• When you click on links to various merchants on this site and make a purchase, this can result in this site earning a commission. Affiliate programs and affiliations include, but are not limited to, the eBay Partner Network.

Any thoughts on Rally Rd?
1 1

Started by Chicago Boy,

128 posts in this topic

Kryptic1

Kryptic1

Posted
Posted
On 3/11/2022 at 5:03 PM, batman_fan said:

As long as the market is moving up things will be okay but when people start seeing the value of their portfolio dropping is when the S hits the F.  I am a bit surprised they are doing NFTs given how volatile that market is and how easily it could tank the reputation of their company.

I was very surprised they went into NFTs too, and for the same reason.  Everything they brought to market before that was an established collectible that has shown the ability to maintain value over time.  I don’t think we’re all going to be looking back a decade from now wishing we had paid $500k for a link to a picture of a monkey that looks like it was drawn by an untalented toddler.  There has clearly been a lot of demand for them from Rally users, but even when you give people what they want some of them will still blame you when it goes badly.

Link to comment
Share on other sites
Kryptic1

Kryptic1

Posted
Posted
On 3/11/2022 at 4:57 PM, lou_fine said:

Well, if they paid $67K for the Silver Surfer 4, then this must have been the copy that was auctioned off on CL for $67K back near the end of August.  (thumbsu

So, unlike the Larson Bat 1 in which they brought a 80% interest from the Goldin winner, this Silver Surfer 4 was brought directly from the CL auction.  Looks like the spread between their purchase price and their subsequent IPO offering price was more than enough to cover all of the admin and legal fees that would have been required to registered the book.  

Do you remember the purchase price for the TMNT 1 and the subsequent IPO offer price because if I remember correctly, the spread was a lot tighter and I simply couldn't figure out how they could cover the admin and legal fees with such a narrow margin on the spread?  Or were those first few books done at a loss in order to promote this new buy and sell concept at the time back then?  hm   (shrug)

The TMNT 1 IPO price was $65k.  I don’t remember seeing what the purchase price was, but it was probably around $60k.  They were adding tiny markups early on as they were growing the user base.  They were definitely losing money back then and I wouldn’t be surprised if they still are.  They raised more venture capital money last year and it seems like they’re still prioritizing growth over profitability.

Link to comment
Share on other sites
lou_fine

lou_fine

Posted
Posted
On 3/9/2022 at 1:33 PM, Kryptic1 said:

Rally bought 80% of the Larson 8.0 for $1.34M from the person who won the auction in September.  The previous owner retained the other 20% so they will own 20% of the shares if Rally can fill the IPO.  They sometimes buy directly from auctions, so I don’t know why they didn’t do that here.  They often make terrible buying decisions which explains a lot of the poor performance after IPO.

Any idea who the previous owner or Goldin winner of this Larson Bat 1 book was, since I assume this information would be disclosed on the Rally Road Purchase Option Agreement?  ???

Just wondering if it was a private collector at the "retail" level since it seems most of their books are sourced directly from the auction houses or from established comic book dealers.  If the former, then this would be a good sign since it provides a new avenue (i.e. beyond the auction houses or "wholesaling" to dealers) for boardies and long time collectors to sell their vintage collectible comic books.  Even if this is the case, no doubt the books would have to have a recognizable character or title with premium quality and value attached to them since the customer base which you will be offering your book to will be the Rally customer base who might not have the same deep knowledge about comic books as the regular comic book collectors who tend to buy from the auction houses and major dealers. hm   

Link to comment
Share on other sites
lou_fine

lou_fine

Posted
Posted (edited)
On 3/11/2022 at 2:35 PM, Kryptic1 said:

They were adding tiny markups early on as they were growing the user base.  They were definitely losing money back then and I wouldn’t be surprised if they still are.

Clearly the case with perfect examples being some of the following:

1)  CGC 5.0 graded copy of Cap 3 which they purchased for $35,500 from Metro and then offered up for an IPO offer price of only $37,000:

https://www.sec.gov/Archives/edgar/data/1768126/000176812620000004/rseaex6z54.htm

2)  CGC 9.0 graded copy of Superman which they purchased for $7,000 from Metro and then offered up for an IPO offer price of only $8,500: and 

https://www.sec.gov/Archives/edgar/data/1768126/000176812620000004/rseaex6z55.htm

3)  CGC 8.0 graded copy of Incredible Hulk 1 which they purchased for $87,000 from Ken Goldin and then offered up for an IPO offer price of only $89,000:

https://www.sec.gov/Archives/edgar/data/1768126/000176812620000002/rseex6z41.htm

Definitely losing money  back then as that kind of narrow margin spread would certainly not be able to cover all of their associated costs like registration, marketing, storage, insurance, and any other ancillary legal or admin expenses.  As we can see with the Larson copy of Batman 1 and CGC 9.8 graded copy of Silver Surfer 4, the margin spreads between the purchase price and their IPO offer price are certainly a lot larger to hopefully be able to cover all of these expenses.  (thumbsu

 

Edited by lou_fine
Link to comment
Share on other sites
lou_fine

lou_fine

Posted
Posted
On 3/9/2022 at 1:33 PM, Kryptic1 said:

Rally bought 80% of the Larson 8.0 for $1.34M from the person who won the auction in September.  The previous owner retained the other 20% so they will own 20% of the shares if Rally can fill the IPO.

Any idea if they managed to sell the remaining 80% of the IPO shares for the Larson copy of Batman 1 at the market cap of $1.8M?  ???

If not, is Rally on the hook themselves to cover the unsold shares or do they return all of the IPO money to the investors?  ???  ???

Link to comment
Share on other sites
Kryptic1

Kryptic1

Posted
Posted
On 4/27/2022 at 12:19 AM, lou_fine said:

Any idea if they managed to sell the remaining 80% of the IPO shares for the Larson copy of Batman 1 at the market cap of $1.8M?  ???

If not, is Rally on the hook themselves to cover the unsold shares or do they return all of the IPO money to the investors?  ???  ???

They still haven’t opened it up to the general public.  The original time frame they gave was mid-March, and we’re now over a month past that with no update.  They have given some users early access and they have sold 49% of it so far, which includes the 20% retained by the prior owner and whatever % Rally bought for themselves.  It’s tough to say whether 49% is good or bad since I don’t know what % of users have early access, but they have been giving away free promo shares and the limit for what each person can buy is high, so that doesn’t suggest they are confident they can fill it.  That’s the most likely reason for the delay but they have also pulled back on IPOs lately.  They used to offer a new one every weekday and they’ve cut back to three per week and they have been lower cost items.  I’m guessing it’s because their market has been performing poorly and they’re hoping that cutting back on IPOs will cause people to put more money in the assets already trading.

If they can’t fill the IPO, they have the option of returning everyone’s money and selling the book or buying up the remaining shares themselves.  Lately they have been buying the remaining shares of anything that doesn’t fill.

Link to comment
Share on other sites
Randall Dowling

Randall Dowling

Posted
Posted

"Dan, it's Shel Levine!  Yeah, we spoke last May, I called you, I was in town for my estate in Rio Rancho... Arizona.  Yeah, oh, I wish we could've gotten together at that time.  Danny, that piece of property I had for you has increased in value... Grace, grace, what was that figure?  $76,000!  Oh Danny, I wish you could've been in on it with me!"

Link to comment
Share on other sites
Point Five

Point Five

Posted
Posted
On 4/28/2022 at 12:21 AM, Randall Dowling said:

"Dan, it's Shel Levine!  Yeah, we spoke last May, I called you, I was in town for my estate in Rio Rancho... Arizona.  Yeah, oh, I wish we could've gotten together at that time.  Danny, that piece of property I had for you has increased in value... Grace, grace, what was that figure?  $76,000!  Oh Danny, I wish you could've been in on it with me!"

"I gave you three leads--"
"The CGC boardies? THE CGC BOARDIES? F**k you. F**king CGC handed these guys a million dollars, told them 'sign the deal!', they wouldn't sign."

 

Link to comment
Share on other sites
lou_fine

lou_fine

Posted
Posted
On 4/27/2022 at 4:33 PM, Kryptic1 said:

They still haven’t opened it up to the general public.  The original time frame they gave was mid-March, and we’re now over a month past that with no update.  They have given some users early access and they have sold 49% of it so far, which includes the 20% retained by the prior owner and whatever % Rally bought for themselves.  It’s tough to say whether 49% is good or bad since I don’t know what % of users have early access, but they have been giving away free promo shares and the limit for what each person can buy is high, so that doesn’t suggest they are confident they can fill it.  

If they can’t fill the IPO, they have the option of returning everyone’s money and selling the book or buying up the remaining shares themselves.  Lately they have been buying the remaining shares of anything that doesn’t fill.

With the volatile and uncertain global economic situation out there right now, I believe they are kind of caught between a rock and a hard place with this Larson copy of Bat 1 at this current point in time.  hm

I see it as a rather tough sell with a market cap set at $1.8M and possibly even harder to sell it complete on its own in a regular auction format and be able to make money on it since it was purchased at a price point of $1.47M dollars.  (shrug)

Link to comment
Share on other sites
Sal

Sal

Posted
Posted
On 4/28/2022 at 12:21 AM, Randall Dowling said:

"Dan, it's Shel Levine!  Yeah, we spoke last May, I called you, I was in town for my estate in Rio Rancho... Arizona.  Yeah, oh, I wish we could've gotten together at that time.  Danny, that piece of property I had for you has increased in value... Grace, grace, what was that figure?  $76,000!  Oh Danny, I wish you could've been in on it with me!"

The Machine!!!1!

Link to comment
Share on other sites
ThothAmon

ThothAmon

Posted
Posted
On 4/29/2022 at 3:55 PM, lou_fine said:

With the volatile and uncertain global economic situation out there right now, I believe they are kind of caught between a rock and a hard place with this Larson copy of Bat 1 at this current point in time.  hm

I see it as a rather tough sell with a market cap set at $1.8M and possibly even harder to sell it complete on its own in a regular auction format and be able to make money on it since it was purchased at a price point of $1.47M dollars.  (shrug)

Any updates on Rally Rd?

Link to comment
Share on other sites
lou_fine

lou_fine

Posted
Posted
On 7/27/2022 at 12:45 PM, ThothAmon said:

Any updates on Rally Rd?

Yes, have they sold all of the allotted shares for their Larson copy of Batman 1 or have they withdrawn that offering after all this time?  ???  :taptaptap:

Link to comment
Share on other sites
Point Five

Point Five

Posted
Posted
On 7/28/2022 at 3:21 PM, batman_fan said:

News on them has been quiet for a while.  Are they still actively buying comics or have they slowed a bit?

There's a Rom #1 they've got their eye on.  :wishluck:

 

Link to comment
Share on other sites
Cat-Man_America

Cat-Man_America

Posted
Posted
On 7/28/2022 at 2:21 PM, batman_fan said:

News on them has been quiet for a while.  Are they still actively buying comics or have they slowed a bit?

Might've heard this wrong, but I understand that they're taking on new investment partners for the ultra rare All Crickets #1.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
1 1
Go to topic listing