Stanley Gibbons Share Discussion Threads

[siskinbird] 12/4/2006 11:43

Great AGM statement, and the market certainly seems to like it!

[paulypilot] 12/4/2006 11:41

Hi,

Terrific AGM update, looks like an excellent growth stock, at a reasonable price. I've bought another 30k today, doubling my stake.

Had initially targeted 150p/share, but after today's statement, 200p+ is looking perfectly achievable. I'm basing that opinion on brokers forecast EPS of 10.9p for 2006 and 14.6p for 2007.
The very positive AGM statement today means they should comfortably exceed those forecasts. So with strong earnings growth, a unique brand name, and excitement/growth from website/export sales, this could well command a toppy PE of say 20+ in the not-too-distant future, so perhaps 200-300p/share target is not unreasonable with a say 6-month view ?

Just my opinion, pls DYOR as usual.

Regards, Paul.

[daza70] 12/4/2006 11:40

WOW SHOULD MOVE IT 25%

[orange1] 12/4/2006 11:25

AGM TRADING STATEMENT


All the resolutions proposed at the Annual General Meeting of the Company held
in Jersey this morning were duly passed, including the Special Resolution
authorising the Company to purchase up to 15% of its issued share capital in the
market for cancellation.

Commenting on current trading, the Chairman issued the following statement:

"We have had an excellent start to the year, with our best ever first quarter
result. Turnover (unaudited) for the first three months of 2006 was 48% higher
than for the same period last year, with a corresponding increase in profits.

We have continued to recruit new clients, coupled with strong demand for our
full range of products. The SG100 Stamp Price Index has increased by 4.1% in the
first quarter of the year demonstrating that the re-rating of rare stamps in the
overall collectibles market has increased the natural pressures on supply and
demand. Momentum is still building in rare stamps as an alternative asset class
and we are at the forefront of the market with the most recognisable brand name
and largest stockholding of stamps in the world.

Our Internet site had over 2 million unique visitors in the last year, out of an
estimated total 30 million stamp collectors worldwide. Both sales and
recruitment are improving and 'stickiness' (time spent on site by visitors) is
also increasing. From being predominantly UK focused, the Internet has been a
prime mover in changing our sales base - over 40% of total sales are now made
overseas.

Cash generation remains strong, with profits flowing through to cash providing
us with the necessary working capital to re-invest in our future profit growth.

Our shareholder register has become even more biased towards institutional
holders, who are supportive of our strategy and looking to be long-term holders
of our shares.

We are confident, after our first quarter, that we will continue to achieve
sustainable growth in turnover and profitability during 2006."

The Company's final dividend will be paid to shareholders on 18 April 2006 and
its interim results announced on Friday, 28 July 2006.

[gregory0106] 12/4/2006 11:12

If my diary note is correct I think the AGM is today. If so should have some news later on regarding the stamp funds.

[mryesyes] 10/4/2006 21:38

bought in at 15p as communitie.com who would have believed a 10 BAGGER but i think it can be a 10 bagger from here

[ygor705] 10/4/2006 15:01

Nice one Orange1 !

[orange1] 10/4/2006 11:21

Chart showing the classic "man with one ball" formation.

[davidosh] 10/4/2006 11:13

Here is a link to a pre Christmas thread with update today on the Motley Fool

[tole] 10/4/2006 10:44

Yep ;)

The Times April 08, 2006

Share of the month


Stamps set to lick inflation


COLLECTING is a compulsive activity that is also self-feeding. Witness my prolific portfolio of shares in rare businesses. My passion for shares has precluded me from collecting other asset classes such as art, fine jewellery and wine.
But with shares in Stanley Gibbons, the philately company, I can both capitalise on increased investor appetite for alternative investments, such as rare stamps, and indulge my obsession with buying and holding shares or funds in great businesses.



Stanley Gibbons is quoted on the Alternative Investment Market and capitalised at just £34 million. But this is a small company with a big asset: its brand is imbued with an unblemished reputation for expertise and honest dealing. That is quite a commercial advantage in an unregulated, fragmented trade in which malpractice is not unknown.

The company trades in less than 1 per cent of the global market in rare stamps, so its potential for growth is substantial. Currently it buys and sells only rare stamps from Britain and the Commonwealth. But it is poised to capitalise on the new wealth in Russia and China by extending its range to rare stamps from those nations, as well as increasing its focus on stamps from India, in which it already has 150 years of expertise.

This is no fusty firm, but an aggressive enterprise that three years ago launched what it calls "financial-based investment products" on the back of proprietary research that backdated by 50 years rare stamps with a retail value of more than £1,000 each. The data showed that the value of those stamps grew by an average of 10 per cent a year.

The initiative was launched when interest rates were low and the stock market was in the doldrums. So Stanley Gibbons gained new, financially motivated collectors.

Its investors invariably store and insure their stamps with the firm, at no extra cost, and eventually sell their collections either directly back to it for cash or at one of its auctions. In the case of the latter, commission is between 10 per cent and 20 per cent.

Its research was based not only on its speciality of rare British and Commonwealth stamps but also on a "shopping basket" of 100 commonly traded stamps in those two categories. It then established three indices based on each component in its research. It publishes a monthly valuation of the commonly traded index on its website and in its magazine, while the indices for rare stamps are updated annually. The Great Britain rarities stamp price index rose 20 per cent last year.

It buys 40 per cent of its stock (valued at £4 million) at independent auctions, 30 per cent from collectors and customers and the rest from members of the trade. It also sells autographs and stamp- collecting accessories and holds £1 million of stock in each of those two product categories. It had £2,585,000 in cash at December 31.

The company's internet sites have increased its visibility in overseas markets, attracting new investors who invariably research prospects online but buy stamps offline.

The explosion of overseas interest last year resulted in a 65.4 per cent rise in pre-tax profits to £2.8 million excluding exceptionals. Sales soared 36.1 per cent to £13.6 million. Total dividend payout was

50 per cent higher at 3p, giving a yield of more than 2 per cent. Its value has risen more than eight times from £4 million when it was demerged from Flying Flowers in 2000.

While I would be nervous of holding perishable little pieces of paper in the form of rare stamps, I believe that the adequately liquid shares in Stanley Gibbons will lick future inflation and produce superior total returns. I am buying at 136p.

For more investment articles visit www.timesonline

[bletherer] 10/4/2006 10:18

Buy recommendation in the Times at the weekend may have helped.

[gregory0106] 10/4/2006 10:16

Moving up well again today - there must be some stake building going on. Perhaps a bid on the way with the easter bunny!!

[chester] 10/4/2006 09:15

Looking nice now....

[scumdog] 07/4/2006 15:20

Could turn into a "Batman"!

[ygor705] 06/4/2006 17:37

Who do you know with a head and neck that long Scumdog?

[scumdog] 06/4/2006 11:50

But will we see a "double top"?

[gregory0106] 06/4/2006 08:19

Opening up again today - looking good.

[ygor705] 05/4/2006 20:43

Good volume today and a pick up in the share price late on in the peace. Looks encouraging.

[gregory0106] 04/4/2006 15:43

I am sure there must be something going on. Squaregain will only sell a max of 2000 shares on line at 135 but will allow me to sell 25,000 at 134, so they must be low on stock and looking to add. I feel this backs up comments elsewhere that someone is soaking up the available stock. Either they are very bullish about the future or are looking at a bid, either way I am loading up some more.

[gregory0106] 04/4/2006 12:49

Thanks Gengulphus, I had not considerd that,I'll give them a call.

[gengulphus] 04/4/2006 09:55

If the accounts are with the same broker, have you checked whether the broker will do a combined "sell from your account, transfer the money, buy into your wife's account" deal. I believe quite a few will if asked - worth asking in any case.

Gengulphus

[gregory0106] 04/4/2006 08:39

Up again this morning - this is making it very hard to risk being out of the action, even for a few days.

Does anyone know the date the next update is due - I believe its going to be about the Stamp Fund?

[gregory0106] 04/4/2006 07:59

Chester - I am not looking to drop my holding, just take a tax gain in this year and then get back on board - worry is that it may go up well in the days it takes to switch funds accross accounts so I can re-buy. I am very sure it is going up soon

[chester] 03/4/2006 14:02

Greg - Funny, your thinking of selling and I'm looking to buy more.....

[gregory0106] 03/4/2006 13:01

I was looking at taking my profits before end of tax year to make most of CGT limit and then buying back in under my wife's account at start of new tax year, but today's rise has made me worry that it may take off while I an moving the funds around. So much to think about!!!