Collector's Universe

12/10/2015 7:00 am EST


Jimmy Mengel

Editor, Outsider Club

One of my favorite stocks is a company that is a leading provider of value-added services to the high-value collectibles markets, explains Jimmy Mengel, editor of The Crow’s Nest.

Collector’s Universe (CLCT) authenticates and grades collectible coins, trading cards, event tickets, autographs, and memorabilia.

It also compiles and publishes authoritative information about world coins, collectible trading cards, and sports memorabilia and operates its dealer-to-dealer bid-ask market for certified coins.

The company recently launched a new Web site providing information on the availability of more than nine million collectibles currently offered for sale by 53,268 sellers from listings on 542 different Web sites, with an aggregate value of $1 billion.

The new Web site will enable users to access millions of listings, giving them a huge market for finding new collectibles.

Income from continuing operations in this year’s first quarter increased to $1.9 million or $0.23 per diluted share from $1.8 million or $0.21 per diluted share in last year’s first quarter.

Services revenues in the first quarter declined by $1.6 million or 10% to $14.6 million from $16.2 million in last year’s first quarter.

That decline was driven by a $1.8 million or 16% reduction in coin services revenues, resulting from lower revenue earned from the US Mint’s very popular Baseball Hall of Fame and 50th Anniversary Kennedy modern coin programs that favorably impacted last year’s first quarter.

There really haven’t been any serious releases from the Mint this year.  More encouraging was the international growth of 6% of total service revenue, which shows that it is slowly expanding into new markets in China, which should be key to long-term growth.

The submissions from its shows doubled for grading revenues, especially in China. Shanghai is off to the fastest start, which is good news since it’s the biggest market force internationally.

We’re banking on that trend to continue. The juicy 9% dividend alone is worth parking some money in this stock.

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