Just a quick note on Stanley Gibbons International (SGI) a small £100m or so market capitalisation stock. It deals in collectibles like stamps, coins and medals etc. It acquired Noble Investments last year which is a similar business and it is currently integrating this. Allied to this they have also changed their reporting year end, sometimes a red flag that muddies the waters and makes comparisons difficult.
I bought this originally as I couldn't bring myself to buy stamps for their investment value. However, given all the quantitative easing and money sloshing around the system I figured others would be looking for alternative assets like stamps, coins and art etc. So I thought I would tap into this trend via this one.
This has worked well and the shares have re-rated and gone up nicely ahead of the market. They no longer look such good value (like many stocks) on around 20x earnings and now a sub 2% yield, so another red mark in my book. What made me reach for the sell button was the announcement on 22/1/14 that top directors had exercised options and sold a reasonable slug of them. Now I know that these type of sales are not as informative as a crowd of directors buying together but given the rating, where the market is at I thought I would follow them out and redeploy the capital into something more attractive in terms of valuation and yield.