By CUSTOS
'Gus' and gold shares have been holding the investment stage. Those who still hold gold shares should hang on. The chances of a rise in the price of gold have undoubtedly im- proved. But to speculate and buy the shares of high-cost gold producers as if old times were returning is surely not being realistic. The South African Government has made this market a narrow and dangerous one. A short-term specula- tion in the shares of the market leaders might be permissible, but as a non-political alternative I recommend the shares of INTERNATIONAL NICKEL. Any writing-up of the price of gold must be reflected in the dollar price of an international commodity like nickel. In the meantime you can obtain a yield just over 3 per cent. with an earnings yield nearly double. As for gilt-edged stocks, investors should buy more of them. The fall in the bill rate to £5 6s. 6d. per cent. is a prelude to a cut in Bank rate. The current threat to the dollar makes it almost indecent of the Bank of England to maintain such high rates in London and accentuate the movement out of dollars. Astonishingly high yields can still be obtained on short-dated gilt-edged stocks. Take, for example, FUNDING 3 per cent. 1966-68 at 821, which returns a gross redemption yield of close on 6 per cent. and a true gross redemption yield (grossing up the tax-free capital profit) of £7 9s.
Decca products must rise. Our present margin of profit is under 7d. for every £1 of sales and I consider that this figure alone gives a fair indication of the efforts that we have made to contribute towards stability of prices.
The Bakery Division is still the backbone of our organisation and although there has been evidence of declining national consumption of flour products we are satisfied that we are in fact increasing our share of the total market.
In thc Bigcuit Division there has also been satis- factory progress. The major re-organisation of our biscuit companies to which I made reference in previous years has been completed and they have in- creased their share of the market during the year. During the year the wholesale and retail sections of our grocery trade have progressed nicely.
We arc improving our share of the expanding ice- cream and frozen foods markets.
THE FUTURE This is our 25th anniversary and we can look back with pride and satisfaction on a great record of achievement during those momentous years.
It is upon the future, however, that we now firmly fix our gaze and the prospect is one we view with un- bounded optimism, enthusiasm and confidence. So many circumstances are in our favour. Our market is here in the homes of the people and come what may our products are in constant daily demand.
We have a magnificent management team, with ex- perience and skill which we believe to be unequalled in the food industry. We have adequate financial resources at our command, and urrivalled experience, to exploit every opportunity for the development of our business.
In this space age new and unconquered realms are opening up to man. We share this spirit of bold adventure. New vistas are a challenge to our courage and enterprise. We set no boundaries to our pro- gress.
Roundabout
Tit's Wednesday was the anniversary of a great day. On October 26 last year the Times astounded the world by complaining
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