Independent Exhibitors Film Bulletin (1962)

FINANCIAL REPORT Vlovie Shares Show Improvement, With Cinerama and M-G-M in Lead While it may be premature to assume that the bears in the tock market have been routed, there are definite signs that hey are meeting stiff resistance from buyers. This is particularly rue in the case of motion picture shares, which have been makng a steady recovery from the year's lows. In the two weeks' pan of July 19-Aug. 2, ten of the 18 issues covered in the Film BULLETIN chart advanced, six showed minor declines, two /ere unchanged. In the wake of the highly successful press interview of "The Wonderful World of the Brothers Grimm", and amid anticipaion of its premiere this week, both Cinerama and M-G-M, joint wners of the first Cinerama production with a story, advanced martly. Cinerama, on a huge turnover of 317,800 shares moved p 3 points, while M-G-M rose U/j. One of the losers was Oth Century-Fox, off 1%, following the realignment of its lanagement team and board of directors. It was reported that 3me of the banking interests involved in the company's affairs uring the past year or so were quietly unloading their holdings, heatre issues registered well, four of the five exchange firms sted showing increases for the fortnight. Best performers ere AB-PT, up 1% on a volume of 75,400 shares, and Transux, rising iy2. Both recently announced improved profit atements. Columbia preferred was the biggest loser among film shares, ropping 3 points. Joldenson Sees Theatre Pick-up Theatre business of American Broadcasting-Paramount is xpected to join the bandwagon of the firm's increasingly profitble operations during the second half of 1962, according to resident Leonard Goldenson, who announced a record seconduarter net profit. While the boxoffice was off in the first half, ie topper predicted a strong theatre period and a higher level f business throughout the balance of the summer. Estimated net for the second period hit a high of $2,511,000 (57c per share), compared to $2,269,000 (52c) for the similar 1961 span. Estimated net for the first six months was $5,553,000 ($1.27), against $5,694,000 ($1.31) a year ago. EXECUTIVE STOCK TRANSACTIONS Heavy activity in Decca Records capital stock, in connection with the exchange of that issue for MCA, and Warner Bros, common highlighted security transactions of officers and directors of film and theatre companies for the period June 11 to July 10, 1962, as reported by the SEC. MCA acquired 1,241,815 shares of Decca via the exchange and added 13,100 more for a total holding of 1,254,915. Universal Pictures, in the exchange, disposed of all of its 241,700 shares beneficially owned. Officer Milton R. Rackmill did likewise with 1,713 Decca shares owned directly and 18,600 held as a co-trustee. L. W. Schneider, an officer and director, disposed of 1,537 shares in a similar manner. Also exchanging their full Decca holdings were L. Buchner, an officer (800); Milton Gabler, an officer (100); Martin P. Salkin, an officer and director (100); Samuel H. Vallance, a director (100), and Samuel Yamin, an officer (400). Sales were recorded by three officers of Warner Bros, while president Jack L. Warner continued to add to his huge holdings in the firm. Herman Starr sold 4,100 shares, leaving 21,000; Benj. Kalmenson disposed of 6,200, leaving 60,000 and Wolfe Cohen sold 5,000 to leave 15,000. Warner acquired 3,700 shares to raise his total to 1,133,260. Spyros P. Skouras, as an officer and director of 20th-Fox, bought 2,000 shares and sold 1,615 to leave 82,760. Robert L. Clarkson, a director, sold 500, leaving 540 . . . Roger W. Hurlock, a director of Allied Artists, picked up 900 shares to lift his holdings to 33,100. J. M. Sattinger, a director, acquired 100; he now holds 200 . . . Columbia officer Rube Jackter disposed of his entire holdings of 2,196 and Alfred Hart, a director, acquired 1,000 shares held through Fico Corp. to raise his total thus held to 82,157 . . . Paul A. Porter, a director of Cinerama, purchased his first 100 shares in the company . . . Robert Mochrie, an officer of M-G-M, sold 900 shares, to leave 950 . . . Irving H. Levin, an officer and director of National General, (Continued on Page 14) i u mis Stung Hi>gt<»gg'4>4t Interest in 3iog'ie9 Theatre Storks: it<>< < a J Favored After having been romanced heavily by Wall Street, and subsequently rebuffed, movie stocks once again are attracting investor interest. Taking into account all the chancy variables, from star salaries to censorship, advisors and their clients are turning increasingly to the belief that the realization is worth the risk. Casting an especially come-hither glance at cinema shares of late have been the mutual funds, which, true to form, bought avidly during the recent general market decline. According to Arthur Wiesenberger & Co., which made a survey of stock purchases and sales of 28 leading investment companies in the second quarter, movie shares were highly favored in many portfolios. American Broadcasting-Paramount Theatres was the mutual funds' favorite among film and theatre issues. Five firms acquired 52,936 shares of AB-PT, and there were no sellers. Adding the theatre listing to their holdings were Dreyfus (32,100 shares) Madison (10,000, a new commitment), Financial Industrial, Television Electronics and Eaton & Howard (the latter three in lesser amounts). Dreyfus purchased 26,300 shares of Disnev, and there was one minor sell-off of this company. Colonial Fund picked up 16,000 shares of Decca, while one firm disposed of some of its holdings in the Universal Pictures parent. MCA, whose merger with Decca is being opposed bv the Justice Department, was another fund favorite. Dreyfus bought 24,600 shares, and Institutional Growth added 4,200. The only significant sale was consummated bv Dreyfus, the most active fund in the movie field, when it lopped off 10,752 shares of Columbia Pictures. Film BULLETIN August 6. 1962 Page 11