QUEENSBURY, NY / ACCESSWIRE / January 12, 2021 / Dear Collectors Universe Shareholders: Adriondack Retirement Specialists, Inc. ("Adirondack", "our", or "we") is an Registered Investment Adviser shareholder of Collectors Universe ("Collectors", "CLCT", or the "Company"), with ownership of over 271,000 shares representing an approximate 2.9% equity interest in the Company. We believe the recently announced $75.25 per share tender offer, a 3.7% premium to the closing price of Collectors' shares prior to the announcement of the proposed transaction, significantly undervalues the Company. We are fiduciaries of our shareholders in our RIA, and as such we are to put our clients best interest first. Many of our clients are widowed, and ‘blue collar retirees' , and we believe that those attempting to buy the company at $75.25 know that this price undervalues the company. The business has reported, in a post COVID world, record sales , backlog , and an optimistic management forecast going forward. At this price, we have high conviction that shareholders would be better served to see CLCT continue as a public company and proceed with the strategic and technology initiatives that are delivering strong financial results and stock price appreciation. Therefore, we will not be submitting our shares into the tender offer as proposed. Three key considerations lead us to oppose the proposed transaction: [1] We believe recently reported financial results show continued strength along with the forecast. [2] We believe the addition of Ms. Lorraine Bardeen to the board , who serves as VP and Chief Technology Officer of World Wide Enterprise and Commercial Industries at Microsoft, was to head a strategy committee that could bring significant digital revenues, as well as more efficient operations, and could add significant value to the company that has yet to be realized . [3] We have reservations about the Board of Directors' decision to recommend approval of the tender offer, as well as the process used to entertain and evaluate the offer.
We would prefer to own the company as it currently stands, or a much higher offer would be needed to value the company properly.
SPECIAL NOTE REGARDING THIS LETTER:
THIS LETTER CONTAINS OUR CURRENT VIEWS ON THE VALUE OF THE COMPANY'S SECURITIES AND CERTAIN ACTIONS THAT THE COMPANY'S BOARD MAY TAKE TO ENHANCE THE VALUE OF ITS SECURITIES. OUR VIEWS ARE BASED ON OUR OWN ANALYSIS OF PUBLICLY AVAILABLE INFORMATION AND ASSUMPTIONS WE BELIEVE TO BE REASONABLE. THERE CAN BE NO ASSURANCE THAT THE INFORMATION WE CONSIDERED AND ANALYZED IS ACCURATE OR COMPLETE. SIMILARLY, THERE CAN BE NO ASSURANCE THAT OUR ASSUMPTIONS ARE CORRECT. THE COMPANY'S ACTUAL PERFORMANCE AND RESULTS MAY DIFFER MATERIALLY FROM OUR ASSUMPTIONS AND ANALYSIS.
WE HAVE NOT SOUGHT, NOR HAVE WE RECEIVED, PERMISSION FROM ANY THIRD-PARTY TO INCLUDE THEIR INFORMATION IN THIS LETTER. ANY SUCH INFORMATION SHOULD NOT BE VIEWED AS INDICATING THE SUPPORT OF SUCH THIRD PARTY FOR THE VIEWS EXPRESSED HEREIN.
OUR VIEWS AND OUR HOLDINGS COULD CHANGE AT ANY TIME. WE MAY SELL ANY OR ALL OF OUR HOLDINGS OR INCREASE OUR HOLDINGS BY PURCHASING ADDITIONAL SECURITIES. WE MAY TAKE ANY OF THESE OR OTHER ACTIONS REGARDING THE COMPANY WITHOUT UPDATING THIS LETTER OR PROVIDING ANY NOTICE WHATSOEVER OF ANY SUCH CHANGES (EXCEPT AS OTHERWISE REQUIRED BY LAW).
FORWARD-LOOKING STATEMENTS:
Certain statements contained in this letter are forward-looking statements including, but not limited to, statements that are predications of or indicate future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties. Forward-looking statements are not guarantees of future performance or activities and are subject to many risks and uncertainties. Due to such risks and uncertainties, actual events or results or actual performance may differ materially from those reflected or contemplated in such forward-looking statements. Forward-looking statements can be identified by the use of the future tense or other forward-looking words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "should," "may," "will," "objective," "projection," "forecast," "management believes," "continue," "strategy," "position" or the negative of those terms or other variations of them or by comparable terminology.
Important factors that could cause actual results to differ materially from the expectations set forth in this letter include, among other things, the factors identified in the public filings of the Company. Such forward-looking statements should therefore be construed in light of such factors, and we are under no obligation, and expressly disclaim any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Adirondack Retirement Specialists is independent of American Portfolios Financial Services Inc.
**** TAX ADVICE NOTICE ****
To comply with the requirements imposed by the United States Treasury Department, any information regarding any U. S. federal tax matters contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, as advice for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or matter addressed herein or in any attachments.
Securities offered through American Portfolios Financial Services, Inc. , Member FINRA/SIPC Investment advisory services offered through Adirondack Retirement Specialists a SEC Registered Investment Advisor
Adirondack Retirement Specialists is independent of American Portfolios Financial Services Inc.
Contact
Sean Berger
518-761-6184
[email protected]
SOURCE: Adirondack Retirement Specialists