SKINFLINT'S CITY DIARY Sell signal
Chartists have a capacity for tendentious drivel but as what they say affects the action of their customers a degree of sceptical acknowledgement of their existence must be made. Last week one firm of chartists was circulating their clients strongly signalling them to sell B. Elliott and Company, Alfred Herbert Limited, Vickers Limited and Staveley Industries even at their present depressed prices.
At least one of these companies is still in business only because of the forbearance of its bankers. At least two of these firms have not been charging against revenue, but capitalising starting-up losses in new ven- tures making them appear somewhat better than they area The true picture has not been missed by their bankers.
My instinct on this occasion is to follow the wisdom of the chartists because the down-side threat is, in fact, the possibility of the investment being wiped out.
When these companies were successful they were immune to counsel and advice but now that the soft, suffocating and woolly clasp of the IRc is no more, it is time for some true child of freedom in the City to bring them together by force. It is most unlikely any director of these companies will reproach himself for what has gone wrong. If they had. been asked some years ago what their companies were in business to make we should have certainly got the answer 'machine tools, printing machines, ships, chemicals'. If a year or two ago the answer had been given `to make money' their condition would be quite different and their shares would be at something like their old level and no part of a chartist's sell signal.
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