BOOM IN RUBBER SHARES

Dominion, Volume 30, Issue 154, 27 March 1937, Page VI (Supplement)

BOOM IN RUBBER SHARES

Reward To Bold Investors

Rubber shares selling at a penny each in 1932, and now worth from 2/- to -1/eaeh, have drought fortunes to bold investors. In 1932 rubber sold at one time at I 5-Sd. a pound. This price, if maintained. would have meant, the financial exhaustion of even the strongest; companies, as production costs averaged 3d. a pound, says the “Sunday Express.”

Early in 1934 rubber exports were restricted. Since then the price hn.s improved slowly, aided by the general recovery in world trade. For the whole of 1936 the price averaged 7 ; i<l. a pound, and the current price of IOJd. is around Ihe best level touched since 1929. Five years ago the speculator who wanted to liny shares at a penny a time had a wide choice. The prices now are 4/-, l/7i, 1/4. 2/9 for respective companies. .There have been equally spectacular

rises in the shares of those companies which had the distinction of being quoted in shillings in the worst slump yea r.

Anglo Malay have come up from 2/lo .19/6: Bali Lias, from 2/6 to 40/-; Java L’nited. from 2/3 Io 24/-: Sialang from 3/6 to 29/3; Taudjong. from 2/9 to 30/-: Travaueorc, from 2/6 to 36/6: L’nited Sim Belong, from .14/6 to 76/-.

A stockbroker specialising in rubber shares said : “lu 1932 a man of nearly eighty insisted on buying parcels of all the shares lie could gel al Id. and Id. each. “lie told us that if eight out of every leu concerns went broke Hie remaining two ought to return him the whole of his outlay. "Altogether lie spent between fsotl and £9OO in this way. His friends thought him a little crazy. But none of the shares proved a loser. lie still has all his shares. They must, be worth £12,000 or £15,000.