 Collectors Universe, parent company of PSA/DNA, isn't immune from the stock market's freefall. Last week, its boss was forced to sell some of his stock to meet personal loan obligations.
It wasn't a pretty start to October for the financial markets. The sports collecting hobby doesn't have a lot of publicly traded companies, but Collectors Universe is on the stock exchange.
Michael Haynes, CEO of the Newport Beach, CA grading and authentication company, had to sell some CU stock Wednesday to meet obligations under some of his personal loans.
Haynes sold 120,000 shares at $4.033, according to a Securities and Exchange Commission filing.
the recent turmoil in the financial markets -- combined with an inability of Haynes to quickly access assets -- triggered the need to sell the stock.
"These sales were involuntary and related to personal planning objectives and the current extraordinary circumstances in the financial markets that triggered the need to sell Company stock," Haynes said in a news release. "This event is in no way a reflection of my perception of the Company."
Borrowers who utilize a collateralized loan typically must secure it through stock or property. If the collateral's value decreases beyond a certain amount, it often forces the borrower to put up additional money.
CU stock has ranged in price from $4 to $15.40 over the last twelve months. According to the Orange County Register, which quoted financial data, the sale represented 1.4% of the company’s 8.36 million outstanding shares. Haynes continues to own 29,334 shares.
The stock has been trading at between $4 and $4.50 in recent days.
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