* * * * NEWSPRINT SHARE PROSPECTS
Having reviewed hopefully the outlook for Canadian new print companies, and for some of the leading shares, early this year, I owe readers a summary of present conditions, more especially as the shares, after rising sharply until May, have since fallen with dismaying' swiftness. One Must admit at once that the position, while in no sense alarming, is not so promising as in the early spring. Stocks of newsprint in the hands of the mills and the publishers have been rising, and most of the Canadian mills have now agreed to curtail output by the equivalent of one working 'day per working week of six days. This decision has been taken to prevent stocks from becoming unwieldy, as they doubtless would have if American constunp- tion, reflecting the general setback in business, should fall away sharply. If revised estimates of consumption prove too conservative, the newsprint industry's position, with surplus capacity reduced to- a minimum; would-be very Strong.
In any event, the companies will have the benefit, next year, of higher selling prices to offset increased costs and, allowing for the effects on costs of restricted output, one may - • (•.cintinned.on-pvg: 932.) - - -- (Continued from page 93o.)
assume that most of the more efficient units, such as Price Bros., will earn moderate profits. I am not advising further purchases of newsprint shares just yet, even at today's low prices. I should want to be sure, first of all, that American business is really getting going. Once that situation becomes a little clearer, there should be decided speculative attraction in the newsprint group.
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