seeking alpha article Collectors Universe - A Scandal Waiting To Be Exposed

[Peter_Spaeth]

Originally Posted by dwinters

THe volume was up slightly today. From 50k to 85k. Wondering what happens if some (or even just 1) of the larger holders dumps. I am expecting class action lawsuit to drop soon. That will be eye opening. I sent all the links to the major short funds.

I bet the guarantee seemed like a good idea at the time. I have to believe they have known for a long long time that there was at least potential for liability well over and above the reserve -- it seems likely they were aware of the volume of doctored cards in the hobby and they can only do so much to keep them out -- but they probably never anticipated it could come to the forefront so quickly and dramatically. I would think that, more than the prospect of reduced revenues, would be the concern of a large investor at this point.

If the stock takes too big a hit there might be a way to fashion a securities fraud suit against CU, as well as whatever collector suits against PSA people are considering.

[JeremyW]

Originally Posted by Peter_Spaeth

I bet the guarantee seemed like a good idea at the time. I have to believe they have known for a long long time that there was at least potential for liability well over and above the reserve -- it seems likely they were aware of the volume of doctored cards in the hobby and they can only do so much to keep them out -- but they probably never anticipated it could come to the forefront so quickly and dramatically. I would think that, more than the prospect of reduced revenues, would be the concern of a large investor at this point.

If the stock takes too big a hit there might be a way to fashion a securities fraud suit against CU, as well as whatever collector suits against PSA people are considering.

I'm the owner of a very small business & can't imagine the amount of requests for returns & reimbursement that must be going on between PWWC & PSA.

[swarmee]

And remember, barely anyone knows about this scandal yet.

[joshuanip]

Originally Posted by Peter_Spaeth

I bet the guarantee seemed like a good idea at the time. I have to believe they have known for a long long time that there was at least potential for liability well over and above the reserve -- it seems likely they were aware of the volume of doctored cards in the hobby and they can only do so much to keep them out -- but they probably never anticipated it could come to the forefront so quickly and dramatically. I would think that, more than the prospect of reduced revenues, would be the concern of a large investor at this point.

If the stock takes too big a hit there might be a way to fashion a securities fraud suit against CU, as well as whatever collector suits against PSA people are considering.

Given their largest holder is an algo, they could be dumping right now because it's most likely failing its momo program.