The Washington herald., 1920-04-08
SHORTS CAUSE
/ SHARPUPTURN
Many Leading Issues Dis
play Rapid Advances on
Heavy Short Covering.
STUDEBAKER A LEADER
This Issue With Stromberg
! Carbureter Score Enor-
nous Gains.
STUDEBAKER A LEADER

New York, April T. The stock
market swung into full stride on
the upward turn today. and prac-
stically all leading issues scored
substantial advances. Some appre-
hension was felt in the early trad
ing over the meeting of the Fed
eral Reserve Board at Washington,
but this proved an ur!inportant ele-
ment later in the day.
Close observers are now Of the
opinion that prices will go very
much higher. basing their belief on
the action OF those who have been
heavily committed TO the short side
of the market. The shorts in Steel.
for example. were said to have been
exceptionally large buyers of the
issue both yesterday and today. The
same condition of affairs was no
ticeable in Republic Steel and other
leaders.
Stromberg Runs wild.
Those who have followed this
column need not be reminded of
what was said of Stromberg when
the stock was selling around IS.
Its 35-point advance since then
! should be some consolation to those
who took advantage of the facts
mentioned at that time. 1t has
been pointed out that Stromberg
was primed to follow Stutz, and
the position taken at that time was
the result of a careful analysis of
the entire Stromberg situation,
based upon facts bearing upon the
Sfock'S nnsitinD Wall
the intrinsic value behind it. These
were undeniable facts. So far,
Stromberg has followed along the
lines predicted. Its present market
position still seems strong.
Studebaker shorts Hard Hit.
The shorts in Studebaker were
in a trap at the opening of the
market. and in their endeavor to
cover commitments forced the is
sue to an extremely high level
Losses were tremendous. and it is
understood that the interests in
control Of. the Studebaker market
will show little mercy from now
on. The short sellers have been
playing around Studebaker for sew
eral weeks, and the pool operating
in the stock has been pretty well
posted on what was going on. Nat
urally| the stock dividend author
lied yesterday played an import
ant part in the action of the stock
today. but this. it is said, was
planned just at the proper time. At
least the shorts are now of that
opinion They are sorry lot.
Republic Steel Discussed.
Considerable gossip was heard on
Republic Iron & Steel. 1t seems to
be definitely understood that Re-
public will shortly be the leading
unit in a gigantic steel merger. 1t
will take in some of the other i'm
portant operators in the Youngs-
town district. In this connection,
IL may be mentioned that some
time ago it was rumored that Re-
public and Crucible interests were
considering the advisability of
coming together. Just how far this
matter has progressed is not gener-
ally known. but developments along
this line would not seem out of the
question. Naturally, discussion of
this character led to other re-
marks. principally Republics pres
ent market position. Short commit
ments in this issue. it is under
stood, have reached large propor-
tions, and it would not surprise
many to witness another sharp up-
turn in the stock such as occurred
last fall.