Tabell’s Market Letter – July 11, 1952

r;'' ,– ) -, , L , I i NEW YORK 5, N. Y i- 35 Wdll Streef r,!. DIGBY 414141 WoIstol1.Hoffnl0n &- Goodwin 4.t''e-…tf c.tr PHILADELPHIA 2, PA /420 Walnut Street PENNYPACKER 55917 LOS ANGELES 13, CALIF. SAN FRANCISCO 4, CALIF 550 South Spring Street 265 Montgomery Street MADISON '322 SUTTER 1.2700 / t,,', t',-, t L. ' – o' TABELL'S MARKET LETTER – During the past week, 1-, ' Dow-Jones industrials nor the rail/ (were able to reach the July 1st highs of 276.25 and 103.42. Moderately low-,, Ler levels prevailed during most of the period with the industrials declining I,',;to a low of 271. 73 and the rails to 100.42. The Eisenhower victory and hope .-Df a steel strike settlement lifted prices from the lows on Friday. , o,-; For the market to retain a sound technical pattern, any near term de- fi'cline should halt in the 270-268 level. There is support at roughly 270 ' i-'Whldl .is the area of the April high of 270.40 and the June high of 269.92. ,– (,''Secondly, a dec line below 270 in the next four days would bring the short ,, r'term indicator into oversold territory and, thirdly, the uptrend line from ;'!'the May low of'254.70 nOli S';-l' at about 268. Thus, any decline halting at!,- Vroughly 270-268 would m03t likely be followed by another attempt to pene- ,'— Vtrate the 277.51 September peak. A successful breakthrough would indicate 3; ;-.the probability of 285-295 over the intermediate term. However,a break be- (- '-low 268 would definitely put the mark!'t on the defensive and would have l;some rather ominous downside possibilities. It would imply the second fail-;;- iure to break through the overhead resistance and would create a triple top.- ;;,'It would also imply another test of the November and May lows of 254.91 and-, 254.70 but in this case, it would appear doubtful that 255-254 support level ' ;Vlould again hold. A downside penetration would indicate 235 followed by a' r'later 220-200. The 268 level should be watched closely. The compara.ble L'point on the rails is 98. l- LONG TERM INVESTMENT I continue to advise a 100 invested position r, i',;in accounts concerned mainly with income and longer term appreciation. How-f ever, at this stage of the market pattern, would concentrate holdings in f,- undervalued issues with defensive characteristics. ,,- (i- st o c k s Listed should below a now be 7re tw nty is consdered su as es my i n e my ntir recommended e Long Term list. These twenty Investment List. ;- ' ;If held, I council retention. For new purcc1ases would await periods of ;' I', ,moderate price dec line. l- i;'; They are all issues of better to medium grade investment quality. The (—–. ;longer term tec;mical pattern of these issues continues to suggest higher ',- ;pricelevels. In the event of a general market decline, these issues should!' tshow above average market action , ,- ,;' , l-;caftor – 7/11/52 Price 51 16 1951 Earn. 8.19, 2.16 1951 Div.-A 3.50 1.50 Yield 6.9 9.4 1951 – 1952 Range 54 o 17 – 12 ,,–, , r;'Armstrong Cork l',iBlaw Knox LBucyrus Erie – r- Burroughs Add .Machine -Celanese It;''CHoalullmPbriainGtiansg – Joy Manufacturing ; Lone Star Cement – Montgomery Ward 1, – O\ens Illinois -' ;kM6iis v;,;;,-Smith, A. O. t!WSyelsvtaernniaAEutloe ctric SU1)ply 51 17 26 17 42 14 16 4 34 39 36 35 49 5.35 2.55 3.67 1.52 3.56 1.06 2.4'7 b6 t;i .94 3.87 7.00 4.19 7.43 3.10 1.25 2.20 .90 3.00 .90 1.22 i6 tg 2.00 2.00 1. 60 2.00 4.00 6.1 7.4 8.5– 5.3 7.1 6.4 7.7 J tt 5.9 5.1 4.5 5.7 8.2 59 46 20 15 27 – 19 , ,, — 18 – 13 ,F- 5836 — 16 – 12 !, 19 – 15 ;/ – ,y- j'i 49 – 28 ,- 40 – 29 39 – 32 ,,,-' 39 – 23 ,- 54 40 !- A – Inc luding Extras. – Prospectus available on request. ;;,' CAPITAL APPRECIATION In risk accounts concerned mainly with capital r ) appreciation over a six months period, I continue to advise a 50 \0 75 r,; liquid position. The market has built a technical pattern that could poss- I' ';- ibly indicate a sizable potential tOjJ. This by no means is certain but it ,- i'. places the market in a very vulnerable position in the event of unfavorable ;', news developments. A list of recommended issues will be included in next ;'-, i. week I s letter. EDMUND W. TABELL '- 1952; Jll J Y 11. lnSTOj\! HOFFMAj\! & GOODWIj\! TMs memori!lndum 15 not to b. construed illS lin off.r or solic/fallon of offers to bur or self IIIny secutit1es From time to lime Walston, Hoffman a Goodwin may \ have an Intefest in some or all of the securitle, mentioned herein The foret;oin9 material has been prepared by us .!II II mett.r of information only. It Is based -C'' '– '-,- ' — -,' ,s.kI,;y;;u,p;o-nI-nform'',alt'l'otn''bel,i-e-v'-e-d'i'r'eliable but not ncelllm'., completfl', 'S not ;ullranteed ' accurate or Iinal lind is not intended to foredole-Independent inqUiry c —';;——-'-',—–' -' – –. -J