Evening star., 1924-12-31

| Il k companies mar
| - keting new issues
- ,----..--. have abandoned
W. nHh the idea that a
better market can be found on ex-
changes other than the New York
curb.
The reason for this is twofold-
first, the increased volume Of trans
actions on the New York Stock Ex-
change has taxed it's facilities to the
utmost in order to handle securities
already listed; second, the removal of
the New York Curb Exchange indoors,
which took place June 21, 1921, with
new and adequate facilities, elimi-
mated the necessity of removing
| stocks and bonds once q market had
| been established.
Radio Stocks Score Large Gains.
The changed situation has been en-
phasiZed by the vast amount of new
financing put through during the past
year. With only one exception, stocks
of the leading radio companies are
| dealt in On the New York curb, and
no other group has enjoyed such
activity and price fluctuations fol-
lowing their admittance. 1t is only
necessary to glance over the present
quotations as compared with where
| these stocks were selling earlier in
the year. For example. Dubilier
Condenser and Radio at the present
| quotation, well above 60, compares
! with 10l2, the figure at which 1t was
| quoted IL months ago. Hazeltine
Corporation, around 40, compares with
the low for the year OF 13. Ware
| Radio, well above 80, is % points
| higher than it's low, while Tower
Manufacturing, at 26, compares with
| ls12, and all are at practically their
high records for all time.
| These are only few instances of
the appreciation in value of radio
company shares. However, advances
such as these over a comparatively
| brief period are not always healthy
| signs. Unless there are special rea-
| sons such reckless upbidding usually
spells disaster and ultimate heavy
| loss.
Nevertheless. the radio shares have
gone forward rapidly under public
| demand almost unprecedented. Look
| ing back number of years, 1t is
not difficult to recall mining booms
that have brought about frenzied
| speculation in the respective stocks,
| and the development of oil pools re-
sulting in a veritable flood of buying
in this class of shares. The same
| can be said of any new and uns "a
/ soned industry where the value of
the stocks concerned is mere con-
lecture, and can be determined only
by earning power.
Further Expansion I'm 1928.
Whether or not present prices for
radio stocks are justified by earnings
| still remains a. question. No one can
dispute the fact, however, that during
the past two years the industry has
| expanded to enormous proportions
and that the outlook for the coming
year gives every indication of fur
ther progress. Its growth has been
SO rapid that it is impossible to COM
pile entirely accurate statistics. The
data available consists largely of
rough estimates. 1t offers, neverthe-
less, some idea of how great the ex-
pansion of the past two years has
been. Surveys made by qualified au-
thorities indicate sales totaling
s35O.000.00o for the year 1924 alone
Total sales for 1928 were about S120,-
100000. or 100 per cent above those
for 1922
| The buying at the present high
levels appears to be coming chiefly
f1om sources contending that the
price appreciation of the past year
has fully been warranted by the rapid
growth in the industry. Such i'm
provement in other groups on past
occasions has called for some sort
OF reaction. if only on technical
grounds. This is usually brought
about by the desire of the speculative
element to avail itself of accumu
lated paper profits, and once selling
of this character is detected, the pro-
fessional contingent working on the
side of lower prices is always eager
to accelerate the decline.
Even Higher Prices Expected.
If the market action of radio
| t2l
of what is expected in the future
there is every reason to look for even
higher prices. But before coming
into the market at the present level
considerable caution should be exer-
clsed and attention given chiefly to
the capitalization of these companies.
While in most instances issues hoated
during the past year have command
ed price well above that at which
they were offered for public subscrip-
} tton, 1T is doubtful If all these sharp
advances have been justified.
While most concerns manufactur-
ing radio sets and apparatus are rep
utable, the industry still has its weak
spots. A number of companies al
ready have established their stocks
|, on a regular dividend basis, and ex-
pectations are that before the end of
the first half of 1926 numerous other
stocks will be added to the dividend
list.
J On December 19 directors of the
Dubilier Condenser Co. did what was
expected in offering to present stock
holders the right to subscribe to l
additional share of common stock at
$50 for each 10 shares held This
was significant in view OF the fact
that on the day the announcement
was made the stock was selling at
s66 share.
Oils Prove Disappointing.
Perhaps no other group during the
past year has acted as disappointingly
as the oils During the early months
of 1924 the industry found itself
faced with the serious problem of
overproduction. This situation was
brought about by two causes. First
the demand from the automobile in
dustry was unusually late in making
itself felt, with the result that COM
panies which had been carrying vast
amounts of crude in storage, were
compelled to mark up inventory
charges and carry the product over a
longer period than originally in
| tended.
Second, the opening up of new pools
and increased imports forced a con-
siderable reduction in prices for both
crude and refined, with the result that
stringent prorating measures had to
be put into effect, with the intention
of discouraging production.
This prorating program began to