Viewing Month: December 1955

Tabell’s Market Letter – December 02, 1955

Tabell’s Market Letter – December 02, 1955

Tabell's Market Letter - December 02, 1955
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Walston &- Co. Inc MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND' COMMODlTY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,Id) OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER December 2J 1955 The market held in a narrow trading area during most of the week with only a few individual issues showing much price movement in either direction. Normal December action would indicate a continuation of ir- regularity and cross currents until the later part of the month. Tax loss selling has been of no great importance as yet, but could increase mode rately from her'e on. Any price declines should meet support in the 470- 465 area. normal technical action should call for rallying tenden- c ies later in the month, carrying over into January. — On such an advance, the Dow-Jones industrial average might reach the area. 1,s for distributional top 'I .belieye…… 'n6t -yet -be-'compl'eted.' Ir-it proceeds -a-long–'- the present course of slowly expanding tops and bottoms, it would be ex- pected that the present advancing phase would continue to a new high in the 510-520 zone. This should be the final phase of the advance and be followed by either a decline of at least intermediate term proportiDns or the alternative of a long consolidation period – similar to 1951-1953. Under the circumstances I believe it advisable to continue the policy ad- vocated in this letter of taking profits on strength, as individual issues reach their upside objectives. I advise long term capital appreciation accounts to build a 25 to 30 liquid reserve on strength into early January. Would not disturb long term investment accounts. Listed below are the issues remaining in my recommended list. All of these issues still indicate higher levels over the longer term, – despite the quite sizeable advances already witnessed. Continued reten- tion is advised. Robertshaw-Fulton, recommended at 21 and now selling at 28, is dropped from the list. Present Price Frice Recom. Yield Advice J..lleghany Corp. . AItegheny-Ludlum hllied Stores 9 – 0,. 61 3 3/4 – -473- 38- 5.0 Objective 12-17 . Sup .at 87 Ob-Ject. 85';Support at,-60-5S-, -Object. 98.Support at 55-53. American Chain 42 30-33 6.0 Hold for income.Sup.at Amer.Potash B 107 40 2.3 Object.12&-150.Support at 95-(\0. Assoc.Dry Goods 35 26 5.1 at 32-30 Barber Oil 56 59 5.3 Object.80-115.Support at -50-4c . Black & Decker Calgary & Edmonton 36 18 Ib – 2.8 Object.-68 .. Support at 32-30. 0.6 Buy for long term specuration Celanese 20 2.5 Object.34.Support at 20-18. Chain Belt 56 30-35 5.6 Object.78.Support at 50-.'t8. Cities Service 58 38 4.1 Object.81. Support at 52-5'0. Coca COra 125 122 4.0 Object.20&.Support at 125-lr5 Colgate-Palm. 57 60 4.4 Object.73-100.Support at 54-5 . Cornell Dubilier 35 21-22 6.8 Hold for income.Support at 3C Cutler Hammer 77 57' 4.7 Object.120-140.Support at 65-( Dow Chemical 56 38-40 1.8 Hold for growth.Support at-52 -'0. Dresser Ind. 51 33 5.0 Object.70-85.Support at Eagle Picher 37 22 4.9 Object .61-7-7 .Support at 36-33 Gen'l Rwy.Signal 66 59- 4.5 Object.140-150.Support at 60-) Hall Printing 23 1617 6.1 Hold for income.Support -at 20 Hewitt-Robins , Joy Mfg. 37 . 25-30 5.4 Object.85;-5upport at 35-33.– 23 -5.4 — Object.'37'75.Support Magma Copper 107 75 – Object.200.Support at 90. Monsanto Chem. 47 31 2.1 Hold for growth.Support at–43 O. Mont.Dakota Util. 27 26 3.7 Object.45-60.Support at 26-24 Pacific Petrol. 12 11- – Buy as long term speculaticm. Pan Amer.World h Raybestos-Man. 18 11-13 4.5 Object.27-45.Support at i,fi 42 6.1 Hold for i-ncome.Support at-53 1. Simmons Co. .'\8 36 6.3 Object.7196.Support at 4340 Sinclair Oil 57 46 – 5.4. Object.65-89.Support at-53-50 United Fruit 54 47-50 5.6 Object.86.Support at 53-52.- Auto 30 25 5.3 Hold for income. Support 28-27 Yale & Towne .merican Can 67 45 48 46 Object.1050Support at 60-58 . 4 ' nh ;,,.1-. hn,hC; .c,. ,,- I, -,0 market letter 19 not, and under no Til to be coratrued …. an offer to HI or contallJ.E'.1 here1n 1'1 not I(uaranteeri as to accuracy or and the turnlShmg by Wailtun & Co, Inc All nprellllonll of opinion are sub,)ed to ehan..e- Wlthout notll!e have an Intere-.t In the mentIoned Tba market letter III intended and news and nut a complete .nalnll. AdditIOnal InIormatlOD With raped. to any lecunbes lOiLcltation to buy any HCUrltIe! The mfornatwn- u .4er IS to beeonstlued .Q…'1, R representatIOn IrtI. . . Director or St.oC'kholder thereof, may .. Informal commentary on day to day market Mil g… Wnl13hed upon requeat.. WN 3111

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Tabell’s Market Letter – December 08, 1955

Tabell’s Market Letter – December 08, 1955

Tabell's Market Letter - December 08, 1955
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,… – — Walston &Co. —-Inc —- ,, …. EMBERS NEW YORI( STOCK EXCHANGE AND OTHER lEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw;',Id) OFFICES COAST TO COAST BY DIRECT PRIVATE WIRE SYSTEM –. EDMUND W. TABELL INSTITUTIONAL LETTER December 8, 1955 There has been little change in the technical pattern since ast letter. The rail average managed to reach new high territory at .68.79 on November 28th, as compared to the September high of 165.00,but .las since failed to follow through. The industrial average has so far unable to better the September and November highs of 489.94 and 90.35. Breadth-of-the-market action continues below average as far as iTolume, advances and declines, new highs and lows and other date is conerned. I still remain of the opinion that the. general market is slowly up a broad distributional top pattern that may still require some time to complete. Just what form the pattern will eventually take s, of course, not certain, but the evidence at hand appears to favor the of an expanding top and bottom reversal. Patterns of this oype usually take five steps to complete and, if my hypothesis is correct, fle are now in the fifth and final phase. This last phase may carry the Dow-Jones industrial average into new high ground before it is completed. This pattern has been in the process of formation since early Sumner. The first step was the advance to the July high of 471.73. The second step or phase was the decline to the August low of 445.67. The third step flas the advance to the September high of 489.94, which was above the July high. The fourth step was the October decline to 433.19 which, in turn, was below the August low and thus created the pattern of expanding highs nd lows. If the pattern follows the normal course, the fif.th and last should carryon to a new high before the top is reached. The advance could continue to the uptrend line connecting the July and September highs. This uptrend line now stands at 504, but will advance to 510 by the end of the year and to 520 by early February. Thus, the high will depend on when the next phase of the advance starts. Present indications favor a period of further consolidation for most of December with support at around 470 followed by an advancing phase into January or possibly early ,ebruary. After the high is reached, the pattern should follow a series of contracting highs and lows creating a diamond pattern followed by a downside breakout. Just how far the decline might carry is not ascertainable until the pattern is completed, but it would appear that the broad 400-350 area is the approximate downside possibility. This would envision a 20 30 decline from whatever top is reached. Another possible pattern is a broadening top without a penetration 00 new high territory by the industrial average, but the probabilities at he moment appear to favor the expanding top pattern. In any event, it nay take some further time to complete the formation. It seems difficult to enVision a decline of such proportions in view of the present favorable bUSiness picture and expanding earnings and dividends. However, stock prices depend on four factors. The first three are comparatively easy to evaluate. They are earnings,dividends and money rates. The fourth factor is the very intangible element of investor confidence. It is the thing that causes a stock to sell atuflelve times earnings at stage an at six times earnings at another. In many cases of individual issues,price to earnings ratios are relatively high. Listed below, the last column, are the prices at which five leading issues would sell at present earnings if the average 1953 PIE ratios prevailed at the moment. Stock Current Est.1955 Price Earnings Present 1953 PiE Ratio PiE Price at 1951 Ratio General Motors General Electric duPont Pacific 48 54 228 59 185 4.30 2.55 9.15 5.60 17.00 11.1 21.1 24.9 10.5 10.9 9.1 12.8 lY.9 5.2 7.2 39 33 182 29 123 These prices appear ridiculous at the present level of investor ponfidence and there is no evidence at hand to indicate a drastic change, piEpeut i t i s interesting to note the difference of r a t i o s in only twoletter !.!II riot. Ilnd untie!' no cJrI!umlltanceti III to be eon..tnIed as, aD oftII!!' to aT IOllcltaUon to btl,. any MC'Uritie5 referred to herem. The lnforrnallO,, not guaranteed lUI to ..eeurll.Cl' or cmnpletet\eg and the furnaslllnif is to Meo.nnrued &3, a representatum by Wahl ton II (;1), Je. AU teXprIUIOD!I or opInion are sub;eet. to change- WJt.hoa.t aotln. .lJlnCJo OT St.oe1cholder thereot. may have an Intere-t In the Heuntle'l mentioned 'h6etn. Tha multet. lrtter 11 iatornded and a commentary on day to day market news and not !\q a anal1'3ls. AddltJonal mtormaUOD 'llrith respect. to any ucuriues rWrt!l, 9Q;I request. WN 301

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Tabell’s Market Letter – December 09, 1955

Tabell’s Market Letter – December 09, 1955

Tabell's Market Letter - December 09, 1955
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, Walston &Co. Inc – – – – MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY e;.cHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,hedd) OFFICES COAST TO COAST CONNECTEr; BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER December 9, 1955 The Dow-Jones industrial average is again at the top of the broad fifty-point trading range in which it has held sjnce July. This week's high of 490.56 compares with a July high of 489.94 and a November high of 490.76. If our theory that the market is forming a broad top formation consisting of expanding highs and lows is the correct one, the present advance should reach new high territory somewhere between 505 and 520. The timing is not certain. There could be some preliminary consolidation followed by an advance later in the month or the market could attempt to push through immediately. -lJ'he present Oc-tuber low -of- 433–19 be the- c final phase of the broad distributional top which has taken six months to form. If normal technical procedure is followed, the advance could be led by speculative, low-priced issues on sharply increased volume. During this period, the better-grade issues might do little marketwise. I con- tinue to advocate a policy of building up liquid reserves of 25 or 30 during periods of market strength. ALLEGHENY LUDLUM STEEL, originally recommended by this letter in the low 30s, reached a new high of 70 5/8 this week. The 9-months earnings were 5.92 vs. 1.29 last year, re-enforcing our estimate that the company will be able to earn better than 8.00 for the year 1956. Depreciation for the first nine months amounted to almost 5.00 a share, indicating the huge cash flow being generated by this specialty steel producer. In the face of this strong earnings, the company increased the dividend for the second consecutive quarter from to Based on earnings potential, it would appear, however,that this 3.00 rate is still conservative and could be raised again. The stock continues to have an intermediate term objective of 85. JOY MJ,NUFACTURING also reached a new high this week at 71 1/4 after reporting earnings of 6.36 for the fiscal year ending. September 30th, bdteri,J)gQur Q.zs earningscompare YIitl4. 24 in 1954. -Especially worthy- of note is the- 2.15 earned in the final quarter, – indicating the possibility of 8.00 earnings for next year. This was fur- ther indicated by the statement of the President, Mr. J. D. L. Morrow, – that sales were expected to increase further in 1956. The long term ob- jective still remains 150 on the old stock and 75 on the new stock. COLGATE PALMOLIVE declared an extra dividend of 501 on the com- mon, bringing the total paid this year to 3.00. At the same time the Board of Directors announced its intention to maintain the 3.00 rate by raising the quarterly dividend to at the January meeting. The stock continues to have an intermediate term objective of 73 and a long term objective of 100. At its current price of 59, it yields more than 5. AMERICAN CAN, recommended only two weeks ago, has continued to attract a good deal of investor interest. One of the latest develop- ments on the part of this company's astute researchers is an aluminum coated can with welded instead of soldered side seams. This constitutes another step toward the eventual elimination in the use of tin in metal containers and the reduction of American Can's dependence on this metal. DRY GOODS recently reported earnings of 1.44 vs. 1.10 for the first-nine months of should report better than 3.50 vs. 3.15 with record Christmas sales. The stock was originally recommended by this letter at 26 and has a long term objective of 55-65, with support at 32-30. At its current price of 34, it yields 5.3. its CITIES dividend toSE6R0V1ICfEr,omwh5ic0h/, entered our list thus indicating at 38, recently raised a 2.40 annual rate and a 4 yield at its present price of 58. A 2 stock dividend was also de- clared. EDMUND \'1. TAB ELL WALSTON & CO., INC. – — .. . i..,al.. Ii. –

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Tabell’s Market Letter – December 16, 1955

Tabell’s Market Letter – December 16, 1955

Tabell's Market Letter - December 16, 1955
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– Walston &Co. —-Inc.—- II ' MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISw,t,ldl r OFFices COAST TO COAST CO'lNECTECi BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER , December 16, 1955 The usual year-end irregularity has taken over the market and continued ross-currents are to be expected until later in the month. Technical ction still indicates the possibility of another attempt to penetrate he 1955 high in the averages early in 1956 led by the more speculative ssues. Would continue to use strength to lighten holdings in longer-term apital appreciation accounts. There may be some excellent trading moves ver the next month. UTILITIES Statistics Market Dividend Yield 27 1.90 3,7 ong Term Debt 43,566,416 fd. Stock (100 Par) 150,000 shs ommon 2,000,221 shs et Per Share, 1955 et Per Share, 1954 1.45 E 1.46 perating Revenue, 1955 perating Revenue, 1954 'arket Range 1955-54 22,000,000 21,961',000 E 32t-19 Montana-Dakota Utilities was first recommended in this letter almost a year ago. At that time it was stated that the common stock represented a rare combination of the investment appeal provided by a fine growth utility plus a speculative land play by reason of the company's extensive leaseholdings in the oil-rich Williston Basin. Since that time, numerous developments have taken place which tern to improve both aspects of MontanaDakota's position. Despite this fact, the stock has done little marketwise and still appears att-' ractive for purchase close to current levels. To get a true picture of Montana-Dakota it is necessary to split it into its component parts. First and largest, of course, is the utility business, .seryingone ofthe ,rno st imp.o.I'.tant-.grnw.thareas,pf….thecoountry.. -,,;I'hisgen- erated 1.46 per share of earnings in 1954 and should earn about the same his year, although a' portion of the properties have been sold and a larger umber of shares are outstanding. Capitalizing these earnings at 15 times, a conservative p!e ratio compared with other growth utilities, gives a curent value of 22t for MDK's utility operation. A pie ratio of 17-18, not nduly optimistiC considering the long-term potential, gives a price equal vO the current market. Therefore, a price of nothing to 4 is being paid for the land play involved. This is provided by mineral rights which MDK holds under lease or perating agreement on 220,000 Williston Basin acres. Immediate interest ies in the 90,000 acres on the Cedar Creek Anticlir,e in Montana, which has een drilled extensively by Shell Oil. Since the original recommendation f Montana-Dakota in this letter, the crude-oil pipeline connecting eastern ontana to midwest refining centers has been completed, thus .providing a arket for the oil. Under leasing arrangements, Shell receives its orignal exploration and drilling costs before any accruals-to MDK. This '.(,1l1d be completed in two years, at which time ana–Dakota would be- in to participate in oil royalties. Earning from this source should pro- uce 40 to 50 per MDV 3hare initially followed by possible much higher evels as exploration progresses. A spin-off of the oil holdings to ontana-Dakota shareholders is, course, .always a possibility. As was stated above, Montana-Dakota's utility business possesses consic- rable investment attraction in its own right. The company serves almost he entire Williston Basin growth territory which has a sound agricultural ase and is expanding at a tremendous clip due to oil and industrial act- 'vities. MDK provides both gas and electrical service for these territories nd during the period 1950-54 was able to expand gas revenues almost 75 nd electric revenues almost 35, at the same time imprwiing the balance heet position. In summary, Montana-Dakota at present prices seems to combine true in- estment value, plus promising possibilities for additional capital gain hrough oil production. From a technical point of view,-the long-term ndication cont to be 45, followed by a ossible 60-65. There is eontamel herein 1'1 not by & Co Ine have an lntere-t In tM news and not a ehaanodre …, ',. letter w With rnped. to any .untles Stockholder may commentary on day to day market upon request. WN 30t —

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Tabell’s Market Letter – December 22, 1955

Tabell’s Market Letter – December 22, 1955

Tabell's Market Letter - December 22, 1955
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Walston &Co. Inc MEMBERS NEW YORK STOCK EXCHANGE ANO OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISw …I..dJ OFFICES COAST TO COAST CONNECTfC BY OIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER December 22, 1955 Traditional year-end strength has shown up right on schedule and it would appear that the trading shelf between 476.42 and 490.75 in which the Dow-Jones industrial average has held for twenty-seven trading days will be penetrated on the upside. Such an upside penetration would confirm the indication of 505-520 on the industrials mentioned in recent letters. I continue to believe that the advance will be spearheaded by the lower priced speculative issues on sharply increased volume. Such price action of the lower-priced issues would complete the cycle of the distributional top that, from a technical viewpoint, has been slowly building up since July. Timing is not exact, but the strength could carryover well into January. Would use – strength to' lighten l5-otn'trading a.nd longer term -c-apit-al appre- ciation accounts. PACIFIC PETROLEUMS,LTD. Statistics Current Market Current Dividend 12 1/2 None The recent technical action of some of the better Canadian oil producers indicates that these equities may be of interest to the investor who is Cemmon Stock 4,457, 563 shs. Net Fer Share,19S6 Net Fer Share,195S O.l'l E 0.06 D willing to hold for the long term and to assume a certain amount of specula- tive risk. Calgary & Edmonton, which entered our recommended list at 16, Mkt. Range -1955-51 13 5/8 Fiscal Year ends Feb.28. moved to a high of this week. Our other recommended Canadian oil, Pacifi Petroleums, also shows good promise based on its participation in plans to import Canadian natural gas to serve the fast-growing Pacific northwest area This gas will be imported under a three-way agreement between Pacific Northwest Pipeline, El Paso Natural Gas and a company called West Coast Transmission which will build a pipeline to the Canadian border. There it will connect with Pacific Northwest Pipeline which the gas—Lnto E1- F-asols-system.-The gas- to a large part of the Peace River area of Canada. Of the major producers in this area we feel that Pacific Fetroleums currently represents the best long term participation in Peace River production. Our feeling is based on the fact that Pacific Petroleums provides the broadest coverage of the field. It is (1) The owner of substantial natural gas reserves in its own right; (2) a holder of approximately 50 of the stock of another major natural gas producer; (3) a major holder in the high- ly leveraged pipeline which will carry natural gas from the Peace River field to the Canadian border, and (4) a holder of promising oil and producing oil wells in addition to its gas holdings in the Peace River area. Pacific Petroleums' gas reserves alone would justify its current market price. It tural gas is estimated to reserves which, have approximately one valued at the standard tfrigilulrieonofcu51bicpefreethtouosfannda- cubic feet, is worth 50 million, or more than the current value of Pacific Petroleums' entire common issue. The company is also the holder of 1,433,050 shares or 52 of the stock of Peace River Natural Gas which is estimated to have a total of trillion cubic feet of proven reserves. Pacific will offer participation in transportation of River gas as well as production since it will own a substantial interest in West Coast Transmission. Since this company will have million of senior capital, its leverage possibilities are tremendous-and could result In substal),tial additions to Pacific Petroleums' earnings. In addition to the above, further potential is provided by varying in- terests held by the company in seme 75 oil wells,entirely apart from the gas development. In summary, it can be seen that Pacific Petroleums is worth close to its market value on its own natural gas reserves alone and that nothing is being paid for the half interest in Peace River Natural Gas, the interest in West Coast Transmission or the possibilities inherent in oil From the technical point of view, the stock appears to be building a strong base with a present upside potential of 40. This pattern could broadeh EDMUND W.TABELL market letter 13 not, and under no IS to c.eon\alneol heulf'l UI not Sl'Wlranteed u to a.eeuracy or b,. Walton 10 , lne. All UpreMIOnl of opinIOn arn1l ,ed.kteosa WiilJMf6rIedas an or .. tltUtSJItJiiivthe't nolftS'eh'Ii'nto tNhtft!'eof ill not. and under no &; cU'cuml'ltanCf!! 1lI tn to herem becon9trued TahreepInrtels')ernmtaattliOolnt WallIton C(). Inc or any Officer Dlreetor or St.oekholtier thereof, may tended aDd' proe'flUd me'l'ely as gene1'al, eommentary on da,. to day market have aannd nut aInctohmeplleeeteunantlael!pmlleI ntAIOddnleudohnearleIInnt.orma'IStlOmlIaor..-tth l'ClIIpeet ……n,. .unti ref erred. to herein WlII be furnished ulXln request. WN 301

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Tabell’s Market Letter – December 29, 1955

Tabell’s Market Letter – December 29, 1955

Tabell's Market Letter - December 29, 1955
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/7 i r. Walston &Co. —-Inc.—- — —. MEMBERS NEW YORK STOCK EXCHANGE … NO OTHER LEADING STOCI( AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO Sw,,,.d..dJ OFFICES COAST TO COAST BY OIRECT PRIVATE WIRE SYSTEIo4 TAB ELL'S MARKET LEnER December 29,1955 It is a bit disappointing that the traditional year-end rally did not start on schedule as expected, but the Dow-Jones industrials still remain in the 490-477 trading shelf which it has occupied for the thirty-two tra- ding days since November 11th. A breakout of this trading range could have considerable short term significance. An upside breakout would indicate the probability of an advance to the 510-520 level on heavier volume with public participation in the more speculative issues. If this happens, would use strength to lighten commitments in overpriced and marginal situations. A downSide penetration of the recent 490-477 trading shelf would indicate a rheetludrnsintoce'thJeunleo.wer- -p-ortion of the 490-433 range in -w-h-ich the m-arket has The stockholder in JOY !'flANUFACTURING COMP;,NY who read his company's I' recent annual report, found some basis for solid optimism. The report explained in part why the stock, which was recommended at 23 (adj.), almost I exactly one year ago, advanced to a new high of 38 this week. The re- port showed that Joy had increased earnings from 2.12 to 3.18 per share ., for the fiscal year ended September 30,1955. This figure excludes 31t per share equity in undistributed earnings of foreign subsidiaries. In addition, the company earned a whopping 1.08 in the last quarter, giving rise to a possible projection of 4.00-4.50 per share earnings for 1956. On this baSiS, the stock would still appear to be cheap. The section of the report entitled, Joy's Growth Opportunities indicated management's faith in an even brighter future for the company. The objectives of management were outlined as follows (1) The constant, steady, pursuit of a well planned program for the development of new products by our own engineers and scientists that will create entirely new markets for the Company or will enlarge the markets for products presently manufactured. (2) The continued search for products; or for companies whose acqui- sition would enlarge profitably the Company's activities. (3) The study o-f-the growth trends that may-obe expected from'world- . ..i wide engineering and scientific discoveries and developments so as to se- lect the most promising future markets for effective penetration and ex- ploitation. ( 4) T'he building of a superior management organization in all branch- es that can assume and discharge successfully the additional responsibili- ties that arise from the pursuit of the program set forth above. The company's recent growth record indicates that it can expect conti- nued success in the achievement of the above objectives. The report goes on to delineate the industries served by Joy and the increases in future pro- duction which can be expected by these industries. Important among these is the coal mining industry which the Joy management believes to be embarking on a new growth cycle. Coal production is estimated at 580ni'il. tons in 1960 and 780 mil. tons in 1970 vs. 392 mil. tons in 1954. Joy manufactures a com- prehensive line of labor-saving devices for the coal mining industry and is the principal producer of such equipment. Joy's market research estimates growth of demand between 25 and 50 during the next 15 years for most metals. The company manufactures drill jibs and drill mobiles used in rock drilling, shuttle cars and blast hole drills, in addition to other products serving the mining industry. Recent acquisition of the Bassh-Ross Tool Company places Joy in an excellent posi- tion to-benefit from growth in demand for petroleum and natural Ex- pansion of petroleum requirements for 1970 is estimated at 120 of 1950 pro- duction. Joy is also a leader in the production of road building eqUipment, heavy machinery and various aircraft'and naval parts.Improvement of sales is looked for in all of these categories. Expansion is foreseen for all of these industries. On the basiS of projected earnings for 1956,plus the stated intentions and proven record of management in successfully diversifying the company, Joy, despite its recent dynamic price rise, would still appear attractive for further long term holding. The long term projection on my technical work is 75.

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