Wednesday, August 1, 2012

Sports Card Investor: Buy Pujols

I'll admit it; I buy into all the trade-deadline hoopla. I follow all the news stories I can, trying to get an insight into who goes where. I do the same thing with free agency. One of the most interesting things for me is watching not just how moves affect the team dynamic, but I like looking at how moves affect card prices. Major stars moving from small or mid-market teams to major-markets like New York or Boston always cause a spike in card prices, even if it's just for a few days.

I'm sure Nolan Ryan is happy to see Ryan Dempster arrive in Arlington, but I think Angels off-season acquisition Albert Pujols probably did a little dance when he heard the news. Here is Pujols line against Dempster: 55 AB, 18 hits, 4 doubles, 7 HRs, 14 RBIs, 11 walks, 2 strike outs, .327 AVG, .433 OBP, .782 SLG, and 1.215 OPS.

Albert signed one of the biggest deals in baseball history when he moved to LA this past off-season. For the past 10 years, Pujols cards have been very strong, and rightfully so. Pujols has had one of the most consistent, injury-free careers in recent memory, and his cards have held strong prices throughout. St. Louis is a mid-market team, steeped in history with many big-time collectors of their memorabilia. While Pujols was a Cardinal, he added to that.

After moving to the Angels, which have a huge untapped market in my opinion, his cards remained fairly steady (they did drop slightly, but that was due to the inflation they saw with the potential of him going to a major-market team). When Pujols started off the season with the worst slump of his career, his cards took the hit. No one in the new market was willing to pay major money for his cards, and many of his former collectors started dumping his cards.

For example: Pujols 2001 eTopps rookie has dropped form a high point of $75 to recent sales averaging around $45-50 (~33% drop). His 2001 Upper Deck PSA 10 rookie fetched a premium of $220 during his free agency, with recent sales in the past two weeks ranging from $130-$150 (~37% drop).

I'm not saying Ryan Dempster is answer to Albert Pujols's problems, but I am saying it is one many signs that things are looking up for Pujols and his cards.

At this point, Albert seems to have broken out of his slump (he belted his 19th and 20th HR last night). He's batting .284 right now with 20 HR, 60+ RBI, and a .350 OBP. Sure, it's lower than his norm, but it is significantly more than the Angels would have hoped for six weeks ago while he was still slumping. By seasons end, Pujols will have a solid ~.295+ average, with 30+ HR, and ~.380 OBP. Its scary that that is a bad season for Pujols.

Not only are his numbers going to be fine by seasons end, but the Angels are winning. And with flair. They are getting tons of media attention with the popularity of young stars Mike Trout and Mark Trumbo, they are winning games, and they positioned nicely to overtake the division from Texas. The Angels rotation is one of the strongest in baseball. If they go deep into the post-season with Pujols putting up solid numbers again, his cards are going to regain every penny they have lost.

If the Angels market keeps building, Pujols cards could see an even bigger increase.

Pujols Summary:             Recent Sale Range     Realistic Upside (6-12 Months)
2001 UD PSA 10             = $130-150                  $200-210
2001 UD PSA 9               = $55-65                      $85-100
2001 eTopps                     = $45-50                     $70-75
2001 Topps Chrome Traded = $55-70                  $90-100

p.s. Pujols faces Dempster tomorrow, so you might want to buy now!

*All advice is based on my opinion. I am in no way responsible for any money gained or lost based on advice given on this blog. Additionally, I typically follow my own advice, so I might profit off of it, too.

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