Stanley Gibbons Share Discussion Threads

[jwe] 13/7/2004 13:18

Thanks for the confirmation.

[xdavid] 13/7/2004 12:44

Seymour Pierce report from March quotes "websites now receive 9 million hits per month, up from 6 million last year" [2002]. I think the 9 million was quoted in the annual report (2003). As the T1ps.com newsletter states, 80% of earnings have previously come from UK. Any growth in worldwide sales via the internet go straight to bottom line.

[jwe] 13/7/2004 12:18

Am i right in saying the last figure we had for web site hits was 8m a month and this is now a 25% increase on that figure.

[xdavid] 13/7/2004 11:58

Peter Wright fits perfectly into SGI's strategy for expanding into 'emerging markets'. He'll be the man who will be leading them at these trade shows over the next year...

LOCATION:  International Convention and Exhibition Centre, Singapore
  DATE:  28th August 2004 to 1st September 2004

LOCATION:  Freemantle, Western Australia
  DATE:  9th September 2004 to 12th September 2004

LOCATION:  Monte Carlo
  DATE:  3rd December 2004 to 5th December 2004

LOCATION:  New Delhi, India
  DATE:  7th December 2004 to 13th December 2004

LOCATION:  Brno Exhibition Grounds, Czech Republic
  DATE:  10th May 2005 to 15th May 2005

LOCATION:  Mariahamn, Aland, Finland
DATE:  26th August 2005 to 28th August 2005

[kael] 13/7/2004 11:53

The bid has consistently been closer to the mid than the offer for over a month, the chart shows the price movement as a result of this.
Things are looking very bulish indeed. Two and a half weeks to results, now it really is starting to get interesting.

[xdavid] 13/7/2004 11:50

Comdirect: 11:49
Offer price: 3.75K @ 93.00
Bid price: 37.5K @90.6

[xdavid] 13/7/2004 11:39

Nice article - hits the nail on the head. Describes exactly why I think that SGI can maintain good growth for a long time to come and not just a couple of years before they hit a 'ceiling' and slow down. The automation of general sales via the internet only requires them to have a stock for turnover and if they are able to implement themselves as a trading intermediary then they do not even need the stock! Meantime their focus on top grade material via the investment channel identifies them as the premium brand name. Excellent marketing stategy.

[don carter] 13/7/2004 11:28

Morning all,
Chartwise, if SGI closes above 89.5 mid today, that'll be the third day running and will convince me it's found a new base level upon which to move to a new high. As we've discussed before, that should be 112 or 114, depending whether you fancy a retracement analysys or a fair value on fundies - this summer not next! If Trendwatch is right, and I'm in this stock very much because of that line of thinking about stamps and the internet, who knows where we'll be next summer? Like the various tipsters of SGI who are over 100% up on this, I'm now over that with my core holding and look forward to more of the same in the next 12 months. A bright spot to brighten the day in a difficult market.

[jwe] 13/7/2004 11:21

Now moving up-looking very promising.Still holding from 40p much more to come i think.

[kael] 13/7/2004 11:17

on the move, new highs and if im not mistaken...this is breakout.

[ukhawk] 13/7/2004 11:09

Nothing new, but it is a well written summary. Confirms that SGI is still cheap at these levels, something new entrants might have questioned.

[popgunn] 13/7/2004 10:58

That's the one - I deleted it before thinking of posting it.

[nurdin] 13/7/2004 10:58

well we could have told them all that six months ago :o)

[kael] 13/7/2004 10:54

LOL timing.

[kael] 13/7/2004 10:53

Well it isnt hard to guess what they're saying nurdin :) Given the name of the website and the future newsflow from SGI.

[pze1] 13/7/2004 10:53

Buy Stanley Gibbons Group at 90.5p
Argues Ron Cullum of Trendwatch

What is your first reaction when you read that I'm recommending Stanley Gibbons Group? Our first reaction was: "this isn't going to be very promising, surely". Gibbons is all about stamp collecting; and stamp collecting is mainly the province of hobbyists - and, of course the royal family, which is not surprising, given that their images, and those of their relatives and peers overseas, appear so often that it must inevitably add a certain frisson to their hobby.

But dig deeper and you find that Gibbons starts to look very attractive. This is mainly to do with branding and brand leveraging, as the Americans say. Stanley Gibbons happens to be one of the most famous brand names in the world. Perhaps Edward Stanley Gibbons was predestined to become famous - he was born in 1840, the very year that the first adhesive postage stamps, such as the Penny Black, were introduced. He became an enthusiast and founded the stamp-dealing company in 1856 at the age of 16. The business boomed, partly because of the quality of his stamps and partly because of the value of his ever-expanding stamp catalogues In 1893, it moved to 399 Strand in London, which the business still occupies to this day.

The fully listed retailer Flying Brands (formerly Flying Flowers) bought Gibbons for £13.5m in 1998. It then demerged Gibbons onto AIM in September 2000. So what is it about this venerable old company that makes it such a good investment? Paradoxically, it's because the business could have been designed for the internet age. The number of stamp collectors around the world is huge: Gibbons estimates 30 million. Before the internet came along, most of these people would have been conducting their hobby in isolation, working from expensively produced catalogues obtained from libraries. The internet increasingly links everyone together as one big community (the company used to be called Communitie.com).

Gibbons has grasped the opportunity with both hands. Although it is still heavily involved in stamp trading and auctions, it has developed no less than 7 interlinked websites. Between them, they cover every aspect of stamp collecting. Then there's www.collectorcafe.com, which covers the whole field of collectables, not just stamps; while www.frasersautographs.com deals with what it says on the tin.

Its unique catalogue numbering system is the industry standard, which places Gibbons at the very heart of the industry. Consequently, its sites notch up nearly 10m hits a month. Gibbons' vision is something not so different from a stock exchange - a stamp exchange, if you will. With all its catalogues available on line, collectors around the world will be able to catalogue their own collections online, and get frequent valuations using dynamically changing prices. Hyperlinks from the catalogue entries will link to dealers who are willing to buy or sell the particular stamp, thus improving market liquidity and stimulating trading volume. It has already created two Footsie-like indices: the Stamp Price index and the Autograph Price index.

All of this should result in increasing income, generated from the sale of advertising, commissions, subscriptions, sponsorship and partnerships. The potential for growth is enormous. It estimates that it currently has 1% of the world market in stamp-related activity, with over 80% of its income derived from the UK. Even boosting its world market share from 1% to 2% would have a major impact. It now has the infrastructure in place to do just that. In other words, it has embarked on 'leveraging the brand'.

At 90.5p the company is valued at 22.5 million pounds or just 13 times 2005 earnings. With a potential share buyback on the offing as a bonus the stock is a buy.

Key Data

EPIC: SGI
Market: AIM
Spread: 88-93p
NMS: 1,000
Market Cap: 22.5 million pounds

[nurdin] 13/7/2004 10:46

Care to say what they are saying?

[popgunn] 13/7/2004 10:45

t1ps.com have focused on SGI in their daily email. Whether that's good or bad I can't say!

[kael] 13/7/2004 10:28

In the weeks before this rise we saw most of the available stock be hoovered up, not surprising to see the price rise in the way it did, the mm's simply havent got any.

This is what I meant when I said lack of sells holding the stock back, cant get any decent size if you're a buyer.

Good news is that interims are out soon, if the mm's dont get any stock, then they'll be a bit "fubared"

[nurdin] 13/7/2004 10:26

MMs are accumulating ahead of the results and the anticipated rush by T10ers imo

[kael] 13/7/2004 10:18

Let me sell the kitchen sink first - think I may be able to get £150 for it LOL.

Thats the lowest size quote I have seen. All 138 quids worth of it LOL

[ukhawk] 13/7/2004 10:16

Kael, yep, LOL, get in quick !!!

[ukhawk] 13/7/2004 10:12

Comdirect will now only sell 150 @ 92p !!! Still buying 37.5k though.

Only a matter of time !