Wall Street Journal Article on Comics & Pressing - Sept 23, 2005

[Red Hook]

Hope you guys don't mind if I make reference to the content of the article.......

 

Bang! Pow! Cash!

 

September 23, 2005

 

Bang! Pow! Cash!

 

By CONOR DOUGHERTY

Staff Reporter of THE WALL STREET JOURNAL

September 23, 2005; Page W1

 

To raise $50,000 to help start his San Francisco law firm, Scott Bonagofsky parted with some of his most valuable possessions: early issues of "The Amazing Spider-Man" and "Fantastic Four" comic books. "It was better than I did in the stock market over the last five years," he says.

 

Prices of comic books are going up, up ... and away! [terrible writing - just awful.] A near-perfect "Action Comics" No. 1, the book that launched Superman, lists for $485,000, up from $200,000 five years ago. Heritage Galleries & Auctioneers in Dallas sold a "Marvel Comics" No. 1 -- the debut of the Human Torch character -- for $172,500, an auction record. Since moving into the segment in 2001, Heritage has seen comic books rise to account for $15 million in annual sales.

 

As the market for these comics has expanded, it has created a niche for companies that rate comics -- which, in turn, has helped shore up collector confidence and boost prices further. At a time when many sales are made over the Internet, this has made it more difficult to sell restored comics as untouched, giving the segment more accountability. [more difficult to detect, but far from impossible.]

 

The primary grading outfit is Comics Guaranty LLC, or CGC, a five-year-old company in Sarasota, Fla. CGC charges collectors $15 to $1,000 to rate a comic on a scale of 0.5, a ratty version, to 10, a pristine copy. Latex-gloved inspectors work in a temperature- and humidity-controlled room, assessing damage and checking for signs of restoration, such as new staples or color touch-ups. The comic is sealed in a clear plastic case with a label indicating its official grade. (Books that have been restored are given a purple label -- collectors call it the "purple label of death" -- which can severely reduce prices.) [soon to disappear.]

 

Dents and Creases

 

While collectors generally applaud the rating standards, some resent that steep price increases have attracted investors to a field once limited to collectors drawn to the art and stories. Another complaint is that collectors [He meant to say "many dealers"] are seeking higher grades [and huge profits] by putting their comics through a heat and pressure process, called "pressing," that smooths dents and minor creases from a comic's cover. Some collectors [that are even aware of the existance of it.....] consider pressing a form of restoration, similar to adding color or fixing a page tear. These critics say there's nothing wrong with fixing up comics, as long as it's flagged before a sale.

 

CGC does not indicate on its ratings when comics have been pressed. Steven Borock, CGC's president and primary grader, says that's because it's impossible to tell whether a comic has been professionally pressed (as opposed to, say, stored under a stack of encyclopedias). And unlike replacing staples or using markers to disguise creases, he says, pressing does not change the comic's composition. "When you're buying a used car, do you say to the guy, 'Hey, did you wash this?' " says Mr. Borock. [poor allusion - if Steve was even quoted accurately - used cars usually go for deep discount, and I'd compare pressing more to the removal of body damage to a car - and never mentioning it to a prospective buyer.]

 

But because pressed comics can get higher grades -- potentially adding thousands of dollars to the most expensive comics' values -- critics say CGC's policy encourages sellers to press comics without disclosing it to buyers. Sparking further controversy: A company with some of the same owners as CGC, in the same Saratoga building, [and headed by CGC's former restoration expert - hard to believe they could not report that fact...] is launching its own restoration service, including pressing. Some collectors say the development has the potential to lead to more pressed comics and less transparency about each comic's life span. "To me, that is a conflict of interest," says Brent Moeshlin, owner of Quality Comix, a comic-book dealer in Montgomery, Ala.

 

Scott Schechter, marketing director for Certified Collectibles Group, an umbrella organization under which CGC and other collectibles ratings and preservation companies operate, say each company is set up as an independent entity to avoid conflicts. "The graders don't know whose books they're grading," he says.

 

Some collectors are touting "press free zone" on their Web sites, and even some pressers are taking a stand. Susan Cicconi, owner of Restoration Lab, a comic-book restorer in the Boston area, says she stopped pressing comics -- at $75 to $250 each -- when she suspected that some of her clients were selling comics without disclosing the process. "It was a ton of revenue for me, but I just really felt it was unethical," she says. [Huzzah.]

 

 

Pretty unimpressive reporting, I'd say.

[tth2]

I made the opening paragraph of a story in the WSJ without even trying. How much effort do you dedicate to your media whoring?

 

Yea, but who had to sell their comic books to start their own law firm rather than use their law firm profits to buy comic books? Nyah, nyah.

BURN!!!!

 

Mark 1, Scott 0.

[tth2]

Pretty unimpressive reporting, I'd say.

Geez, tough crowd. It's a mainstream newspaper article, Brad. The fact that they didn't completely [embarrassing lack of self control] up everything is enough for me. And the fact that your digs are mostly on subtle nuances speaks as to the quality of the reporting here.

[chromium]

 

Pretty unimpressive reporting, I'd say.

 

I do like the fact that the board-invented acronym PLOD first became a commonly used word in the "hobby" and is now creeping into "the real world"

 

 

 

Bang! Pow! Cash!

 

 

*SIGH*.... an article without a quote or semi-quote from the 60's Batman TV series would be such a breath of fresh air for once

[Zonker]

I do like the fact that the board-invented acronym PLOD first became a commonly used word in the "hobby" and is now creeping into "the real world"

 

 

 

 

 

Is this the 1st app / origin of PLOD?

 

Or does the Gregster take the honors for the first correct wording (maybe aardvark88's usage was the 'prototype'?)

 

Or does this post by Old Guy get the nod for the first use of the acronym?

 

Board historians will want to know.

[FlyingDonut]

You all realize, of course, that this means it is clearly time to sell.

 

Nice article, btw. Clearly the writer knows what he's talking about. I wonder where the writer got the idea for the placement.

 

And, just as an aside, once again, it points out the screaming, crying need for a PR professional for CGC. Steve, please contact me, I can give you the names of 20 top notch PR people who can work with the company to get this sort of placement and control your spin.

[joe_collector]

(in regard to pressing) "When you're buying a used car, do you say to the guy, 'Hey, did you wash this?' " says Mr. Borock.

 

Someone call Guiness, Steve just made the Worst Comparison Ever!

[joe_collector]

You all realize, of course, that this means it is clearly time to sell.

 

Good catch, and once you start seeing mainstream articles on "comic book investment" in major media outlets, the cat is out of the bag and it's time to get ready for the long ride down.

[Norrin_Radd]

You all realize, of course, that this means it is clearly time to sell.

 

Good catch, and once you start seeing mainstream articles on "comic book investment" in major media outlets, the cat is out of the bag and it's time to get ready for the long ride down.

 

Looking forward to it.

How long before Hulk 1 is back down below $500 in VG, Joe?

[Forbush-Man]

You all realize, of course, that this means it is clearly time to sell.

 

Good catch, and once you start seeing mainstream articles on "comic book investment" in major media outlets, the cat is out of the bag and it's time to get ready for the long ride down.

 

J.C.,

 

There've been articles about "comic books as investment" for years, at least since the early 70's. This is nothing new. That's one very old cat that wiggled his old bones out of that bag!

[Ringfinger]

Sweet!

[joe_collector]

There've been articles about "comic books as investment" for years, at least since the early 70's. This is nothing new. That's one very old cat that wiggled his old bones out of that bag!

 

With each boom, and inevitable bust, in the comic book market, it also brings with it various trends or sign posts that the good times are coming to an end, and the fad is over.

 

Here's a few:

 

1) Mainstream articles in large publications covering the investment aspect of comic books.

 

2) OS and other monthly publications full of BUY BUY BUY notices, with any selling taking a back seat.

 

3) Guys on the street know comics are hot, and family members and friends start asking about your collection or for advice.

 

There are many others, but it's the same with any speculative fad like this; it has to come to an end someday, as nothing based on investment or speculation goes up forever, with no dips or potholes in the road.

 

That end comes when even your Grandmother knows what an Action #1 is worth now (or walks in looking to invest in Death of Superman/Valiants, or asking about Fish Police).

[joe_collector]

There've been articles about "comic books as investment" for years

 

Funny, I don't remember any in the mid-80's during the Independant melt-down, or in the mid-90's after the business almost dropped out of existence... In fact, it was like comic books dropped off the map, and these bozos moved onto something else.

 

Strange how these "invest in comics" puff articles only pop up when speculation drives back issue prices into the stratosphere.. very strange indeed.

[delekkerste]

To raise $50,000 to help start his San Francisco law firm, Scott Bonagofsky parted with some of his most valuable possessions: early issues of "The Amazing Spider-Man" and "Fantastic Four" comic books. "It was better than I did in the stock market over the last five years," he says.

 

If your stock portfolio couldn't beat the comic market over the past 5 years with the numerous sectors (homebuilders, specialty retail, basic materials, energy, etc.) that have had triple-digit returns during that time (didn't you score with MVL and LGF? ), all I can say is that it's a good thing you're starting a law firm and not a hedge fund.

 

Congrats on the new firm, though!

[Forbush-Man]

With each boom, and inevitable bust, in the comic book market, it also brings with it various trends or sign posts that the good times are coming to an end, and the fad is over.

 

Here's a few:

 

1) Mainstream articles in large publications covering the investment aspect of comic books.

 

There's been those type of articles for years.

 

2) OS and other monthly publications full of BUY BUY BUY notices, with any selling taking a back seat.

 

Look in your past OPG's, they've had "Big $ for your books" ads for years

 

3) Guys on the street know about it, and family members and friends start asking about your collection or for advice.

 

The guy on the street still doesn't know, or just can't believe, that comic books are worth money. Even today, when someone asks me about comics (knowing I collect) their eyes glaze over when I tell them the values for certain books. Most people have no idea what kind of money changes hands for comics.

 

There are many others, but it's the same with any speculative fad like this; it has to come to an end someday, as nothing based on investment or speculation goes up forever, with no dips or potholes in the road.

 

"All goods things come to an end." That's a given.

 

That end comes when even your Grandmother knows what an Action #1 is worth now.

 

The "Grandmother" you're speaking of will probably be your wife by then.

 

[Foolkiller]

First off, congrats to Scott on the opening of his new firm.

 

But yes, to me I agree with Donut and JC on this one, we are already on the downside of the bell curve and it is time to sell. I've been selling the past year, you've seen Wilson more agressively selling, and Jay Parrino is out already. Is the sky falling? No of course not. Is it going to fall? No. But if you are looking to maximize your profit and want to buy back later, yes, it's the time to do that.

 

To me the WSJ article was ok. No problems. The real issue is that it only really scratched the surface of the problems facing the hobby and the corruption that has long marked dealers and the easy manipulation of comics. That's the real issue. Pressing, while a debate here, is not a mainstream debate. Other forms of restoration of course are. But, you can't cover everything in one article.

 

Ordinarily, I'd think it was cool that comics were in a mainstream newspaper, but really, in the past year there've been a few articles (there was one in a local Jersey paper called the Star Ledger) and here and there. But I have to agree -- you start seeing stuff like this, and you sort of know, the gravy train might be coming to halt.

[joe_collector]

1) Mainstream articles in large publications covering the investment aspect of comic books.

 

There's been those type of articles for years.

 

Could you please find me some from around 1995 to 1998, expounding the "investment benefits" of comic books? Remember, at that time, HG comics were an insane investment opportunity, so there HAD to be tons of WSJ articles, right?

 

Post some links.

[FlamingCarrot]

From the tone of the WSJ writer, it sounds like he's a forumite!

[joe_collector]

From the tone of the WSJ writer, it sounds like he's a forumite!

 

Oh yeah, this guy obviously knows ESQ and FFB personally, otherwise they wouldn't be in the article. It's an online puff piece, so you can get away with stuff like that.

[Foolkiller]

It's in the hard copy. What do you mean "online puff piece"?