The Washington times., 1930-05-27
power DEAL
SOON TO
BEGIN
General Activity in Market to
Occur When Holding Firm
Takes Action in Stocks
BY THE SPECTATOR

0NCo HOlIOII III OlOONo
BY THE SPECTATOR
I look for a sharp rise today
or tomorrow in public utility
shares, due to the prediction that
new holding company soon will
be formed to acquire substantial
blocks of Niagara Hudson Power
and Consolidated Gas stocks, i'm
portant investment groups.
There is very bullish feeling
regarding power and light and
natural gas stocks, together with
evidence in the market of accu-
mutation of such issues. In the
paragraphs below you will find
suggestions concerning outStand-
ing stocks in the public utilities
group.
Market in General
AS for the market in general,
i believe such news as the item
mentioned above should stimu-
late activity and bring general
up-sWing, together with a revival
OF public participation.
Resumption of public interest
will, of necessity, be slow and
gradual, due to the fact that
many small traders were badly
hurt in the last break, but new
crop of traders is certain to join
in the speculative activity as
soon as there is concrete evidence
OF business improvement.
At the close of the market
yesterday, there was considerable
profit-taking, which materially
reduced the days gains, and it
would not be surprising to see
a lower opening today. I would
recommend purchase Of sound
securities on all dips at this time,
and sales on rallies.
Public Service of N. j.
I firmly believe Public Service
of New Jersey will be one of the
strongest and most active of the
public utility stocks over a period
of three or four months, and
that bona fide investors who buy
it now and hold it until the end
of the year not only will receive
substantial dividend returns, but
will enjoy large appreciation in
the value of the stock. This
company is one of the most i'm
portant utility organizations in
the East, and must necessarily
take it's place in the Morgan-Bon-
bright Carlisle Superpower picture.
Already large blocks Of the stock
are held by the superpower bank
ers, and I would not be surprised
at an early offer for public SER
vice shares by United Corporation.
I still consider American Tele-
phone and Telegraph an outstand-
ingly attractive purchase either
for investors or spectators. The
company will be one of the chief
beneficiaries of developments in
the radio, television and motion
picture industries.
Engineers Public Service, Pfd.
Raise of Engineers Public SerV'
ice preferred has been SO con-
Sistent that considerable attention
has been attracted to the stock.
Enjoying Stone and Webster mar
agement, and rated as an A l in
vestment issue, the stock deserves
the attention of the investor who
likes to combine the speculative
element with his investment. The
cumulative preferred, with war
rants attached, also moves encour,
agingly, and with the expected
advance of utilities should show
good profits. The common stock
has been recommended here too
often to require further comment.
Any of the company's securities
is worthy of consideration by any
reader of this column.
Once again I would call at
tention to the investment and
speculative advantages of Borden
Company, one. of the leading
stocks i'll the food group. 1t made
a new 1880 high yesterday.