Independent Exhibitors Film Bulletin (1962)

FINANCIAL REPORT Movie Market Down Sharply In Tune with Bearish Trend Metro-Goldwyn-Mayer and American Broadcasting-Paramount fell the hardest, as the movie market slumped in tune with the general bearish trend that dragged averages down in the past fortnight. Thirteen cinema stocks plunged, while only five were up. Amid downbeat talk concerning the high costs of filming "Mutiny on the Bounty," and disappontment over the processing deal with Kalvar Corp., Metro fell 2% points to a new 1962 low, regained li/g a few days later, but lost on closing day to finish 4% off on a huge turnover of 115,400 shares. AB-PT, beset by network programming troubles that resulted in replacement of top banana Oliver Treyz, fell steadily over the two-week span, closing 6l/4 points down. Concurrent with continuing rumors of an impending merger with MCA, and smart performances by Universal product, Decca Records (U parent) advanced smartly in the last five days to brighten a cloudy movie picture by gaining 2% on a turnover of 82,700. After moving rather inconclusively for most of the session, Cinerama jumped 2 points, then lost ll/8 to record a total rise of 1%. Trading was heavy here, too, 84,900 shares changing hands, as interest mounted in the upcoming release of the first Cinerama-M-G-M co-production. National General attracted plenty of interest, moving up 11/4 on a tremendous turnover of 194,000 shares. Loew's also advanced l'/g. On the downside, Columbia declined steadily, save for a mild late rally. It finished II/4 off, despite an increase in the sixmonths' net, but possibly because of revelation of a new $20 million loan that listed certain restrictions on the firm's capital and dividends. Stan ley -Warner was down 1%, as it announced a sharp drop in first-half profit. Other losers: Disney (1%); Paramount (l'/s); 20th-Fox (iy2), and United Artists (H/2). Hold Movie Stocks — Bache The latest opinions on movie stocks in the Bache Selected List indicate they should be held, for the most part, for long and intermediate term appreciation. The chanciness inherent in cinema issues, of course, moves the investment firm to label all of them either of medium or speculative value. United Artists is looked upon most favorably, the advice reading thusly: hold for long and intermediate terms, buy for income. The stock is rated of medium worth. On the other hand, 20th-Fox's chart (a speculative rank) is hold for long term, switch for intermediate. Advice on Loew's Theatres is buy for long term, hold for intermediate; it, too, is rated a speculative stock. Others, and their rankings: American Broadcasting-Paramount (speculative) — hold for long and inter ( Continued on Page 19) M-G-3§9 !##>#•#•#! 1/osY Heavily Traded Film Shares in First Quarter af 902 The most heavily traded movie stocks for the first three months of this year have been Metro-Goldwyn-Mayer and Decca Records (Universal parent), with National General (formerly NT&T), Cinerama and Loew's Theatres also showing big volumes, a tabulation of New York and American Exchange figures reveals. Fluctuating widely in recent weeks, and currently selling near its 1961-62 low because of some production disappointments and downbeat reports about its deal with Kalvar Corp., M-G-M has recorded a huge turnover of 639,900 shares since the first of the year, far outdistancing its nearest rival for top honors. February was Metro's most active month, but talk of "Mutiny on the Bounty" budgetary woes spurred selling in the issue right up to deadline (March 29). Wall Street interest also has been centering around Decca Records, Universal Pictures' representation on the Big Board, and the bullish tone in this issue is accounted for by several strong releases and reports of the soon-tobe-announced merger between Decca and MCA. They say negotiations are progressing rapidly, and this, coupled with big grosses on "Lover Come Back" and "Flower Drum Song'' is fanning investor enthusiasm. The stock has traded 393,900 shares since January 2, almost half the activity registered in the month of March. Decca's price too, is just about at the 1961-62 peak. National General currently is a "hot" item, apparently following its name change and announcement of plans to revitalize the organization. In the first three months of '62, 467,900 shares have changed hands, with the bulk of the volume (194,000 shares) coming during the past fortnight. The stock now is trading a shade below its 1961-62 high. Interest in Cinerama is perking again, as the issue trades not far off its 1961-62 high. Starting off 1962 with a spurt of activity, the stock sold at a less furious pace until the past fortnight, when Wall Street apparently began to look toward the impending release of the firm's two feature story co-productions with M-G-M. Total shares changing hands since January 2: 361,900. Much the same situation prevails in the case of Loew's Theatres, which is attracting Wall Street attention again, thanks to some looked-for hotel income and plans for a general firming up of the company's theatre activities. Most heavily traded session thus far in '62 was the first fortnight, but the past two weeks have seen a resurgence of investor interest. Presently almost touching its '61-62 zenith, Loew's has traded 327,100 shares in the first quarter of this year. Amid a furore created by a change in its network presidency, AB-PT traded heavily during the past two weeks, but slumped to a '61-62 bottom. Since the beginning of the year, the stock has traded 195,900 shares. United Artists, rather lightly traded (141,400) and hovering a shade under the midway point between its '61-62 high and low, figures to take off in style after Academy Awards night, when its raft of nominees cop some expected prizes. Interest also seems to be picking up in Stanley Warner (125,100 shares). Other issues and number of shares traded since January 2: 20th-Fox (214,500); Columbia (1 16,500) ;Walt Disney (96,700); Paramount (94,700); Allied Artists (87,800), and Warner Bros. (79,900 for both the old and the new, post-split stock). Page 6 Film BULLETIN April 2, 1962