* * * * SOUTH AFRICAN INDUSTRIALS
It is good to find that the slump in gold-mining shares, which must have inflicted some heavy losses in Johannesburg earlier in the year, has had no serious effect on South African trading conditions. Elephant Trading (South Africa), whose 5s. Ordinary shares I recommended some months ago, has some excellent figures to show in its first report since the public issue here in May, 1936. Profits are well above the prospectus estimates, and the total. dividend of 15 per cent. free of South African tax is amply covered. The board has, in fact, been very conservative, having built up reserves and carry forward equivalent to nearly one-half of the issued Ordinary capital. At IIs. 6d. the shares are yielding nearly 7 per cent. In view of the strong finances and the prospects of further expansion for a company carrying on a diversified wholesale and merehanting business, my advice 'to holders -Li not to sell.
Another company whose shares I discussed earlier in the yeat; and now about -to-issue its -accounts-, -is- 0.K.,--Baziatts. The loss sustained by the Paramount Stores subsidiary is
disConcerting, -but I understand that O.K. Bazaars has only £6o3000 invested .in this business. Rumour has been'unkind
to-the coinnany in recent months, but suiprised if the accounts do not recreate confidence: 'Profits shoUld certainly have increased and a dividend of 6o per cent.; free of -South African' tax, is by no means unlikely , On this basil the 5s. shares, at 35s., would be yielding 8} per cent. without. allowing for the tax concession. The shares should be held at least until after the -accounts have been published.
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