The Washington times., 1935-11-18
AVOID GREED, WATCH
EARNINGS, DON'T TRY
TO TRADE E'-HANEY
Bv LEWIS HANEY

NEW YORK, Now 18-After dipping Tuesday, the stock
market last week vigorously. The initial selling
checked Wednesday, and the market opened on gap
Thursday forging ahead to highs for the Friday
and Saturday.
The market was very broad and the volume of trading
times to the highest point in over year
think that all the indications point considerably higher
prices eventually OF the inevitable time when there
will be sharp shake out drawing nearer and the higher
prices get cautious should become But unless
the Roosevelt Administrations arbitrary tariff tnkerng
too disturbing when find out what the Canadian deal is
Tuesday do yet definite indications of such shake
out And, as say the longterm trend of the market is
upward
The strength in the has been impressive The
participation of the railway issues last weeks strength
of the drags in sentiment.
That sentiment predominany bush clearly proved by
the way stocks up the tape active and the
fact that the most active stocks each day show gains
The rise in brokers' loans indicates increased speculative
following and ps" and activity in doubtful manpulative
stocks evidence period of buying to be followed
in due by stiff shakou is ginning But if you will
get good airlyprced Stocks within your MEANS and hold
them the growing initiation will eventually bring gains
Ny advice ~ to avoid greed and overbuyng and (2 not
to try to trade" Buy earnings share, basis for
dividends, and count on reasonable rise in value
There plenty of stocks of this sort have just my
eyes down the list casually easily counted dozen sound
companies whose pay 81 So dividends and
priced $21 to $52 share They yield from 39 per
to over per cent the price.
rough composite picture of such stocks is
follows The of their prices is around $685. They
earn about 81 share They $3.50 in dividends Thus
they sell for about 16 times earnings They give yield of
In opinion there is every indication reasonably
secure earnings going bring prices least 20 times their
amount per share and stocks bearing such earnings going
to sell on about a per cent yield basis.
If this opinion approximately correct the prices of such
group of stocks mention above will rise from their
present levels (Which 81 to 52 up to figures which
will run from $33 to $66 share
So stick to such stocks Don't try to "trade in and out
catch the turns Few people shrewd and
perienced enough to avoid getting whpsawed at that
And don't hesitate to buy small amounts of several stocks
That is better than plungng stock The extra bro
kerage charge is worth the cost insurance
Such policy all the better just now because the market
has reached broadening out stage The traders coming
and to look for stocks which behnd the
ket or example look the activity in Gold Dust of late
But, again, against buying lowprced speculative
issues that not backed by established earnings and which
have dividend prospects OF course they MAY fast
but they just fast when they down when they
up They the that will drop most sickeningly
when the squirt reaches its inevitable climax and
the shakeout follows.
Il do NOT advise particular stocks to buy Anyone who
does not know enough to apply the advice given
above, should stay out of the stock market)
W~aAS~~A~~ CL~-I~~