Investment Notes
By CUSTOS
ACTIVITY on the Stock Exchange is as frozen as the climate outside. But the price level is firm; for the good company reports which issue every week stop shareholders from selling. Even when the yield is low the promise of higher dividends keeps the market firm. AMALGAMATED ROADSTONE, for example, looks dear at 50s. 6d. to yield 2.9 per cent on dividends and about 5 per cent on earnings, but the chairman says that prospects are 'extremely promising' and that profits should show another 'substantial increase.' Shareholders might consider, how- ever, that Mr. Wilson might be Prime Minister before the next final dividend and might be taxing the increase away. On a shorter view I like the look of COPE ALLMAN. These shares have been steady for a long time at 32s. to yield 3.9 per cent but the year's results will be an- nounced this month and I expect them to be good. Some interesting developments are taking place which point to further expansion of this aggressively managed company.
The Tilling Group THOMAS TILLING has been the only industrial holding company I have ever cared to recom- mend. Its management has always been shrewd enough quickly to dispose of non-paying assets and acquire new growth. This year's preliminary statement reveals profits up by nearly 20 per cent before tax and by 30 per cent after tax. The dividend is raised from 21.1 per cent to 24 per cent on capital increased by acquisitions and appears to be covered about 1 I times on current earnings. At 24s. 1 fd. ex-dividend to yield 4 per cent I think Tilling shares are still worth buying—as long as Mr. Lionel Fraser remains chairman.
Topping Up in Beer
The greatly expanded CHARRINGTON UNITED has produced an excellent report with profits up by 16 per cent and has raised the dividend from 12 per cent to 131 per cent. After crediting in- vestment allowances the cover for the dividend Is about 1.9 times. Breweries seem to be a good pre-election investment—I cannot imagine Mr. Maudling increasing the beer lax and upsetting the pubs in addition to the small shopkeepers— and Charrington United at 14s. 9d. ex-dividend to yield 4f per cent on dividend and 7.4 per
cent on earnings is one of the cheapest on the list, 'Chartered'
Mr. P. V. Einrys-Evans, the chairman of the Intrristi SOUTH AFRICA COMPANY, should be more frank with his shareholders or with Mr. Kaunda, both. Northern Rhodesian Prime Minister, or with u9t1I- At the annual meeting he said that 'some discussions on mineral rights' had taken place but had not gone very far. Mr. 'Kaunda says that he can see no justification for 'Chartered' Continuing to take copper royalties out of the country. Mr. Kaunda is a reasonable man and to to reach an amicable solution acceptable Io both sides. But Mr. Emrys-Evans had better hurry. The shareholders meanwhile can take comfort from the fact that net assets are now equal to 80s. a share against the market price of 60s. As royalties still account for two-thirds of this company's revenues shareholders should not count on the dividend income being main-
tained.
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