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G o o d M a n a g e m e n t a n d Stock Prices Sales vigor and increase in stack prices reflect public recognition of management excellence, AJM says
Positive Solutions to y o u r O d o r Problems S i n d a r is a pioneer in t h e d e v e l o p m e n t of industrial aromatics a n d t h e i r appli cation in a b r o a d r a n g e of p r o d u c t s . W e offer y o u t h e cooperation of o u r experienced technical staff a n d t h e facilities of o u r specialized research laboratories in helping y o u solve y o u r p r o d u c t o r processing odor problems, positively a n d economically. W e invite y o u r inquiries regarding: Industrial Aromatics · Γ odorants Germicides · Fungicides Preservatives · Anti-Skinning Agents for p a i n t s , textiles, adhesives, p a p e r , plastics, solvents, r u b b e r a n d other materials.
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^ Ë H S H a H H ^ I n i l u s t r i a l Aromatics and Chemicals 330 West 42nd Street. New York 36, Ν. Υ. Branche»: Philadelphia * Boston * Cincinnati Detroit · Chicago · Seattle · LOB Angeles · Toronto
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xT is AN AXIOM that the better the man-*· agement, the better the company. T h e American Institute of Management says that this implies that the better the management, and the more widely known this quality is, the more likely it is that stock in a company under its control is likely, over a period of time, to rise to heights of market value which stocks of less well managed companies cannot ordinarily hope to emulate. AIM says that stockholders are will ing to accept a lower rate of return on investment in a well managed company than from less stable and less well conducted corporations. Stockholders are prepared to pay a premium price for the equity stocks of well man aged companies because of the safety they offer. Despite all this, AIM in its publi cation The Corporate Director says that the mere fact that a company is excel lently managed, and has earned such a rating from AIM, does not neces sarily make it a well advised invest ment at all times. Condition of the industry, and particularly whether or not immediate prospects seem to lead toward an enlargement or diminution of production, with all their consequent effects upon costs and profit margins, must be weighed carefully. AIM says that the quality of a man agement can be gaged with such close accuracy that most of the risk factors in the purchase of securities can be minimized and, at times, almost wholly eliminated. It says that over a long term of years, if a management meets all tests for management excellence, it CHEMICAL
is virtually certain that n o loss will b e taken o n ara invesument i n such a com pany, boit o. "handsome profit realized in both dividend hncome a n d market value." As a n imdication of sales vigor of well managed companies, AIM quoted stock pricess for firms it called best managed i~n each of t h e Bureau of Census industry classifier : ons. These are companed in t h e tabL ibove. McKesson & Rob bins Sales Up 3°/o in Fiscal Period The latest " a n n o a l r e p o r t " of Mc Kesson & Robbins covers only nine months—last fall t h e company changed the endL of its fiscal year from June 3 0 to March 31. Comparisons for the period covered cantnot b e exact since there were* no audited figures for the nine-month* period ended March 3 1 , 1953. The figmres available from the com pany, Iiow^ever, indicate t h a t its n e t sales for tlie nine-raonth period were up from 9350.7 million i n 1953 to $361.3 million in 1954. N e t income before tax«es dropped a b o u t $41,000, however n e t after taxes increased from $5.16 million to $5-21 million. The iconmpany says its wholesale d r u g sales were? higher than t h e previous year ira eatch of tbie nine months ex cept January and February. Sales of wines a n d licruors were higher than the prescediing year and the gross profit ratio was ahout tlhe s a m e . Sales of chemicals were increased and profits were improved. AND
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