Tabell’s Market Letter – July 18, 1952

-, '1 ; ; , ''',,' ''''';''' Wolston.Hoffn10n &- Goodwin,' –,'-,''–' ',';7- oez;i,J 6 'tMMNe;ZC rJkcprd&f ;,'. ,i;,f,; NEW YORK 5, N. Y PHILADELPHIA 2. PA LOS ANGELES 13, CALIF. SAN FRANCISCO 4. CALIF. );, 35 Wall Street 1420 Walnut Street i'('; DIGBY 4-4141 ;;1', PENN'(PACKER 55'77 (c c; TAB Ell'S MARKET lETTER 550 South Spring Street MADISON 9.3132 265 Montgomery Street SUTTER 1.2700 r ,.' f-,,' tV I L f; r–. )/'''' ,j,,,' (,-,- if-' t.! I',1/', ,f-,',- ,, , , I (; ,The DOW-Jones Industrial average reached an intra-day high of 278.05 on r\ iWednesday before declining for the balance of the week to a low of 27.1l ,,- jh Friday. The rail average failed to better the early July high of 103.42 ;' d declined below the July 10th low of 100.42 to reach 100.23. The relat- ; yely unfavorable action of the rails and the EmaIl volume of trading at a ;\ ,1me when the indutrial average is at the top of tl'\e ten month t!'ading ,, ange casts considerable doubt on the ability of the market to move higher , ,t this stage. The action of the industrials has created a potential triple \; ;tpp at the September high of 277.51, the January high of 276.26 and this h weeks high of 278.05. The fact that my intermediate term indicator gave a ;,', Sell signal on Friday also suggests caution. The first support level in ',.. the industrials is at 270-268. A decline below that level would indicate a esting of 255-254 support level of November and May. The first support 'o' 'evel i;1 the rails is at 98. A decline below that would indicate a probable ;testing of the main uptrend line at 90. ' ,,'ccounLtOsNG TERM concer INVESTMENT ned mainly I wit continue h income to advise a 100 invested position in and longer term appreciation regard- ', i' tt!;Less of interme'diate trm fluctuations. However, at this stage of the market ;Pattern, would concentrate holdings in undervalued issues with defensive f .haracteristics. Twenty issues of this type were listed in last weeks letter,l, ;',c CAPITAL APPRECIATION In risk accounts concerned mainly with capital i appreciation over a six months period, I continue to advise a 50 to 75 l ;,t,iquid position. The market has built a technical pattern that could poss- '– tbly indicate a Sizable potential top. This by no l7lee.ns is certain but it p'laces the market in a very vulnerable position in the event of unfavorable ',, ews developments. Listed below are ten issues in my recommended list. These ten ;.i'tocks should be considered as my entire Oapital Appreciation List. If held, iJ; counsel retention. For new purchases, would await periods of price decline i-,' r;;' 1951 51-52 r, , '' ,1,; Dividend-A Yield-B Range ', I', , arrier Corporation C'ertain-Teed 1.00 1.00 3.9 6.8 28-1' 18-1 1I,,;' !Eastern Airlines .50 2.2 30-19 Oray Manufacturing nternational Tel.& Tel. Minn. St .Paul & s. S.Marie 1.00 .60 1.00 6.8 3.3 6 .2 r17-10 i' 19-14 ' 21-14 1aramount Pictures Universal Pictures Western Airlines () stern Maryland 2.00 .60 .50 9 5 4.5 fl A – I(;tds' aval;bsOnrsvidend. 33-21 14-9 16-10 29-18 l(ist';,- l -' , \';, July 18, 1952 ; , Dow-Jone s Industrials – 273.90 ;, Dow-Jones Rails 100.60 '7 'y '-, ,/,'\ (i,' – , 1,',- EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN ' i,. , t- f– .. , 'I,' ' Z(,' I ,, , ' L rtl( This memorandum i, not to be construed oil an offer or lohdtation of oHeu to buy or sell any seeunli.. From time to time Walston. HoHman & Goodw;n may have an interest in lome or all of the securities mentioned herein The foregoing malerlal has been prepared by us a, II matter of information only. It is b.ned 7,.-'- upon information be!1eved reliable but not nec.euarily complete, is not ;uaranteed liS accurat. or final, and is not intended to foreclose independent inqUiry. -, I – – ''\, ,I, I -, ,,'- , , , , .-