Investment Notes
By CUSTOS
Tin, Stock Exchange welcomed the Budget and prices generally advanced. Prices of the confectionery and soft-drinks shares were marked down, but motor and component shares re- sponded tO the lower purchase taxes and tobacco shares to the relief that no further tax on cigarette-smoking was imposed. The speculative gains tax was regarded as a bad joke and the only misgivings heard were among the new issue houses, who saw stagging and underwriting threatened. Although the Budget gives no stimulus at all to the economy, the Stock Ex- change is more than ever convinced that later in the year there will be some expansion of trade- even without Mr. Lloyd's expected boom in exports-and that there is therefore no reason why the genuine investor, who buys on longer than a six months' view, should not now be fully invested. I give a few shares which are likely to attract public support:
Wood Han
I have pre ously drawn attention to WOOD HALL TRUST, a finance holding share which is now considered by one firm of brokers to have a 'considerable potential.' I was chary Of recom- mending it last year when it made a loss On its
I limb Present Div. Y leld
1961 Price 74
Assoc. Engineering 5s. 16s. tid. 15s. 41d. 131 4.3 Lamson industries 55. lIs. 9d. 28s. 6d. 17 2.8 Reckitt & Coleman 99s. 7%. 6d. 12 3.0 John Sommers 68s. tott 50s. 15 6.0 Wallpaper Mfg. 5s. 27s. 101d. 21s. 9d. 16i 3.8
hire-purchase _subsidiary (Peter Loug), but since June this company is believed to have operated on a 'break-even' basis. Wood Hall derives two- thirds of its profits from the building and allied trades (Davis Estates and Osborne Stevens). Its Other activ ities include drink (Sandeman, Mous- sea ON erscas trading (principally in the East), bill-broking and security dealing. It sold its 39 per cent. holding in Hewitt Brothers to United Breweries for about i'21 million and this money is no■■ waiting for investment. The merchant banking house of Samuel Montagu has now an interest in the company and this interest may be increased if it exercises its option on 2,000,000 Wood Hall shares at Us. before May, 1962, or 22s. before May, 1963. For the year to June, 1961, profits ‘l 'ere down, but in the current year la June, 1962, earnings are expected by this firm of brokers to rise to about 28 per cent. On the 10 per cent. tax-free dividend the 5s. shares at 22s. 6d. yield 3.7 per cent.
Charterbridge Convertible
Among the recently issued convertible deben- ture stocks the only one now remaining without a large premium is CHARTERDRIDGE 61 per cent. convertible, 1992-97. It is now 50 per cent. paid at 10s. per- £1 unit. Only 50 per cent. of the stock is convertible over the period 1964 to 1967 at the rate of 125 shares of 2s. for £50 of stock. Chartcrbridge recently took over Da \ is Securities. an offshoot of the Davis Estates -of Wood Hall.
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