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Show Making Investment Analyses editor's Not: Poilewins n ot itecKbro-"WIMt Abet , K rtic(M bv octroi. Woman vary lnvtin on notM from ft Sttooig m woman book, Har Monty." Know By HERTA HESS LEVY Large investment- - counseling firms, brokerage houses, banks and various other financial institutions, which base decisions for and themselves or their clients on research, employ analysts to cover various industries. 7py& xiy This is because every indus-trhas its owr characteristics requiring specialized knowledge and experience. Comparing a utility and a steel company, just to cite an example, is like comparing apples and y bananas. The following represents a simplified discussion of some of the basic factors affecting investment analysis of several key industries. The purpose of this section is to illustrate some of the diverse economic considerations with which we must reckon in examining various industries and companies. Utilities: These are the companies which provide our electric, gas, water and telephone services. As is true in some other industries such as airlines and rails, the rates charged are regulated by government agencies. In other words, the company is allowed to earn a set percentage, after taxes, of its investment in its plant. Moreover, regulation varies considerably from one state to another. Consequently one of the most important factors to know about a utility company is the regulatory atmosphere, of the state in which it operates. ROLLING PROFITS Autos: Total auto demand normal replacement equals needs plus new purchasers. Over the past 15 years, the passenger cars in use in this country has grown units a by more than yeat. It is now estimated that nor-a 1 annual replacement number of m demand is in excess of 6 lion units, or about the present but selectivity is essential for Therefore, subject to considthe stock buyer. Competition erable fluctuations from time is intense, and growth may be to time, the industry can look moderate, or negliexplosive, forward to increasing demand at least as great as in the gible, depending on what comgeneral economy. pany is selected. Oils: the petroleum indusIn this industry, new prodtry certainly qualifies as a ucts often render existent magrowth industry. Demand for chinery and equipment almost oil and natural gas has inand worthless, completely creased each year since 1956, new facilities are required. when worldwide consumption totaled 17 million barrels a This explains why chemical day. In 1966, the total was 33.5 companies are rather "notorimillion barrels, a gain of ous for retaining a major nearly 100 per cent. part of earnings for new plant The problem the industry and equipment requirements, faces is this can it find adequate reserves to meet this expansion, and modernization. demand? Oil officials concede Outlays for research also are it will be a difficult task, but heavy. Steels: The steel industry they believe they can do it. A growth area within the gives us a variety of products for Industry and home from industry is that of petrochemicals, with the demand for bridges to razor blades, airthese products growing at a planes and automobiles to rate of three and a half times washing machines and driers. the national industrial averis Competition plentiful age. There are some 10,000 within the steel industry. Fordifferent petroleum chemicals eign imports and substitute whose are familmaterials such as aluminum, iar household names nylon, plastics and concret continue Dacron, Orion, Acrilan, to cite to chip away at steel marjust a few everything from kets. fibers and films to rubber and Steel equities stand out in fertilizers. two respects: (1) Normally, MAJOR INDUSTRY the yields on steel dividends Chemicals: The chemical are high recently on the industry can be designated as better side of 5 per cent; and a major growth industry (2) steel stock prices tend to fluctuate in close harmony wifi me general economic cycle, so that regula:ly opportunities for moderate speculation are created. By the same token, steel stocks are not suitable for in Sardine Boats estimated normal car year. in the industry Growth comes from three areas: (1) a growing population, (2) the infamilies crease In multi-ca- r (owning two or more cars), t and (3) the rising percentage of families owning a car. The factors which have re- ; suited in the industrys inod-- . erate long-tergrowth can be DESERET vestors longemphasizing term growth, and peace of mind. and Electrical Electronic Equipment: The electronic and electrical equipment industry is an amazing one indeed. Amazing in its capacity to give birth to new comamazing in the panies capacity of companies to produce products which revolutionize our lives industrially and personally. RISKY GROWTH The key word is growth, bill great risks exist. Therefore, it for safety to is essential choose companies which have a good product mix and do not depend upon one product for profit. The industry is not the perfect basket for all There art several specific things to look for in viewing a company in the electronic industry. First, the size of the company's primary market. Here's a surprise for the tle folks. Cut a few frankfurter rolls in half lengthwise. Scoop out the soft centers and toast the lit- Line the inside of the roll boats generously with egg mixture and in each place two whole sardines. Ai range a crisp small inner leaf of lettuce at one end of each boat for a sail. 1 I vi t nimiNi- - Lemons For Beauty rolls lightly. Finely chop two or more hard cooked eggs and with mavonnaise. NEWS Tuesday, June 4, 1963 y To keep your skin clear and fair you need the natural cleansing and bleaching properties of lemon. Ask your druggist for a bottle of lemon Jelvyn, the latest type akin freshener that beautiful women throughout the world are now using. Lemon Jelvyp and conditions the akin to a beautiful new clarity aftJ fine grained texture; its excellent toning properties help stimulate the surface cells, eear out stubborn, blemish-inducinand' jxxtacles and smooth the skin to beautiful clarity. Lemon Jelvyn is ideal for quick complexion cleansing and twro capfuls in your final shampoo rinse will give a sparkling shine to your hair. L'unon Jelvyn is a must for complexion beauty. e g Gnnnmnnnm IMMMCM? i GHDCaSStl ORTHiTEMPlE D Tf Li3CgQnnD Gfflo0GD53allsaEffl) BGIL0ISG RESILIENT, FOGfinm 100 witti a bouncy deep pile fhat will FORTREL POLYESTER WEARS beautifully resists abrasion PILE not crush MOTHPROOF and insect mil- two-thir- of projected well into the future. It is also Important to hake a look at the quality and of management in analyzing a company in tin, particularly if the industry company is a miracle boy, overnight wonder.'' Research and development are like factors in future earnings of the company. Financial strength is for survival in the face of rapid changes, and for flexibility, which is essential in the electronic field. should contracts Military also be scrutinized carefully in these companies which are heavily dependent on defense business. EtANESFU-ORTR- El! CLEANS like a dream. 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