Television digest with electronics reports (Jan-Dec 1956)

14 Financial & Trade Notes: Television-Electronics Fund Inc., first and largest of the investment trusts in the field, reporting total net assets of $129,091,464 with 10,604,097 shares outstanding as of April 30 vs. $112,791,246 & 10,266,280 shares as of last Jan. 31, added no new issues to its portfolio during the quarter and disposed of its 2700 shares of General Controls and 6500 Speer Carbon. Treasury bond holdings were increased by $1,000,000 for total of $4,000,000, other bondholdings being $80,000 American Electronics, $188,000 AT&T, $200,000 Electronics Corp. of America, $150,000 Litton Industries, $372,000 RCA, $200,000 Servomechanisms, $100,000 TelAutograph, $150,000 Tracerlab, $63,000 Varian Associates. Fund added to holdings in following stocks during quarter: ACP Industries, Amphenol Electronics, Bendix Aviation, Boeing Airplane, George W. Borg Corp., Chance Vought Aircraft, CornellDubilier, Cutler-Hammer, Douglas Aircraft, Dresser Industries, Eaton Mfg., Pood Machinery & Chemical, Priden Calculating, Garrett Corp., General Bronze, General Dynamics, General Mills, General Tire, Goodyear, Hazeltine, Hoffman, IT&T, Lockheed Aircraft, P. R. Mallory, Marchant Calculators, Neptune Meter Co., North American Aviation, Philco, RCA, Reliance Electric, Royal McBee, Ryan Aeronautical, Sprague Electric, Stewart-Warner, Telecomputing Corp., United Aircraft, Unlted-Carr Fastener, Westlnghouse Air Brake, Zenith. Part of holdings were sold in Admiral, Aircraft Radio, Babcock & Wilcox, Beckman Instruments, Bell & Gossett, Borg-Warner. Burroughs Corp., CBS "A”, Consolidated Electronics, Consolidated Electro Dynamics, Curtiss-Wright, duPont, Eastman Kodak, ElectroData Corp., Electronics Corp. of America, GE, General Telephone, Globe-Union, Gross Telecasting, Hammond Organ, Indiana Steel Products, IBM, International Resistance, Magnavox, W. L. Maxson, Minneapolis-Honey well. Motorola, National Cash Register, Sperry-Rand, Square D Co., Storer Bcstg., Sylvania, TelAutograph, Thompson Products, Tung-Sol, Warner Bros., Western Union, Westlnghouse. Unchanged during quarter were holdings in AddressographMultigraph, Aerovox, Allis-Chalmers, AB-PT, American Chain & Cable, AT&T, Barry Controls “B”, Bell & Howell, Bullard Co., Bulova, Carborundum Co., Chemical Products Corp., Cincinnati Milling Machine, Clark Controller, Clevite, Columbia Pictures, Conrac. Continental Telephone, Corning Glass, DuMont Bcstg., DuMont Labs. "A”, Eitel-McCullough, Electronic Associates, Elgin National Watch, Elox Corp. "A” & “B”, Emerson Radio, Erie Resistor, Ex-Cell-O Corp., Federal Sign & Signal, General Railway Signal, Gianninl, Industrial Electronics, International Nickel, I-T-E Circuit Breaker, Llquidometer Corp., Litton Industries, Machlett Labs., Minnesota Mining & Mfg., National Acme Co., Northrop Aircraft, Oak Mfg., Otis Elevator, Paramount Pictures, Penn Controls, Photon Inc., Pullman Inc., Raytheon, RobertshawPulton Controls, Sangamo Electric, Servomechanisms, Taylor Instrument, Technicolor, Television Associates, Texas Instruments, 20th Century-Fox, Union Carbide & Carbon, Vitro Corp., Walt Disney, Worthington Corp. [For report on Nov. 1-Jan. 31 quarter, see Vol. 12:9.] * ❖ * Walt Disney Productions, reflecting continuing upsurge since last year’s plunges into TV, enjoyed total income of $12,859,321 and net income of $1,418,850 ($2.17 per share) in the 6 months ended March 31, comparing with $9,676,175 & $430,048 (66^) in same 1955 period, $4,331,827 & $283,662 (43^) in 1954 period. Latest report, pres. Roy 0. Disney stated, does not include company’s interest in Disneyland Park (in which it holds 35% of stock, with option on 31% more) and reflects good earnings on “Davy Crockett,” “Lady & the Tramp,” “African Lion” and “Littlest Outlaw” as well as on merchandising licenses, publications, music, etc. Bank borrowings have been increased to $9,313,852 as of March 31 from $2,695,572 last Oct. 1 in order to finance heavier production schedule, and Disney said plans are to secure long-term permanent financing to replace curi'ent borrowings. Kay Lab, San Diego, making small vidicon cameras for TV stations and for industrial uses, manufacturer also of TV studio and other electronic equipment, filed SEC registration May 23 for 364,280 shares of its $1 par Class A common stock, of which 307,400 are to be offered for public sale through Shearson, Hammill & Co. and 56,800 to certain stockholders. Of net proceeds, $455,361 is to be applied to payment of loans, $343,700 for accounts payable, remainder for working capital. Negotiations for working control of Republic Pictures are being conducted by Beverly Hills investment firm of Cantor, Fitzgerald & Co., which has 60-day option to buy contiol through j)urchase of 650,000-800,000 shares at $12.50 fi’om pi es. Hei'bert J. Yates and his associates. Crowell-Collier Publishing Co., newest big entry in multiple TV-radio ownership field (Vol. 12:17), has revised offer to purchase public stockholdings of Consolidated Television & Radio Broadcasters Inc. (Bitner group) which originally gave stockholders option to sell either in cash, part cash or part exchange of Crowell-Collier stock. Pres. Paul C. Smith, in letter to common and B common stockholders, states that there has been almost no interest in alernative offers of securities, which would require SEC registration and entail considerable expense and delay, and so he now makes cash offer of $20 a share less 50^ commission to exchange agents (Chemical Corn Exchange Bank, N. Y.) and states Consolidated will be liquidated. Special deal has been made with Bitner group to acquire its 258,060 shares (42V2%) for $19.50, payable $3 in cash on closing and $16.50 in notes payable $2 on Jan. 2, 1957 and remaining $14.50 in equal installments over 8-year period at 5% interest. Crowell-Collier board has ratified Consolidated purchase, involving total of about $16,000,000 for its 3 TVs and 4 AMs, and also approved $1,000,000 purchase of KULA-TV, Honolulu, with KULA — all subject to FCC approval. Paul F. Harron’s WPFH Broadcasting Co., which operates radio WBIG, Philadelphia, and last year purchased WDEL-TV, Wilmington, Del. (Ch. 12, now WPFH) for $3,720,000 (Vol. 11:4), filed registration with SEC May 25 of 1,243,404 shares of $1 par Class A common, 1,953,721 shares of $1 par Class B common, and $80,125 of 5% subordinated income debentures due 1960. All are issued and outstanding except 150,000 Class A which company proposes to offer for public sale at 1 % ; in addition, Harron will sell 125,000 shares of his Class B at over-counter price at time of offering by Boenning & Co., Philadelphia. Harron holds 949,109 Class B, Judge John Morgan Davis 80,713 Class A stock. Net proceeds of the Class A stock sale will be used for corporate purposes. Dividends: Philco, 20^ payable June 12 to stockholders of record June 4 (reduced from 40<? first quarter because of lower earnings [Vol. 12:18] and to conserve working capital); Sylvania, 50^ July 1 to holders June 8; Hoffman Electronics, 25^ June 29 to holders June 13; Wells-Gardner, 20^ June 15 to holders June 4; Radio Condenser, 5^ June 20 to holders June 1; Sprague Electric, 30^ June 14 to holders May 29; Consolidated TV & Radio, 28^ on common and 5^ on “A” common, July 2 to holders June 15; Famous Players Canadian, 37%^ June 25 to holders June 1; Sperry Rand, 20^ June 29 to holders June 4; Globe-Union, 30^ June 9 to holders June 6; Dynamics Corp., 10^ June 30 to holders June 15; Gabriel Co., 15^ June 15 to holders June 8; General Electric, 50^ July 25 to holders June 15. Changes in officer-director stockholdings, as reported to SEC: Ross D. Siragusa bought 1000 shares Admiral, bringing direct holdings to 246,467, trust holdings to 69,808; Arthur Levey disposed of 550 Skiatron common, holds 444,771; Titus Haifa bought 25,000 Webster-Chicago (Webcor Inc.), sold 4305, holds 28,175 (3175 jointly with wife) ; Arnold 0. Beckman sold 10,000 Beckman Instruments, holds 455,833; Harold R. Baxter sold 1000 El-Tronics Inc., holds 107,810; Donald W. Hedges sold 1000 ElTronics, holds 48,340; Thomas P. Tanis sold 81,000 ElTronics, holds 10,500. Globe-Union, Milwaukee, and Wico Electric Co., W. Springfield, Mass., have agreed to merger on basis of transfer of Wico’s assets for 105,250 shares of Globe-Union stock valued at $2,000,000. Wico, whose sales last year were $4,800,000, makes ignition equipment for outboard motors, power lawn mowers, etc., will be operated as division of Globe-Union, which makes automotive batteries and electronic components and did business of more than $50,000,000 last year.