I called attention to American WOOLWORTH shares at $70, because
they were selling below the then value of their large holding in the UK Woolworth. In other words, you could then have bought the American business for nothing, but, as it was declining, no one seemed to want it. The recent annual report shows, however, that the American parent has turned the corner, in- creased its 1963 sales by 6.5 per cent and its net income by 5.2 per cent. This was a great improvement on previous years when net in- come was slipping. At long last the upward turn in profits seems to have come, through new stores, new merchandise and new selling tech- niques. The directors are optimistic enough to recommend a stook split of three for one and a dividend after the split of $3. The shares have moved up to $83 NY. I would not dissuade a private investor from taking his profit-provided he re-invests in Wall Street-but having regard to the fact that the current market value of the company's holding in British Woolworth is equivalent to $82 per American Woolworth (in spite of the fall in the price of British Woolworth from 33s. to 29s. 6d.), the shares are still a reasonable investment.
Company Notes
By LOTHBURY
Previous page
