Finding Spectacular Gains From Forex And Shares

Whether you are investing in shares or Forex yourairplanes; Owens-Corning Fiberglas, manufacturer of
main gains will be capital appreciation: The investor ininsulation, filters and textiles, and glass fiber boats, and
this category is not interested in dividends but in seeingBendix Aviation, no infant, but investing heavily in
the market price of his stock increase or one currencydiversification and new-product development. Dow and
improving against another.Minnesota Mining might also be grouped here, although
There are three advantages to this kind of operation.possibly by now they should be included among the
First, if your judgment has been good, you make moreolder companies Corning Glass, Goodrich, Union
money faster than by relying on dividends. ForCarbide, Westinghouse, National Lead, Minneapolis
example, the man who buys 100 shares at $30 andHoneywell, Eastman Kodak-whose youthful spirit and
sells even at a 10-point profit has $1,000 (lessastonishing technological resources have kept them in
commissions) to show for his year's work. Thisthe forefront of American industry for years.
represents nearly seven years' worth of dividendsAll of these examples would qualify as growth stocks,
from the $30 stock yielding a conventional 5 per cent.as the kind of investment that would tempt the
Secondly, if you hold your investment for more thaninvestor seeking capital appreciation.
six months, your profit is considered a long-term capitalBut appreciation can also follow from subtle and
gain, taxable at a maximum 25 per cent rate for manycomplicated changes in a company's structure. In these
people, a saving over straight-income rates.cases, appreciation may have nothing to do with a
Finally, if your stock doesn't go up as anticipated, therenew product or even with the company's prospects
is always the chance that it will at least be a decentwithin its industry. Rather it is the anticipated result of a
income-producer.merger, a spin-off (distribution of assets), a
This is something of a rationalization, of course. Therereorganization, or any one of a number of procedures
is no use pretending to be in the capital-appreciationavailable to the complex institution known as a
business if a little mess of dividends is all you have tocorporation.
show for your efforts. The more consistent course isTalk of a merger between Bethlehem Steel and
to drop the non-producing stock (losses, if any, are taxYoungstown Sheet & Tube made both stocks
deductible) and shop around for a winner. This, to beinteresting possibilities. U.S. Foil "B" (American Stock
sure, takes guts. There's nothing like a couple ofExchange), representing about 48 per cent control of
growth stocks that don't grow to take the steam outReynolds Aluminum; duPont, which is having to divest
of a capital-appreciation manitself of 63 million shares of General Motors stock;
On the other hand, the gloriously rising market sinceNorthern Pacific Railway, which has important oil
World War II has simplified the task of discovering andinterests in the booming Williston Basin of North
getting aboard a company with promising prospects.Dakota; El Paso Natural Gas, which has formed a
And, as noted, an investor could wait five years for hissubsidiary, Rare Metals Corp., for uranium exploration
10-point gain and still be ahead of the plugger piling upand processing; and many others are examples of
dividends.stocks with potential capital-gains features.
Capital appreciation, it should be noted, is an omnibusIt is not possible to say exactly how or if the gains will
term covering any change or advance in a company'sbe realized. Mergers require an adjustment of the
position which might be reflected in the market price. Itstock prices of the participants which may benefit one
may mean the emergence of a new company in aor the other; or public interest in the prospects of the
new industry, the coming of age of a speculativecombined company may cause the stock to spurt.
youngster of a decade or two ago, or even newAn as yet undeveloped asset, such as Northern
evidence of vitality in anestablished veteran.Pacific's oil, or Inland Steel's Steep Rock iron interest in
Recently for instance, the stock of Ampex, Inc., aOntario, might mean an eventual bonanza which would
bright little California company manufacturing top notchbe reflected in stock prices or a capital distribution of
equipment for the booming tape-recorder industry, hascash or stock. Several years back, Andes Copper, an
more than doubled in value.Anaconda subsidiary operating in Chile, made a capital
Dozens of small companies dealing in electronics,distribution of $6 per share at a time when the stock's
precision equipment, and other fruits of currentmarket price was hovering between $12 and $15.
scientific research (Tracerlab, National Research,Most gains on Forex are capital gains, where the
Beckman Instruments, etc.) are similarly attractingcurrency trader is hoping for an increase in the value
attention and consequent jumps in price.of one currency against another. Profits can be
Somewhat more established and riding crests ofspectacular, but it is worthhaving good Forex software
speculative interest are such stocks as Generalto prevent large losses.
Dynamics, builder of atomic submarines and Convair