Tabell’s Market Letter – June 05, 1964

Tabell’s Market Letter – June 05, 1964

Tabell's Market Letter - June 05, 1964
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— Walston &- Co. Inc Member. Sell' York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER June 5, 1964 The first four days of last week saw the Dow-Jones Industrial Average, along with most individual stocks, decline sharply. Thursday's low was 800.76, close to our downside obJective of 795-785. In an uncertain market of thiS nature, holdings should combine a minimum of down- side risk with good long range upside potential. American Can Company is therefore being added to our Recommended List for quality and long term growtn. AMERICAN CAN COMPANY Current Price Current Dividend 44 i ng -atAi'm7 erican times Can, last y currently at 44, is sellear's earnings -of 2.56 Current Yield 4.50/0 to yield 4 1/20/0 on the 2.00 dividend. A simi- 1ar statement could have been made at almost Long Term Debt 227, 685,000 any time during the past 10 years. With short 1.75 Pfd. Stock 1,661, 502 shs. periods of exception, the price range since Common Stock 16,112,107 shs. 1954 has been 40-50 and earnings have held between 3.04 peak and 2.06. The 2.00 Sales 1963 1,149,400,000 Earned per share 1963 2.56 payout has been a fixture since 1956. Although this is hardly the picture of a growth Market Range 1964-62 47 3/8-38 1/8 stock, there have been profound changes takin place during the past decade which have not been statement. American Can is no longer purely a tin can maker, r zor-thin profit margins brought about by intense competition. It 0)1 a' sified .company spanning the entire packaging field with strong inancial abilities auguring well for growth outside the Paper have been acquired. In 1960 n nte 956 Dixie Cup and Marathon the glass container field. In 1962 v it' presentatioh-in-thechemYcai'and — metallurgical fields and New Jersey electroplat g co e i acquisition of Hanson Van Winkle, a 17 million. It has been a leader in new product development th e aging area. It is certain e why all this has not been reflected in results. The answer is that gro ntroduced packages is slow but steady. The metal beer can, for example. to ears from the date of its introduction to achieve the commandin share of the market' ow holds. Many recent American Can introductions may be in the early stage of similar growth patterns. For example, soft drink cans increased their sale by 28 over 1962. Their total market share should double by 1967. That American Can intends to remain in the forefront of packaging technology is evident by its recent formation of a corporate planning and development department with an executive vice-president in charge. This department is now building its own research and development center. An example,of American's technological leadership is the metal-blowing process, licensed by American from llikon Corporation. Capable of forming seamless aluminum co tainers of any type by forcing gas bubbles through a bath of molten metal, the process has recently passed from the experimental to the pilot production stage and will be applied to other materials, including plastic. It could well revolutionize the entire can-making field by affording significant economies over the present highly complex process. From a technical pOint of view, if the narrow range in which the stock has long held is considered a base, the ultimate upside potential could be well above current levels. It is felt that continued development and expansion will produce the earnings to justify such levels over the long term, and the stock is recommended for income and long-term growth. Dow-Jones Industrials 806.03 Dow-Jones Rails 202.50 ANTHONY W. TABELL WALSTON & CO., INC. ThiS mnrket letter IS not. and under no circumstances IS to be conbtrncd as. fin otter 10 sell 01 R bolicltntlUn til lIuy any 1efCl1 c(llt) hCH!1n The mformntion ('onlnined herem is not guaranteed as to accuracy or ('ompletencso; and the fill fllShlnJ! thereof HI not. nnd undel no el' lumtnnLe., IS to be ns, a rCll! ecntn- han by Waiston & Co, Inc All expression! of OpinIon are to chnnJ.!(.' \\lthuut nutlce & Co, Ipc. and Offlcel Dllcc\nls, and thereof, purchase, sell and may have an Interest IJI the !eC\lrltles hClcln market lett(.'1 1ntende.1 merely a informnl commentary on day to day market news and not as a complete AddLtwnal Inf01 mation \\lth to I1ny lefellcd to heicin WIll be fllrrnshed upon reQuest \\;.. 31)1

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