Tabell’s Market Letter – May 10, 1968

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. ,