Stanley Gibbons Share Discussion Threads

[mo123] 02/2/2004 13:13

clocktower holding mine medium term.

Look at it this way, it's on a historic P/E of 17 (56/3.3).

Next year at this time if its on the same P/E with an EPS of 5.7. It equates to a share price of 97p.

If it makes only 8p of earnings in 2005, then it could hit 120p as growth would have slowed slightly, so allow a P/E of 15. If the SGI forecast from share price is 9p or higher then 140p is possible.

Admittedly 2 years seems a long time to wait and there will be plenty of up and down days in between but the rewards should be worth it.

[jwe] 02/2/2004 13:11

Nice to see today`s rise(perversely i was rather hoping it would fall!).Anybody interested in value shares may wish to look at BRE-look at RNS over the last say 9 months noting director buying including one purchase of nearly £3 million at 80p- current price 82p,the reinstatement of the dividend planned for next year which will make this a high yeilding stock and the record profits being produced.Results due 2.3.04.Little downside maybe 30% on the up.Please DYOR and good luck-this is not a ramp as any purchases from small private investors will have no effect on the share price.

[clocktower] 02/2/2004 11:45

dwnash...Could be but beware.until news, as 60p could be selling point before bigger retrace..On the other hand it could just rocket past that.Long term it has a lot higher to go imo.

[dwnash] 02/2/2004 11:35

Are the m/m's short of stock on this ,as small buys are making big movements upwards?

[clocktower] 02/2/2004 10:59

See your buzzing again on this one....just a question of sitting and waiting for those results..Then how high will it fly before our fingers hit those sell buttons?

[cockneyrebel] 02/2/2004 10:53

Grabbed another 5K at 53p first thing this am - couldn't get anymore than that within spread - nice to be in profit so swiftly - much more to come tho imo.

CR

[kael] 02/2/2004 10:34

tell you what though...they could do with reducing that spread a bit.

[kael] 02/2/2004 10:34

lalala good luck all

[nurdin] 02/2/2004 09:55

Looks like people are waking upto this.Buyers coming in in drips..watch what happens when they announce results in a months time!

[moneybags] 02/2/2004 09:38

It's bubbling under today all right.

Could take off again like a couple of weeks ago.

[cottoner] 02/2/2004 09:36

Few more buys just in.

[mo123] 02/2/2004 09:23

Gateside. My opinion differs from yours only in relation to time. At the moment I would rather SGI remained in the stamp market sector as that is where its expertise is. This market approximates to an annual turnover of 10B worldwide so there is still a lot to go for.
I can see at least another 5 years of solid growth in this sector and would like to see SGI become THE market leader.

Medium term, SGI will have to diversify and hopefully, it will make some EPS enhancing takeovers. Problem is it may not get the opportunity. I can see other auction houses such as ebay watching this successful company and swooping in with a bid. It is after all still on a forward PE of less than 10 to Dec 04.

Either way we should all end up winners.

[nurdin] 02/2/2004 08:31

Well done Gateside..dont think you will be disappointed.Results not far off

[gateside] 02/2/2004 08:28

good morning nurdin...

Finally bought some SGI first thing this morning, very nice to see the price tick up straight away :-)

[nurdin] 02/2/2004 08:25

Got a feeling we going to see a good move today..

[cambium] 01/2/2004 22:31

I think SGI biggest competitor is Spink who have just moved from there office near the Mall to rather nice offices in Bloomsbury (the old post office).

I don't know who the status of the company. Could Sgi and Spink get together or should sgi go it alone - web sites etc. Cracking brand name Stanley Gibbons, but will it translate to coins?

Do the funky thing!

[gateside] 01/2/2004 20:35

cambium... have been looking at their website, and can see no mention of coins, if I'm correct, then that avenue of expansion is still up for grabs.

[cambium] 01/2/2004 20:15

I think they are involved in coins.

[cockneyrebel] 01/2/2004 11:37

The internet widens the market and the demand imo.

I think many would like to be stamp collectors but you have to go out, buy books, study what you want to buy, find a reliable stamp dealer etc. The internet makes it near to home imo and with Stanley Gibbon having such a long established name and reputation no competitor can just start up and match that in any way. That's a bit of a barrier to entry for competitors imo - if you are buying expensive stamps and they are labeled as 'mint condition' you want the peace of mind of knowing that this is what you'll get. An established reputation doesn't develop overnight.

I'd have thought the opportunity to expand into coins was also a possibility.

Learened a lot over the last month looking at and holding SGI.


CR

[nurdin] 31/1/2004 23:02

Some good points there dwnash.. and thank you for giving us a collectors view point!

[dwnash] 31/1/2004 21:55

As an avid stamp collector for over 10 years , the price of stamps has risen, as has the enthusism of the older retiring person for finding an interest to while away the hours of this new found leasure (pastime).

Stanley Gibbons have always been the Bible for the collector. The sales in catalogues has increased, and so has the costs of them, and the current values of stamps which they (SGI) hold will also reflect as their assets, year ending, therefore making a greater NAV, as of last years prices.

The advantage of this renewed interest by the older (middle age )fratternity will also rub off on their offspring,or grandchildren as an interest and as a form of longer term investment,as during the period of the 80's , there seemed to be a lull in collecting stamps, but now this has reversed.

I have bought from Gibbons over the phone, and quality and sevice was spot on. I also buy from various dealers at auction, and the Ebay, stamp sales are pushing prices to higher limits all the time, this surely must have possiblities for Gibbons via the web auctions,down load,or view online sales, as expensive sales catalogues will become a thing of the past,so that alone would wipe out wastages, and increase turnover.

Speaking for myself the stamps I purchased 10 years ago have more than doubled to buy, so to sell would also look after my proffits, If I was to do so.

I missed the boat for an early entry @ 25p, but have bought in a little higher and am now in proffits. As others have posted before, there has to be big potential for the next year or so at least. IMHO.

[cockneyrebel] 31/1/2004 11:59

I think internet retailers are coming well back into favour but I'm not sure you're average investor has realised that SGI is so internet based (I didn't before a month or so ago).

I've been waiting to find the companies that really made a space for themselves on the internet and started to produce real returns. I think after the final results meet expectations as they say they will, then investors will pick up on the growth available here, yet on a very low PE.

Throw in the cash generation and undervaluation of the balance sheet plus the very horny rise of PRVD and these look way undervalued imo.

Just wait for investors to realise what this stock is really about and come into fashion - I think nurdin's estimates could easily be met or beaten.

CR

CR

[nurdin] 31/1/2004 07:33

Thanks very much Peter! Except that PRVD are more than a flower retailer!

IC summarises the situation well.'Further to run' to me seems like an understatement though.Once 03 results are out of the way,brokers are looking at further 70% eps growth this year.I think this could prove conservative as their websites revenues gather momentum.6.6p eps this year seems more realistic but I am a born optimist!
So we have a company growing eps at over 70% year on year,forward pe of less than 10,in a prime position to address a huge and a growing market,highly cash generative,about to start paying dividends etc.More like the market will rate them (or should do) at 20x this years earning...sets the target price at 132p on my earnings estimates..Even at modest 16x SGI have a scope for doubling from here...

[barnetpeter] 30/1/2004 22:02

FROM IC today (just for nurdin)

Stanley Gibbons (SGI: 53.75p)

With stockmarkets remaining volatile last year, investors turned their attention to alternative investments such as stamp collecting. So Stanley Gibbons, trading from its flag-ship store on the Strand in London, has enjoyed strong trading conditions. Profits for the first half of 2003 rose 60 per cent and brokers Seymour Pierce believe the company will double full-year pre-tax profits to £1m. The balance sheet remains cash-rich - net funds stood at just over £1m at the end of June - and shareholders can expect surplus cash to be making its way to them sometime this year.

If this is not good enough, the flotation of online flower retailer Provide Commerce on Nasdaq has provided the icing on the cake. Stanley Gibbons' stake in Provide Commerce, which is in the company's accounts at £223,000, is now worth £2.3m, or almost 10p a share. The net result is that shares in Stanley Gibbons have trebled since we tipped them. And given the cash and asset-backing, the expected return of capital back to shareholders, and clear potential to lift profits even further, the share price should have further to run in 2004.

[daza65] 30/1/2004 13:50

CHANGE ON L2 TODAY FROM 3 V 1 TO 2 V 2.