The Washington times., 1930-11-10
Radio

Radio
Radios reports showing
deficit of over $3,000.000 for the
nine months was not reassuring
IS to the balance of the year.
The company will have to do a
smashing Christmas business to
cover preferred dividends require
ments alone. Some believe it
will.
Current production is now
close to capacity, and am told
radio is keeping output rigidly
down to dealer demand. Still,
this is rather blind since even
the dealer doesn't know how he
will fare over the holidays.
Directors expressed confidence
III the future by continuing pay
n1ent on the preferred B even
though not earned. The stock
failed to reflect this market-wise
and is still selling at better than
10 per cent basis. AS for the
common, current price of around
IS makes it just another low
priced gamble with however, good
long pull prospects.
Decline of Consolidated Gas
and United Corp. to new lows is
Being taken in the Street as lack
Of confidence in the situation by
its sponsors, who represent the ma
tion's leading bankers. The for
n1er is still above the panic low
ef last year but United is under by
over 2 points. Action of each is
y being closely watched for an indl-
cation of aggressive banking sup
port.
lJJnited States Steel at current
iegels is selling at about IA times
earnings. Net for the nine months
was we'll over So a share and the
fourth quarter should make up the
q needed difference. Earnings this
year have been helped out by
big tax refund. but Steel so far
has covered it's ST dividend require
ments on the common IN every
uuarter, Just nosing in by a lew
cents in the last three months.
sThis is far from bad when you
consider that Bethlehem, the sec
oud factor in the industry. earned
less than half it's dividend re-
ouirements in this quarter while
Republic steel, the third largest,
ran up big loss. OF course,
many are wondering now how
big steel i; going to fare in the
current three months, what with
low opera lions and unsatisfactory
prices. At that Steel is getting
cheap, and its huge cash re-
sources assure the dividend for a
long time to come. Steel should
be one Of your choices when the
buying time comes.
There is steady investment alb
sbrption of American Tobacco at
current levels. with good deal
OF buying waiting for it to go
lower. The stock is selling at
about 13 times estimated earnings
for the year. and gives a return
of better than Az per cent.
There is a good chance for an ex-
ira before long. for the company
In the past has paid out IS per
cent of its net to stockholders.
Bank Stocks
Bank stocks have been going
on the bargain counter, too. At
current levels, Is bank and trust
companies in the city are selling
at II times known earnings. while
the average yield is 4.O18 per
cent against 2,819 per cent two
months ago.
Shrinkage in the open market
value of these institutions since
the middle of September has been
about 80 per cent. which is prettv
severe deflation. Bank stocks
have been feeling the weight of
distress selling as have other Sc
clritieS, and they will show the
same rallying mower when this IS
over. / would rather have the
stock of one of our leading banks
than a leading industrial. for /
believe the banks will come out
Of the depression with a lot more
( to show. Banks have been help
ing quite a few distressed brokers
and others out recently, and are
not unlikely getting little
gravy" for it.
/ am no longer "sour" on Elec-
trio Power and Light. At current
levels the stock seems to have
paid for all the "sins" of its un-
warranted rampageS this spring
and summer. Electric Power has
one of the biggest stakes in
natural gas through its control
Of United Gas Corporation. In
addition. the stock currently is
selling at less than Is times
napVainoe which isn't had 7 All.