Tabell’s Market Letter – June 27, 1952
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– kf'(,-,- -;,,',''; —–'-;.'!,' — ,, Wolston.Hoffl1101l ….',.. Goodw,on ,- , ' /- k- v; NEW YORK 5, N, Y, PHILADELPHIA 2, PA II,'! iJ I' 35 Wall Street 1420 Walnut Street t . DJGBY 4-4141 PENNYPACKER 55977 k;; ———– TABEll'S MARKET lETTER 0, \.. …… I , , . LOS ANGELES 13, CALIF, 550 South Spring Street MA.DISON 9-3232 SAN FRANCISCO 4, CALIF, 265 Montgomery Street SUTTER 12100 iIff),-; ,;',, ,/,; LONG TERM INVESTMENT I continue to advise a 100 invested position ;!'p accounts concerned mainly with i'eyer, at this stage of the market income and longer term appreciation. Howpattern, would concentrate holdings in ,',,– Undervalued issues with defensive characteristics – '– ;Lr't,, Price 1951 Earnings 1951 Dividend Yield RMSTRONG CORK 50 5.35 3.10 6.2 ;', The company manufactures a wide range of products including linoleum, ;sphalt and rubber tile, corkboard insulation, molded plastic closures, lprown caps and numerous other specialties. The common stock is a better rade equity and appears reasonably priced at current levels. The average price over the past ten years has been approximately 45 and the average ' ' yield has been 5. The company has shown good growth with sales 201 million, in 1951 as compared with 78.6 million in 1941. The company's capital expen' ;iture program Since 1946 has resulted in a modern and highly efficient plant. arnings for 1952 are expected to approximate 5.00 and the present dividend fll-ppeal's secure. ,'; j From a technical viewpoint the stock has a favorable pattern. The 1951 high was 59 and the stock is now at the very strong 50-45 support area. he long term upside objective is considerably above present price levels. — if;Purchase is recommended for excellent yield for a stock of this quality and '-or long term price appreciation. Price 1951 Earnings 1951 Dividend Yield ; Ql!C';S'-ILLINOIS GLASS 72 5.57 4.00 5. 5 JII \0 – \; The company is the largest manufacturer of glass and glass containers',, ;1,J.sed by the food; drug, milk, liquor, beverage and brewing industries. Other',, ;products include structural blocks, electric insulators and scientific ap- 1'paratus. The company 1 s television tube diviSion is expec ted to increase in ' hine with the addition of new television stations. The company recently solo.,\ ;90,000 shares of Owens-Corning Fiberglas stock but still retains a one-third– ;4nterest in the company whose growth record has been ,sensational. In April, r—- 1,t1'lenc-Illinois sold its American Coating Mills division to Robert Gair Com- , ;,pany for over 3 million plus 400,000 shares of Robert Gair common. An i,', 'additional 100,000 shares has been purchased. Owens-Illinois also has a , ' , i;large interest in natural gas producing properties in West Virginia and (len!1syAlvtanpirae. sent levels, the common stock of Owens -Illinois, a high grade ;'; ''equity with substantial growth prospects, appears undervalued. The stock sold, ;;as high as 89t in 1951. Possible selling by Allied Chemical who owned 208,309 ;'hE es of Owens-Illinois may account for recent weakness. Earnings for 1952 i-;, f',should approximate the 5.57 earned in 1951. The technical pattern is excel; 'lent. The stock is in an uptrend channel with present outer limits of 70 and l95. The long term objective is considerably above 100. Purchase is advised ; /if'or equity, income and appreciation over the longer term. , ,', CAPITAL APPRECIATION In risk accounts concerned mainly with capital' rjl.ppreciation over a six months period, I continue to advise a 50 to 75 ;-,,' (liquid position. The market has built a technical pattern that could possibly hitndicate a sizable potential top.This by no means is certain but it places I, t.i,/the market in a very vulnerable position in the event of unfavorable news ;, developments. Price 1951 Earnings 1951 Dividend Yield V,– ;.',1 ;;GULF ! MOBILE & OHIO 36 5.42 2.00 5.5 )1; This issue has long been on my recommended list 0 It was recommended (;, in the 10-15 area in 1949 and 1950 and again at around 25. The stock recent-i,–' ;'(,ly reached 37 3/8. The longer term upside objective on my technical work is ',,-' i,36-40. Suggest taking profits. ', t,! The mailing list for this letter has grown to such enormous propor- ;' l;;tions that we have been regretfully forced to eliminate all regular mailings, I,except to those who have accounts with this firm or to those who are re- tceiVing the letter because of some' special reason. .', ,i EDMUND W. TABELL II, F1/' ….,,1 JLJ;fi.crntlmaF7ndurnlrObJ. b. an Tnt1mf!t In 'td, or all coofndthreuesdeciunriatinesofmfeenrtoirmseodlichitearteiionn of offer. to bl.! Th. forec;101ng materIal has CJltlt bn prepared . by us to as II matter of iformatmioan n Goodwin may only. It is based upon Information believed rellabl. but not neceslarll), compl.t., Is not guarantd as accurate or final, and b not intended to foreclose Independent inqUiry, ,. , , I'z.. If c ' tilf,/.' ,0/i;'fU;'-;.'-.;,!!,' .,-!\;.f.'' …. ',,7 '\,' ;'-. Jj''-,'. 0…- .r.-,..'- . -; – r – – -.-' … .' .' ,' .,,-.-.,. '-. -.- . -;; ,I '.. -.– '. ,'' ……– !.i, ,…. !-,\. –