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Show VoL 26; No.25 One Year $3.00 Salt Uke City. Utah. July 1. 1955 10c Pei Copy SURVEY EXCLUSIVE B. LONNIE IIUDKINS (Editor's Note: The SURVEY feels privileged to give its readers the benefit of the opinions of a newsman of the caliber of Lonnie Iludkins, former ace newspaperman and now a TV and radio commentator of Denver. Ills knowledge of the "inside workings of the oil and mining industries is broad and authentic. This knowledge extends with expert insight into the highly complex realm of the stock market, particularly as pertains to uranium stocks. Beginning with this issue of the SURVEY, Mr. Iludkins will write a column of significant commentary on trends and events current in todays and vital uranium boom, ills are the interpretive type of reports, the SURVEY feels, which deserve your closest study. widely-listen-ed-t- fast-movi- Not a day goes by that Ticker Tape doesnt have someone ask, How can you tell if a new stock is any good? Before we attempt to give our own formula for analyzing a new or old stock issue, we first will try to acquaint you with some important background factors. The Big Board is thats die New York Stock Exchange bullish This affects market a of era. us, currently in everyone or directly indirectly. Investors big and small alike once bought stock on the theory of receiving dividends through earnings of the corporations in which they owned stock. But along came die Bull Market and many investors became speculators. In other words, they bought stock not only for dividends but on speculation the price of the stock would increase in bid price, too. Then along came the uraniums and many of the investors d and people who never invested before literally became speculators. On the promise of promoters and stock salesmen of buy today and sell tomorrow at a profit, thousands of persons bought and sold stock with complete abandon as to merit, tax problems and market conditions. But days of reckoning always come. People who bought stock for a dime on Tuesday and sold for 20 cents on Wednesday, learned about capital gains taxation the hard way. Some investors mistakenly thought all stocks would rise only to learn some of their purchases for a dime dipped to a nickel. This happens when there are too many issues on the market at the same time. Now that we have given just a little background, here is our formula for testing a new issue before you plank down your d money on a purchase: 1. Know the man who is selling the stock. Has he been in business long? Will he be around five years from now? Is his reputation good? Does he have an extensive background in the brokerage or investment banking business? 2 What percentage of the stock is owned by the public? If the promoters own too much or too little, LOOK OUT! 3 Who is management? We have seen doctors, dentists, lawyers and professional men lose their shirts in mining and oil ventures because they didnt know what they were doing as executives in a field foreign to their training. 4 What does the company own in the way of property, Some companies have raised claims, leases and equipment? money to go look for uranium. 5 What salaries are being paid to management and employees? Some companies have been formed merely to provide livelihoods for promoters and their relatives. 6 What is the offering price as compared to par value? Some brokers say this isnt important. But it can be a problem if stock is exchanged for property and in bookkeeping. 7 Do stockholders have cumulative voting rights? IF NOT, LOOK OUT! hog-wil- glib-tongu- ed ed acquisition jy the National Uranium Corp. of Utah, was confirmed today in a special report from Martin Lasher, Nationals president. The merger, approved at the recent stockholders meeting, was made by the transference of stock. ng How to Test New Stocks long-tumor- of Diamond Ace Uranium Corp. o (Mr. Iludkins can be heard on radio station KVOD, 630 on your dial, and can be seen on TV station KBTV, Channel 9, Denver.) hard-earne- The The transaction involves properties, equipment, housing and he producing mines of Diamond Ace valued in excess of $10 million. Both companies have been actively producing uranium. National is now increasing production on its company-owne- d 303 claims. Lasher stated that National Jranium is undertaking one of Photo shows two freight cars loaded with uranium ore he largest mining and explore-io- n about to depart from Green River for the Vitro Chemical Corp. plant programs ever attempted on in Salt Lake City. Shown are Leo Bateman, superintendent oi the Colorado Plateau. We now have on the premises mines for Lone Star, and Leon Davis, geologist for Lone .Star, an additional $200,000 worth of who are making a final checkup of the shipment. machinery and equipment to facilitate this endeavor, he added. One of the major holdings of the company is the Chief propg erty of 45 claims with two 2S miles mines from Moab, Utah. Production from these mines is expected to be increased to 100 or more tons per A good uranium strike, was reported today by Leo Bate- day with estimated ore reserves man, superintendent of mines for Lone Star Development Co., in excess of 500,000 tons. 0-t- on Lone Star Ships Four Tons A Week From 'Good' Strike Salt Lake City. The ore from the new strike is being shipped, Bateman said, at die rate of two carloads per week to Salt Lake City and two loads to the White Canyon buying station. Bateman said his company has contracted shipments with Vitro McRae Oil Buys All Stock of Intercoast Firm Survey Denver Bureau Purchase of 100 DENVER stock of Intercent of the per coast Petroleum Co., Inc., of Midland, Texas, was announced today in Denver by J. A. McRae, president of McRae Oil and Gas Corp. "We will maintain the Midland office, McRae said, "as headquarters for all of our West Texas activities. Intercoast, like McRae Oil and Gas Corp., is a producing oil company. Intercoast has 68 producing wells in West Texas and New Mexico, with a daily production of approximately 500 barrels net to the company. McRae Oil and Gas has wells in Colorado, Wyoming, Oklahoma, Texas and Montana. The purchase was made from Chesapeake Industries, Inc. McRae Oil and Gas owns Roden and McRae Drilling Corp., with offices in Denver and Casper. The company's board of directions includes such prominent figures as David G. Baird, Charles G. Cushing, E. C. Dorroh, E. J. Evans, Ronald T Leeper and Chemical Co. Lone Star also has good reserve ore drilled out in the Butler Wash area of San Juan county, Bateman continued. He expects operations on this property to start this week. A drilling program is also planned for the Circle Cliffs property. Ore showings from the area have been pointed up, Bateman said, and are found to be of commercial quality. Mining operations on the new properties hit a decline in June, the superintendent added, due to the necessity of doing assessment work. This work has been completed, however, and an expanded program is underway. Bateman said he was recently Informed by W. L. Davidson, president of Lone Star, that negotiations are underway to acquire two properties in the New Mexico property has been checked and approved by Geologist Leland Davis. "They both posses excellent ore potentials, Bateman said. Lone Star has been shipping to White for severa Canyon months. Increased production started recently with shipments from the North Wash in the Henry Mountains. active-producin- Other valuable property obtained by this merger includes the Kings, Aces and Olsen claims, totaling 36. This property joins the famous Pick Delta mine which was recently purchased for $10 million (Continued on Page 2) 200 Claims Paramount, Atlas Plan Merger Soon Survey Denver Bureau MOAB, Utah Merger of the Atlas Uranium Corp. and Paramount Uranium Corp., with Atlas as the surviving company, will be consummated within the next few weeks, officials of both companies said today. Merger plans were announced jointly by Atlas President J. C. (Jack) Burgess and Paramount President Albert F. Enyart, both of Moab. Reports a consolidation was in the making had been current here for some time. that While acknowledging officers had agreed upprincipal on the merger, Burgess and Enyart said a number of details, including the stock exchange ratio, Donald Royce. Principal stock- remain to be worked out. The expanded Atlas Corporaholders include Robert Young o will have more than 200 tion the New York Central Railroac and William Zeckendorf, head of mining claims, with two produc- Webb and Knapp (Continued on Page 2) . |