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Technical Market Action After five successive days of higher closings, the market worked lower on Monday. The industrials closed dOl'!l 2.39 at 167.50 Vlhile the rails were 1.05 lo,ler at 48.53. However, considering the size of the reaction, the volume, at 810,000 shares, was smnll. Lack of buying power, rather than selling pressure, seemed to be the major factor in the sell-off. At the close prices wore rallying midly. See no change in the technical pattern and continue to advise purchase, on weakness, of the twenty-five issues recently listed. Still believe the trading range of the last twelve weeks is a base or re-occumulation area. Its a lower priced specula.tion, the common stock of General Cable offers interesting profit possibilities. The technical pattern has, potentially, an extremely favornble formation. Over the past few years, the stock has a very mediocre record marketwise. After reaching 32 1/2 in 1937, the common reacted to a low of 5 7/8 in 1938. The late 1938 rally carried it back to a fraction above 19. From that point it declined to a 10 of 2 in 1942. fl. slow rally carried it back to a high of 16 3/8 this year. In the recent reaction it reached a low of 8 1/2. Present price is around 11. A recapitalization plan earlier in the year through exchange, public offering and redemption, the old 7 preferred with dividend arrears of over 50 a share and also eliminated the old A stock with 4 a share in arrears by exchanging each sh8re for four shares of common. This sharply increased the amount of common stock authorized ond'outstanding. The present capitalization is – r.uthorized Outstanding 4 Cumulative 1st Pref. (100 par) 150,000 4 CumulAtive Convertible 2nd Pref. (50 par) 150,000 (2t(Convertible into 3 common thru July 1,1951) shares thru July 1, 1956 and 2 shares thereafter) 150,000 150,000 Common (no par) ,3,000,000 1,898,614 Earnings for the first nine months .on, the common were 35 cents a share, due to a large deficit in the first quarter. However, third qUBrter earnings were 1.15 a share. Technically, the common stock has built up a potentially strong base arca in the 10-12 area and indicates a possible good intermediate rally percentRgewise. The long term pattern is also potentially favorable. The stock is one of the twenty-five issues recently recommended. It is suggested e.s a speculation viith possibilities of wide pcrcentage appreciation. EDMUND TABELL December 2, 1946 SHIELDS & COMPANY Closing Industrials 167.50 Dow-Jones Rails Dow-Jones 65-Stock 4S.53 61.1S The opinicnl expressed in this letter ere the person051 interpret1!ltion of cherts by Mr. Edmund W. Tabel! and are not presented as the opinions of Shields & Company.