The Washington times., 1930-11-24
The Answer

WeEeS beginning TO 11nu OuG
who bought all the stocks that
were dumped on the market in
those blue days early this month.
Electric Bond and Share was one,
its report this week revealing
that it had bought several hun
dred thousand shares of it's af-
filiated companies in the break.
United States Steel, I under
stand, bought a lot of its own
stock on a scale below $50 for
offering to its employees next
spring. Insiders took Wads of
American Can below 110. Amerl-
can Rolling Mills, I am told, took
its stock around 80. These are
Just a few. Many more corpora
tions were buying their stock
right along around the lows.
When you add to this foreign
and domestic investors, small fel-
lows taking odd lots, banks and
shorts, you have the answer to
"who is buying stocks"
Kelvinator is perking up and
looks like a play. Net for the
nine months was $1.18 a share
and earnings for the year ought
to be around 81. The company
is in good financial shape with
ratio Of current assets to nabill-
ties 8 to l. I hear those formerly
active in the stock are getting
little bulliSh on 1t and will pro
badly work it up with the rest
of the market.
Aircraft Denies RumOr
Funny how the market plays
hob with rumors that are given
SO much credence in financial
circles when they appear. Like
the one about United Aircraft
and General Motors. This sum-
mer gossip revived the old one
about Motors taking over Aircraft
and paying a share and half of
its own stock for one of Aircraft.
It was taken pretty seriously, too,
and had much to do with the
whirl Aircraft got above so. Now
the latter is selling below 80
while Motors is more than 6
points higher, difference of al
most Is points. Yet Aircraft in
siders at the time reiterated that
they would not take any offer
from Motors that they were much
more bullish on their stock.
Which strikes me as right for
when aviation comes into it's own
Aircraft will probably leave Mo-
tors tied to the mast marketwiSe.
Montgomery Ward is coming
through with a bang. Looks like
the pool is marking it up. The
stock points higher, but I wouldn't
follow it here. The company will
have to make some real money
the rest of this year to keep out
Of the red and agricultural pur-
chasing power, the backbone OF
it's business, is far from what it
should be.
We Caution In Motors
The time has come to think
seriously before making any COM
mitments in motors, for indis-
criminate purchases at this time
are likely to be costly. I pre-
dicted a turn in them a week
ago. and they have come through
nicely.
One must look further ahead
and give serious consideration to
rumorS of what Ford has up his
sleeve. The Street is quite con-
vinced that Ford will come out
with a larger car for the spring,
probably an eight-cylinder model
selling somewhere about $1,000.
With a tremendous dealer or
ganization and the success of the
present car, new Ford competi-
ton takes on rather serious hues
for other automobile A1anufac-
turerS.
Even if 1881 proves a normal
year output will be somewhere
about 100000 cars below last
years peak which means that
some one will lose. Add to this
the new Ford "bugaboo" and the
need for caution in buying auto
mobile stocks is obvious.
Which brings up Briggs. The
company has done a fine job Inls
year, thanks to Ford business, and
should show around $3.50 a share
for the IL months. It is right in
line to benefit from further Ford
business, and has an ambitious ex-
panSion program abroad. Market
sponsorship is good and / believe
the stock will get a real ride ole
Of these days.
Remington-Rand worked higner.
recommended the stock here at
16 on Thursday-there has been
lot of good buying in Columbia
Graphophone. Action of the stock
recently hints at resumption Of
pool accumulation.