Finding the Value of Out-of-Date Stocks
QUESTION: How can I find the value of some common stock I was given as a gift. The stock is for a bank that has since been sold twice to new owners. I’m stumped and have no idea where to turn.--J. D.
ANSWER: The task is not as hard as you might think. There are several companies specializing in tracing the origins and the ultimate disposition of out-of-date stock certificates. Many deal primarily with stock for old and long-defunct mining companies, but the research techniques can be applied to the stock of any company. A quick piece of advice: The fees charged by these companies vary. Evaluate the services and the fees carefully before choosing.
Among the companies offering this service are Prudential-American Securities, a Pasadena securities dealer. The company asks that you send a photocopy of the stock certificate and a check for $28 for each company that you want researched. The address is Prudential-American Securities Inc., Financial Information Center, 747 E. Green St., Suite 100, Pasadena, Calif. 91101.
Prudential-American will refund your money if it cannot find the company that originally issued the stock. If the stock is worthless as an investment, the company will provide a list of collectors who may be interested in the certificates as collectors’ items. If the certificates prove to be valuable, Prudential-American does not keep a percentage of their value.
Stock Search International in San Diego also offers a research service. The company charges $60 per company researched, and if the stock proves valuable, the company keeps 30% of the first $2,000 recovered and 20% of any amount above that. The company will research any stock issued anywhere in the world after 1850. If the researchers cannot uncover any information, the $60 fee is refunded. Stock Search can be reached at 16855 W. Bernardo Drive, Suite 207, San Diego, Calif. 92127.
R. M. Smythe & Co. in New York City is yet another stock research house. The fee is a flat $35 for each company researched. Send a photocopy of your certificate(s) along with a check and a self-addressed, stamped envelope to Smythe at 26 Broadway, New York, N.Y. 10004.
An additional note on mechanic’s liens: Last week’s column discussed the alternatives available to a homeowner who was hit with a mechanic’s lien on his house after his remodeling contractor--who had since filed for bankruptcy--failed to pay the lumber dealer who supplied the wood for the job.
The homeowner wanted to know if he would be required to pay the lumber dealer in order to get the lien removed, even though it was the contractor who had failed to pay the dealer. Our experts said that if the lien had been properly applied, the homeowner was probably liable for the charge despite the fact that he had already paid for the lumber once, when he paid the contractor. They advised the homeowner to seek restitution by taking his case to small claims court.
However, Glenn Turner, a construction attorney at the Los Angeles law firm of Wickwire, Gavin & Gibbs, suggests another alternative. Turner recommends that the homeowner seek reimbursement of his second lumber payment by making a claim against the $5,000 bond that contractors are required to purchase by the state Contractors Licensing Board in Sacramento. The claim against the bond must be made to the surety company issuing the bond within two years of the incident. To learn which surety company holds a contractor’s bond, contact the licensing board at P.O. Box 26000, Sacramento, Calif. 95826.
You must provide the licensing board with the contractor’s name, business name and license number. Of course, if you used an unlicensed contractor, you’re completely out of luck. For your information, the state requires homeowners to use a licensed contractor for home improvement projects costing $300 or more.
Carla Lazzareschi cannot answer mail individually but will respond in this column to financial questions of general interest. Please do not telephone. Write to Money Talk, Business Section, Los Angeles Times, Times Mirror Square, Los Angeles, Calif. 90053.
