High Point Enterprise Newspaper Archives May 5 1972, Page 19

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High Point Enterprise (Newspaper) - May 5, 1972, High Point, North Carolina Tola separate regular Prier 120.94. Ill High Point Enterprise Friday May 5, 1972 business Mirror Wall Street surprised by controls by John Cunniff a business analyst new York a always looking ahead because that a where the Money is. Wall Street suddenly has been surprised from the rear by those phase 2 controls on profit margins. The mystery is Why it should have been surprised because the limitations were in effect Ever since the end of the 90-Day freeze last november. They weren t highly publicized but they did exist. The most significant of these regulations clearly limits the margin of profits on sales to the average of the Best two of the past three years and Calls for Price rollbacks penalties and even rebates if the rate is exceeded still when those scintillating income reports for the first Quarter were released there were few analysts in Wall Street who bothered to ask if they were in violation of the guidelines. A search through Many of them revealed no mention at All. And the very few who showed concern ended by downplaying the Impact of the guidelines. Nobody seemed worried As it now appears a Good Many of the profits statements Are in violation. C. Jackson Grayson. Price commission chairman estimates that to per cent of Early returns for the first Quarter fall into that category. In addition it seems that a Good Many companies were As indifferent to the matter of guidelines As was Wall Street in ignoring the potential Impact on prices. They filed late or failed to file completely. What Grayson has reminded Industry is that it can no longer take the easy but inflationary Way to profits that it cannot Hope to make its income statement look Good simply by raising prices. Instead it must earn those profits by increasing its sales. Any company Able and willing to sell More can continue to show bigger profit figures Selling however is hard work much harder than changing Price tags the realization stunned the Street five months delayed. What has become Clear from this misunderstanding is that a Brand new measure of corporate health must be used by Stock analysts. The profit sales ratio is now As important As Price earnings or any other measure to judge a company a profit Outlook by the old measures alone can be terribly misleading. A new morality has been introduced and a yardstick for measuring it also has been supplied. The Man who looks for trouble Over estimates h i s capacity. Save $1.02 menus sport shirts 97 Kach save 2.12 menus flared jeans regular it pair save 30.951 10-cu. In. Mower with grass Alcher 99 89 lowest Price this year 20-lb. Non polluting detergent 99 Reg. $5. To limit 2 while quantities last 3 Hicks a fantastic offer. 20 lbs. Of fast cleaning detergent in a reusable 10-qt. Pail for less than you d pay for the same in a 20-lb. Box. Concentrated you Only need12 cup per average Wash. Regular $329.99 save30.99 6-hp Riding Lawn Mower $ 299 Check Sears Low Price camping time 9x9-kt. I umbrella tent 99 39 Reg. 99 save 22 camping fuel 77c save 2.02 a pair menus and boys jeepers 497 jul Patr regular $6.99 Black and White Only sizes 3 i to 121 save 22 to 82 boys and girls tops and shorts choose from Reg. .�9 to 1.79 hoy1 shirts and shorts or girl Reg. 1.19 tops and shorts. Sizes 3-Fn. Save 41 100% Cotton Sanford Zed Duck 88 e i. Regular si.29 cd. Your vote save 60 electric Start hider Reg. $559.95 save 50 7-Iip hider save 50 save #6 212-Gal. Gas an Ort less trimmer Al Mills says your vote is the last precious Possession of a free people use it Mills can do the Job in Raleigh candidate n c. Sinai primary this saturday Reg. $3.49 2 99 Reg. $32.99 26 99 it s Garden time. A a Reg. $2.66 assorted roses in gallon cans in Bud and Bloom. I 99 bedding plants h to 12 per tray petunias marigolds Celosia Dahlia. Of of. 50-lbs. W eed free top soil. La Reg. $5.99 5.5-cu. It. Sphagnum peat Moss 4�?� Reg. $1.99 Trees in poly bags. Mimosa chinese Lim. Purple Leaf Plum. Limited quantities. I 49 shop at scars and save smcuar%nitt4 Wor it m Sears 101 s. Wrenn St. I retail 885-1051 i free High Point. . I Catalon 885-4181 parking 18-in. Diagonal measure color portable to $ Reg. �?�399.9.�?~ 369 15-in. Diagonal measure color portable to $ Reg. �?�319.9. 289 25-in. Diagonal measure Spanish color to $ Reg. �?�599.95 539 43351 am pm console stereo with 8-track tape deck $ Reg. �?�299.95 269 31566

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