COLLIERY SHARE SWITCHES
It is disappointing to find Amalgamated Anthracite Collieries, after its recent reconstruction, announcing a dividend of only I per cent. for the half-year to June 3oth on its preference capital. Under the reconstruction scheme these preferences are entitled to a 3} per cent. cumula- tive dividend and have participating rights which would, in favourable conditions, allow them to receive a maximum of 7 per cent. From the decision just announced, however, I find it hard to suppose that they will get more than the cumulative 3J per cent. for 1939. By the same token the 4s. ordinaries must be very far from the dividend list, yet they are quoted around is., equivalent to 5s. in the £, while the LI preferences stand at 7s. My advice to the holders of the ordinaries is to sell at the current price and re-invest in the preferences, which hold out the promise of a yield of something like to per cent.
Alternatively, if a still higher return is desired, one might look at Pease and Partners' los. ordinaries, standing at 12S., yielding just over ro per cent. on the last dividend of 124 per cent. As this was covered by available earnings of 28 per cent., it seems certain that the rate will be maintained for the current financial year ending March 31st next. More speculatively, the 6 per cent. cumulative LI First Prefer- ence shares of Old Silkstone Collieries still look cheap at los. 6d., yielding nearly 12 per cent. On last year's profits the dividend was covered three times, and this year the company's trade should be even more favourable.
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