What will Collectors Holdings do with SGC?

[raulus]

Originally Posted by Peter_Spaeth

At a glance it would seem to entrench PSA's monopoly position, and/or threaten to substantially lessen competition by taking away the one competitor who arguably could constrain PSA's pricing. These are the basic principles that inform the Merger Guidelines. No clue how the government would view it though, if they have a view at all. May not care.

I wonder to what extent it makes a difference that this is a weird backwater part of the economy. We're not talking about groceries or internet service. This is a service that a tiny minority of Americans will ever use or even come into contact with, and it's definitely an optional service. Extra so for people who are part of our world, yet are loud and proud antigraders, like Jingram.

[Peter_Spaeth]

Originally Posted by raulus

I wonder to what extent it makes a difference that this is a weird backwater part of the economy. We're not talking about groceries or internet service. This is a service that a tiny minority of Americans will ever use or even come into contact with, and it's definitely an optional service. Extra so for people who are part of our world, yet are loud and proud antigraders, like Jingram.

Well you saw how much the government cared about rampant card doctoring, although maybe not a fair analogy. But yeah, doesn't seem like something that would be of great concern. Also deal may be under filing thresholds which makes review unlikely. Private parties can also sue of course.

[jjbond]

and I just sent SGC my largest grading order ever. Sigh....

[Fred]

I selected "Other" because PSA will find a way to really screw things up that hasn't been thought of yet.

In the end, does anything really change when you consider the apathetic attitude that is taken with regard to TPGs inability to be consistent in assessing pieces of cardboard?

[parkplace33]

I am wondering the sentiment about SGC at the Philly Show. Will be interesting.

[DeanH3]

What's the saying? Buy the fear, sell the hype? Something like that.

If SGC is seen as a reputable grader now, why should those cards already graded be looked upon as substandard? What really changes about the card? Nothing. I don't think they should be considered substandard. The card is still the card. We all know we can find over/under-graded cards in both slabs, old and new. SGC would not be going away because of a default in their grading or some kind of a scandal. So, should SGC cards be looked at differently? I think not. I will still continue to buy the card and not the grade. If that card happens to be in a SGC holder, I'm OK with that. Seems like it might be a little premature to panic. Who knows what the future folds. It will be interesting to see.

[Peter_Spaeth]

Originally Posted by DeanH3

What's the saying? Buy the fear, sell the hype? Something like that.

If SGC is seen as a reputable grader now, why should those cards already graded be looked upon as substandard? What really changes about the card? Nothing. I don't think they should be considered substandard. The card is still the card. We all know we can find over/under-graded cards in both slabs, old and new. SGC would not be going away because of a default in their grading or some kind of a scandal. So, should SGC cards be looked at differently? I think not. I will still continue to buy the card and not the grade. If that card happens to be in a SGC holder, I'm OK with that. Seems like it might be a little premature to panic. Who knows what the future folds. It will be interesting to see.

I don't know either obviously, but my concern is that eventually, after tons of cards are crossed over as will be inevitable once the holder is discontinued, people will assume an SGC card either would not cross at the grade or would not cross at all. So people wanting to sell will be forced to try to cross, and to suffer devaluation if they don't or can't.

[hcv123]

I've thought, read and talked a lot about it. Here are my current opinions:

1) I think Collectors primary motivation here was defensive. To take away the opportunity from Fanatics to buy SGC which would have almost doubled their market share to 17% and growing. SGC I think was growing fast, with Fanatics $ behind them could have done some damage to PSA's 78%. PSA is already owns 78% of the market, I don't see that additonal 7% as a big deal to them on its own.
2) So they own it, now what. If they fold SGC, they lose $$ (the money they just invested) and market share (there are many loyal SGC customers who would not submit to PSA). If they invest in it and grow it, they have an incredible opportunity to make more $$ and grow total market share. In fact I think it will be considerably easier for them keeping both companies running independently, to grow SGC business than PSA business! It makes A LOT of business sense to run both companies and is counter intuitive from a business perspective to find SGC.
3) I don't see them changing crossover standards either - if they started accepting SGC grades = PSA grades, it dilutes the value of the PSA cards/brand.
4) I could see a consolidation of SG & A to run the company leaner. I could also see some pricing changes.
5) I could see PSA set registry technology shared to bring back an SGC set registry - creating greater competition between the 2 companies! Which serves to benefit the parent company.

The more I think about it, the more keeping the companies operating and competing independently makes a lot of business sense!

I am still uncomfortable and as a collector and dealer am fearful of some of the "what ifs", but logic tells me the fear is really just that fear (of change). Time of course will tell. I'll be hoping for the best.

[3-2-count]

Originally Posted by deanh3

what's the saying? Buy the fear, sell the hype? Something like that.

If sgc is seen as a reputable grader now, why should those cards already graded be looked upon as substandard? What really changes about the card? Nothing. I don't think they should be considered substandard. The card is still the card. We all know we can find over/under-graded cards in both slabs, old and new. Sgc would not be going away because of a default in their grading or some kind of a scandal. So, should sgc cards be looked at differently? I think not. I will still continue to buy the card and not the grade. If that card happens to be in a sgc holder, i'm ok with that. Seems like it might be a little premature to panic. Who knows what the future folds. It will be interesting to see.

Bingo!