O p t Titr rally in industrial equity shares this week lesit
oils( re ipid was not unexpected in this column. An in- fluential brokers' circular may have had some influence on institutional buyers. This expressed the sound view that there was a sufficient number of good company reports pending to make it 1.91probable that the market would fall very much farther and stated that funds awaiting investment were much larger than normal. Certainly there the a firmer base for institutional support when reached average yield on the Financial Times index ntu41whe.Illion to TUBE INVESTMENTS last week, art en much more than the index. I called issu had dropped over 25 per cent. on the new , e, and these have already recovered 8s. UNTIED DOMINIONS also fell by 25 per cent. on a.new issue-2 million shares at £6 in the ratio of one for two. The new shares should be a good Purchase on a yield basis of 31 per cent. LIEBIGS also have fallen by 25 per cent., but the new issue to this case turned out to be merely £3 million 'l
Pee cent. debenture now quoted at 53k, being ' Per cent. paid. Liebigs are temporarily out of „vour, but on a yield basis of 4 per cent. they should be bought.
fall 4.17 per cent. Some leading shares have :°11.°a The shares of companies making road mater- , del) Is have been a disappointing market and have ;ree5t not fulfilled the promise of the new road pro- toads gramme, the effects of which were perhaps over- jCiCP, discounted. TARMAC, the leader, has fallen 20 per it, neut. and with a yield of only 3 per cent. it is fly if Rot Yet likely to attract buyers. AMALGAMATED ,.°ADSIONE have recovered on the preliminary trading which showed a rise of 25 per cent. in the profits. The probability is that profits for e current year will be considerably higher. The Loinipany has made an offer for Amalgamated with estone, the details of which will be published 39's" the accounts. At their present price of
s. 6d. the 10s. shares yield 5.1 per cent. (exclu- sive
of the 5 per cent. tax-free distribution) on a -40 per cent. dividend covered 1.8 times.'
t'ruen Grocers to Brewers . The indications are that retail price mainten- ance is breaking down. There is no doubt that price-cutting in the grocery trade will be more theChains like INTERNATIONAL TEA and HOME AND COLONIAL. The first is yielding 4.1 per cent. on a
10 Per cent. dividend covered 1.8 times, and the
second 3.7 per cent. on a 10 per cent. dividend covered 2.4 times. An exchange into breweries might be a sound investment move. With the Modernisation of the public house there is quite a revival in bar drinking and there are enough Mergers to come and property hiving-off to make select breweries attractive to investors. I have called attention previously to MITCHELLS AND et-rrt.E1t, the Birmingham group which has been absorbing other companies. At 74/- the shares Yield 4 per cent. on 15 per cent. covered nearly 21 times. The leader, BASS, has fallen by 20 per eAertt, On the new issue, and at 22s. 3d. now yields ." Per cent. on a 20 per cent. dividend covered twice. GREENALL WHITLEY own over a thousand houses in the Merseyside and surrounding dis- tricts where the new motor factories are to be ouilt. At 19s. the 5s. shares yield 4 per cent. on a 15 per cent. dividend covered 3.4 times. With an earning yield of 13.6 per cent. the shares look cheap.
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