Tabell’s Market Letter – September 14, 1962

FILE COpy I Walston &Co.———lnc ——–Members New York Stock Exchange NEW YORK ,sAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFfiCES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER September 14, 1962 INTERNATIONAL MINERALS & CHEMICAL CORP. Current Price Current Dividend 47 1. 60 Some twenty-one months ago this letter suggested the purchase of International Minerals & Current Yield 3 40/0 Chemical at the then current price of 32. At that Long Term Debt 4 Cum. Pfd. Stock Common Stock —- — Sales -1961-62 56, 289, 316 98,330 shs 2, 642, 841 shs 149,000,000 time, the Dow-Jones Industrial average was around its present price. IGL, of course, today selling at 47, has performed considerably better , verage-ov.er – reason to suspect that it will not continue to do so Earned Per Sh. 1961-62 3. 04 This thought is occasioned by the fact that Mkt. Range 1962-61 57 – 34 the writer has spent the past two days, along with other representatives of the financial community, touring IGL's potash mme and refinery at Esterhazy, Saskatchewan The tour was most impressive Sinking the 3, 378-foot shaft was probably the most difficult mining project ever completed in the Western Hemisphere The exact contribution that the project will ultimately be able to make to IGL's per-share earnings is difficult to calculate, but the company has stated it has a target of an average 100/0 annual return on its 40 million in- vestment in the project. This would approximate 1. 50 per share, or a 500/0 earnings in- crease from this source alone The above figure, however, should only be a rough guide as such complexities as tax exmptlOns, etc. , must be considered. It should also be noted that eventual completion of a second shaft should double output. There has been a great deal of talk in financial hazy, and other major potash projects now scheduled, w Ii the impact that Ester tee volatile supply- demand situation in this commodity. This talk has 0 b s t Esterhazy would be able to sell its full output and, (b) that the price asPta i main stable. Manage- ment has some persuasive arguments to thl si nting out, first of all, that na se- – Ester!1aZ'y has tura(inarkets-which, dueC —Hon – other factors, ftiiione can-be serve, and secondly, that the new e 1 uced gradually over the next few years so that impact on While the Ester azy j i lmportant, lt should be fitted into the over-all Internation IGL is, basically, a company serving agricul- ture. To fully des' s potentlal, the overworked term, growth industry must be applied gn e of the world population explosion is familiar to everyone. It lS patently apparent food production must grow sharply and that more intensive fertilization must t place. IGL's position for supplying basic fertilizer ingredients in world markets is unique. There are three major elements of plant nutrition nitrogen, phosphorus and po- tassium, the only commercial source of the la tter bemg potash IGL has long been a ma- Jor producer of the last two commodities, producing potash from leased deposits at Carls bad, New Mexlco, and phosphate rock in Florida A recently announced joint venture with Northern Natural Gas will put the company in a position to market a-nhydrous ammonia, a major source of nitrogen, and thus give it a position in all three basic fertilizer elements Since fertilizer, as pointed out above, is a bulk commodity, the company's position in regard to shipping points is also interesting. It will be shlpping potash from both Ester hazy and Carlsbad. It is nOw shipping phosphate from Florida, and is a partner with Fren h interests in a West Africa phosphate mine. 'Eventual shipmeh-t from this point would 'open additional markets Putting all this together, he company has pointed out that they will be able to compete in every major market of the world outside the communist block Over the near-term, desplte a projected lower first half, the company's earnings should show a reasonably good increase over the 3.04 earned in the year ended June 30, 1962 The techmcal pattern of the stock has not been destroyed by the recent market bre and indicates considerably higher levels over the long term. We continue to feel that IGL is one of the better growth opportunities presently available Dow-Jones Ind 605 84 Dow-Jones Rails 121 23 ANTHONY W. TABELL WALSTON & CO. INC. ThiS mark'!t letter IS not, and under no CirCumstances 19 to be construed as an offer to sell or a soliCitation to buy any referred to herein The mformatlon ('ont.8\o&l herem 19 not guaranteed as to accuracy or completeness and the furnlshmg thereof 19 not. and under no cIrcumstances IS to be construed 8S, B reprcsenta tlOn by Waiston & Co, Jnc All e'O(pressH;mfl of opiniOn are subJect to change without notIce. Walston & Co, Inc, Bnd OffIcers, Directors, Stockholders and Eml)Joylell thereof, Ilurchasc, sclland may ha.e nn Interest In the- secUrities mentiOned herein ThiS market letter 18 mtended and presented merely as a general. mrormal commentnry on day to day market n,' \5 and not as a complete Additional lllformatlOn With respect to any Securities referred to herem Will be furnished upon r e q u e s t ' \\'N 301 – \