Insider stock trading – 3 per cent discount from its net asset value of $30.

91 at the end of the 1961 September quarter. Its asset value actually fails to reflect its true value because of the many substantial unrealized capital gains in its portfolio which will be distributed to stockholders in the form of dividends, capital gains and increased asset value over the years. Whenever speculative fever runs high, investors tend to forget such basic investment criteria as asset values, income and capital structure. Asset value is a company's book value as reflected in the balance sheet. Book value has become less of a factor in determining price as the market has attached more and more importance to such "intangibles" as patents, franchises, trade names, which are often omitted or carried at nominal amounts on the books. The disparity between book values and market values was, of course, particularly wide in the recent market, where earning, growth or prospects for growth far outweighed the book values of assets.

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