ValMan

The Bull Case on Collectors Universe (CLCT, EBAY)

Collectors is not a proxy for Ebay’s overall business, for example US vs. International or categories outside of coins, autographs, stamps and cards. However Collectors, like eBay, is an excellent play on the overall shift to online commerce and trading where there is a greater need for Collectors third party authentication services. To give you a sense currently on eBay there are 7,651 PCGS (Collectors brand name in coins) graded coins, which represents only 11% of the 68,011 coins now on eBay. What is impressive is that last year at this time roughly only 7% of eBay's coins were graded by PCGS. I expect Collectors to continue to further penetrate the eBay market, which is a proxy for Collectors growth in overall internet based transactions.