Page 2, 10th March 1939

10th March 1939
Page 2
Page 2, 10th March 1939 — INTEREST EXPANDS ON ACCUMULATED " BULL " POINTS Industrials Lead Continued Recovery

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Locations: Birmingham, Munich


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By Our City Editor The new Stock Exchange account commenced on Monday with a more formidable array of " bull " points than it has done for over two 3-ears.

The factors making for recovery are impressive, and are gaining in recognition now that the investing public is no longer distracted by the demoralising possibility of \var. Budget fears are at rest ; trade news is growing brighter almost daily, particularly concerning the heavy industries; millions of public money, both from national and local taxation, continue to be expended on rearmament, road construction, housing and other public works; unemployment is on the decline, as indicated by the drop of 142,308 in the number of workless during February.

This generally more optimistic feeling is apparent in the majority of the market reports, and in forecasts made by chairmen at company meetings. In short, always provided that we have reasonable freedom from political alarums, the Stock Markets have now sufficient recovery potentialities to further substantially the current revival to a stage at which it will he possible for old holders to release previously frozen capital, after which market conditions will become more normal.

The continued activity of the past week has resulted in the average level of prices surpassing the post-Munich peak, when, however, shares were drastically written-up in a dramatic reaction from a condition in which it was virtually impossible to sell anything.

Great Universal Stores

In early October last, I especially recommended the investment merits of the 5s. Ordinary shares of Great Universal Stores, the largest mail-order business in Europe. The price at that time was about 298. Persistent demand during the past Fortnight has caused a steady advance of about 4s. 6d. to 34s. 6d., which has made the shares an outstanding feature. Interest Is explained by the proximity of the results and final dividend for the current trading year, which concludes with the end of this month. Although the total ordinary distribution is unlikely to be increased over the 50 per cent., as paid for each of the preceding three years, I believe that this payment will be covered by at least double the previous margin of 14 per cent.

Bargain-Hunter's Selection

of out-of-the-way shares, for which who hesitated to participate until prices to secure exceptional value in a number existing a month ago. Intending buyers, were actually on the move, must now be regretting their indecision in not having taken earlier advantage of the opportunities. It is still not too late, however, already skimmed the first layer of cream off the low-priced share bargains inquiry is now arising.

The activity of the past fortnight has The following selection gives some idea of the opportunities still available: Last

Current annual Current Price Dividend Yield

Armstrong Stevens, 36. ... 8 0 17 ioa Ciro Pearls, 71 per rent. 0 711 121 Cum. Pref. ti 12

Clover Paint Ord.. 10s. 5 6 6 Ili

George Spencer, Moulton 5 Ord. 5s. 2 16 • 11I


Plowman. Barrett 5 per 31

cent. Cum. Pref. fl 7 6 34 10 The individual degree of security offered in the above shares is widely different, although, at these prices, it would seem that little harm could come to the buyer. Although speculative in their class. the three Preference issues are reasonably safe as regards the distributions. Plowman, Barrett, in particular, are finding some inquiry, and look to be good value for locking away. Among the Ordinaries, both Armstrong, Stevens and Inns are sound, medium-class, industrial holdings, the former being particularly well thought of in Birmingham. George Spencer, Moulton is probably the most speculative of the list, but look a good holding for " recovery,"

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