Lethbridge Herald, The (Newspaper) - August 27, 1974, Lethbridge, Alberta
Tuesday, August L.ETHBRIDGE Pulp, paper stocks sound value for market investor By SANDRA INGALSBE The Canadian Press Mead and Co Ltd says pulp and paper stocks are sound values at current levels and will continue to out-perform the market The Toronto-based in- vestment firm says that de- spite the shorter-term impli- cations to the industry of a slower pace of economic ac- tivity, particularly in the United States, the outlook con- tinues to be fundamentally strong. This trend, to some degree, has been reflected in the per- formance of the stocks in re- cent months The Toronto Stock Exchange paper and forest index has declined less than the industrial index dur- ing the recent weak market Mead says little change is expected in the industry's fa- vorable demand-supply situ- ation Operating rates of both pulp and newsprint mills should continue to dian newsprint mills are ex- Kuwait, Britain bond deal near KUWAIT (AP) Final ar- rangements are being worked out for Kuwait to invest 8 billion in British government ministry Ford fears Irecalled OAKVILLE, Ont (CP) -A spokesman for Ford Motor Co of Canada Ltd said today about 10 per cent of the Ford vehicles involved in a recall by its United States parent company are in Canada The U S Environmental Protection Agency said Mon- day it has accepted a Ford Motor Co proposal to recall voluntarily the vehicles to replace a valve in the emis sion control system which might malfunction after ex- tended use Models affected are Maver- ick Comet Torino, Montego, Mustang and Ranchero autos with a 250-cubic-mch engine or a 200-cubic-mch engine and automatic transmission built during the 1973 model year and the early part of the 1974- model year cut in trade deficit OTTAWA (CP) A rise in exports outpaced an increase in imports to shrink the foreign trade deficit to million in July from million in June, Statistics Canada reports Seasonally adjusted, ex- ports rose nearly 4 5 per cent over the month, to 687 billion Imports rose 2 5 per cent to 711 billion The bureau said exports in the first seven months of 1974 have averaged 553 billion, 16 5 per cent higher than in the last half of 1973 In the same period, imports have averaged 463 billion, 20 per cent higher The trade balance has aver- aged a surplus, with deficits appearing only in June and July Exports to the United States in July fell to 7 billion from 784 billion in June But exports to the United States over the seven months rose 19 per cent from the same period in 1973, to 879 billion Sales of crude and refined oil and natural gas accounted for two-thirds of that increase, Statistics Canada said Purchases from the United States for seven months rose 27 5 per cent to 960 billion Wheat crop record seen TORONTO (CP) Agriculture Minister William Stewart said today that On- tario farmers will harvest a record wheat crop this fall The average yield of wheat an acre is between 45 and 50 bushels but this year the yield will be between 75 and 100 bushels an acre, the agriculture minister said "It will be the finest wheat crop in the history of the he said There are about bushels of wheat cultivation in Ontario bonds, finance sources said today The transaction is expected to help stabilize the pound sterling and offset British fears of a diversion of Arab oil money to the United States from Europe, they said Abu Dhabi, another Arab oil state on the Persian Gulf, also plans a sizable investment in British bonds, the sources said but they did not say how much it will be The Arab press reported earlier that Kuwait has begun channelling about million in oil money into British in- vestments and has asked the Bank of England for guidelines Banking sources in London said earlier this month that the Arab oil states had begun shifting large amounts of money to U S enterprises from investments in Britain because of concern over the foundering British economy German bank folds BERLIN (AP) The fourth West German bank failure in two months was reported today Collapse of the small Frank- furt bank followed the failure of three larger West German banks By far the biggest of these was the Herstatt Bank of Cologne, which went under June 26 It had assets of million and owed various sums to foreign banks pected to operate at 95 per cent of capacity in 1976, high- est level in more than a dec- ade The substantial increase in product prices during the last year will have a marked im- pact on profitability, Mead says, notwithstanding rising operating costs RETURN IMPROVES Since 1970, the industry's after-tax return on net assets has averaged about 4 5 per cent, with last year's return at about nine per cent While the rate of return should show a healthy im- provement this year, it is be- ing generated by operating assets installed during a pe- riod of many years at a cost which bears little relationship to their present inflated re- placement value, Mead says "As such, major industry expansion is unlikely to take place until the rate of return on investment has risen to a level which can be related to current equipment and debt servicing costs or until there are clear indications that such a level will be reached Mead says the prices at which pulp and paper stocks trade as a multiple of earn- ings now are at their lowest level in more than a decade despite the strongest outlook for the industry in many years "While the prices of pulp and paper shares undoubtedly reflect the general market malaise, we believe that they also reflect concern by some investors that recent reces- sionary trends will sharply curtail shipments and lead to lower industry earnings SEES SOME SLACK Although the industry faces a period of temporary slack in line with a contract m eco- nomic growth, the impact on profitability "will be marginal and short-lived "On the basis of the current economic outlook any reason- able investor concern "has been overly discounted by current stock prices Mead says it continues to recommend shares of Eastern pulp and paper companies, namely Abitibi, Price and Consolidated Bathurst But, with indications that the British Columbia labor Qitiiatinn 15 rgfnrnincr nOF- mal, "further accumulation of MacMillan Bloedel by ac- counts looking beyond the current depressed state of the U S housing industry may be warranted GM cars price rise protested OSHAWA Ont (CP) A council composed of union representatives from General Motors of Canada Ltd plants across the country has formal- ly protested a proposed price increase for 1975-model vehicles Abe Taylor, chairman of the Intra-Corporation Council, said Monday the group feels that the proposed 10-per-cent increase would cause decreas- ed sales of the company's vehicles and lead to future layoffs of Canadian workers The council, which ended a five-day series of meetings here last weekend, criticized the company's plan to equip Canadian vehicles with a catalytic converter system designed to meet United States anti-pollution stan- dards It said other major Cana dian car manufacturers are not equipping their, vehicles with such devices, thus "tak- ing potential sales away from the GM and recommended that "our Cana- dian market cars be produced without the catalytic system The council is composed of elected chairmen of United Auto Workers locals across Canada The Herald Business Toronto market prices continue sharp decline Stocks Miscellaneous Vancouver, Calgary, Montreal MIDLAND DOHERTY LIMITED TORONTO (CP) Prices on the Toronto stock market were sharply lower in light midmorning trading today The industrial index fell 77 to 169 28, golds 2 18 to 448 93, base metals 27 to 71 24 and western oils 1 28 to 151 67 WESTERN OILS AND West Air Pe-Ben Oil Serv 3 grain Afton Inc 2 Albany Alta East Gas 375 4 Trust 17 75 Teledyne 3 85 Trimac 3 (CPi Prices eased under selling pressure today at the 87 Mm of the Winnipeg Commodity Ashland (Geo A Pfd 46 BP Yukon 6 grains drew most of a Brenda trade Cda South Cdn Ex Gas Cdn Homestd Cdn Ind Gas Oil Cdn Long 205 320 5 37 Gas Trk A 1075 Alta Gas Trk Pfd 54 00 Alta Nat Gas 17 25 Gaz Metro 5 50 Gaz Metro A Pfd 55 prices Thunder Bav rapeseed Oct IVov Dec Mav not open Vancouver rapeseed Sept Nov and Cdn and C Gas 9 not open Jan 20 lower 8 18 Chieftan and C Gas B Pfd 19 Oct Dec and Mav not open Dome Trans 8 19 lower 10 50 Pipe 8 wheat Oct Dec May and Fort Cda A Pfd 46 not open Giant Mascot Gibraltar Cda B Pfd 28 25 Trans Cda War Dec March Mav and July not Trans 18 Gt Trans War 1 Oct lower 3 Dec Gt Cdn Oil open Mav 61 1 lower 3 09 July not Lochiel Lytton Oct lower 1 85'. Dec North Cdn Oils and July not open Numac Oil Gas Pancdn Pete Pan 825 Continental 02 Western Warner 25 Oct not open Dec three lower 279 Mav 2'.: lower 2 88 '2 Julv not Norsemmes quotes Mondav basis Place Resources 2 Low Close Ranger 28 Scurry 5 10913i Mines 1 1069 Total 1049 Ulster Standard 1029 United Copper 5 Thunder Bav West 837 West Industries 831 1 801 Acres Petroleum Pete Vancouver BC Sugar C Int I Res 876 862 862 Block 869 849 849 Canbra Cdn Compound 492 846' 2 838 833 Cdn Pac Inv A Cdn Dividend 514 826 820 820 Cdn Pac Cdn Ventures 244 basis Montreal Carhng O Keefe A Growth Fund 3 58 3 380 377 376 2 Carlmg 0 Keefe B G F Special 1 7H9 t Comm Cap Invest Fund 3 94 4 ooi 4 Crestbrook Comnwlth 383 Falcon Leverage 2 389 F and M Trust Int I Venture 4 Investors 5 08 5 2% 285 286 Home Oil Invest Stock Fund 379 287'.. 281 i 282 Home Oil Fund US 7 78 8 303 291 291 Hud Bay In Shares 2 OOG Hud Bay Equity 5 28 5 Hud Bay Oil A Growth Fund 975 Hugh Russell C Mutual 467 320 314 314 Husky Accum 515 312 4 3033j Hudky Oil B Resources 3 72 4 J19 315'4 315' i Husky Oil E W Cdn 4 48 4 324J4 Interprov Pipe W Growth 3 57 3 Interprov Steel Pipe Kaiser 2 Growth 337 370 Royfund 500 190 188 188 Kaiser Res Growth 643 189 Loblaw Co C Accum 366 190 Savings 6 76 7 190 Pacific 4 10 4 Wheat 418 414 414 415 422 i ft rrt n i 426 Volume by 11 a m was 000 shares compared with 414000 shares at the same time Monday Declines outnumbered ad- vances 124 to 57 with 156 issues unchanged Domtar lost to Imasco A Vz to Vz, Trans- Canada PipeLmes Vz to Husky Oil V2 to and Banister to Quebec Sturgeon was down '4 to Chemalloy 20 cents to 60 and Sullivan Mining 15 cents to 35 Siebens fell to United Canso '4 to and Pan Ocean 's to Hudson s Bay Oil gained to Northgate five cents to 50 Giant Mascot three cents to 75 cents, Ranger to and North Canadian Oils 10 cents to 30 Market trends MONTREAL (CP) Prices were mixed in light trading on the Montreal Stock Exchange today Volume at 11 30 a m was 100 shares compared with 179 100 shares at the same time Monday While papers rose 42 to 109 99 banks fell 67 to 215 Oj industrials 64 to 181 54 the composite 63 to 173 61 and utilities 54 to 122 61 Moore fell sb to International Nickel's to S2S-I, and Canadian Pacific Ltd to while Reader s Digest rose '2 to and Price 'j to Among speculative issues Silver Stack Mines rose three cents to D5 cents after trading 18 500 shares VV.COIVER iCP) Prices were down in moderate trading on the Vancouver Stock Exchange Mondav Volume at the close was 1 164 b83 shares In the industrials Captdin International was down 02 a' 13 on ID 500 shares Block, Bros was down 10 at on 11000 shares Grouse Mountain was down 10 on 2 000 shares Finning was unchanged at on 1 700 shares A was unchanged at was unchanged at 50 In the mines Barrier Reef was down 19 at SI 28 on 78 800 shares Development was down 01 at 71 on 51 200 shares Arcadia was down '_ rent at 23 on 36 700 shares Carolm w is up 10 at SI 65 on 36 600 shares Northair was down 23 at 47 and Silver Standard was down 05 at 94 In the oils Princess was down 02 at 14 on 22 oOO shares Pavelte was down 03'.: at 36'.; on 15 800 shares Cop Ex was down 02 at 23 on 9500 shares August was down 02 at 2i on 6902 shares Plains Petroleum w isdown 01 at 11 and Pavette Warrants A were unchanged at 02 On the curb tvdnngc volume was iOr> 31 i shares Thorwasup 10 on 28 500 sh ires Brent was down 01 dt 56 on 26 iOO share1- Lion M.nts was oown 01 at 09 on 17000 shirts Mission was up 06 at 92 on ID >00 shares Rio Sierra Wds down 02 it 08 and Mount livland was unchanged at 03' M-V> Spiralmg interest rates provided more fuel for the continued decline ol the stock market todav analvsts said The noon Dow Jones average ot JO in dustnals was down 10 Db to 57 Some analvsts were predicting a further decline before am rise Losers outnumbered gainers 600 to 402 among the 1 478 issues traded on the New Stock Exchange On the American Stock Exchange the market value index fell 6J to 70 99 Morse Shoe unchanged at was volume Iead( rafter a block trade ol 117 700 shares ai The M SL composite ol all its listed common tucks was olf to to 1747 Activc stocks included McDonalds down to Eastman kodak to and Citicorp l'i, to S2s s The volume'eadir was Corp off to Vib Canadian issuts on the Sfr Canadian Pacific was ap to Dome1- Mines was down i to Si2 i Mean 'i to Seagrams to and Into to S2b i Livestock Calgary (Supplied by Richardson Securities ot Canada) Gas company applies f for increase in rates under EDMONTON (CP) Northwestern Utilities Ltd has applied to the Alberta Public Utilities Board for authority to increase its natural gas rates in 1975 The company wants increased rates to yield more than ex- isting rates, a requested increase of about 12 per cent more than Northwestern Utilities' projected revenues of 1 million this year A spokesman for the company said it is not known yet what impact the proposed rates would have on in- dividual customers In some cases rates will decrease, while in others they may stay or even go the same down The gas utility charges different rates per class of customer industrial, commencal, and residential as well as different rates for communities in its service area of northern Alberta The company services Edmonton, Red Deer, Grande Prairie, Camrose, Wetaskiwin, and 150 other com- munities in Central and Northern Alberta The company said higher rates are necessary to offset higher operating costs and higher interest rates Forest Advocate Sugar Valley Ind Ind Power Foods Cellulose Can NW O Keefe Canada Gas Pfd Central Ind Marconi Vickers Cons Com Bathurst Dickenson Gas Denison Seagrams D Bridge Dome Discovery Textile East Stores East Pete Mobile First Cdn Oil Giant Y Motors Lakes Paper Hollmger Oil Hudson Bay Hydra Sid Iron Walker A Erie Joliet Oil A Kerr A Key Nickel Pipe Lake Grp A Langis Int I Madsen R Ltd Malartic G Martin Douglas A Intern A NuWest New Ferg New Bloed Corp A B Pine Placer Cent Pax Quebec Corp Co Rio CDA Roman Sherntt Sears Steep Can A A Tek Corp Grp A United Mtn Pipe Western Can Pipe WH Copper Carbide Wright Gas Oil Siscoe Yellowkmfe Mfg A Algoma Atco Imperial Agra Bell Scotia Brascan 87' BC Dom 10 12 2 11 50 1850 1375 962 2 737 2 1950 260 475 220 5 12 2 800 21 00 285 1300 1237 2 1287 2 2675 2650 1425 2862 2 3950 2325 925 1337'2 21 00 27 12 2 230 575 3775 1800 2600 1562 2 470 36 12 2 1775 2725 2325 2562 2 1225 6 12 2 11 00 14 5 210 475 6 275 825 1375 2375 4025 1750 460 975 3 10 975 1225 1000 1325 675 925 2825 11 00 3350 9 1275 850 1875 7 62'2 775 325 460 1850 2375 21 25 20 87V2 14 3200 27 3300 Gold futures WINNIPEG (CPI Gold futures U S funds Winnipeg Commodity Fxchange 400 OUNCE CONTRACTS Oct 74 156 OOA Jan 75 Ib3 OOA Apr 75 168 80A Jly 75 174 60B Oct 75 181 30B Friday s volume 62 contracts 100 OUNCE CONTRACTS Aug 74 151 SOB Nov 74 157 Feb 75 164 OOA Mav 75 170 80B Aug 75 177 25A Friday s Volume 61 contracts Feed prices WINNIPF.G (CPl Wheat Board domestic feed gram prices Mondav No 1 red spring wheat 4 14 No 1 feed oats 1 88 No 1 feed barley 3 14 CALGARY (CP) Receipts to II a m Tuesdav from the Calgary public stockyards totalled about 700 head mostly heifers and cows lacking in quality There were insufficient Al and steers on ofkr to establish a market Heifers sold steady while good cows wire scaite selling to lower with sales to 24 80 other grades were steadv and a lew bulls sold steadv Heifers I lovdmmster OT hairview "Ml i49 90 Lethbndge Nil i5082 Foil Macleod (51 10 Hogs sold to 11 im %9 hogs sold Monde, v 7907 66 sows avenge 29 15 Currencies MONTREAI f P mid dav foreign exchange sellinp rates supplied bv the Bank of Montreal dollar 1 4700 Bermuoa dollar 1 01 China renmmbi 5100 Denmark kroner 1680 France franc 2075 Germany mark 3870 Italv liri 001145 Chicago markets New York (Supplied bv Richardson Securities of Canada) Amr T T Anaconda Beth Steel Chrysler Comsat Dupont General Motors Gulf Int Harvester Kenn Copper Sears Exxon Texas Gulf Texas Co Wix Corporation Woolworth 42 87 19 62 Vj 2975 1275 25 27 11700 38 1787V? 2050 30 68 87 2725 23 11 50 Westinghouse 11 00 US Steel 43 50 Gen Tel Elec 1962% TORONTO AVERAGES 20 Industrials 16907 down 98 20 Golds 447 09 down 4 02 10 Base Metals 7096 down 55 15 Western Oils 151 70 down 1 25 Volume 876 000 NEW YORK AVERAGfcS 20 Industrials 67772 down 1040 20 Rails 141 79 down 1 15 15 Utilities 6377 up 19 65 Stocks 208 25 down 2 28 Volume 5 660 000 Poachers beware Nova Scotia forest ranger Bob Matheson keeps a firm hold on his dog, Major, one of four dogs used by the provin- cial lands and forests department to track down arsonists and poachers The dogs also are used occasionally to help lo- cate missing persons CHIC VGO I Profit taking after recent advances sent some farm cornmoditv futures plummeting on the Board of Trade Mondav Sovbeans fell the limit of 20 cents T bushel while corn futures declined the limit of 10 tents Sov be in oil which .had fallen the limit of 100 points for three straight sessions moved into a 150 point limit range under of trade rules It touched the limits on the downside bneflv hut closed a few points above the bottom Sov bean meal lost about a ton The selling in the soybean complex tended to influence liquidation in wheat futures which fell about 15 cents a bushel Oats closed 5' lower Silver copper cocoa coffee and world sugar prices fluctuated nther aimlesslv through most of the dav until the close On the Mercantile Fxchange pork bellies increased the limit of 150 points while shell eggs fell the limit of 200 points aid live cattle and hogs closed on irregular tonex Profit taking was the principal factor in the selling of farm commodity futures Stveral had advanced in recent davs Mter some time of rain the new crops had apparently shown some improvement thus the selling set in Silver was down about IT cents an ounce cocoa lost 115 points was down about one cent copper 140 points sugar was points lower to 100 higher Pork bellies advanced tht limit of 150 points on buvmg linked with a firm cash mirket and lower inventories while cattle and hogs declined on largelv increased marketings Shell eggs eased with grains Gram quotations Mondav Wheat Sep 4 26 Dec 4 41 Mar 4 53 May 4 47 lul 4 27 Torn Sep 156 Dec 352'2 Mar W. May 161 Jul 161-4 Oats Sep 1 59 Dec 1 61'2 Mar 1 70 Vhv 1 "0 Double S Drilling THREE HILLS, ALBERTA WATER WELL DRILLING tool. Owner operated Larry and Tom Scott. Currently operating in Lethbridge. Phone 757-3681 BARONS for more information.