Wall Street: New-Issue Fever

In ordinary times, U.N. Alloy Steel Corp. would scarcely be a phenomenon to excite Wall Street. Even though the ten-year-old, Boston-based firm, which imports and distributes Japanese and Austrian specialty steel products, showed an 18% return on its invested capital, its profits last year reached only $315,529. It operates with seven warehouses and 30 salesmen. Yet last week, when Alloy Steel brought out its first public issue of common stock, eager buyers not only snapped up the entire 358,150-share offering at $10, but bid the price up to $19 a share in the first hour of trading.

Monarch Industries, a...

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