Stanley Gibbons Share Discussion Threads

[superiorshares] 17/1/2022 18:11

Jasdan ..you are a hoot !
You supposedly have been buying shares for the last 4 years or so now . You must own about 15 per cent if the company 😀

[jasdan] 17/1/2022 16:39

Lastly, I note that on the core businesses, there is big push on auctions both for stamps and coins. And as we pull out of lockdown after 26th January, we should quickly see trading jump.

I will be buying more shares shortly. For me, what other stocks offer such potential? Buy at say 2.6p and sell at say 6p / 15p within the next year / couple of years?

Just wait for the market to start factoring in future potential profits here, matched by falling debt...

[jasdan] 17/1/2022 16:36

Also, I would comment that according to those at SG, sales of the fraction exceeded their wildest expectations, so it is hard for me to view it as being a negative experience. I do not see any reason why SG / Phoenix can't retain more of the fractions if required, the key thing now is:
a. the next new fractional issue.
b. the establishment of a trading exchange for these fractions.

Both should boost interest in the fractions which by inference will lead to a boost in SG's turnover. No wonder Shircore thinks the company will soon be trading in the black again!

It's just not priced into the shares at the moment, but I feel this may suddenly change as the market wake up to the increased future earnings of SG.

[jasdan] 17/1/2022 16:31

I think many on here are missing the point about the issue of the fractions. The first fractional issue for the 1c was partly experimental, it had not been done before and new companies / structures were set up for it. Just look at the financial planning behind the purchase! Talk about playing around with assets and debts! Phoenix is clearly a master at this sort of thing.

The whole point to me about the 1c fraction is that SG was ring fenced from the liabilities involved, it was merely an initial attempt to see what interest existed in the concept and lo and behold a couple of months later SG has over £1m extra into its accounts. Obviously if all 80,000 had been sold that would be excellent for all concerned, but this was an experimental issue so I am not concerned that only 12,000 have been sold. Irrelevant other than providing an unexpected £1.2m windfall into the coffers. Now the model has been proven to work, I am looking forward to the next issue which we are being told is coming out soon. I suppose from Phoenix's point of view, whatever it is, they will to buy / own it first, before issuing fractions in it.

[creme de menthe] 17/1/2022 16:17

Unfortunately these fractions are selling slowly now, maybe around 2 or 3 a day.
I cannot see them offering a market place for them now. We were informed there would be one "before June" so that is May I suppose. Four months and they might sell another 500 but they are hardly going to allow second hand sales where the price crashes on the first day. Unfortunately anyone who bought as an investment will find themselves unable to cash out.

Utterly predictable.

[ternian] 17/1/2022 04:03

Total train wreck. 3 months in and only 22% of shares sold. SG share price is down. Showpiece have no idea what they are doing and are pumping useless 'rarities' across social media that they don't own.

I can fully understand Phoenix currently pooping their pants. LOL

[superiorshares] 17/1/2022 03:18

I think it might be time to short Castlenau?
In my years have seen so many of these small companies that float around a pound and then crash to around 30/50p. Then languish at that price for years !

[creme de menthe] 11/1/2022 19:38

They have sold 700 since Dec 2nd, but now slowing considerably. They have sold about 10 in the last week. More expensive advertising needed.

Word I'm getting is Phoenix might be regretting its involvement but is too deeply committed now so wait and see approach from them.

[clocktower] 11/1/2022 17:18

Still over 29,000 fractions available - a really poor show and the handling of this reflects on the business.

[jasdan] 07/1/2022 13:58

Who knows 2magpies? I think most of us were much more interested with his next comments in that RNS.

[2magpies] 07/1/2022 13:29

From 9th Dec21 RNS:

" Outlook

Someone once gave me a valuable piece of advice, 'if you give a target, don't give a timeframe and if you give a timeframe, don't give a target'. "

Can this be 'translated' as follows?

1.We'll make £30m profit, just can't tell you when.
2.It will be 3 years, but I can't tell you what will happen in 3 years.

[gbjbaanb] 04/1/2022 23:17

The increase.... from NFTs of course. NFTs are the new blockchain, and about s much hype and usefulness, but that doesn't mean they're not the new hotness and should bring in cash. The world is crazy.

[retriever1] 04/1/2022 22:38

Personally, I can't understand why everyone is discussing NFT's and the like rather than the business fundamentals. In order to make a profit SGI has to increase its turnover by about 60% from current levels. It doesn't take Einstein to work that one out. I repeat what I said a few weeks ago, which was totally ignored at the time, where is that increase going to come from? Can someone, anyone, please explain>

[jasdan] 04/1/2022 15:48

Ijamion, that's rather similar to the SG share price. Whilst we might all be discussing it on here, few others have heard of it and it remains under the radar of most investment institutions as it is so small by market cap.

The new exposure from Castelnau should help things, but more basically, SG management need to start banging the drum a bit more, issue a few more RNS's, get some interviews with some investment magazines etc, and raise the profile of the Company a bit.

I am sure that Phoenix, Castelnau and Showpiece between them can raise the profile here a bit and get the shares up a bit. Once the shares are say 8p+ they will naturally gain momentum as the market cap will be much larger and start to fall within the investment community's gaze.

Agree it seems a far cry at the moment, but you only have to look at company's such as SAR [Sareum] to see how quickly a share can be booted upwards.

[ijamlon] 04/1/2022 15:25

Had three well educated and savvy 20 somethings around the dinner table at Christmas, one of them collects coins. None of them had ever heard of a penny black. I was quite surprised. Maybe stamps are fading from the top division of collectibles.

[deniro33] 04/1/2022 10:19

Very true, Jasdan. And it’s only a matter of time when another item will go on Showpiece. Consequently, also it’s only a matter of time when this share price will again be above 3p…

[jasdan] 04/1/2022 09:04

Creme, the 1c is just the first step. Wait for Showpiece to issue further fractions in different items.
And bear in mind the cost of the 1c is basically free of charge to SG as it was ringfenced a while ago by Phoenix

[deniro33] 04/1/2022 08:59

Ok... But what is NFT after all? Another means of creating or exposing some art. Will it make me rich if I start using it? I doubt it. If a pen didn't make someone a good writer I don't suppose that a keyboard will help. Of course, those who are the first in the queue are always on a better position to succeed. Let's see if- given it time- a more reasonable value will not be determined by what the company owns.

[creme de menthe] 03/1/2022 23:44

Ternian...fully agree.
There are 29,000 1c shares left plus 39,200 that SG own. Given the large expenditure of advertising and press coverage sales are pretty sluggish to sell just 12,000 (most of those were sold at £90 each) so sales of £1.1m so far really.

Rarest stamp in the world is worth $8 million is really piddling compared to rarest car in the world £70m, rarest painting $450m, rarest single diamond $350m.

The reality is SG is a heavily indebted hobby shop struggling to remain relevant in a world which has largely moved on from the requirement of paper labels to prepay postage on mail. Now we just get barcoded items delivered by white vans.

SG is a great hobby shop but trying to become more than this is where it has always had problems and it now probably too late to enter the NFT world in a meaningful way.

As a 2-3p share, £10m-£20m turnover, sure, why not, but this company is fighting for survival and the Magenta 1c isn't going to be the revival some are hoping for.

[ternian] 03/1/2022 23:19

Jasdan - revenue is not income. SG needs real income from their core business model. At the current rate of sale, SG won't even get close to breaking even until 2028 (if SG is still around by then).

[ternian] 03/1/2022 23:17

Magpie52 - It's very relevant. It shows that SG/Phoenix never understood the market to begin with. Veve sold nearly 30,000 NFTs in less than a second (add to that all the other Authorised Postal Authorities crypto stamps). People don't want fractional ownership - they want crypto backed NFTS. Shircore's brain fart while surfing the internet one morning shows his total lack of knowledge of this market.

If SG had half a brain, they should have released a 1st Edition 1c Magenta NFT at £10 each backed by Ether. With a fully functional platform from Showpiece, they then should have taken a cut of each buy/sell after the initial release and followed it up with additional NFTs from their over-priced stock in limited numbers to build up a brand in this space.

Instead we got this coffin filler offer.

[twixy] 03/1/2022 22:44

On the VEVE USPS stamps, the purpose of having 4 in a collection and sold at 6USD is to encourage individuals to buy them all, as no one knows which one they will get, creating the resale market. It sounds like you have downloaded the App - look at the market place - the rarer versions are selling for 400USD. USPS earn a royalty on each sale, not just the initial sale.

[magpie52] 03/1/2022 19:32

Jasdan, I think it's closer to £1.2m so far. But either way, I don't see that the revenue generated is very significant, when compared to the £6.2m cost of the stamp.

[jasdan] 03/1/2022 17:23

Discussion over the sales of the fraction miss the point that SG have already sold £1.5m of these things, that alone has created a lot of revenue that never existed before.

Just wait for fraction 2 or 3 to turn up and lets see what SG makes from those.

This has enormous potential, just like SG's plans to ramp up their auction sides, and their Baldwin sides.

[jasdan] 03/1/2022 17:21

Sikh, like you I decided not to buy the fractions as the ordinary shares were so cheap. I just bought more shares. I see things a little differently in that I don't see Phoenix as a problem. Yes, they call pull the rug, but why would they? They've already put in approx. £40m into SG, I just cannot see them walking away from it, especially as they have gone on record to confirm they will be long term investors. They are the company's bankers and main shareholder and I am pretty sure neither of those is going to change anytime soon.
And then there is Castelnau. Now that is is a pretty interesting situation since SG is a core holding for their funds.
And then there is Showpiece and what they are going to sell next, whatever it is, SG will take their risk free cut from it.
And lastly, there is the oncoming recovery and movement into the black at last.
I cannot see all of these factors as being worth just 2.45p.