Show BABSON'S D Dg g i A ST STATEMENT A TEl ENT Special to TIE THE EXPRESS Bem Re r W Aeb oe BABSON DISCUSSES DEPRESSED STOCKS DADS ON PARK MASS A book has recently been pre pre- prepared prepared pared by II G Olson of my organization tion gi giving ving charts earnings prices etc for the common stocks of well known companies In view of the high level evel of the Dow Dow- Jones Industrial Average up from ten years ago to around today I have made n a partial analysis of these stocks The book should interest every invest invest- investor or Railroads and Airlines Of course the principal railroads are in this list with the Pennsylvania and New NewYork NewYork York Central Included No wonder they are trying to merge today as their only sal sal- salvation Among theother rail raU- railroad road stocks which have had hada a hectic record are the Chi CM Chicago cogo cago Milwaukee St Paul and Pacific the Chicago Rock Island and Pacific the Read Read- Reading ing Co and th the Erie Lacka Erie Lacka WAnna The stocks nave suf fared the most are the air air- airplane plane stocks World Trans Air Air- Airlines Airlines lines one of the largest sold soldat soldat at 80 per shade in 1946 and is selling around 10 today When we consider the aircraft manufacturers we find that Douglas Aircraft Co which I consider one of the best sold Bold soldat at 95 In 1956 but sells for less than 40 today Eastern Air Lines sold at nearly 60 in 1955 but sells today at less than halt half that price Automobiles and Footwear Among the active high grade automobile stocks Is that of the Chrysler Corpora Corpora- Corporation tion which comes next in my opinion to General Motors end Ford as the best three Chrysler stock has drop dropped d from about In 1952 and 1955 to around 50 today The TheFord TheFord Ford stock was brought out at about 70 a share In 1956 but sOOn slumped low below 40 due to sales by free Iree riders looking for a quick profit Ford climbed above 90 In 1959 again fell feU to 60 but is isnow s snow now near Whether or not the increase In automobile riding has rals rals- ed cd havoc with the shoe In in- in I leave to readers re-aders The stocks of two large shoe manufacturers International al Shoe Co and Endicott John John- Johnson Johnson son have Corp had an un unfortunate fortunate record The Inter Inter- International International national Shoe stock has drop ped from from about 50 50 to less than 30 while Endicott John son has declined from 50 to 20 today ThIs same trend applies to mens men's and women's clothing as shown by the rec- rec record record ord of Bond Stores Inc and to floor covering companies such as Nairn I Farm and Other Machinery Stocks Stock i I nm am sorry to see that J I Cases Case's stocK has declined from nearly 41 40 In 1951 to Ic less s than 10 today It has paid no dents since 1955 but tubers a lull full line of good farm farmand farmand and moving earth earth moving With the farmers prosperous and the great campaign ahead it seems to tome tome me this company should do better or else change its man man- management I think It Is now take tak ing needed action Let us hope so Another machine company which is being honestly oper- oper operated operated at Waterbury Conn Is the Manufacturing Co o The stock of this company company sold at nearly 50 per share in 46 1945 has had downs and ups since then and now sells at about 25 per hare Bhare The Rheem Manufacturing Cos Co's stock sold at 45 In 1955 dropped to 10 In 1957 and now sells around 15 Foote Minerals Mineral's stock sold at 60 In 1957 and now sells around 20 per share I have faith in this company I New Mining Companies One of the most Interesting mining stocks Is that of the US Smelting Refining and Mining Co This sold at over 80 per share in 1946 1940 and again In 1952 It has sold at 40 or lower since 1957 New Jersey Zinc sold at over 80 per share in 1951 but now sells for less than half this Island Creek Coal sold at over 50 50 per share in 1956 and now sells for about one half this Hudson Day Bay Mining and Smelting sold around in 1956 nOw sells for 55 55 Con Con- Consolidated Mining and Smelting showed a similar trend Most ot of the steel companies are doe do- doIng doeing Ing well but the stock of the Steel Stel Co which sold above 35 15 In 57 1956 has recently sold at 10 Merchandising Stocks Of aU all these stocks Mont Mont- Montgomery gom gomery ry Ward shows one of the widest fluctuation It ItI I sold at 50 per share In 1946 1940 then declined to 25 In 1948 again hit a high of over 50 per share tn in 1955 and 1959 but is now again about 35 Of the variety stores S S Kresge Co operating nearly stores sold at 45 in 1950 and Is now selling around 30 Let m me close by saying that the stock of the United Fruit Co sold lold above 70 In 1951 Is Isnow isnow now about 25 I i In the above review I have mentioned only about twenty twenty- five or so ot of the one hundred depressed stocks which Mr Olson has selected Of the re- re remaining remaining Issues there are many which are probably more attractive than those described above An Investor should study all In order to realize reaUze these two fat farts Just because the Jones Dow A Average has beel going up al- al almost almost most constantly during the past ten years this does not mean that aU all stocks have been going up In price 2 There roust be some great bargains In the popular listed stocks 9 which have money making possibilities fur tor those who will search for them |