Venturers' Corner
These are indeed days for the venturesome. I need hardly remind speculative investors that they must now add' a very serious political risk to the ordinary economic risk. With that proviso I feel justified in outlining the position of the Brush Electrical Engineering Company. The results of this undertaking in 1938 were frankly disappointing, net profits, after depreciation, amounting to the trifling figure of £1,983. Naturally, it was impossible to declare any, dividend on the reorganised capital and the 5s. ordinary shares, which were up to 5s. 9d. a few weeks ago, have drooped to 4s. 9d. At this level they are worth considering as _a lonf-term speculation, although I must enter the caveat that I am not looking for any spectacular increase in earnings this year. Brush Electrical is in a transition stage. During the second half of 1938 the board's efforts were concentrated on reorganisaton, and it may be assumed that this work ,,f adapting the productive capacity to an enlarged and ,tror,
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varied output will also have an adverse effect on the 1939 results. The real point, however, for those who are prepared to exercise patience is that the company has reduced its costs and is now getting an adequate volume of orders. Work on hand today is nearly four times that of a year ago and I should expect that next year's earnings will represent a very reasonable return on the reorganised capital.
CUSTOS.
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