Companies

Pacific Trading

Their Financial Strength and Share Values

BECAUSE of the lack of ships to take their copra to the remaining mar kets, coconut growers in the Pacific are having a thin time. This necessarily reacts upon the finances of the big trad ing firms operating in the Pacific.

Their position is made very difficult by the fact that, not only is their turnover reduced, but they also are expected to finance a large proportion of the planters, and try to keep them on their plantations. The call upon their reserves is heavy—but, as demonstrated in 1914- 18, and in the Depression, their financial strength is very great, and they can take the strain.

The stock market reaction to their condition is interesting. Hereunder, are the buyers’ quotations for their ordinary £1 shares, a year ago, and last week:—

In view of everything, the slight fall in Burns Philp and Morris Hedstrom shares is notable.

The fall in the investors’ estimate of the Carpenter share values is due to the fact that much of the Co.’s assets are in New Guinea, and the future of New Guinea seems uncertain. That is silly.

So far as the outcome of the war is con cerned, New Guinea is in the same posi tion as all other British-Pacific territories. Nothing of a fundamental character has been changed in the Car penter structure, to place the shares at a disadvantage, as compared with those of the other Pacific trading companies.

All the companies are likely to have a bad time, for a while, but all three are well prepared for a siege.

July 5, July 5, 1939. 1940.

Burns, Philp & Co. .. . . 51/- 49/- W. R. Carpenter & Co. . . 40/- 28/- Morris, Hedstrom, Ltd. . . 23/3 21/-