Viewing Month: May 1968

Tabell’s Market Letter – May 03, 1968

Tabell’s Market Letter – May 03, 1968

Tabell's Market Letter - May 03, 1968
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W—a-lslntocn.&–C-o-. Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER May 3, 1968 The thought has often been expressed by various writers that the study of the stock market action is, albeit indirectly, the study of human psychology. It is, of course, the study of man's behavior as a group, rather than individually, but, en masse, the collectivity of investors who cause the day to day fluctuations on securities exchanges displays a great many typical human emotions, hope, greed and fear being among the most common. Still another emotional trait which the stock market seems capable of exhibiting, especially latel is the conditioned reflex. It is now necessary only to breathe the magic word peace and we are, once more, off to the races. This trait was exhibited on Friday morning as Hanoi'.s acceptance of Paris as a peace-talksite sparked an eleven-point rally-in the Dow. It was, of course, doubtful, conSidering the short-term overbought condition of the market, whether a major rally was, in fact, sustainable, and this one, indeed, was not — almost all of the gains having been given up shortly before the close. Nonetheless, the Dow was able to show a small plus sign for the day. The rally, which capped a string of ten successive advancing days and brought the Dow to an intra-day high of 935.68 was not,however, without its significance. During Friday' trading the Dow moved decisively out of the trading range between, roughly, 825 and 915, in which it had held since the Fall of 1967. This area must now be presumed to be an interme- diate-term base with possible upside objectives centered around the area of 980. Parallel action took place in the Dow-Jones Rails with the upside objective for the carriers approxi- mately in the 256-261 range as opposed to Friday's close of 240,46. Thus, while short- term vulnerability has perhaps been moderately fies, it seems to us, an improved intermediate-term inve Blarket strength signi- Our Recommended List has, over recent m er large and there are a number of issles which we shall probably add 0 e list any short-term weakness that takes place. We are, therefore, taking st gth as an opportunity to remove thirteen issues from the list. A few f th e 0 sub tial profits from the time of reco mendation; while OfKersshow 'n these 'latter- cases, questiona15leriear term technical action makes switch into other issues n the's vm consideration to accept these losses and re immediate attraction. We have tabulated be- low the price perfor n 's eing removed since December 31, 1964, the base date for our Reco rds, showing their percentage change since that time versus the performa eft ow. There were 158 recommendations made over the perio Of these, 110 have adva and 48 declined. A complete performance record of the list is available from yo alston Account Executive, and an up-to-date copy of the list, to- gether with current comments, will be available early next week, Obviously, no implication is made that such results could be obtained by purchase of issues in the Recommended List, or that similar results will be obtained by purchase in the future. Commissions are not included. Stock List Date Price Current Recom. Recom. Price Change DJIA Change Same Time Perio Ampex Anaconda Columbia Br. Eaton, Yale Shell Oil Price Apprec. Price Apprec. Quality L. T. Price Apprec. Price Apprec. 6/30/67 36 1/8 9/8/67 493/8 11/18/66 57 12/31/64 21 12/31/64 -591/2 32 1/4 45 1/8 58 5/8 33 1/4 67 1/4 -11 9 3 -54 '1–13 7 1 14 5 – 5—— Signode Corp. Price Apprec. 12/31/64 27 1/4 37 36 5 Scoville Mfg. Price Apprec. Syntex Speculative Tektronix Price Apprec. United Fruit Price Apprec. Vulcan Mat. Speculative Varian Assoc. Speculative Wallace & T. Price Apprec. adjusted. Dow-Jones Ind. 919. 21 Dow-Jones Rails 240.46 5/5/67 42 3/17/67 93 1/8 3/17/67 401/8 12/31/64 175/8 12/31/64 173/8 12/31/64 13 40 75 47 1/4 58 217/8 27 5 – 21 18 229 26 108 8/2/65 32 36 5/8 AVERAGE 14 35 ANTHONY W. TABELL WALSTON & CO. INC. 1 6 6 5 5 5 4 5 Thill market letter Is published for your convemence and informat1On Rl'ld IS not an offer to sell or 1\ 8ohcltatlon to buy Rny secUritIes l,lLscus8ed, The m. A formAtion was obtained from BOurces we beheve to be rehabl but we do not guarantee Its have an interest In or purchase and sell the seeurltlcs referred to herein Walston & Co Inc. and Its officers. directors or ……. WNBOI

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Tabell’s Market Letter – May 09, 1968

Tabell’s Market Letter – May 09, 1968

Tabell's Market Letter - May 09, 1968
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—- Walston &Co. Inc ————.'1 I Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAST TO COAST ND OVERSEAS TABEll'S RECOMMENDED LIST May 9, 1968 This edition of our Recommended List gives long-term technical upside objectives, plus indicated support levels or shorter-term downside objectives. 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. Close Alum.Co.Amer.713/4 Amerada 82 1/2 Amer. T & T 495/8 Borden Co 31 3/4 Caterpillar T 407/8 Colgate Palm. 451/2 Cont'l Ins. 82 1/2 Cont'IOil 65 1/8 Del Monte 31 Fed.Dept. S. 81 1/8 Goodyear T 53 1/2 QUALITY & LONG TERM GROWTH Qual- Upside Sup- Close B 72-66 Gulf Oil 77 A 110 A 80-76 Intern'l Paper 31 1/4 46-44 Kellogg Co. ' 43 1/4 A 60 30-28 Lorillard 48 1/8 A 59-68 40-37 Nat'l Cash R 1393/4 A- 52 41-38 Nat' Dairy 41 7/8 108 80 Parke Davis 301/4 A 86-130 64-62 Phillips Pete 573/4 A 60 30 Radio Corp. 53 A 90-124 74-68 Reynolds Tob. 42 1/2 A 82 44-42 Royal Dutch 48 3/8 Qual- Upside Sup- –p;– 78-92 73-67 A- 28-26 A 63-82 40-36 A- 98 48-44 A 150-190 130-120 A 66-72 38 A 50 26 A 86-120 56-48 A- 76-98 50-46 A 74-124 38 A 53-79 43-38 PRICE APPRECIATION Adams Millis 26 1/8 B 37 23 Gen'l Dynamics 55 1/4 – Air Reduction 30 5/8 A- 55-70 28-24 Gillette Co 57 1/2 A- Allegheny Lud. 62 A- 102 60-54 Great No. Paper 55 1/4 B Amer. Bakeries 275/8 B 44-59 27-24 Koppers Co. 36 1/4 B Amer.Machr203/8 B 36-56- 2ifg- McNell – 49- B Anchor Hock. 47 3/8 A 70-90 40 Medusa Port.C. 39 A- Arvin Ind. 32 3/8 B 46 30-27 Mesabi Trust 111/4- Bulova Watch 32 1/8 B 50-60 26 Olin Mathieson 357/8 B Burlington Ind. 45 1/2 B 76 43-37 Republic Steel 423/8 B Canada Dry 37 3/4 A- 44-60 35 Revlon 87 3/4 A- Chic. Mus. Inst. 30 B 65 Commonw'th Oil 23 1/4 – 46 23 Reynolds Met. 43 1/2 B 23-20 Reigel Paper 25 B Comsat 63 1/4 104 57-54 Robt.Controls 51 7/8 B Copperweld Steel 25 3/4 B 50-68 24-20 Schlumberger 94 5/8 A Dentist's Supply39 1/2 B 58 36 Seaboard C. L. 46 3/4 B Diners Club 53 1/4 B 57 40 Sharon Steel 38 3/4 B- Dresser Ind. 38 B 57 35 Squibb-Beech N 41 5/8 A Eagle Picher 26 B 30 23 Union Camp 40 5/8 B First Charter 31 48-58 28-24 Vornado 24 3/4 – 92 80-88 62-90 62 62 46 27 60-100 70-106 100 53-94 34-42 58 110 84-96 52-70 80 92 46 51-47 54 52-46 35 44–c– 30 12 35 38 74 41-39 22 41 74-68 44-40 34 36 36 25-20 SPECULATIVE PRICE APPRECIATION Allied Superirikts. 16 3/4 R- 33 Amer. Motors 11 3/4 B 30-35 Amer. Photocopy 18 B 36 Camp. Chib. 8 3/8 16 Chris-Craft 35 B 46-68 Electron. Spec. 33 1/2 B 72 Gibraltar Fin. 29 3/4 – 59 Home Oil A 24 3/4 B 34 16 11-9 14 8 32 27 28 24-22 Macke Vend. Microwave National Can Pacific Pete. Penn- Central Technicolor UMC Indust. Victoreen 21 1/8 30 1/2 43 18 1/2 76 27 1/8 21 3/4 14 5/8 B B B B BB B C 40 50 52 30 104 58 58 20-38 19 28-26 35 16-14 70 24-20 20-17 14-12 Anthony W. Tabell Walston & Co. Inc. This BulleUn IS pubhshed for your convenunee Rnd Informallon Hnd IS nol an offer to or R soliCitatIOn to buy any securities diSCussed. The Informallon was obtamed from sources we bchtve to 1M; reliable. but we do not gtlRrantt.'e Its accuracy. Walston & Co Inc Rnd Its officers. directors or employees may have an mterest an or purchase Rnd bell the referred to herem. WN-916

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Tabell’s Market Letter – May 10, 1968

Tabell’s Market Letter – May 10, 1968

Tabell's Market Letter - May 10, 1968
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Walston &Co. Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER May 10, 1968 The stock market continues to display a great deal of vitality. Heavily overbought as long as three weeks ago, it has persistently refused to decline and, instead, rotational action continues, accompanied by good overall breadth. It is our continued feeling that the intermediate-term outlook has improved, and we would use any periods of short-term weakness over the next few weeks to commit reserves to well-chosen equities such as the following. Current Price Current Dividend Current Yield Long Term Debt 3.50 Cum. Pfd. Stk. Common Stock -COLGATE-PALMOLIVE COMPANY …. …… 45 5/8 New product innovation and introduction 1. 10 have been the keys to Colgate's long history 2.4 of successes and, operating as the company does within the confines of one of industry's 28.4 million most competitive areas, these are likely to 125,000 shs. remain important to the trend of profitability. 14,747,778 shs. This year is likely to witness further prog Sales-1968 Est. Sales-1967 1. 1 billion 1. 02 billion ress in the product-introduction area as the company gears up to attempt an important Earn. Per Sh. 1968-Est. 2 50 E arn. P er Sh. 1967 2' 23 . Mkt. Range 1967-1968 26 7/8 – 457/8 penetration into the shampoo market. While it Pfijis a relatively important factor in the shampo area, its maintained by heavy pro ion lYs. Coming up with a real. winner in this area could improve this division'j!(t)vex c n net mcome. \YPo n to company-wide Ultra-Brite is Colgate's latest Ultra-Brite is a whitener-type toothpaste tha market,. estimate.d by the company at he arket. Introduced in 1967, a ed nificant portion of the overall o. . e same -time, .however, – Colgate Dental Cream, the mains a highly important earni s t not significantly cannibalized and re. Other c e ergents such as Cold Power, Fab, Super Suds and the Aj ax line. Pa I s a ere Bouquet soap and talc, Baggies, Colgate 100 mouthwash, Handy' 0 Lustre-Creme shampoos, Wildroot Hairdressing and the 007 line of men's toile ie e other items of importance. In the drug line, Colgate's ethi- cal products include it for the treatment of mental depression, asthma, heart and gastro intestinal disorders. mong proprietary products are such well-known names as Dermassag Cong e staid and Tackle. In recent years, results have reflected the more aggressive outlook taken by manag ment. Prior to the early 1960' s, profits remained in a plateau between 1. 66 a share and 1. 07. Since breaking out of this restrictive area in 1965, earnings have made favorable progress, advancing at a rate approximating 10 annually. Despite devaluations overseas last year, net rose to a record high of 2. 23 a share, vs. 2.01 the previous year. In the current year, income is anticipated to record another peak around the 2.50 a share level. This also strongly suggests that the conservative dividend payout rate, currently set at 271/2 quarterly, may be increased. Foreign operations continue to increase in'importance. The companynow operates in 42 countries with many others covered by sales agents. It is believed that sales derived from non-domestic sources account for almost 60 of total revenues and between 85 and 90 of earnings. This should prove important to the company's long-term prospects as nations overseas accelerate their upward trending living standards. Technically, Colgate's chart pattern is most impressive. Since bottoming out in 1966, an ascending triangle has been constructed with an area of accumulation and support strongly evident in the 44-40 area. This base indicates a price objective in the 58 area, initially. Currently on our Recommended List, these shares are recommended for purchase at prevailing market levels by investment-oriented accounts. Dow-Jones Ind. 912,91 Dow-Jones Rails 241. 79 HARRY W. LAUBSCHER for ANTHONY W. TABELL WALSTON & CO. INC. AWTHWLamb Thill market letter is published for your convemence and InfOMnlltlon And Is not nn offer to sell or a solICitation to buy any secUrities diSCUSsed. The m. formation was obtained from 8Ouree8 we beheve to be rchable, but we do not guRI'antt' ' its accuran Walston & Co., Inc. and Its officers, directors or emDlo),ees may have an interest In or llurchase and sell the SeCUTlllCq referred to h('tcm. ,

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Tabell’s Market Letter – May 17, 1968

Tabell’s Market Letter – May 17, 1968

Tabell's Market Letter - May 17, 1968
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– -. Walston &Co. – – – – Inc. ;,…;…….;;….;;- FI L e Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER May 17, 1968 The Commerce Department report for the first quarter reveals that 1968 could be a strongly consumer-oriented year. The rate of consumer spending has been stepped up as suggested by the lower rate of disposable income going into savings accounts. In our opinion, one of the industries most likely to benefit from this 11 spending spree is textiles. This group as a whole..,Seems to be in a long-term uptrend with many isspes still selling well below their historic highs. One of the more attractive is BURLINGTON Il\DUSTRIES (43 3/41.The largest and most broadly based company in the industry, Burlington has had an unusually good record over the last ten years, rising from an adjusted price below 5.00 a share in 1957 to more than 50.a share in 1966.- Despite this s'prospects see equally attractive for the long pull. Much of this success can be attributed to the fact that Burlington is the industry leade in the production of man-made fiber goods. This area accounts for better than 65 of total sales, and continues to expand. Additionally, apparel fabrics account for 70 of sales, and our fashion-oriented economy is expected to devour record amounts of fabrics well into the foreseeable future. This would seem to indicate that Burlington's sales in this area also will continue to expand, further favoring our hopes for earnings growth. The company appears to have shaken off the effects of fiscal 1967's inventory retrenc ment. Results for the first-half, ended March 31st, support this view. For the fiscal year ending September 30th, we are expecting earnings to rise to between 2.90 and 3. 00 a share — ex the probable tax increase, versus 1967 results of 2.30 a share. Despite the likelihood of a tax increase lowering this estimate, to consider favor ably an increase in the current 1. 20 annual dividend rate m a'u ing the present calendar year. From the technical view, Burlington'has se 0 lderable support in the 43-37 area, limiting downside risk. Price a 0 years enables us to project a price goal at 76. Currently selling only support level, Burlington shares again the likelihood of com petition from the rising ood 0 t outlook for the steel industry this year is favorable. While it i tr i rgins will continue under pressure, recent price in- creases will help m. First-quarter results were good and the strong showings reported fo e er mpanies may have been due to a general buildup in consume inventories as a hedge a st the possible strike. One of our favorites in this group, SHARON STEEL (38 , did exceptionally well in the first three months of 1968, with earn- ings rising to 1. 31 a share from in the year earlier period. Sharon completed a ten-year modernization program late in 1966. In a good steel yea the benefits of this would have been immediately apparent. However. 1967 was not a good steel year. Not only did demand slacken, but labor problems in the form of a truckers's strike delayed shipments. Poor weather conditions also worked to the disadvantage of the industry by delaying construction activities. These are considered non-recurring factors and served only to postpone business rather than to cancel it out altogether. This postponed business is now starting to be realized by the company, as indicated by first-quarter results. Management is optimistic over the current earnings trend continuing, and we are estimating results close to 5.00 a share for the current year, sharply above the 1. 87 a share repor1al for 1967, and the best results since 1956. If past history is any indication, Sharon's dividend rate, now at 1. 00 a share annually, should rise sharply over the next twelve months. Technically, Sharon's recent market performance gives the impression that it wants to move up A favorable pattern in the form of an ascending triangle has been created with a breakout around the level. Our initial price objective is 52 followed by a higher goal at 70. There is considerable downside support in the 37 -34 area. Currently selling for less than eight times possible 1968 earnings, these shares are considered attractive for purchase Dow-Jones Ind. 898.98 Dow-Jones Rails 246.42 HARRY W. LAUBSCHER for ANTHONY W. TABELL WALSTON & CO. INC. AWTHWLamb This market letter la pubhshed for your convenience and mformatlon And is not an offer to sell or Il soliCitation to buy any seeuntle& ulScussed. The in- –.formation was obtained from sources we beht'Ve to be rehable, but we do not Inlarantee its accurRCY, Walston & Co., Inc and ita officers, directors or emplo),eeB may have an interest in or purchR.se and sell the seCllrltu'S referred to hetem WNIIOl —

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Tabell’s Market Letter – May 24, 1968

Tabell’s Market Letter – May 24, 1968

Tabell's Market Letter - May 24, 1968
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Walston &Co. LE Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER May 24, 1968 The mood of the financial community was profoundly bearish. The market had re- cently held in a narrow 7 trading range and the Dow Industrial Average had just broken this range and moved to a new low. Cash in the hands of institutional investors had risen to reco levels. Then the entire outlook changed following a televised speech by the President. The market's response was instantaneous. It rallied sharply with volume setting new records. Within three weeks it had rallied some 10 from the low. After a three-day correction, buying pressures again took over and the Dow again moved into new high terri- tory. The first thought in the minds of many would be that the above breathless rendition describes the market events of April and-early.May, -1968. -Actually, it-does not. The market described in this instance is the rally which occurred in January and February 1967, and the President's speech referred to was his State-of-the-Union message invoking the possibility of a tax increase. The similarities between the two rallies are interesting and, in fact, quite instructiv Prior to the rally in 1967 the Dow-Jones Industrials had held in a trading range between 827 and 783 throughout most of November and December 1966. This trading range was penetrated on the downside at year-end, and a new low at 776. 16 was scored on January 4, 1967, From this Iowa mild advance took the Dow back over the 800 level. This process consumed 44 trading days. In February and March 1968, the Dow had held in a range between 825 and 857. This range was broken by a new low at 817.61 on March 22nd followed by a three-day rally bringing the Index above 844. Thirty-three trading days had in this range. Then, in both instances, followed the President' lSbth cases, the rally was dramatic. It lasted for 13 days from the low in ad 5 . 968, with the index reaching peaks of 856 and 916 respectively. At each\Q.,Wse R 've peaks, short-term indicators recorded a record overbought condition. Ih ca ,the rally sharply pene- trated a declining 200-day moving average Action subsequent to the – Tli'!JI1'rion has also, so far, been remark1968; a four-day decline ensued again, moving ahead to a new peak of 935.68 on May 3rd. Sim' a tor January high was followed by a three-day de- cline after which a e 1 d ow to a peak of 871. 71 on February 9, 1967. From each of these highs e e a decline which proved to be rather mild. This history brings us up to the pr e , at least as far as May 1968 is concerned. To add a few f r figures, the January-February 1967 rally consumed 26 days and moved the Dow up . 3. It was followed by a 5 decline consuming 11 days and re- tracing 45 of the advance. The April-May 1968 rally moved the Dow ahead 14.4 in 28 trading days and the subsequent decline of 5. 3 required 11 trading days to retrace 42 of the total upswing. The above figures seem to suggest that it is at least possible that the aftermath in 1968 might be somewhat similar to the one in 1967. As we all know, 1967 was, at least through September, a reasonably good market year and the January rally of that year was only the forerunner of what turned out to be a highly favorable intermediate-term investment climate. We do not intend to argue in this instance that market history repeats itself exactly. Yet, as we said in our letter of April 11 th, it is a truism that intermediate-term upswings are made up of vigorous short-term rallies interrupted by relatively moderate declines, whereas downswings consist of persistent declines and rather tepid rallying phases. It is als true that, in general, the initial short-term rally of an intermediate-term upthrust tends to be especially strong and vigorous. In any case, the investment odds at this stage do appear to be highly favorable. If the parallel with early-1967 action continues, a fairly important low could well have been seen as of the middle of this week. Even were this low to fail to hold, downside risk at the moment appears limited to the 860 level intra-day. Under these conditions, we remain in- clined to favor an aggressive investment policy. Dow-Jones Ind. 895.28 Dow-Jones Rails 253.71 ANTHONY W. TABELL WALSTON & CO. INC. AWTamb ThIs market letter (8 published for your convenience and mformntlon nnd Is not an offer to sell or a soliCitation to buy nny securities thscussed The In- formation was obttLlned from sources we believe to be rehable. but we do not gunrll.ntee its accuracy Wal8ton & Co., Inc. nnd its officers. directors or employees may have an interest in or purchase and sell the referred to hel em. WNBOl

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Tabell’s Market Letter – May 31, 1968

Tabell’s Market Letter – May 31, 1968

Tabell's Market Letter - May 31, 1968
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I I. W—a-l-sItnocn.&–C–o-. Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OVER 1110 OfF1CES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER May 31, STOKELY-VAN CAMP, INCORPORATED 1968 Current Price 60 My boys drink all… they want all Current Dividend 1. 00 through the game says Vince Lombardi of the Current Yield 1. 7 Green Bay Packers, in a recent ad. This is Long-Term Debt 1 Cum. Pfd. Stock Common Stock 9,343,000 764,356 shs. 2, 997,882 shs. true not only of the Packers but also the majority of other professional football teams, along with substantial segments of the National Basketball Association, National Hockey Leagu Sales-1969 -E Sales-1968-E 270,000,000 255,000,000 and Nation'al'and American Baseball Leagues, plus some sixty college football teams. The Earn. Per Sh. 1969-E Earn. Per Sh. 1968-E 3.25 2.75 product they drink is known as GATORADE, and it could turn out to be one of the most unique potables to hit the American market in Mkt. Range 1968-1967 603/4 – 195/8 quite some time. Its unusual potential, more- Fiscal year ends May 31st. Includes 7.4 million Convertible Debentures which, if converted, would increase common 9. over, creates, we think, an equally unusual investment opportunity in the common stock of its producer, Stokely-Van Camp, Inc. Gatorade was born out of extensive research carried on at the University of Florida (whose athletic teams are nicknamed the Gators) to combat thirst and dehydration, result- ing from profuse perspiration among athletes. A solution antly flavored, one of Gatorade's unique properties is its s to aBd various salts,pleasor bility to be absorbe by the body almost as quickly as it is drunk. This effects. First of all, it is effective at quickly relievi b io duces two important irst. ondly, it can be taken in copious amounts without danger of cramps f ,many professional athletes shave takenas much as a gallon and a l .f f e c e of a game. Most important, the debilitating loss'of energy produced e e p. spiration is and it is, indeed, a fact that many of the last season were known as fourth quarter teams. Despite its alre d Y athletic organizations, the surface of the poten- tial market for G een scratched. An obvious first step is the expansion of the institutional k a athletic teams, eventually broadening to the high school and junior high school e . he Armed Forces are still another potential sales target; and, of course, the most 1 ive possible market will ultimately be direct consumer sales. It is easy to see how the drink's use by professional athletes could make it appealing to all sorts of active people — perhaps with a promotional campaign similar to the one which has made Wheaties the breakfast of champions. An initial test marketing program will be commenced shortly in the Jacksonville, Florida, area, accompanied by extensive television and newspaper advertising. Of further interest is the possibility that, in addition to Stokely's non-carbonated version of the drink, Royal Crown Cola will produce a carbonated form, buying raw materials from Stokely. It should be noted also that, insofar as Stokely is concerned, Gatorade will be a relatively high- profit-margin product due in part to the company's being able to manufacture it in otherwise seasonal facilities. Despite recent strength in Stokely stock, it would appear that only a modest premium is being paid for the Gatorade potential, and the company would be intriguing as an investment entirely apart from its new product. An aggressive management has been highly successful in eliminating seasonal peaks and valleys, increasing acceptance of the Stokely label, moving into can manufacturing and turning around a hitherto-unprofitable frozen foods division. Unde this stimulus, profit margins have just shown their eighth consecutive annual increase and earnings per share have risen from in 1961 to an estimated 2.75 for the fiscal year ended just today. Comparison with other similar companies indicates that further expansion in marginsispossible. Thus, for the year to end May 31,1969, earnings could show another gain to the 3.00-3.25 range, entirely apart from any Gatorade contribution. Applying a con servative 15 multiple to these earnings would result in a price of just under 50; thus the pre- mium presently being paid for tlje potential is small. From a technical point of view the stock has a long range potential of 110 with support just under current levels. It is being added to our Recommended List for price appreciation. Dow-Jones Ind. 899.00 ANTHONY W. TABELL Dow-Jones Rails 255.65 WALSTON & CO. INC.

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