Big Change At Collectors Universe

Hall seemed kinda outta touch with reality in his market updates he used to do. Surprised it took this long to show him the door. Oh well....it's business!

Italics are mine, "Termination" is corporate speak for fired, and a word only the board of directors can use. Usually we see retirement instead, something is rotten at Collectors Universe I believe. The profits have been down for a few quarters in the coin division, all profits have been coming from sports cards and autograph authentication and grading.

It will be interesting to see how this plays out. What about NGC or ANACS now? What will this do for dealer submissions to PCGS? Lots of unanswered question at the moment. The stock price has been moving up a few ticks today, overall the past year it's not looked good.

Regardless, David Hall was a visionary and a leader in the numismatics business. I know he had a major health issue last year, I hope it works out for him.

Below is from CoinWeek on Hall's termination:

Hall's departure is the latest in a string of high profile personnel changes at Collectors Universe. Earlier this year, the company saw PCGS Vice President Mark Stephenson, PCGS CoinFacts President Ron Guth, and PCGS founder John Dannreuther leave.

2018 has been a difficult year for the Newport Beach grading service. In February, Collectors Universe stock lost more than 30% of its value after dividends were cut from $0.35 per share to $0.175 per share.

The company's most recent quarterly report, showed a 4.6% decline of revenue over last year, with the coin division accounting for most of the decline. The company's revenues were buttressed this year by an 18% increase in revenue from its sports card and autograph divisions.

The weak coin numbers are reflective of the weakness of the current market, which in recent years has suffered headwinds, especially in its modern divisions. Despite these numbers, the overall financial picture of Collectors Universe's appears to be solid.

As news circulated around the numismatic hobby, dealers and industry insiders expressed a sense of shock.

Hall has been a very public face for the PCGS and Collectors Universe brand and its hard to imagine the company without him.

For years, Hall's Rare Coin Market Report videos were a staple on the company's YouTube channel and he would often meet with collectors and fans, holding "Meet the Expert" sessions at the Long Beach Expo.

CoinWeek reached out to David Hall and found him to be in good spirits, despite the news. "The Collectors Universe press release is correct," Hall said, "And I expect PCGS to continue to do the great job that it has done over the years."

An explanation as to what happened at the company to necessitate the termination was not forthcoming from Hall or from Collectors Universe CFO Joe Wallace, who told CoinWeek that Collectors Universe is grateful for the "immense contribution made by David Hall over the course of his career," but as Hall's termination is a personnel matter, Wallace said, "we cannot further."

Hall told CoinWeek that he still retains a seat on the board and that in the hours after the news reports, he got a lot of calls and a lot of job offers. What's next for Hall is a return to the business he started more than forty years ago, David Hall Rare Coins, where he will be joined by his longtime friend, business associate, and fellow PCGS co-founder Van Simmons.

"I told Van it was going to be David and Van again," Hall told CoinWeek.