, Long-Term Option 1 comment
    Feb 12, 2013 10:30 AM | about stocks: CLCT

    My father, an avid collector, always told me, "There's big business in collecting coins." With this in mind, I decided to research plays that deal in coins and would make for good investing in the long-term. I'm not certain, but I suspect I've not wasted my time. My pick may turn out to be a very profitable play. However, I may be wrong, in which case I may have to discard my father's sage advice. Though dad didn't help me with this choice, this company looks decent for a small-cap long-term play.

    Collectors Universe (NASDAQ: CLCT) is a small-cap leader in grading and authenticating collectibles. The company also collects and publishes information about cards, tickets, autographs, memorabilia and stamps. Personally I'm not a collector, but I just might start collecting something after seeing the numbers for this company. Collectors Universe has a market cap of $98 million. It currently trades at $11.97, which is great for investors who want to get in at a decent entry point. Service revenues declined by 15 percent to $9.6 million in this year's second quarter, compared to $11.3 million in the same quarter of the prior year. The decline was caused by a $1.9 million decrease in coin service revenues. It was, however, offset by a 10 percent rise in card and autograph service revenues. Robert Deuster, CLCT's Chief Executive Officer, explained the loss, "Our lower second quarter revenue compared to last year was due to expected lower modern bulk coin grading and the lower numismatic market activity this quarter."

    Despite the slight dip, a number of factors make this company attractive. Its sports memorabilia and autograph services are expanding, a factor caused by higher customer demand. Active cost reduction measures have allowed CLCT to retain its high gross margin rates and maintain funding for expansion. Bulk coin submission activity is set to increase in the next few months. Finally, dividend yield to stock holders rose from $0.65 per share in 2011 to $1.30 per share in 2012. It was enough to make the market take note. Forbes recently ranked it among the best small cap companies at number 50.

    Obviously this may not be a play for you, or my father for that matter. But my mother once told me patience has it benefits. That's why I counsel patience and sound judgment on your part. I have a hunch this is a nice pick for the long-term.

    Stocks: CLCT
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  • dbtunr
    , contributor
    Comments (565) | Send Message
     
    FYI - CLCT sold it's stamp business about 2 years ago
    15 Apr 2013, 08:29 AM Reply Like
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