China has the potential to double and triple the best of CLCT's past earnings.
China advises their people to buy gold. CLCT, 5/8/13, "... with the increased production of gold and silver modern coins from the US and other mints around the world; we are optimistic about our prospects throughout calendar 2013."
My low for this qtr was 21c and yours was 25c -- you win!
Like you, I can't wait to see Short's run to cover.
I found the answer in their Nov 2012 CC for the last question. There is much difficulty getting coins from the mainland to HK, hence the need for the mainland office. So I guess Shanghai will do mainland China and HK will do rest of Asia. If the volumes are sufficient, I am fine with that. It also gives the company the ability to keep profits overseas and avoid paying the 40% tax in the US.
again, thank you
Just went by the CLCT Hong Kong branch and have the following to report:
-Branch has 3 fully time staff
-Open for about half a year and, in that time, coin flow has gone from 1k/month to about 3k/month with that number continuing to expand rapidly. Low end estimate was upper 3's-mid 4's next month
-Coins are mailed from the branch to the states, no grading or certification takes place at the branch
-Branch is not yet profitable (from what I gathered) but it is right in the center of where it needs to be. Canton Rd in TST is where all the money is spent
-Shanghai branch is needed due to the difficulty of getting coins out of China, at DB mentioned
-Not sure if the opening of the Shanghai branch would take volume away from the HK branch
-Markets in India and Japan are "growing rapidly" and there seemed to be CLCT reps in those countries working with the right people to secure those markets. When asked if they would open branches there, the rep didn't know.
-Bulk of current coins flowing through HK branch are coming in from Japan and Singapore with some from China preferring to mail out via Hong Kong
-They don't actually do the mailing, there is a secure shipper next to them that takes care of the shipment to CLCT in the states. Coins are then shipped back to HK and the owner collects at the branch
-I didn't have a tour of the office, but it was tidy, upscale looking and the folks I talked to all spoke fluent English. They said CLCT is a great company to work for.
Sentiment: Strong Buy