Variety (Mar 1927)

Wednesda; y, March 16, 1927 PICTURES VARIETY II FILM MERGER TALK GOVERNS PRICES OF AMUSEMENT STOCKS Two to Benefit Are Universal and Pathe, Latter Mentioned in P. D. G.-Keith Deal—Famous at 109 "ex"—Loew at New Top, $62% In prospect, mergers of and mergers that are still only of vague material, governed the shifts of prices in the stock market over, the week. The out- standing development of yesterday was the sudden Jump of Loew, Inc., to a new high for all time at 62%. practically the exact level Indicat- ed in the bond dealings of the same company. At the same time Famous Play- ers came out around 109 during the last hour, selling "ex div." and practically net unchanged over- night, having closed at 111. The market went through the day and merely subtracted the 12 quarterly from the previous price. Early Selling in F There were indications of selling at the opening by discouraged hold- ers of Famous, discontented with Its long Inaction. Orders had ap- parently accumulated over night and under pressure of offerings at the gong the first price on the tape was 108%. It is likely that long holders for a rise had merely waited to collect the current dividend and then let go. From the early low the stock advanced about a point and then steadied to about net un- changed at 9%. If the early low represented the retirement of old longs. It may have been Just that that the pool was playing for. After the opening support was in evi- dence either fram the clique or from the Times Square crowd that per- sists In regarding the stock a buy at and below 110. Merger talk occupied the players in the group. The Stanley-First National-West Coast deal appar- ently started It and then the Kelth- Orpheum-Pathe-P. D. C. carried It further. Oddly enough Stanley selling on the Philadelphia Bourse received no benefit from the talk. It moved around 83 Monday, com- pared with a recent high above 90. Buying broke out In the unexpected quarter of Pathe Exchange Class A, which mounted from early last week nearly 10 points to a Monday high of 48, which It held yesterday In a general way. . .. .jl Drawn In Another stock that leaped into life was the junior Universal Pic- tures issue dealt in on the New York Curb. This made a new top around 45, having now accom- plished the so-called "double peak." About two months ago it Jumped on heavy dealings to better than 44 and then dropped back In the ruck. Apparently something was ex- pected to happen then, but failed to come through. Perhaps the same happening, whatever it may be—is again in prospect. This may be some sort of a merger. One of the financial commentators arranged a unique consolidation on • paper a few days ago. By the sim- ple system of noting that both Loew and Universal were pushing out ahead of their group, this economist reported talk of a grouping of Loew, Universal and United Artists. The report was promptly denied, but the pastime of building fanciful movie combinations so intrigued the mar- ket that probably every possible and many impossible groupings were figured out. One wild-eyed rumor courier was to bo heard debating in one of the customer's rooms of the possibili- ties, long since ignored in the trade of a possible Loew-Famous Players consolidation. This revived loose talk over the past two months of a two-for-ono deal in Loew and Fa- mous Players stock as the two Is- sues—one drifting down and the other climbing—approached some- thing like such a parity on the ticker. Loew Bonds Active In some way that is not apparent on the surface there Is an opera- tion going on which involves the Loew Bonds. These are maintain- ing their best levels of 105 with warrants attached and 97 "ex-war." But the significant point la the be a small and inactive investment security. Last week sales of Loew bonds approximated $1,000,000, com- pared to about $35,000 in Keith 6's. which is a larger issue. Elsewhere there was nothing out of the ordinary. Fox was Ignored marketwise, although in the trade it was pointed out In editorial views that Fox might easily become an Important factor in any of the mergers under discussion. The stock was stationary around 68-69. Shubert behaved very well under comparatively heavy dealings ad- vancing to nearly <5, compared to its best for this (192?) year of 66. Its improvement, by the way. be- gan with the day It went "ex," March 1. Before that It had gotten down to around 56. Ordinarily then would be something fishy about this from the angle of clique opera- tion. The Famous Players-Lasky an- nual statement is published else- where in this issue. It shows net profits for 1926 at the rate of $10.65 for the outstanding common. Summary to Saturday. Man h 13: STOCK EXCHANGE High 13!>'i in-. 1M« 1113 -■>;■. 13 34% u% m 48* 8* 23% m 4.1% 33% 99>, 105', I.OW. 130% 107% 120 US K, 4«% 24% l>% SO*. 37 Ki% 98 37% 42% 4% 20% Salea. Iaaue and rate. High. 11,900 EaMman Kitalak (8) lv.< ., 14,400 Famoua IMayera (10) US ♦no do . peat. <s> . . in None Flrat National 1st pref. (9 44) II ••►» Foi Films claaa A 14) «••. 114.200 ]*,. w (3) 01% LHiO M-Q-M. let pref (1.89) 2.V, 900 Mot. k'lct. Cap. (1) 11% 2.WJO Orpheum (2) 33% 7«.nO0 Pathe K«rh . claaa A (3) 23.400 Khuhert (3> None Univ. Plct. (8) 13.400 Warner Broa P.. claaa A.... 4.1% 39% CURB 4.300 American Seat <4) 3.000 Fox Theatre*, claaa A 200 United A nut a Theatre Circuit. I w 132 110% 120 V, 10% 32% 43% 7% 20% Laat. 139% 111 121 103 68% SO* 23% •11% 33 44% B4% 101% 38% Net Chge + 7% - % + % +v% 4 4* - % + 1 + % 49 -13% 7% n. Unlveraal Picture*. ss i M - % + % + % +i +5% BONDS 98 101 $11,000 Keith 0'a (Stock Bach.) 98* 787.000 Loew S'a (Stock Each ) (tee note) 10S% •8% 104 104% - % + % • Ex-dlvidend. NOTE.-Loew ei-warrant. eold Wl.OOO at 98% to 97%. Air Flight Pictures Los Angeles, March IS. A picture based on the around the world flight made by American a\lators a few years ago will be made by United States Aviation Productions, a specially organized company. Lieut. Leslie Arnold and Crelgh- ton Hale will be featured with Al Neitx directing from a script pre- pared, by Lieut. Arnold. Others in the cost Include Vir- ginia Brown Falre, Stuart Holmes, David Torrence, Bull Montana, Charles French, Ernest Sheilds and Jerry Mandy. Gertrude Short Sued Ventura, Ca!., March 15. 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