Tabell’s Market Letter – June 17, 1949

TABELL'S MARKET LETTER )5 WALL STREET, NEW YORK 5. N. Y. Dlvby 4-4141 I am reprinting below my letter of April 27, 1949. The airline issues mentioned in my letter of June 10th also fit into this category except for the fact that, at present prices, they are selling at more than ten times 1940 earnings. – For the speculator who likes to purchase well deflated issues I am listing below a group of stocks that are now selling at a price of approximately one-third of their 1945-1946 highs. All of these issues paid dividends in 1948 but that is no reason to assume that such payments will be made in 1949. To eliminate issues that were purely war beneficiaries, I have added an additional requirement – namely, that at present price no issue is selling at more than ten times 1940 earnings. From a technical viewpoint, while most of these issues appear to have reached their approximate lows, very few have built up sufficient base patterns to indicate any important near term move. Undoubtedly, considerable patience will be required. However, even if these issues regained only half of their threeyear declines, the percentage appreCiation would be sizeable. Approx. Price 19451946 High 1940 Earn. 1948 Earn. 1948 Div. Air Reduction 21 1/2 Allegheny Ludlum 18 Amer.Machine & Fdry 12 American Stove 8 Artloom 9 Baldwin Locomotive 9 Bath Iron Works 10 1/2 Blumenthal (Sidney) 5 1/2 Bohn Aluminum 24 Bond Stores 17 Bullard Company 12 1/2 Climax Molybdenum 12 1/2 Collins & Aikman 14 1/2 Columbia Broad. A 17 1/2 Consolo Coppermines 2 1/2 Cudahy Packing 7 Evans Products 6 1/2 General Precision Equip. 13 Hollander & Son 9 Kalamazoo Stove Lehn & Fink 9 9 1/2 Liquid Carbonic 13 1/2 Mack Truck 10 Manhattan Shirt 16 National Can 5 Niles-Bement-Pond 8 Pacific Tin 3 Pennsylvania R.R. 14 1/2 Remington Rand 8 1/2 Servel, Inc. 6 1/2 Standard Brands 18 Sun Chemical 7 Sunshine Mining 8 1/2 Symington Gould 4 U.SoInd. Chemical 19 Wayne Pump 12 White Motor 13 Yale & Towne 19 1/2 59 3/4 61 1/8 45 1/4 38 7/8 30 38 7/8 39 3/4 26 3/8 78 48 1/4 46 7/8 44 1/2 63 1/2 47 10 3/4 20 33 3/4 40 1/2 40 36 33 43 1/4 38 3/8 46 1/2 21 3/4 26 1/4 11 1/8 47 1/2 23 7/8 24 7/8 55 24 1/4 24 16 7/8 62 47 1/2 47 1/8 61 1/2 2.38 2.36 2.78 5.05 1.35 1.66 2.17 1.06 1.04 2.65 1.75 1.26 4.90 1.31 1.79 1.31 4.09 2.76 1.92 3.05 6.15 1.58 2.40 1.04 5.15 (a) .46 2.92 2.94 .51 .13 1.00 .36 .91 (d) .38 1.45 1.56 2.10 1.01 1.96 2.10 (b) 1.54 .30 2.21 3.01 1.51 1.56 2.20 2.32 .72 .19 2.29 1.55 .90 .68 3.51 2.61 .77 2.00 1.67 3.00 2.72 2.05 .86 .70 1.82 .80 1.17 .28 2.14 (a-d)3.92 3.18 (d)1.13 2084 4.98 2.90 4.17 1.00 2.00 080 1.20 1.00 1.00 1.00 .60 1.00 2.00 .50 1.20 1.00 2.00 .30 .60 .50 1.00 1.00 .95 .25 1.00 1.50 1. 75 .25 .60 .20 1.00 1.00 1.00 2.00 .50 .60 .50 2050 1.50 1.45 1.00 Adjusted. (d) Deficit (a) Nine months. (b) Adjusted for change in fiscal year. June 17, 1949 EDMUND W. TABELL WALSTON, HOFFlfillN & GOODWIN This memorandum I, not to b. conlJtrued a. an offer or .ollcltatlon of offen to buy or 11 any curltl… From tIm. to tim. Walston, HCffman I Goodwin may have an lnt.rt In Orne Clf all of th. securltle. mentioned he,.In. Th. for.qolnQ mat.rial hal bun prepared by UI al III mathr 01 Information only, It Is. boll.ad cpon Informaflon bell.ved ,.lIable but not neeenllrily complete, II not QUllrat..d a. aec.urate or flnlll, and Is not Intended to 'ar.close Independent Inquiry,