The Goldfield news. [volume] (Goldfield, Nev.) 1904-1911, 1905-04-14


vest in 10-cent stock with real relish, al
though the capitalization may be 81 ,000,-
600, and the par value of each share
81. O0-where he would pass a $4,000
pro position with 500 stock at par.
The man of means would prefer the
latter, but kindly remember that the
man of means prefers the close corpora
ton to the "free-for-all."
When dollar stock gets to thirtv-five
or forty cents per share, it has a per-
ceptible limp, except in companies
where a real, live boom is on. If the
ordinary course of events is transporting,
the stock should be hammered hard at
Is, 20 and % cents.
Another reason for the popularity of
cheap stock is that it is almost certain
to experience a raise-or several adj
vances. That means that, if the inves-
tor is so inclined, he car dispose OF his
holdings, or part of them, and buy
again, in anticipation of another adj
ance.
The argument against this procedure
is the nefarious stock scalper.
He is the eternal pest hat brings
honest promoters out of their dreams
with a sudden start. He camps all
along the trail, with a knife in his
hand, and if he doesn't tap an artery
every night, it is an evening poorly
spent.
But again-the stock scalper rarely
creates havoc except when a company
reaches that dead calm that presages
decay. Then the broker gets busy. II
is also active in corporations that have
lost their keen grip on their sharehold-
ers. There is a remedy, however, that
l shall write of shortly, that is effective.
But it's ~delineation requires a detailed
explanation, which cannot be given
here.
| know a promoter who has brought
an industrial to successful issue, and
who has never had one share of hi
stock in the hands OF the brokers. lii
terest has never Jagged and he has lived
up to the golden rule OF being Of real
help to his stockholders.
| have known this man to dig down
into his Jeans and buy in stock where
the stakeholder was really needy. At
the same time this man did not draw
one penny in salary or commissions
from the company. His holdings were
large, but they were to earn for him
Just as the holdings of other stockhol-
ders must earn for them.
1t takes moral courage to 60 at a
thing in this manner-much more cour-
age than the promoter usually possesses.
Weigh all things carefully and ann
sure that you will find that the broker
has no better than an even chance
when it to the low priced stock.
That being the case, the company
that will sell its stock sufficiently low
but not ridiculously low-will find
buyers, provided the proposition has
merit. and the men back of it are hon-
orable.
Requirements change. What was an
excellent scheme tv o years ago will not
work now But the relative price OF
stock does not change to any extent.
1t is based on the same principles that
prevailed in the earlier years OF tinanc-
ing.
One of the best-known promoters in
this country has an industrial PROPOSE
ton of untold merit. 1t has to do with
the utilization of one of natures most
persistent forces, and it works. But
stock in a company exploiting it, could
not be sold at $40 per share-par value.
| am satisfied that it wasn't the propo-
sition, because scores OF men answered
the advertisements. They wanted the
machines, but they didn't pay any at
~tentiOn to the stock.
That same proposition is going to
make a large winning some day. 1t Is
going to do what steam did. 1t is going
to make a few millionaires. But l
doubt if it can be built up among small
investors at the $40 price, no matter If
its merits were ten-fold greater.
Among ~financiers, stock in it might sell
readily at 800 per share. Financiers
will not pay any attention to the ex-
ploitation advertisements. There is the
gulf. Ii you can bridge it, you shall
have a place in history-a niche, mind
You in the Hall of Fame.
Stop trying to create conditions. Seize
upon those already existing and make
the best of them. There are are a few
hard and fast rules in the promoting
game. but one OF those few is low-priced.
active stock. 1t must be active or 1T is
nil.
If O have complained that times are
hard, stop right there. Times were
never better. No poor" YOU cry in
@~-a % Nh