Tabell’s Market Letter – March 08, 1968

Tabell’s Market Letter – March 08, 1968

Tabell's Market Letter - March 08, 1968
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– Walston &Co, —–Inc —– M.mb…. N.w York Stock Exchang. and Other Principal Stock and Commodity Exchang OVER 100 OFfICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER March 8, 1968 In like a bear and out like a bull could be the action for March 1968. Many of our downside price objectives were reached during the recent selling waves and technical indi- cators have signaled a deeply oversold condition. With the odds now favoring an intermediate recovery, there is a short-term bottom that could support a rally into the overhanging suppl zone around 850-880 Dow-Jones Industrials. ELECTRONIC SPECIALTY COMPANY Current Price Current Dfvidend Current Yield 27 -nil nil – .. Long-Term Debt Conv. Pfd. Stock Common Stock 20,900,000 15,860 shs. 1,780,524 shs. Sales-1968-E Sales-1967-E 125,000,000 115,000,000 Earn. Per Sh. 1968-E 1. 80 Earn. Per Sh.1967-E 1. 50 Mkt.Range 1968-67 333/4 -191/8 Combme imagination and aggressive man- a g e m e r t .. pfl.rticipationin the fastest growing areas of technology and you come up with Electronic Specialty Company. A far cry from the old Iron Fireman Company that formed much of the basis of the current corporation, ELS today represents an mtri- guing vehicle for investor representation m electronics, environmental control or space conditioning, structural and mechanical sys- tems and components, and power generation and conversion. One of the earlier conglomerates, in act- ion if not in grown almost entirely through acquisition. Since 1955, the five companies added to the ELS family. As a in 1955 to an estimated 115 million in 1967. During Specialty has h 0 less than.twenty- ose m around 2 million t' period, earnings rose from a deficit to a peak level of 1. 91 a now a thing of the past, earnings 96 it costly reorganization program .m e future are bright and results a-snare froln the-1. 50 esti- The company's encou . are enhanced by a number of developments. These include the d ; i0v er ew products and processes applicable to the aero- space and aircraft . e ese is a super-strength aluminum alloy for use in casting aluminum. . n m a lays an important role in ELS' s future. Company has an- nounced plans to build fa' y capable of producing 1,000, 000 pounds of titanium castings annually. Titanium is ected to prove a vital part of the U. S. supersonic transport progra Although defense sales continue to increase, commercial and industrial revenues are expanding at a more rapid rate and already constitute almost 600/0 of total sales. Sales break down along the following lines' electronic components, 400/0; space conditioning, 270/0; structural and mechanical components, 250/0; power facilities, 80/0. In view of the impressive prospects inherent in the construction industry, ELS's Space Conditioning division is expected to be a big contributor to income in the foreseeable future. This division produces central heating and air conditioning units and related items. Residential and commercial sales are about equal and new construction accounts for a major portion of business. As a result of its breakthroughs in the field of solid state controls, ELS has been able to design heating and cooling equipment controls to replace bulky mechanical controls, yielding striking advantages in safety, dependability, maintenance, -installation and costs. Other areas of research and development activity include plastics technology, air pollution and smog control, miniature heating systems, forging processes to eliminate stress concentration and stress corrosion problems, labor-saving devices and materials technology. included in the long-term debt are debentures convertible into common stock at 32.50 a share. Conversion of all debentures and preferred stock would result in a dilution factor approximating 270/0. Management holds 110/0 of outstanding common. From the technical view, there is a base in the area providing considerable support and enabling the projection of a price goal in the 37-39 range, followed by a higher one at 72. Recently added to the Speculative Price AppreCiation section of our Recommended List, these shares again are recommended for purchase at prevailing market levels. Dow-Jones Ind. 835.24 Dow-Jones Rails 215 14 HARRY W. LAUBSCHER for ANTHONY W. TABELL WALSTON & CO. INC. Thla market letter 18 published for your convemence and Informat1On nnd IS not an olTel to sell or a soliCitation to buy any securities diSCUSsed Th In;formation was. obtained from sources we believe to be reliable. but we do not g\ll\rantee its accuracy, Walston & Co-. Inc. and Ill! officers dlrecto have an Interest In or pUFchase and sell the seeurttu's referred to heLem. 80 AWTtiwLamb WNSOI

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