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The Magenta Arrives At Stanley Gibbons

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Posted 07/31/2021   10:43 am  Show Profile Bookmark this reply Add cjpalermo1964 to your friends list  Get a Link to this Reply
"Dirty" is too strong in my opinion but the average person putting in $10,000 seems unlikely to achieve a return in excess of inflation. To me it feels like "investing" in an NFL stadium seat license. You give the team $$$ which it uses as operating capital to fund expenses, and in return you receive limited rights such as buying seats and access to club areas if you do. Years later theoretically you can sell your license and achieve a gain, if the team is doing well then, but more likely you sell at a loss or even walk away from the money if there is no market for the license. And the team controls the market for licenses. If you have mentally amortized the value of the access benefits over the period that you held the license, you may feel OK, but you're not going to achieve some huge return that beats the other markets. It's best viewed as a temporary plaything for the financially secure who aren't worried about losing the money.
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Posted 07/31/2021   11:18 am  Show Profile Bookmark this reply Add rismoney to your friends list  Get a Link to this Reply
Maybe you should find out why SG sent bankrupt the last time. And about Guernsey.
The marketing/deceipt of Guaranteed Minimum Return Contracts, Capital Protected Growth Plan and its Platinum Investment Portfolio.


History all around on philatelic investment is dodgy at best. SG is reputationally a disaster for business management and shareholder respect and I am certain fools and their money part ways here.

I believe the investment arm Phoenix is based in the Bahamas, so expect immunity baked in when this "investment" sours.

The thing about rich people and one of a kinds, is that they dont like to share them. Trophies are about bragging rights.



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Posted 07/31/2021   11:32 am  Show Profile Check 51studebaker's eBay Listings Bookmark this reply Add 51studebaker to your friends list  Get a Link to this Reply

Quote:
Maybe you should find out why SG sent bankrupt the last time...

rismoney,
Maybe you should find out who cjpalermo1964 is, a person who has made many contributions to the hobby, a person who does a significant amount of philatelic international travel, and a person who is well versed in business investments.
You have already ready alienated me, Bobby and a number of other folks in this community. I recommend that you consider changing the way you reply to posts in this community. I am unsure of your intent, but your comments do not come across as being very nice.
Don
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Posted 07/31/2021   12:25 pm  Show Profile Bookmark this reply Add GMC89 to your friends list  Get a Link to this Reply
I tend to agree with you Mr Cjpalermo. Having said that this is a strange investing time. Who would have thought NFT's would fly? I tend to think that one who is not worried about return, think GameStop, AMC, and many many stocks that are trading at fantastic margins might be the same person to "invest" here.
Benjamin Graham wrote to "beware of the new thing" , think IPO, or perhaps a one cent Magenta.
"Great thing about the future....it arrives one day at a time. " Lincoln
We will see.
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Posted 07/31/2021   1:00 pm  Show Profile Bookmark this reply Add rismoney to your friends list  Get a Link to this Reply
Ok, I apologize. I will provide context into Stanley Gibbons "investments" most of which is old news.

Feigenbaum - this guy was Chairman. Yes they parted ways obviously but this company has a very poor history peddling investments.


https://www.antiquestradegazette.co...inistration/

people should be warned about this type of investment, in the same wwy the cartel still operates on eBay.

My intent was for informing the community around the recent media hype of the "Magenta" and the marketing that is coming forth.

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Posted 07/31/2021   1:06 pm  Show Profile Check 51studebaker's eBay Listings Bookmark this reply Add 51studebaker to your friends list  Get a Link to this Reply
No worries. I think many folks will agree that SG history is in play as is the nature of this kind of investment.
Don
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Posted 07/31/2021   1:54 pm  Show Profile Bookmark this reply Add rogdcam to your friends list  Get a Link to this Reply
This excerpt is from SG's last published Financial Report. Given the statements and the balance sheet (link in post above) it is puzzling, at least to me, why all of the financial eggs were dumped into the 7,000,000 Pound Magenta basket.


Quote:
Funding & Cash Flow

As at the balance sheet date the Group had cash balances of 2.5m and a loan of 14.3m repayable in March 2023, provided there is no event of default in the meantime. This loan is due to Phoenix S. G. Limited, the Group's controlling shareholder. The Group has headroom of 2m remaining on this facility. Net cash inflows from operating activities for the six months ended 30 September 2020 were 0.2m (2019: 0.5m outflow). This was achieved despite the impact COVID-19 had on our revenues. The Group has benefited from property rates being waived for 2020 (0.1m), UK government schemes (VAT and furlough - 0.1m), a delay in pension contributions (0.2m), waiving of interest cost (0.2m) and non-payment of US rent (0.2m). Other savings have been identified in operating costs and have been actioned by the Group's management. Some of the savings identified are due to unwind during January to March 2021. Since 30 September 2020 the Group has completed a 0.9m transaction of older inventory to a trade buyer. The deal was on commercial terms consistent with other bulk transactions of old inventory but generated a small loss. As at 20 November 2020 the Group had net cash balances of 2.2m and 2m of headroom remaining on the facility.

Going Concern

The Group's forecasts show that it will remain within current loan facility limits, although it will draw down the remaining 2m headroom, for the foreseeable future. Although the Directors have built the forecast based on current trading trends, including the impact of the COVID-19 pandemic, and historical knowledge of the business, the Directors recognise that forecasts are dependent on the underlying assumptions and that trading conditions can always be affected by unforeseen events. The COVID-19 pandemic has increased the uncertainty of the assumptions that the Directors use to forecast future liquidity. The pandemic has impacted consumer confidence in the wider economy, which has directly led to a fall in the Group's revenue and impacted other areas of the Groups operations. The Group's forecast indicates that the remaining 2m facility will be drawn down in the next 12 months. The Directors have mitigating courses of actions which are available to them to limit the impact of the pandemic including operating cost initiatives, the faster sell down of Group's large inventory holding, discussing options with long term creditors of the business and approaching lenders for further short term funding. The loan facilities are provided by the Group's controlling party Phoenix S. G. Limited and are due for repayment in March 2023. The Group would have been in default of the financial covenants at 31 March 2020, which would result in the loan becoming payable on demand. On 27 March 2020 the Group sought and was granted a waiver from Phoenix S.G. Limited for the default. The forecast, taking into account of the implications on the Group's demand of the COVID-19 pandemic, shows the Group will fail to meet its financial covenants in March 2021. The Directors recognise that Phoenix S. G. Limited had granted the waiver of the default at 31 March 2020, stated that it intends to be a long term investor, is the Group's controlling party with an interest of just over 58%, granted a waiver of interest for the period April to July 2020, and has given no current indication that it would withdraw its support before March 2023 when the loan facility is repayable. As such, having regard to the matters above, and after making reasonable enquiries and taking account of uncertainties discussed above, the Directors have a reasonable expectation that the Company and the Group have access to adequate resources to continue operations and to meet its liabilities, as and when they fall due, for the foreseeable future. For that reason, they continue to adopt the going concern basis in the preparation of the accounts.

Outlook

Regular readers of our report will be aware of the overarching goals of the Group and our approach to achieving these is unchanged. I have also talked before about the challenge of providing any definitive outlook for this type of business and this has, for obvious reasons become even more difficult. However, with the benefit of a prudent approach to costs, some significant sales of old inventory at fair, as opposed to fire sale prices and the aforementioned efforts of everybody at the Group, a few months ago we challenged ourselves to aim for a whole financial year without needing to draw down further on our debt facility. While there is still a lot of work to do and more battles to be won, I believe that we are on course to achieve this. This would be the first time in several years where we would be able to say that we had neither increased borrowing or heavily discounted some of our best inventory, while also continuing to invest in the future rather than diminishing our long-term prospects. There are many moving parts to this, some of which may not recur, and we may well need to draw down further on our debt facility in the subsequent year; however, it would undoubtedly be indicative of the progress being made if we are able to achieve this. Part of the desire to keep pushing forward includes an appreciation of our financial position and as one would expect our focus on costs includes those associated with our largest liabilities. We proactively and constructively engaged with all our major, non-trade creditors at the start of the crisis and are thankful for the support we received. Just like the crisis, these discussions continue and we are hopeful of making further, significant, progress on all fronts. We have been disrupted and we have been bloodied by the impact of COVID-19 but we have come out fighting and fought hard, continuing to make progress and keeping our sights on our longer term ambitions. To all shareholders, suppliers, customers and colleagues, I hope you remain healthy and wish you the best for what will undoubtedly be an unusual festive season. I look forward to reporting to you further in future, hopefully with the global pandemic well behind us.
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Posted 07/31/2021   1:57 pm  Show Profile Bookmark this reply Add cjpalermo1964 to your friends list  Get a Link to this Reply
Moreover, the special webpage they've posted says clearly that they will screen and approve all "investors", no doubt looking for the close equivalent of a US "qualified" investor. SG has a valuable brand and reputation, plenty of earnest employees and no interest in getting sued, so I fully expect that a lot of inquiries will be declined especially those looking to pay less than about 100,000 pounds/dollars. I would guess the bare minimum to qualify would be a well-established SG customer offering $10,000 or even $25,000. People not known to SG likely will have to top $25K by quite a lot and provide brokerage or financial advisor references or even a personal financial statement. And they also need to limit the number of people who can come knocking on the vault at 399 Strand every year. But this is guessing. Time will tell as they roll out the details; I joined their e-mailing list.
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Posted 07/31/2021   3:03 pm  Show Profile Bookmark this reply Add GMC89 to your friends list  Get a Link to this Reply
My guess is that 10k would be too much to monetize this stamp. AMC was able to issue 100 million in additional stock based on the meme trade. My guess is that to truly monetize this stamp SG will have to reach in to the American retail market, where European dollars have been flowing searching for yield. With the 10 year treasury -+ 1.5 % ( less than inflation) this is the best time for SG to try this.
Not for me. But it might fly.
Time will tell as Mr cjpalermo stated.
Additional thought, SG might require a certified check, for a "qualified buyer"
Cheers
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Edited by GMC89 - 07/31/2021 3:06 pm
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Posted 07/31/2021   9:19 pm  Show Profile Check eyeonwall's eBay Listings Bookmark this reply Add eyeonwall to your friends list  Get a Link to this Reply
"SG is taking a turn at making an investment out of a hobby it appears.In my opinion."

They have been pushing stamps as an investment for years.
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