Independent Exhibitors Film Bulletin (1959)

FINANCIAL BULLETIN APRIL 27, 1959 By Philip R. Ward MILESTONE. Relatively young Dow Jonesmen should have no trouble recalling the celebration attending the then monumental break-through at 400 — Wall Street's first four minute mile. And if to their own selves they are true, they may even remember that 500 was unthinkable, 600 positively spiritual, something with which to join St. Augustine, dim pinnacles of faith, the essense of the things hoped for, the substance of things never seen. And now the aloof Everests have been rendered and mere mortals look back and wonder how they couldn't have known. And they assay the skies and they begin to tremble anew. 0 In the stock market's sub-world of movie shares, the first of the mighty pinnacles has been scaled — or so it would appear according to the mercury level of our own little barometer for such things: the Film BULLETIN Cinema Aggregate. And there are those who actually decry the achievement — among them learned investment counselors. They say beware, prices are dangerously high. It has thus become a mistake to grow, a sin to achieve. What utter nonsense! On the 25th day of March this year, the shares of leading movie companies reached a milestone. As a group they crashed through the psychological curtain of 200 in the Cinema Aggregate, a measurement which readers may know was once the awesome equivalent of the celebrated Dow Jones 600. March, the full month, was concluded with the following readings: Film Companies 204l/2 Theatre Companies 443/8 Never before have film company shares been so high. The March Cinema Aggregate is only two points short of doubling the measurement of January 1, 1958. As of this writing, the ascendancy continues and by the April close will most certainly show another major gain. The rate of progress may be gleaned from these figures dealing with monthly point gains since the first of 1959. January up 1% February up 51^ March up 9V2 As is, March, 1959, marked the 12th consecutive month in which film companies have advanced in the Cinema Aggregate. 0 Stock marketwise, it is correct to declare that movie business has effected a major recovery. Twelve months is adequate time to sample and pronounce a trend. If net income has lagged somewhat behind the pace of stock growth, this condition in no way detracts from the slower, nonetheless positive, recovery in this area. Recent profits have run a rising course, in some cases spectacular. We fully anticipate a continuation of thl trend and a movement toward newer milestones. o 0 OF PARAMOUNT CONCERN. Although Paramount Pictur shares continue to perform with customary pluck, apprehensi may develope among supporters as the result of the firm's u impressive fiscal 1958 income report. Disturbing is the di closure that though consolidated income breaks down to $7.lj per share (as opposed to $2.80 in fiscal 1957), $4.55 represen "special items income ". Eliminating the latter, non-operationa profit — comprised in the main of revenue from the sale of it; old films to TV — 1958 per share income is reduced to $2.60 This, an observer of this company must aver, is a truer yard stick of Paramount's current operational progress. It is hopet that the concern can overcome its "Ten Commandments '-conl plex, a managerial neurosis that derives from two years of riding the coat tails of this one spectacular grosser at the exJ pense of the balance of the picture inventory. Paramount"! financial resources, long one of its key cushions, is today aboil its only one remaining. We cannot be enthusiastic about thil company's immediate prospects in the movie field. It's produq tion set-up seems weakest among the top major film firms. 0 0 NEW GROWTH FOR 20th-Fox. Those of a statistical or ana lytical bent will find fascination in Hill, Darlington & Coml pany's (NYSE) April 14 "Investors Timing Guide," featuring' 20th Century-Fox. The less scientific will be able to gather! from the comments and the chart below the general conclusion that a new growth pattern looms which might carry 20th to ad ultimate price attainment of 65. This is what Hill, Darlington! have to say: "The price action study of this security covering the past 7 3 ■ years detailed below (see chart) comprises a historic cyclm which, has now revolved up to within striking distance of thM calculated 1st objective. Laterial measurement of the tnammotIM saucer bottom projects the ultimate attainment of over 65M Public assistance to this advance may be forthcoming en-masm if current reports concerning property liquidations are com firmed in the press. Stock may be purchased for general invests ment and trading accounts at the present market price. Bloca of firm consolidation at 40 should resist declining tendencies.'} Pig,, 8 Film BULLETIN April 27, 195?