Independent Exhibitors Film Bulletin (1954)

FINANCIAL BULLETIN JANUARY 25, 1954 By Philip R. Ward THOSE FAT LEGAL FEES, arising from anti-trust litigations, which have encumbered operating statements of film companies for the past decade, should be pruned-down somewhat this year. Furthermore. jeo])ardy from triple-damage c!aim3 is likewise reduced. By ruling that '"parallel business behavior"' does not constitute violation of Sherman Act, the Supreme Court clearly narrowed the limits of possible damage actions. The case in question turned on the position of eight distributors in refusing to sell a "first run " fdm to the Crest Theatre in suburban Baltimore. Opinion was that similarity in sales jjolicy is not enough to prove conspiracy. O 0 BEST GAIN IN STOCK MARKET for 1953 was rung up by Allied Artists. Issue appreciated better than 90% over its close of 1952. and continues to sail merrily along, despits current paucity of product. Standstill in production stems from maturation [)ains as studio enters the transition between minor and major league operations. A thorough re-orientation of ])olicy and objectives is now underfoot. Company is seeking to initiate a program of profit-participation schemes involving some of the top production talent and screen personalities in the business. (See Studio Size-Ups Section this issue for details ) . 0 0 THE SLAPPING DOWN of censorship doctrine in New York and Ohio by the same high court, might have broad economic significance, if you infer from the decree that later judgments may lead to abolition of political pre-censorship entirely. Foreign producers, mainly French and Italian, are clucking like hungry hens over the prospect of dumping some of their goods, heretofore considered salacious, on the New York artnouse markets. This will be a gravy-train ride, since this particular stockj)ile of films dates back as far as five years, and costs have been recouped on the non-American runs. 0 0 TWENTIETH CENTURY-FOX may alter its capitalization by buying into the market and retiring a block of common stock. The reduction in film inventory has improved the company's cash position and makes this move possible. I'nder this plan, a.ssuming current profits hold or improve, dividend rate t-.s well as market value of outstanding shares will be hypoed considerably throughout "51. Similarly, a continuation of heavy irading volume on a smaller number of shares will induce the issue to respond more galvanically. All in all. it looks to traders like 2()th's best year since '16. ' O O mer(;er i',etween decca and IM\ERSAL PIC Tl RF.S becomes more and inon certain as the disk com|)any (ontituies its appan nt (•am|)aign to swallow the film-maker ivhole. Decca, which already holds more than 60% of I niversal's outstanding common shares, now offers a stock-swap: two shares of Decca for one Universal. L^niversal earnings will represent at least two-thirds of Decca's total income for 1953. which should amount to two million. O 0 LOEW'S is PEGGED FOR PRICE APPRECIATION by several New York firms. This corner concurs, as it has before, on condition that '54 releases show improvement over last vears' fare. At 14, issue is still undervalued, with 30 films on tap for the fiscal year, 24 in color. While the year long net dipped to 85 cents per share from 91 cents, the first quarter of the new fiscal period (ended Nov. 26) shows per share earnings of 22c, compared with 6c for the prior corresponding period. 0 O IN THIS THE GOLDEN AGE of stockholding bellyachers, comes news as refreshing as an August breeze. Stanley-Warner's first annual affair come and left with nary a squeal of pain. Profits, to be sure, are on the upswing. Company earnctl a net $523,117 after all charges in its last quarter after suffering deficits in its two prior operating periods. Since the corporation began business on March 1, 1953 in line with the anti-trust decree, there is no clear basis for comparing its lecent profitable quarter with similar period last year. But President S. H. Fabian reports a gain in receipts between the '52 term and the last report. An upbeat prognosis highlighted Mr. Fabian's annual re])ort. He credited last year's technical revolution as the chief benefactor for the new bull market in motion pictures. Cinerama— of which SW controls 90% was extolled by him as paving the way "for the development of an entirely new motion picture industry". 0 O INCIDENTAL INFORMATION for would-be stock investors: A prominent New York Call house (for the Breen Office, a dealer in stock options) is offering "calls" on 20th-Fox stock at 2014 for $300.00 per 100 shares. Term expires April 19. The "call " and its companionpiece, the "put", are tricky, little known devices that enable investors to bet on the future without shelling out for the cost of the stock. In buying a call yon contract for an option to buy stock at a future date at a price set at the time of the contract. Therefore, if you're bullish on 20th. you can make the difference between 23^/4 (201/4 phis S300) and anything higher, between now and the expiratioji dale. In taking a put, you contract to sell later on at todays |>rice, so you're betting on a drop. If things go the wrong way for you, the option is not exercised, and the worst vou do is lose the cost of the put or call contract. cniVoSVAi J^LciJ^cc ?-,fi w'' c"*^* '^"f.*-'' P"'''''''ed every other Monday by Wax Publications, Inc. Mo Wax, Editor and Publistier. PUBLICATIONEDITORIAL OFFICES: 1239 Vine Street, Philadelohia 7, Pa., RIttenhouse 6-7424; Barney Stein, Managing Editor; Leonard Coulter, New York Associate Editor; Richard N. N.wton. Business Manager; Robert D. Lauder, Publication Manager; Robert Heath. Circulation Manager. BUSINESS OFFICE: 35 West 53rd ld>« ' .Tk ° . '' b^/ ,?mc'''vc*Id'"<,^P!-'-T°P° Haverford Avenue, Pacific Palisades, Calif., EXbrook 5-5949; Jay Allen Hollywood Editor, Subscription Rates: ONE YEAR, $3.00 in the U. S.; Canada, $4.00; Europe, S5.00 TWO YEARS: $5.00 in the U. S.; Canada. $7.50; Europe, $9.00. Page 8 FILM BULLETIN January 25, 1954 I