Tabell’s Market Letter – March 09, 1951

'-t J 't, ,''';,',,'' '7'\;J,''!!..',- -;.!,,-, ,' , NEW YORK 5, N. Y 35 W,II Street DIGBY 4.4141 PHILADELPHIA 2. PA, 1420 Wo!Ilnut Street PENNYPACKER 55977 I' TABELL'S MARKET LEnER ,',,I' i''-f..,.. LOS ANGELES 13, CALIF, SAN FRANCISCO 4. CALIF, SSO South Spring Street 2bS Montgomery Street MADISON '.3232 sunER '2700 tl There is little new to be said about the technical action of the market. Both averages continue to hold in narrow trading shelves and , the volume of trading is at the lowest pace for the past six months. ; Until the volume increases, there is little indication of the direction 4 of the next near term.move. So far, it appears the the lowered volume is due mainly to dryi;g up of the buying urge. As yet, there has been .;;-, little increase in selling pressure. If that current uncertainty ' causes increased average to react liquidation, would expect the to the 240-236 support level. Dow-Jones industrial ;, Such a correction, if it occurs, might result in a good buying it level for iSSues in favorable groups. As has been stated many times before in this letter, the airlines have extremely favorable technical ! patterns. This continues to be true despite the fact that this group ;f has advanced sharply since my original recommendation. ;,,,,. There is ample justification for the favorable technical impli- ; cation of this group. It is the one group that appears fairly certain ;' to show increased earnings over 1950 despite higher taxes. The first quarter of the year is usually the worst earnings period for most air- lineS and the result is quite often a loss for this period. January- , P J' February trast to earnings this year are in the black losses in 1950. Continuance of the for many companies in consharp increase in passenger t' traffic and load factors should accentuate this upward trend. ; Despite the advance in the group, individual issues are still ;; selling considerably below their 1946 highs as noted in the table .' below. Would buy the issues in our recommended list during periods t of' market recession Price Now 1945-1946 High Alaska Airlines 10 American Airlines American Air.,pfd. 15' 1/2 84 Braniff Airways 13 1/2 Capital AirlineS 16 Chicago & Southern 12 ,, Colonial Airlines 10 ,,t,.,.i Continental Air 9 1/2 Delta Airlines 23 Eastern Airlines 22 Mid-Continent Air 11 National Airlines 15 National Aviation 20 Northeast Air 6 Northwest Air 14 ,, Northwest Air, pfd. 21 Pan-American 11 T-W-A United Airlines 25 28 United Air.pfd 117 , Western Airlines 14 16 1/2 19 7/8 98 1/4 37 1/2 49 3/4 35 45 29 1/2 69 1/2 33 1/2 21 34 1/4 32 7/8 25 1/4 63 1/2 29 79 62 1/2 40 1/2 EDMUND W. TABELL March 9, 1951 WALSTON, HOFFMAN & GOODWIN , ,', ClOSing Averages Dow-Jones Industrials 252.75 Dow-Jones Rails 84085 ,' Thh memorandum h not to be construed al an offer or solicitation of offen to buy or 1111 any IIcuritl From time to time Wallton, Hoffman & Goodwin may have an Int.re.t in lome or ,II of the securities mentioned her.ln, Th. foregoinq mat.rlal has been prepared b.,. 1,11 as a matter of information onl.,. It is b.n.d ,'''' upon information b.lleved r.liabl. but not neussarll.,. complete, I. no' ;uarant..d a accurate or final, and il not intended to foreclo Independent inqUiry. ..'-' ;0 . . '-. ;r-,'.Ajft,;/l- – ,, 1nJ.' 1'; ;.-,'-\7i;,r —,,,),'\ ; '; J'., '-'-;; 7 ,f, ,;f '-/'-;- ,', p-; ''– -,;;,' -,..,'/ ' '–';;' –, '/,,, ,-,/,,!, '-' ,-;- \ I , ',' ,; ',',\