RUBBER SHARE POSITION
Without wishing to be enthusiastic about immediate market possibilities, I suggest that patient investors should keep an eye on rubber shares. With exports curtailed as from July 1st to 45 per cent. of international quotas, most people will agree that the stage is set for an improvement in the fortunes of rubber growers as soon as conditions in the United States take a turn for the better. At the moment an early American recovery is still a hope and a none too confident one at that, but there are at least some signs that the recession is not likely to get worse. Meantime, rubber shares have fallen to levels at which they offer reasonable returns in relation to the reduced dividends they may be expected to pay even for 1938 ; they are therefore at attractive prices for those who are prepared to ignore day-to-day market fluctuations and lock them away for their long-term recovery prospects. Rubber Trusts, at 23s. 9d., Bah Lias at 22S. 6d., London Asiatics at 3s. I id. and Henriettas at 2s. are typical of good shares which can now be bought at reason- able prices.
* * * *
Previous page
