Google Finance
Filing
Nov. 4, 2016
2015 Q2 Data, Year end June 30.
Current Price: $17.6
1.Basic Information
(1) History
Found by David Hall at 1986, named Professional Coin Grading Service(PCGS), later created Professional Sports Authenticator(PSA). At 1999 it became Collectors Universe and IPO'd at 1999 at $6/share. Its main business include coins grading. sports card grading, autograph authentication. At 2000, its revenue boomed to over $40m. Then down at 2002, 2004, 2009. Currently is around $60m.
(2) Business-related:
In 2016, total revenue $61m, of which around 62%($38m) in coin business, 15%($9m) in card business, 8%($5m) autograph business, rest 15%($9m) in other business.
Gross margin stayed 60% since 2010, quite a high margin business.
Pretty capital light, only $3m in fixed assets.
(3) Management.
Robert G. Deuster became current CEO since 2012. Before that, he was CEO of Newport Corporation since 1996 and retired at 2007. Newport was sky-rocked at 2000 and had a rough time at 2002 period but recovered pretty well. Early 2016 it was sold at around $900m. Its revenue is roughly 10 time of CLCT's. It is quite amazed me that he came out from 5 years of retirement to accept the job.
(4) Debt and Credit Facility.
No Debt and around 10m in cash.
(5) Insider holding, options, Insider trading info, share buyback.
(7) Auditor
(8) Industry comparison.
3. Valuation
Gross margin stayed 60% since 2010, quite a high margin business.
Pretty capital light, only $3m in fixed assets.
(3) Management.
Robert G. Deuster became current CEO since 2012. Before that, he was CEO of Newport Corporation since 1996 and retired at 2007. Newport was sky-rocked at 2000 and had a rough time at 2002 period but recovered pretty well. Early 2016 it was sold at around $900m. Its revenue is roughly 10 time of CLCT's. It is quite amazed me that he came out from 5 years of retirement to accept the job.
(4) Debt and Credit Facility.
No Debt and around 10m in cash.
(5) Insider holding, options, Insider trading info, share buyback.
David Hall still holds around 600k shares which probably the most in management.
CEO holds only 80k
(6) Employee numbers
CEO holds only 80k
(6) Employee numbers
(7) Auditor
(8) Industry comparison.
(9) Major events
2. Financial data.
At Aug. 2016, it entered a contract with China Guojin Gold(国金黄金) for until 2020, will likely creates $2.8m to $4.6m yearly revenue.
3. Valuation
(1) Adjusted for the 3:1 reverse split. The stock is actually trading below its IPO price of $6 after 17 years. Revenue is just 50% higher than origin. However, profit seems much better, especially since 2010, net income was much stable and quite profitable at more than 12%.
(2) Currently, it pays a $1.4/share dividend which is $12m/year. Very generous but fall short of cash generation by at least $5m, so now the cash is only $12m. I doubt if they can continue to support the dividend without taking any debt.
(3) Currently, it is trading at 20 P/E, not really cheap.
4. Risk
(1) Collections tend to tie to economic conditions. When the economy was down at 2002-2004 and 2009, it got hit hard. In the future, the same will happen if there is a recession.
(2) The high dividend might not be preserved in the future. If been cut, no one will be happy. The company even hiked dividend last year which is totally unnecessary. It should reserve some cash or even looking into some acquisition to diversify the business.
5. Conclusion
6.Links
Sept. 1, 2018
2018 data.
Price: $14.91. Shares: 9m. Cap: $135m.
(1) After two years since I first wrote about it, the company had quite a show. The year 2017 was a good year with net income of $8.5m and the share price had raised up to $30. However, by early 2018, the business had pulled back and it cut the dividend by half to $70c/share/year, which equals around $6m/year. after two dismal quarters, Q4 2018 seems stabilized and the share went back from $14 to close $15.
(2) The business seems still below its historic performance with gross margin below the normal level. The real income might be just $6 to $7 level which makes current P/E is still around 20. The major reason is currently sales for newly minted coins were down due to the low gold price I guess.
(3) I believe the business could recover to $7.5m level. The dividend cut is very necessary although it is still high in my view. Current price is not that cheap if the business can't grow back.
Sept. 1, 2018
2018 data.
Price: $14.91. Shares: 9m. Cap: $135m.
(1) After two years since I first wrote about it, the company had quite a show. The year 2017 was a good year with net income of $8.5m and the share price had raised up to $30. However, by early 2018, the business had pulled back and it cut the dividend by half to $70c/share/year, which equals around $6m/year. after two dismal quarters, Q4 2018 seems stabilized and the share went back from $14 to close $15.
(2) The business seems still below its historic performance with gross margin below the normal level. The real income might be just $6 to $7 level which makes current P/E is still around 20. The major reason is currently sales for newly minted coins were down due to the low gold price I guess.
(3) I believe the business could recover to $7.5m level. The dividend cut is very necessary although it is still high in my view. Current price is not that cheap if the business can't grow back.
