The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
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Is anyone else concerned that they’ve managed to sell a early 50,000 pieces despite it being impossible to make a return on the purchase? I can’t see 50,000 units being sold as a novelty?
Actually as I was typing the above I’ve just noticed the asterisks on the count. If you look at the asterisk next to pieces owned, and the description below, they seem to be counting the pieces that they are retaining for themselves - it turns out they are holding 49% so 39,200 are being kept, therefore only 10,091 have sold, aka £925k (at discount price, and some sold full price) considerably than the £5mil initially thought
49,271 fractions bought so far!
Www.showpiece.com
Huhu, my understanding was they were selling off an initial 10% which was achieved with the first 8,000 [the initial offer] in the first day's trading, and were going to sell the rest in stages over the next years at a self defined timetable - perhaps 10% blocks every few months for example. This would continue until they had sold 51% at which stage they would then stop and focus on other things / NFT's etc.
The point was not to water down the impact of the 1c fractions too much too soon.
I guess the main impact will also come once they establish their exchange to buy and sell the fractions on, where current holders can sell their existing fractions / buy new ones. But since that will not be operational until Spring, my personal view was that sale of further tranches would be limited until Spring at the earliest.
At the end of the day, it looks like a resounding success story for SG at the moment, and I expect it to be heavily featured in the upcoming trading statement due soon for first half 2021.
Fair enough, never the less, this made me wonder:
„ Also in keeping with the concept of democratisation, Stanley Gibbons do not aim to retain a majority stake in the stamp and therefore will make 51% of the pieces in the 1c Magenta available for general sale.“
Since now around 61% have been sold the question still remains
No, 80,000 = 100%
Dear Gents,
Reading the wole thing, Do I understand it correctly that the 80.000 pieces represent only 51% of the stamps value?
Take care and stay healthy
Carp, it looks to me like double bubble time is coming here - after all, if they have sold £5m of the fractions, then they have almost paid off the debt incurred for buying it. Once that happens they split the proceeds 50/50 with Phoenix, and it becomes an ASSET on the balance sheet not a liability.
That will be a massive turnaround accounting wise, and the NAV of SG will rocket.
Hence the shares must move upwards.
Now imagine they do it again with other rare stamps and suddenly the whole thing looks markedly different.
Lastly, add in a general turnaround from things coming back to life again / auctions / exhibitions restarting, and I cannot see how these shares will be 3p for much longer and the first half figures are due later this month. Should make for very interesting reading indeed.
It does seem as though SG has tapped into something here. With all the BG pieces sold, they make around £4m which should help get them out of the hole. Pearls would you post their predicted profit after fees please? Also Phoenix are in for half the profits.
If it works then fractions of a GB plate 77, Tyrian Plum US Inverted Jenny block of 4, who knows. I have taken a punt again on SG shares in the hope this is a success and maybe the way forward for SG.
Big purchase just gone through.....
www.showpiece.com
Excellent progress
Looks like sales are roaring along of the 1c's fractional ownership!
Almost 61% now sold of the whole 80,000 as of this morning.
Well over 50% of pieces sold as of this morning - 48,778 pieces sold, 31,222 to go
It’s a shame the stock exchange allows this.
8622 sold, just 71,378 to go. Let's have a look in a month's time ?
The website is showing 108% of the initial release/early access being sold?? 8,622 pieces bought.
It also appears the 10% discount is still available - possibly to stimulate demand?
I missed the offering unfortunately. I will just need to console myself with ARB being up 10% today.
Carpe, I doubt anyone bought with the aim to make a quick buck - it’ll be nearly impossible to and most ‘investors’ will lose a lot of money - if people have bought to try and make money they obviously haven’t looked at the maths and numbers in enough detail! ??
Carp, it's all extra revenue at the end of the day!
Incidentally, I was curious to note your surprise at how well the initial sale went. What did you expect would happen instead?
The discount is still running and I understand the offer finishes tomorrow.
It remains to be seen how many people bought in the hope of making a buck rather than collectors happy to sit on their fraction for eternity.
Still, credit to SGI, it doesn't matter who buys them....
No, not "100% sold in one day". 100% of 8.000 yes.....but this is just 10% of 80,000. So 72,000 still to sell, and now at no discount ?
From Thisismoney.com:-
"Stanley Gibbons is setting up a trading website where collectors can buy and sell their fractions. It will take a cut of any trades – perhaps as much as 10 per cent – although website dealing might not be possible until spring next year. This initial lack of a secondary market obviously means it is not suitable for those hoping to make a quick profit." 10% commission?
From buyer or seller, or both ? And you need willing buyers who have not been able to get the number of shares which they want in the initial offer ?
100% sold in one day flat!
97% now!