Stanley Gibbons Share Discussion Threads

[jasdan] 15/1/2021 23:20

I think SG is missing a trick here. They should be offering tranches of stamps and coins to these bitcoin outfits for use as collateral to the bitcoin chain. Outfits such as ARB are looking for quality collateral to back their blockchain. What better assets than quality stamps or coins?

[superiorshares] 15/1/2021 20:43

Jasdan
I seen something about British Banks are to bar bitcoin profits being deposited in their banks .
Maybe that was where the Stamps and coin story developed from ?

[jasdan] 13/1/2021 09:42

Interesting discussion on LSE about stamps and coins being used as a possible underlying investment to back Bitcoins and to link stamps and coins to Bitcoin.

That would fire up the share price! Perhaps someone should discuss it with SG and see what is possible? Of course, any Bitcoin related scheme should not give any unlimited liability issues like the old investment guarantee scheme which became a noose around SG's neck. Still, if lessons have not been learnt from that debacle I'd be very surprised. That was a flawed model that perhaps can be drawn on and amended, with the liability implications amended so that SG is protected this time round?

[superiorshares] 05/1/2021 07:46

Jasdan

Now that the shop is closed again :-)

[gbjbaanb] 07/12/2020 12:49

The consequences of that is that SGI will simply have alot more Chinese focus to their sales (China seems unaffected by the economic impact of the virus, strange that :)

I'm not even sure children build train sets anymore, virtual ones perhaps, but the physical models are more an adult thing - in the shed, by people with money to spend on models and suddenly time to waste on such hobbies.

[superiorshares] 06/12/2020 09:57

Jasdan

Hornby. I think benefited because children were happy to build Rail layouts during
lockdown . If you asked them to collect stamps might be a different matter ?

My own opinion of the Global Stock markets is they are silly over valued ! .
Should they correct and I think they will ?.. That`s where I think the mkt Cap will fall back to about 5 million . It was nearly there during lockdown , I think it will re-visit that .

I am with you on the shop , very nice . I also think the Stamp offering is awesome !.. But they are very very pricey .

Free movement of people gave you Coronavirus and it is going to cost Trillions and Trillions !.. I think sleepy people have yet to understand the consequences of that .

[jasdan] 03/12/2020 11:23

On the contrary, now the vaccine's out, one can expect older collectors to start going out again, fairs and exhibitions to restart and SG's shop to get more footfall.

That is in addition to the heightened exposure their website has had during the lockdown with all the new collectors / younger collectors collecting on line....

Phoenix is a red herring in all this. They have stated publicly that they are 100% behind SG long term so do not expect any issue in March with the covenant testing, if anything they will probably agree to additional liquidity.

The shame is that if COVID hadn't arisen this year, by now we'd probably be seeing SG starting to trade in the black again. This has delayed this, but as things reopen and life starts going back to normal I would expect SG's turnover to rally substantially.

This should start rallying further once investors get wise to things.
If it becomes anything like Hornby - Phoenix's other big investment, we should be expecting big things in the near future.

[superiorshares] 02/12/2020 21:37

I see it falling to around 5 million mkt cap , if we get a global stock market sell off ?. Don't forget the borrowing of money to dump into the markets can't go on forever.

[gbjbaanb] 02/12/2020 21:14

Falling?

It's up from 2.8p,

[superiorshares] 02/12/2020 20:35

Jasdan after all these years you are still going on. All this debt SGI owes phoenix . How much did they pay the bank for it ???.. Ten per cent of the total value max !

[creme de menthe] 02/12/2020 12:18

The falling share price seems to suggest investors agree with my view.

[jasdan] 28/11/2020 12:23

A more balanced write up of the results can be read on the Armchair Investor site.

[creme de menthe] 28/11/2020 12:04

I expected the half year report to be bad and it was.
The company was in breach of its covenants and managed to obtain a waiver from Phoenix. The company is also going to draw down another £2m, the last of its remaining facility.
Sales were down in nearly all areas but particularly in Philatelic sales were I note only £100,000 of the £5m new stock on consignment was sold. I also see that SG is making much of an increase in its online sales. It hasn't put figures out on these but I can. They managed to increase online sales by £290,000. Not great when overall sales are £5m.
Jasdan mentions good auctions. The SG auctions are truly awful imo. Look at Feldman or Corinphila or Grosvenor or Spinks. All of these produce great catalogues, Named collections and multi million dollar a year turnovers. SG auctions is a faded shadow of these.
Investors have treated this share with the contempt it deserves and sold on News. I can see it falling back to the 2.5p level again. 2023 is a key year. Phoenix needs to be paid back £14.5m. I wonder if they extend the deadline.....

[jasdan] 27/11/2020 18:07

Nice to see that SG have a couple of good auctions going on currently with a varied choice of material

[jasdan] 27/11/2020 10:24

Of course, the other big issue out there is that as we all saw, over the last couple of weeks a lot of buyers came in and pushed the price up from 2.75p to 4.25p at one stage. That is over a 50% increase.
This move was sudden and not expected by some on here.

I do not think it inconceivable that this will happen again in say February / March time as it becomes obvious that trading is starting to improve again and more especially if SG starts to then reduce its debt level.

Reducing that debt level is key to their valuation next year, once that starts dropping we should see the market cap rising.

No debt will simply make them a takeover target so I wonder what level Phoenix are happy to maintain? They may even insist on a certain debt level in due course, just to try to keep control.

[jasdan] 27/11/2020 09:45

Key thing now is that at last debt / borrowings are no longer increasing. That is a material change. And they still have the £2m in the cash reserves so I would imagine they are treading water at the moment.
Some sort of impetus is now needed, this will presumably come from the Shop reopening next week, and from the increased internet trading, up 35% apparently.

[jasdan] 27/11/2020 09:42

Phoenix's role has interested me since they took it on here. They paid £19.45m for a 58% stake, that was money physically parted with by the owners of Phoenix.
Clearly until things normalise a bit, the sky's reopen and international travel / major shows restart, not much will change. But I reckon that once SG is able to go back to do its core job of trading stamps and coins, and going around the world to source them, as well as being able to hold big auctions and attend the big shows again, once that all happens we will see their prospects swiftly turn round.
Admittedly it seems an odd investment at the moment by Phoenix, but there are a lot of deals within deals here - for example the deals over stock of the former SG Guernsey; or the refinancing deals internally and the 5% interest charge etc.
I think we can all take it as read that Phoenix will waive any March deadline on covenants, one of their key men is in charge here, and they know SG is firing on whatever cylinders are available to fire on.
What could be a growing factor as well next year is that many countries will be coming out of lockdown faster than us - China /Singapore / Hong Kong for example, and folk in those places are big collectors. They will be buying from SG as soon as is possible.

[superiorshares] 26/11/2020 20:28

Energetic backer.
They own the debt , they will have paid a fraction for the stated debt . They could sell off the profitable coin section . I am sure they must have a hold on all the stamps should they pull the rug from under . They would be left with one of the greatest stamp accumulations in the World . For relatively little outlay . The fact that the shareholders would not make a return is a different issue

[energeticbacker] 26/11/2020 17:41

Investor's Chamopion's latest update queries how Phoenix Asset Managemenwill ever make a return here. The current £15.5m valuation seems extremely full for a heavily loss making specialist retailer which could conceivably generate sales of c£16m in a good year, from which it might squeeze c£1m of profit. There are plenty of better retail recovery plays out there......without the big debt burden

[superiorshares] 26/11/2020 17:25

Another year to wait .
Jasdan... depends on Corona now . It looks like phoenix will have to stump up more cash ?.. Corona will be well and truly around until at least 2023 .

Results are as good as can be expected .

[superiorshares] 26/11/2020 17:25

Another year to wait .
Jasdan... depends on Corona now . It looks like phoenix will have to stump up more cash ?.. Corona will be well and truly around until at least 2023 .

Results are as good as can be expected .

[jasdan] 26/11/2020 13:05

So’s most of the high street yet most of those companies shares are trading better Than SG’s

[arthur_lame_stocks] 26/11/2020 12:55

This company is practically insolvent.