Nephew Wilde's Portfolio
Probing deep
Mr Wotherspool
As a merriber of -ale Stock Exchange few facts to emerge from the Lonrho court case have shocked me, with the exception perhaps that Duncan Sandys's contract with the company was a material one and was not disclosed earlier. What does make my blood boil, however, is the way that politicians have voiced their views on the subject with the usual degree of ignorance. What can be commended, which few have been magnanimous enough to do, is the democratic way the board room row is being thrashed out.
While the City is in dispute, however, the case is being made for a policing body, somewhat similar to the SEC. I shall first touch on one of the most thorny questions such a body should tackle — insider dealing. This is when someone uses privileged knowledge to his own financial advantage.
Mr Peter Wardle, the chairman of Arthur Wardle, which company was acquired by Greensitt & Barratt a year ago, took out a call option on 3,000 of his company's shares for 8p a share with the striking price at 83p on March 8. The bid for his company announced 15 days later valued the shares at 146p.
Mr Wardle was quite open about these share dealings, as the formal takeover documents revealed all the details. Others, however, might be more discreet and use a nominee name.
Alas, I could continue to voice my views on these topics. But to more relevant work. I have picked, as this week's share, A. F. Bulgin, a manufacturer of precision electrical and electronic compOnents. The eponymous chairman, Wing Commander A. F. Bulgin, has always had a deep interest in his company's work and I believe• with his own homemade transmitting set was on the air in 1913. Now the company, in its fiftieth year, has had twenty consecutive years of record breaking profits. And supplying components to the colour TV and hi-fi industries, it can be expected to do well in the current economic climate. The group, after announcing profits of 009,000 for 1972 last month, said order books were at record levels with sales and profits well ahead of last year. The non-voting 'A' shares which I am buying are well below their 1973 peak and should have plenty of way to go.
After the extensive clear-out of stocks last week (which prompted a concerned telephone call from 'Wilde) I have ample funds for this latest acquisition.
Previous page
