Investment Notes
By CUSTOS
THE index of industrial shares (now only per cent. below its January peak) is li, not true measure of Stock Exchange activity. recent weeks the most active section has II the non-industrial shares—bank, insurance, °lir, property shares, which I have lately been- fave,tio ing. A broker's circular on property shares, el mentioned one of my recent recommendan°11 namely CAPITAL AND COUNTIES, which enjoYerati further rise this week to a yield basis of to. under 3 per cent. I still think CENTRAL AND P t TRICT at 40s. 3d. is cheap to yield 3.4 per eefilit and I agree with this broker's circular that , I CiOre'S CITY AND CENTRAL (yielding just tiode,,:h; per cent. at 42s. 3d.) are worth following. I'd exotic property shares with a yield basisfes. around 1 per cent. can be left to the Pr° sionals.
Investment Trusts
riptrusts have not had the sharPti of insurance shares in recent weeks and are Oo looking at, if for no better reason. Two 5hatip , tend to lag behind because they are not denst, in the investment trust market proper. fits CITY OF LONDON BREWERY AND INVESTMENT. Opt net profit for the year ending June 30 has °6 yet been published, but a dividend of 36 Per 'iv has been declared against 27 per cent. In, the previous year. To mark the centenary of. t° company a bonus of three deferred for one be distributed. At 60s. cum bonus the 5s. defer ril shares yield 3 per cent. Next, GLOBE TELECP64 AND TRUST 5s. shares can be bought at 20s. to cum a one-for-five bonus issue and a one-feio rights issue at 10s. It is the company's Practond to maintain the dividend after such issues The net asset value of the share is about 26s. of 20s. 6d. the shares seem undervalued. Both these shares should show appreciation when they are marked 'ex' their capital bonuses.
Films and Television The results of the RANK ORGANISATION for the Year ending June, 1960, showed a modest 15 per cent. rise in trading profits (mainly from cinemas) bh3 sharp rise in equity earnings on account of e high gearing. The dividends are being in- creased from 10 per cent to 15 per cent. with a ene-for-ten scrip issue while GAUMONT BRITISH get a rise in dividend from 12} per cent. to 174 134e; cent. The disparity in the dividend yield- Per cent. on Rank and 9.2 per cent. on thaun:Pat British-is hard to justify. There is eTere a reasonable hope that the decline in profits of the ASSOCIATED BRITISH PICTURE COR- MkAT sh„ „ I°N Will be halted in the current year. In enrst three months advertising revenues from alt television service rose by 30 per cent.; goi °ugh the decline in cinema attendances is still could °II, the abolition of entertainments tax 3gs9111ean a rise in the net cinema receipts. At per cent (I. the 5s. shares return no less than 7.6 ,,. on the 60 per cent. dividend, which was covered' nearly 1f times. It is strange that inter lAlED TELEVISION, which has no cinema the sts, should see its 'A' shares selling at about cootjear's low of 30s. to yield 8.5 per cent. By revrast RADIO RENTALS, which has 220 branches cou`n'n11 television and radio sets throughout the letAtY (With a subsidiary making the actual shalcs rated so highly in the market that its 5s. tent's Yield only 3 per cent. on the 15 per of thdivid covered 1.9 times. This is the pick betw,` renting companies, but the difference vision -en a Yield of 8.5 per cent. on a tele- hat ,Programme equity and 3 per cent. on of programme
set-renting company seems difficult
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