For investors that love fine art but can’t afford the lofty prices associated with buying and selling top pieces, Takung Art Co Ltd TKAT could have the solution. Takung acquires Asian fine art, jewelry and precious gems, appraises the items based on current market value, divides the pieces into equal ownership units and then sells the units to investors via an app available for download from the company’s website.
The company generates revenue from the listing fees for its art, which range from 22.5 percent to 47 percent of the art’s offering price. In addition, the firm charges its customers trading commissions and management fees and also receives substantial fees from agents that are authorized to list products on Takung’s website.
The Hong Kong-based company retains no ownership in the pieces listed on its platform, and the market value of shares of its pieces is determined strictly by the prices investors are willing to pay for the units.
In November of 2015, Takung began trading on the OTC in the United States.
On February 18, the company reported 2015 net income of $5.4 million on EPS of $0.49 per share. Both of those numbers were up sharply from 2014’s income and revenue of $1.4 million and $0.15, respectively.
Disclosure: The author holds no position in the stocks mentioned.
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