Tabell’s Market Letter – January 03, 1969
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W—-a–l-s-Itnocn—&–C–o–. Members New York Stock Exchange and Other P,rincipal Stock and Commodity Exchanges OVER 100 OFFICES COAST TO COAST AND OVERSEAS E TABEll'S MARKET lETTER January 3, 1969 How discreditable! …… Plato, Republic Book VIII Confidence, or the lack of it, always has been the measure of stock markets. It is weakened by apprehension andmucture-dIby hope, .Thus, the recipe for the crosscurrents of today's market. The fears of a credit crunch brought on by intractable inflation must be balanced with the promising outlook for the economy and the strong probability that Vietnam War costs have peaked. In the face of a favorable climate for investments, the lack of confidence held by some could prove discreditable. Until the favorable factors now present are moderated by as yet unforeseen adverse agents, we remain of the opinion that there is more -to' gafilfroni being in 'stocks, rather'thanout ofthem; in coming months. One stocK for the -, in crowd is Olin Mathieson Chemical Corporation. OLIN MA THIESON CHEMICAL CORPORATION Current Price Current'Dividend Current Yield 43 1/2 1. 20 2.8 Long-Term Debt Common Stock Sales-1968-Est. Sales-1967 195,100,000 15,899,000 shs. 995,000,000 901,100,000 Earn.Per. Sh. 1968-E 3.40 to 3.50 Earn. Per Sh. 1967 3.47 Prospects for this leading chemical conglomer- ate appear to be more bright than they have been for more than a decade. Thanks to an economy that is encouraging ever-increasing use of its broad line of diversified products, sales projections call for a rise to record levels this year and a sharp gain over the next several years. A similarly im- portant improvement in earnings also appears to b part of the e smng that is being painted for holders of 01 so. 0 Mkt. Range 1967-68 81 3/4 – 32 1/2 their fort Olin has seen fit recently to dispose of some of 'ts i 0 p s have augmented tli a' addition of subsidiaries, tan dings. Thus, the year re- ended ,the to of E….R.Squib , one oflhe nahon's leaamg e sale'of OLM's holdmgs m Umted Nuclear Corporation. While afforded OLM stockholders an unexpecte dividend, the monies derived sale have substantially improved the finances of the parent's u e, providing welcome wherewithal to foster addi- tional growth. Olin recent! d e s of those companies realizing profitability from alumi- Owned by Olin, is the nation's fourth largest integrated alumi- num producer, and wi 9 expected to witness a sharp rise in residential construction, prospects for the alu mum industry in general are considered favorable. Contributions to overall net income from Ormet are expected to show a steady improvement in the years im- mediately ahead. Also likely to be aided by the anticipated construction boom is the Olinkraf forest products division that sells lumber and plywood products, in addition to paper items used in the packaging field. Chemicals continue to dominate the Olin scene and, with the exception of agricultural chemicals, are a leading contributor to earning power. Considerable overcapacity in agri- culturals is industrywide, and has resulted in keen price competition and unfavorable profit showings. Demand for Olin's industrial chemicals, propellants, antifreeze and specialty items continues to expand and profit margins in certain of these areas is expected to show improvement. . All in all, the outlook for 1969 is bright with some industry analysts projecting earn ings close to 3.80 a share, vs. the 3.40 to 3.50 estimated for the year just ended. With OLM selling well below the price-earnings multiple of the last fifteen years, there appears to be considerable upside potential. Technically, OLM, despite its sharp move of recent months, has a favorable chart pattern suggesting higher prices. The charts indicate a price objective at 60 and reveal strong underlying support around the 40 level. Now on the Price Appreciation section of our Recommended List, Olin Mathieson shares again are recommended for investment purchase. Dow-Jones Ind. 951. 89 Dow-Jones Rails 272.61 HARRY W. LAUBSCHER for ANTHONY W. TABELL WALSTON & CO. INC. HWLAWTamb ThIs market letter 1,8 published for your convenience and wformAtlon And is not an offer to sell or a soliCitation to buy an)' securities lhscussed. The in- formation W&I! obtained from we beheve to be reliable. but we do not guarantee its lccurac). Walston & Co., Inc and lts officers, directors or employees may have an Interest in or purchase And sell the securities referred to helem. WN801 . Walston &- Co. Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER laD OFFICES COAST TO COAST AND OVERSEAS TABELL'S RECOMMENDED LIST (Page 2.) PRICE APPRECIATION Date Recom. Adams Millis 3/17/67 Air Reduction 4/22/66 . Amer. Baker. 9/8/67 Amer. M&F 9/8/67 Arvin Ind. 2/2/68 Bulova Watch 9/8/67 Burlington Ind. 11/17/67 Chic.Mus. Inst. 2/2/68 Commonw'th Oil 3/17/67 Copperweld St. 12/31/64 Diners Club 9/8/67 Dresser Ind. 3/17/67 First Chart.F. 2/2/68 Gt. No. Paper 3/17/67 Koppers Co 12/31/64 McNeil Corp. 9/8/67 Medusa P.C. 11/17/67 Mesabi Tr. 12/31/64 Olin Mathieson 4/22/66 Republic Steel 9/8/67 Rexall Drug – 8/30/68 Reynolds Met. 12/31/64 Robt. Controls 3/15/66 Seaboard C.L. 5/5/67 Sharon Steel 7/8/66 Stokely VanC. 5/31/68 Union Camp 3/23/66 Vornado 9/8/67 Price as of date Recommended 11 36 3/8 263/4 227/8 33 1/2 30 41 1/8 33 1/2 26 3/8 263/8 401/8 321/2 301/2 37 3/4 27 1/2 171/4 283/8 147/8 33 493/4 347/8 34 555/8 347/8 60 47 25 1/2 Price 12/31/68 or date Removed 19 1/2 33 7/8 27 1/4 27 1/4 42 172 45 5/8 44 1/2 31 1/8 29 1/4 27 47 1/2 41 7/8 36 1/2 68 3/8 44 28 1/2 38 1/4 12 1/4 43 1/2 51 405/841 3/4 65 3/4 52 3/8 46 3/4 36 1/8 56 3/4 24 7/8 Change 77 -7 2 19 27 52 8 -7 11 2 18 29 20 81 60 65 35 – 18 32 3 4 20 93 -6 34 – 40 21 -2 Allegheny Lud. 11/18/66 56 54 1/2 Ampex Corp 6/30/67 36 1/8 32 1/4 Anaconda 9/8/67 493/8 45 1/8 Anchor Hock. 11/18/66 53 Canada Dry 2/2/68 33 1/8 72 437/8 Cincin. Mill. 11/18/66 31 49 7/8 Comsat 3/10/67 61 1/4 56 Dentists Supply 10/27/67 43 39 1/4 Eagle Picher 2/3/67 165/8 30 . T 12/31/64 215/8 -Ex-CeU-O 4/19/66 — 221/2 33 1 /4 .. — 33 Dynamics 12/ 31/64 35 47 1/2 Gillette Co 11/15/65 37 52 Kelsey Hayes 11/18/66 421/4 36 Revlon 5/3/65 45 1/8 72 Riegel Paper 12/31/64 21 3/8 22 3/8 Schlumberger 12/31/64 473/8 101 Scovill Mfg. 5/5/67 42 40 Shell Oil 12/31/64 59 1/2 67 1/4 Signode Corp. 12/31/64 27 1/4 37 , Squibb-Beech N 1/15/68 443/4 45 1/8 Tektronix 3/17/67 401/8 47 1/4 -3 -11 -9 36 32 61 -9 -9 80 54 47 36 49 – 15 60 5 102 -5 13 36 2 18 Change DJIA same Time Period 9 -1 4 4 9 4 10 9 9 8 4 9 9 9 – 18 4 10 8 -1 4 5 8 2 4 6 5 2 4 13 7 1 9 10 7 6 3 5 5 — 9 9 -4 7 -1 9 3 1 5 5 1 6 Current Comment Hold. Buy for 55-70. Buy on dips for 66 Buy onDips. Buy for 60. Hold, buy on dips Buy for 65., Hold for 46. Buy. Buy onDips. Buy. Hold. Buy for 102. Buy for 62. Hold, buy on dips. Buy for 54. 67. Hold. Buy for 60. Buy for 70-106. Hold, buy on dips.. Buy. Hold. Buy on Dips. Buy on Dips. Buy. Buy on Dips. Buy. Removed 7/19768 Removed 5/3/68 Removed 5/3/68 Removed 10/4/68 Removed 10/4/68 Removed 2/2/68 Removed 6/21/68 Removed 7/19/68 Removed 6/21/68 Removed 5/3/68 Removed 2/2/68- Removed 10/4/68 Removed 7/19/68 Removed 2/2/68 Removed 7/19/68 Removed 10/4/68 Removed 6/21/68 Removed 5/3/68 Removed 5/3/68 Removed 5/3/68 Removed 6/21/68 Removed 5/3/68 ThiS Bulletm IS puhllshed for your was obtmned from bOUH\''1 we have nn Interest In or r1urch,I'c an,l rln,) informAtIOn and lb not Itn offer to '1el1 or 1\ soliclt,ltlOn to llU) an) securities dIScussed. The mformaliOn to hi but we ,10 not J.(UIlI,\nl.', Its W1II,ton- Co, Inc .Inl It!! offic'r! nne'tors or employeeS mlly the '1LCUlltl'S lcfl'IIl-'(1 to helln, 'WN-916 Wdlston &- CO. Inc Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAST TO COAST AND OVERSEAS lABEll'S RECOMMENDED LIST (Page 3) Date Recom. Price as of date Recom- mended Price 12/31/68 or date Removed Change Change DJIA same Time Period Current Comment United Fruit 12/31/64 17 5/8 Wallace & Tier. 8/2/65 32 58 36 5/8 229 14 5 4 Stocks Removed, 1965-67 (forty-three) 50.6 4.3 AVERAGE -. — — .. – .–. 38-1–''4-7 Removed 5/3/68 Removed 5/3/68 —-. …- SPECULATIVE PRICE APPRECIA TION Allied Sup'mkts Amer. Motors Camp. Chib. Chris-Craft Electron. Spec. Gibraltar Fin. Home Oil A Macke Co Microwave Pacific Pete -P-e-n-n- C-en-tral Technicolor UMC Ind. Victoreen 9/8/67 2/2/68 12/31/64 3/15/66 3/8/68 11/17/67 11/18/66 2/2/68 12/31/64 12/31/64 5/5/67 12/31/64 5/5/67 20 13 7/8 3 13/16 23 27 22 1/2 21 19 1/2 9 5/8 10 3/4 67 23 1/2 14 3/8 13 1/2 21 12 7/8 10 1/4 39 1/4 27 7/8 27 1/4 46 7/8 29 33 3/8 25 6.3.2L 38 3/8 25 3/8 15 1/2 5 -7 228 71 3 21 123 49 247 133 -5 63 77 15 4 9 8 2 13 10 17 9 8 8 4 4 8 4 Buy on Dips. Buy on Dips. Hold. Buy for 68. Buy on Dips. Buy on Dips. Hold. Buy on dips for 4 Hold. Buy for 30-50. Hold. Hold. Hold. Amer. Photo National Can Syntex Varian Assoc. Vulcan Mat. 2/2/68 12/31/64 3/17/67 12/31/64 12/31/64 19 1/8 17 93 1/8 13 17 3/8 Stocks Removed, 1965-67 (seventeen) AVERAGE 16 1/8 55 3/8 75 27 21 7/8 – 16 226 – 21 108 26 60.0 67.60/. 10 9 6 5 5 3.7 5.9 Removed 10/4/6 Removed 10/4/68 Removed 5/3/68 Removed 5/3/68 Removed 5/3/68 Adjusted for stock split. – — —– ….. — ,, ) , II I! Thll; Bulletm 18 published for your con\enH'nce .lnd information Rnd IS not Rn off('r to sell or Ii to buy A.ny seeurrwes discussed The InformatiOn W811 obtamed from SOU1CCS we hchev. to h. Ichble, hut we do not lts accuracy. Walston & Co, Inc. Rnd Its officers, dncctors or msy havc an Interest In or Ilurdll\!lc IU1I1 leil the referlerl to hertLn. WN-916