The Washington times., 1930-08-11
The Limelight

an these trying days the Street
has its eye glued on the action Of
the pivotal stocks. The big four
are Steel, Radio. General Electric
and American Can. All seemed
well bought on the way down Sat
urday, but General Electric and
Radio acted better than the other
two. They gave way more stub
bornly and showed gains at the
close as against losses for Can and
Steel.
Radio acted especially well in
view of the uncertainty surround
ing it's annual report and it's old
time sponsor, who bid 3834 for TO-
O00 shares on the floor during the
de4uge Friday, was said to have
been steady buyer Saturday.
Both the investor and the trader
should watch these four stocks for
a clue to the markets immediate
trend. They are the ones the Big
Fellows" rally to first, and they
will lead the market. -
steel's untitled tonnage report
for July showing a gain Of 53,991
tons gave stocks a bit of back
bone. The Street breathed a sigh
of relief at the increase, for a
decline in combination with the
drop in activity in the steel in
dustry the past week might have
had started off another smash
The gain is encouraging, if not
particularly bullish. The big point
is now whether steel activity is
going to show any important rise
in the next month or so.
The break of the last two days
has put the utilities down some
where near their truer levels from
a price ratio to earnings stand
point. Spectator has consistently
pointed out the generalization Of
the power and light stocks, and
in the last two weeks warned that
they were in for slam.
do not think that all the sell
ing of the utilities is over, and
adyise strongly against buying
them at these levels. They still
have the rate reduction tangle and
the club of Federal investigation
hanging over their heads. The
leaders, however, will be in a buy
ing range for long pull if they
go much lower.
Watch Consolidated Gas, United
Corporation, Columbia Gas, Elec-
trio Bond and Share, Standard
Gas, Public Service of New Jersey
and National Power. Consolidated
Gas at 95, Columbia Gas below
55, United about a., Standard
Gas a little above so, Bond and
Share about 10, Public about 81
and National Power and Light,
American Water Works or North
American for the time being.
Their market action indicates
they are still under heavy pres
sure.
United Carbon is a speciality !
would advise staying away from
for a while. The stock is attrac-
tive in that it is a speculative
medium and fast mover. Earn
ings, however, are far below last
year and will have to pick Up in
the last six months to cover the
So dividend. United's natural gas
properties give it an added talk
ing point, but the question is
being raised If Natural Gas isn't
being a bit overdone. We are
likely to have over-expanSion
there, too. if the present race
keeps UP.
Much was made recently of the
stock exchanges announcement
that prices were now down to
1925 levels. It is hard to see
what its importance is except as
an interesting statistical fact.
Stocks fundamentally reflect
their current position and their
future. They broke wide open in
october and November because
business was getting bad, and
they are down now because earn
ings Of most companies are way
down and the outlook is obscure.
Even now current levels Of a
great many stocks can be queS-
toned on the immediate pros
poets. We might say with the
poet Where are the SHOWS Of yes
terday?" and ask about the
stocks that were at the top Of