Viewing Month: February 1961

Tabell’s Market Letter – February 03, 1961

Tabell’s Market Letter – February 03, 1961

Tabell's Market Letter - February 03, 1961
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Walston &Co. Inc – – – – – FILE NEW YORK Members New Yo,'k Stock Exchange SAN FRANCISCO LOS ANGELES PHILADELPHIA CHlCAGO OffiCES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER February 3, 1961 The market 011tinllPrl Us upwlrd surge and, at the week's intra-day high of 657.2 in the Dow-Jones Industrials, was in the upper range of the 640 -660 supply area' where normal technical action would call for a consolidating phase before a testing of the August 1959-January 1960 double top at 685-688 is attempted. Despite the sharp rise in the last three months, there are no signs of an important top, except that the averages are meeting supply in this area. The Industrial average has held for five trading sessions in the 645-655 range and the inability of the market on Friday to move ahead despite the heavy volume of 5,210,000 sharoes is an indication that there is ,considerable 'stock for sal at this level. Whether the market can push through immediately without a technical corre t ion is open to question. However, longer-term breadth-of-the-market action continues th improvement which started in October and indicates that the advance from the October 1960 low of 565 still has quite a bit further to go from both a time and price point of view. In an advancing phase, a correction of about one-third of the previous advance is a normal technical sequence in order to correct a temporarily overbought pattern. A one-third correction of a 95-point advance from 565 to 660 would call for a dip to the 630-625 area. However, such a general market correction might have very little price effect on individual issues that are in an uptrend and attempting to take advantage of a technical dip of this nature might result only in a loss of position. It would seem wiser to concentrate on the action of individual issues rather than the averages at this stage of the market pattern, and to use current strength to lighten commitments in issues with unfavorable longer-term patterns and add to holdings in issues with a favorable outlook in the event of a market correction. The longer-term Industrial average indicates a probable penetration of the 685-688 high some 'm r this year. The present upside potential, from a technical t ' riting to be some- where level, with occasional tec . al cor ons along the line be- '2-' -, .– -, –fore thlS obJechve lS achleved. 'i-ei'- Most of – -' . ar c -, — owing above average action. The complete list was last publishe em 30th letter. Incidentally, Daystrom (30 3/8) was inadvertently that time, although it was included in the compilation w 0 e s m date with ratings, yields and comments,and available at your a t n rom has been showing below-average action re- cently and is near tr of 27 1/2. Conversion of the debentures and the ac- quisition of a new co pan s diluted per share earnings, but the long-term outlook is favorable and, techni , the stock appears to be building a base pattern that may take further time to com ete. Daystrom is primarily an electronic and electrical and atomic instrument producer with non-defense business expanding. As mentioned in last week's letter, the temporary dip in the aircrafts offered a buying opportunity and the issues mentioned recovered sharply with Boeing (40 1/4) , Rohr (21 1/4) and Thompson-Ramo (77 7/8) reaching new highs for the move. The only exception was Martin Co. (old-59 1/4,new when-issued 29 3/4) which sold down on the reasoning that the successful firing of the Minute Man, a solid fuel missile, would out- date the liquid fuel Titan. Technically, the stock has a possible 29-28 downside object- ive on the new stock and 58-56 on the old. There is good support at this level. Other issues in the group have a clearer pattern at the mOIIl,ent. One way of participatingin the missile and aircraft, and to a lesser eXtent, in the airlines,' is through National Aviation (28 1/4) , a closed-end investment trust listed on the New York Stock Exchange. Other issues in the recommended list that have not yet participated in the rise to any great extent include American Broadcasting (46 1/2), Caterpillar Tractor (32 3/4), Columbia Broadcasting (37 1/2), El Paso Natural Gas (28), Ford Motor (68 1/2), General Precision Equipment (61 7/8), Great Western Sugar (32 5/8), Holly Su ar (30 5/8), International Tel & Tel (48), Lone Star Gas (45 ,1/2), Panhandle Eastern Pi e Line (501/2), and United Artists (351/4). Dow-Jones Ind. 652.97 uow-Jones Rails 143.10 EDMUND W. TABELL WALSTON & CO.INC. This nlIorket letter Is not, and under no circumstances IS to be construed as, an offer to sell or a soliCItation to buy any secUritIes referred to herein The information contlllned herem is not guarant!ed 8.11 to Ilccurllcy or completeness and the furnIShmg thereof IS not, and under no circumstances IS to be construed SS, t by Walston & Co Inc thC!reof purchase All expreSSIOns sell and may of opmion are subJect to change WIthout notice Walston & an mterest In the secUrIties mentioned herein This market Co., Inc, and Officers. Directors, toe letter IS intended and presented merely as 0 II- era ge1 fntnbl , Joimformnl on dny to day nmrkd news not as n complete annlysis. AddItional informatIon '\I,lth respect to any secut'lties referred to herein ''-

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Tabell’s Market Letter – February 10, 1961

Tabell’s Market Letter – February 10, 1961

Tabell's Market Letter - February 10, 1961
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Walston &Co. Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHJCAGO OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER February 10, 1961 The Dow-Jones average has held, for ten trading days, in the 640-660 range originally envisioned by this letter as an area of heavy overhead supply. The . question is now whether a consolidation will occur around these levels, or a will take place. In any case, the latter should not be much more severe than a one-thlrd retracement of the advance back to about the 630-620 area. As always, it will continue to be more important to concentrate on individual stocks which appear attractive, such as the one discussed below. –' U .- S-.' VI'AMIN & Current Price Current Dividend Current Yield 37 .60 1. 6/0 Long Term Debt Common Stock None 1,909,110 shs. Sales, 1960-E 15,000,000 Earned per Sh. -1960-E 1.10 Mkt.Range 1961-1959 52 – 24 From a technical point of view, U. S. Vitamin & Pharmaceutical Corporation has a very strong pattern. It reached a high of 52 in 1959 and reacted to an early 1960 low of 24. Since that time the stock has been bu1lding up a broad accumulation area with most of the work in the 28-36 area. The recent upside breakout indicates a rise to much higher levels over the longer term. U. S. Vitamin is a small company with only 15 million of sales in 1960. This smallness has, in addition to obvious disadvantages, a number of significant advantages for the company and for the investor interested in purchasing its stock for capital gains. The most important of these advantages is that development of the company's research staff which is able to capture an im t rlet, can, due to small total volume, have a tremendously importane;etoe n Such a develop. ment may well be DBI, an orally-administered dru a in e ent of diabetes. The market for such a drug is St ica veys suggest that approxi- ma tely-3-million-persbifs in the Uhlt-euStit h – . — dia – 8 ;!naOllar terms, tne market for oral diabetes drugs is estimated l'Q\We in ss of 30 m1llion. To date, OBI has captured only a small s e t 1 to the fact that it was introduced drug at the end of 19 0 t 'to be running at an annual rate of only 2 million, twice the 1959 fi e icant portion of the total market. Meanwhile, tars de usage of sulfa-type drugs have uncovered a number of problems which were , at first, apparent. Moreover, the main former objection to DBI, occasional rence of annoying side effects such as nausea, has now been eliminated through the use of a controlled-release tablet which releases the drug into the bloodstream in small amounts throughout the day. Thus, it appears logical to expect that OBI will gain sharply in market acceptance at the expense of former types of ,treat- ment. It is worth repeating at this point that this is a 30 million-plus market and that U.S. Vitamin's total sales in 1960 were 15 million. It is also worth noting that Vitamin's present detail staff is set up to handle a much greater sales volume so that profits on the additional increment, should be even greater than the company's overall 24.3/0 net before taxes in 1959. The other specialty drugs, which now comprise the greatest portion of U. S. Vitamin's sales, also have.interesting potentialS. These include Arlidin, used'to-in.c—- crease blood flow to the various parts of the body, C. V. P. , prescribed in various applications for capillary bleeding, and Bacid, used to counteract undesirable side effects of antibiotics. On current earnings and dividends (1.10 per share earned in 1960 current dividend rate; 60c;) U. S. Vitamin is not cheap at its price around 38. However, when the growth potential inherent in DBI and other products is taken into account, it can easily be seen that the potential earnings increase over a period of time is huge. The stock, therefore, has considerable appeal at present levels and is being added to our recom- mended list. ANTHONY W.TABELL Dow-Jones Industrials 639.67 WALSTON & CO.INC. T aimdDn.'lVIUS m A , under no to be construed tlS, an offer to sell or n to buy any secUrIties referred to The informatian l t d the furmshmg' thereof IS not and under no circumstances 19 to be construu as, a represen – contained herem IS not guaranteed as to or co!Jlp e eness an chan e Without nobce Walston & Co Inc and Officers, Directors, Stockholders and t10n by Walston & Co. Inc All expres;llons of OpInion aI'' subject rentlOned herem ThIS market IS and presented merely as n genernl. mformal thereof, purchase. comment.u.ry on day stoeldl an ay d maky mnr c ha tn ve n ews na.nIn. ,tneoret sat In sa the com analYSIS ….. AdditIOnal With respect to any sccurltles referred to heT(!in wIll be \VN JOt . —— — ——– —– – —– – – – – —–

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Tabell’s Market Letter – February 17, 1961

Tabell’s Market Letter – February 17, 1961

Tabell's Market Letter - February 17, 1961 page 1
Tabell's Market Letter - February 17, 1961 page 2
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\I FIlE i I- Febr;uary 17, 1961 RECOMMENDED LIST OF STOCKS SELLING ABOVE 20.00 A SHARE Edmund W. Tabell Walston & Co. Inc. Close 2/16/61 American Broad. Para. 483/4 American Chicle 80 1/2 Amer.Metal Climax 27 1/4 Amer.Optical 57 1/4 Amer. Potash &Che m.51 3/4 Amer.Smelt. & Ref. 58 Amer. Stores 84 American Viscose 467/8 Anderson Clayton 44 1/2 Arkansas Louis.Gas 393/4 Audio Devices 263/4 Barber Oil 67 1/2 Bestwall Gypsum 463/4 Boeing Airplane 41 1/4 CIT Financial 77 3/8 Carnation Co. 80 Caterpillar Tractor 36 1/4 Central & So. West 4,1 1/4 Chicago Pneumatic Tool 343/8 City Products 48 1/4 Cluett Peabody 73 Columbia Pictures 24 3/8 Columbian Carbon 56 ConsoCMlning Consolo Natural Gas 56 Crown Cork & Seal 57 3/8 Daystrom 31 3/4 Deere & Co 573/4 Diamond National 43 3/4 Dome Mines 223/8 Eastern Gas & Fuel 343/4 Electric Storage Battery 59 3/4 El Paso Natural Gas 283/8 Ex-Cell-O 377/8 Fansteel Metallurgical 54 First Charter Financial 345/8 Food Machine Chern. 63 7/8 Ford Motor 683/4 Freeport Sulphur 30 1/2 Garrett Corp. 51 1/4 General Amer. Transp. 85 General Mills 35 1/4 General Precision Equip. 68 Georgia Pac. Plywood 58 3/4 Gerber Products 84 3/4 Granite City Steel 40 Great Northern Paper 57 Great Vvestern Financial 34 7/8 Great Western Sugar 34 1/4 Haveg Industries 99 1/4 Hercules Powder 877/8 Hertz Corp. Heyden Newport 673/8 255/8 Holly Sugar 30 3/4 Original Recom. Price 453/4 76 245/8 54-50 42 7/8 551/8 77 3/4 523/8 363/4 353/4 263/8 70 41 363/4 67 66 1/4 30 1/2 40 1/4 283/8 44 3/4 56 3/4 21 7/8 52 1/2 51 1/8 43 1/8 45 -43 523/4 35 1/2 25 1/8 293/4 54 28 353/4 45-44 29 1/8 60 3/4 69 1/2 24 7/8 51 7/8 793/4 32 3/8 56 49 56 37 1/2 57 31 1/4 29 86 5/8 80 1/4 65 1/8 237/8 30 1/2 S&P Rating Comment B ;Buy-Hold A Hold for 95-100 B Buy-Hold B Buy-Hold B Hold B Buy-Hold A Hold B Buy-Hold B Buy-Hold A- Buy-Hold B- Buy-Hold BBuy-Hold Buy-Hold Hold Buy-Hold A Buy-Hold A Hold for 45 A Hold for 54 B Buy-Hold BBuy-Hold B Hold B ,Buy-Hold BBuy-Hold —- .. A Buy-Hold B- Buy-Hold B IHoid B for 80-85 B fBUy-Hold B IHold B Buy-Hold B Hold B Buy-Hold A Hold for 44-48 B Hold for 60 Buy-Hold A Hold B Buy-Hold A Buy-Hold A- Buy-Hold A Buy-Hold A Buy-Hold B Hold B Hold A Hold for 90 B Buy-Hold B Buy-Hold Buy-Hold B Buy-Hold B Hold A Hold for 115-125 A Buy-Hold B IBuy-Hold B ' Buy-Hold ,, I .- Ideal Cement Insurance Co.,N.A. Close 2/16/61 29 7/8 961/4 Intern'l Min.& Chern. 42 3/4 Intern'l Tel & Tel Jewel Tea 51 3/4 505/8 Johns Manville Johnson & Johnson 60 95 1/2 Kennecott Copper Kern County Land Lone , 84 1/4 595/8 – 47 Louisiana Land Explor. 68 Magnavox Co 60 1/2 Marquette Cement Martin Co McCall Corp 60 343/8 541/4 McIntyre Porcupine Mesabi Iron 277/8 865/8 Microwave Associates Miss. River Fuel National Aviation Newmont Mining North Amer.Aviation Northern Natural Gas Northern Pacific R.R. 50 1/8 39 28 1/8 71 51 1/8 34 1/2 443/4 Northrop Corp. 455/8 Oklahoma Gas & Elec. 37 Pacific Gas & Elec. 795/8 Panhandle Eastern Pipe 50 3/8 —- —-42- Phillips Petroleum Pillsbury Mills Pitney Bowes 58 1/4 50 1/4 443/4 Pittsburgh Plate Glass Richfield Oil Royal Dutch 78 96 38 3/8 Seaboard Airline R.R. 36 1/2 Seaboard Finance Singer Manufacturing Southern Calif. Edison Southern Natural Gas Standard Oil of Kentucky 25 1/8 72 7/8 72 7/8 44 74 Sterling Drug Swift & Co Tennessee Corp. Texas Gulf Sulphur Thompson-Ramo Wool. Twentieth Century-Fox United Air Lines United Artists United Biscuit United Shoe Machinery U.S.Borax U.S.FoilB U.S. Vitamin Universal Oil Products Varian Associates 'Warner Bros. Pictures' Wilson & Co. Winn-Dixie Stores Woolworth,F.W. Wrigley, Vim. -Jr. Zenith Radio 76 1/4 48 1/4 55 5/8 22 3/8 817/8 47.3/8 43 1/4 357/8 42 1/2 64 1/2 46 357/8 395/8 38 1/8 57 3/4 60 483/4 27 1/8 731/4 109 1/2 107 1/2 -2- Original Recom. Price 26 7/8 78 32 48 50 1/4 60 743/4 74 1/8 53 850 1/2 . 19 53 1/4 26 297/8 273/4 86 1/2 33 1/8 34 1/8 273/4 62 1/2 41 1/2 30 3/8 42 1/8 33-31 35 1/4 753/4 47 7/8 537/8 44 5/8 41 693/4 84 42 32 3/8 22 1/4 48 66 38 3/8 70 1/2 693/4 44 1/2 50 19 1/8 573/4 3/4 30 3/4 32 1/2 37 3/4 59 373/4 501/4 37 31 3/8 40 3/4 52 7/8 15 1/4 22 1/2 69 99 99 1/4 S&P Rating A- B Comment Buy-Hold Hold Buy-Hold B Buy-Hold IA ! Buy-Hold A Buy-Hold A Buy-Hold B 1 Buy-Hold A . Hold for 80-85 – . Buy-Hold A 1Hold B Hold for 75 A Buy-Hold Hold B Hold B Buy-Hold i Buy-Hold I Hold A Hold for 50 Buy-Hold A- Buy-Hold Hold A- Buy-Hold B Buy-Hold 1Hold for 52-55 A- iHold for 54 A 1Hold for 90-100 A-.. I rBuyHold A Buy-Hold A Hold ,A Buy-Hold A Hold for 84-94 A iHold for 120-130 A Hold for 44 B Buy-Hold IHold B Hold A IHOld for 80 -90 A- Buy-Hold A Buy-Hold A !BUY-HOld B Buy-Hold A Buy-Hold B Buy-Hold A Buy-Hold B iHold B IHOld for B Buy-Hold B Hold for 45 B Buy-Hold B ,HOld B Hold A !Buy-Hold B Hold for 45 Buy-Hold B Hold B Hold A Hold for 32-34 A- iBuy-Hold B Buy-Hold A Buy-Hold !

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Tabell’s Market Letter – February 17, 1961

Tabell’s Market Letter – February 17, 1961

Tabell's Market Letter - February 17, 1961
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2 ,/Uil- -' FILE COpy Walston &- Co. ———Inc——— Mem bers N e10 York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER February 17,1961 The stock market, as measured by the various averages, continues to back and fill in a wide trading area. For the past three weeks, the Dow-Jones Industrials have ranged between an intra-day high of 657.20 and a low of 632.81. In the meanwhile, many individual issues have continued to move ahead. Even on Monday when the Industrial aver age reached its three-week low there were 56 new highs and only 4 new lows. On Wednes day, 114 issues reached new highs as against 1 low, and on Thursday, the ratio was 123 to 1. It was anticipated that the Industrials would meet supply in the 660-640 area, and this has occurred. There are two ways of interpreting the action of the past three weeks. One interpretation is that the market is meeting a terrific supply of stock and must have a siz able technical correction. The other is that the market is absorbing a heavy supply of sto without reacting and, when the supply is absorbed, the market will move ahead and cross the 1959-1960 high of 688.21. A glance at the various technical indicators reveals a continuing constructive pat- tern. Our breadth-of-the-market has continued to advance and moving totals of upside and downside volume, odd lot indices, ratio of low-priced stocks to high-priced issues, and other technical graphs, remain favorable. It has been a characteristic of modern markets that once an advance of import- ance has started it continues without a worthwhile correction until the top has almost bee reached. In the October, 1953 to April, 1956 advance, the Industrial average moved from 254.36 to 524.37. The first decline of importance was in September of 1955 when the ave – age declined from 489.94 to 433.19 and reached its high six months later at only 7 abov the September 1955 high. In the October, 1957 to August 1959 advance from 416.15 to 688.21,the market suffered its first decline of of 1959 when it dropped from 683.90 to 613.30. The ultimate high was r a h fi\.onths later in January, 1960 at just a shade above the August There is no certainty, of course, that the p e t mar ove will duplicate – -either the appreciation-or the timing of the – s of-the past-ten years.As far as the percentage appreciation 'is emely doubtful that the present market will duplicate the over 100 1 3- , or the 64 rise of 1957-1959. A rise to 750 from the would be about 300/0. The timing might follow more closely, wfi 0r work, it would appear that the present a i ut equivalent of the April-May 1958 stage of the October, 1957 to ' This, of cou e, 0 ot preclude a decline at this stage greater than already witnessed. A decline e 630-620 area would come within the bonds of a normal one- third technical corr ctlon of the advance from the October lows. Our recommended list is probably showing above average action. Some of the issues have risen quite sharply in the past two or three months. American Potash has advanced from a recommended level of 42 7/8 to 51 3/4. Carn ation Co. from 66 1/4 to 80. Diamond National from 35 3/4 to 43 3/4, Gerber Products from 56 to 84 3/4,Insur- ance Co.of No.Amer. from 78 to 96 1/4, Johnson & Johnson from 74 3/4 to 95,Louisiana Land from 50 1/2 to 68, McCall Corp. from 297/8 to 54 1/4,Microwave from 331/8 to 50 1/8, Thompson-Ramo from 573/4 to 817/8, 20th Century-Fox from '363/4 to 473/4 and Varian Associates from 40 3/4 to 57 3/4. However, there are only two changes sug- gested at this time. We are dropping Coca Cola (91 5/8) and Westinghouse Elec. (45) from thelist. Both were recommended in May 1959 when the Industrial average was just about at the same level as it is today. Coca Cola was recommended at 47 on an ad- justed split basis. Friday's high was 95 1/2. The stock has reached its first upside po- tential and probably will need a rather lengthy consolidation before a new move. West- inghouse Electric was originally recommended at 44 on an adjusted split basis. It sub- sequently reached a high of 65 in 1960. Recent news developments brought the stock back to 40 3/4. While it probably has reached its low for the move, a long time may be needed to form a new base. There is heavy overhead supply and other issues in our recommended list may offer better appreciation opportunities. A new compilation of the recommen- ded list is available for perusal at the desk of your Walston customers' representative. Dow-Jones Ind. – 651.67 Dow-JOpeS Bails – 144 32 EDMUND W. TABELL WALSTON & CO. INC. ThiS market letter is not, and under no circumstances IS to be eonstrued as, nn offer to ell or a BohcltatlOn to buy any secUrlttes referred to herem The mformatIon contained herem is not guaranteed as to accuracy or compteteneS8 Ilnd the furrnshlng thereof lS not, and under no Cllcumstnnces IS to be construed as, Illeplesenta- Hon by alston & Co, Inc All expressIOns of oplmon are subJect to change v.lthout notice Walston & Co, Inc, nnd Officers, Directors, Stockholders and Employees thelcof, purchase, lIell and may have an mterest in the secUrttws mentIOned herem ThiS mllrket letter IS mtended and presented merely ns a general. Informal commentary on day to day market news and not as a complete analysIS AddItIonal mformation With respect to nny SecUrltles rcferrC'd to herem Will be ' r r \VN 301

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Tabell’s Market Letter – February 24, 1961

Tabell’s Market Letter – February 24, 1961

Tabell's Market Letter - February 24, 1961
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Walston &Co. tnc. Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFices COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER February 24, 1961 At Friday's high of 659.56, the Dow-Jones Industrials had exceeded their Februar 3rd high of 657.20, although the important June high of 663.64 remains to be breached. As expected, a good deal of supply has continued to be encountered in the 640 -660 range, as evidenced by the heavy volume of trading coupled with the sluggish advance in the averages. It is interesting to note, however, that, as this churning goes on, breadth 0 the market continues to improve and our breadth index is now at its highest level since th Fall of 1959. For this reason, a constructive attitude toward the market, together with emphasis on individual issues appears to be – — — —-,.- – ' The progress made by the meat packing industry over the past decade constitutes a dramatic example of a successful comeback by a major industry. At the beginning of the 1950'!,the industry was plagued by inefficient and antiquated plants, locations which emphaSized closeness to market rather than to sour ce of supply despite the fact that transportation of the end product was cheaper than transportation of live cattle, and a recurrent inventory problem which made it vulnerable to wide changes in raw material prices. As is usually the case in depressed industries, these difficulties were most sorely felt by the marginal producers. SWIFT & CO., the largest factor in the industry, was the only company relatively immune to drastic earnings fluctuations and, despite the fact that profits displayed no strong growth trend, the stock attained an invest ment status considerably greater than that of the other companies in the industry. Since that time, enormous strJdes have been made. As could be expected, the most drastic improvement took place in what were then Wilson & Co. followed an aggressive program of reducing slaughterhou f coo sC8.nd closing down ob solete divisions. Thus, although 1959 sales were 0 0 eo 9 levels,net income had almost doubled. Armour & Co. also closed a 1 r s obsolete slaughter- housesand,,,in,additiOn,-bUiH,up,an,excenenemo i per to account for some 600/0 of earnings. Even as 19 wever, the drastically improve profitability picture in both of these Ii been taken into account by the mar keto Wilson sold as low as this letter at a price of 5 1/ for purchase at that time by s \9ii'i low was 9 3/8. At their recent highs, Yiilson had reached / d r 0 6.1/2. The impro een far less marked. Indeed, profit margins in the past two years have i d to rove to any great extent from their average levels of the early 1950's. For ob '0 easons, the common stocks market appreciation from 1957 lows has been only as great as that of the smaller companies. ,vhile the entire industry appears attractive, there appears to be some justification for ranking Swift as the most attractive participation therein at this time. In contrast to its smaller competitors, Swift's emphaSis has been on modernization rather than the closing of obsolete slaughtering facilities. Thus, the company's sales have held up better than those of Armour and Vlilson, and more leverage now exists in Swift which is esti- mated to show 408 of sales per share in 1961, vS. 291 for Wilson and 375 for Armour. As this letter has previously pointed out, the raw materials picture for the industry will probably improve drastically in the latter part of 1961,and with its greater slaughtering capacity, Swift will be in a better position to take advantage of this trend. a large part of the increased supply of cattle will be of poor quality, Swift's margin should also benefit from a tenderizing process which it has developed in order to make a marketable product from low-cost raw material. In addition to the above positive factors, Swift probably has better defensive qualities than its competitors, with a superior balance sheet and per-share working capital approximately twice that of the other two companies. For the fiscal year to end Oct. 31, 1961, Swift's earnings are expected to improve to around ;;4.00 per share vs. the 3.09 earned in fiscal 1960,and some liberalization of the dividen from its current level of 1. 85 is possible. From a technical point of view, the recent upside breakout to 48 indicates a possible initial 64 followed by 90. Strong 'support exists at the 45-40 level. Although as mentioned above the outlook for WILSON & CO. (49) is also positive, we are suggesting that clients who have held this stock since our ori inal recommendation, acce t rofits and transfer th funds 0 IS to be construed as, an offer to sell or 'tm 'th accuracy or and the furnishtng t.hereof…ANt..la.d.\H\Wr.110 to herein The mformatlon ,onet.rucd os. 11 rcprescnta- (t),…..Q… AU,eJlmessJoP of opInIon are subject to change WithOUt. WaJii.l(JlrnMo.P.Jn!fAd Directors, Stockholders and D an mterest In the secuntles mentioned 'h1tefHIel!.l.8'ntYl'resented merely as '!- general. ,vW Jormformlll commentary on day to day market am not as a eomplete analysis Additional mformatlOn With respect to any secuntles referred to herem . ,.. -,'

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