Winnipeg Free Press

Winnipeg Free Press (Newspaper) - September 05, 1978, Winnipeg, Manitoba Eini Pfel Pree Depte Wetr 1978 prices go it Puffin it tic in Toftey grime ire no time the Long both the Beitf Tatad a technical analyst it Dretel Burn Tiam Lambert fax Ltd thai quartet by of font isse to new wite profits Stdek prices went Fleir Onn in inc one Ottar Tel in who Cut Standard acid a frs of Industrial stocks Rose than 38 pet Eaffie Lifs fell 24 n in 18 other partes daring which the up had Fains of 10 per cent or earnings averaged an increase of less than one percent is All and com fighting in Geneva largest Trade told Western that of monetary and economic the continuing inflation can Lead the 84country general agreement on tariffs and Trade Gatt said in its la test report on International postponing the Price stabilization efforts Only shifts into the future a Cost which continues to grow and Oriel Day must become Insp Gatt members account for More than four fifths of world of International Fth port it called on governments of major Powers to give ble commitment to restore Price stability at a Pace Dver the next few to reduce economic uncertainty and strengthen business invest the report said inflation Ary pressure is rising again in the United states and prospects Are dwindling for additional curbing of inflation rates in where they May the repo appointed differences in inflation rates among industrialized coun and said no International monetary whether based on fixed Exchange clean or managed can function satisfactorily when the main trading countries Are undergoing rapid at such varying the inescapable conclusion is that the Industrial countries can Only move to Ward increased growth and sustainable payments positions and More stable Exchange by reducing their inflation to Levels experienced the the report said it now is generally recognized that there Are no benefits losses from inflation and quoted from a Decla ration published brew Terri Heads state after their economic Summit meeting in London in 1977 inflation does not reduce on the con it is Ohe of its major disillusioned investors deserting Wall Street by Harry Anderson and Robert Dallos the los Angeles times Mike and Pam Are both in their earn More than a year be tween rent a apartment on the cites West drive a Dat Sun went to France on vacation last february and dont own a single share of they used to own about 500 shares several most of which they bought seven years ago with Money Mike inherited from his but they sold All their Stock last year and used the Money for a vacation in Europe and for a Down payment on a Cabin at big Bear a popular Southern Cali fornia our stocks just seemed to Lay there i could have made More in a Tim Deposit savings says we just decided we wanted that Money for other the they put in the Stock Market Back in 1971 brought them in after paying brokerage with the inflation rate during those the couple actually lost with their invest the experience of Mike and Pam is hardly a growing number of individual investors has become Dis enchanted with the Stock Market and has found other places to put much of the disenchantment is caused by a lingering bitterness from the Market crash of the Early that led Many persons to Stop putting their Cash in highly speculative stocks and to look instead for invest ments with a guaranteed income usually in the form of dividends or other factors have a Sharp increase in the brokerage com Mission rate paid by individual investors in recent years has made it much More difficult to make Quick killing in increased capital gains decline in average Stock a vast array of new invest ment alternatives such As and a Lack of attention paid the ittle Guy by Many brokers and Wall Street have added to the because of inflation and changing Many younger persons including Mike and Pam simply dont have the Money to risk in any Many prefer to spend their Cash on expend f Siye cars and othe in its latest Survey of Stock owner the new York Stock Exchange found that almost one out of five per cent shareholders had left the Stock Market Between 1970 and the number of individual shareholders declined to million from the Survey found also that the average age of the individual investor had risen sharply from 48 in 1970 to 53 in 1975 and the median household income of the typical Stock buyer had also from to the proportion of americans who own Stock declined to one in six in the nose 1975 Survey the lowest since experts agree that the relatively poor performance of prices Over the past decade is perhaps the most significant reason for the desertion of individual in the people were bullish and says Monty Van Vic president of Merrill Fenner and Smith Many people thought their return on Stock investments would come through appreciation of Price and they would forego whats is that Over the past 10 years the average Stock Price has been going investors who Are still in the Market have come to rely More heavily on dividends and have discounted any potential Price an elderly investor watching the Stock ticker at Merrill Lynch Man Hattan Headquarters put it More sue Kintly ten years ago i would buy stocks on a no More than today i try to pick the right i study the background of the Compa i study its a decade ago it was More of a a los times poll of Fornias confirms the general Dis Trust of the Stock Market among Indi asked if they had More or less Confidence in the Market now than in the 46 per cent of those surveyed said they had less while Only 15 per cent said they were More older and wealthier individuals those More Likely to be Stock investors appeared to have the least amount of the poll found that 58 per cent of those making a year or More have less Faith in the Market now than in the that compares with 46 per cent in the to bracket and 48 per cent in the to 57 per cent of those Mak ing More than a year said they consider the Market a dangerous place to invest compared with 49 per cent by 23 per cent of those making More than thought the Market a Safe place to invest compared with 25 per cent the disaffection of the More affluent has become the subject of much concern among Wall Street exec most of the major investment houses have launched major pro to win Back the investors who have left the some investment How wonder whether Small investors can Ever be wooed Given their disaffection and the growing popular Ity of new investment products which have been introduced in the past dec the Little man1 is still investing but not in common at least not As much As says Sidney senior Vic president of Bache Halsey Stuart Shields a new York investment Small investors Are going for income oriented primarily for they substantially Are less willing to take risks with their other areas of the investment business Are booming Bond for with a guaranteed re turn of per cent a year in Divi Why should an individual in Vestor Gamble on Stock prices Van Norden of Merrill Lynch cites another development which has worked against Small investors re turning to common because of the generally poor mar Ket for common Many companies discovered that some individual investors will buy preferred Stock if it is priced lower than it has been he preferred Stock usually carries a higher dividend than common Stock and is normally secured by company in the it has been priced much higher than com Mon Stock and was bought primarily by Large institutional that has changed according to Van some companies particularly Public utilities have introduced preferred shares Selling around and those have proved extremely popular with Small investors looking for Security and a steady other exchanges new York Montreal Richardson securities september 1978 fid a 284 Alcan Alcan Tel pc 60h Llan Lic 51i 58 i net Clai Jlse pistol 394 re Noton 60 334 Imi 43v r Nan 624 corp 28h 31 49vj 27h 2sv 20i 23h j3l 433 49i 3i 6241 314 31h 17 Honeywell household Fin 20 4 ism into Hary 43h into minerals Mil Tel Tel Johns Snowe 32 Johnson 81 Tel in Kimberly Clark Mattel inc Mcdonnell Dou Ojas 37 Minn mining Moll Oil 1966 66 Nat Cash Reg new Root Northrop 4jh Northwest airlines pm win 3w4 Peon Philip Morris Phillips 32 out Proctor 8 Gamble Ria corp Royal Dowten Sears Roebuck Shell Oil Standard Oil Texaco inc 24vj Texa Gull 20 Union Carbide Union 40 20 44 41 15 37 64t 47vi 20v4 63 i it it 23v 45 1 Richardson securities september 1978 Asbestos corp 45b Banque Cannat 17 Bank prov 16 bom Ardler Mew h34 750a Arena celanese cd 365b Central on 30b charter ind lob cons class or Sellera 29b own Bridge Bros 15 Dupont Ofida Fin collection 340 metro 575 Gottl Star 30vy Hudson Bay co Rbt Mitchell a i9b Vancouver Richardson securities Montreal Trust readers digest 3a Steinberg Superior elect 900a velcro 45b 17 16 750a 3650 30b Nob 290 360 575b is1 2flb september industrials kaon it Nat 50 grouse 69 290 inter 38 75 365 53a 70 290b 38 60b 355b 13a mines oils 900 Barrier 50 Bath 37 by 300 cot 4 Chey 420 cur w 525 81 unities close Xerox corp 51 to 34 Castex lib 16 twin Rich new sob sob Western Warrow i25a 2sa Bis 14 Valley 82s Westmount 69 37 545 2950 40b 10b 600 75 75 5120 100 49 20 13b 340 m 90 380 r 812 68 own Way the Index was unchanged to nine per cent higher in 80 during which earnings averaged a two per cent and in 57 quarters of declining Stock earnings on average were unchanged to two per cent what does tend to move along with the Upshaw is he level of Price earnings which go beyond the earnings numbers to Neasure what investors Are willing to ply for those by Pes measure fluctuations in the intangibles of the Market greed and optimism and the pm ratio of a Given company is calculated simply by its annual earnings a share into its Stock when investors Are willing to pay High multiples 20 or As was often the Case during the they obviously optimistic about prospects for future when pres fall below As has happened for much of the time in the 19qs Aga fast a background of Bear markets and inflation it is taken As evidence of investors Wari Given the primary Impact of Pes on the course of the Burttham Lambert recommends investors carefully evaluate the multiples of any stocks they own or might be considering the company provides these guidelines for companies in three different categories of earnings 4 High growth and stability a be is and future earnings estimates can be used to calculate the higher the relative Premium to the the higher the risk if the growth rate decelerates or if the consistency of the earnings Stream the company average growth and stability the multiple should be close to the Market using the most recent 12month Low growth and stability the multiple probably should be lower than the company said since the earnings Are a three or five year average should be used in computing the the be ratio of Standard and poors 500stock composite Index recently stood at modest by historical standards but up from earlier this lobster farm opens to serve Market in Brit ish columbian no longer have to complain about sluggish and weak lob sters from the says Dave Gen eral manager of the recent a opened Atlantic lobster farm Ballantyne said he and four partners started the lob Ste growing facility in this municipality South of Van Couver because he sees a Market on the West coast that int being served pro Perly by Canadas Atlantic based lobster the he is that Atlantic lobster is flown to Western Canada in lots of about 30 pounds and by time they arrive they Are if not and not up culinary Ballantyne plan is to ship half Pound lobsters from tin East coast and grow them in tanks Here until they reach their Market size of about one a process that takes about six the lobster farm opened in Early August in two old buildings leased from the harbours the closed recirculating seawater capable of holding pounds of live lobsters the largest in can the lobsters have to be kept in separate Compart ments to avoid contamination and to keep the older ones from eating the Young ones which have shed their protective pollution hazards in coastal Waters and the High Cost of waterfront property were chief factors in the decision to be the closed sys Ballantyne water obtained from a special filtration Plant serv ing the Vancouver aquarium is used fur about a month and then treated at a sewage Plant or evaporated from a Pool constr urged at the from the the lob sters Are sold wholesale to local and fish As Well alive or to lie pub Ballantyne a perils t sell about Pou Iuis Ster in the first opera Tion and fets Vancouver could easily absorb pounds a Hall Antonc 15 a Pound for of lob Ster he has i cents a Pound re than the Cost of chipped from the Howe i r Ai i time la and ill v v Stock ave Dow Jones we Vork api Dow Oveia aes Friday open hich one 30lndoi Pfaus Iii Dos n j 15 Uhls m 1p7 61 ii 65 ski 307 77 102 i i i flocks volumes i ogs 98 Frais utile 65 t Toronto Patse tse 300 minerals finance Gas Industry utilities consume mercy Forest train it pipeline golds building Index i97b close Chae Law 9 104772 7c9 09 115297 91949 1704 m 1c0996 1011 77 1211 13 111963 i1ji 6 888 77 81608 129052 156208 110057 128282 147195 150060 132809 100638 167010 120562 204022 Iri i j if1 y Low 1977 High 185 7 ii 1977 Low 131 74 Standard poors 500 Stock f reign Clouch ii 50 113 7s 114 to 20 40 us Sjo 40 f 500 ilk 8i in farm and food from commodity Exchange most prices eased in Active trading Friday at the thursdays trading volume was tonnes of feed of 800 of of of flax and of closing prices 30 lower 246 unchanged dec 10 cents lower May unchanged july unchanged Iso Don Vancouver ept 30 cents lower 50 cents higher cents higher c Barlec t w la loaf up flt Kay 7i 1 oct 40 cents Iov Ter 7 Al Fol k cidi5 f i Del l March 10 f Coilty to is 30 Kye 20 cents new 10 cents lower i a frail 90 Afton 20 94 july 90 40 from Union stockyards there were too few cattle receipts at Winnipeg Stock Yards Friday to establish hog prices were 14 cents lower with the estimated average Price at Days in salts of Thetie m cattle and on and 5j feeder Caile and from new the Stock Market Rose Sun Day As news of a decline in unemployment in the United states provided some encouragement to traders disheartened by rising interest rates and indications that the Economy is the Dow Jones average of 30 industrials closed of at advances led decliners to 2 among new York Stock Exchange listed and volume came to shares against million much of the Days attention focused on the volatile Gam bling which dropped sharply late in the session As rumours circulated that the new York Stock Exchange would make it harder to by the Casino stocks on after the Rumor be came reality As the nose and american Stock Exchange boosted their Down payment requirements from 50 to 75 percent for credit purchases of several gaming the nose said it was acting to assure the Protection of investors and the american Exchange said its move was prompted by cent volatile Price move its getting so anyone can May or May not open a casino1 and their Stock goes up three or four said Harold Vogeli at Merrill few net and among those affected by the ruling were Sally and ramada inns on the nose and of resorts International class a on the ahead by 5 at one led the nose Kostac Tives and dropped to ramada inns lost to of tuft and Caesars world plunged 94 to resorts a lost to and Golden Nugget fell 1 to Eastern which was up 1 to reported its passenger traffic in August was nearly 35 per cent ahead of that Ofa year United airlines gained 2 to flush with new plane Rose from Toronto records tumbled for the second straight Day Friday As Oil fever pushed the to Ronto Stock Market sharply higher in heavy the tse 300 Index made a record on Day jump of Points to the Previ Ous highest single Day in crease was on there were increase in three of the four most heavy a weighted groups within the 14unit tse composite Oil and Gas Rose a record to metals and minerals to in products to financial services fell to boosted Points with the help of a jump by heavyweight dome led the eight gainers among the other 10 groups within the composite pipelines and constructions were the Only trading totalled Mil lion shares with a value of compared with million a total of contracts were traded on the options compared with a Block of Abi Tibi shares traded at led the 158 Block a Block of Toronto Dominion Bank shares traded at a of guld can Ada traded at and a of Kaiser re sources changed hands at trading was halted for about two hours in dome be dome mines and Gulf Canada following re ports of a major Oil find in the Beaufort sea dome Petroleum and Gulf Canada issued cautious statements saying hydrocarbon shows had been but said they were not in a Posi Tion to assess the dome Petroleum closed up at after hitting a High of Gulf closed up at after hitting dome which has a percent interest in dome Petroleum closed up at Montreal prices were generally higher in moderate activity on the Montreal Stock Exchange with the 85 Stock composite Index up at closing volume was compared with oj3 shares traded up to the same time industrials were up at utilities at and papers at Hanks were off at Abi Tibi led industrials for the second consecutive up at on a volume of shares Musco Cho explorations led mining up Throe cents at 32 with shares sex the oils Index jumped to with dome Petroleum up at and Gulf Oil Canada at the two issues made equally dra Matic jumps on the Toronto Stock Exchange amid rumours they made significant Oil finds in the Beaufort celanese Canada was up 15 cents at Imperial Oil a at Masse Ferguson at Noreen Energy resources at and Fca International 10 cents at Thomson newspapers a was off at h and Bank of Nova Scotia at among speculative Silver stack mines was up nine cents at with shares metals London metals Onoon Lap closing in i Junos Sferro d metric in jux if ounce of 7i Ruurt 0 of o to future 815 Ido 344 Tidd future j46 5 3l 25 Fine future Ikic spot 28i Silver future London Gold London a closing Gold s Friday in dollars an London 706 78 i Idaj it 207 to 08 37s t gig Ijo 46 closing Dollar Montreal up Dollar in terms of Canadian funds closed Fri Day Down 9100 at j Pound Ster Ling was up i 31100 at in new the Canadian Dollar was up 350 at and Pound Star Ling was up 1 310 at is Grain inspection cars inspected August w3 24 59 14 1 24 35 30 10 13 grand 1022 contract wheat 670 Grain futures september Winnipeg Low close or cd or 2460 24700 t j Tco 24700 if to j4600 24610 Mia 2illo 2ji10 35000 go 7lu 100 7100 7150 d 7100 7140 7050 7100 7130 7150 7070 7100 i a Irto too 7ix in to 7ivo i40 7130 71 7180 cd 9000 vow who 9060 no 9 us 9150 9wo Volo 9040 940 94 if no 27450 27310 27380 to 27380 27280 27350 a 27000 26870 27000 jul 27040 27330 27300 26990 27010 september 1978 open Chicago my 322 Corn be de 221j my Ane Al 9400 9ioo 5120 66 50 85m 9130 8940 8740 8740 3600 my september be 340 de 335 my 330 327 my 326 323 be 314 4 2i5v4 de 221 i my 232 231 of 2j7 be 124 de Ija my 14j i424 my 146 1454 soy be 655 no 645 640 cd 651 644 646 653j my 640 j 657 by 661 658 ;