The Washington times., 1931-01-07
Be Conservative

While the current upturn has
1rStilled a considerable degree OF
buIIishness in brokerage quarters,
certain sources are not so enthus'
lastic over the immediate prospects
of the market. One conservative
house points out that the advance
in the Dow Jones averages from
the low in December has now
amounted to 20 points, which, in
its opinion, amply fulfills the re
Quirement Of the year-end rally
which is usually present in the
market in both good times ana
bad. However, it does not expect
this rally to top in a single day,
but looks for a period Of several
days Of apparent strength, before
q reverse movement sets it. 1t
urges. therefore, the liquidation Of
all trading lines during periods Of
strength.
Wellinformed quarters hold to
The belief that in actual business
Developments no basis yet exists
for the expectation Of a persistent
rise.
Steel Outlook Mixed
In spite Of the slow improve
rnent in the steel industry, and a
ragundption Of largescale improve
n1ent by most Of the big automo-
bile companies, the outlook Tor
actual business profits for these
two larger industries is quite mixed
and will not be clear until the
first quarter is weH advanced
only an unmistakable rising treno
Of business and profits can create
a btlying power sufficiently potent
and eager to follow rising STOCK
market quotations.
Definite Base Established
au,Ifish interests regard as OF
PARTICULAR Importance, the fact
fnat according to technical lndl'
cations, a definite base was estao.
lished in December. It is STRESSED
tliat after the lows Of December
II, the secondary break met re-
Sigtance from 3 to points above
and that on the current rally
stocks have gone higher on the
average than on the first rally
which followed the lows Of De
celnber II.
Standard statistics regards the
following q common stocks as
among the most attractive new
available on the basis Of yield al
forded at present quotations,
American Chicle, with estimated
earnings Of $4.30 per share. yield
ing SIS per cent; Atchison, with
$3.50 estimate earnings, yielding
SIS per cent; Atchison, with
$3.50 estimate earnings, yielding
$50 per cent; Chesapeake and
Ohio, $3.50 estimated, yielding
6.09 per cent; Continental Can,
$4.75 estimated, yielding per
cent; General Foods, $3.75 eSti-
mated, yielding 6 per cent; Gener-
al Railway Signal, SITS estimated,
yielding 6.76 per cent; Hershey
Chocolate, $3.50 estimated, yield
ing $50 per cent; Loose WileS Bis
cult, $4.25 estimated. yielding 5.53
per cent; Reynolds Tobacco, $3.50
(SClInaCSQ, ylelQ1ng 1.S1 per cent,
Union Pacific, $17.3O estimated,
yielding $50 per cent, and United
Biscuit, $4 estimated, yielding 5.72
per cent.
Stocks Turnover
A statistical survey Of the total
dealings on the New York Stock
Exchange during 1880 reveals
that 40 stocks accounted for SO 1893
per cent Of the years volume. In
the case Of two of these 4S
stocks, the outstanding number
Of shares was so small their en-
tire stock capitalization was
turned over several times. They
were Case Threshing which &C.
counted for lit per cent Of the
years volume and was turned
over 4S.9 times, and Vanadium,
which furnished 1.78 per cent of
the years volume and was
turned over 38.2 times. ....
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