Viewing Month: March 1965

Tabell’s Market Letter – March 01, 1965

Tabell’s Market Letter – March 01, 1965

Tabell's Market Letter - March 01, 1965
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Walston &Co. INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Stock Exchange. Chicago Board of Trade and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS EDMUND W. TABEll'S RECOMMENDED LIST Instead of Comments, this edition of our Recommended List gives long term technical upside objectives and indicated support levels in cases where such levels exist. An asterisk in the Upside Objective column indicates either that the objective is unclear, or that the stock has not yet broken out ofdts ,base formation. Amerada Amer. Can Gen'l Elec. Gulf Oil QUALITY & LONG TERM GROWTH Close Qual3/1/65 itl 79 1/8 A 42 7/8 B 98 1/2 A 56 1/4 A Upside SupObj. port 108-150 – 130 , 66-92 50-48 ClOr Qual3/1 65 ity Uo/bjs.ide Norfolk W. 132 1/2 A 155-170 Reynolds Tob. 40 1/8 A Royal Dutch 46 7/8 A 52-86 Support 125 41-39 PRICE APPRECIATION Close Qual- 3/1/65 J!L Amer. Met.Pr 25 7/8 B Atchison Top. 33 1/8 A- Beaunit Corp. 40 B Cenco Inst. 32 1/2 B Clark Equip. 55 3/4 A- Clevite 45 1/8 B Cluett, Peab. 68 5/8 B Copperweld S. 60 B Crowell CoIL 30 5/8 B Denver, R. G. 20 3/8 B Disney, Walt 56 3/4 B Eaton Mfg. 46 1/2 B Elec. Stor. B 48 1/2 A- El Paso NG. 22 1/8 B First Charter 21 3/4 Fruehauf 32 7/8 B Gen'l Dyn. 39 Hewlett Pack. 27 1/4 B Illinois Cent. 51 3/8 B Int. Min. Chem.53 1/4 A- Kansas City S 41 3/4 A- Koppers Co 63 3/4 B Korvette,E. J. 40 1/8 B Litton Ind. 87 5/8 B Upside SupObj. port 29-36 22 '0 28 57-60 42 60-84 57-100 92 67-63 70-94 45-58 26 28-43 65-100 78 40-36 56-80 25-34 – 56-84 78-114 – 40 80-100 60-80 34 96-128 LOW-PRICED Close Qual- 3/1/65 Lykes Bros. 22 B McDermott 42 1/8 B McGraw Ed. 61 A- MGM 43 1/8 Metromedia 41 3/4 B Midland-Ross 43 B Newmont M 47 3/8 A- No. Amer.Car 31 3/4 A Rayonier 42 5/8 B Raytheon 23 7/8 Reynolds Met. 37 3/4 B Riegel Paper 22 3/8 B Schlumberger 76 1/4 A Scoville Mfg. 47 3/4 B Shell Oil 61 5/8 A Signode Corp 28 3/4 A- Southern Rwy. 57 B Spartans Ind. 237/8 Stevens, J. p, 47 1/8 B Storer Broad. 49 B Sundstrand 22 1/8 B Swingline A. 43 3/4 B United Fruit 16 7/8 B Vornado 38 1/8 Upside Obj. 32-60 48-80 70-80 64 44-52 62 53-60 36-38 51-80 25-40 90-130 65 64-120 33-50 77-104 27-36 52-75 54-70 50-70 54 Support 26 20 70-65 54-50 53-50 45 SPECULA TIVE Close Qual- Upside Sup- 3/1/65 ObJ. port Amer. Radiator 20 7/8 Audio Devices 10 3/8 Camp. Chib. 4 Foote Mineral 19 5/8 B B- B 22-29 15 Gt. West Fin. 10 7/8 Intern'l Pack. 13 1/4 Mesabi Trust 14 B 22 Microwave 9 5/8 B Close Qual- 3/1/65 ity Mohasco 17 1/4 B National Can 19 1/2 B Pacific Pete 10 3/4 B- Sbd. W. Air. 8 1/4 C Sperry Rand 15 1/8 B Univ. Match 17 5/8 B Varian Assoc. 15 3/4 B Vulcan Mat. 18 3/4 B Upside Obj, 14-20 28 Support March 1, 1965 Thib Bulletin IS nut. IIndl1mlC'r nu 'III ,., 11 I,c ('ot1strucd , lin lTl'! to lell 01 II SOILl.t.lllUll to buy IIny SeCIJlltlCS nrcncd to herein The informatIOn con tained hereIn 1'1 not til acruracy 'II C'unlpktcnl.,,, j,Ilii the rm flIbhlng thclcor 1I0t, and under 110 CIrcumstance IS to be construed abo a representatIon by & e, Inc All of opinIOn ale to chanl-(C wlthnut nlltll'(' Walbtn & Co, Inc, and Qfflccrs, Directors, Swckholders and Employees thereof 11Ulchnbe. ;(1\ and nlOY have l'\ll mtl're.t In til(' ;(!Cuntles mentume,1 herein Thl' Bulletm IS Intended and presented merely as mtormal commen- tary lind not. a … n rompiete analYSIS AddllionallnfurmntlOn WIth respC't to RllY ,,('('lllllle… lefened to herein WIll be ftlllushed request WN-916

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Tabell’s Market Letter – March 08, 1965

Tabell’s Market Letter – March 08, 1965

Tabell's Market Letter - March 08, 1965
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Walston &Co. …;……;;,;.;;;..;;…;; 1n C INVESTMENT BANKERS MUTUAL fUNDS MUNICIPAL BONDS Members New York Stock Exchange, Chicago Board of Trade and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER March 8, 1965 After moving sideways for most of the week, the Dow-Jones Industrial Average brok sharply on Friday, reaching an intra-day low of 886.28. A late rally erased much of the loss. Thus, as measured by the averages, the market continues to hold in the 880-910 range wher as has been stated, a, form. Still more time will probably be re- quired to complete this formation, out continued wide swings can accelerate the process. Meanwhile, the sharp shift in leadership to secondary and tertiary issues, remarked in last week's letter, continues to be noticeable. The average price of the ten most active issues last Thursday was just over 18 a share, and these issues accounted for an astonishing 240/0 of total trading volume. While all this was gOing.,on, high-grade international oils, probably beset by transitory foreign developments, continued to decline sharply. It was not a picture precisely calculated to inspire confidence. In a market of this nature, the best investment opportunities are probably found in those secondary issues which appear to afford real value and which show good improvement prospects. One such issue is reviewed below. METRO-GOLDWYN-MAYER, INC. Current Price 44 Current Dividend 1. 50 Current Yield 3.4 Movie production is, to say the least,a peculiar business. Let us examine how it works. A movie is produced at an out-of-pocket cost of SO Long Term Debt – None Common Stock 2, 611, 829 shs. Revenues-1963-64 117,760,000 Earn. per Sh.1963-64 2. 83 many millions of dollars. It is then releaSed and these costs begin to be recovered in the form of rentals. The rentals, however, continue for anum ber of years as (!'loves from initial re- lease intoJl,rst- n neighborhood house Mkt. Range 1965-62 58 1/8-26 3/8 and, in this Ie 0 television. Obviously d1Aoper . reported results depend Note Fiscal year ends August 31st. lOitial costs are amortized ove ue the picture. It is industry practice today e f ' e portion of production costs at the time the picture is produced. e picture has future value, a capital asset is built up which should r flect' the stock. Let us examine this from a couple of angles in the case 0 e ended last August, the company made a profit of 2.2 million pre-t ction after deducting all direct costs, plus all general expenses incurred by e y. Its other businesses – television production and the lu- crative record business – re also profitable after deducting direct costs. Yet, on top of all this, the company eyed 11. 8 million in revenues,or roughly 4. 50 per share pre-tax, on films already produced and already largely written off. Since it is the company's policy to release to television about the same number of films that it produces each year, this proces theoretically can continue indefinitely. Viewed in another way, the company carries its released film inventory at some 34 million. Last year it sold thirty post-1948 films to NBC for 7. 7 million. The total library consists of more than 1,100 films of which more than 400 are post-1948. Moreover, the pric that television is willing to pay for future films has been increasing at the rate of about 10 per annum. Thus, the outlook for MGM, under its new managemen1; appears interesting. Stunned by Mutiny on the Bounty losses, has turned from high-cost spectaculars and is producing medium-COst yet generally high-quality pictures. As stated above, film product- ion was profitable in fiscal 1964 and should continue to grow in profitability in 1965. Other phases of the company's business have good prospects and the film library continues to be a sort of hidden asset and should continue to produce income. It is probably too early to esti- mate earnings for 1965, but a substantial increase over the 2.83 shown in 1964 is possible. For the first quarter,results were 60 per share vs. 26 in the like 1964 quarter. From a technical pOint of view, the stock has an upside objective of 68 with good sup- port just under current levels. It is recommended for purchase in capital gains accounts. Dow-Jones Ind. 895.93 Dow-Jones Rails 209.30 ANTHONY W. TABELL WALSTON & CO. INC. Thl'l market Ictter 1'1 not. and undl'r 110 CITclItTlstanccs I., tn he contluu! .1.. ,lIl ofTe! In ' 11 SOIl('lt.ltlOl1 I bll) any seclir liles referred to herem The tnformatl)n n lmed hcr-ciills nut I!unrnntee\ all to ..1('C'UTllC)' or ('umpietcnc,,-; allll the fut nJ5hlllJ.( th..n….f. nt, \lnde. no rIlLum'ltnn'('….. tobe eot!!.trued n ' rellresentn co t W I to & C Inc All f pmlOn are t \\lthollt notice \\ lI'ton & Co Inc and Officers. Directors, Stockholders anrl IbYt! ' n r '\1. …e lind may h.we 'In Ifltcrc…t In the ..ccur.llL'l mcntwned hC1Cltl I'hl mark't !eltl'r IS Intended mere! II J,(cneln1. day to da market new; alltl not a 1 com\llcte Add.tl.jn.d mfO! mallon WIth lc,pect tn any relet rel\ to herein furnished upon request.

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Tabell’s Market Letter – March 15, 1965

Tabell’s Market Letter – March 15, 1965

Tabell's Market Letter - March 15, 1965
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Walston &- Co. Inc – INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Stock Exchange, Chicago Board of Trade and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER March 15, 1965 The stock market has, apparently, entered on a new phase. At the February 4 intra-day high of 911.jg1, it had clearly reached the upside objective of the DecemberJanuary rally. Since that..time.for five weeks now, it has held in a narrow trading range of barely 2-1/2 between the 'February high and the Vietnam crisis low of 877.48. This phase has had a number of characteristics readily apparent to even the most casual observer. One is the continued good market breadth—advances outnumbered declines by a substantial margin in three out of February's four weeks. Another is increasing volun;.e – – -with the exception of the last week 'in-FebruarY;'volume since February 1 has been greater than for any week since last September, The third obvious characteristic has been a dramatic shift in leadership away from the blue chips and into secondary and tertiary issues. This is, perhaps, one of the reasons that the averagEs have done very little. In summary, the phase can be said to be characterized by a large number of advancing stocks but a sharp decline in the quality of those stocks. Oddly enough, all this has not been accompanied by any great fluctuations in the averages. The Dow has not built up sufficient base to indicate a major new high as yet nor is the potential top yet of significant magnitude to indicate a penetration of the strong support in the 880-870 range. This would indicate that the type of action mentioned above may be with us for a while longer. Accordingly, it becomes important to look);,or wO may next ensue. In this connection it is worthy ,)f note that the arks the end of the traditional year-end rally which began at the 15 10 850. 19 and now may be said to have ended at the February high. p'hlrti ut in many letters that the thing to watch in ,t 11 the December,low. A downslde penetrahon of thlS low h r a ;!..il; wer market for the year two-thlrds of the time since 1897. In 0 s 'e to improve on the forecasting of the December low n . example, a strong rally, advancing 10 or more from the low and i 0 e February Or March, makes it unlikely that the As an example, the 1961, 1963, and 1964 year-end rallies approximated 10 an lnued well into Felruary or beyond. The 1960 and 1962 year- end rallies were les an 5 and topped out early. Indeed, in 1962 the rally topped out on the first day of the year, and the December low was broken in the first week in January. Unfortunately, 1965 presents a middle ground. The rally continued for about a month, about the mean for all such rallies in this century. The advance was 61 points in the Dow or a little over 7 . Rallies of this magnitude have generally indicated an upward market in recent years, but, if the price history going all the way back to 1897 is studied, the conclusion becomes less certain. Again, even at this late date, the December low becomes an important figure to watch. A declinetS' this Jigure would have a significance not only from a year-end-rally point of view but from a number of others. It would also indicate a downside penetration of the decisive support level mentioned above and of the trading range which has contained the market since mid September. It would also decisively penetrate the present level of the 200-day moving average. The ability, therefore, to hold above the 880-870 support continues to be constructive insofar as the present market is concerned. Inability to continue the present rally followed by'a decline into the support, accompanied by deteriorating breadth and volume, would be viewed with some alarm. Dow-Jones Ind. – 900.33 Dow-Jones Rails – 213.08 ANTHONY W. TABELL WALSTON & CO., mc. Th lr'\!.et letter IS not and under no ClrCulTlbtnnces IS to he con..trucd fib nn ffCl to ('II OJ n to huy sccurlti('s Tt'fcrrl'd to herem The IS mt h II nut 'unrantecd as to nccuracy or cumlllctcnc-,s and thc fut nhhll1l! Ihete,,! t.. not. nnd untiCI 111 clrcumstanCC,. IS to te cOIl'truei Il' n jby V. Col! Inc- All expressIOn. of opllllOn nre subJcrt to Chlll.!E' wIthout lIotlce, & Co, InC' Rnd OffIcers. Dlrel'\ors. Stockholders nnr! sell lind mny hllve 1111 Interest in th(! menttnncd heteln fhls marct Ictter I lnten.ied and pf'-.etct.i mer'i) ah 1\ genunl, IIImo,prmOYnl!,,,e,OMn'Hm t'IlPry on ('..y t0 ,y mok' ..'ew5 nnd not IlS II. complcte Ad.htlnnni ttlfUl million \\Ith to an) secuntws referted to hcrCIn WIll JbOc! furmshed upon request

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Tabell’s Market Letter – March 22, 1965

Tabell’s Market Letter – March 22, 1965

Tabell's Market Letter - March 22, 1965
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lABEll'S MARKET Walston &eo. – INVESTMENT BANKERS MUTUIAnLcFUNDS MUNICIPAL BONDS Members New York Stock Exchange, Chicago Board of Trade and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS lETTER March 22, I 1965 LING – TEMCO- VO UG HT Price Dividend Yield 24 1/2 . 50 2.0 One characteristic of recent markets has been the shift in leadership from blue chip issues to the more speculative secondary stocks. Part of this Long Term Debt 4 1/2 Pfd. 3 Pfd. Common 34,591,553 151,084 shs. 265,830 shs. 1,849,968 shs. is, of course, attributable to a certain reawakening of speculative interest, but a portion is also, no doubt, due to the fact that good values and attractive potentials exist in a good many hitherto- Sales – 1964 322,859,000 Sales – 1965-E 300,000,000 the case with Ling-Temco-Vought. Ling-Temco is not to mince words, a speculative issue. Its re- Earn. per share-1964 2. 31 cent earnings record has been erratic. Its capital Earn. per share-1965-E 2.30 Mkt. Range 1965-62 257/8-13 1/2 ization, though much improved, is debt-laden. There is potential equity dilution, the basic busi- ness is volatile, and the stock has moved up shar Note Debt includes 10.8 miliion convertible into common at 33.74. ly in recent trading sessions. This all indicates that risk is attached to the purchase of the stock, 4 1/2 pfd. convertible share for but the question is whether this risk is compen- share. 3 pfd. convertible into sated for by adequate potential reward. In Ling- 1 1/4 shares. Temco, this appears to be the case. Recent Ling-Temco pic- ture fall into two categories – the financial and the n aI Wo e financial point of view the company – the outgrowth of a series of me c .. ions extending over a number of years – has taken a number of steps to imIRr9te it ance sheet. Long term de has been reduced sharply from 65 million d short term debt has been halved. The number of common w from 2.78 million to 1. 85!llillion, -and -the problemaf potential dilution s — – — – );a,;; – ed aggressively through the refinancing of a number of convertible that current potential dilution through convertibles and vertible substantia y v . rr t most all currently outstanding issues are conmarket so that this problem becomes unimportant as long as the stoc A recent move a ur levels. t e pany in the financial area appears to have some significance. It has recently formed e wholly-owned subsidiaries consisting of 8 of its 11 operating divisions and plans to sk for tenders of its own common in exchange for cash and shares in each of these three subsidiaries. The effects of this move will be (1) the outstanding com- mon shares will be further decreased, and (2) the establishment of independent market values for the three subsidiaries may lead to a more generous appraisal of the parent company. Ling will still own 83 of these subsidiaries. From a fundamental point of view a dramatic improvement appears in the offing. The company is well diversified in the aerospace, electronics, and missile fields. A number of projects for which the company is prime contractor appear to hold promise, foremost among these being the development of the A-7A attack aircraft for the Navy. The magnitude of this contract is staggering. 100 million has been allotted for development of a new pro- duction aircraft. It has been estima ted that;-if proven successful, as maiiy as-i, 000 aircraft could ultimately be ordered, giving the contract a value in excess of 1 billion over a peri of years. When compared with Ling's 300 million sales base, the effects could be dramatic. . Other projects, less definite than the A-7A, include the Lance surface-to-surface mis- sile and the XC-142 verticle take-off transport. If these contracts were to realize their full potential, this, with the A-7A, could well mean a doubling of present earning power by 1967. From a technical point of view the recent upside breakout from a substantial base formation indicates a possible long term potential of 44 followed by possible higher levels. The stock i accordingly being added to our speculative list and purchase is recommended in risk accamt Dow-Jones Ind. 895. 79 Dow-Jones Rails 213.87 ANTHONY W. TABELL WALSTON & CO. INC. ThiS market letter IS not, and under no IS to be con..trucd U, nn offer t ..('1\.)1 bhCllatwll to hu an seCUrities referred to herem The tnform.ltlon contamed herein IS not j.!unrnntced as to .lccuracy 01 LompletenC!ill md the fut IIIhlnJ. lht'fcnf I nol, and under no ..Ircumst.IIlCCS IS to be construed as, n representa- tIOn b \\'alsHlIl &. Co In(' All c.;prCS!10nb of VIHnlO11 arc '1111ect te Ch,HI)!e \\lthol11. notIce \Vnlbton & Co, Inc. and Officers, Dlrcctors. StoC'kholrlers and Employl'cs therwf, pUlch,I;(' 'lell and hlne an III the rnrormaJ commentary nn dllY to la m.lTh.('l nCW5 and lint a; a (,.oml,lete mentlOllC'd hC'IClIl ThIS market Jelt;r IS Intend;.j and prescnt('i merel us a Jlcnernl. Addltln,1I lllfrnr,ltlon \\lth t(',peet to IIny 5ccurlllC; rcfened tt) herelll \\111 he upon rcqu!;,st \\.\ JI)!

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Tabell’s Market Letter – March 29, 1965

Tabell’s Market Letter – March 29, 1965

Tabell's Market Letter - March 29, 1965
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Walston &- Co. Inc INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER March 29, 1'965 Some individual issues, mainly of secondary character, continue to perform bril- liantly while the market, as measured by the averages, moves in a sidewise pattern. In early November, the Dow-Jones Industrial Average reached an intra-day high of 897.00 and now a little over four months is still at about the same price level. During this four-month period, the intra-day high in the average has been 911. 80, and the low has been 850.19 or a range of between 6 to 7. During this same time period, some individual issues have moved up from 25 to 50, or more. From a technical viewpoint, it would appear that this diverse price action will continue for somewhat longer. The laggards in recent markets have been mainly the blue chip investment issues that were the market leaders from the Cuban crisis low of October, 1962 untillatein1964. Many of these issues reached their highs several months ago. The leadership has been taken over by stocks of lesser known com panies selling at lower price to earnings multiples than the larger companies. In the main, these have been sound companies. The overspeculation in cats and dogs that occurred in the 1961-1962 period has still been comparatively rare during the present period. Despite the fact that the market advance is now two and a half years old and has reached a mature stage of development, there are no signs of an immediate deterioration of consequence. Our long term breadth index continues in the uptrend channel that started at the Kennedy assassination low and, as yet, there has been no divergence between it and the industrial average such as occurred in mid-1961. However, the market must be watched closely for possible signs of a loss of upside momentum. As far as the averages themselves are con- cerned, the narrow trading range of the past several basing out period. The upside potential is not very great as At the moment, from a technical viewpoint, the most This is not very exciting as far as a price rise in of a consolidation 0 et, b e cpattern may broaden. u s' e ntial is around 920. s cerned, but it could re- sult in much sharper advances in individual issues if 9ric ttern of recent months is continued. On the downside, the first to w is the 885-875 area. Any de- cline at this stage of the technical to continue without a sizable inter;. in this area is A break below this area would imply a testing of the At this stage of the earlier stages Hi 19 850.19. v e there is obviously more risk involved than at market. We would continue to concentrate our atten- tion on issues where n e outlook is constructive and where the intermediate term downside risk appears elat' y small when compared to the long term appreciation prospec Our recomme ist contains issues which we believe fall into this category. The following issues have een recommended since January 1st, 1965. Some of these had been previously recommended at lower levels. Date Hewlett Packard 118 Price Close Then 3/26/65 23 5/8 25 Date Cenco Instrum. T729 Price Then 29374 Close 3/26/65 30 3/4 Vulcan Materials 1/8 Scovill Mfg. 1/8 Intern'l Miner. 1/8 Korvette 1/15 181/8 385/8 41 1/2 42 20 1/8 473/4 541/8 42 3/4 Spartans Ind. Metromedia Litton Ind. MGM Ling-Temco 1/29 2/12 2/19 3/8 3/22 19 1/8 397/8 86 44 241/2 235/8 39 1/8 861/4 42 1/4 245/8 A complete-recommen-ded-ltst'will be in the hands of your Account Executive shortly They are issued monthly and each stock is followed from its original recommendation to its ultimate elimination from the list. We are eliminating Midland Ross which was originally recommended at 31 5/8 in September, 1963 and which reached its initial upside potential at 44. Also eliminated are American Radiator (20 7/8), recommended at 17 in January 1964, and American Metal Prod- ucts (25), recommended at 18 also in January, 1964. – – We are adding to our recommended list American Bosch Arma Corporation (18 7/8) and Warner Bros. Co. (33 3/4), the manufacturer of bras, girdles and Hathaway shirts. Both of these issues will be reviewed shortly. Dow-Jones Ind. 891. 66 Dow-Jones Rails 213.69 EDMUND W. TABELL WALSTON & CO. INC. This market Jetter 18 pubhshed for convenience find informatIOn Rnd IS not an offer to sell or 9OlIdt.atlon to buy Rny 8eCufltiea discussed The in formntlOn Wit'! obtAined from sources we btheve to Ie nJable. but we do not gUArantee Its ,,'Riston & Co.. Inc and Its officer!, directors or emptoyees may have an Interest In or purchfUle and sell the seCUrities referred to herem. WN.SOI

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