View Text Version (OCR)
….;;.,..r– — SAN FRANCISCO, CALIF. NEW YORK, N. Y. LOS ANGELES, CALIF. BAKERSFIELD BEVERLY HILLS EUREKA. FRESNO RIVERSIDE SACRAMENTO SAN DIEGO LONG BEACH MODESTO SAN JOSE SANTA ANA OAKLAND PASADENA STOCKTON VAllEJO TABEll'S MARKET lETTER 35 WALL STREET, NEW YORK 5, N. Y. Digby 44141 Market action continues to favor the probability that the market reached its intermediate term low on February 25th as against the possibility of a further dip into the 170-160 range of the DowJones industrials. There is a large segment of the financial world that expects a lower market before a turn but, in my opinion, the failure of the industrials to follow the rail weakness on two occaSions last month is a sign of a sold-out market condition and indicates a change in the trend. Ability to penetrate the February 18th high of 174.62 would definitely strengthen this conclusion. However, even in the event of new lows, I would not expect the decline to carry much below the February lows. The downside objectives of rails, oils and steels were included in recent letters. Briefly, I believe there is a good probability that we have reached the lows of the move. In the less likely event of a further decline, I do not believe the eventual 10W3 will be more than 5 below February 25th prices. This is in the face of my belief that business and earnings will be lower i 1949 than in 1948. I am repeating below my list of recommended issues. This group has shown, in the main, better than average market action and I believe will continue to do so. Thumbnail sketches of all of these issues are available on request. American Cyanamid American Horne Products Avco . Bendix Aviation Bigelow Sanford Borg Warner Cities Service Commercial Credit Cooper Bessemer Denver & Rio Grande Eastman Kodak Eastern Airlines Electric Power & Light Firestone Tire Firth Carpet Flintkote Fruehauf Trailer Hewitt RobinS, Inc. Holland Furnace Inter.Min. & Chern. Intertype Corp Closing 3/4/49 38 5/8 25 1/2 6 1/4 33 28 3/4 47 1/2 40 5/8 50 3/4 26 22 1/4 43 3/4 15 3/8 21 7/8 48 1/4 15 5/8 25 1/8 18 7/8 19 22 1/2 24 5/8 26 Closing 3/4/49 Johns Manville Joy Manufacturing Kresge, S.S. Lowenstein Niagara & Hudson Paraffine Companies Penn-Dixie-Cement Pressed Steel Car Radio Corp Reynolds Metals St. Regis Paper Schenley Sears Roebuck Shamrock Oil & Gas Sharon Steel Shell Union Oil Sperry Corp Stand.Steel Spring Sylvania Electric Wheeling Steel White Sewing Mach. Youngstown Sheet 37 1/4 38 36 1/8 22 1/4 9 1/2 19 3/8 19 3/8 6 3/8 11 7/8 20 1/8 7 7/8 26 1/8 36 1/4 29 1/4 33 1/2 33 1/2 26 1/4 14 7/8 21 1/2 42 5/8 19 1/2 66 1/4 Burlington Mills has been dropped from the recommended list. If held, would dispose of this issue on strength in the general market and transfer to other issues in the list. March 4, 1949 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN Thll memorandum b not to be con.hued al an offer or solicitation of offen to buy or sell atr( securittes. From tTmtI fo time Walston. Hoffman & Goodwtn may have an tnterest In lome or all of the seclJl'itIel mentioned er.ln. The foroQoln9 material has been prepared by VI al a matter of Information only. It Is. based upon Information believed reliable but not necessarily c.omplete, 11 not Quarameed as accurate or final, and is not Intended to foreclose Independflnt Inquiry.