Stanley Gibbons Share Discussion Threads

[sikhthetech] 03/1/2022 16:47

Lots of discussion on the 1c and the fractional ownership.

I decided not to buy into the share (Fractional ownership) of the 1c BG stamp because of the lack of market place. They should have created the marketplace before offering the share.
I was tempted as I could say I own a piece of the "world's rarest stamp" but I thought it better to own stamps which can be easily sold later.

If they do create a functioning marketplace then I'll look at buying, even if the price is higher.

The positive I saw was that it gets more collectors and investors (ex and new) looking at buying or collecting from SG shop/website. Increasing footfall to their shop or increasing internet sales can't be a bad thing. That in turn should lead to higher sales and hopefully higher revenues/profits.
Once they have a functioning market place they could offer many other rare collectable items aside from stamps.


The problem SG face is Phoenix are running the show.

So there's some positives but still many challenges. It's still a gamble as to which way the company goes and entirely dependent on Phoenix.

[magpie52] 03/1/2022 15:37

I don't really see that VEVE selling out the USPS Xmas digital collectables is particularly significant. They appear to be sold randomly at $6 per stamp with some created supposed rarities. You have one stamp described as common as there are 8,888 of them, another described as uncommon with 7,777 a third called rare with 6,666 and the fourth described as ultra rare becasue there are only 5,555 of them. This seems to be a very different game to the 1c.

[twixy] 03/1/2022 10:36

Surely VEVE selling out in under a second is positive and bodes well for any future SG stamp NFT.

[ternian] 03/1/2022 02:14

This is what happens when a company attempts to be technologically revolutionary but has no idea what it is doing. Veve again sold out its entire USPS Xmas release in under a second. Swiss Post and Emirates sold out of real crypto stamps in mere hours.

Meanwhile, SG has sold a whopping 14.7% over nearly 3 months. Total dud. Good luck on Shircore delivering on his promise of return 20% above FTSE returns. LMAO. Any investors should have burnt their cash instead of buying this trash.

[superiorshares] 29/12/2021 01:17

Jasdan .
Just had a look , it appears I didn't miss the boat on that one.
If you had bought in , after charges and spread , you would have lost 💰.
The only possible way SGI could prevent endex , is if Castle know was a huge success . SGI could sell their stake and pay off their debt .

[jasdan] 23/12/2021 20:24

Superior, you’ve missed the boat on that one. Castelnau floated last month and you can now buy their shares at any time on the London market- CGL.

[superiorshares] 23/12/2021 20:11

I will agree with you on that Jasdan . It's a shame about your kneeling , left wing , woke Liberalism:-).. When are they floating this Castle know thingy ?

[jasdan] 23/12/2021 18:23

It could be anything even sports cars or property are possible next. Quite an intriguing proposition....

[jasdan] 23/12/2021 17:47

Well jested. But that is exactly what we will be getting as Showpiece gets it’s second and third offers going.

[knowledgeablestampman] 23/12/2021 17:07

I agree with you Jasdan. All it will take is for a very wealthy new collector to materialize spending multiple millions a year exclusively with Stanley Gibbons.
Sorted.

[jasdan] 22/12/2021 08:49

I think you’ll find things improve materially next year, clock.

[clocktower] 22/12/2021 08:30

Seasons greeting jasdan but it really looks like a dead duck as 1c has been a flop.

Good Luck.

[jasdan] 22/12/2021 08:26

Regarding the pandemic, hopefully this has very little effect on trading. As usual, S.G. is closed from Xmas day until 4th January although the internet side is still functioning. No wonder that the internet sales are rising so fast.

[jasdan] 22/12/2021 08:23

There’s no way Phoenix will want to waive goodbye to any of that, and for us smaller shareholders the best thing is that they are 58% shareholders. Spending £19.45m to get a 58% stake also protects us - after all, they will logically want the equity value to increase as much as we do, especially now Castelnau is on board.
I cannot imagine that the shares will stay at this level for very long, it has arisen in very light trading.

[jasdan] 22/12/2021 07:37

What Phoenix has invested so far:
£19.45m originally which got them a 58% shareholding, plus £16m on the banking facility in place of the old RBS one, plus £6.5m on the 1c.

Total: £42m so far
I’d say that represents a pretty large long term investment, securing them control of the equity and debt.

[twixy] 22/12/2021 07:15

Look beyond, into digital. Higher margins and a much bigger audience.The business is now cash flow positive...Partner with the right people for NFTs and the exposure will have a positive impact on the physical business.

[arthur_lame_stocks] 21/12/2021 22:34

Well ok i'll qualify that. SG own the 1c but bought entirely with a loan from Pheonix secured on it.

[jasdan] 21/12/2021 22:19

According to the update earlier this month, currently debt is at £16m and net margins are at around 45%.

Phoenix have invested over £40m into S.G. and they have regularly commented that they are in this for the long term. I’d say there’s almost zero chance of Phoenix “getting nervous” as otherwise why would they have bought the 1c?

[arthur_lame_stocks] 21/12/2021 22:06

Looking at it rationally: you have a company valued at £11m that turns over £10m a year. If they could get that up to £15m a year and earn a net margin of 10% on it (generous) then it would only be worth about £15m so less than 50% upside.

Then you have the very real possibility that it will go broke if Pheonix get nervous about getting their money back.

So you have the possibility of a modest profit offset against the very real possibility that you will lose all of your money.

This is a dog of an investment and any sensible investor will leave it well alone.

[retriever1] 21/12/2021 22:03

Although I have followed this thread for several years now I have never before been moved to write a post myself. However, has it not occurred to anyone else that in order to break even SG need to increase their sales by between £6/7million i.e. approximately 75% based on current margins and levels of turnover. Where, might I ask, is that increase going to come from in the current market? I would love to see it happen as I want SG to survive but am struggling with the concept right now.

[creme de menthe] 21/12/2021 21:46

There may well be a trading opportunity here now, but there is no case for investment yet. Any possible profit will be used servicing the very large debt. £20 or £25 million, I have lost track.
Interest rates are going up I hear. Good luck if you think shareholders will get a whiff of any profit.
Remember Phoenix don't need the share price to rise, they make their money on the loans.....

[deniro33] 21/12/2021 21:43

On the one hand, we have an indebted company that has not been profitable for several years, and on the other there is no interest from investors. No wonder the share price is what it is. But this picture may change abruptly. If you can’t rely on any signs of positivity then what’s the point to invest in shares…