3 MARCH 1939, Page 52

Venturers' Corner Speculative investors who do not mind going without

income and exercising patience in the hope of reaping a capital profit might do worse, I think, than re-examine the position of the R.M. Realisation Company after the recent repayment of 3s. 9d. per share. This company, as its name implies, is simply concerned with disposing of certain assets still remaining from the gradual liquidation of the old Royal Mail group, and is now approaching the end of its task. Its capital consists of x,000,000 shares now quoted at 4s. each, so that the assets are valued in the market at £200,000. Is this too much or too little? My own feeling is that time will show that the current market appraisal of the prospects is very conservative.

Of the assets still awaiting disposal the two most important—there are many bits and pieces—are roughly £70,000 nominal of Union-Castle ordinary stock and 325,000 Li shares in Anglo-Foreign Properties. At today's price quoted on the Stock Exchange the Union-Castle holding, is worth some £40,000 which, ignoring any value attaching to the various bits and pieces, leaves a balance of £160,000 to go against the Anglo- Foreign Properties share- holding. That implies a valuation for Anglo-Foreign Properties LI shares of just under Jos. each. I do not pretend to know what the assets of Anglo-Foreign Proper- ties may be expected to fetch, but it would not surprise me if the company's capital is fully covered in normal condi- tions. Consisting chiefly of freehold properties in Glasgow, Manchester and Southampton, they will obviously be worth much more in a year's time than to-day if politics allow trade and financial conditions to improve. For this reason I feel that the R.M. Realisation Company, anxious as it must be to complete its job, will choose to nurse its remaining assets for a while in the interests of shareholders. In reason- ably good conditions I could foresee a break-up value for R.M. shares of nearer 6s. than 4s. each. CUSTOS.