3 MARCH 1939, Page 50


If one can judge from the results just disclosed by the English Electric Company, which, in spite of low selling prices, achieved a record profit last year, the electrical equip- ment makers have been, and are still, working in remunera- tive conditions. English Electric £1 ordinaries, whose virtues I have often extolled in these notes, have risen to 32s. 6d., ex the rights to the new issue on bonus terms, but other shares in this group have scarcely moved.

It seems to me that English, at 32s. 6d., are still under- valued in relation to Associated or General Electric, even allowing for the stronger financed of these two companies and the better marketability of their shares. I feel even more strongly, however, that for investors to whom a free market is not of prime importance the best value for money in this group at current prices is Electric Construction. At 34s. this company's £1 ordinary shares yield nearly 71 per cent. on the 1937 dividend rate of 12, per cent.