Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1946-09-20
Caution Is
Advised AS
TO Stocks
Babson Thinks Some
Issues Are Lower
Than Is Justified
Ey ROGER W. BABSOS.
Copyright 1916. Publishers
Financial Bureau. inc.J

Ne York. \. y. Sept. 2O.-Thc
s;,>k market will continue TO HAY,
Fps and down.. oGt now caution
must Dc exercised i'm picking stocks.
Inc recent slum3s depressed many
good l->uuS we'll below the Dow
jones Averages. In Tins sort Of
market. therefore. :CadcTS can find
individual issCeS still pcrrcntagcwiSc
below the average of the market.
Ssmc O! these saou!d advance well
...u,c said averages.
IN 'rHov t. make III. lcv one should
cook Tor such individual issues which
re capable OF making the grade.
mrs %. all. Nc must select stocks
= industries which SNOW promise.
Nc%'. W must ascertain which
roH !.an.cS are SuitCi financially. as
well as mo haniCally. tn do the best
JOB in thc!: field. We must Jc GER
tain ,c.t the stock which we choose
h"$ SHlcS appeal. y go,I yield. if
In" financing Is sin bic. usually
axe" TOR SaloS appeal. y company
HAlcn require" .cW employees III re-
ton e. IT. Iu!.Wc of production
should DC especially attractive. since
iuOo! strife will have less chance
10 r":ard lis progress. AL the above
factors hou.d aid readers in So
lcctlnI good individual issues.
Market Averages.
- We q, HEure certain stocks
.'ICcN,sc md rc"Ccniagcw.isc with
the D"w-JOncs Averages in 1882.
IN 1897. :Hc Mr. years. and now. we
nave son, insight as TO wha, ac-
tiun to expect from their future per-
io!mIuccs. ~ explained last week.
he industrial, sold al the dcprcs-
son loN %! II. The rails at %. and
me utilities a., Is. They rose TO
leaks IN 1873. with sharp decline
""c " !c.scr "ccovcry in 1898. The
Z "ar""; then remained Stagnant with
C2%n-hii. trend unit, Pearl Har-
or day. DccCH Ger :. 1911.
Since 1912 the market has been
I!Slr2 with Intermediate declines.
On May 20. 1916. the averages at
AIMED high of 2l2 for the indus
,F!a!S ana 10 fer the utilities. fol-
loved on June i3 by a new high for
he rails Of 68. This has been fol-
lowed y severe drop Of some Is
yoln:S tor the industrials and pro-
b:tOnd:c amounts 'or the rails
.hv;yh INC averages decline even
'!.1"". mere may still be promising
uys below the general market aver
nEc.
Comparisons.
To co!parc two prominent stocks
Hhirl percent gcwisc dropped well
Glow the averages. let us first take,
- Al cxdm'lc. Commercial SOL
vents. In 1882 il reached a low of
J IL. Il rose TO a peak i'm 1887
ana Rad ny 1912 settled bSi. TO a
low Ct q. lis next peak of 80
- cam" III May &C this year in a
ei'"1 "hcN INC averages were a.
thcir highcSt III Is years. The aver
C. nj the recent low have decline;
/ Dn!T II per cent from the May highs
while Commercial Solvents. which
sun oelleNe 10 be good. has fallcr
off G0out 81 DCr cent. The averages
mt yet well above Commercial SOL
vents.
Montgomery Ward is a stock
eh"He Is pO, l, which has showr
a>decided decline far below that OF
nc averages. due in great part tt
he issue OF rights. In 1892 Mont
:onl.ry Ward declined TO 3 1/2. |
cached a high of 60 in 1887. /.
gam rccodci in 1912 TO low 0
IS liz. Which was a decline Of GO
Der cent Corpared 10 only 50 DC,
'ent for the ID w-Joncs industrial
averages. Along with the rest c
he market the price of this stool
,rc crossed during the war. In MAY
9l6. Montgomery Ward reached a
'cak Of lOi l/4.g II has since sold
off TO low Of 65 1/2 or about a
81 per cent drop compared with only
= u per cent drop for the indus
trial averages.
a wise selection Of individual is
sues may be made at this time II
ones judgment is based on all the
favorable factors I have mentioned.
including promising relationship
10 Dow-Joncs averages.