Tabell’s Market Letter – February 17, 1950

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.