Viewing Month: April 1969

Tabell’s Market Letter – April 03, 1969

Tabell’s Market Letter – April 03, 1969

Tabell's Market Letter - April 03, 1969
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Wdlston & Co. —–lnc —– Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER KYSOR INDUSTRIAL CORP. Apnl 3, 1969 Current Price 39 1/4 Holding a Royal Flush is a pretty good way to Current DIvidend Current Yield 0.45 1. 1 win a poker game. Being in the right business at the right time is another way of becoming success- Long Term Debt 4,379,000 ful. Kysor apparently fits both these bills. Not only Common Stock 1,043,223 shs. does the group of companies it has assembled unde Sales-1969-Est. 45 000 000 its own corporate roof m years have above- Sales-1968 31' 200' 000 average potenhal, but m followmg the pathway of — – 0- – '' management saw fit to make Earn. Per. Sil. 1969-E 1. 90-2. 00 – earni-ngsin-any-way.- Earn. Per Sh. 1968 1. 43 Purchases have been made either for cash or for Mkt. Range 1968-69 17 3/4- 411/2 stock and even after assembling fourteen companie in less than five years, total outstanding debt is les than 4. 5 million. Kysor's activities cover several important areas. Last week this letter Introduced the spectre of a commg housing boom that is expected to dwarf all previous booms. Well esta- blished in the residenhal hardware held through Its Dexter subSIdiary, Kysor seems parti- cularly well situated to benefit from t111s anhcipated boom, one most likely to last well beyon the mid-1970's. With mobile homes contmuing their own particular boom, Kysar management is getting ready to train their able sales guns on thIS important market. Dexter is the third largest factor in the reSIdential hardware held and its just m the last eight months. lJ5-s more than doubled ,W Machme tools and related areas have been y in ent months and Kysor' achvities in thiS particular area have been no except . hrou arious Subsidiary compa- nies, KZ produces a full line of band saws a tmg machinery and cutters for milling machines. Although total Wgr9wth IS through increased h ar shll is small, the potential for et lOn and a steadily broadening overall markei10re of This figure is expecte t lally during the next five to ten years with a figure exceeding the 6 0 the 1980's. This also means that demand for refuse disposal eqUlpment '1 III 1 ase sharply. Kysor's Anchor Machine Company produces a complete refuse han stem and has installed more of these systems than any of its competitors. Produchv paclty is being increased and moves to increase the already high- ly effiCIent operations are under way. Some mdustry analysts have suggested that Anchor's sales could reach 20 million by 1973, vs. 1. 7 million m fiscal 1968. The real Ace in Kysor' s hand is ItS air-conditioning busmess. Keep your cool with Kysor could become the rallymg cry of thousands of Teamster's before long. Today, only a portion of trucks are air-conditioned. The powerful Teamster's Union is expected to change this situation, as they press their demands for 1000/0 of all long haul on the highway trucks to be air-conditioned. This demand IS going to be part of contract renegotiations starting late this year. This means the market for truck air-condItioners will rise from the present 15,000 umts mstalled in 1968 to over 150,000 umts annually by the end of 1972. Kysor's con tract with International Harvester calls for at least 4000 units annually. KZ is the leader in this field with about 80 of the available market. Kysor also is benefIting from the trend toward use of al!totp.atic radiator shutters on trucks, which increase engine effiCiency and reduce operatmg and repair costs. In 1968, KZ sold 140,000 shutter units, but volume is expected to more than double over the near term as the company goes after the much larger lighter weight truck market. United Parcel Service recently switched over entirely to shutters and Ryder Systems, a leading trucking operatlOn, now is convertmg all of Its rental fleet. For the fiscal year ending May 31, 1969, sales are expected to reach 45 million, up from 31. 2 million last year. Earnings are estimated at near 1. 90 a share, vs. 1. 43 a year ago. Prospects for fiscal 1970 are bright with 2.35 to 2.50 a share, or more, considered reasonable. Dividends are likely to parallel the uptrend in earnings. Technically, Kysor' s chart reveals a pattern of higher highs and hIgher lows, and a bas area that mdlcates a goal of 52. Already on the Speculative part of our Recommended hst, it again is suggested for purchase. Dow-Jones Ind. 927.30 Dow-JoneB Ralls 241. 52 HARRY W. LAUBSCHER for ANTHONY W. TABELL WALSTON & CO. INC. Th ,., III II .-1 II ttl I ,.., u1,11,,11, ,1 r, H '\11 , n II II, t' ,lid III r, ' fUl,Ll\nn \1.., nh(,ll'ltd f'''tl ii' ,H' 11,,,. ,11. ,,11110). 'lIllltn\l'i''1I1l,I h\\c In Inill.,,\ III )I 1'1 , h, ,01 …,I! Ih. AWTHWLamb It III ,II. I ,.. nol n ,011, I !,\I! \\, 01 IlI,t ,.!U.I' Hit , 1.,),1 ( h11 \ … II I I ..nJ,. IJ It II It-. ,'II, ' \\ ,1.. .. ! ,-' hu !In lJl II ,j, II' ,I 'I h, 111 ('''' Ilw ,\1\, Ih ,h . … Ild,(t'l'' 1)1 WN.'lH\

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Tabell’s Market Letter – April 11, 1969

Tabell’s Market Letter – April 11, 1969

Tabell's Market Letter - April 11, 1969
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…- — – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – Walston &Co. —–Inc —– Members New York Stock Exchange and Other Principal Stock dnd Commodity Exchanges OVER 10C OA51 TO COAST AND OVERSEAS TABELL'S MARKET LETTER April 11, 1069 Wl111e It would be an overstatement to descrtbe the stock market's performance of the last couple of weeks as impresslve, an objectlve observer would have to term lt at least mildly encouraging. If the patient can surVlve I blt longer wIthout a serious relapse, lt may well be posslble io sav thai recovery IS assured. Actually, 1he market's 1w1'VioJ smc(, 1he cebruary low has been fairly Iypieal. The move to em in'ra-day peak of fJ42. 21 on 111e i)ow at 1he end of M,H'ch W3S about the best that could be expected ('onslc!e,'mg the small base 1hat hJd bcen built. The decline by the 1l1cease In ,'eBervl' cclrried back to the 020 support level, and the recoverv to' an ll1tl'J. – clay 'peed, oj !J4-1c-28-on-'JaIll sday-hab. easeJLthe,-…. enilre 10S8. In 1he pI'OCCSS, 1he downtrend in effect 8111ce Ikeember has been fairly dec1si vely violated. The longer the market can remam firm, the stronger posltion we will be in. Thirty- one trachng days have now passed slI1ce thc February low, whlch is close to the limit of the permlsslbL, tune perIOd for a short-1erm rally In the context of a larger downtrend. (Since 1962 no such rally hds hlsted morc Ihan 16 days) Continued abllity to move to new 11lghs would thus have to be consldercd conslructlve. lVleanwllile, we relterate our theSIS Illat proper polley conSIsts of restricting in- vestnlent to stocks of stabillty and quallty. Not only wlll such mvestments provide down- slde protection, but In 1.l1e present market pholse they are likely to be ihe leaders lf a move toward the olel highs gets under way shortly. One such company is revIewed below. JEWEL COMPANIES (47 1/2). .. !\llthat glitters g6l , bu1 there would seet'l to he a good deal of golden potentJal m the ewel Companies. Investors should fmd much to smt thelr particular II &11sis'1n A-quality s10ck, both from the capltal appreclatIon and &I-income aspects. Tn recent years, .Iewel has m the grocery ch'a;; I;dustry. 1'h;- if l de e of aggresslveness not common the fact tllat sales 11ave more \;n and now are approachll1g Ille 1. 5 blllion mark. Better tl . n 75 btrsine ss denves from operations of lts 370-unit supermarket chain '1 'l15;fibm 133 drug stores and/ or drug departments, 76 bakerY-lce cre ! 2,000 home serVlce food and general merchandIse rouies, 9 self-servi d stores and overseas ll1terests. Additional expansion is slated for ihe year with 26 supermarkets, 22 drug stores, 35 conve- nience stores and betgn 15 LInd 20 other type shops planned to be opened. One of the very few grocery chams to go JJ1ternational, Jewel tOday holds a 17 mterest in a Belgian supermarket and department store chain, l!Jo/n in a cham of Belgian discount stores and 49 in an Itahan supermarket chain. The first dlvIdend was received from overseas mterests tIns past year. All this recent actJvlty has been reflected in earnings. For the fiscal year ended January 31, 1969, net rose to a record 3.01 a share, from 2.64 the previous year. In the current year, industry sources expect earnings to approximate 3.35 a share. In VIew of the improvmg earmngs, cash diVIdends were raised last September to a 1. 40 a share annual rate. Thls now affords a return apprOXImating 3, somewhat less than the average return for the last fifteen years. In view oftncreasing casb-dividends fromoverseas interests and rising earnings, furtber improvement in the diVidend payout rate during tbe current year would not be unexpected. Techmcally, the base bmlt over the last SlX years suggests an imtial price obJective near 68, followed by a higher goal readable at 80. Good support exists in the 45-42 area. Added to the Quality and Long-Term Growth section of our Recommended Llst this past January, Jewel Companies agam is suggested for purchase. Dow-Jones Ind, 933.46 Dow-Jones Rails 239.48 W. TABELL WALSTON & CO. INC. AWTamb ,,'Ih, IUlllk,j I,ll., I'! 1'1I1,I1-.h,,1 f, ''''II ,,,\,nl''' 11101 ,,,r'tl''' .011 I t ,ltI .,ff . ,II ' , ..,,1'\,111' tn I,,,, Ill' UII', ,h,,'u….,, 'In. 11'- 10,111,\,,,,,,, … 1,1,,,,,,, fl''' \1,,,,-., \,,1'1 ,,, I 1,1,101, 1'111, 01, t g-II, d 1- \\,011,, ,\ I, 'lI' ,dt-. m .., dll,lOJ .. III Illl\ h'l ,Ill ' 11 plIl,hl' ,,,01 .,,1\ 'h, 'Ii'\ 1 .. 11,, ht'l1 WN30! , . – -.

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Tabell’s Market Letter – April 18, 1969

Tabell’s Market Letter – April 18, 1969

Tabell's Market Letter - April 18, 1969
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,, ;L Walston &Co. Inc Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAST 10 COASi AND OVERSEAS ;./ LC TABELL'S MARKET LETTER April IS, 1969 Quality Long-Term Growth Price Colgate-Palmolive 49 1/2 Caterpillar Tr. (51), Addressograph Multi. (73 1/2) Continental Oil 35 l/S Phillips Petroleum (69), Superior Oil (21S) Kellogg Co Price Appreciation 42 International Paper (43 1/2)' Kraftco (45 3/4) Adams Millis Bulova Watch Burlington Ind. Chris-Craft Commonwealth Oil Diners Club Sharon Steel 17 5/S 47 3/4 37 45 1/4 23 5/S 27 1/4 43 1/2 Amer. Mach. Fdry (25 1/S), Pacific Petroleum (34 3/ Clark Equipment (3S 1/4), First Charter Fin. (43) Dresser Ind. (37 1/2), Dan River Mills (22 1/2) Koppers (46 3/4), Suburban Propane (3S 3/4) American Distilling (39 3/S), Copperweld Steel (23 5/ Air Reduction (2S 1/4), Amer. Mach. Fdry. (251/S) Ingersoll -Rand (45 1/2), Republic Stee1(46 1/4) Speculative Price Appreciation Electronic Specialty 17 1/4 American Motors (10 3/4), Amer. Mach. Fdry (25 1/ Home Oil A Microwave Assoc. 52 l/S 233/4 Pacific Petroleum (34 3/S), Mesa Petroleum (4S 3/4 Gibraltar Financial (363/4), Computer Scien. (623/4 UMC Ind. IS 3/S Campbell Chib. (9 5/S), Olin Mathieson (291/2) Victoreen Leece Neville 13 1/2 Campbell Chib. (9 5/S), Kysor Industrial (41 1/4) Removed effective with delisting of March 10, 1969 Dow Jones Ind. 924. S2 Dow-Jones Rails 236.40 ANTHONY W. TABELL WALSTON & CO. INC. This market letter IS pubhshcl for )our CORve-mcnee Ilnd mformahon and IS not an offer to sell or fl sohcltatlon to buy nn) securities dlscuseed The in- fOnDlltion was obtained from soure ! we bchevc to be rehable. but we do not guarantee ltS llccuracy Walston &. Co.. Inc. and Its officers. directors or AWTambemployees may have an interc5t In or purchase and sell the securities referred to herem. WNSO!

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Tabell’s Market Letter – April 25, 1969

Tabell’s Market Letter – April 25, 1969

Tabell's Market Letter - April 25, 1969
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r– Walston &Co. Inc—– Mambe New York Stook Exchange and Other Principal Stock and Commodity Exchange. OVER. 100 COAST TO COAST ANO OVERSEAS F'- TABELL'S MARKET LETTER April 25, 1969 A standard forecast for the economy has, it seems, been just about arrived at with all the attendant perils that the emergence of such a forecast usually entails. The scena rio runs something like this. The first half of 1969 will retain Its momentum insofar as corporate profits are concerned, but by the second half, th( tight money policy of the Federal Reserve Bank, plus the fiscal policies of the Nixon administration, will make themselves felt,and profits will be under pressure 1ll the second half. Trymg to find a forecaster who does not believe something like the above is like trying to find one wh6 thinks the New York \1ets will win the National League pennant. The fact, of course, is that the forecast is probabl) a,-curate. What does it mean for the stock market Well, of course, stock market tops and bottoms tend to lead the economy rather than coincide with It, so a turndown in the economy starting in, say, June, may have been just what the market was trying to tell us when It started going down last December. Likewise, if the economy is going to move down, and thcn improve in 1970, a stock market rally starting in'june- or July, a month or two away, would not be unusual. In any case, we think. the best course is to own attractive values such as the following. AIR PRODUCTS & CHEMICALS, INC. Current Price 43 1/2 Chemical stocks in general have been througl Current DIvidend Current Yield 0.20 stk. 0.5 the mill over the last year or so, reflecting an economic climate thl has caused a drag tn earn- Long-Term Debt !l4 75 Cum. Conv. Pfd, Common Stock Sales 1969 Est. 98,000,000 200,000 shs. 5,186,490 shs. 220, 000, 000 lllgS This problem conti- nues, but has b p trol of Elts al through ,'- better con pIckup in demand in s 0 R Dci line. Lower outlays , 1 also have helped improvp j Sales 1968 Ear'n, Per Sh, Per Sh. 1968 Mkt. Range 1967-1969 202,200,000 th,\ '!; i n!!5-u ook. 1\,2,45 – 210- llqpii'l ('\,ltnpal.,,'S III c,.J11'1',1 hdve rathp.r' ' 12. 2-\\ \ \; \llT.9vf.p'roduct 1111(S and SPcc,.lliz.aUon, ig'-rather 30 I49 – fu,.'Y-c \\1th111 th(' 1l1dustry, However;!t)s Just such // a special'7;ed company that attacts our attention I at present' Air llldustnal gases & S,' Inc., a leader III the productIOn and distriibution of I Il' ed e lpmellt. ' , As previously to be in construction, ed 111 these letters, the next r('ally bit; ('conomie boom is lLkf'l) , ight of thIs budding demand, tl1' outloo! for an lllcrease in steel proouctJ(ln would appear 10 be brlght, which in turn would call for greater ('onsumpt ion of I llIuustnal gases. The increaslnV- trend toward utiliatwo of r!lir og,'n g.l In We dr,v fr'ezinli f uf foods also D.ugurs well for future (armngs prospects. ,\11' lndutnal gases and related equipment account for about three-fourths of total sales, chrmicnls ami ('3ta1 sts, 17, and plant construction and services about 9. The company was piolleer in the con- struction of on -site plants, whlch eliminates transportatlOn problems and affords operating efficiencies to both producer and consumer. The complll)' also has its problems, most of wlH('lJ ('( ntpr around poor fcrhluer prices and a resultant unfavorablE' pricmg climate for nmmonia. flowever, continued increas( to industrial gas consumption 3n1 an expanding riwmicab operation suggest -hat ear1 LnG tn future w,ll 1,/' ..I II '101';1 x,'oiU rat' 1han tht typical of the pecenl past, Th(' fiscal, year ending September 30, 1060 is ( p,–ted to be the itr ,t year ,-,1 ti'L ' gam in profitability. ;lhare earmngs of between 2.45 and !2. SO a are cstimatC'd, lnm- parpd with 2,24 for the previous fiscl year, WhIle some improv(,l1wnt 10 the highly con ,p,r' vatlve a share quarl1'rly payout pate is likely to para, I 1) p ro tl' tn earl1logs, the stock shuuld not be ('onsi iered for income purposes, but primal',ly fop liS Hr, capital ,lppre- ('1 ation potential, over the longer pull. From the technical view, APD h'1S been creatlllg a chart pUern that indicates an 1ni- H;)l price objective III the mid-GO' s, followe,J by a hIgher goul readable at 88. On the downSldt! there is support iaent starting around 40, ,\ (,);'Z'\ bI'eakout on the upside would take pla('e at 50. Added to the Pric(' ApIH'(ciation section of (JUI' Re..'ommenrJed List in January, theSe shares again are recommended for purchasE' at pl'f'vailll1g IH'lel' l('vels, Dow-Jones Ind. 924. 00 Dow-Jones Rails 236,02 W, TtUl' W, LAL'BSCHER W\LS';O-;; & ro. IXC'.

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