Tabell’s Market Letter – April 14, 1950

, Walston-Hoffmon &. Goodwin SAN FRANCISCO, CALIF. NEW YORK, N. Y. r' … 'BAKERSF1EU) ….u;… BEVERLY H'ILls'l-TE'AST dUNGE. N' LONG BEACH MODESTO OAKLAND PASADENA SAN DIEGO SAN JOSE SANTA ANA PHILADELPHIA, PA. LOS ANGELES, CALIF. —'- …..EUREKA fR..E..S…N. O HAGERSTOWN, MD-.- ..H.A. RRISBURG, PA.., PITTSBURGH, PA RIVERSIDE SACRAMENTO SEAnlE, WASH. STOCKTON VALLEJO TABELL'S MARKET LETTER 35 WALL STREET. NEW YORK 5. N. Y. Digby 4-4141 HOTEL WALDORFASTORIA PLna -b8bO In a mixed market on Friday the Dow-Jones industrial average, aided by a thirteen-point run-up in Allied Chemical, reached a new intraday high at 216.17 and a new high closing at 215.31. In addition to Allied Chemical, television issues were again strong on publication of very favor- able earnings statements. The balance of the market did little or sold off fractionally. 322 issues advanced while 573 declined. The rails for the past week have again put in a disappointi',g perform.l.nce and still remain in the long 53-57 range in which they have held since early 'February. Up until today, recent leadership has been confined to the better grade issues. Strength in the television shares on Friday, together with some low-priced issues, has caused nervousness in market cirCles. However, recent earnings statements issued by some of the television companies have been quite astounding and, despite sharp run-ups, most teleVision stocks are selling on a very low price-to-earnings ratio reflecting the possible temporary nature of the earnings. There are only two happenings that 'would Signal extreme caution. One would be too sharp a continuation of the advance with volume of climactic proportions. The other would be a downside penetration of the recent trading range by the rail average. As yet, neither of these two things have happened. While the higher grade investment stocks and some special situations have moved ahead sharply, the main bulk of the market has done little or nothing marketwise and a great many issues are selling considerably below their 1937 and 1946 highs. I am listing below a group of fifteen issues in this category. Some are dividend payers – others are not. Most all of them are speculative, some of them to a very great degree. They, however, like the airlines which we have been consistently recommending, have one thing in common. They have all built up large potential base areas and could eventually signal wide percentage moves. At the moment ,there is no indication when such a move will take place. These potentially bullish patterns have been present for a long time and these stocks may continue in their trading ranges for quite a while. However, if the potentially bullish patterns work out they could eventually have a sizeable move. 20,000 invested in equal number of shares of these stocks would have been worth 51,200 at 1937-1946 highs, or Slightly more than 2 times present prices. This does not imply that these highs will again be reached but these stocks could show wide percentage appreciation. AP12rox .Price 1242 Div. 1937-1246 High American Radiator Baltimore & Ohio Central Foundry Elastic stop Nut Electric Boat Eversharp Gray Manufacturing R-K-O Spiegel, Inc. Sunshine Mining Union Asbestos & Rubber U.S.Foil B United Stores, 2nd pfd. Wayne Pump Wyandotte Worsted 15 3/4 11 1/2 10 3/4 9 18 1/4 10 7/8 10 1/2 7 3/4 9 3/4 10 3/8 12 1/2 17 5/8 11 15 1/4 11 1/2 1.25 nil .60 .70 1.50 .25 nil .45 nii .66 1.50 .60 1.10 .25 1.50 29 1/2 40 1/2 17 3/4 18 35 3/4 57 3/8 24 1/2 28 1/2 39 7/8 24 23 3/8 30 1/2 20 3/8 50 3/4 25 3/8 Eversharp paid nothing in 1949,but will pay 251 in May, 1950. , April 14, 1950 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN ThhulsemaenmiontrearnedSu'!minIfsenmot to Oor be all coofnsttbruesdecausrmani omffenrtoiroMlodl1hceitraetu!.o\.n I T0e offers t.o b foregolnq uy m, doern.aIel IIhiIlIInybleneurpIrtlefeisalrFe'daoimb'lltIIsumsneoattloiIInttimemnaedteteWdr atOlosoftofInenr'feodHremosfaeftmloIannndeo&pnteyGn.doeIotndtwIsiinnbqaumlieraydy. upon information believed reliable but not necessarily complete, IS not qua ran ee as accura e o r . …