The Washington times., 1930-11-07
A. Bit Of Cheer

4
still to stay out.
A Bit Of Cheer
The week found operation OF
the steel industry as a whole of
3 per cent more to below 50 per
cent Of capacity. The likelihood
Is. that further reductions viii
be witnessed the rest OF the
month. Yet seasoned steel oo-
servers lend a little cheer to the
situation by predicting an up
turn next month. They polnI
out that about 100000 tons OF
equipment business is in the
offinr and that it can't be de-
layed much beyond the middle
Of December.
In addition, the. automobile
makers will probably be buying
steel more freely for production
Of new models to get themselves
In position to take advantage OF
the demand the automobile show
is expected to stimulate. Ran
buyinr and structural steel
awards are being maintained at
good rate. ALI In all. the
situation isn't nearly as black as
pictured. Since the market
would probably do jig or two
If it got one real bit OF gooo
news, anticipate that stocks
viii have seen their lows by the
end Of this month.
Assurance was given yesterday
that the Commonwealth ana
Southern common. dividend would
he paid, but this didn't help any
market wise. The stock made a
new low at 8. Yield at this Zig
ure is about 61a per cent which
Is pretty high for utility. Ap-
prehensiorS about the dividend
won't be allayed until the com.
pany shows its ability to cover
the 60-cent rate by more than a
few cents margin.
Motors
General Motors was under
pressure all day. There has been
O lot of disgusted selling in the
stock for the last few days on its
showing of only So cents for the
third quarter and the fear that
the fourth quarter won't be much
If any better. There was also the
announcement that Chevrolet had
cut prices on its new line of cars
which it will introduce Saturday.
Furthermore, reports from the
automobile industry indicate that
at least two and probably more
manufacturers are going after
the IL and 16 cylinder business.
Yet that must not lose sight of
the fact that General Motors will
earn its dividend this year, an
achievement in itself, and that
the So dividend is probably safe.
Motors should do much better
next year if things are anywhere
near normal. In brief, this Is no
time to get beariSh on the stock.
Regarding dividends the head
of Mack trucks is quoted in an
interesting commentary on the
current situation. Mack is now
selling on about a IA per cent
basis. When asked whether the
current rate would be maintained,
the official is said to have re.
piled, pointing to the huge cash
surplus, why did we build this
up If not for times like these?"
Minus Signs
Business equipment stocks were
freely sold, with National Cash
Register A and Remington Rand
under special pressure, both max.
Ing new lows for the year. Bur.
fotghS NAddiag Machine eQualled
its low and International Bust
ness Machines dipped over q
point. All but Cash Register
more than made up their losses
before the close.
Report Of Renington Rand.
showing only 4 cents per share
for the third quarter, probably
was responsible for the selling.
Remington net for the nine
months is $1.27 a share and it's
cash position is excellent. AS
stated here before, I am told
that the current $1,6O dividend
viii be maintained.
also hear that Cash Register
directors still intend to keep the
stock on a So basis for the
present. Dividend safety is not
0 factor In either Burroughs or
Business Machines. The latter,
especially, is earning its dividend
about twice over, and is likely
to pay some sort of an extra
this year, it is understood.
The rails have been acting
soggy on fears Of dividend cuts
due to reduced earnings this
year. Southern had another
lapse, making a new low year
despite assurance that the 50
dividend was safe this year.
Erie has been under steady pres