Tabell’s Market Letter – October 27, 1967

Tabell’s Market Letter – October 27, 1967

Tabell's Market Letter - October 27, 1967
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&-Walston lnc. Co. MUNICIPAL BONDS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges TABELL'S MARKET LETTER OFFICES COAST TO COAST AND OVERSEAS October 27, 1967 The reactionary trend in the market continued throughout last week, interspersed with a rally on Thursday, and contrapuntal strength in a large number of issues, notably glamor stocks, throughout the week. Presently, positive and negative forces appear to be about in balance. On the positive side, all of our shorter term oscillators reached oversold territory and rebounded sharply toward the end of the' week. This action is normally considered evi- dence of a short-term trend reversal. On the other hand, the probable downside target for th Dow Industrials remains modestly below current levels at 870-865. Moreover, the quality of the present leadership, to put it mildly, leaves something to be desired, as witness the Satur nalia currently taking the AmericanSto-ckExchange. — – – — On balance, however, we continue to feel that purchases of issues representing good fundamental and technical values at prevailing prices should work out well. One such issue is reviewed below. DENTISTS' SUPPLY COMPANY OF NEW YORK Current Price Current Dividend Current Yield Long-Term Debt Common Stock 43 1. 45 3. 4lo 485,118, 1,917,506 shs. Despite the gains that have been made among younger people in dental health, a relatively large portion of the public continues to be in need of ex- tensive dental treatment. The need for additional dentists throughout the country certainly substan- Sales-1967-E Sales-1966 60, 000, 000 54,210,000 teinadteisn tshiigsh, tantod th h r . woultdhiaspbpoedaer stowbeell nfoor those len ering to the needs of Earn. Per Sh. 1967-E 2.55 dentists t y serve. Earn. Per Sh. 1966 2.32 With pIe now able to afford the Mkt. Range 1967-66 43 3/4-24 —- — , dental insurance programs, the del s, or artificial teeth, due to -incomes-and-various types of heilth has soared in recent years. Dentists' Supply Company of New York g of artificial teeth and as such is ex pected to t b e i 20 ' The company' s . e icmry of the trend toward increased consumption. Gucer of high-speed dental drills, waxes, porcelain and other dental sup k urrler the name Trubyte, artificial teeth account for approxima tely 27lo of I . The production of ethical dental supplies and the resale of supplies and equipment uced by others account for about 65lo. The remainder derives from various types of ental equipment, among which is the Cavitron Ultrasonic Dental Unit, a device for cleaning tooth surfaces ultrasonically and for the filling of cavities. Earnings, which have been in an uninterrupted uptrend since 1961, are expected to reach a new peak around 2. 55 a share this year, compared with 2. 32 for 1966, on sales cur rently prOjected to 60 million, vs. 54 million last year. Although foreign sales are not likely to show much improvement over those of 1966, margins could benefit from the pros- pective increase in overall volume and greater operating efficienCies, especially in the areas of accounting and inventory control. The usual year-end extra dividend has been set at a share, bringing the full-1967 total payout to 1.45 a share. Under the anti-trust suit brought against the company, divestiture probably will have to be made of two divisions' accounting for approxlInately-27' million insales. However;'purchas of these companies was made primarily for their manufacturing facilities, which will be still owned and operated after settlement of the case. The retail operations to be sold .actually were providing an unfavorable profit margin, and management feels that the funds derived from thelorced sale can be better and more profitably employed elsewhere. From the technical view, the substantial base that has been building for several years indicates a price objective of 61. There is support at 39-36. Being added to our Recommende List, these shares are recommended for purchase at current levels. , Dow-Jones Ind. 888.18 Dow-Jones Rails 243. 07 HARRY W. LAUBSCHER for ANTHONY W. TABELL WALSTON & CO. INC. AWT HWLamb Tbta market Jetter fa published for your convenience and information fLnd Is not an offer to sell or a aoIlelta.tlon to buy any aeeurltiee dlaeusaed The In formatlon mWAuA obtained from IIOUl'Ceft we believe to be reliable. but have an Intere.t In or pupehase and Bell the Reuntles rweeferdroedntoot hgeUret\irna.ntee Its accuracy. Wa1ston & Co Inc. and its oftlcers. dir'ecton . 0; .r

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