COMPANY NOTES

By CUSTOS

ON the eve of the autumn Budget the stock markets were quiet but very firm. As no one in the City understood why Mr. Butler wanted an interim budget no one was pre- pared to take a view. So books were levelled up. The majority seemed prepared to buy if the Chancellor's bite proved less fearsome than his bark. The recent course of markets has shown that the buying orders of pen- sion funds have been sufficient to absorb the private selling. The industrial share index on its last fall did not penetrate its March low, and, in fact, if it were not for Mr. Butler's threats, it would have gone considerably higher on the recent company news. The UNILEVER companies declared one-for-four scrip issues and the main- tenance of the interim dividend on the larger capital, while the ever - expanding BOWATER PAPER announced a one-for-one scrip bonus on the equity, a reorganisation scheme for the preference capital and an increase in the authorised capital. This company in the last eighteen months has given a one-for-three bonus, a one-for-one bonus and a one - for - three 'rights' issue and increased its loan capital by $25 million raised mainly in New York. No one can say that Sir Eric Bowater is not enterpris- ing. What final dividend will be paid on the capital doubled by the present bonus it is hard to calculate but the market seems pre- pared to assume an annual rate of 20 per cent. which would allow a yield of 4 per cent. at the present price of 100s. While 1 am sure that Bowaters are riding the crest of their profit wave—the paper-using com- panies maintain that the profit margins of the paper-makers are much too high — 1 would leave these shares to the large institu- tional investors and keep to the less spec- tacular WIGGINS TEAPE at 60s. to yield 5.8 per cent. on dividends of 17-1 per cent. (2.3 times covered) or INVERESK PAPER 4s. shares which have fallen to 15s. to yield .5i per cent. on the last dividend which was over six times covered by earnings. For the small investor 1 have also previously recom- mended ALDERS (TAMWORTH) 2s. shares now s and t. for Ti the

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quoted at 7s. 3d. In June an interim div of 8 per cent. was paid on the capit, creased by the 50 per cent. scrip bonu on the expected basis of 25, per cen the year, anticipating an increase fro r equivalent rate of 20 per cent., the at 7s. 3d. would be about 7 per cent.

For a high-yielding share this week MCDOUGALL'S TRUST which has jUS creased its profits from around £220,0 £366,652 for the year ended June. well-managed company is not, lik( other millers, engaged. in the fierce petitive trade with bakers: it mills its self - raising flour which it distribut the grocery trade. Its immense goods based on the quality of its product al the skill of its public advertising and be interesting to see whether the new vision advertising increases its sale 48s. the shares yield 6.2 per cent. 0 dividend of 15 per cent. which was co over twice by consolidated earnings.

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I have previously recommended cr LONDON REAL PROPERTY shares which now gone ex the capital bonus of on ference share for• every two ordinary. rose 3s. 6d. this week to 37s. 6d. in ant tion of the directors' forecast that 9 cent. will be paid for the year. The rebuilding of its blitzed properties i City (which Mr. Butler is not like check) is steadily increasing its inconi 1 understand that its new offices ai as soon as they are completed. At 37 the shares yield over 5 per cent. Incide the new 5 per cent. preference shares c secured in the market at 18s. free of 5 to yield 51 per cent. with fine securi a higher yielding preference share quired, I would mention JAYS AND CAM] (HOLDINGS) 4 per cent. preference at 12. to yield 6 per cent. This preference sh guaranteed by GUS and is 28 times co by consolidated earnings.