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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 ANO OVERSEAS TABELL'S MARKET LETTER March 6, 1970 After extending its advance through early Thursday, the market ran into mild profit- taking and declined slightly in late Thursday's and Friday's trading. This action was hardly surprising considering the fact that sharp rise had left most indicators tn a somewhat overbought position and that short-term objectives on the popular averages had been reached at the mid-week highs. Expected action at this point would be a period of backing and filling at, roughly, the 780-800 level in the Dow-Jones Industrial Average. Ability to broaden the present potential base in that area and to then resume the advance would be constructive — probably ind1cating that the 1969-1970 bear market had finally been laid to rest. While to the market, trading in the first two months in 1970 has brought about an umisual divergence -in indiv1dual stock patterns-.– A -great many of the issues which defied the bear market have formed potential tops and look as though they migh finally receive their comeuppance. Meanwhile, issues that posted major bottoms last July, and have been basing ever since, now appear to have an upside potential which far outweighs their downside risk. One such issue is reviewed below. Current Price Current Dividend Current Yield Long-Term Debt Common Stock Sales-1970-Est. Sales-1969 LOEW'S, 34 3/4 0. 13 1/3 0.40/0 590,000,000 14,438,263 shs. 800,000,000 554,000,000 Earn. Per Sh. 1970-Est. Earn. Per Sh. 1969 2.75 1. 83 1. 71 INCORPORATED Ten years makes a big difference in the life of an firm and in the life of Loew's, the last ten years have made an enormous difference, for the better. During the early part of those ten years, the com pany underwent si changes centering around the buil n theaters f!fl ho e s. ining and operating of e ently, Loew's inte- rests d new fields consumer products . ding. I d, oducts area, the merger with er of Kent Cigarettes and other -MkCRange-1969-'r970-' the country. This products in future. ws fitcient introduction of further new consumer s me active in home building in a big way. Construct- ion of three new co o already is underway in West Los Angeles, South San Francisco and Yorba 'n a, 1fornia, and plans are tn progress for the development of several more, inc1udin recently announced for a community development on Staten Island, New York Cit . This would appear to be excellent timing on Loew' s part. Residential construction has been drastically curtailed in recent years due to high mortgage rates brought about by tight money. With interest rates likely to head lower in the months that lie ahead, a strong pickup in construction is anticipated. The demand for new homes is at a peak level and is not likely to be satisfied until the late 1970' s. This strong position to produce and market a wide variety of goods and services, such a entertainment, foods and beverages, consumer products, transient lodgings, and permanent housing, yonsiderably broadens its earnings base. In a well-defined uptrend in recent years, earnings are expected to advance even more dramatically in the years immediately ahead. For the fiscal year ending August 31, 1970, net 1S estimated at 2.75 a share, up from 1.83 last year (1. 71 fully diluted). Revenues-will advance sharply to around 800 million, from-' 554 milllon last year and 166 million the prevlOus year. Most of this improvement stems from Lorillard. . d. Although health scares are likely to recur from time to time, the long-term trend on ci- garette sales appears to remain upward. Sizeable savings should result from cessation of radio and TV advertising as of January 1, 1971 and the leading brands at that time, of which Kent is one, should remain leaders afterwards since competitors also will not be allowed to advertise except in printed material. When radio and TV advertising was halted in England, sales continued to move ahead and were not affected by the prohibition. Technically, an area of congestion has been formed in the 30-40 region. This base indicate an upside potential of 46-54 w1th a longer-term goal readable in the mid-60's. On the downside there is good support at 32-28. Already in the Price Appreciation section of our Reco mended List, Loew's, Incorporated, is again recommended for purchase. Dow-Jones Ind. 784.12 ANTHONY W. TABELL-HARRY W. LAUBSCHER Do– — – . . Is ar C lttl'r 15 ))U 1 or coovenlPnre 'l.ntl lIlformn1ion an,1 !lot lin offl to sell or ,\ t.l buy ,Ill) -''I'urllu, (1I.,('u,,.I The In- formation wns obtained from sourctf, we lwhcH' to be employee,\ may have an mtereBt Ln or purchru,.. ,Lntl st-1I the hut we do Ilut J.,.Ultr,ll1tce It!. l\(curac) W I.ton &. Co, lor nnd lts officerll, dLrectors or r('l red to hcr(Ln.