Collectors Universe Mints A Dividend Part 3: Trading Cards And Autograph Authentication Segment

In our previous installments of this investigation we looked at the business model of Collectors Universe (Nasdaq: CLCT), establishing that the rare coin grading market is a valuable little niche. This niche has propelled Collectors Universe into a wonderful dividend as it continues to increase in marketshare and out maneuver the privately owned NGC. No other grading party was even competitive in 2016. This year looks to be no different. The PCGS brand has grown into one that collectors can trust and command a significant premium at auction. This gives it leaps and bounds a head start on any competition that may enter the market.
In our third and final installment of this series I wanted to look at the card grading and autograph authentication services known as Professional Sports Authenticator (known in the industry as PSA). I choose these to do last because I guessed they would be a small and nearly meaningless market. I also assumed that one could make an informed investing decision regarding Collectors Universe without even acknowledging this division of the company.
What I learned is that it is a small, but growing division; a division Collectors Universe owns the market for. To give you a sense of how small it is, the 1st quarter of 2017 saw an increase in 11% or $0.4 million in revenue. That was followed by 15% growth posted on February 2nd 2017. I do believe the track record Collectors Universe has established and the recent trends in the trading card secondary-market... Read more

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