PWCC Statement on Recent Card Trimming Concerns

CuriousGeorge · #1 06-12-2019, 10:19 AM

Quote:

Originally Posted by Peter_Spaeth

Meanwhile CLCT stock has recovered and then some from the drop the other day. Not so easy to short stock as some folks seem to think.

It's very easy to short and is up today on 10K shares.

Dpeck100 · #2 06-12-2019, 10:23 AM

Quote:

Originally Posted by CuriousGeorge

It's very easy to short and is up today on 10K shares.

It might be easy to get shares to short but it is a terrible short.

No liquidity and the open interest in the options market is tiny with massive spreads.

It is one thing to not like CLCT and hope for its demise but a terrible trading stock.

Peter_Spaeth · #3 06-12-2019, 10:29 AM

Quote:

Originally Posted by CuriousGeorge

It's very easy to short and is up today on 10K shares.

Maybe with inside information, but otherwise not so sure about that.

CuriousGeorge · #4 06-12-2019, 10:32 AM

Quote:

Originally Posted by Peter_Spaeth

Maybe with inside information, but otherwise not so sure about that.

What does inside information have to do with whether it�s easy to short or not? And aside from that with what we have seen on this board and blowout over the past few weeks would you want to be a shareholder of this company?

Peter_Spaeth · #5 06-12-2019, 10:34 AM

Quote:

Originally Posted by CuriousGeorge

What does inside information have to do with whether it’s easy to short or not? And aside from that with what we have seen on this board and blowout over the past few weeks would you want to be a shareholder of this company?

If by easy you simply mean the process, then nothing, but I thought you were referring to the chances of success.

I wouldn't want anything to do with this stock in either direction at this point. I think the market impact of this stuff is very hard to predict.

CuriousGeorge · #6 06-12-2019, 10:42 AM

Quote:

Originally Posted by Peter_Spaeth

If by easy you simply mean the process, then nothing, but I thought you were referring to the chances of success.

I wouldn't want anything to do with this stock in either direction at this point. I think the market impact of this stuff is very hard to predict.

Now I understand what you meant. And as for where the stock goes I guess it depends on how much liability and litigation comes out of this. Probably tough to tell now but I know if I thought I had an affected card I would not let them get away without honoring their guarantee.

Peter_Spaeth · #7 06-12-2019, 10:50 AM

Quote:

Originally Posted by CuriousGeorge

Now I understand what you meant. And as for where the stock goes I guess it depends on how much liability and litigation comes out of this. Probably tough to tell now but I know if I thought I had an affected card I would not let them get away without honoring their guarantee.

We'll see. Companies are very adept at settling lawsuits cheaply enough not to impact the stock price, particularly with plaintiffs' lawyers who want a payday more than anything and settle for pennies on the dollar. Most litigation I do on the defense side, if we don't win at the motion stage, ends up this way.

Dpeck100 · #8 06-12-2019, 12:21 PM

Quote:

Originally Posted by Peter_Spaeth

We'll see. Companies are very adept at settling lawsuits cheaply enough not to impact the stock price, particularly with plaintiffs' lawyers who want a payday more than anything and settle for pennies on the dollar. Most litigation I do on the defense side, if we don't win at the motion stage, ends up this way.

It is not my area of expertise but it would seem that CLCT might carry some form of errors and omissions insurance. Just doing a quick Google search it can cover professional advice and it would seem that a graded altered card could fall under inaccurate advice.

At the end of the quarter in March CLCT had 15.7 million in cash and is on pace to earn roughly 9.6 million in their current fiscal year. I keep reading posts about the 832k reserve fund and people are forgetting this is just a bad debt reserve and should they have to payout more they have plenty of other resources to stay a float.

I get the feeling that it isn't going to be a slam dunk for card buyers to be made whole and especially since you sign a submission form that states you won't submit trimmed cards. I could see them going hard after this Moser guy and he clearly has some resources one would think after the trail of successful flips he has made.

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