Nonsenseletter #8, The Ocho
presented by SGC Cards gosgc.com
EDITOR'S Note: Today’s newsletter is pretty stacked. There is going to be a bit of a focus on digital this week but I want you anti-digital guys to check these out because there’s some really good info for the physical card market. Please don’t dismiss. Also, last week, I promised an in-depth breakdown of the Luber report. On Monday, after I heard the podcast, I called Jesse and explained that his notes on the report were the exact same as mine. As such, you got the Luber breakdown from the two guys that matter most, Mike and Jesse. There’s not much I can add here other than one point. Luber is dead wrong on one point. He is underestimating the fractional market’s impact on the high-end card and collectible market. Nowadays, and going forward, every Jordan PSA 10 will have pooled money bidders like Rally, Collectible, and the other pooled capital buyers. This should set the market higher at the high-end almost permanently.
With that, this is going to be a newsletter that you’re going to want to come back to a few times this week and make sure you soak it all in. FYI, because apparently this matters, no, Rally isn’t a sponsor. I just love this stuff and you will too.
We need you to join the discord. All you need to do is click the purple box down below.
Then, me Mike and Jesse will be doing a Panini Blockchain 101 Course this week. Mike has already made 400% on his trades so far to fund his PC. Let us teach you.
Rally, Gimmick or Future?
I’ll answer the headline question in the second sentence. Future.
Imagine, if you will, the beginning of any 90’s-00’s New York City coming of age movie. Bronx Tale, Sleepers, A Guide to Recognizing Your Saints (underrated if you haven’t seen it with Robert Downey Jr. and Chazz Palminteri), except rather than taking a dark and tragic twist involving wise guys and other sordid personalities, the main characters instead start a venture capital backed company, buy and display every awesome collectible they ever wanted, and had an amazing cast of characters as high-profile investors. It wouldn’t be as good as Sleepers, but it makes for an awesome story in the sports card world.
Before we dive deeper into my interview with Rob Petrozzo next week, here is what you need to know about Rally:
This is awesome
Rally goes beyond sports cards and sports memorabilia. Want a piece of a 1985 Ferrari Testarossa, they got you. Slash’s guitar, yup. The 1st printing of the Great Gatsby or Harry Potter, they have that too.
You shouldn’t just check out their website and assume that you get a flavor for what they do, you don’t. As I mentioned to Rob, I was stunned when I finally logged-in and saw all they had behind the wall. Sign up and log in, it’s free.
Everything is done through Reg A+ offerings. Translation=every asset is purchased through crowdsourcing and as an investor, you have all the SEC protections outlined in the JOBS Act. In other words, this is legit.
These are serious guys with serious investors whose names you know like Bill Simmons, etc.
You can buy shares in an asset and you will reap the reward if that asset sells.
Conventional wisdom says during times of high inflation, investing in hard assets is the way to protect your capital. This may be a nice portfolio play for you. Personally, I am looking at getting 15% of my portfolio into fractional assets like what Rally buys.
If you NEED something physical, Rob dropped a big hint on me. Rob, despite being the Chief Product Officer of a white-hot startup, still gets guff from his girlfriend, like each and every one of you, for all of his collectables that he stores in his home. Rob hinted that along with your ownership of the asset, they may be introducing some sort of physical representation of ownership similar to that of a stock certificate. This is really cool and I see a world where these physical representations can hold value on their own.
Check out Rally, and check out next week for more coverage of my interview with Rob Petrozzo.
SGC v. PSAvs. BGS (Modern Basketball)
This week, John Dudley, dove deep into modern NBA cards. Except, he hit a snag immediately because of poor sales data. However, what he found looks like some really bad news for BGS. Click here to keep reading….
Card Show Musings from a Grizzled Veteran:
John McTaggert is a long time collector and veteran. His card show tips would’ve helped me this weekend and they’re guaranteed to help you next weekend. Click here to read more….
2021-22 NBA Rookie Class
Last week, Panini had their first release of Prizm on their NFT Blockchain. Whether you care about the Blockchain product or not, we can learn a lot from sales data for the incoming rookie class. While the pricing probably won't translate exactly, percentage wise, we should be in the ballpark. This is important info to have as physical product drops. Though they dropped 3 variants last week, I’m going to focus on the base. These are average sales over the last few days. Still a bit volatile, but I will update as the season goes on and we get closer to the physical product. These are estimates.
Evan Mobley-$20
Jalen Green-$25
Cade Cunningham-$20
Scottie Barnes-$22
Jalen Suggs-$10
Josh Giddey-$15
Jonathan Kuminga- $3
Franz Wagner- $6
Davion Mitchell-$4
Chris Duarte- $6
So as you can see, Jalen Green hype is working. There is no doubt that Evan Mobley is the better player, but the Green hype makes him the king of this rookie class based on value. Kuminga’s value is underwhelming. Everything else is about where it should be. Let’s see how the big four separate over time.
Nonsense
IMO, these are two of the best shows these guys have done. If you missed them:
On Monday, Who Is the NFL MVP So Far? Plus Breaking Down Josh Luber’s Thoughts on the Card Hobby.
On Thursday (Actually dropped Friday), NBA Hot and Cold, Cam Newton and OBJ Card Values, and Mailbag Questions