Another for General Dynamics

As president and chairman of General Dynamics Corp., 61-year-old John Jay Hopkins wears many hats, and a feather in almost every one. When he took over eight years ago, the company--then known as Electric Boat--was coasting along with an annual sales volume of $26.9 million, mostly in submarines. Since then, he has picked up aircraftmakers Canadair Ltd. in Canada and giant Consolidated Vultee, changed the company name, expanded into guided missiles, atomic research and atomic submarines (the U.S.S. Nautilus), and boosted volume 25-fold (to $649 million last year). Last week Jay Hopkins put another feather in another hat. He announced that General Dynamics will diversify still more by taking over 61-year-old Stromberg-Carlson Co., which does a $65 million annual business in radio and TV sets, telephone switchboards and public-address systems. The merger will be accomplished, stockholders willing, by a share-for-share swap of stock.

Judging from the past action of General Dynamics stock, Stromberg-Carlson shareholders should be more than willing. A favorite among speculators. General Dynamics has for weeks been among the most actively traded stocks and has risen 63% (to 65 1/2 last week) in the past four months alone. In all, the stock has soared 130 points since Hopkins took control, taking splits into account. Yet its dividend is relatively low ($1.75 last year), and earnings, though rising, are hardly in line with the price of the stock. Last week Hopkins announced that General Dynamics earned $3,914,000, or 89-c- a share, in the first quarter, up from 74-c- a year ago.

The astonishing rise in General Dynamics stock is due to many factors, including the romance of atomic energy (the world's second atomic submarine, General Dynamics' Sea Wolf, is under construction by the company), the prospect of big, new orders for Convair's intercontinental ballistic missile, Atlas, and rumors of new mergers in the works. The most recent rumor, that General Dynamics would merge with destroyer-building Bath Iron Works, was denied by both companies. But Wall Streeters are sure that more, and bigger, mergers are on the way, since Hopkins is always looking for likely prospects.

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