Tabell’s Market Letter – April 03, 1969

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\