Stanley Gibbons Share Discussion Threads

[dickbush] 13/1/2016 13:36

Thanks, Henchard.

[henchard] 13/1/2016 13:33

Book value of SGI's freehold property at 31 March 2015 was just £286k, so they own little freehold. By contrast, lease payments for the year were £1.8m.

[2magpies] 13/1/2016 13:30

Did they sound out a placing and found no takers, even at this price?

They have to stop going on about 'assets'.

Do they make a profit? Do they pay a dividend?

That's what really matters, imo.

Young people are not collecting stamps anymore, which tells us a lot about where the valuations are heading!

There is going to be a steady supply of collections coming onto the market, and a diminishing pool of buyers.

[dickbush] 13/1/2016 13:04

Eastbourne, I'm not certain but I feel pretty sure they own the freehold on the Strand building. If so, they could do a sale and leaseback. That's prime property and presumably the rental cost would be a lot lower than interest rates on their current debt.

Anyone know for certain if they own the freehold?

[clocktower] 13/1/2016 12:56

This is what you should be concerned about:

hxxp://investment.stanleygibbons.com/why-invest-in-stamps/wealth-managers-ifa/regulations-and-compliance

"JFSC: Stamps and other collectibles are not "Investments" for the purposes of the Financial Services (Jersey) Law 1998 (as amended) and as such are not regulated by the Jersey Financial Services Commission."

[eastbourne1982] 13/1/2016 12:51

Spob,

That is what I wonder, at the end of the day this business is packed with assets for the current market cap, even if they sold their stamps at cost they would recoup circa 50 million, after wiping out debts they may be left with a surplus of say 30 million, current market cap is around this figure !! Then you add the likes of Baldwin's, DNFA, Mallett etc etc on top, combined these must be worth 30 - 50 million.

Noble investments was acquired for over 40 million !

[dickbush] 13/1/2016 12:47

Currently, there are 430,000 shares bought versus 40,000 sold. It seems there are a lot of mugs like me out there.

[11_percent] 13/1/2016 12:47

clocktower   13 Jan'16 - 12:21 - 1890 of 1894    0   0

11_percent - Not undervalued if you account for the "over paid lemmings" (as DB suggests) and the true current value of the stock in most posters valuation estimates. Heads need to be put on the block.

-------

Ok, management are over paid.

A lot has been said on this BB about the price SGI expect to get for their stamps.

As a collector, I have always thought that heir stamps were/are overvalued. However, I have bought stamps in their auctions because there is zero doubt about quality and authenticity.

My point is, They have been selling stamps "above vale" for over 100 years, keep doing it. Collectors will pay for quality.

[spob] 13/1/2016 12:44

Are they setting this up for an opportunistic MBO ?

[dickbush] 13/1/2016 12:41

Fidelity bought almost 10% of the equity just six weeks ago. Presumably, they had access to senior management before they did so. Have things gone terribly wrong in six weeks or didn't Fidelity do its homework. Surely they would have asked about the debt situation and the then current trading. This is all very odd. Perhaps a head at Fidelity will be on the block, too.

[11_percent] 13/1/2016 12:29

Clock,

Our posts crossed.

Agreed, regarding our BoD.

I have many concerns with my investment in SGI.

One new one is this RNS.

They say they do not want to issue more shares, below value. They then go on to say they don't have a clue what to do next.

[dickbush] 13/1/2016 12:28

Given the 80% decline in the share price over the past year, you're probably right, clocktower. But I still think the strategy was right. Obviously, the execution of the strategy left a lot to be desired.

It's easy to be wise after the event, but an equity fund raising a year ago would have been easy and cheap.

[11_percent] 13/1/2016 12:24

The case for SGI being selling stamps as an investment is a very good idea.

Unfortunately, they do not have made a good job of implementing this strategy.

Also, they have taken their eye off the ball, which is selling stamps, the core business.

They must go.

[clocktower] 13/1/2016 12:21

11_percent - Not undervalued if you account for the "over paid lemmings" (as DB suggests) and the true current value of the stock in most posters valuation estimates. Heads need to be put on the block.

[spob] 13/1/2016 12:18

62p, Mcap 28.3m, Nos 47.1m

Update 1 April 2016...... 16.25p, Mcap 29.1m, Nos 178.9m ( after £13m fund raising )

[11_percent] 13/1/2016 12:13

However, whilst an equity fundraising is one option potentially available to the Board, the discount to the Group's net asset value at which any such fundraising would likely be priced could make it a relatively unattractive route to alternatives under consideration.

This share is trading under value.

[dickbush] 13/1/2016 12:12

You have to sell a lot of stamps to reach a million pounds and SG, presumably, needs more than a few million.

I wouldn't be surprised if their bankers have been making unsolicited telephone calls along with shareholders. They always get nervous when the going gets tough and overoptimistic when everyone else is. A load of overpaid lemmings!

I guess we need an update on the December quarter's trading to calm things down-or otherwise.

[she-ra] 13/1/2016 11:59

Cant they just sell a few high value stamps at a slight discount to their market value and then there is no need for this?

[dickbush] 13/1/2016 11:59

As I noted above, even with a 20% inventory write off, the net current assets/share would still be closer to 70p than 60p. I don't see why new debt would have to be more expensive than the current debt.

[eastbourne1982] 13/1/2016 11:58

Castleford Tiger,

Takeover or MBO at low price ???