Tabell’s Market Letter – September 18, 1964

Walston &reo. —-Inc. –..;….;.. Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFIces COAST TO COAST AND OVERSEAS TABELL'S MARKET..LETTER-. ,. . .'. .. September 18, 1964 As we have pointed out in these letters, the action of individual stocks has, in recent markets, been far more important than the action of the averages. In recognition of this fact, we have made a number of changes in our recommended list which have been noted in market letters over the past few weeks. Up-to-date copies of this list are now available from your Walston & Co. Inc., Account Executive. Two stocks recently added to the list are reviewed below. In additin, a third, METROMEDIA, Inc., being added to the list this week, is also discussed. SHELL OIL COMPANY (49 1/2) appears to be one of the more attractive investment vehicles domestic ..;owned by–. group and constitutes that group's production, refining and marketing faclhty wlthm the continental United States. However, with a total of over 60 million shares outstanding, floating supply is still large. .. The characteristic that differentiates Shell from most other domestic integrated oils is 1ts in chemicals and natural gas. In the petroleum industry it is the largest domestic manufacturer and marketer of chemicals, including alcohol, glycerine, resins, plastics, synthetic rubber, styrenes, agricultural chemicals and sulphur. Extensive oil exploration is being carried on in the Louisiana offshore area, which now accounts for 250/0 of total crude output. Both earnings and cash flow set a new record in 1963 with 2. 97 per share being shown. Another new record is expected in 1964 with the com pany having earned 1. 58 for the first six months versus 1. 50. The 1. 50 dividend provides a fair yiKeOldP. PERS CO. INC. 49 has long been a major bui r 0 0 ens, but in recent years has become active in two fields which appear c al ise for the fut ure. The first of these is chemicals, most of them coa . roducts. These include naphthalene, resins, styrene and ich holds a great deal of promise is oxygen steel making and Kopper 1 n the st important domestic designer and-builder-of- n -.., casting process now getting diversified, but the great ajo' ;r,1; industry. Koppers' sales are widely heavy industry. The stock is, therefore; in a position to benefit fr ca' spending. 1963 earnings were 3.01 and should improve to around I 2.00 dividend provides a relatively generous yield. METROMED 18 is a new addition to our list. Although speculative,and erves attention. It has increased revenues from 5 million in 1956 to 60 million la ear, with an increase in per share earnings from to 2.13. The company is an owner and operator of television and radio stations and also is prominently identified with outdoor advertising on the west cqast. The company's ability to increase advertising revenue for the various media it operates speaks for itself. The company operates under FCC regulations which limit single ownership to seven television stations and seven radio stations. Under these regulations, a company which owns the maximum permissible number of stations can increase revenues only by trading up — selling smaller stations and buying larger ones. This the company has done successfully over recent years and now has television stations in New York, Los Angeles, Washington and Kansas City, plus rariio outlets in New York, Los Angeles, Philadelphia, Cleveland, Kansas City and Baltimore. Recently, a television station in California, sold. Thus, the company is now in a position to acquire a station servicing a larger market- ing area. Regulations would also permit the acquisition of an additional radio outlet. Most of the company's acquisitions over the years have involved borrowing and the company recently refinanced its long term debt. There is considerable potential dilution fro convertible issues and warrants, but it is not believed that this will take place all at once. The stock appears to be an attractive long range speculation. Dow-Jones Ind. 865.12 Dow-Jones Rails 215.30 ANTHONY W. TABELL WALSTON & CO. INC. mnrket letter is not. nnd under no circum!ltancel'l is to be construed as. an offer to sell or a solicitation to buy any securities referred to herein The Information C'Untmncd herem is not I!'tlllrnnUlt'd as to necuracy or c0!f1pletene98 and the furnlshln,c thereof Is not, and under no clrcumstanees 18 to be construed as, a representa- tion by Wnlston & Co.. Inc All expreoslOns of opinion are subject to chlln,cc Without notice Walston & Co Inc and Officers Directors Stockholders and Employees thereof, pUlchnse. 8ell and may have an intere9t In the securities mentioned herein. ThIS market 18 and all a general. mformal comm..ntary on day to day market news and not all a complete analysis Additional mformation With respect to any securities referred to herein will be iurn1shect upon request \\ N 301 …