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Show t How to Select the Best Stocks By Ira C. Tichenor - - - FOK those who have money for investment in going concerns, 'an article in the current issue of the Magazine of "Wall Street, jiving a simple method of investors doing their own rating, should be of particular interest! The elements by which a security may be judged are d I Tided into mix paria, as follows: Elements of character: is it a necessity of modern life? Is It aa BFentlal Industry? K.ements of record or reputation: What Is Its history? Elements of future possibilities: What are the prospects for growth of the Industry? Is there any prospect for Us future? What competition usta? Da niter of failure. Elements of control and direction: What Is the character of its management? manage-ment? What are Its financial and business policies? ' Elements of financial strength: Resources; Intrinsic value per share; working capital; method of financing. Elements of earning power: la it a high or low cost producer? Margin of safety over fixed charges; stability of earnings; percentage of fixed charges in proportion to dividend requirements. AH the various 'elements enumerated are of great Importance, but It would seem that that of control and direction, involving the character of a ' company "a management, should lead all questions by which a security may be Judged. This element is even of greater Importance than the one Involving tha question of necessity in modern life, because no company, however esaentlal Its business may be, can become a real success unless it has proper management. ' It has been consistently urged In this column. In respect to Investments hi new mining companies In particular or in those companies whose 1 properties are still In the prospect stage, that honesty of management Is everything; that the prospective investor should make certain that his money ! will be used for development purposes and not become the meal ticket of. any promoter or manager. Of course, there Is a great difference between Investments and specula- Huns, but 1110 nntr"VBseniiaI "fn eficn case In honesty -of management. i |