Tabell’s Market Letter – February 09, 1951

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.'-;- ,