• . Anyone who doubted the vitality of the pedal-cycle
industry would .have :changed his mind after a visit to the Earl's Court Show. The;re one, .could find plenty of,evidence that-pedal cycling is enjoying a -boom not merely in Great Britain but in many other cOtnitries. Between 1931 and-1915 the "traffic census shoWs a rise of 95 per cent. for, pedal cycles, coMpared with only 36 per cent. for private cars, and the upward trend has been maintained -since. In its early stages the boam showed a close correlation with house-building develoPnient, but, while building activity has latterly been waning, cycle production has gone further ahead. The increase in the employed population is the most likely explanation. Cycling is a cheap and flexible form of transport admirably adapted to an age in which factories draw their labour from relatively wide areas. Add to this increasing home demand the sharp increase in oversee orders and you have the basis for the British makers' prosperity.
How long will it last ? In the home market I imagine
demand should hold up well for many years, although the rate of expansion must slow down. The export market, on the other hand, should have plenty of scope for rapid growth. The share I like from this standpoint is Raleigh Cycle Holdings, now standing at 73s. On the 1936 dividend of 22i per cent. the yield is over 6 per cent., and I shall be disappointed if profits do not allow a 25 per cent. dividend and a generous allocation -to reserves' this year. As a -speculation these £r Shares have attractions both for their income yield and for capital appreciation.
CUSTOS.
[Readers' enquiries, or requests for advice, regarding particular shares will be answered periodically in print or by letter. Corre- spondents who do not desire their names to appear should append initials or a pseudonym to their questions.]
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