After reading the recent update it seems that it is their vast overhang of stock that is the worry.
If we were to take SG as a bell-wether for the stamp dealing business, what exactly are we being told?
Is it the case that stamp collecting is falling out of fashion, now being overtaken by other ephemerae collectables, such as postcards which are still rising in price, or is it more of a case that the majority of the stamps that they hold are of a category that is for the moment out of fashion - or what?
With the share price falling 10% in one day, realistically just what else can the board do to turn the situation, other than keep on trying to conjure up some very heavy sales?
There is in fact a very good case for stamp collecting, perhaps it is time for Gibbons to start a campaign to encourage people to do so. A few years ago they ran a huge campaign which was coming from the angle of stamps being an alternative investment. Perhaps they need to re-start this and at the same time start to encourage younger people to begin collecting, this by putting together an educational programme that they can then take into schools. This last action may not produce instant results but over the longer term it will most certainly help re-build what is beginning to look like a dying hobby.
I don't know of any young person who has any interest whatsoever in philately, probably most of them are completely unaware of the possibility anyway.
This is not just the fault of Gibbons, it is a failure by the whole industry to market itself. If there is a trade body then they need to start acting, if there is not then such an entity needs to be founded and to have a clear remit, that is to promote stamp collecting as a hobby.
high volume today and very oversold on the charts. Despite the negative updates this is still the world leader in this sector. Tom Winnifrith is also very positive on the stock. http:/views/15664/tom-winnifrith-bearcast-12-october-daniel-dunkley-of-the-sunday-times-is-a-****** At the very least this should see a gap close to 142p and momentum may drive it higher. Definitely a good day to buy. GLA
CD1 you may be right, but IMO this was a well run company whose management have been distracted by a badly implemented IT project. How many times have we seen or read of similar cases? The problem of fixing a broken IT project is notoriously difficult. New IT bodies will always claim their alternative way is the better way, but expensive. I have dipped in & out of SGI, & currently out. But if we hear +ive comments on the way forward, then I intend to seize the day, so to speak.
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