Cedar Rapids Gazette (Newspaper) - April 29, 1974, Cedar Rapids, Iowa
I lie Investor's Guide
By Sam Shulsky
Q — Time was when a price-earnings ratio of 22-to-l set a stock s value. That formula has been emasculated by inflation, high interest rates and contrived and rigged markets.
A — lf there is — or ever was — a price-earnings rule of 22-to-l I don’t know it. Price-earnings ratios are reflections of wide swings in investor sentiment and are certainly not the result of “rigged markets.”
During the boom of the late fiOs, when speculators were convinced it “wasn’t gonna rain no more, no more.” stoc ks (especially with a glamor factor attached) were bid up to 22 and 32 and even 52 times per share earnings. In recent
months, when all sorts of troubles seemed to have hit us at once, shares of even old-line companies have fallen to 7, 8 and 9 times earnings. What price do you want to pay for a dream? Look at the price-earnings ratio.
Your letter goes on to suggest that there bt* market price controls just as there are price and wage controls. But I can’t imagine that a government agency could set the price of AT and T at the opening exchange bell every day and still leave us with a viable stock market.
Worldwide speculative demand has a way of asserting itself — witness the sharp rise in the market price of gold which, as a matter of practice, is set by a group in London.
For Better Health
Bed Bugs Are Transported On Suitcase, in Laundry
By Dr. S. I,. Andelman
“Don't let the bedbugs bite,” is the warning most of us don’t have to worry about Luckily, the bedbug is far less familiar than it was a few generations ago, at least rn most parts of the world.
But we do find them now and then — in rooming houses, camp buildings and poultry sheds — and no matter how clean we keep our homes, bedbugs may one day find their way iii That’s because they can be transported from place to place, on a suitcase, a package, secondhand furniture or a basket of laundry’.
Bedbugs give off an unpleasant smell, an odor from secretions of a scent gland Although they usually feed at night, they’ll come out during the day if the light is subdued.
Since they are small (about 2-ld inch long and Md inch wide) and flat, large numbers of bedbugs can hide in the
S. L. Andelman
Familiar’ Taxi Proves Own Car
TU SON, Ari/ (ITI) -Thomas V ilia thought there was something familiar about the taxi he rode in recently in the border town of Nogales. Mexico.
It turned out to In* his own car — stolen from his home in Tucson about a month before. Mexican authorities returned the car to him
Horse Race Results
Hint from Utility?
LOS ANGELES (I PI) — The department of water and power recently included, with electric bills, a pamphlet on changes in the city’s energy saving law It gave a telephone number to ( all for further information Because of a misprint, the number given connects callers with a recording giving horse race results
Streaking May Scare Horses/ Judge Warns
PASADENA, (alif (UPI) -Municipal Judge Warren Et-tniger placed three college students — a man and two sisters — on six months probation for streaking and admonished them with what the judge said was an English maxim
“Do anything you want — but don’t do it in the streets or you’ll frighten the horses
Lawyer Took Hot Car
For Fee, Jury Finds
VAN NUYS, Calif (UPI) -Lawyer Jack Schnndt defended Donald Lee Bledsoe last year on a charge of auto theft Bledsoe was convicted.
[.ast week, Schmidt was too A jury found the attorney guilty of accepting a stolen car from Bledsoe to cover his legal fee.
skimpiest space in the most unlikely locations. They congregate in large numbers, and masses of them can fit into cracks in plaster, along the joint between baseboard and wall, in the welts and tufts of mattresses; in the uphostery of chairs and in the joints of wooden bedsteads; in cracks around window frames, and liehind wallpaper
Not everyone reacts in tin* same way to the bites of bedbugs Some people feel hardly anything. Others have sore swellings, caused by local infection or an allergic reaction to the bedbug’s saliva.
Once bedbugs are discovered, you can get rid of them without too many problems Examine every possible nook, crack and crevice iii floors, walls, ceiling and ; furniture Bedbugs will pack | by the thousands behind loose I wallpaper, so peel it away to I get at them and their eggs I Don’t exempt metal furniture from the search; if it has cracks or hollow legs or hidden | surfaces, it can harbor the j bugs
Temperature and humidity are two natural enemies of I bedbugs, and they’ll also succumb to a number of man-\ made conditions. If humidity is I high. the bugs die at temperatures of KHI degree's Fahrenheit or more When it is in the mid-50s or colder, the bugs | stop crawling, feeding and | laving eggs laical attacks on j cracks, loose wallpaper and furniture with household insect sprays are a good start in eradicating the pests It is usually effective to fumigate with sulfur candle's and insecticides or to heat your home to a temperature well over 108 degree's for several hours at a time.
Once they’re dead, remove the* bugs, thoroughly scrub your home and follow up with a regular schedule of inspections to make sure they don't return # • #
Dr Andelman welcomes letters outlining problems he may discuss in future columns He regrets, however, he cannot personally answer mail Write to him in care of The Gazette.
When, months ago, it es-
tablished a price, say, of $90 an
ounce, that certainly failed to
choke off widespread demand,
w hich has boosted the price to
around twice that figure.
* * *
Q — I recently bought some shares of a small television equipment company. It seemed like a good idea since television is so popular today, but now I can't even find it listed.
A — I can’t find any listing, either, (’ontact the broker through whom you bought the shares if you want to learn the current market price.
I’m not sure precisely what you mean by television being so popular today. I guess it’s true that many people watch a lot of television, but that’s hardly evidence that one particular television equipment company is going to do well or poorly. After all, the automobile industry has grown tremendously in the last 70 years — but you wouldn’t have done very well if you had invested in any of the more than 2,000 auto companies which conked out.
* * *
Q — I’m a widow with money invested in treasury bonds at H, BLj and 7 percent. I don’t think I’m getting enough income from my money,
A — Treasury bonds, as do all high-grade bonds, adjust to the market practically every day. If you own a Treasury tiond with a ti percent coupon you can be sure it has been marki'd down in market price to the level where it yields nearly 8 percent to maturity. So there is little room for you to move around — that is, selling what you have and buying others with a higher coupon rate When they mature, you can reinvest at higher coupons.
* * *
Q — I enclose c opies of some confirmations I received on purchase's of municipal bonds. The broker said he made no commission Is that right‘>
A — As you can see from the* confirmation notice, “as principal we have sold to you.” There was no commission since the broker did not act as agent He sold you bonds he j already owned, at, presuma-| bly. a mark-up in price. Call it j commission or mark-up, he J has to make a living.
♦ 9 0
Q — In 1882 I invested $2.(MHI I in 105 shares of a mutual fund.
I These* have* since grown to 35(1 j share's How can I re*de*em the*
I shares without being taxed all at once?
A — A tax would In* lev it'd on any c apital gain
So we* must first determine whether you have any gain to be taxe'd.
Your 350 shares, as of the moment of writing, are worth about $3,000 They cost you J $2,000 plus ail the dividends I and capital gains you reinvest* I e*d over the* last 12 years
You'll have to add all those annual dividend and capital gains to the original $2,000 outlay and see how that total compares with the $3,000 you would now receive. I don’t think you will have much in capital gains to worry about.
Mr ShulsXv welcomes written questions. but tie will be able to orovtde answer* only through the column For lists ot growth and dividend stocks, please include o sell addressed, stamped en velope Address your realest* to Sam Shulsky, care of The Gazette
By Oswald k James Jacoby
Jim: “How about showing some unusual false-card plays?”
Oswald: “Here’s a fairly simple one by third hand West opens the five of spades against South’s three notrump con-
♦ 10 7 V A Q6
♦ K J 10 8 6 *942
A J 9 6 5 3 4 A Q 8
▼ 10 7 3 ? .1852
♦ 5 4 ♦ A 7
* Q IO 0 * 8 7 5 3
SOI TH ID)
♦ K 42 f K94
♦ y 932
♦ A K J
West North East South
INT. Pass Pass
Opening lead— *5
tract. Here. East should play the que*en not the ace.”
Jim: “This isn t really a false card. It is the play of third-hand second high instead of high "
Oswald: “Whatever you call the play, it is important that East play the queen. If he plays the ace and continues with the que*en. South will duck, win the third le*ad of the suit. knock out the ace* of diamonds and make his contract since* East won’t l)t* able to le*ad a spade. ”
Jim: “Now sen* what happens if East plays the queen South can still duck and wind up a winner, but will he?”
Oswald: “Possibly, if East goes through a long ceremony of thinking before playing the queen, but South players are human South would look mighty silly if West had led from ace-jack and his duck gave away the whole spade suit Therefore*, South will take his king and hope for a 4-4 spade* break which will let him make* his contract irrespective of the* location of both missing aces.
Tho bidding has been
West North East South
I* Pass IV
I Pass I * Pass ?
You. South, hold A K 2 * A J 7 6 5 ♦ A 6 4 9 4
A—lf you plat fourth-suit forcing. hid an irregular two diamonds Otherwise jump to three notrump since two notrump at this stage would not he an absolute force
TODAY S QUESTION
You do bid two diamonds and your partner jumps lo three* notrump W hat do you do now *
ON THIS DATE in 1945, American soldiers fighting in Germany liberate*d 32,(KHI Nazi victims at the Dachau concentration camp
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Scientists Say Milky Way Is Like Starry Hurricane
By Frank Carey
WASHINGTON (AP) — New evidence from outer space suggests that our Milky Way galaxy may be built like a vast whirling hurricane, with a quiet “eye” at its center but plenty of action for billions of miles around in (he form of powerful cosmic rays.
And our solar system, though just a pipsqueak among some IOO billion stars and a vast amount of interstellar dust and gas that make up the galaxy, appears close to the heart of the action.
This new and more detailed concept of how the vast Milky Way is constructed and how its matter and energy are distributed was formed by a team of space agency scientists.
They said the picture has emerged from findings made by the agency’s Small Astronomy Satellite-2 — or “SAS-2” — which has opened up a new variety of celestial snooping termed “gamma ray astronomy.”
This new branch of astronomy — the detection of a special form of rays that are. in effect, the offspring of cosmic rays — holds possibilities for tapping space secrets im-penetrable to optical, radio or X-ray astronomy, the scientists reported.
Researchers (I F. Bignami and ('. E. Fichtel of the National Aeronautics and Space Administration’s Goddard Space Flight center at Greenbelt, Md., told about it in a report to the spring meeting of the American Physical Society.
They said the tiny SAS-2 satellite. launched in November. 1972, into an orbit 390 miles above the earth, has been regularly recording gamma rays coming from the* Milky Way, a huge, flattened structure shaped something like a grindstone and having a
diameter of 57 million-billion miles.
Most of the rays observed thus far, they said, have been coming from regions relatively close to the solar system, located about two-thirds of the way between the galaxy’s center and its edge
Speed of Light
But even so, the scientists estimate that the rays — even though traveling at 180,900 miles per second, the speed of light — started toward the earth some 5.000 to IO OOO years ago.
They said the rays arise from the interaction of cosmic rays — high-speed nuclear particles believed to pervade the universe — on matter throughout the galaxy.
The gamma rays, which have IO million times the energy of X-rays, thus constitute “fingerprints” of the distribution and passage of cosmic rays. They also provide tips on how matter is distributed throughout the Milky Way.
Scientists long have known that cosmic rays come from various parts of the galaxy. But pinpointing the major sources of the rays within the Milky Way has thus far eluded science.
Now the findings of SAS-2 have indicated that little or no cosmic radiation is coming from the center of the galaxy.
In contrast, there appear to Im* rich sources of such rays in the highly-dense regions of stars and other matter that curve, like the arms of spirals, around the “quiet” center — including the “spiral arm region" inward from the sun.
ON THIS DATE in 1909, Duke Ellington, the composer and musician, was presented the Presidential Medal for Freedom by President Nixon at a White House ceremony.
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Mystified by Bizarre Fish
SAN FRANCISCO (AP) -‘ I’ve been around fish all my life, and I’ve never seen anything like it,’’ Larry del Guerra said after netting a bizarre fish with ragged fins off the Earallone islands “It’s a freak," he said. “It s got a bulldog fact*, a white nose* and no scales. All the oldtimers took a look at it, and nobody knew what it was.”
Vietnam VV ar Hero
FAIRFIELD, III. (UPI) -When Kenneth Kays was a marine corps medic in Vietnam, he was hit by a mortar shell and lost a leg while rescuing members of his platoon President Nixon awarded him the Medal of Honor for that last Oct. 15 This week. Kays. 24. pled guilty to charges of growing marijuana in his parents’ greenhouse, lb* was fined SKM! and placed on probation.
Lillian Dempster, associate curator at Stcinhart Aquarium here, later identified the fish Wednesday as an leosteus aenigmaticus — a ragfish, if you will.
Although it inhabits coastal waters north to Alaska and off Japan, she said the fish is “seldom seen.”
The Earallones are a group of uninhabited, windswept islands 20 miles from San Francisco.
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