Tabell’s Market Letter – December 30, 1949

TABELL'S MARKET LETTER .., th iBdothtthelindustrials and rails reached new high !!YI e n us ria average at an intra-day high of 200.91 and th i… 53.16. A glance at the point and figure charts of the various averages may ! ! L' be of interest. The November 1948-June 1949 base on the Dow-Jones industrial average indicates an intermediate term advance to 199-203. The New (' York Times 50-Stock average indicates an advance to 138-141. This average t . '. is at approximately 135 at the moment. The New York age indicates an advance to 128-131. This average is Herald-Tribune averapproximately at 126 t' !,. at the moment. The Dow-Jones rail average indicates a rally to 53-55. The longer term objectives outlined by the thirty-two month base from ;',.. October 1946 to June 1949 are considerably higher. The three-point chart i of the Dow-Jones industrials indicates a minimum of 225-230 lith the possi- bility of a later 240-250. It would appear that while the advance may have somewhat further to ,…. go, an intermediate correction would be the normal sequence over the next t month or so. Such a correction should meet support in the 195-185 range in the Dow-Jones industrials. Following such a correctionary decline, ; '. and after a period of consolidation, the next objective appears to be l 225-230. i ' I believe the leaders of the advance in 1950 will continue to be the highgrade,dividend paying stocks. Despite the already sharp advance from ''.' the June lows, there are a great many investment and se6i-investment issues that are still selling at prices to yield over . A list of 1 issues with attractive technical patterns and a yield of 6 or more is . t in the process o,f preparation. If you desire such a list, please request \''! it from your customer I s representative. Undoubtedly there will also be wide appreciation in special issues. , . We mentioned several of these situations in 1949 such as American Seating, C/i !'., Cities Service, Standard Gas pfd. and White Sewing Machine. As these situations come to light they will be mentioned in this letter. Schenley , . Industries in my opinion is a special situation that could show wide t' price appreciation during the year. It is already on our recommended '''.i list. In the speculative field my first chOice continues to be the air- . .. , i lines. These issues seem thoroughly sold out and appear extremely 1 attractive for sizeable long term price appreciation.1The airline group i ';,; is one of the few that lost practically all of the 1942-1946 bull market gain by late 1948 when prices were the lowest since 1942. The following table shows the drastic decline suffered by these issues i, . Last Sale High 1242- 1246 iLow Convertible Into 1248- 1242 Shs . of Common ! Alaska Airlines 4 16 1/2 2 5/8 L' Amer.Airlines,3t pf 69 3/8 Amer. Airlines 9 3/4 98 19 7/8 47 6 ;L/8 4.76 t' Braniff Airways 8 37 1/2 6 1/4 Capital Airlines Eastern Airlines 8 1/8 14 5/8 49 3/4 33 1/2 3 7/8 12 1/2 National Airlines 7 1/2 41 3/4 4 1/2 No.West Air,pfd 19 1/4 27 1/4 14 1/8 1 1/2 No.West Airlines 11 3/8 63 1/2 7 Pan Amer. Air United Air 4t pf 9 1/8 81 29 120 7/8 8 57 1/2 4 United Airlines 13 7/8 62 1/2 9 5/8 Western Airlines 8 40 1/2 5 1 . 1948 High My second choice is the moving picture group. Most of these issues will be split into two units of motion picture production and theatre .) owning. Their price action may be similar to the action of some of the utility holding companies after a split up into the operating units. My favorite issue in this group is 'Twentieth Cer,tury-Fox. Other issues with ;, ''''; favorable While the patterns include Columbia Pictures, Technicolor and Warner Bros. charts on new Paramount Corp .and new United Paramount Theatre, Inc .do not show sUfficie'nt technical data on which to base an opinion, i, t.,gJ;;iil,l;j ,.q,. Irl. 'b X thj,I't ', .fil A 6\ttli r;;y,f3. ;!;;6I!1I..to rruilJiloli! to ; . s A41t4'kt 1n-ts9'9'le \,b.of ….'AlJrItiUiomentlt.cbw The fore901ng materiel has tim. 0 co, 0 m , mo, een pr.epared by us liS e matter of information only. It Is bl!!ed 1 ! 'npof'rfn'fft,n Wlteveij'''rt!'ffiIbl…. .,bYnot'vt'\larttrt,.,t ft; not guaranteed as accurate or f0\-lnA.13Etclo,e Independent lnqulIY / / l;.Dlbr.3;.i.9Mf…. , A' ….. .. ,…… . W4J1.9NjJ!q &(()9…,;,,' …t…. .-