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Hall to address conflict of interest

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Hello everyone...Many of you have asked many questions about PCGS. I'll try to answer all of them. If I miss any, it's not on purpose, just ask again.

First, there are two questions that I'll need some serious space to reply to. I will answer the following two questions tomorrow...

1. The PCGS conflict of interest question. You may be very surprised at my answer. And please tell Mr. Salzburg to tune in tomorrow night, he won't want to miss this one.

 

This should be interesting!

 

 

Andy laugh.gif

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I liked the answer he gave where he felt that the NGC to PCGS crossover rate should be about 50%, and it makes business sense to "steal" coins out of NGC holders.

 

Of course, published repors in the last PCGS newsletter said that that rate was less than 1/3, not closer to 1/2.

 

The answers that David have given are interesting so far, and makes me wonder what was happening over there.

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TDN,

 

Most of Hall's answers claim that he has been out of the loop for the last two or three years, but that doesn't seem to mesh with the perceptions that we have been seeing. Who was running the circus there, if anyone.

 

The river has flooded, and Hall at least has had the good sense to show up with sandbags and a hard hat, but I think that it will take some time to see whether he knows how to stack those sandbags in a way to prevent more damage.

 

And I must say, I am eagerly awaiting the conflict of interest explanation.

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I agree that DH has done a wonderful job so far of saving his company - and, quite frankly, I think the patient was in critical condition. However, the information that I have is that he was very active in PCGS day to day management. Perhaps too many chefs in the kitchen is why Rick chose to leave? [How many metaphors do I get to mix?] wink.gif

 

If he is going to follow thru on all that he says, the collector (and the industry) will be the better for it.

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If PCGS is grading 75,000 coins per month- and D. Hall stated he would have no reason to lie about that statistic- I can't see where PCGS is doing poorly, money wise.

Don't they receive the bulk of their income via grading fees? 75,000 coins worth of grading fees a month doesn't sound too bad! But, I did enjoy the visual of D. Hall wearing a hard hat carrying all those sand bags! smirk.gif

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Braddick: They are status quo as long as they keep Fixed Overhead in line. This excess SG&A is the thing that normally causes Working Capital or cash flow problems in small companies. tongue.gif

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"If PCGS is grading 75,000 coins per month..."

 

Man...could you imagine getting up in the morning...knowing that when you get to work you get to spend the day grading X hundred silver American Eagles for Coin Vault....

 

That's gotta be mind numbing....

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I agree that DH has done a wonderful job so far of saving his company - and, quite frankly, I think the patient was in critical condition. However, the information that I have is that he was very active in PCGS day to day management.

 

What he is saying isn't gelling with our knowledge, but if his "wake-up call" attitude sticks, it will be a good thing, no matter who is really to blame for recent operations.

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Don't they receive the bulk of their income via grading fees? 75,000 coins worth of grading fees a month doesn't sound too bad!

 

PCGS is doing alright, but the other divisions aren't necesarily pulling their weight. Also, CLCT has agreements with some dealers where the dealers are able to defer their fees until the graded material sells. They cited poor sales at the dealer level in their last financial statement. This causes their cash flow to be low, even if revenues appear normal.

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