PROSPECTS FOR SHAREHOLDERS
Following the announcement of 'these changes Richard Thomas issues have been steady but firm, which I think is an appropriate reaction. Apart from general market conditions, everyone is now anxious to see the accounts for the year ended March 31st and to hear the chairman's speech at the meeting on September 8th before buying the prefer- ence or ordinary shares. The debentures at 77, however, look to me a bargain to yield nearly 6 per cent. Only three weeks ago they stood at 82 and I see no reason why they should not recover to that level now that the board troubles have been solved. Even on the present earnings of the company the interest should be well covered.
On one point alone I should like an official assurance, and that is that the resignations of the Guest, Keen-Baldwins- John Lysaght directors will not mean a fresh outbreak of competition. Personally, I feel convinced that it will not, nor am I afraid of any building of competitive strip-mill plants. In recent months the Bank of England has made it plain that the development of the sheet-steel trade is to be carefully watched and the decision to reinforce the Richard Thomas board with leading men from the iron and steel trade emphasises the importance attached in high quarters to the Ebbw Vale plant. If I were a shareholder in Richard Thomas & Co. I should welcome the latest develop-
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