Page 1 of 1 1
Topic Options
#124745 - 05/21/03 08:03 AM CU Financials Paint Shaky PSA Picture
vayank
The Amazing Card-Man


Registered: 04/13/02
Posts: 948
Loc: Alexandria, Va

Offline
Folks,

Finally got around to reading the CU quarterly financials. Since CU has a number of entities contributing to the bottom line, information and commentary on PSA specifically isn't the focus. But these financials used some strong language to describe sportscard grading revenues as a weak link. I have pulled out that text and included the whole document below.

Quote:

Sportscard grading revenues for the three and nine months ended March 31, 2003 and 2002, respectively, declined significantly compared to the same periods last year, indicating a continued degradation in the demand for sportscard grading.




Here is a three part question:

1) Do you think the current CU/PSA relationship is a sustainable status quo?

2a) If yes, how do you explain the weak, quarter after quarter, performance of the hobby's top brand?

2b) If no, what comes next?

3) What does it all mean for SGC?


====
May 15, 2003

COLLECTORS UNIVERSE INC (CLCT)
Quarterly Report (SEC form 10-Q)
RESULTS OF OPERATIONS
Net Revenues


Three Months Ended Nine Months Ended
March 31, March 31,
--------------------------- ---------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
Net revenues $ 15,604,000 $ 12,856,000 $ 39,509,000 $ 32,799,000

Net revenues include fees generated from the grading and authentication of sportscards, coins, autographs and stamps; the sales prices of owned collectibles sold in our auctions and directly to collectors; commissions earned on sales of consigned collectibles at our auctions; and revenue from the publication of collectibles magazines. Net revenues are determined net of discounts and allowances, product returns, and commissions paid to consignors on sales of their collectibles.

Net revenues for the three and nine months ended March 31, 2003 and 2002, increased by 21% to $15,604,000 and by 20% to $39,509,000, respectively, as compared to the corresponding three and nine-month periods of the prior year, due to (i) continued strength in the coin market, which positively impacted each of Collectors’ business units: grading and authentication services (“Services”), auction and direct sales (“Commerce”), and (ii) to a lesser extent, sales during the third quarter of 2003 of gold bullion coins, which were significantly greater in amount than has been the case in previous periods and which are not expected to continue at the levels experienced in the current year’s third quarter.

Grading and authentication revenue increased by 1% and 12% in the three and nine-month periods ended March 31, 2003, respectively, when compared to the same periods last year, primarily because of a continued increase in grading submissions of collectible coins, which was offset somewhat by a decrease in sportscard grading submissions. Grading submissions for coins began to increase noticeably in the quarter ended June 30, 2002 and continued to do so throughout the three and nine months ended March 31, 2003. Sportscard grading revenues for the three and nine months ended March 31, 2003 and 2002, respectively, declined significantly compared to the same periods last year, indicating a continued degradation in the demand for sportscard grading. We believe the increase in coin grading submissions was attributable to a number of factors, including our introduction of new marketing programs and improvements in consumer confidence and increases in the market values of coins, which tend to be countercyclical to the economy and the stock market.

Auction and collectibles sales revenues were higher by 33% and 26% for the three and nine months ended March 31, 2003 and 2002, respectively, as compared to the same prior year periods, due primarily to an increase in demand for rare coins, currency, and gold bullion. We believe the increased demand may be the result of investors looking for investment alternatives to the stock market and the increases in market values of gold and silver that often occur during periods of economic uncertainty.

Gross Profit


Three Months Ended Nine Months Ended
March 31, March 31,
------------------------- ---------------------------
2003 2002 2003 2002
----------- ----------- ------------ ------------
Gross profit $ 5,085,000 $ 4,820,000 $ 14,727,000 $ 12,593,000
Gross profit margin 33 % 37 % 37 % 38 %

Gross profit is calculated by subtracting the cost of revenues from net revenues. Cost of revenues consist of labor to grade and authenticate coins and sportscards, production costs, printing, credit cards fees, warranty expense and the cost of owned collectibles sold in our auctions. Gross profit margin is gross profit stated as a percent of net


revenues. Gross profit for the three-month period ended March 31, 2003 increased 5% due to the increase in both grading and collectibles sales revenues. However, the gross profit margin in the quarter ended March 31, 2003 declined to 33% from 37% in the same quarter of the prior year. That decline was due to a combination of factors, the most important of which consisted of (i) more rapid growth in the Company’s auction and direct collectibles sales than in its higher margin grading and authentication services, (ii) gold bullion sales that occurred in the third quarter of the current year at virtually no profit margin, (iii) a loss in the third quarter on the sale of gold ingots, (iv) an increase in the reserve for inventory valuation, and (v) the Company’s revenue recognition policies which require it to recognize the costs and other expenses of auction sales in the accounting period when those auctions take place, but which preclude recognition of the revenues from those auction sales until the sales proceeds are received, usually 45 days after an auction is conducted, which means that revenues from auctions conducted in the second half of the quarter had to be deferred into the succeeding quarter.

For the nine-month period ended March 31, 2003, gross profit increased 17% to $14,727,000 from $12,593,000 for the comparable year earlier period. Gross profit margin decreased from 38% to 37% from the same prior year period, primarily as a result of a change in the mix of revenues due to a proportionally greater increase in auction commissions and direct sales revenue, as compared to coin grading submissions.

Selling, General and Administrative Expenses


Three Months Ended Nine Months Ended
March 31, March 31,
------------------------- ---------------------------
2003 2002 2003 2002
----------- ----------- ------------ ------------
SG&A $ 5,196,000 $ 5,273,000 $ 15,186,000 $ 15,594,000
Percent of net revenues 33 % 41 % 38 % 48 %

Selling, general and administrative (“SG&A”) expenses include primarily advertising and sales promotional expenses, wages and payroll-related expenses, professional and consulting expenses, travel and entertainment, facility-related expenses and security charges. SG&A expenses declined slightly to $5,196,000 for the three-month period ended March 31, 2003 from $5,273,000 in the corresponding period in the prior year, and increased by 3% to $15,186,000 in the nine-month period ended March 31, 2003 from $15,594,000 for the nine-month period ended March 31, 2002. SG&A as a percent of net revenues decreased from 41% to 33% and from 48% to 38% for the three and nine-month periods ended March 31, 2003, respectively, when compared to the same prior year periods. The increases in the amount of SG&A expenses in the nine months ended March 31, 2003 occurred as a result of (i) severance compensation expenses; (ii) a consulting fee for services in securing the governmental approvals needed to obtain California Enterprise Zone Hiring Tax Credits; and (iii) a $665,000 increase in bad debt expense, which is discussed in the paragraph below on provision for doubtful accounts. The declines in SG&A expenses as a percentage of net revenues were attributable to the increases in net revenues in the quarter and nine months ended March 31, 2003.

Provision for Doubtful Accounts


Three Months Ended Nine Months Ended
March 31, March 31,
---------------------- ---------------------
2003 2002 2003 2002
----------- ------- ---------- --------
Provision for doubtful accounts $ 50,000 $ 9,000 $ 756,000 $ 41,000
Percent of net revenues 0.3 % 0.1 % 2.0 % 0.1 %

The provision for doubtful accounts increased $665,000 in the nine months ended March 31, 2003 as compared to the corresponding period of the prior year. $500,000 of this additional provision is to establish a reserve against receivables from a large customer that has experienced financial difficulty, and $165,000 of the provision is to increase reserves against a portion of auction receivables that have remained unpaid after ninety days from the date of sale.


Amortization of Goodwill and Intangibles


Three Months Ended Nine Months Ended
March 31, March 31,
---------------------- ----------------------
2003 2002 2003 2002
---------- --------- -------- -----------
Amortization of goodwill and intangibles $ 19,000 $ 411,000 $ 56,000 $ 1,234,000
Percent of net revenues 0.1 % 3.2 % 0.1 % 3.8 %

We adopted SFAS No. 142, Goodwill and Other Intangible Assets, effective as of July 1, 2002. In accordance with SFAS 142, we ceased amortizing goodwill recorded in past business combinations effective as of July 1, 2002. As a result, there is no charge for goodwill amortization expense contained in our statements of operations for the three and nine months ended March 31, 2003; whereas our statements of operations for the three and nine months ended March 31, 2002 do contain charges for goodwill amortization expense. See Note 4 to the Company’s Condensed Consolidated Financial Statements included earlier in this Report.

Interest Income, Net


Three Months Ended Nine Months Ended
March 31, March 31,
---------------------- ---------------------
2003 2002 2003 2002
---------- --------- --------- ---------
Interest income, net $ 69,000 $ 107,000 $ 248,000 $ 233,000
Percent of net revenues 0.4 % 0.8 % 0.6 % 0.7 %

Interest income, net declined in the three months ended March 31, 2003 as compared to the corresponding period of the prior year because the amount of interest bearing consignment advances that we made during the three months ended March 31, 2002 was higher due to auction timing. Interest income, net increased in the nine months ended March 31, 2003 because interest bearing consignment advances were somewhat higher in that period as compared to the same nine months of fiscal 2002. Our cash balances fluctuate because of the variability in the timing and size of our auctions, and accordingly it is anticipated that interest income will continue to fluctuate on a quarter-to-quarter basis (see “Overview – Factors Affecting Revenues and Margins” above in this Item 2).

Income Tax Benefit


Three Months Ended Nine Months Ended
March 31, March 31,
---------------------- -------------------------
2003 2002 2003 2002
--------- ---------- ---------- ------------
Income Tax Benefit $ (52,000 ) $ (292,000 ) $ (803,000 ) $ (1,370,000 )

The income tax benefit recorded in the nine months ended March 31, 2003 included a net tax benefit of $391,000 for California Enterprise Zone Hiring Tax Credits, in addition to the tax benefit arising from the pre-tax loss incurred in the year-to-date period that was calculated based on our expected federal and state effective income tax rate of 42% for fiscal year 2003. The California Enterprise Zone Hiring Tax Credits resulted from governmental approvals obtained during the quarter ended December 31, 2002 covering eligibility periods from 1999 to 2002.

Cumulative Effect of Change in Accounting Principle

Effective as of the July 1, 2002, which was the beginning of our current fiscal year, we adopted SFAS No. 142. SFAS No. 142 requires us (as well as other companies) to assess goodwill for impairment annually, or more frequently if circumstances indicate potential impairment. SFAS No. 142 requires that a determination be made of the fair value of the recorded goodwill of a company’s assets, in a manner similar to a purchase price allocation in a business combination, and that a goodwill impairment charge be recorded if the carrying amount of the goodwill is found to exceed the fair value of the recorded goodwill on the books of the company. Based on this analysis, we determined that our goodwill, which totaled $14,961,000 as of June 30, 2002, had been impaired by $13,484,000. As a result, in accordance with SFAS No. 142, we reported, as a cumulative effect of a change in accounting principle, a non-cash goodwill impairment charge of $8,973,000, net of taxes of $4,511,000, in the quarter ended September 30, 2002, which is reflected in our statement of operations for the nine months ended March 31, 2003 included in this Report. This charge, which reduced reported earnings for that nine-month period


and stockholders’ equity at March 31, 2003, did not affect our tangible net worth and is not expected to adversely affect our business operations or cash flows. See Note 4 to our Condensed Consolidated Financial Statements included earlier in this Report.


LIQUIDITY AND CAPITAL RESOURCES


At March 31, 2003, we had cash and cash equivalents of $8,853,000 compared to cash and cash equivalents of $4,947,000 at June 30, 2002. We generally experience period-to-period fluctuations in our cash and cash equivalents balances due largely to the variability in the timing and size of our collectibles auctions. We generally pay consignors to our auctions on the 45th day following the close of an auction. However, some of the payments due for those collectibles from the winning bidders are not received until 60 days after an auction is completed. As a result, we experience significant cash outflows within the first 45 days, and cash inflows beginning 60 days, following completion of a large auction until this auction cycle resumes. Depending on the number of auctions held in any fiscal period, the relative size of those auctions in terms of the number and value of the items sold and the timing of each auction, this auction “cycle” can cause significant fluctuations in our cash balances. As a result, we expect that our cash and cash equivalent balances will be subject to continuing period-to-period fluctuations in subsequent reporting periods.

Historically, we have relied on internally generated funds, rather than borrowings, as our primary source of funds to support operations. Our grading and authentication services provide us with a relatively steady source of cash because, in most instances, our customers prepay for services at the time they submit their collectibles for authentication and grading. As discussed above, our auction activities experience significant fluctuations in cash flows depending upon each individual auction cycle and size of the auctions. Until the end of calendar 2002, we had a $1.5 million short-term unsecured credit facility with a commercial bank, which we had used occasionally to fund (i) advances to consignors primarily to our Bowers & Merena coin auctions, and (ii) short-term working capital requirements. Due to the relatively small size of that credit line, which was obtained from a local community bank where our Bowers & Merena division was headquartered, we decided to allow that credit line to expire, rather than seeking its renewal.

We are, however, seeking a new and significantly larger line of credit that would provide us with borrowings to fund advances to obtain larger collectibles consignments to our auctions and to provide advances to coin and other collectibles dealers as a means of generating additional interest income and also providing an incentive for large consignors and collectibles dealers to do business with us. We anticipate that any such advances that we might make generally would be secured by collectibles consigned to our auctions or dealers’ collectibles inventories. There is no assurance that we will be successful in obtaining such a line of credit.

Operating activities provided net cash of $4,133,000 during the nine-month period ended March 31, 2003 as compared to using net cash of $855,000 in the nine-month period ended March 31, 2002. This increase in internally-generated cash flow was due primarily to a lower net loss (before the cumulative effect of accounting change, which was a non-cash charge), and a reduction in inventories.

Net cash used in investing activities was $244,000 for the nine-month period ended March 31, 2003 and consisted of expenditures for fixed assets, primarily software and equipment costs.

Financing activities provided net cash of $17,000 in the nine-month period ended March 31, 2003, consisting of proceeds from sales of our shares under our Employee Stock Purchase Plan and the exercise of employee stock options.

We believe that our existing cash balances and internally generated funds will be sufficient to fund our cash requirements for at least the next twelve months. However, our cash requirements will depend on several factors, including our ability to achieve and maintain operating profitability, the need to increase inventory of collectibles for auction, capital expenditures for our new enterprise software system and various other factors. Depending on our profitability and working capital requirements, we may require additional financing from external sources in the future through equity or debt offerings, which may or may not be available or may be dilutive to our stockholders.


Our ability to obtain financing from external sources will depend upon our operating results, financial condition, future business prospects, our stock price performance and conditions then prevailing in the relevant capital markets.


RECENT ACCOUNTING PRONOUNCEMENTS


SFAS No. 142, which the Company adopted as of July 1, 2002 (the beginning of our current fiscal year), requires, among other things, that companies no longer amortize goodwill, but instead test goodwill for impairment at least annually. In addition, SFAS No. 142 requires that companies identify reporting units for the purposes of assessing potential future impairments of goodwill, reassess the useful lives of other existing recognized intangible assets, and cease amortization of intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life will be tested for impairment at least annually in accordance with the guidance in SFAS No. 142. SFAS No. 142 requires the Company to complete a transitional goodwill impairment test by no later than January 2, 2003. The Company elected to complete its goodwill impairment testing during the first quarter of the current fiscal year and, as described in Note 4 to the Condensed Consolidated Financial Statements included earlier in this Report, has determined that, under the standards called for by SFAS No. 142, its goodwill was impaired, and in accordance with SFAS No. 142, has recorded as a cumulative effect of change in accounting principle a non-cash charge in the amount of $8,973,000, net of taxes of $4,511,000, in the quarter ended September 30, 2002.

In October 2001, the FASB issued SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets. SFAS No. 144 addresses significant issues relating to the implementation of SFAS No. 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of, and develops a single accounting model, based on the framework established by SFAS No. 121, for long-lived assets to be disposed of by sale, whether previously held and used or newly acquired. SFAS No. 144 was adopted by the Company on July 1, 2002. The adoption of SFAS No. 144 did not have a material impact on the Company’s financial position or results of operations.

In June 2002, the FASB issued SFAS No. 146, Accounting for Costs Associated with Exit or Disposal Activities. SFAS No. 146 addresses significant issues regarding the recognition, measurement, and reporting of costs associated with exit and disposal activities, including restructuring activities. SFAS No. 146 also addresses recognition of certain costs related to terminating a contract that is not a capital lease, costs to consolidate facilities or relocate employees, and termination benefits provided to employees that are involuntarily terminated under the terms of a one-time benefit arrangement that is not an ongoing benefit arrangement or an individual deferred-compensation contract. SFAS No. 146 is effective for exit or disposal activities that are initiated after December 31, 2002. In March 2003, the Company decided to relocate the operations of its Bowers & Merena Galleries division to Louisiana following a change in the division’s management. In connection with the relocation, the Company will terminate 11 employees. The charges for these employee terminations are expected to be $49,000, $47,000 of which was expensed during the three-month period ended March 31, 2003. In addition, the Company is expected to incur approximately $120,000 in lease cancellation costs and approximately $60,000 in related moving costs. All activities related to the relocation of the division are expected to be completed by June 2003. The activity and liability balance related to the relocation of the Bowers & Merena Galleries division through March 30, 2003 is as follows:


(in thousands, (in thousands,
except per share data) except per share data)
------------------------- -------------------------
Three Months Ended March Nine Months Ended March
31, 31,
------------------------- -------------------------
2003 2002 2003 2002
------------ --------- ------------ ---------
Liability balance, beginning of period $ — $ — $ — $ —
Charged to expenses 47 — 47 —
----- ------ -- ------ ----- ------ -- ------
Liability balance, end of period $ 47 $ — $ 47 $ —
----- ------ -- ------ ----- ------ -- ------

The amounts charged to expenses are included in selling, general and administrative expenses in the statement of operations for the three and nine-month periods ended March 31, 2003. All costs expected to be incurred in connection with the relocation of the division are related to the Company’s collectibles sales division.


In November 2002, the FASB issued FASB Interpretation (“FIN”) No. 45, Guarantors Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees and Indebtedness of Others, an interpretation of FASB Statements No. 5, 57 and 107, and rescission of FASB Interpretation No. 34, Disclosure of Indirect Guarantees of Indebtedness of Others. FIN 45 elaborates on the its interim and annual financial statement disclosures that are required to be made by companies that have guaranteed third party obligations. It also clarifies that a guarantor is required to recognize, at the inception of a guarantee, a liability for the fair value of the obligation undertaken in issuing a guarantee. The initial recognition and measurement provisions of this interpretation are applicable on a prospective basis to guarantees issued or modified after December 31, 2002; while, the provisions of the disclosure requirements are effective for financial statements of interim or annual periods ending after December 15, 2002. There were no guarantees issued in the three-month period ended March 31, 2003.

From time to time the Company enters into certain types of contracts that contingently require the Company to indemnify parties against third-party claims. These contracts primarily relate to (i) certain asset purchase agreements, under which the company may provide customary indemnification to the seller of the business being acquired; (ii) certain real estate leases, under which the Company may be required to indemnify property owners for environmental or other liabilities and other claims arising from the Company’s use of the applicable premises; and (iii) certain agreements with the Company’s officers, directors and employees, under which the Company may be required to indemnify such persons for liabilities arising out of their employment relationship. The terms of such obligations vary by contract and in most instances a specific or maximum dollar amount is not explicitly stated therein. Historically, the Company has not been obligated to make significant payments for these obligations and no liabilities have been recorded for these indemnities and guarantees in the accompanying balance sheets.

In January 2003, the FASB issued FIN 46, Consolidation of Variable Interest Entities, an interpretation of Accounting Research Bulletin (“ARB”) No. 51. FIN 46 requires that variable interest entities be consolidated by a company if that company is subject to a majority of the risk of loss from the variable interest entity’s activities or is entitled to receive a majority of the entity’s residual returns or both. FIN 46 also requires disclosures about variable interest entities that companies are not required to consolidate but in which a company has a significant variable interest. The consolidation requirements of FIN 46 will apply immediately to variable interest entities created after January 31, 2003. The consolidation requirements will apply to entities established prior to January 31, 2003 in the first year or interim period beginning after June 15, 2003. The disclosure requirements apply in all financial statements issued after January 31, 2003. We believe that the adoption of this interpretation will not have an impact on our results of operations or financial position. At March 31, 2003, the Company did not have any interests in variable interest entities.


ADDITIONAL FACTORS THAT MAY AFFECT FUTURE OPERATING RESULTS


There are a number of risks and uncertainties that could affect our future operating results and financial condition. Those risks and uncertainties include those discussed in the Section of this Quarterly Report entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the factors described under the caption “Factors That Could Affect Our Future Performance” contained in “Item 1 – DESCRIPTION OF BUSINESS,” of our Annual Report on Form 10-K for the fiscal year ended June 30, 2002 filed with the Securities and Exchange Commission, to which reference is hereby made for additional information regarding these risks, uncertainties and other factors. In particular, the factors described in our Annual Report that could adversely affect our future financial performance include: the risk that the popularity of collectibles will decline or that general economic conditions will deteriorate, either of which can result in reductions in purchases of collectibles and in grading submissions by collectors and dealers; changes in the popularity of certain collectibles could cause revenues to fluctuate; frequency and fluctuations in the size of auctions, which are largely a function of our ability to obtain consignments of collectibles from dealers and collectors, also could cause our revenues to fluctuate; competition for limited supplies of high-end collectibles for auctions among collectibles companies which could have the effect of reducing profit margins; the dependence of our operations on certain key executives and collectibles experts, the loss of the services of any of which could adversely affect our ability to obtain consignments for our auctions or grading submissions and, therefore, could harm our operating results; a lack of adequate investment returns on new business opportunities; the possibility of having to write down the carrying value of owned collectibles inventories because of market value fluctuations or an inability to sell collectibles in a timely manner, increased competition from other


collectibles auction and grading companies; the risk that we will incur unanticipated liabilities under our authentication and grading warranties; and government regulation that could cause operating costs to increase.

_________________________
---- Matthew T. Natale Alexandria, Virginia Completed 1977 Topps Baseball SGC Graded Set, Average Grade 92.89

Top
#124746 - 05/21/03 08:46 AM Re: CU Financials Paint Shaky PSA Picture [Re: vayank]
srs1a
Old, dense-headed hammers are cool. Best nail pounders.


Registered: 08/15/02
Posts: 987
Loc: NY

Offline
A comment before I answer your questions Yank.

I don't believe that these sort of posts do much of anything positive -- the focus on this board should be SGC not PSA.

(1 and 2) Unclear -- both CCG and CU are focused on authentification, grading, etc in several markets. CU looks at coins, stamps, cards and autographs; CCG at coins, comics and cards.

Would CU be stronger financially without PSA? Unclear to me -- this would most likely impact their autograph business as well as their auction business. In short, I would bet that PSA generates substantial "drag along" revenue and profit to CU in addition to the actual card grading revenue and profit. So, this is a big picture question and needs to be viewed as such.

Are we sure that the situation at CCG is any different? No, as a privately held company we have no vision into their finances. My guess would be that the situation is similar -- net profit for slabbing a card probably lags behind that of a coin or comic (only guessing, though). However, this does not say that it is not an important part of their business.

While CU's gross margin dropped to 33% for the past three months, they are still profitable and 33% isn't exactly a bad number especially given the current economic situation.

(3) Probably not much. SGC needs to keep doing what they are doing. There are a good number of people using multiple grading services these days and it is hard to argue with solid service and consistent/accurate grading. I believe that SGC is bursting at the seams these days (judging from turn-around times), so they are probably not in the position to absorb a whole lot more business in the short term.



I love these new graemlins!



Top
#124747 - 05/29/03 05:11 AM Re: CU Financials Paint Shaky PSA Picture [Re: srs1a]
vayank
The Amazing Card-Man


Registered: 04/13/02
Posts: 948
Loc: Alexandria, Va

Offline
Scott,

I appreciate your comment. That's why I pushed up the why I picked SGC thread at the same time. However, periodic discussions of PSA financial status et al are entirely appropriate for ANY message board dedicated to graded cards. But that's just IMHO.

In any case, you bring up a good point, noting PSA financial contributions may be its' effect on other CU interests. When you think of it, it may be that PSA could not survive as a standalone and is being carried by CU's other ventures. I had always thought the opposite, that PSA would be better off alone. Instead of the PSA brand carrying CU, CU is carrying the PSA brand. Hmmmm.

Now this brings me back to one of the fundamental problems with PSA/CU. They buy and sell their own graded cards through their in house auction function. And it would be ironic indeed that PSA's main function was to, both directly and indirectly, create, provide and generate revenue for their high end auction house. Makes business sense, but it is a tacit recognition that PSA has become a better brand than grading outfit, viable only through maintaining a conflict of interest -- much like BGS is viable because of their ability assign and often simply create prices/values out of thin air exclusively to promote their brand and undermine others.

There is very little the average collector can do about PSA's and BGS conflicts of interests, and there is no industry watch dog to police these corporate predilictions.

But every once in a while it is necessary to say what's what, throw the skunk on the table and bear witness to the truth. And what better place than the SGC message board?
_________________________
---- Matthew T. Natale Alexandria, Virginia Completed 1977 Topps Baseball SGC Graded Set, Average Grade 92.89

Top
#124748 - 08/07/03 04:49 AM Re: CU Financials Paint Shaky PSA Picture [Re: vayank]
vayank
The Amazing Card-Man


Registered: 04/13/02
Posts: 948
Loc: Alexandria, Va

Offline
Those financials should be out again. Should be very interesting. In particular, discussion of a 1/2 point system, the re-implementation of a membership requirement, and a new holder all came out after the end of the fiscal year, I believe (or the most recent quarter). It would seem that these items were a reaction to these impending financials.
_________________________
---- Matthew T. Natale Alexandria, Virginia Completed 1977 Topps Baseball SGC Graded Set, Average Grade 92.89

Top
Page 1 of 1 1


Moderator:  EARLSWORLD 
Hop to:
Who's Online
0 registered and 6 anonymous users online.
Newest Members
klmnop450123, abcdef863349, vwxyz{570399, nopqrs004715, tjf092071
1963 Registered Users

Generated in 0.016 seconds in which 0.001 seconds were spent on a total of 14 queries. Zlib compression disabled.