Venturers' Corner
I would still prefer not to attempt to put a date to American business recovery, but that there will be a recovery at some time or other all but the grimmest prophets of doom must surely agree. So here is a share for the folk who do not mind taking a chance and biding their time in the hope of making a reasonable capital profit. Name : American Radiator and Standard Corporation common. Price : 12 dollars and dealt in on the London market as well as on Wall Street. Last year American Radiator earned 68 cents per share 1 its common and paid 6o cents per share in dividend, so that the yield is 5 per cent. before allowing for the to per cent. Non- Residents' tax deducted at the source. This, I think, is not a bad jumping-off ground provided one can be reasonably hopeful of jumping in the right direction.
I like this share, as a speculation, because the American building industry is almost sure to be one of the first sections of American trade to go ahead whenever the tide turns. There is no doubting that there is an acute shortage of houses in the U.S.A., a conservative estimate putting the deficiency at 2,000,000 dwellings to restore the 1930 living standard. So far, the long-awaited housing boom has not arrived mainly owing to high labour costs and financing difficulties, but the Washington Administration has now set its hand to the task—and the pump-handle—in determined style. Alto- gether I feel that the dice are now heavily loaded in favour of a building revival either late this year or in 1940, and whenever it comes American Radiator cannot fail to benefit as a large supplier of heating, air-conditioning and plumbing equipment.
CUSTOS.
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