Tabell’s Market Letter – March 28, 1958

Tabell’s Market Letter – March 28, 1958

Tabell's Market Letter - March 28, 1958
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I' NEW YORK Walston &Co. —–lnc —– Membe,-s New Yo,-k Stock SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER March 28, 1958 INTERNATIONAL MINERALS & CHEMICAL Statistics Current Price Current Dividend 28 1.60 Excellent yield, defensive value and good growth prospects seem to be combined at this point in the common Current Yield 5. 70/0 stock of International Minerals & Chemic 1 Long Term Debt .Pfg,–,StoCk .1.QQ . Common Stock The stock cur rently returns 5.70/0 on a we 1 27,100,000 (1) covered 1. 60 annual dividend which has . 33Q shs been.majl;ttained,Kothe.pasj; sevenyears. 2,337,317 shs. In addition, the outlook for growth pros- Sales, 1956-1957 106,200,000 Earnings per Sh.1956-57 2.81 Sales 1957-58 (E) 110,000,000 Earnings per Sh.1957-58 (E) 2.90 pects, over both the nearer and longer terms, appearsfavorable. International Minerals is one of the leading producers of fertilizer and agricultural chemicals in the United Mkt. Range 1958-56 337/8 – 25 1/4 States, with an important stake in variou industrial chemicals and consumer prod- (1) Includes 19 million 3.650/0 Convertible Debentures, convertible into common at 55 to Dec. 31, 1962. ucts. The use of fertilizer and plant food should continue to grow over the longer term wlth increasing use being made of high-margin superphosphate fertilizers Note Fiscal year ends June 30th. of which International is an important are carried on through six (1) The phosphate minerals dWWion 'n rus-bearing rock in Tennessee and Florida. (2) The potash es me located at Carlsbad, New Mexico, chemical plants a 'gar Is and an important nine roduces Feldspar matenals used cerarrllcware andgIass, clay, which is used in foundry together with silica, barite and erlite. (4) The phospha e che i ' one of the highest tonnage producers of triple superphosphat i tlrVo'1 0 produces dicalcium phosphate, an important animal feed supp e t food division is one of the leading fertilizer manu- facturers in the cou y se' to farmers in thirty-two states. (6) The amino products division gives the com n entry in the consumer field, producing the highly popular bcent, the largest ing brand of monoscdium glutamate. This product is finding 'ncreasing home and commercial use as a seasoning. As can be gathered from the above, many of the company's operations are integrated. For example, a large part of phosphate rock production goes to the phosphate chemicals division, part of whose products in turn are used as ingredients by the fertilizer division. For the near term, th e earnings outlook appears to be favorable. Earn'ngs for the year ended June 30, 1957 increased to 2.81 vs. 2.14 in the prior year. This was due to the absence of start-up costs and increased shipments of superphosphate rom the new Bonnie, Florida, phosphate chemical plant. For 1957-58, earnings will robably equal this experience with the new plant enlarging the earnings base. 25 mUlio ill be spent on the Saskatchewan potash mine and this should be in operation by late 1959. Over the longer term sales should continue to grow at close to the past rate they more than doubled since 1949). Earnings in recent years ha've not kept pace with ales growth due largely to higher depreciation costs, but it is now believed that nonash charges are ample. From a technical point of view, the stock has formed a subtantial base in the 26-32 range. An upside breakout would indicate a possible 46. WTamb EDMUND W. TABELL WALSTON & CO. INC. ThiS market letter IS not. nnd under no circumstance'll IS to be cOnstrued as. an offer to s;cll 01 a soliCitation to buy Rny referred to herem The mformatlon ('nlnlfled herein IS not gullranteed as to aecuracy or and the thereof l'l not, un. undel flO Circumstances IS to be construed as, a. I cprescnta- (wn by 'Vn!ston & Co Inc All expressIOns of opmion are subJect W change without notll;c 'alston & Co, Jnc. and Officers, DlrectoJ'fl, Stockholders and thereof, !cll and may hine In Interest m the SCCUritles mentIOned herem Thl' market letter IS intended and presented merely as n gcnenll, IIIfl mn! commentary on dny to day market news nnd not nl a complete nnalysl.s Addlbonnl Ulfotmntlon With respe('l to sccurltleb referred to helCIn will he r111 m..,hc,d upon request. \\– 301

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