Scientific purchase
Nephew Wilde
I am in a self-congratulatory mood. Is this justified? Well my broker Wotherspool certainly seems to think that honours are due judging by the number of times he has rung me.this week. " Well done ", he will remark," soand-so are up x pence on the results; don't you reckon we ought to be taking a profit, old Man?" .
Though I am not deceived by, Wotherspool's flattery nevertheless 1 am very pleased that shares such as Guinness Mahon, which looked for so long a laggard after I had bought it, produced the expected goods and fulfilled my expectations. Another good result last week was that from Brooke Bond which also gave the shares a nice fillip, while three recent additions, Haw Par' (up 15 per cent), Tricentrol (up 8.8 per 'cent) and AAH (this selection thanks to Andrew Davenport), have all performed well.
Among shares of longer-standing, Odex Racasan and Henry Foster (up 11 per cent and 15 per cent respectively) have easily outperformed the market. However, I am retaining these investments as
opectabor November 10, 1973
I still hope to see takeover developments emerge. Meanwhile the market is still only just beginning to appreciate Stoddard Holdings, the carpet recovery situation that has risen by 31 per cent, so here again I am in no hurry to sell. A little disappointing have been Brown and Tawse and Graham Wood. But with these companies I shall await results before making any investment decision. 1 would also single out, while reviewing my holdings, Alexander Russell which 1 bought as a potential beneficiary of the oil crisis. Its business is in coal and oil distribution, building supplies and quarrying — all growth sectors. Selling on h mere PE ratio of 6 the shares are still very reasonable, in my view.
But I am still prepared to be ruthless with stocks that have failed to come up to expectation, in the short term that is. This is why I am selling Brooke Bond, after the good figures, Tecalemit, Carpets International and Crown House. Thus with sizeable liquid funds I am at least flexibly. placed. Wotherspool even wanted me to put some money in Manila. However I have settled for a very interesting share, Negretti and Zambra, manufacturer of scientific and industrial instruments. The shares are selling at only 51 times earnings and last month the chairman, Mr J. E. Odle reported that trading had started well this year and order books were substantially higher.
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