Can investing and collecting go hand-in-hand? Yes -- especially if you are collecting coins, stock certificates, bank notes, or other rare items of value. Larry Schutts, an expert in investment-related collectibles, will periodically review items of interest from his collection and answer your questions here.

In the summer of 1862, the rising costs of the Civil War prompted the U.S. Congress to enact a broad new tax program. The Revenue Act of 1862 created the office of the Commissioner of Internal Revenue and introduced Americans to their first progressive rate income tax. The Act also required that taxes be paid on documented business transactions and on the sale of certain proprietary retail goods. In order to prove payment, citizens and businesses bought government-issued revenue stamps and applied them to their documents and merchandise. On the documentary side, the inconvenience of dealing with stamps led many to order such paper goods as checks and stock certificates with government-approved stamp designs already printed on them. Retailers, on the other hand, quickly saw the advertising possibilities and were ultimately granted permission to obtain stamps bearing their own private labels.

Continue reading Collectible Investments: U.S. patent medicine tax stamps

Collectible Investments: U.S. patent medicine tax stamps originally appeared on BloggingStocks on Wed, 09 Sep 2009 16:40:00 EST. Please see our terms for use of feeds.

Can investing and collecting go hand-in-hand? Yes -- especially if you are collecting coins, stock certificates, bank notes, or other rare items of value. Larry Schutts, an expert in investment-related collectibles, will periodically review items of interest from his collection and answer your questions here.

The automobile has had a profound influence on the evolution of American culture. Our freedom to move from place to place in private vehicles is a primary factor in determining where we live, the way we work, and how we socialize. The development of the automotive industry followed the usual pattern. Initial efforts were privately funded, but subsequent improvements touched every aspect of the manufacturing process and ultimately required more sophisticated levels of financing. That led to a wide variety of corporate stock offerings. The old certificates are generally available at reasonable prices and are particular collector favorites. The appreciation levels associated with many of them makes them popular with the investment crowd, too. Compare twelve-year price gains of the specimens discussed below with advances in the Dow Jones Industrial Average (+10%) and the S&P 500 Index (+2%) over the same period.

Continue reading Collectible Investments: U.S. auto stock certificates

Collectible Investments: U.S. auto stock certificates originally appeared on BloggingStocks on Mon, 20 Jul 2009 18:00:00 EST. Please see our terms for use of feeds.

Can investing and collecting go hand-in-hand? Yes -- especially if you are collecting coins, stock certificates, bank notes, or other rare items of value. Larry Schutts, an expert in investment-related collectibles, will periodically review items of interest from his collection and answer your questions here.

Every December, I send each of my brothers a package of Christmas gifts for the family. The boxes contain the usual assortment of presents one sends to sisters-in-law, nephews and nieces, but my brothers always get the new American Eagle Silver Proof dollar. The U.S. Mint has issued the coins every year since 1986 and I have been sending them just that long. It has been some time since the boys have been able to express any surprise about their gifts, but I have always told them to be of good cheer. Those silver dollars, I have said with emotional certainty, are bound to be worth rather more one day. Well, I got to thinking about that promise recently and I thought I would look at the prices folks are getting for the coins nowadays to see whether I was right.

Continue reading Collectible Investments: American Eagle Silver Proof Dollars

Collectible Investments: American Eagle Silver Proof Dollars originally appeared on BloggingStocks on Mon, 15 Jun 2009 17:40:00 EST. Please see our terms for use of feeds.

Can investing and collecting go hand-in-hand? Yes -- especially if you are collecting coins, stock certificates, bank notes, or other rare items of value. Larry Schutts, an expert in investment-related collectibles, will periodically review items of interest from his collection and answer your questions here.

The development of the mining industry was critical to the economic expansion of twentieth century America. Coal and uranium furnished much of the energy necessary for industrialization. Iron, copper and cement components provided essential building materials. Gold and silver served as monetary bases. Most work in the 1800s involved the removal of near-surface materials, but growing mineral demands sent twentieth century miners deeper. Increasingly complex technologies required higher levels of capital investment and that led to a wide variety of corporate stock offerings. Many of the old mining certificates are reasonably priced and that makes them popular with the "scripophily" (collector) crowd. Decent levels of appreciation are also attracting the investment community. Compare seven-year price gains of the specimens discussed below with advances in the Dow Jones Industrial Average (+16%) and the S&P 500 Index (+16%) since the market lows of 2002.

Continue reading Collectible Investments: Twentieth century U.S. mining stock certificates

Collectible Investments: Twentieth century U.S. mining stock certificates originally appeared on BloggingStocks on Thu, 14 May 2009 18:40:00 EST. Please see our terms for use of feeds.

Can investing and collecting go hand-in-hand? Yes -- especially if you are collecting coins, stock certificates, bank notes, or other rare items of value. Larry Schutts, an expert in investment-related collectibles, will periodically review items of interest from his collection and answer your questions here.

By 1862, rising Civil War costs prompted the U.S. Congress to levy taxes on use of a broad range of public and private documents. Most of the charges were rescinded ten years later, but a two cent tax on bank checks persisted until 1883. Citizens met the banking requirement by purchasing adhesive revenue stamps and applying them to blank areas on the faces of their checks. The law initially excluded transactions valued at less than $20, but Congress soon extended the tax to all sums and that led many businesses and individuals to order checks with government-approved tax stamp designs already printed on them. Fifteen general designs and more than one-hundred individual varieties were ultimately used. An active collector community now keeps high quality revenue stamped checks in demand and many have become solid long-term investments. Compare 30-year price gains of the specimens discussed below with three decade improvements in the Dow Jones Industrial Average (+833%) and the S&P 500 Index (+743%).

Continue reading Collectible Investments: Revenue stamped checks of the Civil War tax period

Collectible Investments: Revenue stamped checks of the Civil War tax period originally appeared on BloggingStocks on Thu, 16 Apr 2009 17:30:00 EST. Please see our terms for use of feeds.

Can investing and collecting go hand-in-hand? Yes -- especially if you are collecting coins, stock certificates, bank notes, or other rare items of value. Larry Schutts, an expert in investment-related collectibles, will review items of interest from his collection and answer your questions here each week.

If you are old enough, you may remember that firms once issued stock certificates to investors as proof of ownership. Electronic trading has nearly rendered the practice obsolete. Old certificates are still in demand, though. A growing collector community actively seeks the certificates of firms no longer in business, and that exerts steady upward pressure on the values of desirable pieces. Investors are noticing, and collectible certificates are now being included in diversified portfolios.

Continue reading Collectible Investments: Early U.S. railroad stock certificates

Collectible Investments: Early U.S. railroad stock certificates originally appeared on BloggingStocks on Mon, 16 Mar 2009 18:10:00 EST. Please see our terms for use of feeds.

Can investing and collecting go hand-in-hand? Yes -- especially if you are collecting coins, stock certificates, bank notes, or other rare items of value. Larry Schutts, an expert in investment-related collectibles, will review items of interest from his collection and answer your questions here each week.

By 1862, the U.S. government was issuing a lot of paper to finance the Civil War. It was also refusing to redeem the currency in coin. That forced banks to follow suit and citizens soon began hoarding their small change. Day-to-day commerce suffered, until Congress authorized the printing of currency notes with denominations of less than one dollar. People had begun using postage stamps in lieu of coins and that prompted the issuance of notes that carried the images of contemporary stamps of equivalent value. Counterfeiting problems led to more elaborate designs, but the initial issue of "Postage Currency" and four subsequent issues of "Fractional Currency" served Americans well for the next 14 years.

Continue reading Collectible Investments: U.S. postal/fractional currency

Collectible Investments: U.S. postal/fractional currency originally appeared on BloggingStocks on Tue, 24 Feb 2009 18:05:00 EST. Please see our terms for use of feeds.

Can investing and collecting go hand-in-hand? Yes -- especially if you are collecting coins, stock certificates, bank notes, or other rare items of value. Larry Schutts, an expert in investment-related collectibles, will review items of interest from his collection and answer your questions here each week.

The widespread issuance of U.S. federal paper money began in the early 1860s. For nearly seventy years, most notes measured about 7-3/8 by 3-1/8 inches. That is a little more generous than the economical 6-1/8 by 2-5/8 inch dimensions in use since 1929 and a succinct collector community refers to the two groups as "large-size" and "small-size" notes.

Continue reading Collectible Investments: Large-size U.S. notes

Collectible Investments: Large-size U.S. notes originally appeared on BloggingStocks on Fri, 06 Feb 2009 17:45:00 EST. Please see our terms for use of feeds.

Can investing and collecting go hand-in-hand? Yes -- especially if you are collecting coins, stock certificates, bank notes, or other rare items of value. Larry Schutts, an expert in investment-related collectibles, will review items of interest from his collection and answer your questions here each week.

When I was in grade school, much of the money I made delivering the morning paper went into my stamp collection. I specialized in U.S. issues.... and what do you know? All those things I was learning about in history class were right there on the stamps, from Columbus and the Capitol Building to the U.S. Presidents and the Pony Express. I was particularly fond of the early air mail issues, because of the old flying machines and emblems they depicted. Many of them were too expensive for me then, but I bought them all about five years ago and thought it might be worthwhile to look at the value of the group as an investment vehicle.

First, some pictures. The set I'm talking about consists of the first fifteen stamps issued by the U.S. postal system specifically for the purpose of funding transport by air.

These are listed as C1 through C15, in the industry standard Scott Catalogue. C1-C3 feature a picture of the Curtiss Jenny and were used for service on a Washington-Philadelphia-New York run that began operation in 1918. The initial rate was 24 cents per ounce, requiring use of the red and blue C3. Over the next few months, that rate was cut to 16 cents and then to 6 cents, allowing for use of the green C2 and then the orange C1. Stamps C4-C6 were issued for transport through three cross-country postal zones established in 1924. The rate was 8 cents per ounce for each zone. The C4 carries a picture of an airplane radiator and propeller. The C5 illustrates the Air Service emblem. The C6 shows a DeHavilland biplane.

Continue reading Collectible Investments: Early U.S. Air Mail Stamps

Collectible Investments: Early U.S. Air Mail Stamps originally appeared on BloggingStocks on Fri, 16 Jan 2009 17:00:00 EST. Please see our terms for use of feeds.

Can investing and collecting go hand-in-hand? Yes -- especially if you are collecting coins, stock certificates, bank notes, or other rare items of value. Larry Schutts, an expert in investment-related collectibles, will review items of interest from his collection and answer your questions here each week.

Notes and warrants associated with the various governments of Texas are among the most popular of all 19th century North American currency collectibles. Between the initial break with Mexico (1835) and the end of the Civil War (1865), the Provisional Government, the Government, the Republic, the State and the Confederate State of Texas each issued a variety of financial instruments and examples are highly prized by an active collector community. Among the more widely sought pieces are the Treasury Warrants of the Confederate years. These were issued pursuant to eleven "Military Service" and ten "Civil Service" post-secession acts of the state legislature. Prices commanded by well preserved specimens are on the rise and that's attracting investor interest.

The first two warrants pictured are colorful, uncirculated notes. The orange dollar bill was a military issue. The yellow note represented a payment on the civil side. The dollar is commonly available in lower grades, but hard to get in uncirculated condition. Ten years ago the piece shown cost about $50. Last year, it went for about $200. The yellow note was one that allowed the state comptroller to issue odd denominations, in this case $79.96. A year ago, I paid $95 for this example. Last month, it sold for $210.

Continue reading Collectible Investments: The Civil War Currency of Texas

Collectible Investments: The Civil War Currency of Texas originally appeared on BloggingStocks on Fri, 02 Jan 2009 18:20:00 EST. Please see our terms for use of feeds.

Can investing and collecting go hand-in-hand? Yes -- especially if you are collecting coins, stock certificates, bank notes, or other rare items of value. Larry Schutts, an expert in investment-related collectibles, will review items of interest from his collection and answer your questions here each week.

During its brief four-year existence, the government of the Confederate States of America issued debt instruments valued at over $800 million. These included a variety of coupon bonds, call certificates, registered bonds, non-taxable certificates and loan agreements. After the military defeat of the Confederacy, much of this paper was lost or simply thrown away, but enough survived to spark the interest of collectors. As we approach the 150th anniversary of the founding of the CSA, that interest is growing.

Far and away, the most commonly issued Confederate debt instrument was the coupon bond. The example shown is an unissued $1000 document, with a full complement of sixty attached coupons. For one's original $1000 investment, one was to receive semi-annual interest payments of $30. These were collected by turning in individually dated coupons clipped from the bottom of the sheet. Then, after thirty years, the top portion of the sheet would be redeemed for the original $1000.

After the war, of course, the Union refused to recognize debts incurred by the rebel government and none of the long-term instruments reached maturity. That left many of the later coupon bonds intact, or nearly so, allowing patient collectors to put together handsome sets of representative varieties. It is estimated that only four to ten specimens of the particular variety pictured have survived. Five years ago, it was a $300 item. Now, the going rate is $700.

Continue reading Collectible investments: Confederate debt

Collectible investments: Confederate debt originally appeared on BloggingStocks on Thu, 18 Dec 2008 16:40:00 EST. Please see our terms for use of feeds.

This post is part of our feature on Money Winners of 2008. See all 20.

At one time or another, we have all dreamed of turning pocket change into millions. A California man actually made it happen last February, though, when he sold a collection of 301 pennies for $10.7 million. Of course, they were not just any pennies. The set contained virtually every variety and subvariety of U.S. cent minted in the classic period between 1793 and 1814. Van Nuys resident Walter J. Husak had been assembling his early coppers for 28 years and estimated that they cost him a little over $5 million. That is a lot for a coin collection, but it ultimately netted him a profit of close to $200,000 per year and that is a return anyone can appreciate.

As with any investment-minded collector, Husak was doubtless torn between the desire to put together a complete collection of early cents and the hope that they would increase in value. He chose the path that usually finds the best equilibrium between aesthetic satisfaction and monetary gain by going high end. He acquired attractive specimens in the most advanced grades possible, very often locating the finest known examples of given varieties. That led to ownership of coins like the 1793 and 1794 "about uncirculated" specimens shown below, which sold for $632,500 each. The pictures are from the Husak Collection catalog, produced by Heritage Auction Galleries.

Continue reading Money winners of 2008: Walter Husak cashes in on rare pennies

Money winners of 2008: Walter Husak cashes in on rare pennies originally appeared on BloggingStocks on Sun, 14 Dec 2008 09:40:00 EST. Please see our terms for use of feeds.

Can investing and collecting go hand-in-hand? Yes -- especially if you are collecting coins, stock certificates, bank notes, or other rare items of value. Larry Schutts, an expert in investment-related collectibles, will review items of interest from his collection and answer your questions here each week.

With the introduction of U.S. postage stamps in 1847 came the requirement that postmasters deface them in a way that would prevent further use. Through most of the rest of the century, regulations about how to accomplish this were rather lax and that led to a wide variety of cancellation styles. The simplest of these were strokes and characters applied by pen, but most local postal officials were more inventive. They carved number, letter, geometric and pictorial displays into the ends of cork bottle stoppers, dipped them into ink and applied "fancy cancels" to their stamps. Later in the period, commercially prepared devices made of wood, rubber and metal became available, but the tendency to use elaborate designs continued and that generated nearly fifty years worth of intriguing postal "art" work.

Clear, well-centered fancy cancel strikes are in constant demand by an active collector base and that gives many types solid investment potential. The "Kicking Mule" of C.A. Klinkner & Company experienced limited west coast use in the 1880s-90, but is highly sought after today. The example pictured is a particularly handsome specimen that cost $160 last year. Last month, it sold for $200. The stylized "Maple Leaf" of Waterbury, Connecticut postmaster John Hill is a relatively rare piece from the 1870s that fetched $50 recently. Last year, it was going for $35. Price points associated with individual pieces also depend on such issues as overall "eye appeal", but well-struck examples of scarcer cancels routinely improve in value by 10% and more per year.

Continue reading Collectible Investments: Fancy cancels

Collectible Investments: Fancy cancels originally appeared on BloggingStocks on Wed, 03 Dec 2008 16:00:00 EST. Please see our terms for use of feeds.

Can investing and collecting go hand-in-hand? Yes -- especially if you are collecting coins, stock certificates, bank notes, or other rare items of value. Larry Schutts, an expert in investment-related collectibles, will review items of interest from his collection and answer your questions here each week.

After the Revolutionary War, paper money issued by the Colonies and the Continental Congress depreciated rapidly in value. Americans lost faith in government currency and for the next eighty years everyday commerce relied heavily on notes issued by a variety of chartered and private banks. Few of these institutions survived into the latter part of the 19th century, but their currencies are actively sought today by an avid collector community. That supports prices year after year and investors are discovering that high grade specimens can be reliable additions to their portfolios.

Consider a pair of notes printed for the New Orleans Canal and Banking Company (ca. 1831-60s). As the scans show, both are in ideal uncirculated condition. The $10 bill features a rendering of a bald eagle. The $1000 note carries a vignette of Prosperity and Liberty seated. Twenty years ago, they sold for $10 and $40, respectively. Two years ago, I bought the specimens pictured for $48 and $160. Earlier this week, I sold them for $70 and $240. The difference in price between the two is a function of rarity. Two to four high grade examples of the $10 note are offered for auction each week. One sees the $1000 note perhaps ten times a year.

Continue reading Collectible Investments: 19th century obsolete U.S. bank notes

Collectible Investments: 19th century obsolete U.S. bank notes originally appeared on BloggingStocks on Wed, 26 Nov 2008 15:21:00 EST. Please see our terms for use of feeds.

Continue reading Collectible Investments: 100-year old $20 gold piece up 65% in past five years

Collectible Investments: 100-year old $20 gold piece up 65% in past five years originally appeared on BloggingStocks on Wed, 19 Nov 2008 19:10:00 EST. Please see our terms for use of feeds.

Ross Stores (NASDAQ: ROST) is a leading U.S. off-price retailer of name brand apparel, accessories, footwear and home fashions. The firm operates 888 Ross Dress for Less stores and 55 dd's Discounts locations, in 27 states and Guam. Target (NYSE: TGT) and Kohl's (NYSE: KSS) are major competitors.

The company pleased investors late last month, when it reported Q2 EPS of 54 cents and revenues of $1.64 billion. Analysts had been expecting 54 cents and $1.61 billion. Management also guided Q3 EPS to 42-44 cents (43 cent consensus) and Q4 EPS to 78-81 cents (80 cent consensus). CL King subsequently reiterated its "strong buy" rating on the shares and the firm was able to report August same store sales that topped the Wall Street view.

Continue reading Ross Stores (ROST): Shares cycle through positive trading channel

Ross Stores (ROST): Shares cycle through positive trading channel originally appeared on BloggingStocks on Thu, 18 Sep 2008 08:42:00 EST. Please see our terms for use of feeds.

Shanda Interactive Entertainment (NASDAQ: SNDA) is a leading interactive entertainment media company in China. The firm offers a diversified content portfolio, including massively multi-player online role-playing games, online board games, network PC games, cartoons, works of literature and music. Shanda's interactive platform attracts a loyal base of users, who pay access subscription fees. Electronic Arts (NASDAQ: ERTS) is a major competitor.

The company pleased investors earlier in the month, when it reported fiscal Q2 EPS of 56 cents and revenues of $122.1 million. Analysts had been looking for 51 cents and $115.3 million. Revenues from massively multiplayer online role-playing games increased 47.0% year-over-year and 8.5% quarter-over-quarter, to a record high of $101.3 million. Oppenheimer subsequently upgraded the stock to "outperform" and Brean Murray reiterated its "buy" rating.

Continue reading Shanda Interactive Entertainment (SNDA): Shares advance in positive trading channel

Shanda Interactive Entertainment (SNDA): Shares advance in positive trading channel originally appeared on BloggingStocks on Wed, 17 Sep 2008 15:00:00 EST. Please see our terms for use of feeds.

K12 Inc. (NYSE: LRN) offers proprietary curriculum, software, and educational services for online delivery to students in kindergarten through 12th grade. Products include online public schools and individualized supplemental programs offered through traditional public schools. The firm also operates the K12 International Academy, a diploma-granting online private school. Courses cover core subjects, such as English, math, science, history and art. K12 serves more than 40,000 students.

The company pleased investors last week, when it reported a fiscal Q4 loss of a penny per share and revenues of $56.5 million. Analysts had been looking for a five cent per share deficit and sales of $47.8 million. Management also said it expected enrollment growth to drive FY09 revenues past $300 million ($283.12M consensus). Argus subsequently reiterated its "buy" rating on the shares and boosted its price target to $33.

Continue reading K12 Inc. (LRN): Shares define bullish 'pennant' consolidation

K12 Inc. (LRN): Shares define bullish 'pennant' consolidation originally appeared on BloggingStocks on Tue, 16 Sep 2008 11:43:00 EST. Please see our terms for use of feeds.

AeroVironment (NASDAQ: AVAV) is engaged in the design, development, and production of unmanned aircraft systems (UAS) and electric energy technologies for various industries and governmental agencies. The company's small aircraft are used by U.S. Department of Defense customers to deliver real-time reconnaissance, surveillance, and target acquisition to tactical operating units. Its electrical products include recharge systems for industrial vehicle batteries and power processing test equipment. Ford Motor (NYSE: F) and Delta Air Lines (NYSE: DAL) are on the company's commercial customer list. Lockheed Martin (NYSE: LMT) is a major competitor.

The firm pleased investors last week, when it reported fiscal Q1 EPS of 22 cents and revenues of $53.6 million. Analysts had been expecting 18 cents and $49.9 million. Management also maintained its FY09 guidance for year over year revenue growth of 20%-25%, with an operating income margin of 12%-14%. The CEO noted, "Winning the All Environment Capable Variant competition with our Puma AE earned us the fourth Department of Defense program of record for small UAS."

Continue reading AeroVironment (AVAV): Stock price defines bullish 'flag' pattern

AeroVironment (AVAV): Stock price defines bullish 'flag' pattern originally appeared on BloggingStocks on Mon, 15 Sep 2008 11:11:00 EST. Please see our terms for use of feeds.

Ulta Salon, Cosmetics & Fragrance (NASDAQ: ULTA) sells cosmetics, fragrances, haircare products, skincare products and related accessories through a chain of 283 specialty retail shops in 34 states. The stores also feature hair salon services, manicures, pedicures, massages, and other beauty and spa treatments. A company website offers over 21,000 prestige and mass beauty products. Macy's (NYSE: M) is a major competitor.

The firm pleased investors last week, when it reported Q2 EPS of six cents, a penny above the average Wall Street estimate. Revenues rose 24.3% (yr/yr) to $249.1 million. The CEO attributed success to the company's proven marketing strategy and the resilience of the beauty retailing category. Management also guided Q3 EPS to 8-10 cents (10 cent consensus), Q3 revenues to $259-$263 million ($258.80M consensus), FY09 EPS to 52-57 cents (54 cent consensus) and FY09 revenues to $1.12-$1.13 billion ($1.13B consensus).

Continue reading Ulta Salon, Cosmetics & Fragrance (ULTA): Price defines bullish 'pennant' pattern

Ulta Salon, Cosmetics & Fragrance (ULTA): Price defines bullish 'pennant' pattern originally appeared on BloggingStocks on Fri, 12 Sep 2008 10:40:00 EST. Please see our terms for use of feeds.