Tabell’s Market Letter – June 29, 1951
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———————————————————————-, '' ,,';'111/ 3SWall Street 1420 Walnut Street .j,'ti,Jl DIGBY 4411 PENNYPACKER 55911 TABELL'S MARKET LETTER 550 South Spring Street MADISON 9-3232 2bS Montgomerv Street SUTTU 127OQ &,'!,q m'if. l If! '1 !I!i Both averages trial average sold on Friday down to a reached new lows for the move. The induslow of 240.72 while the rails reac ted to an ,'WI 1)1ii(1! i n t ra- d ay 1ow 0 As readers f 71 78 of this letter know, I have been cautious about the li'\i'iI;/'l !10! market for a long time and have consistently advised taking profits on 121 stocks whose purchase was recommended at the 1949 lows and at the Korean I ilj 1 break of last July. I have advocated a While advising retention of a few recommended issues, 75 liquid position in intermediate term trading ac- ,J t. w\! counts. I still believe the market, as measured by the Dow Jones Industrialt,i );'6 Average, will work moderately lower, It is possible that, later in the !i;! year, the average may react to the 225-215 level. However, all stocks do ti not reach their lows or highs at the same time, For the balance of the V,'Id year, the action of individual stocks could the averages, I believe it advisable during be much periods more important than of further weakness ; /ill 'I! I!',\t\j g to use a portion of liquid funds, say about one-third, to purchase issues ,1'2 ;l/,, with attractive long term patterns, This would gradually bring invested 'III j7;11 ff 'l h o s i t ion In su my p l to ette a r b o o u f t 50 May 0 1 5 t h , I presented a list of issues with strong ,!,, long term patterns, The buying range was also indicated, Some of these iW,I! fi issues have reached or about reached these buying levels. They are listed t 1;,\ below together with the low of Thursday or Friday 1,4 I' 11d,(, i', 1,1 BETTER GRADE Recent Low Buying Range f 1 t!Ii./I'!It, tji 1, Masonite /7'1''11' Mon t gomery Ward 31 30-28 !,f;!. 67 66 – 64 j'fill'l;l;' iwi,l,Owens-Illinois t;!Western Auto-Supply -78 1/4 45 3/8 77-75 45-43 IiI,;;) \Westinghouse Electric f MEDIUM GRADE llil/Bucyrus-Erie I!,M', Carrie Corp, I' Elliot Co. 1;' Hall Printing ; National Supply 34 7/8 19 3//44 20 3/ 22 I 2 16 1/2 23 5/8 36-34 2Cl-19 21-19 23-21 17-16 25-23 fij (; 1fF'J!,lI,'1,iI', f ! i';;Pacific Mills 'i)-ijI,/'! Paramount Shamrock OJ 1 37 1/2 21 1/2 29 3/4 39-37 22 – 20 30-29 1; l1r;itlil '!I',,', Smith , A.0, ffiMU! SPECULATIVE 33 5/8 36- 34 11)1'.i1i tW, F\ American Airlines I')! Columbia Gas t) Columbia Pictures 14 1/4 13 11 11//42 15-14 13-12 11-9 i; ;Ii;( U'! Eastern Airlines 19 1/8 20-18 l\L' ' Gray Manufacturing 12 12-11 !; I; Gulf, Mobile & Ohio 23 1/,4 23-21 !U;'I' ;/;1 Int 'I. Tel, & Tel, 14 3/.4 15-14 '11,1 Uni ted Airlines li(l',;I'Ii' W e s t ern Th e Maryl rail a nd av e r a g e , at Fridays 215B 5/8 low, had declined 26-24 20- 18 about 22 from the ;7l;f1 I'i'' )'i I,ti years high as compared with only 9 on the industrial average, In my i,iiloPinion, the rails will not decline much below 70, They should be bought ; I; on further weakness for the long term holding; of course considerable J.time will be needed to build a base pattern prior to an upward move, so 'i;'! r;! IWi some considerable patience may be required. I'A;Ii June 29, 1951 B 'Closing Averages EDMUND W, TABELL '!!i u17.'.1' fJ iU'! Dow-Jones Ind. 242,64 WALSTON,HOFFMAN & GOODWINllj;;1 ill Dow-Jones Rails 72 39';1 jI.'!l I , 4;l!I,Jl\ This memorandum I. not to b. con.trued a. an 0' or loUeilallon of offln to buy or .111 any ,.curitl.. From tim. to tim. Wallton, Hoffman Goodwin may have .n 1I1t.,,,t In loml or aU of the sicurities mentioned h.r.ln Th. fotl;olnq mat.rial has bun prepared by UI as a matt.r of Information only. It 1. bd upon informltlon b.n…..d reliable but not ecearil, complete, Is not ;uatat..d u accurate or final, and II ot inteded to forecloll Independent IlIqul. lJj!Yi;lc',/L\1 7!!/1!l,1f.,72.rts..!f.,rjlrt.;f.ftil';;7J…5t.1'ft,;;..;r,'-;Et..,; 5Yj ';j,;r.''-;.-; .,,,-;L77;;f)-;-;;.t;.;,'l!,;iI7.;';5 !ltf1,1,-;.rJ!;!F.,,9i1;l!lrf1l.ll3\7tL;,1 ;, If, .,