Viewing Month: March 1967

Tabell’s Market Letter – March 03, 1967

Tabell’s Market Letter – March 03, 1967

Tabell's Market Letter - March 03, 1967
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W—-a–l-s-Itnocn—&–C–o–. MUNICIPAL eoNDS UNOERWRfTERS MUTUAL FUNDS Members New York Stock Exchonge and Of/,er Principal Stock and Commodify Exchanges omen COA.ST TO COAST ANO OVEJSEAS TADELL'S MARKET LETTER March 3, 1967 The past three weeks have seen the stock market lose a portion of the vigor that has characterized it since the first of the. year. It is now fifteen trading since the Dow- Jones Industrial Average last made a new high on February 9th at 871. 71, and the drop to an intra -day low of 827. 95, reached last Tuesday, is the steepest since November-December The point on the Dow (871) from which the decline started, is not without significance. We have suggested for some time that the major te!lt for the Dow-Jones Industrial Average was going to come when it entered the lowest area at which major overhead supply existed , from the 19j35-66 top – that is, the 860- 900 area. It is quite normal for an advance, especially as steep as this 'one has been, to hesitate when such a supply of stock is encountered, and this, in fact, appears to be what is taking place at the moment. The importance of this supply area was stressed by this letter three weeks ago when we said – The broad 860-900 area on the Dow constitutes an area in which a good deal.of stock previously changed hands on no less than three separate occasions in recent market history – May-June 1966, June-August 1965 and October 1964-March 1965. It is the first major test of any sort of supply which the averages have had to undergo since making their lows in October. As might be expected, a great many invididual issues are also now test- ing similar overhead supply areas, although it must be admitted that in the case of indi- vidual stocks the supply in a number of cases does not exist or has already been success- r\' .fully breached. 0 Since last August this letter has stressed a ard the stock market. Throughout the ,Fall of 1966 we repeatedly we ss to commit reserves to favorably situated individual issues. By len the bullish eVidence becam more pronounced, we suggested an es' attitude toward common stock purchases. Obviously, implicit in i 'haD een recognition of the possibility that October 7, 1966 constituted market was embarked on an upward swing of cyclical impor nee. 1S possibility still exists, and the eVidence continues to accum e l' yone. A successful test of the 860-900 area, therefore, seem , e than passing importance, for the penetration of this level would, in our ove one of the few major question marks remaining on the stock market scene. There are persuasive reasons for believing that such a test will ultimately be success fuI. First of all, a great many of the more broadly-based market indicators, including the Standard & Poor's 500 Stock Index, have already moved above comparable supplyarea,s. So, likeWise, have a number of individual stocks. A great many of the so-called lagging market indicators which are designed to turn positive four to six months after a maJor market bottom are, at the present time, close to doing so, and could, in fact, move to the plus side sometime in April or May. In other words, despite the questionable economic picture; there is, at the moment, little or no bearish evidence being provided by market action. For the shorter term, the possibilities are difficult to assess. Ability to hold above Tuesday's lows would be constructive and would probably indicate a further attempt at the overhead discussed above. A new downward move would meet important support at the 820-810 area, and the behavior of the market on reaching that area would be an important clue as 'to intermediate-term market action. Meanwhile, we continue to suggest an aggressively-invested position until such time as the market indicates that such a position entails more than it does at the moment. Dow-Jones Ind. – 846. 60 Dow-Jones Rails – 229.08 ANTHONY W. TABELL WALSTON & CO. INC. AWTamb Tbl. letter is PllbUIbed fot FOUr ftnd infoM'nallon I'Ind Is not 1I.n to or to buy Won) !Ie'\U'llIes …hel-Ue(l, in- ttnolmDl.ottl.o.n. m. …, haT. an lufrYolm'eftIOinQroerapwue.ehbueeliA..ndto-.eblleth,eliable, bllt we do ntoot IlIlflrnntE'l' ttl! ,.eeur/lley, Wftlllton & Co 1ne nnd it Qffiuls. dlrwtor. or -.ll\E

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Tabell’s Market Letter – March 10, 1967

Tabell’s Market Letter – March 10, 1967

Tabell's Market Letter - March 10, 1967
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—— Walston &- Co, MUNICIPAL BONOS UNDERWRITERS MUTUAL FUNOS Members New York Stock Exchange and Other Principal Stock and Commodity Exchen9.' TABEll'S MARKET lETTER OFFICES COAST TO COAST AND OVERSEAS March 10, 1967 COM MUNICATIONS SATELLITE CORPORATION Current Price 61 1/4 Holding the distinction of being created Current Dividend Current Yield Long-Term Debt CommOn Stock nil nil None 10,000,014 shs. by an Act of Congress just a few years ago, the Communications Satellite Corporation-already threatens to become a powerful interloper in what heretofore has been the comfortable and stable world of communications. Referred to by Sales – 1966E- – . – – 10,000 000 Sales – 1967-E 25,000,000 be the forerunner of other companies operating communication facilities in outer space as their Earn. Per Sh. 1966-E nil main area of endeavor, perhaps replacing entire Earn. Per Sh. 1967-E 40 to 50 ly the underground and underwater cables and Mkt. Range 1966-67 35 – 64 7/8 long distance lines of today. One Wall Street analyst has put it this way … just as the pony ex- press gave way to the telegraph… the revolu- tionary technology of communications through space via satellites is about to become man's first commercial utilization of space. While only the passage of time will reveal if the hope that now are held for the successful operation of Comsat are to be realized, to the investor seeking long-term growth potential these shares appear to have distinct appeal at the present time. There seems to be little doubt that these shares b8la favorite trading hic1e for speculative accounts while at the same accounts. Despite the fact that half of the munications companies, generally more than 20/0 of servative growth e ely held by other coms s change hands monthly. Among the common carriers operating LOns field, AT&T is the largest single shareholder General Telephone has 3. 750/0, o. is held by 130 other communications companies. The B' cc s'tf 1965 was the first major milestone in the development of the 0 y. c unications that constitutes Comsat's main area of operation. This is a s ellite orbiting the earth approximately 22,000 miles a- bove the equator. At t ei ,the satellite can cover more than one-third of the earth's surface. The recent lau g of another satellite brings the earth coverage to just over 650/0 of the globe. Full glob coverage will be completed as soon as stations can be established in central Asia. Early Bird already has increased by more than 500/0 the telephone capacity a- cross the Atlantic. Operating cost reductions are expected when full coverage is achieved since the cost of operating ground stations is low when compared with the upkeep of under- ater cables. With international communications traffic growing at a rate of about 2Q annual y, the need for expansion of capabilities is apparent. It has been said that better communica tions at better prices bring their own customers. In addition to the projected expansion of telephone and TV satellite operations, there is believed to be considerable potential in inter- national telegram and cable traffic. ' Compared with total revenues of 2. 1 million in 1965, the estimate for 1966 is near the 10 million level. More than a doubling to around 25 million.is anticipated for 1967. Because of the adoption of a profit-and-loss accounting system throughout 1967, only conven- ional earnings results will be reported. Earlier, it had seemed likely that between 40 and 50 a share would have been realized this year. Consequently, dividends in cash are not part of the foreseeable future. Basically, investment in Comsat represents a concept of inevitable growth due to ever increasing demand. Added to this is the attractive prospect that any com- petition will be a long time in developing. Technically, Communications Satellite has held in a broad accumulation area recen ly testing a major support area during the August-October lows. The stock indicates a long- term upside objective in excess of 100. With minimum downside risk present, and a marked improvement recently in relative strength, this issue is being added to our Capital Apprecia- tion List. Dow-Jones Ind. 848.50 Dow-Jones Rails 234.18 HARRY W. LAUBSCHER for ANTHONY W. TABELL WALSTON & CO. INC. ThIB market letter 18 published for your eonvtnlence and Information And Is not an ofFer to sell or a solicitation to buy any securities dlscuaaed. The in- feomrDmloaytieoena mwaays hoabvtaeinaend Ifnrtoemrestsoiunrcoers pwUel'clblaealieevaendtoBbellethreeliSafb!lceu,rlbttoest rweeferdroedntoot hgeuraerina.ntee Ita Walston k Co., Inc. and Its offleera. directon or

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Tabell’s Market Letter – March 17, 1967

Tabell’s Market Letter – March 17, 1967

Tabell's Market Letter - March 17, 1967
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Walston &Co. lnc. MUNICIPAL &eNOS 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 March 17, 1967 Most market indicators moved forward into new high territory for 1967 during the past week. The Dow-JOnes Industrials rested on the first two days of trading after the as- tounding performance of last Friday when almost 15, ODD, 000 shares changed hands, a large part of the volume coming in the early morning advance. On Wednesday and Thursday, how- ever, broad rallies took place and in the process a new intra-day high of 876. 50 was reach- ed. The current move, of course, constitutes the second attempt on the part of the Average to move into the overhead supply area at 860-900, which turned back the advance in early F ebruary '.-' . . . The Dow, of course, is the only major average that has not yet successfully breached this supply. The Standard & Poor's 500-Stock Index, for example, has comparable supply in the 84-88 area, and Thursday's high was 90.66. Other indices, such as the Standard & Poor's 425 Industrials and the Dow-Jones Rails, have all successfully breached the overhead supply areas. Actually, it is interesting to compare the action of the Standard & Poor's 500 with that of the Dow Industrials. Tpe 1966 high on the former index was 94.72, and the 1966 low 72.28, for a loss of 22.44 points. At the Thursday high it had recovered 18.38 points or 82/0 of the loss. If the Dow had recovered 820/0 of the 265 points it lost between February and October, it would now be at 952. What all this reflects, of course, is the fact that the stocks which com- prise the Dow have rebounded somewhat less, so far, than a e majority of issues. There is, however, some evidence that this too may c in, it proved relative action on the part of a number of better quality issu w. e possibility of higher quality leadership at this point, it seems to us, is a a further extension of the uptrend, it is );t11 we are willing to postulate leadership must come from somewhere. F-ul'thel'more, – only after forming broad ranges before starting their advance. It thus becomes logical to look essentially, moved side 'Ii e on the part of a great many issues that, tr ing ranges during 1962-66. A shift in k new groups would be entirely consistent with a pat- tern that had obtaine he eleven years. Ever since 1956, we have had markets in which some groups wer ng-term uptrends and others in long-term downtrends all at the same time. We ha ong felt that this pattern would continue for the foreseeable future. Another argument for leadership on the part of blue chip stocks is the fact that it is in this area where the decline in price earnings ratios since 1961 has been most marked. This, of course, is a process which must ultimately reverse itself. In line with this thinking, we are adding a number of stocks to our recommended list, effective this week Colgate-PalmOlive (29 3/4), Continental Insurance (79 3/8), Continental Oil (68 3/4) and Phillips Petroleum (55) have all to date been relatively neglected high- quality issues. All have attractive technical patterns and are being added to the Quality & Long-Term Growth section of our Recommended List. In addition, we are adding Adams- Millis (22), Commonwealth Oil Refining (26 3/8), Dresser (32 1/2), Great Northern Paper (37 3/4), Mead Johnson (29 1/2) and- Tektronix, Inc. (40 1/8) to the Price Appreciation sec- tion of our Recommended List. To the Speculative Price Appreciation section of the Recom mended List we are adding Syntex (93 1/ 8), are including it in this section largely due to the stock's high price in relation to earnings and its characteristic high volatility. We nonetheless feel that the attractive technical pattern, plus good prospects for earnings gain in the years ahead, make it worthy for consideration in high risk accounts. All of the above issues will be reviewed in subsequent issues of this letter. Dow-Jone sInd. – 869.77 Dow-Jones Rails – 235.17 ANTHONY W. TABELL WALSTON & CO. INC. AWTamb This market letter Is published for your convenience and mformation Rnd Is not an offer to sell or R lIOI.ieitation to buy any aKtlrlties dl5eUllaed. The In formation emDIoTeeIJ W88 may obtained from 80urces we believe to be reliable, but bave 8n lnteralt 112 or pUl'chase and sell the securIties rweeferdroedntoot guarantee herein. Its accuracy. Wallton & Co., Ine. and its officers,. dlrectol'8 or —

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Tabell’s Market Letter – March 23, 1967

Tabell’s Market Letter – March 23, 1967

Tabell's Market Letter - March 23, 1967
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W—a-lIsntocn.-&–C-o-. MUNICIPAL BONOS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodify Exchange. TABELL'S MARKET LETTER OFFICES CO..,5T TO COA.ST AND OVERSEAS March 23, 1967 COMMONWEALTH OIL REFINING COMPANY, INC. Current Price Current Dividend Current Yield 27 1/4 0.60 2. 3 The industrialization of Puerto Rico has become fact. To be sure, there are only two or three countries in the world today that can Long Term Debt Common Stock match the island's high rate of economic growt 29,500,000 and the island now has a higher per capita in- 11,823, 175 shs. – – — comenhan any Latin American country, 'ex- . Sales 1967-E Sales 1966 185,000,000 161,000,000 ceeding even Venezuela with its vast oil and iron ore wealth. All this has meant a higher standard of living for the island's inhabitants Earn. Per Sh.1967-E 2.15-2.25 Earn. Per Sh.1966 1. 69 and the increase in consumer purchasing powe it implies. One of the major beneficiaries of this Mkt. Range 1966-67 273/4 – 163/8 rapidly increasing consumer demand is Commonwealth Oil Refining Company. Although the company does not market at retail, it sells to large marketers and through them supplies between two-thirds and three-fourths of the island's entire petroleum requirements. Since Commonwealth produces more than is needed on the island, the excess is sold on the U. S. mainland or to foreign nations. Primary refined products include motor and avia i n ne jet fuel, kerosene diesel and fuel oils. Petrochemicals are Commonwealth's key to p – bil' . The oompany operates the world's largest aromatic petrochemical ent expansion of production facilities has'been completed;, there . rablecupg-I'a-ding-of-refine!'Youtput. Capital expenditures to permit nsion approximated 13 million in 1966 and should rise to about i1 competition in this area has been intensified by the buildi 0 h i e leum's petrochemical plant, due for completion later this year, mo t o e s output is under long-term contract or is going to plants owned by sub e r – hich the company has an interest. Thus, there will be little direct competiti lllips. Gulf Oil already has a refinery on the island and Texaco has announced to build one of its own. However, as in the case of the Phillips plant, most of the pro ction is slated to be sent to the U. S. mainland, and to the Texaco service stations now on the island currently being supplied by Commonwealth. The company has made it known that the volume of gasoline now going to these dealers can be directed elsewhere when the Texaco refinery is completed, which is not expected prior to 1969 or 1970. The rapid increase in demand for petroleum products on the island has resulted in a sharp gain in both revenues and earnings. Compared with only 90 million in 1961, sales last year rose to 161 million and are expected to expand to around 185 million this year. Earnings have risen from only 91 a share in 1963 to,1. 69 last year and are being estimate at between 2.15 and 2.25 thisyear. This could result in another dividend increase some- time during the coming twelve' months.- The record of recent years has benefited from an exclusion from Puerto Rican income and property taxes, Iiloowever, starting this year, about one-third of refinery income will be taxable with the remaining income not subject to taxes until 1970. Industry specialists have projected an earnings growth rate of about 10 annuall through 1970, on a fully taxed basis. In view of this impressive outlook, these shares are deemed to have considerable capital appreciation potential and last week were added to the Price Appreciation section of our Recommended List. From the technical point of view, the base that has been building since early last year has created an area of firm support around the 22 -20 level. There is no overhead sup- ply and our longer-term price objective remains in the 44-46 area. Dow-Jones Ind. 876.67 HARRY W. LAUBSCHER for ANTHONY W. TABELL Dow-Jones Rails 233.33 WALSTON & CO. INC. AW.T'HHrT 'amb ThIB market letter Is publlhed for your coftv.enlenee and mfOrtnRUOn find is flot an offer to sell or a aollcitatlon to buy Ilny lM!eurltlea dlseuaaecl. The In- formation employees was May obtalnd from source!! 'e beheve to be reliable. but have an Interest In or pUl'chase and sell the 8(curltlel! rweeferdroedntoot guarantee herein its o.ccurney. Walston & Co., Inc. and its officers. directors or WN&ol – – –

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Tabell’s Market Letter – March 30, 1967

Tabell’s Market Letter – March 30, 1967

Tabell's Market Letter - March 30, 1967
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Walston & Co. Inc MUNICIPAL BONDS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OFFICES COAST TO COAST AND OVERSEAS TABELl'S LIST March 30, 1967 This edition of our R e c1o1. mtom! end e;d.t Lis't.g;i)ves lopg-termJ te'c. hnical upside objectives, plus indicated support levels or shorter In all cases we believe the stock would be attractive for purchase at the levels given in the support column. An asterisk in the Upside Objective column indicates that either the objective is unclear, or that the stock has not yet broken 'out of its,base formation' ;I .' ' ,t I., '.', 1,.. . ) ,….t) Q' f .. J I' , .. QUALITY & LONG TERM — –,,-….,..- Sup—-. . – 3/29/67 Obj. port n I Of GROWTH ''''''', – 'CrOSe3/29/67 J.!L …. .. t Obj. port Alum.Co.Amer. 85 1/4 B 110-130 74-72 Gulf Oil 62 1/4 A 78-92 58-56 Amer. Can 543/8 Bl.1'q66;.72 . 48c46 . Jnt.Paper ..,,, )128 1/8fA- .. ll 28-26 Arne r. T.& T .' 60.1f.2 l. A, 56-54, 943/4 A 1r, .. Colgate Palm. 30 1/8 A- 41-52 28-26 Parke Davis 30 !i,, A-', 88-84 28-26 Columbia Broad. 681/8 A . ,78;,84,68-66 , Pqillips, Pete 58 ..88-120 52-50 Cont'l Ins. 78 – 88-100 74-70 Reynolds Tob.40 1/2 A ,,,74 37-35 Cont'IOil , . 32. /8 A4 ,,,69;-67,, tJ Goodyear Tire 46 A 68-82 44-42 .'!88 .J… 32 '- I …. ' I'.. J rIa 10 .. . 1 Close. 3/29/67 . Q…u!!aLl- Adams-Millis 251/2 B Air Reduction 82 A- PR.. IC 4V E APPRECIATION '. ' .. .upside Sup- , , ..1'. Close Qual- , Upside Obj.)'port ;. -3/29/67 32', 20-17 '.,IlLCentraUldh 9415/8' B 1114',' 93-110 74-70 Kelsey-Hayes 30 3/4 B 42-53 Support 85-80 30-27 Allegheny Lud. ,,65,1/4 A .102 ,.56-54. ,Isoppers .J ,,49-621 Amer.Potash 36. 7/8,,r, B' ,48-60 34-32 r McDermott;J.R. 1'B,j , 102, 13Aenciih&orHHowocekl.l 511/4 A 70 68 – – A- 78 47-42 Mead Johnson 281/4'. B 60 Trust 12 374— – – 28-25 76-72 28-24 .-' Cenco Instrum, .54/4 .. B, 48744 ,. ,\'42.1/41'–.' VTh.. 47 – 52 , 37-35 Cinn. Milling, .,..49 ''I.'';, 'B .59-64, 38-36 ,Olin Mathieson 68 1/4,'B., 80-130 62-.56 Clevite Corp. 483/8 B 46-44 Revlon 627/8 A-I… -52-48 Commonw'thOil 261/2 – 43-47 22-20 Reynolds Met. 533/4 B 94 48-46 Comsat '', 601/4 ;,;. ,.,70-102 60-55. ,Riegel Paper CopperweldSteeI27.7/8 B. '40-52,\26-25 Robt,Controls 34.. DenverR.G. 195/8 B 17 Schlumberger 53 Ba'l 34 I' 58 A 74 17-14 30-28 48-44 Disney, W.alt, , 89.,. ''',.1 B 100 ,. .Sharm 52070, Dresser Ind… 32 5/8 'l,B! 58., ,,,30 \ Shell .661/8 A,.lr 75-120 Eagle Picher 32 B 54 30-28 'Signode)Corp 35 1/4.A- . 50 .. , 38-36 62-60 31-28 Eaton Yale T 28 5/8 B 35-49 26-25 Southern Rwy 54 1/4 B .EI Paso ..t.,G, 18 Ex-Cell-O ,. 58 ,,,,BIt.., 90 .18 .' ,.Sunds!rard . w, ,54-50 ,Tektronix. 45 -, Gen'l Dynamics 587/8 .t.-.' -56-,52'. Union Camp ) r ' ,B, Gillette 50 1/4 A- 80 44-40 United Fruit 34 B 531' .72 ,. 92—, 44-7Q 48-44 40-38 36-34 40-38 30 Gt.North.Paper 383/8 , B, .37.;35 34-32 SPECUL'ATIVE- PRICE APPRECIATION , ., C't. losIfe. t'Qu1 a,,,l-1..dh')Uptns!ide .. S.U,….pj–'\tY ,'t'nt-r 3/29/67 Obj. port fto,tt.1'L Close ,1Q…u;a\l.-, ,Upslkdl e 3/29/67 ity Obj. Amer. Bosch .373/4. ,46,, Camp. Chib. 61/8, .. .. .,,5 'r, c. Chris-Craft 327/8 B- 39-46 30-27 Home Oil fA,,, 18 3/4, ,,', ', ,,, ,1f' Microwave', . ..251'!.f . B., .,'10 1, National Cim 33 B 52 . 27 -25 .. ,Syntexm ,.188'1/4- ,; UMC Ind. 18 1/4 B Assoc3.5.1/BrB -'152' 46 ralll I.v, ,;J, , . , Support 80-70 17-15 33-30 20-18 This Bulletin Is published for )Our convenH'nt'1.' and mfol m,\tion ,J,nll IS not un ofT('r to ,ell or a solicitation to 11U) any secuntws dlscu'i'led The mrormatlOn was obtamed from bourcl.'' we bl.'lil.'vl.' to 1,, H.lllible, Lut WI.' lin not KUlllllnt Its .\C(UI,J,CY W.lhton Cn, Inc .lntl It offif'l.'r'l, Ollcciors or employees may have 8n mterest In or purchn….. 11m) -.ell the S('lUrltH'S n,h'llt..) to hl.'rt'ln WN-916

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Tabell’s Market Letter – March 31, 1967

Tabell’s Market Letter – March 31, 1967

Tabell's Market Letter - March 31, 1967
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W—a-lIsntocn.-&-C–o-. MUNICIPAL BONOS UNDERWRITERS MUTUAL FUNDS Membe New York Stock Exchange and Other Principal Stock and Commodity Exchange. OFFICES Co..,ST TO COAST AND 'OVERSEAS TABELL'S MARKET LETTER March 31, 1967 TEKTRONIX, INC. Current Price 39 Happiness is a thing called an.oscilloscope. Current Dividend nil At least it has meant a great deal of happiness to Current Yield nil the shareholders of Tektronix, Inc., the leading Long- Term Debt Common Stock 432,000 7, 954, 000 shs. producer of these precision instruments, since the shares first were offered to the public in 1963. As everyone knows, an oscilloscope is a Sales1967–E Sales-1966 130,000,000. 101,700,000 Earn. Per Sh. 1967-E Earn. Per Sh. 1966 1. 75 1. 38 graphof electrical eve;'t 'on the screen of a cathode ray tube. Not only are these highly sophisticated instruments used in many basic industries, such as TV broadcasting. stations, repair shops, re- Mkt. Range 1966-67 441/4-241/8 search labs and missile monitoring centers, but they are becoming increasingly associated with color television and computers, two of the fastest growing sectors of our economy. The company derives the largest percentage of its sales from the computer industry which is expected to expand at a 200/0 annual rate through 1970. The total market for oscilloscopes also is growing at an annual rate of 200/0, and Tek tronix accounts for some 700/0 of this overall market. Sales in fiscal 1966 broke down as follows domestic sales, 750/0, international, 250/0. proximately 260/0 of domestic volume. Overseas operation r accounted for apu8ed in 36 countries and are carried on in such important areas as the a ke eat Britain and Japan where the company operates a Jointlyowned enterpr ith n orp. There are approxi- mately 2500 customers, none of which or t 60/0 of total revenues. In ad- dition to the more than 40 different models . lose manufactured, more than 60 ,- as-pulse'generators'and'-amplifiers-, are produced. Operations of its own component parts as the company prefers to produce as man to maintain the high standard of quality and technical fo science of the art a -' tents are known. Realizing that advanCing the t . s line of work, Tektronix employs about 110/0 of total employees in resea d e pment work and applies a full 100/0 of total revenues toward R&D work. Much of the co ny's success can be attributed to its IBM-like program of pro- viding customers witli excellent field maintenance. This direct factory-customer relation- ship, made possible through a strong field force, enables the company to serve the present and future needs of its customers and is an important factor in maintaining the high degree of profitability enjoyed. This profitability has enabled TEK to expand production facilities to meet anticipated near-term den;and at only a small increase in long-term debt. Sales and earnings continue to rise rapidly. Third quarter results show sales up to 122.6 million, from 95.5 million a year earlier and earnings at 1. 21 a share, vs. 99 for the year earlier period. For the full fiscal year ending May 31, 1967, sales are pro- jected to around 130 million, up from 101. 7 million last year, and earnings are estimated at near 1. 75 a share, compared.withJ. 38)nJJ!3cal 1966. No being paid or are likely to be paid in the foreseeable future. Management controls approximately 550/0 of total outstanding stock. Technically, the issue has formed a large base in the broad 36-32 area, indicating an initial price objective of 63 followed by a longer term upside objective of 72. The stock recently broke out of this trading area at 38 on the upside. With strong support present in the mid-thirty area, limiting downside risk, we continue to feel purchases can be Jusfified on minor weakness. This issue was added to the Price Appreciation portion of the Recom- mended List on March 17,1967, and again is recommended for purchase. A new edition of our Recommended List will be in the hands of your Account Executive early next week. Dow-Jones Ind. 865.98 Dow-Jones Rails 230.59 HARRY W. LAUBSCHER for ANTHONY W. TABELL WALSTON & CO. INC. A WT HWLamb Thil market letter is published for your convenience and mformation and Is not an offer to sell or a soilCIt.a.tion to huy any &eC!unties dillcussed. The Information was obtained from 80urces we believe to be reliable. but we do not guarantee Its nccufacy, Walston & Co., Inc. and Its officers, dlreetorll or emploYeeB may bave an Interest in or purchase and sell the seeurltles referred to herelll.

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