Military electronics have led the way toward miniaturization and “ruggedization.” Resistors, capacitors and other components have become much smaller, too. For instance, research-minded Aerovox Corporation has come up with its Cerafil ceramic capacitor, one of the smallest capacitors ever designed.
Microwaves are extremely short radio waves ranging from 300 to 300,000 megacycles, with frequencies falling between the television and infrared spectrum.
The industry is just starting to pioneer the use of frequencies over 30,000 megacycles. Its application to defense and commercial communications are said to be only beginning, especially in long-range communications.
In these days, investors are in the habit of paying a high premium for companies involved in a merger, in the belief that a merger would strengthen the competitive position of the companies.
As Americans have become more affluent, pools, hunting and music have crept their way up the ladder of leisure activities Americans most desire and investors lust after. The swimming-pool industry is a relatively young industry expanding at a rapid rate.
Leisure is America’s fastest growing occupation. Fastest growing sports include golfing, hunting, archery, fishing, skiing and, of course, boating and bowling. Dollarwise, boating and bowling along with photography represent the top groups in leisure spending. Spending on boating alone ran to $2.5 billion in 1959.
The stock market may well have given a dramatic demonstration of its prophetic qualities when it abandoned the asset-value theory of establishing value and adopted the price-time-earnings multiple. It is expanding operations in such areas as office machines, computers, electronic equipment, etc. The equipment-leasing industry is believed to be still in its infancy. Take computer renting, for instance. A brand-new business is being built up around computer-service outfits, relatively new themselves.
This historical piece offers some great insight into the exciting field of inner space investing.
“Inner space” has great military value, considering the 400 submarines in the Russian fleet. Briefly, antisubmarine warfare (ASW) is the job of electronically detecting, tracking and classifying submarines. Tom G. Thompson of The Shield Survey (May 23, 1961) liked Edo as a specialist in sea science, which he believed should have “growth ahead in the Polaris submarine program, in undersea defense and in oceanographic research.” L. F. Rothschild & Co. termed Edo “riding pleasantly astride the submarine and ASW programs” in its study of the same month.
Ah, Hollywood…always the darling of the glamour stocks. Diversification helps Hollywood, primarily in such fields as oil, real estate, phonograph records, television and electronics. While movie makers are digging oil on their studio properties, makers of phonograph records (Decca Records, Inc.) are making movies (Universal Pictures).
To many, a growth stock simply means a name stock or a stock with a lot of demand. Whenever speculative fever runs high, investors tend to overreach for popular stocks. Whether it’s growth or nongrowth, the all-important price-earnings ratio should always be the predominant determinant of stock prices.
To begin, Darvas dealt only in stocks which were “in tune with the jet age,” growth stocks. If a stock should move up to a higher box and stay there, he would buy it. For instance, if a stock had fluctuated in a 55 to 60 range, that would be its first box. If the stock should demonstrate its ability of staying in that box, he would buy it, and place a stop-loss order to sell a few points below the buying price.
