Dutch treat
what should come floating through my letter-box, showing a touch of class to the gas bill, but a letter from United Consultants Securities of Amsterdam. 'Dear Investor,' writes their Miss van Laake, 'we learned that you are interested in stocks with a high growth poten- tial . . . .' Well, yes, Miss van Laake, and the winner of the 3.30, too. Do you know something the rest of us don't? United Consultants think they do: ,`Our analysts will check out every investment opportun- ity to the best of our ability, making it possible for you to get in a stock at a low price-level before it takes off and big profits are made.' They pass on the word in their weekly newsletter, which costs $90 for six months, except that Miss van Laake offers it to me for nothing. Just fill in the invitation, and pop it into the printed envelope which will wing it back to the Herengracht (smart address, that). Why such generosity? 'We hope after you've seen the quality of our recommendations you will make your transactions through us. But that's up to you.' What could be fairer? All that would worry me (and, no doubt, would worry United Consultants too) is the sort of company they are having to keep in the Herengracht these days. First Commerce Securities, for instance, who have spent much of last year on the cross-channel telephone to British inves- tors, passing on their share recommenda- tions, one example being Devoe-Holbein Internation B.V. This is a high-technology company, working on ways of treating waste material, and, as is the way of high-tech companies, was, when last heard from, losing money. Its shares are said to be traded in the Dutch over-the-counter market (that is, not on a recognised stock exchange), and the principal traders in them are First Commerce Securities. Some investors have found that the price when First Commerce is selling to them is not necessarily the same as the price when they wabt to sell to First Commerce. Other Dutch-based dealers have been proffering similar advice to British investors. They are, of course, outside the scope of the British laws and codes for investor protec- tion. It would be good to know that United Consultants are taking a lead in cleaning up the Herengracht, but until that is clear, I do not think I shall fill in their invitation. They might at least have stamped the envelope.
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