Buy philatelic retailer ahead of global market share gains and forecast upgrades �� p Jx�Lection1;} --> Snap up stamp dealer Stanley Gibbons (SGI: AIM) ahead of a bullish outlook statement alongside March’s finals. Positive guidance regarding overseas-growth and web-based momentum could trigger upgrades to estimates. Heightened interest in collectibles as an alternative asset class is expected to increase in 2013 as economic uncertainty and inflation drive investors into the arms of tangible assets. The £71 million market cap is already making its stamp on the global stage with the help of its enviable brand name and heritage. Stanley Gibbons’ Hong Kong office is generating brisk business in the Far East, notably in the form of rare stamp sales to China, while further overseas offices will open this year. Strong momentum behind web-based operations offers a further catalyst. Sales from surged 55% higher to £1.4 million in 2012 and the firm’s $1 million purchase of US-based online collectibles trading platform bidStart will help build the brand internationally. Forecast upgrades should drive the shares higher, while the company’s balance sheet strength provides good downside protection. With £7 million of net cash at the year-end and significant stock holdings of rare quality collectibles, the valuation is supported by asset backing of 197p a share. Shares says:    Buy  Stanley Gibbons at 248.5p for its global market share and upgrade scope.

|Small Caps
Issue: 23 Jan 2013 - Page 27