Trades and Trends by Altan Insights: April 17, 2021
Join Altan Insights as we highlight trading activity across the various alternative marketplaces with a combination of charts and penned analysis to help investors track trends and price movements that impact their portfolio.
This week, Rally featured 20 different assets on their secondary market including a unique Tuesday session that featured an all-book lineup. J.R.R Tolkien’s ‘Lord of the Rings Trilogy’ was the top gaining asset, increasing its market cap by 23.46%. Overall, books sold-off on the day, with 5 of the 10 assets dropping at least 6% in value. Shakespeares’ Comedies, Histories, and Tragedies dipped 42.86% and is now trading at a 10.4% discount to its IPO market cap. Assets were down 5.32% on the day.
Thursday brought more diversity with six different asset classes represented. Leading the session was the 1985 Super Mario Bros (WATA 9.8), returning 38.31%. The surge in valuation is timely and is likely attributed to a recent sale at Heritage Auctions where a version of the game with a worse grade (WATA 9.6) sold for $660,000 (with buyer’s premium). The Rally copy increased its market cap from $216,900 to $300,000 but still sits on their platform at a steep discount to the record-breaking auction sale. The 2001 SP Authentic Tiger Woods card (BGS 9.5) jumped 37.5% during the day, closing at a $25,438 market cap. The valuation still trails a recent sale at Goldin where an example with the same grade sold for $40,590 (w/BP).
Video games led all asset classes in returns for the week with only one example trading. Three sports cards traded and returned an average of 12.58%. Card games and sports memorabilia were the worst performing sectors and were both represented by a single asset. Cars managed to squeak out a positive week as the 1994 Lamborghini Diablo SE30 Jota gained 7.59% and increased its market cap to $425,000.
Last week on Collectable it was sports memorabilia that led as an asset class as the Ruth & Gehrig signed ball and 1954 Wilt Chamberlain Jersey gained 17.86% and 17.14% respectively. This week sports cards set the pace with the 12 best-performing assets all coming in the form of cardboard and wax. Modern players performed well, with the 2017 Patrick Mahomes RPA card gaining 43.48% and the 2013 Giannis RPA increasing 27.56%. The next best assets were centered around Michael Jordan as the Nike Promo card basket increased its market cap by 20.93% and the 1986 Fleer Wax Box closed 17% higher.
Only five of the nineteen assets traded down during the week with the 1952 Bowman Mantle (PSA 8) continuing to drop lower. Over the last two weeks the Bowman mantle has decreased 37.3% in market cap. Since IPO the card is still up 140% and is trading at a $36,000 cap after it was offered at $15,000.
The impressive week for the Giannis card was almost enough to bring it back above its IPO market cap. The card has traded down to $7.80 per share but has rebounded to $9.95 per share after opening at $10. The 1986 Michael Jordan card is still the best performing asset on the platform, up 299.9% since IPO. The Muhammad Ali WBC Title Belt is the worst performing offering, down -14.0%.
Note: Otis weekly data is calculated from Saturday-Friday
The 1972 Julius Erving rookie card was down the most for any individual asset this week, dipping -22.73% with the bulk of that loss driven by a sell-off on Friday in which the card dropped -19.07% in a single trading session. The 2000 SP Authentic Tom Brady rookie card led on the platform, gaining 22.35%. The Brady rookie was followed closely by the 1997 Floyd Mayweather Rookie Card which jumped 19.54% in its first full week of trading. The Mayweather card initially sold-off -22.75% in its first five days of trading but recovered and currently sits 0.30% below its original market cap.
Sports cards led all asset classes on Otis, gaining 2.14% on average with sneakers and art also returning positive weeks overall. Card games and video games were the biggest losers, dropping -6.56% and -3.18% respectively. Over the last two weeks, card games (Pokémon) have lost 12.84% in value on average while sports cards have gained 6.36%.
Disclaimer: You understand that by reading Altan Insights, you are not receiving financial advice. No content published here constitutes a recommendation that any particular security, transaction, or investment strategy is suitable for any specific person. You further understand that the author(s) are not advising you personally concerning the nature, potential, value or suitability of any particular security, transaction, or investment strategy. You alone are solely responsible for determining whether an investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal financial situation. Please speak with a financial advisor to understand if the risks inherent in trading are appropriate for you. Trade at your own risk.