INVESTMENT NOTES
By CUSTOS
THE gilt-edged market fell sharply on Tuesd It was upset by the rise in the Ameri Treasury bill rate from 3:42 per cent. to 3 per cent., the highest in twenty-six years. It also shocked by' the Radcliffe Commit Report. The fact that the Committee made 'a f disclosure of the action taken by the Governnie last year in stopping a sharp rise in gilt-edgi' prices and approved of the action has undf mined market confidence. The Committee in things worse by throwing such cold water on Roy Harrod's idea that a 3 per cent. return long-term bonds is a normal rate to which' market is likely to return in the absence abnormal circumstances. They supported common view that there were three ma factors—the steady increase in government de the expectation of continuing inflation and investment shift towards equities—which 1.11,e tending to drag up the level of bond yields 2' seemed to think , that a continuance of ma, erately high rates was reasonable even at WI1 of slackness in production (though not 10. serious slump). So they accept the prevail' high level of the long-term rate of interest 3, hold out no hope of a rise in the gilt-ecl market. War Loan fell sharply and after a loss 1 5/16 was yielding 5-1. per cent. at 65k. h9 thf th iv0
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tent, 0( igi • the most cash and he undertook to enfranchise his voteless shares. The attempt of the Establishment to swing the deal to DEBENHAMS deservedly failed. Should HOUSE OF FRASER be bought on the tall? The 'A' shares have fallen by 30 per cent. thif from 45s, 9d, to 31s. 9d. and at this price return its, °'er 6 per cent. on the indicated 40 per cent. ir) dividend. At the moment of writing it is, of II)'' course, cheaper to buy Fraser through Harrods it15
est old
014 6 c tides twenty stores in Glasgow, one in tiff Arrogate, nine in the north-east (Binns) and Lai' three in half a mile of Kensington High Street- Jo. Barkers, Pontings and Derry and Toms. The Harrods group includes D. H. Evans, Dickins and Jones, Kendal Milne and Rack ha ms -in all nine stores with assets of £22} million. Potentially the most valuable of the Harrods assets is the new store, to cost £31 million, in Birmingham- te store which attracted UNITED DRAPERY. Mr. Fraser paid thirty times earnings for Harrods, but when the 11.000 square feet of central hall a, lid other waste places in the Knightsbridge block are put to sales use he should be able to increase s earning power. Anyway, he thinks he has 'Argain too.
eraser and the Stores
The jobbers in the store share market always believed that Mr. Fraser would win the battle for control of HARRODS. He showed greater resolution, he was quick to buy the UNITED harweav block of Harrods preference, he offered assented at 136s. 9d. Deducting 68s. 6d. cash you get 2+ Fraser shares at the equivalent price 4".),f, .30s, which would yield nearly 6f per cent. 'Ile potential earnings of the new group are difficult to gauge, The House of Fraser, with assets of £30 million and sixty-two stores in all,
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)1 b red a 'bargain' and Fraser shares may be a
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