Stanley Gibbons Share Discussion Threads

[hywel] 12/10/2007 12:13

Thank you Questor.

[polzeath] 12/10/2007 11:38

Agreed in month 10/12 only worth looking at fwd P/E, 12.6x doesn't look particularly rich.

[comane] 12/10/2007 11:37

why all the selling today?

[liarspoker] 12/10/2007 11:26

It's way too small for them irenekent. Anyhow the regulations and procedures of buying more then 3% of a UK company is too much for Buffett/Munger that is why they hold just under 3% of TSCO.

[irenekent] 12/10/2007 11:22

If this is a classic Buffett/Munger share I wonder-When are they going to buy the business? I note that Richard Ratner of Seymour Pearce is listed as analyst for SGI. I wonder who is replacing him as he has sadly just died.

[jtcod] 12/10/2007 10:03

I'd also point out that the guy from the Telegraph allowed zero for cash in his PE ratio's or that stock is almost as good as cash for this business.

BTW in charting terms, the price also looks to be not far off the 'bottom' of the rising channel. Maybe a proper chartist could comment on that.

[jtcod] 12/10/2007 09:55

The Telegraph writer's conclusion is puzzling to me because it appears to make a recommendation based upon 'pure stamp investment' rather than 'investment in the company itself'. He has completely missed the uniqueness of market position and long term potential of this investment imo. He also seems unaware that over the last 50yrs, the SG30 has beaten gold and most other investment classes hands down, (even through bad times. Not having had one down year.)

SGI imo is the epitome of a simple investment observation of Charlie Munger's.

His observation was that if you find a market leading brand with a sound ring-fence to the business and a small slice of a very large splintered market, you have an investment that is unassailable in the long term regardless of any short term market gyrations. That simple idea swayed Warren Buffett's whole investment strategy from the time he bought See's Candy.

Charlie Munger described it as "finding the biggest hill to roll your snowball down."

Obviously it would be nice to get it cheaper but that's the point really. Such stocks rarely disappoint and so entry normally has to be at what Buffett terms a "fair price for a good business". Without that acceptance of fair price, Buffett wouldn't be anywhere near as wealthy as he is today.

SGI is 'the' world brand in its sector. A sector that relies totally on trust for authenticity. Yet it still has a 99% target market to shoot at and what is further unique about SGI is that it is more scalable in economic terms than even See's Candy could hope to be.

This is the type of stock Buffett would call a lifetime investment imo. They are as rare as Rocking Horse Sh...............;-)

[cambium] 12/10/2007 08:46

cheers Liars, good case

[wjccghcc] 12/10/2007 08:21

Yup, the 17x earnings is this year (ending Dec).

[liarspoker] 12/10/2007 08:16

Typical journalistic BS I reckon polzeath - first of all the non-stamp divisions are going from strength to strength. In regards to stamps there's no mention of brand name which in SGI's case is a vital component. The reference numbers that collectors use are SGI's reference numbers - that's a major plus imo.

Also I've been looking like mad to find a better company on the same or better fundementals as SGI. I can't find anything that comes close. Sure I can find companies with better ROE or ROA or a larger market cap increase per Pound of profits retained but there is nothing that comes close to SGI in terms of growth and price imo ( PEG ).

SGI will grow by around 20%+ over the next few years. In fact growth next year is forecast at 37% and Seymour Pierce hint that it could be beaten ( but lets see the T/S first ). That puts SGI on a forward multiple of around 12.5 - 12.7 opposed to the other companies with the same fundies which are valued at 17 X forward earnings. We'd get a price of over 300p if we were trading on such a multiple.

A poorly researched article imo.

[orange1] 12/10/2007 08:14

Was it the one walking its dog?

[cambium] 12/10/2007 07:56

There was a broker out yesterday anyone see it?

[polzeath] 12/10/2007 07:54

Questor's got an avoid (on valuation)

[jtcod] 11/10/2007 08:36

This is no less than a milestone for world stamp investment imo.

[liarspoker] 11/10/2007 07:59

Beat me to it mr.oz - should attract a few more wealthy clients and also shows that SG is becoming a standard. :O)

[mr.oz] 11/10/2007 07:27

THE STANLEY GIBBONS GROUP LIMITED
('STANLEY GIBBONS' or 'THE COMPANY')

(AIM: SGI.L)

STANLEY GIBBONS INDICES BECOME INSTITUTIONAL STANDARD

The Board of Stanley Gibbons, the AIM quoted leading name in rare stamps and
collectibles, is delighted to announce that its price indices are now available
on the BLOOMBERG PROFESSIONAL(R) service.
HIGHLIGHTS

•Indices available to all Bloomberg users;
•Rare stamps and autographs now recognised as alternative investment asset
classes;
•Increases access to reliable online price information on these assets;
•Move opens up Stanley Gibbons and its products to a wider investment
audience.

Stanley Gibbons markets a range of rare stamp and autograph investment products
and today's announcement follows increasing demand from institutional investors
and private clients for more accessible data and pricing on 'alternative'
assets. Stanley Gibbons has published stamp price guides since 1865 and has a
pricing database on every stamp issued worldwide. These are the first stamp and
autograph indices available on Bloomberg.

Commenting on the news, Stanley Gibbons Chief Executive, Michael Hall said:

'We chose to distribute our price indices via the BLOOMBERG PROFESSIONAL
service, because of its position as a market leader in the provision of
financial information.

'Stanley Gibbons has built up a successful business in the sale of stamp and
autograph investment products to private investors. As the importance of
diversification in the current economic climate becomes obvious, we believe that
the institutional investor market will increasingly turn to alternative
investments.'

[bigbigdave] 25/9/2007 19:29

Collectors do it for love, perhaps money

[diogenesj] 24/9/2007 22:30

Illiterate post, though, Liars. All of the buyers could not have been from all four corners of the earth. I suppose any four could have been, not individually but between them.

[abergele] 24/9/2007 17:26

Liarspoker,
I agree, solid old company, probably the only one thats shown positive returns for years...as a stamp collector who never sells only buys, I have seen the buying costs increase constantly ,especially ebay boosting buying opportunities globally....so interest ,as that article says is expanding into the younger generation...and us baby boomers and ol timers have the cash to use the Gibbons stamp investment FUND ,this props up stamp prices yet again, and returning income to the balance sheets of SGI...imho

[liarspoker] 24/9/2007 14:47

Sjuggerud should target large gatherings like these imo:

[liarspoker] 24/9/2007 14:28

Sticky subject if you ask me - stamps...........

[tom.muir] 24/9/2007 14:27

Since it became stamp - shaped Orange :-)

[orange1] 24/9/2007 13:38

Well if you're going to be pedantic Tom: since when has the earth had four corners????

[tom.muir] 24/9/2007 11:33

Thanks for posting that find Liars. I have to say I am a bit disappointed. I had hoped that SGI would team up with Shreves. These are the people that conducted the on-line auction a couple of months back which I listened to live and was very impressed. When sgi said they were looking to expand into USA it looked a good match and I have been hoping for some good news in that direction.

Anyway it will all help to raise the profile of rare stamps as an investment and that must be good for us.

I think their claims are a bit OTT - SGI are the ONLY Rrecognised brand!

Just being pedantic - "with virtually all buyers being from all four corners of the earth." If only 'virtually' were a few from outer space????

[liarspoker] 24/9/2007 11:01

I'm looking forward to sub 225p abergele.

I don't care how the 'money people' view the markets.

Bottomline is SGI is a great company with a great brand name etc look at the ROE & ROA etc. If there was one company that I could buy outright then I'm fairly sure that this would be it. Net margin of over 16%.

Collectors being collectors will buy whatever the economic conditions are.

Buy the dips and hold for the long term imo.