Stanley Gibbons Share Discussion Threads

[graham1ty] 30/6/2014 09:50

Interesting exercise. I had said above that it is five years since SGI said it was going to launch a global online trading platform. Below a very quick look back over statements/accounts. It was first mentioned specifically five years ago in 2010. They sacked the IT team later in 2010. In 2012 they bought bidstart, which proved not good enough to use straight away. Over the last five years, they have put £4.5m of IT spend ( inc the bidstart cost) through the P&L. I am not able to split out how much they have capitalised. Bottom line this is a £5m +++ project, still not launched five years after first mentioned...........

2004 "Internet sales reached a new milestone with over 20 million hits". "The redesign and integration of our websites went live in September " "we upload our full stock range" Capital spending of £138,000 mainly on IT infrastructure
2005 "The internet has increased our brand exposure worldwide". Capex £97,000 "mainly to the continued investment required to support IT systems"
2006 £145,000 on IT
2007 "The website remains a core part of our strategy in achieving global recognition....we have increased our investment on IT and web development staff in order to accelerate some of the planned changes to our websites and IT systems" £95,000
2008/09 do not have report
2010 IT spend £301,000. " Whilst we do not want to become a trader of low value stamps......we believe that by providing an online trading platform......SGI will progressively become the focal point for stamp trading online". The first mention, five years ago, of SGI becoming an online business trading platform. Reorganised web development team. Cost £23000
2011 "reviewing strategic options before progressing to the next stage.......the internet progressively becoming our primary sales channel. Spend £256,000
2012. Purchase of bidstart ( £636,000). Talk of "global online collectibles platform". Investment of £1m in digital versions of catalogues. £400,000 IT spend through the P&L.
To Dec 2013. IT costs taken through the P&L of £1.3m. "The work to create an online global trading platform is progressing well".
Three months to March 2014. Another £500,000 of IT expensed. "The beta version of the branded online marketplace is currently undergoing rigorous testing"

[qs9] 29/6/2014 14:06

great thanks

[qs9] 28/6/2014 12:51

Great thanks robinnicolson really useful to see and provides nearly 30% upside potential from here to get near their TP...

[mach100] 28/6/2014 12:06

Not overwhelmed by the results but think 280pish was around the bottom. Doubt we will see much under that unless there is blood on the wider market floor. Divi should be pretty safe and it low interest rates persist, these type of shares will be collectables for those looking for yield.

[robinnicolson] 28/6/2014 12:02

Peel Hunt have a buy note with a 400p PT

"The company is well resourced which provides the funds to invest in the online operations, acquire attractive material and attract high profile auctions. The rating looks very reasonable for a business with significant growth potential and substantial asset backing (particularly as the internet investment is currently depressing profits by c15%)."

Simon Thompson of IC is a SGI fan, so maybe he will post an update next week. His online updates are usually posted around 11.00 am, so if we see a spike in the share price, we know why ;-)

[qs99] 28/6/2014 11:27

Not seen any press on results, anyone else? May get a write up in shares mag or IC.....

[qs9] 27/6/2014 16:21

Love it when a plan comes together...

[qs9] 27/6/2014 14:46

bit of press and further IR city rounds with team next week and hopefully we can start making up lost ground into £3.20 and above...

[superiorshares] 27/6/2014 13:42

graham 1ty. I understood stanley was wanting a global platform for high end collectables ? using their expertise to guarantee authenticity . your last line-" your not going to do £1m sales online are you ? if you are talking about single £1 mill items ? why not . Bidstart I assumed they bought for the young governers skill ? for me the problem with stanley is, will new investors be driven at the minute to alternatives ? at the moment i think not. The western governments have sorted everything out , life is sweet again. the whole booming economy cackle is reliant on continual borrowing ! As I say in due course stanley and chums will be deal of the decade ! regards.

[qs9] 27/6/2014 11:34

well personally I think + 8 is a reasonable thumbs up from the city, let's see where it heads next week....

[qs9] 27/6/2014 09:14

well market seems to like them somewhat, not racing away but up 5 is a decent start...IMO!

[eggbaconandbubble] 27/6/2014 08:52

Thanks for that! I just don't feel any compulsion to rush out and buy (shares) just yet.

[graham1ty] 27/6/2014 08:38

Yes, missed rise, and fall, but certainly cannot claim to have foreseen anything. I had a meeting with Mike Hall about 18 months ago and quizzed him very hard on the online strategy. I am not sure whether they want to be an EBay ( as purchase of bidstart would indicate), an online catalogue so they can handle millions of low value transactions, or a swap shop where collectors can advertise. All of these could have been done years ago. Until they launch, we just do not know what it will look like. Low value items are 100% gross margin ( as they are actually valueless) but horrible handling costs ( how much can u charge handling for a £5 stamp without it costing the punter £25 suddenly). Really top end items are much lower margin ( top end collectors much more discerning, and often know what SG paid).... But you not going to do £1m sales online are you ?

[eggbaconandbubble] 27/6/2014 08:09

Graham, you say that you have not held SGI for two years which must have been gutting to watch them going up and up. Do I take it that you foresaw the problems and the market didn't, but has done so recently hence the fall in sp?
If so, then my hunch is that the Noble takeover was convenient in helping to cloud the issue.

[graham1ty] 27/6/2014 08:01

As there have been development costs every year for five years, I am not sure how they can call them exceptional. So actual, reported eps are 6.3p.....not the 13p they claim. Operating profit was just £2.3m....

[eggbaconandbubble] 27/6/2014 07:55

With the 15 month / 12 month comparison to make plus the part contribution from Noble, the figs. are going to take some picking through.
Good post Graham but I do agree with QS9 re ebay.
Q. Did Noble sort out the situation re the Qatari who didn't cough up after bidding for a load of coins?

[graham1ty] 27/6/2014 07:53

QS9 I am reading the results Now. I have always been keen on SGI but with caveats and I have not been a holder for two years thinking it had run far too far ahead. I am still not convinced that the move to being an online platform is the right one ( theeir stated aim is to move from being a collectibles trader to a mere online platform). It is certainly true they are five years behind plan, have not yet got a platform out of trials and have spent a fortune trying to launch it, later this morning I will go through old statements and work out what they have spent

[qs9] 27/6/2014 07:39

Thanks Graham that is really interesting background...I'm not sure about the ebay comparison, as a specialist platform should always IMO have its place. Re selling shares, having worked in a plc once, it is always that connundrum as when can directors sell without there always being a perceived negative?

lets see

[graham1ty] 27/6/2014 07:22

Below expectations.....I think there is going to be a much longer period needed before see if this whole strategy works. I was a holder when it left flying flowers 15 years ago until c2011. I would have to go back and check but they first mentioned the new online platform in about 2009. They sacked the whole IT team in about 2011. They have charged now About £5-10m to the P&L over the last five years. Bidstart was a false start. I asked mike hall how they really think they can catch up eBay when they are years behind....

This long awaited move online has got to work.

Last I have always said to mike that he did not have enough shares to make his fortune. Selling £1m at 365p should have told us something

[qs9] 27/6/2014 07:09

OK, looks pretty impressive to me, but then I may be biased! Profits held up well (albeit for 15 months), after nearly £2m of new trading platform expensed, NAV nearing £2, decent stock levels and upbeat about Noble acquisition and long-term future of group....not a lot about current trading from what I could see, but this is IMO all about this new trading platform and what it can achieve. Disappointing to see various aborted opening costs and a £800k legal bill!

All in all though bodes well and i'll be interested to see where brokers take SGI from here given the massive potential it obviously has. would be nice to see a few Directors top up given recent fall to show their confidence....?

All IMO...

[qs9] 26/6/2014 15:26

hopefully a tree shake, back to all square...

[qs99] 26/6/2014 12:00

Yes makes me nervous!