Stamp dealer Stanley Gibbons (SGI:AIM) looks interesting ahead of potential earnings upgrades. Upgrades could follow on the back of cross-selling opportunities related to the acquired Noble Investments business.

The £169 million cap bought the rare coins and collectables specialist late last year (21 Nov’ 13) in what was a strategically important deal. In addition to internationally-renowned heritage coins name Baldwin’s, the acquisition added watches-to-fine art auctioneer Dreweatts, books and art auctioneer Bloomsbury and Apex Philatelics.

Cost savings and efficiency gains offer additional forecast upside catalysts as their financial benefits are felt towards the tail-end of 2014. In its latest trading missive (16 Jan), Stanley flagged high demand from investors and high-net-worth collectors keen to bag premium quality collectibles which offer a store of value and an inflation hedge in uncertain economic climes.

Given strong current trading, upgrades could come as soon as the interims for the six months to December (following a year-end change), which are due before the end of March. Reassuringly, the philatelic star turn sports £17 million net cash as well as a high-quality rare collectibles stockholding on its balance sheet.

The company’s fiscal strength supports ongoing online investment and international expansion and means the British heritage brand is well placed to ride booming appetite for rare stamps, coins and other collectibles. With a ‘buy’ rating on the stock, Peel Hunt’s Charles Hall has a 400p price target.

Stanley Gibbons’ Noble acquisition looks a canny transaction which should help sustain the trading and share price momentum. The shares still look very interesting at 366p.