Northwest Arkansas Times from Fayetteville, Arkansas on August 7, 1972 · Page 6
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Northwest Arkansas Times from Fayetteville, Arkansas · Page 6

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Fayetteville, Arkansas
Issue Date:
Monday, August 7, 1972
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Page 6
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NoHhw««Arkftmlo. TIMES, Men., M'S. 7, 1973 , ARKANSAS True State Of Market? v '· i · · ' , ' " ' . . . , . ' ·' · Stocks Respond Slowly To Prolit Reports By JOHNiCUNNIKF Business Analyst , NEW YORK (AP) -- Despite some sharp but shortlived bursts, slock prlcas in gei(orul »ro slow to respond to the gill- ; terlng profits reports now being turned In by American corpo- · rations,'' , . ; : v - , . ' . ; · . .· ·,,' r ,The Dow Jones Industrlsl Av. erngejs right where,it'was six ybars ago, · . ' . ' ' · ' "': ; ! - This r suBgcsts that 'the DJIA, .which Includes .laggards such «S ,Texaco, i American Telephone, General Motors.and U.S. Steer and Bethlehem Steel, mJ^lH not accurately reflect the true stale of the market, ' - To some extent this might be so. Last week the 1 price-earn- Ings ratio of DJIA companies for Hie 12 months ended March 30 was 16.2. Since the. recent surge of profits that ratio now should .be well under;16. : By contrast, the ratio of 813 stocks listed on the New York Stock Exchange is more than , 18. meaning buyers Rre willing to pay 18 times per share earnings. : : '. BASIC · . . .. Those DJIA companies are 'basic to the American economy; it \vpuld collapse without the contributions o f . this elite ; 30. But while it may: be true -that a's they go. so goes the nation, that formula doesn't apply i to slocks. ; · ; : . Bnseci on (he usual statistics ; used by Wall Street, slocks should be higher. Some are nudging their all-time highs.' There is good reason for this: Profits are soaring. A First National City Bank survey shows a 16 per cent rise in after-tax earnings tor the first six months of 1D72, compared with a year earlier. j The survey shows food prod-, ucl companies with a M per cent gain, cement-glass-slone 30, electrical equipment-electronics 32, and apparel 24, to name a few. And the future ot profits, by. :mosl current estimates--even with controls--is bullish, Aren't we supposed then to believe that the outlook for the whole market, the entire, domestic economy is bullish loo? Those who',believe strongly in our' corporate way of life contend i'-wlth theological fervor that this is so. DESCRIBES FAITH John Wright, the erudite^ research-in Inded proprietor ... of Wright Investors Service, an organization that provides much of the basic research used by trust departments and others, describes the faith: "The resurgence of corporate profils is the dominant tact of 1972 economic life. "For the economy, it is the engine which will propel the growth of Gross National Product lo a record-breaking $100 billion annual rate. ."For the administration, it is the producer of taxable revenues which will shrink the budget deficit to manageable dimensions,; , "For the nation, it is the capital generating machine which will expand and improve both our productivity and our productive capacity." INVESTORS · And for investors and the market? "It is the irresistible force which will propel slock prices to now record ntghs despite all of the fears and uncertainties of domosllb politics and International discord." ; It Is apparent, however, that many Investors don't share the faith, and faith--mixed with a variety of lesser ingredients, including .greed--is.Avliat makes the market, Knowledge of the past Is not sufficient; faith in tht'fitlure is nciiessary. ; It Is'fnar of the unknown that seems lo be stalling many of what could be, under different circumstances, among'the star market performers. It is a conglomerate of factors that brokers categorize as uncertainty, and uncertalny produces agnostics who wait for proof. Snak« Eyes SANTA MONICA, Calif, (AP) --. Called to the scene of a balky apartment house water healer, repairman Brian Peters struck a.match to relight.11. Glittering up at him were 2E snake eyes. There were 14 rattlesnakes under the healer. The owner may pick them up at the shelter after having a talk with police about a city ordinance banning dangerous pets, h shelter spokesman said. PERSIAN ANTIQUES (all authentic) 807 2nd St. N.W. Bentonville, Ark. Vote for these Total Automatic Color consoles and you'll be the winner! ^ Magnavox T.A.C, automatically + tteepsjlesh tones natural, * pictures sharp and perfectly * tuned! No more green * or purple faces! Just * brilliant color viewing! Model 7136-Medilerranean styling * 4 Ttour * Choice * 499005 Capture all the drama and pageantry of the '72 Conventions on one of these beautiful ultra-ractangularscreen color consoles-^fromMagnsvox, Each has T.A.C.... so there's no more jumping up and down to adjust controls--you'll always get a color-right picture--on every channel, every time--automatically! Strip in today .,. See these great color TV values--and all the other Magnavox Convention Winners--including color portables with T.A.C. .., Magnavox--the "People's Choice"! oL euuiA HOME CENTER OPEN MONDAY and THURSDAY NIGHTS 'TIL 8:30 Intensify Arms Protest r Says Union Leader TOKYO (AP) - The chalr- an of Japan's 4W-milllon- omlor General Council 6t ·ado Unions, today called for lonsltlcnlldn of demonslrn- ms against movement ot U.S. littery weapons from" Japan South Vietnam. Makoto Ichlkawa praised the tnonstrators who laat week Ited a U.S. convoy ot five r- orcd vehicles bound for a pier Yokohama. Sunday night ter a 47-hour delay -- the nvoy returned to an army da Sfi|prs Attack Radio Relay Post Northwest Of Saigon SAtOON (AP) -- Scores of North .Vlotnnmoso mul Viol Cong sappoi's wllh explosives strapped to tftclr backs attacked a strategic moimlalnlop U.S, radio relay station muter cover of n iOp-round rocket nnd mbrtar bnrrngo in pro-rinvn darkness today. The U.S. and South Vietnamese commands satd the assault wag driven'tack with no miijuv damage to Iho installation atop 3,000-fool:Niit BH Don mountain 36 miles northwest of Snlgon. \ The South Vietnamese inilltla unit: guarding the small U.S. Air Fovco team of radio spe- lost Tour men klllort am. It wouiidcil, Mold reports said, The U,S, Command sn|d thero wore no American disunities. H was Iho first attack on lhi radio relay atatlon In HQvcrnl months, but the third altiick this week against American installations. VITAL The station Is a vital part of tho U.S. tactical communications network covering both the southern half of South Viel- n n in and Cambodln. Amonj other tasks, It man Hot a and re lay. 1 ) message from hundreds o U.S. aircraft. CommunlftUod force* heavily aliollod the Dion Hos Air Bnso, 15 mllOS liUrihpnitt of SlllflJIl, and tho Dn Nnng nil 1 bnno { tho northern tinniior of South Vietnam curlier Hits ,\vook, In these two shelling attacks, two AiTior-ioiiiis and five Vtolnnmofio woro reported killed and 61 Americans mid 25 Vietnamese wounded. From Iho noiihoni f r o n t , Associated Press Correspondent Holgor Jensen roixirlod tlwl house-to-house tlghllng was continuing to the North, South and East ot the Qunng Trl Cltu del. South Vietnamese marines woro not having much success In trying to push Iho North Vietnamese westward across tho Thrvoh Hnn River to Isolate the Citadel, Jensen said. Explaining Iho slow progress a fluid o!flcor said lone armcr North Vietnamese would "sit honita And hold up im company nnttl wo kill them, and lltoro'a one In noarly evofx lioiuo." IIOUSH TO I10USK .·." JonBtw said the Marines worn moving I'rom lioiwo to houso, 'king light anti-tank weapons ill the already vulnod ntnicliiron |n efforts to blow them and Hit snipers up. *, North Vlolimmoso artillery continued to rain down on llin Marino positions. One government unit was hit with 300 rounds early today, ·; "Get with the Girls who moke it" FABRIC CITY If You're thinking Back-to-School...THINK Vassafet±e*'s Pretty New Fall Under- Fashions Be read/ for school in Vassarelt«*"s Crepelon® bra contoured with laminated fiberfill. Lycra* spandex power-net body bound with slrelch laca edg- . ing. While or Nude. 1 Sizes 32-36 A-B-C. . . *5.00 Vassarelte brief pantygirdle..-. a natural under shortcut fashions: Sleek and smooth brief of sofl-stretch Stay There® knit with lightweight tummy control . , . panel. White or Nude. S-M-L sizes... *4.50 Taffatlna Shapekeeper, long ankle-length half slip with a deep back slit, of stabilized Antron* III nylon tricot. 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