Investment Notes
By CUSTOS
THE start of a new account and some cheerful tipping in the Sunday press brought a feW rises in the equity market, but the death o1 Hammarskjold knocked the recovery flat. Tb6 trend of industrial profits is down and a 15 per cent. drop in the Financial Times industrial share index is small as compared with the coming droP in some company earnings. But I remain a careful selective buyer in stores, beer, insurance and property shares. Here is a chance to buy TWO FURNISHING at 12s. 9d. to yield 5.3 per cent' DEBENHAMS fell on the new issue of one-in-fifteen at 42s. 6d. to 50s. 6d. to yield 3.8 per cent. There was a 11 per cent. rise in 1960-61 profits, but it' will take ,time for the present rebuilding and' extensions to bear fruit. In beer there was scramble for the new COURAGE BARCLAY COW' vertible debentures (previously recommended). It, view of the fact that the output of beer was per cent. up in the first seven months of the Ye3r, and that we have yet to see the profit effects 01 the recent amalgamations, I like BASS MI-1CW°' AND BUTLER at I Is. 6d. to yield 4.8 per cent. WHIT' BREAD `A' at 32s. to yield 4.1 per cent. should licit be forgotten.
Property Shares 4.
The market in property shares remains Win), especially in those companies which have secure°, their finance from the insurance companies. But there are strong companies which can raise fundsl by way of mortgage, such as CITY OP LONDO REAL PROPERTY and METROPOLITAN ESTATES, both yielding about 3 per cent. after a considerable fall. LONDON COUNTY FREEHOLD, also without all insurance link, is raising £11 million by a right' issue of one-in-twelve at 24s. The chairman 113'' said that he hopes to raise the dividend from 12 1/12 per cent. to 15 per cent. in two years time. At 30s. the 10s. shares yield over 4 per cent. currently and potentially 5 per cent. SLOUGH ESTATES, the largest factory estate corn' pany in the world, also has no insurance backer, but it could surely get one quickly if it were to revalue its assets. The 5s. shares have come down from 37s. 3d. to 29s. and yield 2.3 per cent.
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