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Collectors Universe Inc. Message Board

  • dbtunr dbtunr Apr 10, 2013 1:28 PM Flag

    what if business top tax rate was lowered?

    Lowering of the top business tax rate of 35% to say 25% would have a huge impact on CLCT. It would add about $1 to every coin (about $2M/yr) and 50c to every card (about $800K/yr). That's about 35c/yr in cash free and clear or enough for 1 quarters dividends.

    Conclusion: lowering of top business tax rate would have a huge impact on CLCT free cash flow

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    • "Lowering of the top business tax rate of 35% to say 25% would have a huge impact on CLCT."

      Let's be real, CLCT's tax will go up -- not down. Soon they'll start paying Calif taxes. And Calif like the Fed is one big hungry gorilla.

      The stock market closed at a high today, but not CLCT. CLCT closed at $11.75. There were 15 days this year when CLCT stock closed higher than it did today. CLCT's closing high this year was back on 3/20/13 at $12.08.

      Stock Date
      11.85 4/01/13
      11.77 3/28/13
      11.77 3/27/13
      12.07 3/26/13
      12.01 3/25/13
      12.06 3/22/13
      11.92 3/21/13
      12.08 3/20/13
      12.00 2/12/13
      11.89 2/11/13
      11.81 2/07/13
      12.01 2/06/13
      11.98 2/05/13
      11.94 2/01/13
      12.03 1/31/13

      The only huge impact on CLCT that's real is very evident to anyone who watches the stock price. What's evident is that CLCT is a good stock for anyone who's a ground hugger and not an astronaut. Some people like to keep their feet firmly on earth. LOL

      In this stock market it's hard to find stocks like CLCT that aren't in outer space on their way to the moon. A lot of stocks will crash land very hard, it's the law of averages, but that's not a big issue for CLCT.

      • 1 Reply to a3leafclover
      • I disagree. Generally, the larger companies pay much lower tax rates than 35% due to loopholes. Some even pay in the single digits. Maybe this is why CLCT has opened 3 off shore divisions. CLCT has almost no deductions. They are paying a tax rate just over 40%. A 10% reduction in federal tax rates would have a huge and immediate positive effect and would flow right to the bottom line.

    • taken directly from the Presidents budget proposal:

      For this reason, the President is calling on the Congress to immediately begin work on corporate
      tax reform that will close loopholes, lower the corporate tax rate, encourage investment here at
      home, and not add a dime to the deficit.

      • 1 Reply to dbtunr
      • "tax reform that will close loopholes, lower the corporate tax rate, encourage investment here "

        By close loopholes they mean increase the effective/real corporate tax rate. By lower the corporate tax rate, they mean lower the stated corporate tax rate while increasing the effective/overall tax rate by closing loopholes. By encourage investment here, they mean discourage/prohibit investment abroad.

        Tax reform is an oxymoron. You can't have tax and reform. Tax will always be a change for the worse.

        Remember, It takes a lot of bananas to feed a growing two hundred pound gorilla. The government is growing, and it has already grown to more than trillions of pounds. Do you really believe tax reform means less bananas?

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