The Los Angeles Times from Los Angeles, California on May 16, 1969 · 61
Get access to this page with a Free Trial

A Publisher Extra Newspaper

The Los Angeles Times from Los Angeles, California · 61

Los Angeles, California
Issue Date:
Friday, May 16, 1969
Start Free Trial

Profit Takers, War Blamed as Stocks Slip NEW YORK UP) The n stock market, after ad- vancing for two sessions, ' got a moderate setback i ' ' Thursday with some inves-j tor disappointment over : . , Vietnam and profit taking reported weighing it ! . down. i . Although the market finished in the minus column, some brokers thought it turned in a pretty good performance i by "showing once again its j ability to survive adverse ! news." They said that I even though the market 1 might continue drifting downward, it still seemed ; to be basically strong and have underlying vitality. ' The market, analysts said, made good advances in its previous two sessions largely "on hopes President Nixon's speech on Vietnam might produce some signs of solid pro- : gress toward peace." The Dow Jones industrial average, for example, gained a total of 10.99 points in the two sessions, and on Wednesday it closed at a "new high for . the year at 968.85. The Dow lost 3.69 Thursday to close at 965.16. "The market had built up hopes the President would say more than he did," the analyst said, something new that might lead to a vital breakthrough in the Viet- nam situation. But 'his talk did not seem to contain any dramatic surprises. ; Then, when the Viet Cong rejected his proposal for a mutual troop withdrawal, it helped dampen enthusi- : asm." Profit Taking Cited Profit taking also was cited by brokers as biting into some of the gains the market has made in its recent advances. They said this was to be expected and probably would continue. Turnover for the day came to 11.93 million , shares, compared with 14.36 million Wednesday. Blocks of 10,000 shares or more an indication of Institutional activity totaled 62, compared with 60 i: Wednesday. . Showings by other mar- , ket indicators: Standard and Poor's 500-stock index off 031 at 105.85. The New York Stock Ex-: change index of some 1,200 listed stocks off 0.13 at 59.14. Losses took an early lead over gains, although the gap was narrowed somewhat as trading progressed. Of 1,584 issues traded, 771 declined, and ; 564 advanced. There were 62 new highs for the year and 31 new lows. Steels were mixed. Mo- , tors were lower, with General Motors off 1. Aircrafts and electronics also were lower. Utilities were most- ly higher. . 1 Losing a point or more were Homestake Mining, Eastman Kodak, Control , Data, and General Electric. IBM was off 4, and Pola- ! roid dipped 2. Leasco Data Processing, off 1 Wednesday, was up ; at 3714. On the American Stock . Exchange, volume came I to 6.87 million shares, compared with 7.75 million ! Wednesday. The Amex index lost 9 cents to $31.33. British Petroleum, most active, was up ltt at 20. Fourteen blocks of British Petroleum were traded during the day. NOW LEASE ONE OF THESE NEW 1969 CARS AT THE BEST RATES OF THE YEAR (30-month open end tease) CONTINENTAL 150 Automstls trmimlisiM, power staring, rates, windows and 6-wsy tests air conditlenlni tnd tinted f Isssi AM radio, WSW tlrtt, whtil eevtrs and leathsr trim. Plus 40,000-mile full maintenance FREE! COUGAK1 95 Automate transmission, powtr staring and brakes, air conditioning and tinted glass, AM radio, WSW tins and wheal covers. PUIS 24,000-ffliie full male-tensnca FREII IWmMoneiy nit tut main. wftere ! the U.S. AH yoe eeee huy if f oi anrf tiros. CITOIY LEASIK3 900S Wilthire Boulevard Beverly Kills, CA. 90211 273-0950 272-6861 ! " i I ' - . ir r, ! n n - -i ii ii i 1-H r AV ff- ij'A V i J f J d fJt f.Ji AiiAft JJfim fJi-4Kfj- r is f tir fi f iriNrvf s ftfli-ff r rfri f r - l r " HOW THEY'RE Monogrartv Sees Upturn After Temporary Stall Troubled Monogram Industries Inc., a stalled conglomerate hopes to restart its engines with a good fourth quarter and turn strongly into fiscal 1970, President Martin Stone said in an interview. Monogram, with its stock down to the mid-40s (high of 61 this year and over 80 in 1967-68), had an improved third quarter, the January-March period, after a poor first half. Stone said he expects "considerable improvement" in the fourth quarter. Monogram's fiscal year ends June 30. Scaled-down Wall Street estimates for earnings of about $1.75 to $2 a share in the full year are in the ballpark, Stone said. Previously, estimates had been as high as $2.40. Monogram, a producer of sanitation systems, electrical insulation materials and industrial fasteners, earned $1.72 in 1968. Cites Bank Difficulty Stone expressed the opinion that rapid fire acquisitions by conglomerate companies are going to stop; at least temporarily. "The banks no longer will extend money," he said? As for Monogram, he said, the label "conglomerate" really doesn't apply. "We're not spread all over the map," Stone said. "We're in three lines of business, all with a fairly good relationship. They're all manufacturing, have common markets, and the controls procedures are identical." Stone said some of the criticism coming from lawmakers and analysts about the trend toward corporate conglomeration is justified. "When very large companies extend themselves with debt to purchase other companies, it can become dangerous," he said. The concept of entering diverse fields through acquisition is a sound one, however, Stone said, if hot carried too far. He termed "unsound" such practices as an industrial company acquiring a bank, or banks, through holding companies, acquiring industrial companies. And, of course, overextension of debt, Aeronca Gels $27 Million L-1011 Pact Aeronca Inc., Torrance-based aircraft manufacturer, won a $27 million contract to supply all the wing flaps and wing vanes ;for the 'Lockheed L-1011 Tristar commercial jetliner. It Is the biggest single contract in the company's 40-year history. Aeronca will supply the parts under a contract from Avco Corp.'s Aerostructures Division in Nashville, Terra. Avco has a contract from Lockheed for the L-1011 wing structures. Aeronca will center its production in its Middletown division in Ohio, with support from its Aerocal Division in Torrance. First deliveries of the wings to Lockheed are scheduled for March, 1970, and Aeronca is to begin delivering flaps and vanes to Avco in January, 1970. The initial contract to Aeronca is for 100 ship sets, valued at $7.7 million. The total contract, running through 1974, is for a total of 350 ship units and one static test unit. City Investing Company 7 Senior Notes dus March 1, 1989 With Warrants NUT ICtt CHJCAOO May 16, 1909. DOING BY ARELO SEDERBERG, Times Staff Writer NATIONAL Continued from 13th Page shares by Coleman, formerly president of the Seeburg Corp., and his transfer of nearly half of those shares to a group of 21 "associates," including FOF Proprietary Funds Ltd., based in Geneva. At the gaming board's insistence, FOF later sold its interest. FOF also had interests in gambling casinos in the Bahamas and this is prohibited by Nevada law. The spokesman added that Parvin -Dohrmann does not now have an application pending before the Nevada Gaming Control. Board to operate the Riviera Hotel. The original application was withdrawn when the board started questioning Par-v i n - Dohrmann's ownership, he said, and it has not yet been renewed. The Amex board and the SEC had suspended trading in Parvin-Dohrmann's stock. They permitted trading to resume after Apartment Mortgage Loans Construction or Existing IIAYWARD TAMKIN & COMPANY, INC. Mortgage Bankers 2675 W. Olympic Blvd., Los Angeles, Calif. DU 5-8451 This announcement appears as a matter $80,000,000 The MUfWitejmaT negotiated the direct sale ef these Hotcs to S group of kuettutiemal investors led by AutmaUhmummOompmipt Lehman brothers MaHieWlSM MNVBt HOUSTON LOS ANGOB . a. and particularly the use of cash of the acquired company to pay for the acquisition, are unsound, dangerous practices, Stone said. ' Stone termed Monogram's third quarter profit results a "disappointment," even though sales rose to $35.9 million from $32.3 million and profits rose 73 (per share, up 55) to $1.9 million. In the first nine months of fiscal 1969, Monogram had profits of $5.3 million, or $1.21 a share, on sales of $101 million. This compared with sales of $90.8 million and profits of $4.9 million, or $1.25 a share. Net profit was up 8 but net per share, due to an increase in outstanding shares, was down 3. Major Problems Temporary Stone described Monogram's major problems as temporary. One is the decline in aerospace sales, due to delays in the Lockheed C-5A and other aircraft programs. "But that problem," Stone said, "will right itself." The major trouble is perhaps even more temporary. That was non-recurring costs from moving a large fastener plant to Mentor, Ohio from Cleveland. "It caused enormous production dislocations," Stone said. Monogram's total Investment in the new plant, he said, is about $14 million. The move costs about $4.5 million, Stone said. One "hidden problem" of some companies these days is a heavy dependence on the war in Vietnam for sales and profits. Stone said military sales contribute less than 5 of Monogram's volume, which he estimated at from $130 million to $150 million for fiscal 1969, compared with $121.4 million in the previous year. "Actually, there's no aspect of our business that we won't be doing better in than we did last year," he said. He characterized the growth of sales to the aircraft industry, however, as "very low this year." ' Sanitation equipment sales are growing very rapidly, Stone said, and the insulating business is also growing rapidly. GENERAL the information about Coleman's 21 associates was filed with them and with the Nevada state agency, but both authorities said they would continue their investigation of Parvin-Dohrmann. National General, originally a movie theater chain operator, has spread its interests into movie production, book publishing and a savings and loan firm. It also controls Great American Insurance Co. through a holding company, Great American Holding Corp. of New York. Parvin - Dohrmann's stock, which had soared on the Amex earlier this year, stood at 1374 Tuesday, before sliding to 120 Wednesday and easing another point to 119 Thursday. New Smith Facility Smith International Inc. has moved to a new 11,000 square foot facility in Newport Beach. of record. PAIS SAN WA'TfTOO i Amerada, Hess Shareholders Vote Merger NEW YORK tflShare-holders of Amerada Petroleum Corp. and Hess Oil & Chemical Corp. Thursday approved a merger of the two companies at their respective annual meetings. - The merger, which is to become effective within the next 30 days, creates the Amerada-Hess Corp. with pro forma combined assets of $862 million. On the effective date, each share of Amerada common will automatically become one share of a new $3.50 cumulative convertible preferred stock. Amerada common stock held by Hess Oil & Chemical Corp. will be canceled, and each share of Hess common will become' one share of Amerada Hess common. More than 85 of Amerada shareholders approved the merger with Hess following two hours of debate at the meeting between management and shareholders dissatisfied with the merger terms. Holders defeated a motion by a shareholder to postpone the meeting for 30 days. Also at the meeting, Amerada President A. T. Jacobsen said the company expected increased oil production this year at home and abroad. He said it was too early to predict earnings for the balance of the year but said first quarter earnings were a record. ASP Purchases Stationery Firm Wolcotts, retail stationery outlet and legal blank publisher founded in 1893,' has been acquired by American Stationery Products Corp. for an undisclosed amount of cash. Both firms are privately held and both are based in Los Angeles. Annual sales of Wolcotts have been approximately $400,000, it was reported by Alan B. Jenkins, pres-i dent of the recently formed ASP. - This it NEW ISSUE Lehrnta Brothers BIyth k Co., Inc. dor Forfaa, Win. R. Ltxard Freres ft Co, Paine, Webber, Jackson ft Corns Stone ft Webster Securities Corporation Wertheim ft Co. Dean Witter ft Co. BadheftCo. Oa& Podge ft Co. Dminick eDommick, Francis L Equitable Secnret, Morton ft Co. Goodbody ft Co. HavdenStont E. F. W. E. Hutton ft Co. Reynolds ft Co, Shearson, HammUl ft Co. Incorporated Spencer Trask ft Co. 6. E Walker ft Co. Batemaa Ekhler, Hffl ROMNEY Continued from 13th Page the country. , "We must create an atmosphere in which business judgments are based on assumptions of price stability and healthy economic growth not on feverish speculation about how much inflation to allow for in the next quarter, or the next six months, or the next year," Romney said. Must Mobilize Resources' Romney also said the projected 1.5 million housing starts in fiscal 1969 are not enough. "To approach the production on levels needed we must mobilize our resources more effectively," he said. As the head of HUD, Romney said he has held meetings with labor, political and industrial leaders to discuss innovations in construction technology, identification of available land forhousingand streamlining and standar-dization of building codes This sdpertisement is neither on offer to sett, nor a solicitation of offers to buy, toy of these securities. The offering is made only by the Prospectus. NEW ISSUK 5K Convertible Convertible into EORNBLOWER ft WEEKS- GLOBE FORGAN, Wit R. STAATS MCL BACEE ft CO. G00DBODT ft CO. EATDEN, STONE COODBODTtCO. eVCOfpontM REYNOLDS ft CO. WALSTCJftCOEC. ntithtr an offer to tell nor a solicitation of an offer to buy that securities. The offer is made only by the Prospectus $100,000,000 Burroughs Corporation 4 Convertible Subordinated Debentures due May 1,1994 Convertible into Common Stock at $159 per share, unless previously redeemed Price 100 (Plus accrued interest from Mir 1, 1969) Copies of tht Prospectus may It obtained in any State in which this announcement is circulated from only such of the underwriters, including the undersigned, at may lawfully offer these securities in such State. Kidder, Peabody & Co. obftoorpofftttel Dreiel Htrriman Ripley Stats Inc. Loeb, Sbotdes ft Co. Salomon Richards ADDRESS and land-use regulations. "The objective is to develop the capacity for volume production and marketing of quality housing at lower cost. We want to demonstrate that this can be done not on a theoretical basis on paper, but by actually doing it," he said. Finally, however, there is need for money to get. the programs going. "The original $25 million in $20,000,000 Subordinated Debentures Duo May 1, 1989 Shares of Beneficial Interest at $25.23 per share, unless previously redeemed. Price 100 is accrued interest iron May 1, IS Cortes of the Prospectus may be obtained from undersigned ss may UwfuUy offer these securities FUPHE X PAKE, aBOOtpOfttl SSEABSON, BAUMILL ft CO. la eerp sealed lAIElLLIimEEIUnCEARCS Goldmaa, Sachs ft Co. Eastman Dillon, Union Securities ft Co. Honblower ft Weeks-Hraphifl, Noyes Merrill Lynch, Pierce, Fenner & Smith Brothers ft Hutzler Mitchnm, JonesJTempIeton Lester, Ryons ft Co. Ffi.,Mayl6J 969-PartHfrj .. . ... ... . .. - contract authority which! was released in last year1! final supplement appnv J priation act was rapidly?-, exhausted and in some' offices as early as Janua4 ry," he pointed -out. The' authorization was. part of; a program of assisted home ownership. While he said he was not!' being critical of Congress;' he urged authorization off funds for these projects? immediately. " DO YOU KNOW HOW TO READ AN ANNUAL REPORT? Elsewhere In this Issue of tha Lea Angetee '. Times, severil eerporatiena etfar to sand you copies ol thalr annual reports. As an -investor or potential investor, you may be Interested In sending for one or more of these reports. We'd like to help you by, ottering to aend you, without obligation, the authoritative booklet, "How to Read an Annual Report." It's essy reading Itself, and it will help you to analyze better the companies In which you are Interested. A call to our Los Angeles office will bring you copy of the booklet. J. HENRY HELSER & CO. Investment Managers Since 1932 : Union Bank Bldg., 3810 Wllshlra Blvd. ' Los Angeles, Calif. 90005 384-2121 - May 18, 1969 " such of the in this State. NOTES WEBBER, JACKSON ft CURTIS W.L BUTTON ft CO. & H. WALKER ft CO. laeeipeiated LESTER, RYOKS ft CO. May 16, 1969 Smith, Barney ft Co. White, Weld ft Co. Paribas Corporation dnPont, A. C ADyn, Inc. Hutton ft Company Inc. Shields ft Company Iiscofpocstod Walston ft Conine Crowell, Weedon ft Co.

What members have found on this page

Get access to

  • The largest online newspaper archive
  • 15,600+ newspapers from the 1700s–2000s
  • Millions of additional pages added every month

Publisher Extra Newspapers

  • Exclusive licensed content from premium publishers like the The Los Angeles Times
  • Archives through last month
  • Continually updated

Try it free