Viewing Month: February 1950

Tabell’s Market Letter – February 03, 1950

Tabell’s Market Letter – February 03, 1950

Tabell's Market Letter - February 03, 1950
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SAN FRANCISCO, CALIF. NEW YORK; N. Y. PHILADELPHIA, PA. LOS ANGELES, CALIF. BAKERSFIELD BEVERLY HILLS EAST ORANGE, N. J, LONG BEACH MODESTO OAKLAND PASADENA SACRAMENt'O SAN DIEGO SA.N JOSE EUREKA- FRESNO HAGERSTOWN, MD PEBBLE BEACH PITTSBURGH, PA SANTA ANA STOCKTON HARRISBURG, PA. RIVERSIDE VALleJO t ,, 35 WALL STREET, NEW YO.RK ,N.y.' , ..i TABEll'S MARKET lETTER ' Digby 4-4141 . ,;, .' The apparent consolidation in the upper part of the 195-205 indus- trial average range continues, With today's intra-day high being 205.-39, '. the short term market measurement has been slightly overbought for seven or eight 'trading hours. This is not necessarily serious in view of the steadily increasing strength of the longer term market but it does dictate I' ., inued caution in trading activities and selectivity of investment buy- !., I Still believe 190-195 in the industrials to be the rough limits of this consolidation area, with any reaction over the next few weeks having a probable downside objective of about 194. Also, such a reaction should be very selective, as the rise has been. . If, unexpectedly,the averages should run appreciallly above 205 during.' ; this ; same period, an overbought condition reaction should result. could well develop from which much the;! I Below are resumes of those merchandising issues on our recommended ' 1 I list which were not covered last week, together with the two liquor stocks .. we presently favor. i I' ,.' ,'; and a JVJ.I\.Y DEPARTMENT STORES half years. It has now This made issue held in the 36-48 range an upside penetration leaving for two ,. underneath i'.. .' it a heavy accumulation base. First objebtiye is 62 followed by 71. Would I…. buy this on even moderate weakness. i MONTGOMERY WARD – The stock has had a sharp decline from the 1946 I top of 104. It appears to be building up a broad accumulation area in 1' ; i I' , 1 1 the 48-65 range. The 49-48 low has held on three attempts. At the moment,' i Iithe stock is faced with the strong overhead supply area at 54-59 which may! f 1 take time to absorb. Ability to reach 60 would be very constructive. The i., I stock should be watched closely as it has an initial upside potential of I i i!,. v,i 8 0 – 9 0 . Would buy on all dipS or on a penetration to 60. I; .1 WESTERN AUTO SUP,PLY – The stock has an extremely irregular pattern !i but now has the appearance of forming a potential base pattern in the , .,33-46 range. The stock appears headed for the 60-70 range. -'ii .' I,.l DISTILLERS-SEAGRAM – On an adjusted split basis, the stock reached a high of 30 in 1946. The distributional area indicated a decline to 11. , iA low of 12 was reached in May, 1947 and tested both in March 1948 and June. 1949. A potential baoopattern has been built up in the 12-19 area. An 'upside penetration would indicate 23 followed by an eventul 32. Would buy ;,,at present levels and on all dips. ,. , SCHENLEY INDUSTRIES – The stock has been in a long downtrend since the 1946 high of 100. However, a potential base pattern has been building .;uP in the 23-28 range Since May, 1947. Ability to reach 31 is the first !gigtdOtt;e m ;;! rytahe5;Oar38 .1 Would buy between 30-34. 1 1,,1 May Dept .Stores i.jlj Montgomery Ward '1 i Western Auto Supply Approx. Price 49 58 3/4 44 Dividend Rate 3.00 3.00 a 3.00 Yield 6.1 5.1 1946 High 70 1949 Est. Earnings 5.00 104 1/4 6.50 c 4.75 Distillers-Seagram 18 1/4 1.05 b 5.7 30 3.98 e 1 j … Schenley Industries 33 2.00 6.0 100 6.00 f a. Including 1 extra. b. Total paid 1949 c. Year ended Jan .1950 ., i .j e. 12 mos.ended Oct.1949 f. 12 mos.ended Nov.1949 ;. EDMUND W.TABELL .r,,' February 3, 1950 WALSTON,HOFFMAN & GOODWIN This memorandum II not to be construed as an offer or solicitation of offers to buy or lell any securities. From time to time Walston, Hofman a Goodwin may have an Interest In some or all of the securities mentioned herein. The foregoing materIal hal been pte pared by us as a fT!Iatter of InformatIon only It 11 based upon Informlltion believed reliable but not neceuarily complete, 11 not guaranteed as accurate or final, and is not Intended to foreclose Independent Inquiry. . .. ……………….. . … .. .. … ''', ,… .. ……. –'''.'.,.', ….. ,','.,' ;,,,………… . . . . ………… , , , ' ,………….,. '. ……………f … …. . . . – — f

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Tabell’s Market Letter – February 10, 1950

Tabell’s Market Letter – February 10, 1950

Tabell's Market Letter - February 10, 1950
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,f' Wolston.Hoffmon &, Goodwin / SAN FRANCISCO, CALIF. NEW YORK, N. Y. PHILADELPHIA, PA. LOS ANGELES. CALIF. BAKERSFIELD BEVERLY HILLS EAST ORANGE.. N. J. LONG BEACH MODESTO OAKLAND PASADENA SACRAMENTO SAN 01 EGO SAN JOSE EUREKA FRESNO HAGERSTOWN, MD. HARRISBURG, PA. PEBBLE BEACH PITISBURGH, PA, RIVERSIDE SANTA ANA STOCKTON VALLEJO TABELL'S MARKET LETTER 35 WALL STREET. NEW YORK S. N. Y. Digby 4-4141 HOTEL WALDORF.ASTORIA PLo.. 96800 The minor overbought condition mentioned in last week's letter served,' as expected, to limit the rise in the industrial average at the 205 level. So far it has not led to any sharp near term weakness, but during this period of consolidation, which will probably extend well into March, irregularity can be expected at any time. . While the averages lost ground over the past week, stocks with favorjable near term bases – steels, televisions and aircraft manufacturers 'prominently – moved ahead, in some cases to new highs. This situation – long term strength coupled with near term irregularity and selectivity creates excellent trading opportunities of which advantage should be taken. , Investment action should remain definitely optimistic. However, it .seems the course of wisdom at this relatively high level of the averages to confine buying, where possible, to those favorably situated issues which have strong bases from which they have not advanced too markedly. Such issues have done their work, during this consolidation period, at a relatively low level and consequently have strengthened their accumulation areas. On the other hand many stocks which have been favored and run up .. over the past seven months may well be making minor or intermediate dis- i 'jtributional tops, the downside objectives of which could be realized in isome future period of weakness. , Appended are short reviews of four more stocks on our recommended list. Again,' some of these issues were originally mentioned at lower levels, but their purchase is still advised as indicated. ALPHA PORTLAND CEMENT – The 1946 top at 39-35 indicated a decline to 26. A low of 25 was reached in October, 1946. Since then a large poten!tial base was built up in the 25-35 range and penetrated upside. The initial long term objective is 49. Would buy in 33-37 range. OTIS ELEVATOR – The 1946 top at 39-37 indicated a decline to 21 . . The low reached in 1947 was 24. A strong potential base pattern has been i formed in the 24-33 range and penetrated upside. The ultimate objective .' is 54 followed by a possible 65. Would buy on all dips. REYNOLDS METALS – The stock has held in the 17-26 range (on an ad- justed basis) for more than two and a half years. There is some supply at 27-32; but an upside penetration would indicate 35 followed by a , possible 48. Recommend purchase at present levels. PENN DIXIE CEMENT – This stock has penetrated the strong head and shoulders base pattern formed at 18-14-16 over a three-year period. The ;initial objective is 39 followed by an eventual 53. Would buy at present levels and on any dip. Approx. Price DiVidend Rate Yield 1946 High 1949 Est. Earnin!!is .Alpha Port'd Cement Otis Elevator Reynolds Metals Penn Dixie Cement 35 1/2 38 3/8 21 3/4 27 1/2 2.50 2.50 1.10 1. 75 6.9 6.5 4.9 6.4 39 7/8 39 1/2 45 1/2 30 3/4 5.50 5.50 4.25 4.75 , . February 10, 1950 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN This memorandum Is not have .!In Interest In lome to or bIeI construed as an of the lecuritlel offer Of solicitatIon of mentioned herein. The offofreersotlon9bumyteOrfiaslellhaalnybesMecurpirtieepsareFdrobmy time to .us as a time Wo!IIston, Hoffman 3 GoodwIn may matter of information oniy. it Is based upon Information belle'fed fellable but not necessarily complet., Is not guaranteed as accurate or final, and II not Intended to foreclole Independent Inquiry. J r;j .

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Tabell’s Market Letter – February 17, 1950

Tabell’s Market Letter – February 17, 1950

Tabell's Market Letter - February 17, 1950
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r ' Walston.Hoffman &, Goodwin SAN FRANCISCO, CALIF. NEW YORK, N. Y. PHILADELPHIA, PA. LOS ANGELES, CALIF. BAKERSFIELD BEVERLY HILLS EAST ORANGE, N J. LONG BEACH MODESTO OAKLAND PASADENA SACRAMENTO SAN DII;O .. .QSE ,, …H EUREKA FRESNO HAGERSTOWN, MD HARRISBURG. fA. PEBBLE BEACH PITTSBURGH, PA RIVERSIDE SA'NTA.AI'l'10CKTON .. ..Y.rEJP TABELL'S MARKET LETTER 35 WALL STREET. NEW YORK 5. N. Y. Digby 4-4141 HOTEL WALDORFASTORIA 1 PLaUi 9-6860 I Despit the uncertainty of the coal strike, the market has , acted well from a technical point of view and while the industrial average declined for five successive days, it held above the 200 level. Friday's rally carried back to a high of 203.49. The action of the rails is encoura- ging and ability to penetrate the January high of 56.09 would be constructive. Friday's high was 55.89. ; Still believe the market will spend more time in an area 'bounded roughly by 205-195. However, during such a consolidating period, 'individual issues and groups could move ahead. There are no signs of any important distributional patterns although the action of some of the television issues was a bit disturbing. The airline issues moved ahead and they continue to be my most ; favored speculative group from a longer term viewpoint. Most of these ; issues have formed exceptionally strong base patterns. . The following issues are in my recommended list. Last Sale High 1945-1946 Low Convertible Into 1948-1949 Shs.of Common iAlaska Airlines 4 1/4 16 1/2 2 5/8 Amer.Air.3t pfd 72 1/2 98 47 ,, Amer.Airlines Braniff Airways Capital Airlines 11 3/8 9 1/8 11 3/8 19 7/8 37 1/2 49 3/4 6 1/8 6 1/4 3 7/8 Eastern Airlines 16 33 1/2 12 1/2 National Airlines No.West Air,pfd. No.West Airlines .. Pan Amer. Air 7 7/8 21 3/8 12 1/2 10 3/8 41 3/4 27 1/4 63 1/2 29 4 1/2 14 1/8 1 1/2 United Air 4t pf United Airlines Western Airlines 1948 High 83 15 5/8 9 120 7/8 62 1/2 40 1/2 57 1/2 9 5/8 5 4 AMERICAN EXPORT LINES – The stock has been in a slow downtrend since the 1946 top of 28-24. The indicated downside objective was 15. A low of 14 was reached in December, 1948. A potential base pattern was built up in the 14-20 range and penetrated upside. The first objective is 30 to be followed by a possible 40-50. Would buy on all dips. ELECTRIC BOAT – The stock has held in the 11-17 range for over three years. A strong pattern has formed with the June low at 13 holding above the 1947 and 1948 lows of 11. The recent upside penetration to 19 7/8 iindicates 25 followed by an eventual 35. Would buy on all dips. ELLIOT COMPANY – The stock has been in an uptrend since the October, 1946 low of 15. The 1948 low was 16 and the June low was 18. A new three year high of 28 was recently reached. An initial objective of 36-37 is indicated. Buy on all dips. TWENTIETH CENTURY-FOX – The stock has been in a sharp downtrend! from the 1946 top of 63 However, the downtrend appears to have been broken. A strong potential base pattern has been built up in the 18-25 range . An 'upside breakout would indicate 31-36. Approx. 1949 1949 Price Div. Yield 1946 High, Est.Earnings American Export Lines ,Electric Boat Elliot Company Twentieth Century-Fox 23 18 26 22 2.00 1.50 1. 75 2.00 8.9 8.3 6.7 9.0 28 5/8 35 3/4 39 1/2 63 7/8 4.85 1.80 6.80 3.75 .February 17, 1950 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN ThIJ memorudum II not to be construed as an offer or solldfatton of offers to buy or sell lIny securltles From time to time WlI,ston, Homan & Goodwin may have lin Interest In lomo or lIli of the lecurltlol mentioned herein. The foregoing mllterial hal been prepared by us ,n a mlltter of information only. It II based upon informllflon believed reliable but not necasslI.rily com plate, Is not guaranteed liS accurate or final, II.nd Is not intended to foreclose Independent Inquiry.

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Tabell’s Market Letter – February 24, 1950

Tabell’s Market Letter – February 24, 1950

Tabell's Market Letter - February 24, 1950
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Walston.Hoffman &, Goodwin SAN FRANCISCO, CALIF. NEW YORK, N. Y. PHILADELPHIA, PA. LOS ANGELES, CALIF. BAKERSFIELD BEVERLY HILLS EAST ORANGE, N. J. LONG BEACH MODESTO OAKLAND PASADENA SACRAMENTO SAN DIEGO SAN JOSE EUREKA FRESNO HAGERSTOWN, MD. HARRISBURG, PA. PEBBLE BEACH PITISBURGH, PA. RIVERSIDE SANTA ANA STOCKTON VALLEJO TABELL'S MARKET LETTER 35 WALL STREET, NEW YORK 5. N. Y. Digby 4-4141 HOTEL WALDORF.ASTORIA PLna 9-6860 ,- The market is meeting upside resistance in the broad 200-213 area which marked the 1946 top. This is an entirely expected develop- ment. It will take more time and considerable volume to push through this overhead supply. However, technical indications favor the probability that this barrier will eventually be penetrated on the upside. Before that occurs, the market might dip temporarily below recent support levels. The broad pattern remains mainly favorable. It is only the near term pattern that is doubtful. From a short term and intermediate term point of view, I have advised taking profits on strength in issues that have had sharp price advances. There is no reason to disturb issues that have not advanced sharply. Individual issues with good technical-formations could advance while the market is resting. – Below are some comments on issues in the recommended list. AMERICAN CYANAMID. Tpis stock was originally recommended for purchase in the 38-40 range. During that time it built up a very strong accumulation area in the 43-34 range. The stock reached a high of 55 1/8 today, which is about the upside objective indicated by the technical pattern. It would appear that some consolidation is now needed to form a new pattern and action may be temporarily slow. Would advise no new purchases until a new pattern forms. , . , ALUMIN1.m COMPANY OF AMERICA. This stock has recently shown ,, 1, , improving action. It reached a three-year low in December, 1948 of 46. This low held again during the June 1949 reaction. Since that time it has held in the 46-54 range. Recent ability to penetrate this range is constructive. Would add the stock to recommended list on all price dips. CHICAGO PNEUMATIC TOOL. The 1948 top built up around the high of 40 indicated a decline to 24. A low of 21 3/4 was reached in June, 1949. The stock appears tobe building up a potentially strong pattern in the 22-30 range. An upside penetration would indicate an initial rally to 33-34, followed by eventwUlyhigher levels. Would buy on all dips. ,- Aluminum Co.of Amer. Chicago Pneumatic Tool 1948 High Approx. Price 55 28 1949 Div. 2.00 .2.00 Yield 3.6 7.5 1946 High 90 1/2 40 1949 Est. Earnings 5.50 7.50 February 24, 1950 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN This memorandum II not to be construed as an offer or sollcltatlon of offers to buy or lell any secur1tles. From time to ttme Walston, Hoffman & Goodwin may have an Intored In some or all of the lecurltlu mentioned herein. The fore;olng materilll hu been prepared bv us III II matter of information only. It lSI bated upon Information belleyed reliable but not necenarlly complete, Is not toIuaranteed as accurllte or final, and Is not Intended to foreclose Independent nqu ry.

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