Viewing Month: February 1951

Tabell’s Market Letter – February 02, 1951

Tabell’s Market Letter – February 02, 1951

Tabell's Market Letter - February 02, 1951
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Walston.Hoffman &Goodwin 'NEW YORK S, N Y 35 Wo!ll Street DIGBY 0141011 PHILADELPHIA 2, PA, 1420 Walnut Street PENNYPACKER 5-5977 TABELL'S MARKET LETTER LOS ANGELES 13, CALIF, SAN FRANCISCO 4, CALIF 550 South Spring Street 265 Montgomery Street MADISON 9-3232 SUTTER 12700 The market continued its advance throughout the week and both aver- ages reached new high territory on Friday with the industrials at 253,71 and the rails at 89.64. This is an advance of 13,60 points in, the indus- trials and 9.20 points in the rails in seven trading ,days. 'D''ing this period the rails closed higher each day and the industrials c;'sed higher in six of the seven days. The market is overbought on both short term and intermediate term work and a technical correction, or at least a consolida- tion, would be normal action. In observing the work of individual graphs, it is noted that an in- creasing number of issues in the better grade group are reching their up- side objectives, although they have as yet formed no clear ;,It distribu- tional patterns. This may take some further time of backing and filling around the highs. On the other hand, some of the more speculative secondary issues indicate the possibility of moderately higher leves before they reach their individual highs. Recently, the CHEMICAL GROUP was mentioned in this letter and the thought expressed that, while the individual issues might work moderately higher, they were approaching their technical upside objectives. Now most stocks in this group are at or very close to these objectives. EVERSHARP , INC. Closing price 13 5/8, was originally recommended for purchase at 10. This stock reached a high of 56 in 1946 and subsequentJy declined to 7. Technically, a good base was forraed in the 7-11 range 'liit'! an eventual upside indic tion cf 20-22. There is some .' .y at 13 to 15 in which area the stock i is recently held. It would apyear possible the stock may attempt to uove toward its longer term objective. The stock is paying at the rate of 1 annually and demand for the company's line of writing ;,!lstruments alid razor blades should remain strong. Some new prod- ucts may Je added.' Company has a fair ta;, base with average earnings of' 2.33 for the best tree years. HEWITT-ROBINS. Closing price 23 J/2, is on my recommended list at an origin 1 price of . The stock has a very 'i.lteresti!lg technical pat . . ter'1. Abi.ty to break out of the two-year 14-22 r2.nge ilc,icates c.' inter- 'led iate tel'm uptrend. The 1946 high was 39. The two divisions of the compars, rubber conveyor equipment and foam rubber, have long term growth prospects, Defense work should offset any restrictions on normal opera- tions. Estimated earnings for 1950 are around 4.00 and 2.15 in diVidends were paid. Company has fair E.P.T. base of 3.10 for best three years of 1946-1949 period. LOWENSTEIN. ClOSing price 35 7/8, was originally recommended at the equivalent of 19 for the present stock, At present levels it has almost doubled in price since entering my list. Suggest taking profits and switching into PACIFIC MILLS (43) on a reaction to around the 40 level. MAY DEPARTME)\'T STORES. ClOSing )(',2 -;'2, was orginally recommended at 48. On Friday, the Directors raisea lle dividend aLj recommended a 100 stock dividend. The stock rallied eight pOints Friday to close at 72. 'It is closer to its upside objective than other issues on our recommended list. Suggest taking profits and switching into KRESGE (38 1/4), or Y;'5CRORY STORES (35) which are issues of similar quality. SYLVANIA ELECTRIC. ClOSing price 28 7/8, Lnary broke out of the l0ng trading range between 12 and 28 in which it as ,e1., sin'ee late 1946 .l),n a tec nieal vier.'p,)1t this ;,etion indicates higher levels for Sylva– nia over the long term, Would buy on declines to 27-26 area. Estimated e;rnings for 1950 ar(' , JO and dividend was 2.00 annually. There are good growth possibilities in this electronic, television and lighting equipment company. ' February 2, 1951 Closing Averages DO\'l-Jones Industrials 252.73 Dow-Jones RailS 89.12 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN This memordum b not to b. construed illS an olfer or solicitation of ofl.rs to buy or sell any securities From time to time Waldo, Hoffman & Goodln may ha…. an Int.relt in some or all of the securities men.tioned her.in. The foregoing material has been prep3'ed by us as a matter of Information only It based UDon information believed reliabl. but not nQuUllirily c.ompl.te, Is not ljIuaranfeed o!s accurate or final, find is not Intended to forocloSll Indo pendent Inquiry z.

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Tabell’s Market Letter – February 09, 1951

Tabell’s Market Letter – February 09, 1951

Tabell's Market Letter - February 09, 1951
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odw.en ,' -' ,9,.,0-','S' —–,,'-',-'7.–, ,-'n,',,.-'- ' 1WI1WlTtO ItOll Hoff.nOll '&' G'O ;.- —-t–'-,'.,—,————–/-i,,/,r,',-,-,—,-,r,fi.;;.-,, f!S tf,N.enC ofocr t, i/ I) NEW YORK 5, N, Y PHILADELPHIA 2, PA f'; 3S Wall Street 1420 Walnut Street N'/. DIGBY 4.4141 PENNYPACKER 5Sm iW1'1j; – – – – – – – – – – – – TABELL'S MARKET LEnER , –'i LOS ANGELES 13, CALIF, SAN FRANCISCO 4, CALIF, 550 South Spring Street MADISON 9212 2bS Montgomery Stteet SUTTER 12700 \,. 'I –,J.!, p -'' N.. ,1I, ;,.' f;' After reaching new highs early in the week, the general market ; li.\iturned somewhat irregular although individual issues continued to move ;' I,'f,!,,ahead. 1!)1 pernsT.heTghreapghres a 0t f ir;di''t maJorl id y u alf 0 Sthtockhsi hcontine dtobShtOtW extrellelJt' dkiverse e g er prlce e er-gra.e s oc s have ,;,.,' i'/;)not only about reached the upside objectives outlined by the three-month ; )/220-236 trading range of late 1950, but also, in wany instances, have ;., t;;approached the objective outlined by the longer term patterns, It wou!.j t f'isappoeuartwtehigaht e th d e by chanc the e ri of sk further wide appreciation in this type of isue of a possible decline. On the other hand, in ,, ;!/contrast with this action, there are a great many secondary issues that ;' have strong technical patterns. Many of these issues o.re selling closer .- t',;to their four-year lows than to their 1946 hig, 3. This' type of stock, ; nl';'jprovided the fundamental background is sound, seens to offer better appre- \i,ciation possibilities than the issues that have already advanced sharply, P';',and would be less vulnerable in the event of market declines. ;U!i; It Fill be iLter6sti;-; to watch the action of General 1'!otors (51 '( i over the near term. General r10tors reached its high of 54 3/4 on October -' ;;5th, more than four months ago, The induDtrial average at that ti,ne Vias ,-' around 232 in contrast with the recent high of 256 and a recent high in ; iijGeneral Motors of 52 1/4, The stock, in almost every instance in the past, i)has made its high four months or so before the general market. For example,c;' h'General Motors reached its high in 1929 in 11arch and the averages rea2ned ' l their high in September 0 The industrial averae;e reached its high in arch ,' 1;1; )1m9a3r7keatndreaGcehneedrailt M s otors high reached its peak in in \jay 1'lhile Genera Noveri,ber 1936. l llotors made it s In 1946, top in Jathnuearb, ;Thus, if General Motors fails to penetrate the high of 54 3/4 of r,lOre than 't \,, four months ago, it may mean, if past precedent is followed, that the mar- -, (,- ket is near an important top, C r,' Lambert Co. (24 5/8) is an iseue tilat has failed to participate in the current rise. It declined from a 1946 high of 68 to a low of l 1/4, i' ;;,At present levels of around 24, with estirlated earnings of 2.75 and a ;'' 1',)1.50 dividend, the stock appears reasorably priced. Through a subsidiary; , f,, compar;y is engaged in the ethical drug field in addition to Listerine and ,,', plastlc s. ' a- U.S.Rubber (58 3/4) was mentioned recently as a backward issue in '1 ;;/ the rubber group. ,3ince that time, it has reached new high territory at . ,, 1f,';;'; rt 59 3/8. U.S .Rubber has ,just raised the quarterly dividend to 1. buy this issue during periods of market decline. There is strong in the low 50s. For long term investment, suggest the folloHing issues in 00. Would' support t'',;',' ny ;1) recommended list. The yield is good on the average and as they have not , I risen sharply, they are less vulnerable it' the event of a marlcet decline gl -I f Stock f; Price 1946 High Stock iPrice 1946 ',' HiO'h I\I lpha Port .Cement 37 39 rkCrory Stores 35 ,unerican News c Armstrong Cork H C. I.T.Financial 35 52 47 60 l'ercantile Stores 22 35 65 ' Helville Shoe 25 29 63 NontgOl ry Ward 73 104 F1,1, Commercial Credit Endicott Johnson 50 32 o'J, Fairbanks Morse Kresge 51 38 h fr !( '1,,'11' . , .. 1950 High J t fFebruary 9, 1951 ,', Closing Averages Iifi;,!. '.f' Dov! Jones Ind. 254.24 Dow Jones Rails 89.73 wI,; r,) 67' Otis Ele Jator 38 51 United Car'ton 47 88 Western Auto Sup, Y 47 45 llestinghouse Elec. 37 13'7 gh.f-il'o 0 ., ' EDI'rurm 1,1. TJ.BELL EL3TOlJ EOFFI\1AN \ GOOmIIN 42 45 90 41 l i,;J' tJ t'; Thh memorandum h not to b. construed 61 an off.r or IOUella'ion of off.r. to buy or ,.11 any secur.ties From tim. to tim. Wallton, Hoffman & Goodwin ma, have an lnt.red in some or .,/1 of the securlhes mentionfld herein. The fore90ing material has been prepared by us as a metter of informetion only. It is bas.d upon Information bel1evld r.llabl. but not nlcenadly complete, Is I\Ot ;uarantud as eccurate or final, and is not Intended to foreclose Independent InqUiry. ;-. '-,/ '-'!1J)R..2 ii-,-1r-f…' ,r,;rt'-..;;.-.r-.–. . .' I.' ,.,-7 ,'r.-7 '.';i –''-7,'.,-,,–;'-;'i-;t–;'I.'-;- ,

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Tabell’s Market Letter – February 16, 1951

Tabell’s Market Letter – February 16, 1951

Tabell's Market Letter - February 16, 1951
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,'-' – ' t' ,,'' II-'' f'-It,, i; ' ' ,- .'- NEW YORK S, N, Y. 35 WII Street — DIGBY 4-4141 PHILADELPHIA 2, PA 1420 Wolnut Street PENNYPACKER S59n f'-! TABELL'S MARKET LEnER LOS ANGELES 13, CALIF. SAN FRANCISCO 4, CALIF. 550 South Spring Street 265 Montgomery Street MADISON 93232 SUTTER 12700 Since early 1948, this letter has conSistently recommended the purchase of the higher grade, dividend-paying issues and as con- Sistently expres2ed the opinion that they would be the market leader; of the first phase of the advance. In the advance r; 'C' 160 in the Dow- Jones industrials in June, 1949 to the recent high of 257.06, this type of issue has been in the foreground. Spurred by demand from , — institutional investors, some of the investment growth stocks have advanced from 50 to 100 in price over a two-year period. They are f, ,.; no longer on the bargain counter. Due to higher txes, earnings in 1951 will probably be below 1950 and the price advance has brought ,' ' yields from around the 6 level to below 5 and i, some cases close to 4. Whl1e the longer term prospects remained cndimtnished, present t ,-, price levels appear to have adequately discounted this fucure possibil- l'G;, . In view of the current uncertainty, I culd prefer to aViai t a more advantageous price level for new purchases. In many cases, – , the teclmical patterns of the growth investment stocks show that they have reached, or almost 'reached, the upside objectives outlined by their base patterns. On the other hand, there are other good quality issues that appear to have not yet discounted their possibil- itc .. Some of these a secondary, more speculative issues. Others are stocks of better known companies. Whle they,too, might sell off in a market decline, they appear to have better defensive possibil ities than the issues which have already advanced sharply BEST & CO. appears moderately priced at around present levels of 31. It has a good E.P.T. base with an average of about 4.50 a share for the best three of the 1946-1949 years. Estimated . earnings for 1950 are 3.75. The stock is paying 2 annually to -, , yield over 6. The technical pattern is promising. The price range of 32-23 has held for almost fc,', years and there is an up- side potential of an advance to the 1946 high of 52 1/2. Should be bought on all dips for semi-investment holding and chances for long term appreciation. , BOND STORES has been showing an improving technical pattern of late. This retail clothing store chain expanded a bit too rapidly in the mid-1940s and the stock declined from a 1946 high of 48 1;4 to a 1950 low of 12 1/8. Company appears to have turned the corner and earnings for 1951 should top the estimated 2.00 of 1950. Company has a good E.P.T. base due to earnings of 5.93 in 1946, 5.17 in 1947 and 3.05 in 1948. The technical pattern suggests a potential accumulation area in the 19-13 range with an upside possibility of , ' 26-28 for the first phase of the advance. Buy on minor weakness. Present dividend rate is 251 quarterly. The next payment will go ex- dividend March 1st, payable March 14th. ,, UNION CARBIDE, at the recent top of 59, seems high enough for the moment. Earnings for 1950 reached a new peak at 4,31 a share. Earnings for the best three years of 1946-199 average around 3.30 so its E.P.T. exemption is only fair, The stock yields 4.3 ., ; ,, on the 2.50 dividend. Price appreciation or the near term appears limited. The stock has reached its upside objective on the techninal gauges and due to its sharp rise (for an issue of its quality) it appears somewhat vulnerable. Would withhold purchases of this ex- ,' cellent quality gro;th issue until a good reaction corrects its technical pattern. February IG,1951 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN I— Closing Averages Dow-Jones Industrials ,– Dow-Jones Rails I' , I This mllfflOroJdum if not to b. COt!Jtru.d af an off.r or ,olicltation of oU.rs to buy or HII oIInV sicurifil' From fime fo timl Waldon Hoffman Goodwin may 11.! haVI a.n intlre!t in loml or all of th Ilcuritiis mlntlned brei!'! Th foreC)oinC) aterial has been prepared by UI as e metter of i'ormation only. It 1 baled ; upon Information b.lllved rillabil but not necessarily complete, b not ;uaranteed as accuratl 0' 'inal, and h not Intended to foreclose independent inquiry -5\'7–,;,'tiJ.1 !f'Jt,\;, '1!.'– –..5''—!;- -'- -)—–,- '' ';tj ''1-' 'f,-1!-r – '-!;;;

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Tabell’s Market Letter – February 23, 1951

Tabell’s Market Letter – February 23, 1951

Tabell's Market Letter - February 23, 1951
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,,,,- ,,;'u '–'-,;;'X1.-;' pr'\,', Wolston.IIoffmon &- Goodwin (';''–'-,' ';'' -',''''I'''–if; /,i;, NEW YORK 5, N. Y. q';.w-n& -;or PHILADELPHIA 2, PA, LOS ANGELES 13. CALIF. SAN FRANCISCO 4, CALIF. ;I,'I ',L 35 Wall Street DIGSY 4,4141 1420 Walnut Street PENNYPACKER ,,'''' TABELL'S MARKET LETTER 550 Os';,,t,t 265 l!;;oSt,t s 1t 1 f!\ h'Ii e'l' ',.,' /'1; 1';' Last Tuesday's downside penetration of the fourteen-day trading ',,range between 256 and 251 brings up the possibility that a longer term top t;distributional pattern may be in the process of formation. It is too ,,1; ' l ;,.'f'f '','; ,- r Ii,,'early to' be certain that such is the case. So far the decline has held ,, . ;Within the bounds of a normal minor technical correction. However, certain ,-'; pof our volume and supply-demand gauges are showing indications of a de- i; f,,1teriorating technical pattern. When this is added to the fact that the '1 ),Dow-Jones industrial average has reached its long-term objective of 250 ;.- !Eand that many individual issues have also reached their individual upside –', ;'objectives, it seems advisable to exercise extreme caution at this stage ie-I II,', of the market pattern and to watch technical action very closely 0 \1 k As yet the technical background suggests the formation of only ,,relatively minor tops in a few groups. However these tops could easily !,'broaden either on a fUrther rally or at levels somewhat below present i;,, '' .; r;prices. Until such a broadening pattern occurs, downside implications ',-, I', are not clear. It might be interesting to note the normal downside tech- ',. I,;;,nical corrections inherent in the present pattern ;;–C 1;1. The minor trend has been up since the late January low of about i (,240, The advance to the recent high of about 256 was sixteen points 0 A i,,normal one-third to two-thirds correction of this advance would bring the f x l1ri;;T,iauveesrdagaey'bTs ahcleokwintotoefr2m2504e-8d2.i74a85te.. This has approximately been reached at last uptrend dates from the November-December lows of i',J i(il around 221, A one-third to two-thirds correction of the thirty-five point n L;advance would bring the average back to 244-232. While not yet definitely',;; t;;indicated, such a correction is very possible. There is good support at ;, tthe 240-236 level. !' The long-term uptrend dates from the June, 1949 low of 160. A i;; ,, ' ;one-third 1bring the to two-thirds correction of average back to the 224-192 the ninety-six point advance area, The present technical would pattern ;f-, 1. does not yet suggest such a decline 0 The potentia top pattern must Vbroaden considerably before such a correction would be indicated, F The technical patterns of individual groups are quite diverse ';; ,/; ;c,- b-'with some groups appearing much more vulnerable than others, Here is a ' , !t''broad classification I '!cI MOST VULNERABLE LEAST VULNERABLE 't1,- ;,'',I, ; ,,-, ,' Automobile 1;-, Chemicals Airlines Building Materials -/i ,It' P',– aCopper & Le d Investment Cos. Metal Fabricating Mining & Smelting Can Drugs Finance Companies Natural Gas r, Z;,.', '' rt'.,,l' Oils Paper I '- Rails Office Equipment Printing & Publishing Retail Trade , f,I' ,,- c! ,– I,'-' r STeti1es Tires & Rubber Shoes Theatres & Motion Pictures Utilities , ', ( ;, L, The other groups are in an in-between position, l,. r- V,' ,-,;, February 23, 1951 EDMUND W0 TABELL WALSTON, HOFFMAN & GOODWIN , ' Closing Averages . – Dow-Jones Ind. 252.18 Dow-Jones Rails 86.51 t ' i7–/)' This m.morandllm il not to b. construed as on offor or solicitation of offlrs to buy or s,1I any ',curilil' From time to time Waldon, Hoffmlln & Goodwin may hay. an interest In some or ell of the securities mentioned herein. The lorl90in9 mllterial has bien prepared by UI al a matter of information only. 11 IS baUld ;' c;, ; upon Information belilved reliable but not ne(.Stlril., complete, Is not uarant.ed 0/11 accurate or final, and is not intended to foreclose Independent InqUiry J;'i);Z;;S;';'o.-;'!;..rf'';.,i..1!!';!i–;;-z,!.;7E'.1!,'-J!!..J;.Yi..r;;-

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