Tabell’s Market Letter – September 08, 1950

.. 'Walston.Hoffman \\ Goodwin NEW YORK 5, N, Y 35 Wo.'IlI Street DIGBY 44141 PHILADElPHIA 2, PA 1420 Wall'lul5treet PENNYPACKER S 5977 TABELL'S MARKET LETTER LOS ANGElES 13, CALIF, 550 SouJh Spring Street M)OISON 932J2 SAN FRANCISCO 4, CALIF, 2bS Montgomery Street SUTTER 12700 n increased volume, the market moved higher on Friday. The rails , were the leaders and the rail average reached a new intra-day high at 64.63. The industrials also advanced but, at the intra-day high of 220.9!', were – just a shade above Tuesday's high of 220.71 and over a peint beloH the rally peak of 222.17 reached on AugUst 24th. Special situations rather than the usual market leaders scored the largesl advances. Despite the seemingly good actio;1 of the market, I would remain cautious. Two weeks ago, with the averages about he same level they are 'today, I advised taking profits and assuming a 50 liquid position in short term and intErmediate term trading accounts. I see L) reason t.o change this advice at the moment. The in-cermediate term inriicator has net 'ret corrected the overbought condition brought about by the sharp rapid advance from the ,Tuly lows. Further consolidation for two weeks or so or a techni,cal correction would be needed to change this pattern. Until this Occurs I would keep a 50 cash position in tradirg &ccounts in order to be able to take ad-Jantage of a reaction. This does not apply to long term invest- -ment accounts. They should continue to remain fully invested. 'l'le 11bral -yjelds and increasing inflationary pressure indicate that good common stocks are a much sounder holding than a depreciat';'ng dollar. Low-priced issues, from a percentage poi t of view, usually show illuch !)reater appreciation than higher priced stocks. A ten polnt advance in a jilO stock is equivalent to 100 profit while a cnilar move in '1 stock' selling at 30 is only 33 1/3. Pro'-idcd one has patiE'YJce and is wDling to assume speculative risks, low-vriced stocks can S10W the holder large percentage profits. Low-priced issues have, not been market fa'/orites a'.d they lave shown only mocerate appreciation from the-lows of the last four years. The twelve issues listed below all hve p0tentially cttractive technical patterns. For a mere 11,'350. (excluding cO.1missions) one can purchase 100 shares of each of these stocks. ' This 'lCkage was worth a maximum 01 34,960 at the 1945-1946 highs. Purchase l'f the entire package is recommended rather than concentratio'1- in one or two issues Austin Nichol Braniff Airways Jush Terminal Central Foundry C0ntinental Motors Delaware,Lack. & West Elastic Stop Nut Gray Mfg Northwest Airlines R-K-O Spiegel Western Airlines 1945-19).6 HiCh 25 3/4 37 1/2 15 3/8 17 3/4 24 16 3/8 16 3/8 24 1/2 63 1/2 28 1/8 39 7/8 40 1/2 7 – /3 9 e 3/8 10 1/2 9 7/8 10 3/4 10 3/4 7 5/8 10 1/2 9 3/8 Closing Averages Dow-Jones Ind. — 220.03 Dow-Jones Rails – 64.39 September 8, 1950 EDNUND -W. '1'ABELL WALSTON, HOFFMAN Co GOODWIN Thh hue menmlonrla.nrd.,u'mIni,I()nront. to or upon Information believed bI.I construed illS an of lhe securities on., or sol1cil!lon m.ntioned h.rein of The reliable but not ntunarlly compl.te, h ofoffreengotionqbumy aoternoleillh,nl'beseentur1ptr1eepsarFedromb., not quarante.d al acturate or fiMi, and time 10 time Wolllo.n, Hoff,!,,n .. Good!,ln m., us as is not a matter lnl.ndad of 10 foinrf.ocrlmolaotioInndoopnle.,n.deItntIIlnbqolsr.yd. -;-