Major changes on the table at Collectors Universe

[MW1]

For those who do not already know the news, major changes are on the table at Collectors Universe.

 

Link to thread

[MW1]

Link to the full report (10-Q)

[gmarguli]

Step 1: Go public and suck money out of the shareholders hands.

Step 2: Bleed the company dry for a few years.

Step 3: Get rid of the junk.

Step 4: Go private.

 

[BillJones]

I was wondering when the other shoe was going to drop on this situation. None of the series collectors were fooled for a minute when CU fired Bowers and most of his staff followed him. Trust is placed in people, not shells of companies.

[jom]

Once again, it seems the "periferal" businesses related to coin collecting are what really make the money: auctions and grading. Actual coins sales don't....in most cases.

 

jom

[truthteller]

I can see a scenario whereby Heritage might just buyout CU when it becomes vunerable, then take it private. Heritage works with a lot of cash flow and CU stockholders might be in favor of a shakeup.

 

 

 

TRUTH

[gmarguli]

Too bad insiders own 50%+ of the company.

[Tradedollarnut]

Exactly correct, Greg. The majority of CU stock is tightly controlled by its current management. Heritage could not possibly 'buyout' CU without current management's consent, so I highly doubt a 'shakeup' is pending.

 

 

[jtryka]

Kinda makes you wonder why they'd be presenting at the Roth conference this week...

[sanmary]

I was wondering when the other shoe was going to drop on this situation. None of the series collectors were fooled for a minute when CU fired Bowers and most of his staff followed him. Trust is placed in people, not shells of companies.

 

Perfectly stated, Bill. People trust people, not companies. Especially a person such as Mr. Bowers. A ton of the CU blind-trust was lost with his departure. Trust a company that maybe isn't all you want it to be but having David Bowers as a lead man, or trust a company without David Bowers and rely only on the ethics of David Hall........tough choice!