Tabell’s Market Letter – November 23, 1951

..- – . .–,– – –…. – . …a.. .. –….,. ……….. k-i ' ;.-'-'';' 07'-,!-'';;- Wols ton. Horfn-lOn &- Goodwin -;'–''';,;;'-'-';';;-;';-if;J,,Z. I.'i 7i. ;,;' – / I. –q;4thNA;'n& c;/oJ! (Y/e!1. ; , , NEW YORK 5, N. Y. PHILADELPHIA 2, PA LOS ANGELES 13, CALIF SAN FRANCISCO 4, CALIF. I' 3S Wall Street DIGBY 4-4141 1420 Walnut Street PENNYPACKER 55971 f, !, TABELL'S MARKET LETTER 550 South Spring Street MADISON 9232 265 Montgomery Stree-t sunER 12700 ',' , , – ;,1; – The market approached a testing of the lows of this move on Friday .; ;;- when the industrials reached a low of 255.93 and the rails declined to 78.41;. ', The previous lows reached earlier in the month were 254.91 and 78.02. There,' ; is fairly strong support in the industrial average at 255-250 and, despite; i,– my longer term bearishness, I believe there is a good chance that the market,; ;' will hold in that area. Tax switching may cause some further irregularity , I', but continued weakness would result in an oversold condition on the short ,; term indicator which gave a sell signal last week. The intermediate term ;;,'; i' indicator has not yet changed the sell signal given in September near the ,; ; year's high but further weakness would also result in this indicator reach-'; ing oversold territory. So far nothing has occurred to warrant a change ;!; ! in my recommended policy of 75 liquidity in capital appreciation accounts. t; , However, if the necessary technical indicators are given, I will advise increasing invested position to 50 on further weakness. ,,';, ;J C The rail pattern is not quite so clear. This is due primarily to the , fact that individual rail issues show extremely diverse technical patterns. ,c' ,; – This has been true for a long time. Over two years ago, I advised switch- ,ing out of New York Central and Pennsylvania into Seaboard Air Line R.R. ,,; ', when all three issues were selling around 18. This seemed a rather startling,; -, sritch at the time but it worked out very nicely. New York Central and ,-'. ,,' Pennsylvania are still selling at 18 while Seaboard is around 60. \,\ ,-, Both Pennsylvania and New York Central continue to have mediocre ; – technical patterns and I believe better appreciation possibilities are ,' i.; present in other rail situations. Holders of both of these issues would, 'J -' in my opinion, improve their longer term position by switching out of — these issues into Minneapolis, St. Paul and S.S. Marie (Soo Line) and 0\' Western Maryland. All four issues are selling at around the same price level. I am preparing a short analysis of these four roads which I will ' be glad to send you upon request. ,, I am repeating below my recommended list of individual issues -,,-',,.' , —..B;;E,T…ToE.R…..G..R.;AD.;E- MEDIUM GRADE SPECULATIVE ;;J , American News (33) Armstrong Cork (52) Endicott-Johnson (29) Fairbanks Morse (53) Hazel Atlas (21) ,- Marshall Field (28) . Masonite (36) lMcGraw Electric ( 53 Montgomery Ward (70 ' OtiS Elevator (35) Owens Ill.Glass (80) American Radiator (16) Associated Dr Goods (20) Blaw Knox (17) Bliss (EoW.) (15) Bucyrus Erie (24) Burroughs (17 ) Carrier (22) Certain-teed (16) City Stores (19) Columbia Gas (15) Columbia Broad. (28) FiAmerican Airlines (16 Central Foundry (9) ,;') Columbia Pict. (13) ;-,,'! Cornell-Dubilier (18) -'i Cuneo Prfss (12) Eastern Airlines i- (25) i Gray Mfg. (15) ,,;;, Gulf,Mobile & 0.(28) F, Int. Tel & Tel (16) ,ie' Minn.St.Paul SS (17) .,,,\ Northwest Air.pf.(21) ,;. Western Auto Supply (46) Elliott (26) Fruehauf (25) Hall Printing 19 Hewitt Robins 24 Poor & Co. B (18) Radio Corp. (22) Raytheon (101 Spiegel (11) ';, ,, , , Lerner Stores 23 Lowenstein (29) National Supply (29) N.Y. Air Brake((2Q) Pacific Mills 31) Paramount (25) United Airlines (30) ,\ Universal Pic t. (12) Western Air.(14) i Wes tern Maryland (19) ) \,b ,,; ',,'/'', Phllco (26) Shamrock Oil (30) Smith,A.O. (37) !, ' -, Std.Steel Sprin (23) Sylvania Elec. (32) 20th Century-Fox (20) November 23, 1951 Dow-Jones Ind. Dow-Jones Rails 256.95 78.65 EDMUND W. TABELL WALSTON,HOFFMAN & GOODWIN