The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1945-10-12
BY ROGER W. BABsON

Babson Park, Mass.-My com
ments on Industry:
MINING: 1t is difficult enough TO
comment on factories, raw matsri-
ais and finished goods above
ground. Hence, do not attempt to
make any predictions as 10 What is
below ground. Postwar prices will
be less for most mining products,
but they are excellent initiation
hedges. Some also may profit from
atomic energy developments.
MERCHANDISING: | will not
forecast how the large department
stores which are nailed down to
one corner. will fare during coming
postwar years: but / am very bull.
ish on the chain stores. These in
clude the grocery chains and varie-
~ Enthusiastically the so-called
"hve-cent-to-a-dollar" stores
MOTION PICTURES: This in
dustry has prospered tremendously
with the war For awhile, how
ever, lower earnings must be ex-
pected. Furthermore, the indus
try is faced with government suits
and the competition OF teleyision.
! would rather invest in something
else.
OFFICE EQUIPMENT: Notwith-
standing the large amount OF sec
cudhand ONCE equipment which
Re government may press for sale.
an optimistic on the industry and
lieye the stocks are reasonably
riced This comment also applies
10 The furniture industry.
OILS; | am not worried about
any postwar oil shortage or strikes.
The industry has no reconversion
problem. II will profit by diversi-
fication through chemicals, plas.
tics, synthetics, etc. Hence, ! am
still reasonably bullish on the oil
stocks for the present. The long
pu,! outlook depends partly on
stomic energy developments.
PUBLISHING: This industry
which has been so handicapped
during the war-through lack OF
workers, paper and freedom to
print "all the news"-will soon be
able to step out again. I believe
that newspapers, magazines and
printing in general have sons
exceptionally good years ahead.
They surely deserve break.
PAPER PRODUCTS: Large i'm.
ports OF pulp may be expected from
Norway Finland, and possibly Rus
| STA. This fs not good Omen for
domestic pulp manufacturers; but
should be a blessing to the manu-
facturers and convertors Of paper
products. | am. therefore, bullish
on the stocks of the latter paper
manufacturing group.
RAILROADS: I've been bearish
on the railroad industry since last
June and as yet see no reason for
changing my position on these
transportation companies. 7 am
not bearish on the railroad equip
ment industry.
RUBBER: The rubber stocks
should hold their present level or
do better during the postwar per.
Tod. Their markets should expand
and their operating costs should
| decrease.
STEEL: After the complete re.
conversion OF the nations economy
and reduced tax burden the steel
companies should show better pro-
fits. Everyone is justified in hav.
ing a few steel stocks in his port
folio.
TOBACCO: Not being a smoker
myself, am in no position to fore
| cast as to the future Of the tobacco
industry. Most OF nv friends.
however, are bullish on this indus
| try.
TEXTILES: The textile industry
should have at least one exception
ally good postwar year. but after
this both demands and profits
should flatten out II is a feast
or famine" industry
UTILITIES: Utilities are once
again getting fair treatment. Any
cut in taxes will help most utilities.
Each investor may continue to