The Washington times., 1930-09-27

Fox
Impressive strength in Fox and
Loew's indicates there is some
thing doing in both. Each has
held superbly throughout all the
selling of this week. Perhaps
Loew's statement of earnings has
something to do with it. but !
understand there is more than
this. I hear the Fox-Loew's deal,
first reported here two months
ago, Is nearer consummation than
is commonly believed.
Fox'S offer to Loew's will be at
least ~ shares for one, but l
hear it may be about 2 for l..
The latter seems logical since
Loew's earnings are running al
most double those of Fox. In ad-
6ition the Loew's minority stock
holders probably wont be in
duced to part with their holdings
at less than a 2-for-l cratic. con.
slider both stocks a buy around
current prices. Each is selling at
less than eight times estimated
. net for the year, which makes
them cheap on earnings.
am told that London had
been buying Columbia Grapho-
phone. The stock certainly had
been acting well during the reac-
ton. Well-informed people l
know like the stock. and the
feeling is reviving that there Is
more to Columbia than its sell
ing price would indicate. Last
week I said here that the stock
looked like a good speculation
around II. repeat this recon-
mendation today.
Support
The market is obviously meet
ing better support. hear tha'
before the close some real bank
ing buying made its appearance
in the leaders, but if so 1t isn't
aggressive enough yet to indicate
the break has run it's course.
There are many individual cases
Of support, however. Steel hasn't
been acting at all badly consider
ing the pressure it has been
subjected to. Can wavered bit
but turned around. Consolidated
Gas continues to be well bought.
The Electric Bond and Snare
stocks are acting better. am
told that Bond and Share is
supporting its affiliates now,
especially ; Electric Power and
Light and American and Foreign
Power. In the case Of the latter,
/ hear the supporting order was
for 10000 shares. Even Vana-
dium indicates steady absorption
in the face of almost universal
bearishneSs on the stock.
And American Water Works
continues to give a sterling per-
formance, dipping when the bears
put the screws on but swapping
back quickly when the pressure
is lifted. Insiders are still oulllsh
and am told Water WORKS
won't break 80 unless the market
goes to pieces.
There is no doubt that there
is some deal brewing, but no I'M
mediate announcement IS ex-
pected.
American Smelling
American Smelling broke a new
low for the year. indicating some
apprehension on the safety OF
the S4 dividend. This hardly
tibes with the statement of Simon
Gueeenheim when he sailed for
E,irope, on June Z. Mr.. Guggen-
heir1. president of the company,
stated then that earnings for the
first four months of this year
were better than So on the COM
mon and that met for the year
would be about Sc a share. He
Also declared then that the divi-
dend was sound and that it would
not be changed. Smelling earned
$1,000 q share last year.
Cash assets on December 81,
1929, were $25 5,5O3 800, while sur
plus then was $44,281 900. Book
value of the common was $65 5.96
O share. This should reaSsure
those who own Smelling and is
an excellent reason for buying