Venturers' Corner -
A few months ago I outlined the merits of the 3s. 4d. shares of Kern River Oilfields as a speculation on the strength of Certain impending developments. The price was then 5s. 6d., and in September it had risen to over 8s. The rise was so steep that I advised holders to accept their profits - and wait for a reaction to provide a possible opportunity of re-entering -the Market. In the meantime the company has issued its 'annual accounts, covering the year to May 31st last, and the quota- tion has fallen back by stages to 5s. 9d. At this level the yield on the basis-of the latest dividend rate, which was 71 per cent., agairist 5 per cent. for the preceding year, is roughly 4 per cent. Is this a reasonable jumping-off point for a further speculative
purchase on prospects ? '
When returns ranging between 5 and 6 per cent. can be
obtained on the shares of the big well-integrated oil companies, the yield of 4 per cent. looks inadequate, but it indicates, especially in these dull markets, that there are buyers about who are impressed by the company's possibilities. The position, as I understand it, is that production on the company's properties is being increased very rapidly, but, even more important, powerful interests in the industrial alcohol field are preparing to build up for the Kern undertaking a petrol distributing buiineSs in the United Kingdom. -These interests are closely associated with those which have already achieved remarkable success in developing the " Cleveland " petrol business of the Petroleum Storage & Finance Company, whose is. shares now stand at 45s. and receive very large dividends. Can anything on this scale be achieved for Kern Oil ? There are difficulties to be overcome and the fight for a place in the market may be long drawn out, but,as a speculation the shares are interesting at 5s. 9d.
erful interests in the industrial alcohol field are preparing to build up for the Kern undertaking a petrol distributing buiineSs in the United Kingdom. -These interests are closely associated with those which have already achieved remarkable success in developing the " Cleveland " petrol business of the Petroleum Storage & Finance Company, whose is. shares now stand at 45s. and receive very large dividends. Can anything on this scale be achieved for Kern Oil ? There are difficulties to be overcome and the fight for a place in the market may be long drawn out, but,as a speculation the shares are interesting at 5s. 9d.
• [Readers' enquiries, or requests for advice regarding particular Shares, will be answered periodically as space permits. Correspon- dents who do not detire their names to appear should append initials or a pseudonym to their questions.] • [Readers' enquiries, or requests for advice regarding particular Shares, will be answered periodically as space permits. Correspon- dents who do not detire their names to appear should append initials or a pseudonym to their questions.]
Previous page
