Tabell’s Market Letter – August 03, 1951

f.' -', , !( 1;'1 1, t,/,' ,,, , ' , I I,',',f, NEW YORK 5, N Y ), ' 5 WU Street PHILADELPHIA 2, PA 1420 Walnut Street LOS ANGELES 13, CALIF, SAN FRANCISCO 4, CALIF 550 South Spring Street 265 Montgomery Street t' ,1' 1l/1l', /I, DIGBY 44141 PENNYPACKER 5 5977 t.,i' ;'l , '; TABELL'S MARKET LETTER f;' MADISON' 3232 SUTTER I 2700 1', ;',11 hl,'i,II,'' til The Dow-Jones industrial average slightly topped the May peak of ',' ;)264.44 at the week's high of 264.78. The rail high of 82.18 was still a -;; I'considerable distance from the February high of 90.82. ,I 0 ,It is still uncertain whether the long trading range in which the ,,' v,' imarket has held since the first of the year will turn out to be a broad top (, r!.resulting in a steep decline later in the year, or whether it will turn out ,-,', \;-,to be a period of re-accumulation prior to a continued advance. The answer ,, i!,/iShould be given before very long. ,, ;,;,; Under the present Circumstances, I see no reason to change the ,,',' investment policy advocated by this letter recently. If the advance is to ;'( , 'continue to much higher levels, new stocks must take over the leadership. i., i','That is why I have advised that 50 of available funds be invested in se- , i,/lected secondary issues that have good prospects, high yields and favorable' ')long term patterns. Stocks of this type could advance 25 or 50 in the ',' Vevent of a further rise in the averages. If the market declines, it is ;;'1 ('probable that these unexploited issues will meet support in an area not , ;'much below present levels. Would continue to keep 50 of' speculative funds, ',1 iI)liquid until the uncertain pattern clarifies. , ;',;, I consider the moving picture s,tocks as an outstanding opportunity, ; 'for substantial capital appreciation. The unpopularity of these issues sinc' l,1946 has been justified by a series of adverse happenings that resulted in a i)sharp decline of over 60 in the general price average of the group. The i;, imajor part of the decline occurred in 1946 and 1947. Since 1948, most moving'; ,picture issues have been holding in a narrow trading range. f',i Today, they are selling at close to their eight-year lows in a ;, ' (,,market that has advanced almost 100 since that time. The motion picture '; 1d'.iICOmpanies are a major segment of the amusement industry. If' we consider I ,, ,this industry as a whole, it would appear that the outlook is extremely;,' ,'favorable. People today have more time, money and desire f'or amusement than ; 'ever before. The pattern is distorted by the advent of a new form of amuse–. i ment – television. The fear of television may be greatly exaggerated. It is II , possible that the moving picture industry will ultimately turn out to be ',- cthe dominating factor through control or alliance with TV. Radio did not ,–J !i',kill moving pictures in the 1920' s and there is no reason to believe that ,,;television will do so. The amusement field know-how is still largely con- Lcentrated in the moving pic ture companies. ;;,- i' As of' today, the moving picture stocks appear to be sharply over- 'I, ft,tshorlede. Technically, they have years. I recommend the been under long following seven term accumulation f'or the past , stocks as candidates for sub- ' ;;';,stantial term price appreciation in speculative accounts. 1, , I;' ' Est. 1951 Estimated '1, Price Earnings Dividends Columbia Pictures 12 7/8 2.05 -A .75 -A Loew's 16 3/4 1.65 -B 1.50 -B Paramount Pictures 24 3.00 2.00 Twentieth Century-Fox 20 5/8 2.75 2.00 United Paramount 20 4.25 2.00 Universal Pictures 10 1/4 1.65 -C .50 -C Warner Bros. 13 3/4 1.35 -B 1.00 -B A – Fiscal year ending June 30, 1951 B Fiscal year ending August 31, 1951 C – Fiscal year ending October 31, 1951 Previously on recommended list. , / 1 August 3, 1951 EDMUND W. TABELL WALSTON; HOFFMAN & GOODWIN Dow-Jones Ind. 262.98 Dow-Jones Rails 81.47 7- 'I , ,I This memorendum is not to b. construed 115 an off'!r or solicitation of offen to buy or sell Iny secl/nties From time to time Walton, Hoffman & Goodwin mollV have an tnt.!ut in \(11'1. (I! all ai h.. t..C\,Ifm.S menianed ….,..In The ofeqolnq materiat has been prep4red bv \,IS 4S 4 metter of In'o,maon only It II based upon information b.li.y.d r.liebl. but not n.Clnuity compl.t., b not ;uaranteed as accurat. or final, and is not intended to for.clole independent inqUirY ',,' I'll , , ,-, , ' -'/lI' , , ,'. .'1' , I , . ', ,