26 MAY 1939, Page 52

Venturers' Corner Some weeks ago I outlined the possibilities, from

a speculative standpoint, of the i i per cent. non-cumulative los. preference shares of W. H. Dorman & Co., the Staffor,1 firm of oil engine makers. The price was then 8s. 9d , and it is now only about 6d. higher around 95. 3d. In tlk' interval, however, fresh evidence has been forthcoming thd- the ii per cent, dividend is being covered by earnings, for how else can one interpret the board's decision to pay the full rate, which is non-cumulative, for the year ended March 31st? An interim of 5-1 per cent. was paid lact November, and a further 51 per cent. has now been de- clared. I feel, therefore, that it is safe to assume that the report is going to record a further improvement in earning, That is a reasonable expectation on general grounds in tha- the company is supplementing its normal work wit Government connacts. At 93. 3d. these TOS. shares offer the inviting yield of roughly 12 per cent., which seems to (Continued on page 938)


(Continued from page 936) me to make every generous allowance for the risks. In better markets I should expect the yield basis to be much nearer 8 than 12 per cent., which would imply a price for the shares two or three shillings above the current level.