The trading card industry, which has seen sales drop from
about $1.2B in '91 to around $700M in '95, could be on the
"rebound," according to SI's John Garrity. In a feature on the
"shakeout" of the industry over the past decade, Garrity writes
there are some signs the comeback has "already begun," as
evidenced by the consolidation of manufacturers; reduction in
prices and print runs; the "storm" of a secondary market (card
shows, magazines, Internet sites); and consistent sales of
Topps's Mickey Mantle Commemorative sets. Topps President Jay
Langdon said people in the '80s got "carried away" with a "Wall
Street mentality" but he is now hopeful the industry has reached
the end of its drop. Topps' stock, traded on NASDAQ since '87,
peaked at $20.25 a share in '92, fell last year to a low of $4.25
and was going for $5.13 last week. Scoreboard and Marvel
Entertainment (parent company of Fleer/Skybox) also trade.
Sports-card analyst Terence McEvoy said in the late '80s and
early '90s, he recommended trading card stocks, "Now I tell
investors to sit on the sidelines and watch." He noted "greed by
the leagues" has been a factor because too many licenses have
been issued. Burnham Securities Managing Dir David Leibowitz:
"Barring some negative event, the companies could start putting
some impressive numbers on the board" (SI, 7/29 issue).
