Viewing Month: October 1966

Tabell’s Market Letter – October 07, 1966

Tabell’s Market Letter – October 07, 1966

Tabell's Market Letter - October 07, 1966
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Walston &- Co. –,;…….. Inc MUNICIPAL SONDS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFfiCES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER I L. e. October 7, 1966 / The Dow-Jones Industrial Average continued to slide this week. From an intra-day high on Monday of 778.11, the Average declined 38.47 points to an intra-day low on Friday of 739.64. The greatest casualties experienced in this decline were in the so-called growth stocks, including aerospace, airlines, electronics and radio-TV. As this letter has pointed out, during this recent market decline a great many stocks have come down to, o,r close to, major downside objectives. For the most part, these stocks are higher grade equities which reached their highs not in early 1966, but as far back as 1965 or 1964. With these downside objectives having been reached, they now appear to be at historically attractive levels for purchase.or.l.a…lon-g4er-m basis. WhUe.the'process vaI'ies' witheach individual issue, time, quite obviously, will be needed for these stocks to complete new base formations. There also exists a minority of issues where long-term bases still exist, indicating higher levels. The recent decline in these issues has brought their prices down to intermediate-term downside objectives. We would prefer to concentrate on those stocks which do not appear vulnerable to further downside risk and could, when economic uncertainties resolve themselves, produce substantial capital gains. Selection of these issues for purchase on weakness should therefore, be an important part of the investor's strategy over the next few months. One such stock is reviewed below. GULF OIL CORPORATION Current Price 54 3/8 Current Dividend 2.20 Current Yield 4. 05 Long Term Debt 530, 960, 759 Common Stock (shs) 103,601,482 Sales-1966-E 3 800 00 000 Gulf Oil grated oil companies w' gas, petrochemicy,l-s, 1 Iu world's major interffi interests in natural c icals and plastics, has shown a i ov nt in relative strength within the oi up in recent weeks. On Aug ust 30th, a 1966 low of 48 5/8. Since that Sales-1965 ;3 385 000 In- Earn. Per Sh. 1966-E 4. 80 for the same period. To classify Gulf Earn. Per Sh. 1965 a n'1nternational oil is misleading. The geographical Current Range 58 / – 4 up of Gulf's profit continues to shift noticeably to the nited States. Net income derived from U. S. operations has almost doubled fro 1958 to 710/0 in 1965. (80 Western Hemisphere). This has en abled Gulf to benefit sub ially from the rising product demand and firm domestic gasoline prices which the dome lC oil companies have recently enjoyed. This shift also protects the company's earnings from the uncertain political and economical conditions which are present overseas. Marketing operations in the Eastern Hemisphere continue to grow rapidly. Gulf Oil pro duces crude oil far in excess of refinery needs. The most important holding is the prolific 50 owned Kuwait concession (1,260,400 barrels daily). A sizable portion of Gulf's Kuwait output is sold to the Royal Dutch/Shell group under a long term contract. Crude oil processe in 1965 amounted to 1,166,536 barrels daily. Refined product sales advanced to 1,154,427 barrels daily. Domestically, the company markets throughout the United States, with some 33,000 retail outlets. The acquisition of Cities Service's mid-west service stations and British American's U. S. oil properties should further strengthen domestic marketing. Gulf reported first-half 1966 earnings of 2.43 per share vs. 2.03 for the similar 1965 period. This record first-half earnings represents a 19.7 increase. The increase far outperforms the international oil group and compares favorably with the better acting domestic oils.Fiscal 1966 earnings are estimated at a record 4.80, with sales for this year estimated at 3,800 million vs. 3,385 million in 1965. Long-term earnings prospects are enhanced by a success ful exploration program, coupled with continuing expansion of refining, chemical and marketin facilities. The dividend rate has recently been raised to an annual rate of 2. 20 per share, affording a yield of 4.050/0. The company's conservative dividend policy has and will continue to permit further capital spending to strengthen the North American markets. Selling at less than twelve times 1966 estimated earnings, Gulf Oil Corporation,original added to our Recommended List on January 19, 1962 at 39, continues to afford the investor an attractive purchase candidate on minor weakness. Dow-Jones Ind. 744.32 Dow-Jones Rails 184. 34 ANTHONY W. TABELL WALSTON & CO. INC. AWTRJS am mis market letter Is published for your and information and is not I'\n offer to gei1 or a solicitation to buy any AeeUl'lties dlseuslled The Ln- was obtained from sources we bt'1il've to be reliable.. but we do not guarantl!e- Ita accuracy WalstQn & Co.. Inc. and its officers directQrs or eml'loyeea may ha.ve an anterest In or purchase- and sell the securities referred to herein. . WNBI)l J

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Tabell’s Market Letter – October 14, 1966

Tabell’s Market Letter – October 14, 1966

Tabell's Market Letter - October 14, 1966
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-tiLE TABELL'S MARKET Walston &Co. —-Inc —MUNICIPAL BONDS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS LETTER October 14, 1966 With activity having quieted down somewhat, it is now possible to sort through the rather astonishing market behavior of the last few weeks and draw some tentative conclu- sions therefrom. As a start, some recapitulation of the last two weeks of activity is perhaps in order. First of all, in the week of October 3rd to 7th, the Dow-Jones Industrial Average stag a rather severe slide, declining on four of the five days of the week and posting a net decline of just under 30 points. The intra-day low, reached early Monday morning, was 735.74, a figure slightly below the intra-day bottom of 759.52 which had been posted over a month earlier on August 30th. The Rails, generally paralleled the action of the Industrials, also posting a modest new low early Monday. However, the Utilities proved staunchly resistant to the decline, and their Monday low of 121. 66 was sharply above the low of 117.57 scored on August 30th. – This setback was followed by a dramatic rally. FromMonday's low point the Dow chalk ed up a 10-point gain, followed it with a 4-point advance on Tuesday and then, in what started to be a quiet holiday market with most major investing institutions closed on Columbus Day, racked up a 19.53 point advance – the biggest single rise since 1963. Irregularity on Thurs- day and Friday wiped out some of the gain, but still left the Average with an impressive plus for the week. The Rails again followed the pattern of the Industrials, but the formed almost as well on the upside as they had on the downside and advanced sharply on all five days of last week to reach an intra-day peak of 129.42 on Friday. While the above describes the market in terms of the it is hardly descriptive of what took place in a great many individual stocks. In wei weeks ago, a great many of the trading favorites of early 1966 took the a ti e – red to any group of issues in recent memory. A glance at the list of t – e stocks for the week of October 7th is a virtual horror story, with decline/!oJ'i31 – s in Fairchild Camera, 42 points in Xerox, 6 points in Sperry Rand and roughs tjypical of the action. The climactically oversold condition e to the leaders in the early stages of the aBY is week they had, in most cases, re- gained half or more of their Thus, we ie O'f what has happened in the stock market during the past week — t – ec ' 'ng to new lows by a small amount, and the glamour' stocks undergoing a ' ac rom which they have only partially recovered. Yet, even this does not tell the 01 . During the week of October 3rd through 7th, 756 new lows, !for the week were recor along with the low in the Dow. This figure is high enough, but is significantly lower than e 1020 new lows chalked up in the end of August. It means, quite ob viously, that at least 264 issues failed to follow the Dow into new low territory, a phenomen often symptomatic of a decline running out of steam. Equally interesting was the continuing decline in most downside volume measurements, a downtrend that has been in effect since April of this year. This sort of action lends credence to the belief that the worst of the sell- ing pressure in a great many st0cks may well be over with. What does all this mean for investment policy First of all, the technical damage done by the recent market to a great many of the so-called glamour issues is immense, At best, a considerable period of time will be required to form bases in these issues and, at worst, there is considerable further risk present. We have warned the investor against the use of issues of this type previously, and we reiterate this warning at the present time. At the same time, it is difficult to ignore the fact that a great many highgrade stocks have reached major downside objectives and at present levels represent their best value in a great many years. It is our view that the investor should upgrade his portfolio accordingl y. Dow-Jones Ind. – 771. 71 ANTHONY W. TABELL Dow-Jones Rails – 191. 92 WALSTON & CO. INC. '1' We are happy to announce that Mr. Harry W. Laubscher has joined our staff effective this week. Mr. Laubscher, a member of the N. Y. Society of Security Analysts, has been a writer on stock market subjects for the past eight years and is the author of numerous articles. He will, on occasion, assist in writing all or part of this letter, but his main function will be to supervise communication between the Technical Research Department and Walston & Co. In Account Executives. It is our hope that his addition to our staff will help the Walston Accoun Execut ive better to serve his clients with technical research material. A. W. T. This market letter Is publillhed for your convemence and Information and is not 1\0 offer to sell or II. sohcitatlon to buy aoy eeeuritiea diseu8Sed The In. formAtion was obtained from 80urces we bt!lleve, to be reiJl'lble, we do not guarantee Its accurACy Walston & Co. Inc Rnd lis officers. dl;eetors or eml'loyees may have an mterest In or purchase and sell the securItIes referred to herem.

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Tabell’s Market Letter – October 21, 1966

Tabell’s Market Letter – October 21, 1966

Tabell's Market Letter - October 21, 1966
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t/ L W—-a–l-s–tlonnc–&—C–o–. MUNICIPAL SONDS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS lABELL'S MARKET LETTER October 21, 1966 The stock market extended its rally in the early part of this week, chalking up a 20- point gain on the Dow on Monday and Tuesday. Irregularity set in toward the end of the week and, roughly a third of the week's improvement had been given up by Friday's close. Action of the Rails generally paralleled that of the Industrials, but the Utilities were again features on the upside, and at Friday's clos e of 133.03 were comfortably above their September highs – a level nowhere near attained as yet by either of the other two averages. Actually, beneath the surface of last week's market a number of interesting things wer happening. First of all, by Friday, all of the short-term oscillators used by this department to gauge the short range condition of the market had moved into overbought territory. For once, this has significance on a a's w-ell-as a short-term baSis.- The present rise marks the first time since the February high that the market has been able to generate a rally with enough vigor to cause a short-term overbought condition. Thus, at least to a de- gree, the heavy selling pressure which has characterized the market for nine months appear to have lessened. This is also confirmed by most short-term volume studies which indicate that downside volume at its recent peak was lower than had been the case at the culmination of previous selling waves in May and August. Market downswings generally end either with high volume selling climaxes, or with long, protracted periods of dullness in which selling pressure slowly diminishes. We have long felt that the end of the present downswing would conform to the latter pattern,and the action of the past month seems to be consistent with it. KOPPERS COMPANY, INC. Current Price 23 skeptical of all but Current Dividend 1. 40 the most e r n and its response Current Yield 6. 00/0 to news of n decreases, even if tem Long Term Debt 4 Cum. Pfd. Stk. Common Stock Sales-1966-E Sales-1965 Earn. Per Sh. 1966- 62,251, 686 150,000 shs. -634, 940 shs. 400, 010, oy; 1M. porary in been ha en been vicious. Such h8.s \ViiI ppers Company which sold em\e' Ii . as.high as.361L8.and recently sold 1/4, at which price it a yield and sold for under nine times anticipated 6 earnings. Moreover, the dividend providing this generous yield does not appear to be in any par- Earn. Per Sh. 1965 ticular danger, representing as it does only a 550/0 Mkt. Range 1966-65 1 1/4 pay-out ratio. Since the mild earnings decline ex- perienced in the first nine months of 1966 (1. 75 earned per share vs. .83) appears to be strictly temporary, and since a major support level has been reached, we feel that Koppers at its pr esent level is particularly attractive for capital gains and income accounts. Actually, the flat earnings trend for Koppers in the early part of this year can be ex- plained by the performance of one division, its Construction Division which was adversely influenced by shortages of skilled labor and cost increases incur red on fixed price contraqts negotiated some time ago. For the first six months of 1966 manufacturing earnings increase to 1. 33 per share vs. 1. 09 in 1965 – a 220/0 rise. Presumably, the worst of the construct- ion losses are out of the way,and new contracts provide for increased costs, Thus the fourth quarter should show sufficient earnings improvement to enable 1966 results to equal or slightly better the 2. 52ear'fied in 1965. — For 1967 and beyond we see no reason why the growth rate of the early 1960's (earn- ings virtually doubled between 1961 and 1966) cannot continue. The market currently appears to be overlooking the fact that Koppers rather than bein largely a construction company now derives some 750/0 of revenues from manufacturing oper tions in the Chemical, Plastics, Construction Materials and Machinery fields and that most of the markets it serves appear to have excellent growth potential. Furthermore, the Con- struction Division, although a relatively minor part of the company, should be able to turn around in the second half of the decade with demand for new steel facilities, especially in the area of continuous casting and basic oxygen,growing at a high rate. The stock is again suggested far purchase at current levels. Dow-Jones Ind. 787. 30 Dow-Jones Rails 193.07 ANTHONY W. TABELL WALSTON & CO. INC. formation was obtained from sources we believe to be rehable. but we do not guarantee its accuracy, Walswn & Co.. Inc and Its officers direct.o e m- eml'loyees may have an interest in or purchase and sell the secUTltws referred to herem. . rs or WNBOl

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Tabell’s Market Letter – October 28, 1966

Tabell’s Market Letter – October 28, 1966

Tabell's Market Letter - October 28, 1966
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Walston &eo…;… Inc. ;…—..;… MUNICIPAL BONDS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchang OfFICES COA.ST TO COAST AND OVERSEAS TABELL'S MARKET LETTER October 28, 1966 The market continues to act well. Sharp rallies in the Dow-Jones Industrial Average on Wednesday and Thursday of the past week brought the index to a level decisively above where it had been trading since mid-August, with the exception of three days at the peak of the early September rally. At present, decisive penetration of the September intra-day high of 822.93 would indicate the possibility of 860, an area where heavy supply exists from the June-July trading range. A decline back below 800 would broaden the base further and eventually yield a still higher objective. Meanwhile, the shift in leadership continues with bettergrade and unexploited issues generally outperforming the market leaders of earlier this year …. . – METRO-GOLDWYN-MAYER, INC. Current Price Current Dividend Current Yield Long Term Debt Common Stock 33 1. 00 3. 0/. 29,273,000 5,042,895 shs. Movies again are getting better than ever. At least, that's the way the industry income accounts are shaping up if box office receipts are any indication. Evidently, investors also are aware of the improving trend as purchases of leading equities within the group reveal a pattern of relatively aggressive Sales 1966-E Sales 1965 185,000,000 162,000,000 accumulation. MGM has been one of the most heavil acquired in recent months as the probability of a Earn. Per Sh. 1966-E Earn. Per Sh. 1965 2.00 1. 56 Mkt.Range 1966-65 33 5/8 – 163/8 proxy fight continues to the outlook. With the prize evidently . g asset value, conser- vatively ted 0 e a share, the present managemen c ly' . eingchallenged for control by a ong dissident group. The of thiS. controversy, com.t'ined with fundamentals, suggests the ;p.lly nd .',;,lbutio; of motion pictures. Additiona 50 theatres in key foreign locations, pro- duces phonograph recor us publishes sheet music and supplies tele- vision broadcaster w e ' erial. The insatiable appetite for movies on the part of TV network t into film libraries. MGM has about 145 films that' have not yet been released, b u f of which could be suitable for TV showing. The Company expects to receive abou million from CBS for the rights to televise 63 of its films. The agreement also inclu s the possibility of CBS showing several films televised previously by NBC. With about 5 1/2 hours of prime network time this season, MGM is busy producing film series for TV, including such favorites as Please Don't Eat the Daisies and The Ma From U. N. C. L. E. . Aided by the excellent box office showing of Dr. Zhivago, still the nation's No. 1 grossing movie, which cost only 12 million to produce and which company officials are ex- pecting to have an eventual world-wide gross of more than 40 million; plus the rapidly rising income from TV operations, earnings for the current fiscal year ending next August 31st could show a good increase over the 2.00 a share estimated for fiscal 1966. Although; difficult to judge with accuracy far in advance, p!,ofit margins have been in a recent uptrend. \ and industry analysts are hopeful of seeing this trend continue to improve. MGM also conti- nues to benefit from the high gross being received by such low-cost films as A Patch of Blue, already having grossed more than seven times the 1 million production cost, and timely re-runs of such important films as Gone With The Wind and Ben-Hur. Although selling at a price/earnings multiple well in excess of industry average, re- flecting the control situation, these shares indicate strong technical support in the upper 20's, suggesting the likelihood of small downside risk from current price levels relative to the considerable upside potential indicated. Having broken out of a base formation in the 26-32 area, an upside objective of 52 is indicated. The issue, originally added to our Recommended List for capital appreciation on March 1st 1965 at'19 1/2 adjusted, is again suggested for purchase. HARRY W. LAUBSCHER for ANTHONY W. TABELL Dow-Jones Ind. -807. 96 WALSTON & CO. INC. Dow-Jones Rails-199. 51 AW'jif 4PttWlimlI PUbUllhed for your and infonnatlon and Is not an offer to !leU or a solicitation to buy any securIties di&e118lled Tb. i waa 0 btained from. II01lrees we believe to be reliable, but we do not guarantee Its accuracy Walston Co Ine and ita dl'-'- e em01et11 111&1 have an Intere.t in or pUPehaae and se11 the securities referred to herein. … …cera. .ox …..rll or

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