Notions About Natus

There is nothing stock traders and tape watchers like better than a good rumor--the wilder the better. Last week Wall Street heard a pack of them, all concerning Natus Corp. (formerly National-U.S. Radiator Corp.). First reports had Natus merging with Glasspar, a major fiber-glass-boat maker. Another version was that NAFI, which spurted to new highs when it acquired Chris-Craft, the nation's leading motorboat builder (TIME, Feb. 15) was buying into Natus. Only one thing was certain: there was a rush to buy Natus.

In one day the stock, which traded only a total of 280,000 shares during all of last year, traded 140,000 shares and was the most active stock on the Exchange. It rose 5 1/8 points to a new high of 21 3/4 The next day telegrams signed Bertram Goldsmith were sent to brokers telling them to buy Natus stock in his name. Night letters were also received by ten major newspapers in six cities, saying that one James T. Ross, described as a vice president of a national bank, was buying Natus stock for his account. Natus opened at 22,quickly jumped to 25. So frenzied was the rush to climb aboard the rumor wagon that trading was halted for two hours to match buy and sell orders. Natus traded a phenomenal 379,600 shares, 11% of the exchange's volume for the day, closed at 22 1/4

Even a statement by Natus Corp. Chairman William T. Golden did little to silence the rumors. Golden said that since Natus sold its assets to the Crane Co. last February, it has $19 million to buy new companies, but no deals are on. Said Golden: "It is nonsense to pay more than the $17 per share book value for Natus stock, and it's sheer madness to buy first and look afterwards." Shields & Co., the Wall Street brokerage house that controls NAFI, denied that it was buying into Natus.

At week's end, with Natus down to 20 3/8, Paul Windels Jr., regional administrator for the Securities and Exchange Commission, announced that the trading was under investigation. He identified the men who, he charged, had tried to manipulate the stock by sending the telegrams as Bertram Goldsmith and J. T. Ross and their firm as Goldsmith & Ross. They have been charged, said Windels, under the antifraud provisions of the Securities and Exchange Act.

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