SEVEN PER CENT.

Sun (Auckland), Volume III, Issue 757, 2 September 1929, Page 10

SEVEN PER CENT.

AN ATTRACTIVE RANGE SPREAD FOR £6OO By “NOON CALLA recent query to the Commercial Service section of these columns came from a subscriber with £6OO lying at call in the savings bank. The subscriber wanted to know which was the best course: to leave the money in the bank drawing 4J per cent., place it on mortgage, or invest it through the Stock Exchange. The writer has no hesitation in recommending the last named. Undoubtedly one of the best ways of building up a sound investment income is through the Stock Exchange. Given a well-selected spread, the risk of loss is cut to a minimum, while capital appreciation and dividend return should show an annual increase. The following spread is selected out of the range of actual gilt-edge securities aiming for slightly more than five per cent, immediate return. Nevertheless, the companies have been selected with care; all are progressive and, carefully watched, should prove very satisfactory investments. Commercial Bank of Australia. —For a long time now the writer has recommended Commercial Banks as a verv attractive investment; the institution is progressive and enterprising. Each year shows a steady expansion of interests, and last year was no exception, when several new branches were opened. There is much room for the recent contention of an Australian financial writer that a fresh issue of shares can be looked for in the near future. Shareholders would benefit by this in addition to drawing a steady £ 5 per cent, on the present market. North Auckland Farmers' B Preference.—These shares have considerable attractions to the man who is prepared to watch the market. The company is gradually regaining its feet after the post-war slump and is drawing business from a district which should show considerable expansion over the next decade. Fertilisers and better farming methods will see to that. The B preference issue at about 12s 6d returns approximately £9 12s per cent. Sanford, Ltd. —This company is reported to be doing better now than at any other time in its short history. There is certainly nothing to indicate at the moment that it will have to cut down its rate of dividend. On the present market price around 18s 6d the return is approximately £7 11s 4d per cent. If the company's trading returns continue on the high levels recorded a month or so ago there should also be a satisfactory market appreciation in the scrip before the end of Its next financial year. Goldsbrcugh, Mort. —The market for this scrip has shown a slight decline over the past three months owing to the belief that the slump in wool values should influence profits. It is not difficult to find support for this opinion, but, nevertheless, the company’s interests are spread over a fairly wide range, and no trouble should be experienced in continuing the present dividend rate. At 48s, the approximate market price, the return on investment is in the vicinity of £6 5s per cent. N.Z. Farmers’ Fertilisers. —Although the market has lost a certain amount of faith in this concern over the past week or so, and prices have depreciated slightly, the scrip has attractions. An opposition concern is certainly opening up in the South, but experience over the past decade has shown that the future of the Dominion rests on a supply of cheap and there should be a growing demand for the Farmers’ output. At 225, slightly above Saturday’s market price, the return on investment would be approximately £7 5s 5d per cent. Six hundred pounds invested in the above range in the following ration

BANKRUPTCIES DROP Bankruptcy figures in Auckland so far this year have shown a decrease on those for the same periods in the two previous years. For the first eight months of this year there have been 91 cases, against 95 up to August last year, and 147 in 1927. In the latter year the figures were increased by the inclusion of the Hamilton district in Auckland. The returns for the month of August also showed a drop on the numbers of cases in the same month of 1928 and 1927.

would return approximately 7 per cent.: — No. of Approx. Approx. shares. price. Return. Name of Com. Com. Bank 100 £150 £7 10 0 N. Auck. Farm. 200 £125 £12 0 0 100 £110 £8 0 0 100 £92 10 £7 0 0 Golds, Mort 50 £120 £7 10 0 Total £597 10 £42 0 0