PSA/CLCT to be Bought Out by Nat Turner and Investment Groups

[Thunderdunk]

Thought this was interesting: LINK: PSA To be Bought Out! (https://seekingalpha.com/news/3639964-collectors-universe-takes-700m-buyout-offer)

Collectors Universe (CLCT +3.9%) says it will be bought out by an investor group led by entrepreneur and sports card collector Nat Turner, D1 Capital Partners and Cohen Private Ventures at $75.25 per share in cash.

The company says the transaction represents a premium of approximately 30% over the 60-day volume-weighted average price.

The transaction is not subject to any financing contingency.

[Pollard7]

Wow

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[jcardstore]

PSA being partially owned by a long-term collector seems like a positive for me. We'll see

[bberns]

Wow, this is massive news. I am going to need to reassess my affinity for BGS given my high confidence level in Nat turning things around there.

[DajuanWagner]

About time!!!

Hopefully Nat can hire enough people to start grading and we can get cards back in a decent time frame.


Remember the good ole days when a 2 day was really a 2 day????

[rustywest]

This guy huh... Nat Turner - blowout's fav high roller. The guy who lead by example in buying a trimmed Jordan PMG for a record price from the most unethical business in the industry, PWCC.

Lets hope instead of his own selfish interests he can do something positive for the hobby and clean up the debacle that is PSA grading. Leave a lasting legacy for collectors...

[DajuanWagner]

This guy huh... Nat Turner - blowout's fav high roller. The guy who lead by example in buying a trimmed Jordan PMG for a record price from the most unethical business in the industry, PWCC.

Lets hope instead of his own selfish interests he can do something positive for the hobby and clean up the debacle that is PSA grading. Leave a lasting legacy for collectors...



Wow, so much to unpack in that post. So, are you a fan of Nat??? Sounds like you are a little bitter. Maybe you were just being sarcastic or jealous. Can you name names on who is washing Nat's balls?? Or are you just starting your Monday on the wrong foot???

What legacy are you trying to leave????????

[ClipsandVols]

This guy huh... Nat Turner - blowout's fav high roller. The guy who lead by example in buying a trimmed Jordan PMG for a record price from the most unethical business in the industry, PWCC.

Lets hope instead of his own selfish interests he can do something positive for the hobby and clean up the debacle that is PSA grading. Leave a lasting legacy for collectors...

Since you felt the need to repeat this, I will as well...


People enjoy "washing his balls" because he's an actual collector who shares his experiences with us and treats people with respect. No reason to be a hater just because the guy worked his ass off and made a lot of money.

[This is]

Edited because I want to remain positive and optimisitic

[This is]

This guy huh... Nat Turner - blowout's fav high roller. The guy who lead by example in buying a trimmed Jordan PMG for a record price from the most unethical business in the industry, PWCC.

Lets hope instead of his own selfish interests he can do something positive for the hobby and clean up the debacle that is PSA grading. Leave a lasting legacy for collectors...

Be fair to Nat he bought that card before the trimming scandal blew up.

[ThoseBackPages]

Wow, so much to unpack in that post. So, are you a fan of Nat??? Sounds like you are a little bitter. Maybe you were just being sarcastic or jealous. Can you name names on who is washing Nat's balls?? Or are you just starting your Monday on the wrong foot???

What legacy are you trying to leave????????

he's a slab hater

[ThoseBackPages]

Be fair to Nat he bought that card before the trimming scandal blew up.

its also in an altered slab

[KhalDrogo]

Great news for everyone.

[rustywest]

You guys are so funny/predictable. Sure enough the you are bitter, jealous of somebodies money etc posts ensued. I'm jealous of no man. Completely comfortable as a human. I re-entered the hobby in 2018 and I noticed N.Turner was held in very high regard on these boards. I found it peculiar at and around the time of the various trimming scandals and outing of PWCC as feral as a business can get, that this man picked up his dream card (trimmed and from PWCC) there was very little pushback - nothing to see here right?

Instead of taking a stand as a "high standing member" of the hobby he basically said who cares, its for my collection.

This is just my opinion, it doesn't mean I'm jealous or bitter of anybody. That's it. You shouldn't hate me for that, just relax because people minds work differently. Some of you American's need help :)!

[chandman]

I'd be very curious to see how this plays out. Seems like a conflict of interest in a way. I'm torn, having a collector with the ability to make needed changes would be nice. But he also owns a large collection of PSA slabs and I could see a scenario that could leave a dark cloud over third party grading.

[DajuanWagner]

he's a slab hater



Aren't we all?????? Grading is a scam.........

[ThoseBackPages]

Aren't we all?????? Grading is a scam.........

https://media0.giphy.com/media/3oFzmkkwfOGlzZ0gxi/giphy.gif

[lietuvalabas]

You guys are so funny/predictable. Sure enough the you are bitter, jealous of somebodies money etc posts ensued. I'm jealous of no man. Completely comfortable as a human. I re-entered the hobby in 2018 and I noticed N.Turner was held in very high regard on these boards. I found it peculiar at and around the time of the various trimming scandals and outing of PWCC as feral as a business can get, that this man picked up his dream card (trimmed and from PWCC) there was very little pushback - nothing to see here right?

Instead of taking a stand as a "high standing member" of the hobby he basically said who cares, its for my collection.

This is just my opinion, it doesn't mean I'm jealous or bitter of anybody. That's it. You shouldn't hate me for that, just relax because people minds work differently. Some of you American's need help :)!

But i think he bought it in an altered slab, i mean there are 10 of these, if he could have bought an unaltered one im sure he would have, it sucks that someone would have altered one, but should no one ever own it then? What Nat put together in that green set is mindblowing he needed the jordan, i dont see the issue? Now if he trimmed it, it would be a different story, but, he didnt.

[spurs50fan]

I guess that's a piece to the PSA hype puzzle

3 card monte

[Malsk]

Love it! Bought in at $15 and being bought out at $75. More then one way to make money in this hobby.

[Blake050]

Wasn't Nat Turner already on the CLCT Board of Directors prior to this buyout?

[grade]

Not good. Now it is "grading my own cards" on super steroids.

[CP3toOKC]

You guys do know that Collector's Universe doesn't just have PSA right? Last I knew that the coin market was larger than the card market, but that could've changed this year alone. Also I wonder how the PCGS program is going to be impacted too

[boston12]

Everything aside can you imagine selling a company for 2 billion in your early 30s

[rustywest]

But i think he bought it in an altered slab, i mean there are 10 of these, if he could have bought an unaltered one im sure he would have, it sucks that someone would have altered one, but should no one ever own it then? What Nat put together in that green set is mindblowing he needed the jordan, i dont see the issue? Now if he trimmed it, it would be a different story, but, he didnt.

Right, right, the altered slab. Was that the very slab PWCC disputed grade in the most perplexing fashion?

[lietuvalabas]

Right, right, the altered slab. Was that the very slab PWCC disputed grade in the most perplexing fashion?

yeah but thats them, while i dont agree with it, they're making money based on a percentage of what the card sells for. It's kinda shady, but what are they going to say? "this card has been altered and it kinda sucks but please buy it?"

that card is still the most iconic 90s card there is, again only limited to 10 copies. Nat said he knew where 4 or 5 were with one collector i believe, then there was the one right by me that was pulled about 6 years back, and this one. Thats like 7/10 why wouldnt he buy it altered or not? PWCC is their own entity, their opinion of what PSA did is fruitless.

[Bruin7]

Great news! Always been a supporter of Mr Turner.

[PSA2Pac]

Dope!

Best thing that could have happened to PSA

[kyleuk21]

Wow! Let Nat and his people get this company running better.

[dmanrico]

This is great news. PSA was already distancing itself both in the market and then with many of its operational initiatives it recently started. This is going to take it to new levels. Look out BGS.

[MyckKabongo]

I would have liked a bigger premium for my CLCT shares. Sad I won't be able to hold it moving forward because the future looks bright.

[Promethius88]

You guys do know that Collector's Universe doesn't just have PSA right? Last I knew that the coin market was larger than the card market, but that could've changed this year alone. Also I wonder how the PCGS program is going to be impacted too

PSA has basically been keeping PCGS afloat for some time now from what I recall. The US market was slow and a majority of their coin grading was coming from Asia.
I don't know what percentage of their business comes from outside the card grading area. I'm sure someone else can chime in on that aspect.

[Sushiyoshi]

I would have liked a bigger premium for my CLCT shares. Sad I won't be able to hold it moving forward because the future looks bright.

Maybe it wont get shareholders' approval?

[yimfinity]

Maybe it wont get shareholders' approval?

It's trading for a slightly premium to the offer price, which is in cash, so it looks like people are factoring in a competing bid or higher final offer. A bit odd as the Board has already approved this offer.

[jlawje]

Board has agree to sell their shares at $75 and the company is going private. This is good news. It's easier for privately held companies to take risks and innovate.

Now I'm curious to see what happens to Beckett over the next year. They are just going to fall farther and farther behind. Might see a sale there too.

[ljandkg]

Nat, can we open a PSA office in NZ please?
No covid here, quick turn around times for NZ/Aust collectors....

[Justin7]

Wow. This is huge huge news. PSA was already eating up the market and now with a collector owner its only going to get bigger.

There's actually a lot of negatives to a company being public so PSA going private in general as a rule should benefit collectors overall.

[pejc300]

When I saw that "Cohen Investments" was a part of the deal my first thought was, Dang, Jewcer must be killing it!

[jcardstore]

Board has agree to sell their shares at $75 and the company is going private. This is good news. It's easier for privately held companies to take risks and innovate.

Now I'm curious to see what happens to Beckett over the next year. They are just going to fall farther and farther behind. Might see a sale there too.

Yes and Nat has a track record of success in this area.

People should be happy.

[Jopeal]

This seems like a big positive from my first impression. Hope they revitalize the New Jersey office!

[Spacemanspif]

I would have liked a bigger premium for my CLCT shares. Sad I won't be able to hold it moving forward because the future looks bright.


I agree, what kind of morons did they have negotiating? As a shareholder I’m pissed.

Now, as a collector I get that it has potential to improve my grading experience. But still, a buyout should have been in the $90-100 range. Seriously who looks at this chart and says, “sure give me 3% above yesterday’s closing”?

https://uploads.tapatalk-cdn.com/20201130/a7e9b6172fd09c51eb78c86e706185fa.jpg


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[DStars45]

Just curious for those who know more than I do. Does this create any conflict of interest for Nat moving forward? Will he still be able to submit cards for grading?

[estebahn73]

CLCT's last twelve months EBITDA is $22.7mil, even if you assume that this will double in next 12 months to $45mil, at $700 mil valuation that is still 15.6x EBITDA. That's hefty. I think that's more than fair price for the shareholders.

I don't know Nat personally but I know a senior person who works at Flat Iron Health and I hear nothing but great things about him. I think he would provide efficiency and innovation that would change how we go about grading collectibles. I am excited to see what kinds of disrupting technology and new ideas he will bring to this fast growing market that is still stuck in old legacy system.

[bdrr]

Hear that boys? We’re the industry now.

One of us. One of us. One of us.

[blackbears86]

This is good news!



First order of business for Mr. Turner: Fire joe Orlando!!!!!!!!!!!!!!

[DajuanWagner]

Hear that boys? We’re the industry now.

One of us. One of us. One of us.



Hey, what's up Zack??? Haven't seen you around for a while. Didn't know you were still here. I have seen some Fire on Facebook a few times.

[2010GBPackers]

This is good news!



First order of business for Mr. Turner: Fire joe Orlando!!!!!!!!!!!!!!

Why did it take until the 2nd page for this to be said??!!

Bye, Joe!

[TimBuckTwo]

Wow. BO edited my innoculus comment.

[DajuanWagner]

Wow. BO edited my innoculus comment.



What did you say???

[gomiamigo]

It's trading for a slightly premium to the offer price, which is in cash, so it looks like people are factoring in a competing bid or higher final offer. A bit odd as the Board has already approved this offer.

That's not odd it's totally standard. If you know the price 'can't' go below $X, then the rational value is $X + y. Competing offers can and do happen all the time.

30% over the prior 60-day VWAP is also a totally normal bid that is often accepted. Not always, but often. $CLCT would obviously like to have Nat involved, who wouldn't?

[hairyangryfella]

Nat, can we open a PSA office in NZ please?
No covid here, quick turn around times for NZ/Aust collectors....

Agreed! I need to get my Wilt RC re-holdered and it'll cost me over $500 just to send it away with insurance.

[jrb]

See law firms already looking into possible shareholder lawsuit.


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[ThoseBackPages]

5vXZPztcGaY

[pejc300]

That's not odd it's totally standard. If you know the price 'can't' go below $X, then the rational value is $X + y. Competing offers can and do happen all the time.

30% over the prior 60-day VWAP is also a totally normal bid that is often accepted. Not always, but often. $CLCT would obviously like to have Nat involved, who wouldn't?

Had to look up what this meant. What does CardiB have to do with any of this?

[hauntedcomputer]

Yeah my stock's worth more right now than what they will pay me. I guess the board comes out great, though.

Hopefully they go to using technology for grading instead of minimum-wage factory workers on an hourly quota.

[hawkfandan]

Congrats to Nat & his crew. That must be surreal to be a part of, as a lifelong collector.

I'm sure he's got all sorts of ideas & improvements he's going to look to implement.

I see this as a good thing for the hobby, long term.

[DajuanWagner]

Congrats to Nat & his crew. That must be surreal to be a part of, as a lifelong collector.

I'm sure he's got all sorts of ideas & improvements he's going to look to implement.

I see this as a good thing for the hobby, long term.



I just wonder how much actual improvements he can do. I wonder how his inbox will look once people start bombarding him with questions/concerns/complaints about PSA and favors. Don't forget to ask for favors since he is one of us, amiright? No wonder he never started a thread mentioning his latest pickup (PSA). I bet he didn't want BODA to find out about this. I mean, how would you feel??? I wonder how many "friends" Nat will have since his recent acquisition? It would be like hitting the lottery and then all of the turds come out of the woodwork asking for money. This is no different.................

[Sprewell8]

Congrats Nat. I look forward to seeing what you can do to make PSA better.

[1980bust]

Why did it take until the 2nd page for this to be said??!!

Bye, Joe!

From the press release:

Joseph J. Orlando, President and CEO of Collectors Universe, will continue to lead Collectors Universe, which will retain its headquarters in Santa Ana, California.

[PelicanFly]

From the press release:

Joseph J. Orlando, President and CEO of Collectors Universe, will continue to lead Collectors Universe, which will retain its headquarters in Santa Ana, California.

There will likely be a transition. Give him a year tops.

[ThoseBackPages]

This is Great!

[drobfan8]

I think the sky is the limit. Like someone mentioned, he can go International with PSA..

There would be huge interest in Asia and Australia/NZ and I'm sure Europe..

Let's be real, PSA has some problems, I'm sure Nat wants the company to improve and continue on its trajectory.

[ThoseBackPages]

I think the sky is the limit. Like someone mentioned, he can go International with PSA..

There would be huge interest in Asia and Australia/NZ and I'm sure Europe..

Let's be real, PSA has some problems, I'm sure Nat wants the company to improve and continue on its trajectory.

i agree. Cards are big down in Australia. Time to open up a PSA shop there

[mc1]

I think the sky is the limit. Like someone mentioned, he can go International with PSA..

There would be huge interest in Asia and Australia/NZ and I'm sure Europe..

Let's be real, PSA has some problems, I'm sure Nat wants the company to improve and continue on its trajectory.

Buy out BGS and its game over, man. Game over.

[kingofsnake]

I hope Nat Turner can completely revamp the PSA system so that cards are graded not by people, but by computers, and that they will have new card slabs to reflect this new standard.

Anything less is just putting make-up on a pig. Or shuffling the deck chairs on the Titanic - whichever analogy you prefer.

[kingofsnake]

Double post

[Skeely]

Buy out BGS and its game over, man. Game over.

this scares me. i like psa better than bgs but like having that option for my vintage cards as i prefer it for those. also competition is what pushes progress in businesses or at least attempts too.

[Litwing]

did he work with garyvee together to hype the psa market?

[YeahBuddy]

Just curious for those who know more than I do. Does this create any conflict of interest for Nat moving forward? Will he still be able to submit cards for grading?

depends what is in the terms of service etc. most grading companies say employees can submit stuff for grading. So i suspect he wouldnt send his business elsewhere to a competing company.

I wish their was more transparency tho about this part of the hobby. Like "employee grading subs are sent as like john doe" type scenarios but I suspect they arent and they are fast tracked and likely a perk to their employees.

with the latter, nothing factual on my end... just thoughts.

[smalltown]

I wish their was more transparency tho about this part of the hobby.

They're taking it private. So that pretty much dashes those hopes.

[blackbears86]

From the press release:

Joseph J. Orlando, President and CEO of Collectors Universe, will continue to lead Collectors Universe, which will retain its headquarters in Santa Ana, California.



BOOOOOOOOOOOOOO!


If I was Turner, my guarantee on buying the company would have been to boot his a$$.

[SupermanBrandon]

Computer grading coming soon! BGS might become obsolete, soon after.

[bmf]

congrats to new owners but joe orlando staying on board is not a good sign. #yikes

[heatdawg]

Buy out BGS and its game over, man. Game over.

No need to buy out BGS, they slowly killing their product themselves. I would buy SGC all day over BGS. BGS will take your money, sure, but they have no intention to innovate or grow within the industry.

[RogerGodahell]

Congrats to Nat & his crew. That must be surreal to be a part of, as a lifelong collector.

I'm sure he's got all sorts of ideas & improvements he's going to look to implement.

I see this as a good thing for the hobby, long term.

I just wonder how much actual improvements he can do. I wonder how his inbox will look once people start bombarding him with questions/concerns/complaints about PSA and favors. Don't forget to ask for favors since he is one of us, amiright? No wonder he never started a thread mentioning his latest pickup (PSA). I bet he didn't want BODA to find out about this. I mean, how would you feel??? I wonder how many "friends" Nat will have since his recent acquisition? It would be like hitting the lottery and then all of the turds come out of the woodwork asking for money. This is no different.................

Didn't Nat make a thread on here not too long ago maybe within the past year or so asking about what PSA or grading companies could do better? I feel like i remember that thread from him or it could have been someone else.

Anyway if you're reading Nat..... image database. That is what is needed the most to counter altered cards. Put an image of the card alongside with the pop report of each card graded. That would be a huge improvement.

[mc1]

No need to buy out BGS, they slowly killing their product themselves. I would buy SGC all day over BGS. BGS will take your money, sure, but they have no intention to innovate or grow within the industry.

We talkin about the same SGC?

https://www.blowoutforums.com/showthread.php?t=1422832

PS: the slab, labels and font are ugly as sin

[Inferno]

Please open a Canadian office now k thankssss

[rustywest]

I find it hard to believe PSA would even consider expanding to the countries mentioned.

China on the other hand...

[Digerati]

But will they keep raising the price while taking longer to fulfill orders?
They seem to be able to do that as often as they want and their customers don't seem to complain.
Smart move Nat.

[MyckKabongo]

I received my voting packet yesterday so be on the lookout. It was in an unmarked black poly pag (the same way certain magazines come in the mail, lol).

Nothing against Nat but I am voting NO.

I wouldn't sell my best cards that I feel very bullish about at a steal price. Not doing it here either. The $75 "premium" price offer when the stock had already hit $75 is a joke. Offer $100+ or I'm not even considering a Yes.

Strongly encourage all interested parties to read the Pembroke letter:

https://private.pml.ca/wp-content/up...er-18-2020.pdf

[GeechQuest]

I received my voting packet yesterday so be on the lookout. It was in an unmarked black poly pag (the same way certain magazines come in the mail, lol).

Nothing against Nat but I am voting NO.

I wouldn't sell my best cards that I feel very bullish about at a steal price. Not doing it here either. The $75 "premium" price offer when the stock had already hit $75 is a joke. Offer $100+ or I'm not even considering a Yes.

Strongly encourage all interested parties to read the Pembroke letter:

https://private.pml.ca/wp-content/up...er-18-2020.pdf

Smart man.

I’d prefer Nat’s group be in charge of PSA but if I was a shareholder (I sold off) when the transaction went through I’d be pissed at the price paid.

[tjforce]

I received my voting packet yesterday so be on the lookout. It was in an unmarked black poly pag (the same way certain magazines come in the mail, lol).

Nothing against Nat but I am voting NO.

I wouldn't sell my best cards that I feel very bullish about at a steal price. Not doing it here either. The $75 "premium" price offer when the stock had already hit $75 is a joke. Offer $100+ or I'm not even considering a Yes.

Strongly encourage all interested parties to read the Pembroke letter:

https://private.pml.ca/wp-content/up...er-18-2020.pdf

Smart man.



I’d prefer Nat’s group be in charge of PSA but if I was a shareholder (I sold off) when the transaction went through I’d be pissed at the price paid.

Do you guys think that maybe the run up in price was because it was pretty well known that Nat's group was going to buy the company, and that if he backs out the stock price will drop without a buyer in place?

[MyckKabongo]

Do you guys think that maybe the run up in price was because it was pretty well known that Nat's group was going to buy the company, and that if he backs out the stock price will drop without a buyer in place?

They kept a tight lid on the takeover bid.

It's possible that Nat's group has already been buying shares and that helped contribute to the run up. Its possible they're buying quietly buying right now and may already have enough of the company to clinch the votes.

Most likely, it's the activist effort by Alta Fox that played the biggest role in the stock popping this year. Also, the last couple of quarterly reports were awesome. It's public info that CLCT has raised prices and dramatically expanded operations but still has a huge backlog and cannot meet demand. They essentially already have 2 quarters of monster growth already sitting in their warehouse. This is the stuff small cap investor dreams are made of.

Many of us in the hobby had an up close and personal view of this which is why many of us bought in to $CLCT. There were many non-collectors that couldn't believe their good fortune when they found out about this company's current market position--you can search $CLCT on twitter for some interesting discussions on it.

[PSA2Pac]

Good read on Nat Turners vision with PSA. I hadn't really seen him speak on any specifics yet (maybe I missed it).

https://www.sportscollectorsdaily.com/nat-turner-collectors-universe-psa-grading-plans/

[pejc300]

Nice article.

[Hbkhbk]

I guess if all of his cards are in PSA10 slabs, they will more than pay for this buyout? Smart move on his part ��

[hauntedcomputer]

I guess if all of his cards are in PSA10 slabs, they will more than pay for this buyout? Smart move on his part ��

The conveniently-timed price increase will fund several buyouts.

[pip]

Good read on Nat Turners vision with PSA. I hadn't really seen him speak on any specifics yet (maybe I missed it).

https://www.sportscollectorsdaily.com/nat-turner-collectors-universe-psa-grading-plans/Nat, if you're reading this: Put together a small team of individuals. Collect as many images as you can of cards valued at $1000 and up and put them in an ordered, searchable database. When new cards come in, scan and compare them to all other similar cards in the database. This will eliminate a pretty significant percentage of the fraud and in time, can almost become fully automated.

[PelicanFly]

There will likely be a transition. Give him a year tops.

Called it. :coffee: (https://www.psacard.com/articles/articleview/10466/taking-my-hacks-thank)

[This is]

Nat, if you're reading this: Put together a small team of individuals. Collect as many images as you can of cards valued at $1000 and up and put them in an ordered, searchable database. When new cards come in, scan and compare them to all other similar cards in the database. This will eliminate a pretty significant percentage of the fraud and in time, can almost become fully automated.

Maybe Nat bought the Worthpoint data and is already on top of this. Just a wild guess.