Venturers' Corner It is typical of the unreasoning pessimism which
at present controls Stock Exchange prices that the news of an adjustment in the Argentine exchange rate should be the signal for an immediate marking down of quotations in all Argentine securities. The adjustment does not imply any deterioration of Argentina's trade balance or any adverse change in the position of British companies operating in Argentina, and, subject to the risks attending all companies with oversea connexions, I now regard one or two shares as attractive purchases. As a speculation the LI ordinaries of the Forestal Land, Timber and Railways are worth considering at 22S. 9d. This company has large interests in manufacturing tanning extracts in Argentina, and paid a dividend of 8f per cent. out of available earnings of 14 per cent. for 1936. The report for 1937 is not due until May, but should show a further rise in profits. Last year quebracho, the company's principal product, rose from roughly £16 to £18 a ton, and although there has recently been some holding up of new orders, the tanning position is very strong.
An interim dividend of 3 per cent. was paid in December, and shall be surprised if the final dividend is not at least 51 per cent., making 81 per cent. in all. On this basis the indicated yield is just over 7 per cent., which is an adequate return in the light of the company's excellent management and strong liquid finances. The consolidated balance-sheet shows cash at over L800,000, and £1,153,709 at credit of
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