Tabell’s Market Letter – May 23, 1951

Tabell’s Market Letter – May 23, 1951

Tabell's Market Letter - May 23, 1951
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— —-. – – .I—————— . , .. &-,I Walston.Hoffnlant;;..,;c',,.,.-,,,,-..' .' …c., … ,., Goodwin, ',' .,'cc, .—.. –'i\ ,'.!., ..! ,',I NEW YORK 5, N. Y 46;u-d (/;c PHILADELPHIA 2, PA LOS ANGELES 13, CALIF SAN FRANCISCO 4, CALIF, ,;;,\ 35 Wall Street , DIGBY 44141 1420 Walnut Street PENNYPACKER 55977 I'',It')l 550 South Spring Shellt MADISON ,.22 265 Montgomery Street SUTTER 12700 ;l',, TABELL'S MARKET LEnER ;– , fc;( 'i',e l'ails pene'Jra'ed the lViarc 1, 1951 low cf 78.G5 on 'lay 21 \Del I,-then (ecl.ined vO an nr2.-d3.y leN of 75.03 '.n IVIar 24. T'lis seels .. 0 con,,.f'ir t-le sCand previousl;' taken bf his letter th2.- 17'2 are i11. an in,er.e la.e dcrn1rend. The indstrial average fell co a low point of 241.S cn i,,;,'he S8 e day, \lhere it jus t abou L held at the Marc \1 19'',1 bO'cte of 242.06. ,)l'he f2.ct ccat 'he wee'.'s decline stopped a aoout ,-le '-arc', 10 lor l;e ;,,''nC.usr21s no.ic….;es -..re pcssibll that there -.aT oe 2.. s;lor te;' —11j; . of se,. e i1a cure. 'I';le aru;.lent in f2.vor of a short cer; ra.lly is basecl cn ;-…;he ;c1i;3.1 cbservc. ion th2. so.e stoc!S have nc. /e.. fCl'fed ver-;,;- broad ;..'p f r' 'a c.l.ons. or exa.ple, sO;'e furt' .er '.'lark appears to be needed ',c , ,,''. t5 \,.br,;C'den out tcp pa'cte'ns 'n s,ech ;roups as oils acyl c.e.1-icals. On ,he .er hind, groups such as steels, o'cors and papers bave already b'lt ,,1-,p rG.Ci1er subSvanClla t cps., ,' ,c. There is a probability, 'chen, that the rlarlcet ;i'l1t h01d for so;' e ',,, '!f'!.rTt'11eI' tir.1e in the 2'f2-250 range. However-, I believe '. hat even cta 1 1' the 'T.'h rCl lCjs l'L11 be broken en tle d01'lnside rherefc'e, \'Jou1c s.cvise t,;'n ,c.UvQ.lt,.f)e of 2ny strenst-l to lishten hold;ns 2nc. b'lila. Ep purchasLr, )'p ,er 80 as t talce ldvntage of future sell-oft's in t;le .J.rket. Lcol2.n2 P.I e.l., 1..p8rtant slpport points lc …ld be 235-232 f-r the !..ndustr'Lls ..ild ,.,..I. , -I,'-U- f vr 'Cj .-Ie ral'1 s. , ,l ,,, L.s'ced beL-,vl ..re additicnal stac's 1li'011 e,;ccellent lcng ce'.' 'po- ',; y'c''.ls ;,;; .' , RADIO CORPORATION OF AMERICA is the leade' 'n the elec trcnics i'-!.f.eld. I originallj' reco.1Lended its purchase in' the 10-12 ran;e .nd advised profj.t-t&.lins a)c 21-23. Since -that ti;(e tle stcc reacted t'e 15 2nd '1rcllied bacl' tc 21. The current price 's nO'J IS l/S. The f!..rs o..arter i. .,'' ;',e'.rnillEs for 1;'51 l'ere Lhe best for that period ,-n the histcr…- of tle COl.'- ,.. iP2,T. Earnins -Jere eqtal to 30 cents a co,',on 3hare cc.pared 'iLch 75 )ntE last year. Erninss ;or all of lS50 totale 13.10 and 1.50 !n divl- .l,lencs 'os paid. ''e ccp2.nT \'Iill be able ;;0 ear, 1.50 to 't'1-2.00 il si'la'e ; , ;,; ef'cr'e ecess pr0f'J.ts ta;es apply. It is iJelieved t'lat ul-;i.,.,tel; the RCA , 1,,1i-,, 'ste . (f' colr.., television iLll be sed. T-Ie co; ,p8.lJ.. ene,aE,es .Ln ' all ph..ses .;' ;, 'rJ YaC'. v, teevLsi -n and related fielcis an-. 't is ccnt.Ji'Ltosll' addine; ne1 . ;,, ,;.proG.'J.cts in tole electronics fielc'. In addition, of cCLrse, '-t owns 'ce 'c (i.u;ional BrcacJ.Gast Ln.' Co;pany. I believe -chat the stcc is nildin6 'jpa- ;! r(,\el';' strGn2; re-acru.ulation pattern. It is posoible t-,at it j',iay be 3.vail- i;ble at sliGhtly lO\'ler levels. I Vlould. Cl2(aiE add it tG r..- r2co;,ended list ;,'; ',i'.f i t i.s available in the 15-17 area. of!''; I'l0C;OPOL.4, H!C (45) for;,erly G&lvin M2EufE.cturin;, is one I,;, the;-.', U;f'ciur lartest television producers in adcJ.ition to beip6 the ost i1 portant ,,'Cactor in aute..otile radios and tl'lO-way cor.w.nicati.cI! syst0,c,S for police 'ri;'ars, rJil,'ays, etc. Also r.anufactures electroYic equipr;,ent vlhich allei'is (;e. 'ote c;or,crol cf ,.eters and valves. This can be ,sed by pipelines, ,i.,t ili'c ies, etc. Earnings f0r 1950 ',Jere 14.56 a COJon share on the hCOj O!JC shares of con;-lon stock now outstanding. For the Marh qlearter of , ,- QS5l oer-share net ca',1e to 2.92 after heavy taxes againflt 3.21 in the i,;nrst' quarter of 1950. Motorola has esti!1ated its EP'I' exe;-.1ption ,t 7 .50 '-'2 sl- 2.'e after ncri..al and s''rtax, based on the present tax 12ViS. D,-vidends ('bf ;J.f.09 \Jere paid in 1950 and the stoc' is preser'ltl' on a regular' 2.00 ,', '\J.ivic.nd basis. Over the past year and a '.1111' the ste-c! has had c'ide ;lra,bicns 'in price tetween approi,atel-' 31 and 57. It has re entlc' opoen c.t , !.A.m r, dOllnside of the 52-47 trac1in,; range and there is possible dOl1Dside Ln6ic.3.tion of 0. return to the lLO-35 rane. If tIle s)cocl is availab'le ac this-, ,;level I 110uld advise its purchase. The LmC 'Ger;-; techn'ccl patte'rn is good .;.; i;and sJ.ggests much higher prices over the longer ter;l, It is one of the i';fdore inportant cOll'panies in the elec tron1cs and television groc.,p 1'lhich, in ,. fJ1 c! inion, Wic0..th,,eadi'EUPD,'.1eTnABeJE'LoLlarlet,se. ' rt-t' . 'I'- …. .U1U.J W rna'i, C .3, 1S'51 viALS' 0;.-, OFFiIlAN & GOOman , l'b ,I 'losi.l. ,…J es i;.. DOI-Jenes Industrials 245.27 iJ ,–……D…C…….\-J.,.-on…es,–R..,a-l-l..,S–;–. .7-.-L- .;-.'—;—-'–;;—–;;;;;—;-;;;;;;-;;;;;;; T l,;I/,;h Thh memorandum Is not to b. hll…. an Int.rest ill some or all condruld al lin oH.r or solicitation of the ..curiti., m.tio.d heteln of offen to buy or 1111 Th. foregoing material any hal b'eIecnuriptiresparFerdombyt.imUIe to time Wallton, Hoffiln .111,11 matt.r of Informatl & Goodwin may only 11 IS. b,ued ,,I UPOII Infotmatloll believed rellabl. but not neulSarily complete, II not uaratllGd III accutate or final, and Ii not Inteded to foredose Independent Inquiry f.\7hf,(;,'' ..'t,'Y\;7,'i'T',1.(-';.'—-.- .' / ';'i, 'L .. J.;' .', L . ',,'';.,'''(,-'t'-'- '.' '.'/', /

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