RISE IN RUBBER SHARES.
THE market for rubber shares continues to hold pride of place on the Stock Exchange—so far, at all events, as the volume of dealings is concerned, though some of the favourite industrial counters run it a good second. No doubt the market for rubber shares already has a number of pitfalls, and it would not be difficult, indeed, to enumerate quite half a dozen shares where, at present prices, the properties appear to be hopelessly over-capitalized. That; however, does not alter the fact that the rubber boom was originally based on a sound foundation. Shares were abnormally low, and, just as the fall was due to the absurdly low price for the commodity, so the rise was based not only upon the advance in the price of rubber, but upon the strong probability of stable quotations for some time to come. At the present time most of the leading rubber companies are able to sell their output for at least a twelvemonth ahead at prices giving profits very much above those disclosed for the past year ; and, so far as may be judged at present, the demands for consumption seem likely to continue for some time
to come. * * * *
Previous page
