Mmehdy Posted October 25, 2017 Share Posted October 25, 2017 With Beckett's acquiring the "other company" in a stock merger, what is the next step for CGC and how with that impact us GA collectors who must depend of their expert advice as to whether a book has been repaired...or something like that. GA collectors need a grading service, especially with current prices what they are. When the "Other Guy" started I predicted that they would either merge or CGC would buy them out and do a stock merger( 60% cgc/40% other guy) etc. Now that they have upped their game and added tremendous capital to the their operation, look for expansion/faster service CGC cannot afford to stay in its position . What about CGC....here is my prediction, actually a few. 1-CGC is bought by HA.com They could do it and write a check, it would be a change of dynamic for them , but they save $$ with in house grading of every book put at auction, their website expertise would help CGC out, and it could lead to more purchases and of course Ha makes the big bucks on coins, a natural for a merger. 2-CGC is bought by Steve Geppi Big tax write off, cool merger with the "comic book price guide", possibly liking all comic shops to the CGC as grading stations, a lot of possibilities here with this one. 3-CGC and Beckett and "the other guy" still merge The most likely here, really this is how business works, buying market share...look for a 65/35 stock split with CGC on top. But since they both operate in Florida they could consolidate operations for higher profits. Folks the future is exciting ...stay tuned..what are you thoughts????? Link to comment Share on other sites More sharing options...
Popular Post entalmighty1 Posted October 25, 2017 Popular Post Share Posted October 25, 2017 Seems like an auction house owning a grading service might be a slight (read: huge) conflict of interest, but that's just me. Old Fashion PB and J, DarkKnightReturns, Mr. Lady Luck and 2 others 5 Link to comment Share on other sites More sharing options...
Old Fashion PB and J Posted October 25, 2017 Share Posted October 25, 2017 I'm going option 4, CGC continues their business as usual mantra and possibly increases grading fees 10% for no real reason. Seriously, name the last big change CGC made. LOC Collectibles 1 Link to comment Share on other sites More sharing options...
sfcityduck Posted October 25, 2017 Share Posted October 25, 2017 (edited) Mitch, CGC is the tail on the dog that is the Certified Collectibles Group LLC -- CGC's parent. CCG is chaired and managed by Mark Salzberg, and he is much more of a coin guy than a comic guy. NGC, one of the coin arms of CCG, has locations not only in Sarasota, Florida, but also Zurich, Switzerland; Munich, Germany; Guangzhou and Shanghai, China; Hong Kong; Seoul, Korea; Singapore; and Taipei, Taiwan. NGC has graded over 30 million coins. In short, I suspect that CCG views SB's comic grading company as competition for CGC, but competition which is essentially immaterial to CCG's overall bottom line. There appears to be no shortage of work for either company. CGC is overwhelmed with turnaround times lengthening. So I'm not sure why CCG should be concerned. Edited October 25, 2017 by sfcityduck path4play 1 Link to comment Share on other sites More sharing options...
comicquant Posted October 25, 2017 Share Posted October 25, 2017 Selling to Beckett was more of a necessity and less of a strategic plan. They simply couldn't survive without capital injection. It will be interesting to see where Beckett goes with this but they will be cautious as the marketshare is decidedly one-sided; hence the sale. On top of this CGC's parent, CCG, is a behemoth compared to Beckett so them buying CGC is highly unlikely. I'd say business as usual for certain for CGC. It will be interesting to see if Beckett is able to breathe life into their new acquisition. They've got quite a chore ahead of them. thedude 1 Link to comment Share on other sites More sharing options...
lou_fine Posted October 25, 2017 Share Posted October 25, 2017 11 hours ago, Mmehdy said: 1-CGC is bought by HA.com 3 hours ago, entalmighty1 said: Seems like an auction house owning a grading service might be a slight (read: huge) conflict of interest, but that's just me. If I remember correctly, isn't there already an indirect or minority ownership relationship between the 2 companies? Larryw7 1 Link to comment Share on other sites More sharing options...
entalmighty1 Posted October 25, 2017 Share Posted October 25, 2017 40 minutes ago, lou_fine said: If I remember correctly, isn't there already an indirect or minority ownership relationship between the 2 companies? If that's the case, I won't be buying graded books from Heritage again. Link to comment Share on other sites More sharing options...
Sqeggs Posted October 25, 2017 Share Posted October 25, 2017 1 hour ago, comicquant said: Selling to Beckett was more of a necessity and less of a strategic plan. They simply couldn't survive without capital injection. It will be interesting to see where Beckett goes with this but they will be cautious as the marketshare is decidedly one-sided; hence the sale. On top of this CGC's parent, CCG, is a behemoth compared to Beckett so them buying CGC is highly unlikely. I'd say business as usual for certain for CGC. It will be interesting to see if Beckett is able to breathe life into their new acquisition. They've got quite a chore ahead of them. I think you're right. Their failure even to make the minor outlays necessary to start a census or fix their train wreck of a chat board made me think that money was very tight. comicquant 1 Link to comment Share on other sites More sharing options...
Sqeggs Posted October 25, 2017 Share Posted October 25, 2017 1 hour ago, lou_fine said: If I remember correctly, isn't there already an indirect or minority ownership relationship between the 2 companies? I assume that Jim Halperin is still part owner of CGC. So in that sense Heritage does have a minority ownership of CGC. Larryw7 1 Link to comment Share on other sites More sharing options...
Bronty Posted October 25, 2017 Share Posted October 25, 2017 (edited) 17 minutes ago, Sqeggs said: I assume that Jim Halperin is still part owner of CGC. So in that sense Heritage does have a minority ownership of CGC. Steve Ivy is as well. CGC = HA, guys, always has been Edited October 25, 2017 by Bronty path4play 1 Link to comment Share on other sites More sharing options...
lou_fine Posted October 25, 2017 Share Posted October 25, 2017 18 minutes ago, Bronty said: 36 minutes ago, Sqeggs said: I assume that Jim Halperin is still part owner of CGC. So in that sense Heritage does have a minority ownership of CGC. Steve Ivy is as well. CGC = HA, guys, always has been Yes, nothing new at all and the reason why there were screams of potential conflict of interest right from the get go. Similar to the screams of conflict of interest when CCG brought out CCS and included them under their umbrella of companies. Link to comment Share on other sites More sharing options...
___ Posted October 25, 2017 Share Posted October 25, 2017 crazy news, IMO only good for the hobby. Sports cards has had PSA & BGS for years, Coins have had NGC & PCGS for years. I would be good for the hobby to have a 2nd major player. Link to comment Share on other sites More sharing options...
Mr bla bla Posted October 25, 2017 Share Posted October 25, 2017 2 hours ago, Sqeggs said: I assume that Jim Halperin is still part owner of CGC. So in that sense Heritage does have a minority ownership of CGC. I Got burned once on a BIG cgc book purchased from Heritage. A clearly overgraded 9.0. Just sayin ... Link to comment Share on other sites More sharing options...
telerites Posted October 25, 2017 Share Posted October 25, 2017 54 minutes ago, Mr bla bla said: I Got burned once on a BIG cgc book purchased from Heritage. A clearly overgraded 9.0. Just sayin ... Not trying to be critical with my question but are you saying HA was at fault for not suggesting the CGC grade did not meet your expectation of a 9.0 or that you did not agree with CGC's 9.0 grade when you received the book or that HA and CGC are in some clandestine partnership to sell overgraded slabs? Or something else? Was the book a consignment perhaps from a private party? Again just trying to understand and apologies for my apparent denseness and am not trying to defend HA, CGC, consignor, etc. - it just got curiosity piqued. Link to comment Share on other sites More sharing options...
bronze johnny Posted October 26, 2017 Share Posted October 26, 2017 18 hours ago, Mmehdy said: With Beckett's acquiring the "other company" in a stock merger, what is the next step for CGC and how with that impact us GA collectors who must depend of their expert advice as to whether a book has been repaired...or something like that. GA collectors need a grading service, especially with current prices what they are. When the "Other Guy" started I predicted that they would either merge or CGC would buy them out and do a stock merger( 60% cgc/40% other guy) etc. Now that they have upped their game and added tremendous capital to the their operation, look for expansion/faster service CGC cannot afford to stay in its position . What about CGC....here is my prediction, actually a few. 1-CGC is bought by HA.com They could do it and write a check, it would be a change of dynamic for them , but they save $$ with in house grading of every book put at auction, their website expertise would help CGC out, and it could lead to more purchases and of course Ha makes the big bucks on coins, a natural for a merger. 2-CGC is bought by Steve Geppi Big tax write off, cool merger with the "comic book price guide", possibly liking all comic shops to the CGC as grading stations, a lot of possibilities here with this one. 3-CGC and Beckett and "the other guy" still merge The most likely here, really this is how business works, buying market share...look for a 65/35 stock split with CGC on top. But since they both operate in Florida they could consolidate operations for higher profits. Folks the future is exciting ...stay tuned..what are you thoughts????? Isn't CGC already owned by the same company that also owns the established and respectable SGC (sports card grading company) that's been competing with Beckett for many years? The real question is whether the other company will introduce a BCCG type grading model to comics? We got a taste of that from the other company when they introduced a version of no frills grading that did not include a restoration check. Link to comment Share on other sites More sharing options...
Sqeggs Posted October 26, 2017 Share Posted October 26, 2017 1 minute ago, bronze johnny said: Isn't CGC already owned by the same company that also owns the established and respectable SGC (sports card grading company) that's been competing with Beckett for many years? The real question is whether the other company will introduce a BCCG type grading model to comics? We got a taste of that from the other company when they introduced a version of no frills grading that did not include a restoration check. I forgot about that. I wonder if it generated much business? I'm thinking that it didn't. Link to comment Share on other sites More sharing options...
Mmehdy Posted October 26, 2017 Author Share Posted October 26, 2017 There has to be some long term goals here for the merger....this is not small potato's here...I not saying 2018 but market share...it make sense to have one operation cost effective wise and price control.. Link to comment Share on other sites More sharing options...
bronze johnny Posted October 26, 2017 Share Posted October 26, 2017 (edited) 16 minutes ago, Sqeggs said: I forgot about that. I wonder if it generated much business? I'm thinking that it didn't. It didn't but one thing to keep in mind is that Beckett has a few grading models in the world of sports cards and I wouldn't be surprised to see something similar happen here. The BCCG model has been very successful for Beckett so let's see if they try it. SGC (CGC's counterpart in sports cards) has successfully held its own against PSA and Beckett so I'm not sure what the OP's cause for alarm is? Edited October 26, 2017 by bronze johnny Link to comment Share on other sites More sharing options...
lou_fine Posted October 26, 2017 Share Posted October 26, 2017 12 minutes ago, bronze johnny said: The BCCG model has been very successful for Beckett so let's see if they try it. Since I don't follow the sports card market, what exactly is this BCCG model and how would it apply to the comic book market? Link to comment Share on other sites More sharing options...
bronze johnny Posted October 26, 2017 Share Posted October 26, 2017 1 minute ago, lou_fine said: Since I don't follow the sports card market, what exactly is this BCCG model and how would it apply to the comic book market? CGC's parent company has had a stake in the sports card collecting market for some time. Beckett, however, is a company that has different grading models within it. CGC's competitor already attempted to apply something similar to Beckett's BCCG grading model. Whether Beckett applies a BCCG model in the comic book market is the question that should be looked at because the result could have an impact on the comic book market, for better? or worse? I'm not going to make a prediction. Here's some info on BCCG: http://www.freedomcardboard.com/forum/showthread.php/19999-What-is-BCCG-grading-service-and-why-use-it Link to comment Share on other sites More sharing options...
