Question—I am considering the purchase of some Cockshutt Plow Company stock and would like your advice on the matter. I understand that they have passed their dividend and that it will no doubt be some time before conditions are better, depending largely on the price of grain. What I would particularly like to know is the soundness of the company and their ability to stand continued depression without going into liquidation or being so crippled that it will lake too long to recover. — H.B. W., Alberta.
Answer—The annual report of the Cockshutt Plow Company for the year ended November 30, 1931, showed an operating loss of $494,857 before provision for taxes. The balance sheet, however, indicated a working capital of approximately $5,608,000. Of this amount, about $3,580,000 are in accounts receivable and only $40,188 is cash. The statement therefore indicates that the company is in fairly good shape financially, although the liquidity of its assets is open to question. A substantial advance in the price of farm products which would improve the position of the farmers, is what is needed to revive the company’s business. In my opinion, there are other stocks available today which offer a more attractive speculation than the shares of this company.
Question—Will you please give the pros and cons regarding Investors’ Syndicate, Minneapolis, Minnesota? I have one of their Ten Year Accumulation Installment Certificates, calling for an investment of $6.30 per month. I have been carrying this now for twenty-seven months. They are at present accepting Canadian currency at par.—F. B., The Pas, Man.
Answer—Assets of the above company totalled $-16,646,218 as of December 31, 1931, an increase over the preceding twelve months period of $7,836,102, according to the company’s year-end financial statement issued by the treasurer. This is the largest
increase in the company’s thirty-eight years’ history. The company states that the combined capital, surplus and reserves totalled $6,192,678 on December 31, a gain of $986,185, while cash on hand and in banks was $712, 572, placing the company in the most liquid position in its history, according to the treasurer. The statement reports that a certificate reserve actually set aside over and above legal liability was $4,690,578, an increase of $878,970.
Question—What is the standing of The Western Loan & Savings Association?— J. G. W., Fraserdale, Ontario.
Answer—The auditors’ report as of December 31, 1931, showed the above company to have total assets of $280,594. Liabilities to its certificate holders, including interest to January 15, 1932, totalled $220,015, leaving a surplus in favor of certificate holders of $60,579. The books of the company are audited monthly.
Question—Please give me any information you can regarding the common stock of Goodyear Tire and Rubber Company and Goodyear Colton Company’s six per cent bonds. —Subscriber, Windsor, Ont.
Answer—In the fifteen months ending December 31, 1931, the eamings of Goodyear Tire and Rubber Company were at the rate of $8.24 a share on the common stock, compared with $8.02 per share in the year ending September 30, 1930. This may be considered a very satisfactory showing, considering the nature of the year just passed. Dividends paid on the common stock in 1931 were at the rate of $6.25 a share.
The stock of The Goodyear Cotton Company is wholly owned by Goodyear Tire, and no separate financial statement is published. The bonds only are held by the public. It is understood that the company has a contract with Goodyear Tire for the entire output of its plant, which virtually assures earnings sufficient to pay interest on the bonds.
Question—Please give me the address of the following companies: Consolidated Smelters, Ventures, N. A. M.E., Great Bear Lake Syndicate, Northern Aerial Exploration.—G. II., Saskatchewan.
Answer—The address of Consolidated Mining and Smelting Company is Montreal. The address of Ventures, Ltd., N. A. M. E., and Dominion Explorers is The Concourse Building, Adelaide Street West, Toronto. N. A. M. E. is simply an abbreviation for Northern Aerial Minerals Exploration. Great Bear Lake Syndicate is now Great Bear Lake Mines, with head office in Imperial Bank Chambers, Queen and Yonge Streets, Toronto.
Question—I hold twenty shares of Imperial Oil bought at $31, a share and five Shawinigan bought at $99. Would you recommend switching from these into Bell Telephone and Montreal Power? Can you tell me why Shawinigan stays at a fixed price of $33 a share all these months?—G. E. C., Sask.
Answer—All the stocks you mention are among the best common stocks obtainable in Canada, and will offer attractive possibilities when business conditions return to normal. In your position, my choice would be for Imperial Oil and Montreal Power rather than for the other two stocks mentioned. In past depressions Montreal Power has been the leader w’hen the tum came, and Imperial Oil’s nationwide business gives it strong recuperative powers. The fixed price of Shawinigan has been in part due to the fact that it was pegged. The same may be said of Montreal Power.
Subscribers to Maclean’s Magazine desiring advice in regard to Canadian industrial investments, or life insurance problems, will be answered freely. Enquiries should be addressed to the Financial Editor of Maclean’s Magazine and a stamped, addressed envelope enclosed.
If your enquiry concerns insurance, please give full details of your own financial and family position, so that definite and individual suggestions can be given.
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