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Walston &- Co. —-Inc —-Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAST TO COAST AND OVERSEAS – J L'E. TABEll'S MARKET lETTER June 6, 1969 Question If what goes up, comes down, – will what goes down come up Answer TEXAS INSTRUMENTS, INCORPORATED Current Price 123 1/4 The latter variation on the cliche cited Current Dividend 0. 80 above often has been related in the past to Current Yield O. 60/0 the movement of securities. It is a well Long Term Debt 52,900,000 known fact of market life that fads and fash- Common Stock .' 10,940,190 shs. ions have their day as the popularity of groups 770,000, 000- -wax-and then wane-as 'the fad changes. StfCli…. -H Sale-s-1968 671,230,000 has it always been in the marketplace and like- Earn. Per Sh.1969-E. 2.75 – 2.85 ly will it so remain far into the future. What Earn. Per Sh. 1968 2.41 is a particularly hot item one day has been Mkt. Range 1969-68 127 3/4 – 86 1/4 known to leave investors cold the next. The antithesis of this suggests, therefore, that what is avoided one day eagerly may be sought after the next day. Testamony to these thoughts seems to be amply demonstrated by a review of the performance of the Electri- cal Equipment and Electronics industrial group in recent years. A glance at the charts for this group of stocks reflects that they were much in fashion in the 1964-1965 period and again in 1966 after the market completed the sharp downtrend that characterized much of the latter year. The advance that characterized the group from the final three months of 1966 to approximately the ffas quickly followed by a falling out of favor that brought about a fairly sJtl6rp li of the issues in this industry. Thus, the group has been through a ow and now seems to be at the point from which the potential for capital 've. This now would ap- pear to be the case for TEXAS ) Texas Instruments (TXN) is one f t r t f t' lectrical-Electropics group –. operatlOn on '9, tndustry. The rapidity with which-it — increased revenues and s bears mention. From under 92 million in 1958, sales r se to 1 n st year and are expected to easily exceed 700 million this yea pe mance has been equally dramatic, with the results for the current ye a ost four times the 74 a share reported a decade ago. Earnings rose to an ic of 3.30 a share as early as 1966. Although price- earnings multipJ,es are lkely to return to the unusually high level of only two years ago, the indicated improv nt in earnings performance is expected to bear favorably on future multiples. Fears that the current controversy over defense items and military expenditures will result in cutbacks in these areas by Uncle Sam, the industry's No.1 customer, responsi- ble for about 550/0 of industry output, would appear to be somewhat unwarranted. Industry analysts argue that a Vietnam peace would be partially beneficial to the industry since the lion's share of current Government purchases are for hardware rather than for sophisti- cated products, and the resultant cutback on companies able to quickly adjust and shift to a new demand pattern should have only a temporary effect on operations. TXN is increas- ing its diversifica.tion to take advantage of the attractive potential afforded by industrial and commercial markets. Certainly the areas of data processing and TV where.the demand for integrated circuits is mushrooming offers above-average sales potential. Technically, the stock has been forming a base going back well over a year that has created an area of support between 112 and 95. This base also now provides the setting of an initial price objective around the 165 level with a higher goal readable at 185-190. Now being added to the Price Appreciation section of our Recommended List, Texas Instru- ments shares are recommended for current purchase by investment-oriented accounts. Dow-Jones Ind. 924.77 Dow-Jones Rails 230.39 ANTHONY W. TABELL-HARRY W. LAUBSCHER WALSTON & CO., INC. HWLat This market letter IS Ilubhshed for your ('onventenee and mformatlon and 1'1 not lin offer to sell or II. '1ttilcltatlon to bu) Hny secUrities dlscussM The mformntlOn was obtained from sources we believe to be rehable, but we do not guarantee Its RccurllCY Walston &. Co, Inc, lind Its officers, directors or employees mlljt have an mterest m or purchase and .sell the 8eCurltlt'S referred to herem, WNSOI .1. 11.,.11110. . .1,11&. -!