RallyRd - that old idea about partial ownership of comics is a reality (updated July 21, 2021) 6 6

[SuperBird]

On 1/30/2021 at 8:36 AM, Gatsby77 said:

Comiclink’s 7.5 copy of Star Wars # 1 ($.35) sold last night for $6,300.

Pretty sure that doesn’t equate to a 9.0 being worth $30,000+.

The last sale in a grade close to 9.0 was a 9.4 for $27,000, back in 2018, so I would wager a 9.0 would clear $30k in this market. 

[silverseeker]

Being someone who recently dipped his toe into the RallyRd pool after reading about it here, I thought I'd share my first end-to-end experience.

Back in March I decided to invest in their X-Men #1 CGC 9.4 that was offered at $20 a share (the book was valued at $240K), figuring the book would only increase in value with all the craziness in the market...

Fast forward three months, and the book was bought out at $304K, resulting in a payout of $25.21 a share.

I know that X-Men #1 is a bit of an anomaly in today's market, but a 25% return over three months was a pretty nice introduction to fractional ownership of a book.

I've seen other books drop in value when subsequent trading windows opened, so this may be a rare "win"...

[Gatsby77]

2 hours ago, SuperBird said:

The last sale in a grade close to 9.0 was a 9.4 for $27,000, back in 2018, so I would wager a 9.0 would clear $30k in this market. 

I stand by my previous assessment that a 9.0's not worth $30k.

And 9.0s aren't 9.4s.

Let's assume that 9.4 that sold for $27,000 has tripled in price since 2018, which makes it now worth $81,000.

9.2s are typically worth 1/2 the 9.4s, and 9.0s are typically worth 1/2 the 9.2s. So the 9.0 would be worth 1/4 the 9.4 price.

$81,000 / 4 = $20,250, still a far cry from $30,000+.

But wait! We don't have to guess.

GPA shows a CGC 9.0 sold a year ago for $9,600 and again in November for $10,750. I could buy that it's doubled in the 8 months since - to $21,500 - but not nearly tripled, which would (again) put it at that $30,000 mark.

More importantly, that $30,000 valuation itself was back in January-just two months after the sub-$11,000 sale.

I haven't checked the SEC filings, but I wouldn't be surprised if RallyRd. itself was the November buyer at $10,750.

[Sweet Lou 14]

2 hours ago, silverseeker said:

Being someone who recently dipped his toe into the RallyRd pool after reading about it here, I thought I'd share my first end-to-end experience.

Back in March I decided to invest in their X-Men #1 CGC 9.4 that was offered at $20 a share (the book was valued at $240K), figuring the book would only increase in value with all the craziness in the market...

Fast forward three months, and the book was bought out at $304K, resulting in a payout of $25.21 a share.

I know that X-Men #1 is a bit of an anomaly in today's market, but a 25% return over three months was a pretty nice introduction to fractional ownership of a book.

I've seen other books drop in value when subsequent trading windows opened, so this may be a rare "win"...

Thanks very much for sharing this!

If you don't mind my asking, have you received any (professional) tax advice on whether that $5.21 per share differential will be treated as a capital gain, ordinary income, or some other way?

[silverseeker]

Just now, Sweet Lou 14 said:

Thanks very much for sharing this!

If you don't mind my asking, have you received any (professional) tax advice on whether that $5.21 per share differential will be treated as a capital gain, ordinary income, or some other way?

Hey Lou, I have not yet looked into the tax implications of this transaction...I only bought 10 shares for a total of $200 and netted $52.10 profit from them, so my tax impact should be minimal. 

[Sweet Lou 14]

3 minutes ago, silverseeker said:

Hey Lou, I have not yet looked into the tax implications of this transaction...I only bought 10 shares for a total of $200 and netted $52.10 profit from them, so my tax impact should be minimal. 

Hahaha thanks!

[silverseeker]

Just now, Sweet Lou 14 said:

Hahaha thanks!

Sure! I treated it more like a gamble than an investment, not knowing how things would play out...

[Motor City Rob]

My first experience was similar to @silverseeker. Bought a bunch of shares of X-Men #1 and made a 25% profit when it sold. The only disappointment for me was that I voted to NOT sell the asset, but unfortunately 53% were in favor of the sale. Nice to have money, but I see way more growth in that book. I have no idea if the voting process is legit. 

I have invested in a few more assets as well, so we will see how it goes from here.

[VintageComics]

On 6/30/2021 at 12:29 PM, Pickie said:

Fractional Ownership offered for

British Guiana 1c magenta

"Stanley Gibbons are looking to democratise access to the most elite club in collecting history and offer fractional ownership of the rarest and most valuable stamp in the world."

https://www.1c-magenta.com/?gclid=CjwKCAjwrPCGBhALEiwAUl9X04CgHnEiOmpZo88eDEvoMuV5TycY5BczRh9MOwR5YGWKgJv1iD1xNxoC7lUQAvD_BwE 

 

I have dreamed about owning the Black on Magenta stamp since I was a kid in grade school in the late 1970's / early 1980's. Wow.

[HighVoltage]

9 minutes ago, VintageComics said:

I have dreamed about owning the Black on Magenta stamp since I was a kid in grade school in the late 1970's / early 1980's. Wow.

You can now own 1-cent of the 1-cent stamp!!!

[VintageComics]

2 minutes ago, HighVoltage said:

You can now own 1-cent of the 1-cent stamp!!!

Socialist!

I want it all or nothing!

[valiantman]

One year later...

Edited July 21, 2021 by valiantman

[Gman65NJ]

On 7/21/2021 at 11:50 AM, valiantman said:

One year later...

Nice job capturing that.  Amazing flurry of exits recently. Were nice returns but now need to find new places to redeploy. Just got in on the Avengers 57 9.8

[vheflin]

On 7/21/2021 at 11:50 AM, valiantman said:

One year later...

Why do they sell them so fast?

Only one of those was held over a year and barely at that.

[VintageComics]

On 7/21/2021 at 1:06 PM, vheflin said:

Why do they sell them so fast?

Only one of those was held over a year and barely at that.

Churn and burn, baby!

[vheflin]

On 7/21/2021 at 1:23 PM, VintageComics said:

Churn and burn, baby!

yeah, they're like firefighters

[Bronty]

On 7/21/2021 at 1:06 PM, vheflin said:

Why do they sell them so fast?

Only one of those was held over a year and barely at that.

I believe its up to the owners to vote on it.

[WolverineX]

Less then a year, is short term capital gains.  fail. 

[WolverineX]

Btw, isn't this the same thing as OTIS

 

https://www.withotis.com/

[valiantman]

On 7/21/2021 at 3:08 PM, Wolverinex said:

Btw, isn't this the same thing as OTIS

 

https://www.withotis.com/

When I was checking these companies out a year ago, OTIS had no trading.  Your shares were "locked in" until they sold the whole asset.  RallyRd has trading for individual shares.