Viewing Month: August 1952

Tabell’s Market Letter – August 01, 1952

Tabell’s Market Letter – August 01, 1952

Tabell's Market Letter - August 01, 1952
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… . '..; .c …..''- .-….. .' .. , '- 7-, –,- — PHILADELPHIA 2. PA. LOS ANGELES D. CALIF. SAN FRANCISCO 4. CALIF 't,– …,',; 35 Wall Street 1420 Wo!Ilnut Street II' DIGBY 44141 PENNYPACKER 55977 ;(/' I 'I 1'.; TABELL'S MARKET LETTER 550 South Spring Street MADISON Ii 3232 265 Montgomery Street sunER 12700 ,,, .' .. I' I '.11..'. I\- it;ff,;1 All of the Dow-Jones averages reached new high territory during the t',A';' i'. t.past week. The industrials bettered the previous week's high of 280.05 at –) i'friday's top of 280.49 and the rails moved sharply above the early J u l y ; '.,;' ';'-'peak of 103.42 to attain a new high at 104.38. The utilities passed the ;.. !.,'arch high of 50.47 to reach 50.65. The combined 65-Stock Average, of ', Hourse, also entered new high territory at 108.21. . '.' . The upside penetrations indicate that the possible upside objectives . ; are the 285-295 area on the industrials, 105-110 on the rails and 52-54 on '.' !;he utilities. The fact that the upside objective on the 65-Stock Average )cis 110 apparently indicates that the lower part of the areas are more J.ikely to be reached than the upper zone. r.ie,, i;.; It is strange that the advance has not resulted in more speculative . ;'nthusiasmo Volume has been small with no seSSion totalling above 1,300,000 .' i\Shares and the new highs in the averages have been caused by strength in a '. ,relatively small number of stocks. At the sa!!le time that a few stocks are ;eaching new high territory, there are others hat are selling near their ,',,,' ;respective lows. This implies a lack of breadth and indicates caution des- '.' lpite the seemingly strong action of the averages. ,' LONG TERM INVESTMENT I continue to advise a 100 invested position, '. ;'j1.n accounts concerned mainly with income and longer term appreciation re- i. ,gardless of intermediate term fluctuations. However, at this stage of the ;', (lj1arket pattern, would concentrate holdings in undervalued issues with de- ' , f'ensive characteristics. Twenty issues of this type were' listed in the i.itetter of July 11th and American Telephone & TelegrapQ () was mentioned i' ,. /In last week's letter. ., r';',' All of these issues appear to be interesting long term holdings if iavailable around originally recommended levels. ,,) CAPITAL APPRECIATION In risk accounts concerned mainly with capital ….,. ;ppreciation over a six months period, I continue to advise a 50 to 75 i', ).\liquid position. While the market may move somewhat higher over the nearer . '. ,'term, it would appear that lower levels will be reached before the expira- ,., 'tion of the six months long term t;ain tax period. Therefore, it appears ' ,prudent to have a cash reserve in capital appreciation accounts to take ad- '.c wantage of possible buying opportunities. Such an opportunity was presented l;;1n June, for example, when Celanese reached 36 3/4, a 37 dec line from the (.' 71951 high of 58 1/4. The distributional pattern formed at the top indicated ;'.) ;!to-35. The stock has since rallied almost ten pOints since its recommenda- ;. ;,tion. Another group to be watched closely is the wonder drug group. This . !.1etter has long mentioned this group as being in a vulnerable technical ' ,position. Howev.er, they now have declined sharply and are approaching their ',' i;downside objectives, as noted in the three issues listed below ; ,. 1951-52 High Recent Low Downside Object. , c' Abbott Laboratories '.. Parke Davis & Co. ;,; Pfizer (Chas.& Co.) t!' 64 1/2 49 1/2 63 1/8 42 1/8 465/8 333/8 . 45 40 32-27 ;.. r. ; – ;' In the event 'of a moderate further decline, these issues would appear).; i.to be in a buying zone. There are many other groups that have built up po- ;' ;'!tentially vulnerable patterns and will eventually reach downside objectives . .i'. irhere is usually less risk involved in purchasing issues on weakness after i' h steep decline than in buying them after a sharp advance. Obviously, how- ;, ;ver, some funds must be kept liquid in order to take advantage of buying ,i 'bpportunities. Potential bargains cannot be acquired if funds are already ;\–. c''.;.j;ied up in other issues bought at higher levels. This is why this letter (,has advocated a partially liquid position in capital appreciation accounts (.,; i'itor long term holding. This may involve missing the last. 5 or 10 of a ; , ' \lnove in some issues, but may also allow the purchase of individual issues -With good basic patterns at 25 to 40; below their 1951-1952 highs. This r;a.dvice, of course, applies to those who,because of tax reasons, are inte- i. .i,' '. i-ested in six months gains. For the near term outlook, consult the Daily;' tWalston Letter and my daily wires. f Offered by prospectus only, ;';- which is available on request. WEDAMUNDLOSNWHTOABEF & GOODW,,T T , ………. ,u. p; ,. (,AutaU-i or m b. construed as an offer or solicitation of offers to buy or HIli ,any securities From time to time Wahlon, HoHman & Goodwin may ,,f'If have an interest in some or all of the securities mentioned herein. The foregOing material has been prepared by UI ,U a matter of lnformatin only It IS baled lipan information belloved reHllble but not necessarily complete, Is not ;uaranteed ,51 accurate or final, and is not intended to foredole Independent lnqulfy. W/;,;//li'/f;.!,!,,-,,–, '.'\'I,,''- — – ', , ' , ',, ,' – ,,,, – ' '' ,I', 1'1 1- I .\

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Tabell’s Market Letter – August 08, 1952

Tabell’s Market Letter – August 08, 1952

Tabell's Market Letter - August 08, 1952
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,, NEW YORK 5, N Y ,' 35 Wall Street , OIGBY 44141 PHILADELPHIA 2, PA 1420 Walnut Street PENNYPACKER 5-5'177 LOS ANGELES 13, CALIF 550 South Spring Street MADISON' 3232 SAN FRANCISCO 4, CALIF 265 Montgomery Street SUTTER 12700 , TABELL'S MARKET LEnER – I, ; During the past week, the market continued to hold around the highs' 'of the year. The rail average showed the best action with a new high of /',105.55 as compared with the previous July 31st high of 104.38.The indus triaJ,3 , appear to be running into considerable resistance in the 280 area. The re- ;, cent closing range of this average has been extremely narrow. At no tim in– ',, the past eight trading days has the average closed above 280 or below 279. ', ), 'This .week' s intra-day high of 280.92 was approximately the same as the 280 if9 , reached last week. ' , , The market continues extremely selective. A recent. compilation of , 1441 issues listed on the New York Stock Exchange prior to March Ist.1952 , ,'indicates that approximately 40 of these issues reached their highs between ,';;January 1st 1951 and March 31st 1951 or more than eighteen months ago. Ap-;', ,proximately 70 reached their highs in 1951 and only 30 in 1952. Since July ,lst, with the market in new high territory, only 15 have reached new high '-', 'territory. In other words, since January 1st of this year only about one in', ',;four issues has reached new high territory. LONG TERM IlNESTMENT I continue to advise a 100 invested position ,,'in account.s concerned mainly with income and longer term appreciation,l'e- ,,,gardless of intermediate term fluctuations. However, at this stage of the ',Cmarket pattern, would concentrate holdings in undervalued issues with de- , fensive characteristics. ,,' , CAPITAL APPRECIATION In risk accounts concerned mainly with capitar ',appreciation over a six months period, I continue to adVise a 50 to 75 ' ;,,liquid position. While the market may move somewhat higher over the nearer 1, ,term, it would appear that lower levels will be reached before the expira- t, ,tion of the six months long te,rm gain tax period. Therefore , it appears ;', ;';prudent to have a cash reserve in capital appreciation accounts to take ad- ',vantage of possible buying opportunities. ''- , In December, I mentioned the favorable technical pattern on Ruppert '''' ',Brewing. The stock was then selling at 11 1/8. The stock has reached a high ' of 17 7/8 and is now selling at around 16. The issue below appears to be a , ibetter 'immediate purchase. ,' – CANADIAN BREWERIES, LTD. is listed on the New York Stock Exchange and , ,is selling at 19. It is the largest brewing concern in Canada, doing ap- ,,,proximately 30 of the malt beverage bUSiness in the country and 50 of the'–, ' business in Ontario. The company has eight well equipped plants in Ontario,,' , with a combined capacity of 2 million barrels annually. Major brands include ; O'Keefe's, Brading's Ale and Stout, Carling's Red Cap Ale and Black Labe i, ; Lager Beer. In addition, the company owns 95 of Brewing Corp. of Americ-. ; 'which owns a large and modern'plant '1.5 million barrels annually. Other in Clevela interests nd, inc OhiO, lude V with ictory a c M apacity o ills,Ltd., fa , .' processor of soy beans and other oil-bearing seeds, and Dominion Malting , i ',Company, Ltd., which is the second largest 'producer of malt in Canada. Also,, rhas an interest in Dow Brewery, Ltd.,' which distributes in lontreal and ,, ;Quebec. For the fiscal year ending October 31, 1951, the earr,ings were equat' ;to 2.25 a share. It is estimatj that earnings for the 1952 fiscal period ' ; 'will 'be slightly lower at 1.90-1.95. Dividends for the period are esti- , , ,;',mated at 1. 25 a share to give an estmated yied of 6.6 at 19. Based on \(;,' ,,1' the October 31,1951 balanc e sheet, the net tanglble assets per common were f', ' equal to 15.76. The company appears to have excellent growt.h prospects in L. , a growing country. Nearly 20 of assets in Brewing Corp. of America and Dowf' ,'Brewery, Ltd. are not. contributing to earnings. It is expected that this 'If , situation will change. ' ;', From a technical point of view, the stock has a constructive pattern', ',A high of 29 1/2 was reached in 1946. Since 1947, the stock has held in a ',I irange bounded by 14 1/2 and 21. An upside penetration of tl'.i8 potential basi!''' ' formation would indicate a probable 26 followed by a later 34. More time maYc i'be needed to broaden the pattern but the st.ock has interesting long term ,;appreciation possibilities combined with a good yield while waHing. ,, EDMUND W. TABELL ' L, ;;', August 8, 1952 ,' Dow-Jones Inc,. Dow-Jones Rails – 279.84 104.78 WALSTON, HOFFMAN & GOODWIN ,, (' , ,'\ – This memorandum it not to be construed as an offer or olidtation of offers to buy or sell any securlhes From time to time W1Ilston, Hoffman & GoodWin may ;!- have an interest In some or all of the secunties mentioned herein. The forru;loing milterlllli hu been prepared by U lIS a matter of information only It 15 blUed I. ! I upon information believed rehable but not neeeneI, complete, h not utlranleed 45 accurate or fllltll, and is not intended to foreclose independent inquiry',.,… ,-, -, -'';,-'5- –.–.. -;-'- — .- -'- – -'— –..'–'J,!', S'- ——-.,,-.. -'-'.. – -,.- -.. -.,.7- –.,…….'.—.,'i.- -. – -t'-., t …–,,',,','.. ;' ,, —.- , ….

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Tabell’s Market Letter – August 22, 1952

Tabell’s Market Letter – August 22, 1952

Tabell's Market Letter - August 22, 1952
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c- -, , ', '/ ,, Wolsioll.Hofflll01l Goodwin ' ' ' ' NEW YORK 5, N Y 35 Wlill Street DIGBY 44141 PHILADELPHIA 2, PA 1420 WlIlnut Street PENNYPACKER 5-5977 TABELL'S MARKET LETTER LOS ANGELES 13, CALIF 550 South Spring Street MADISON '232 SAN FRANCISCO 4, CALIF 265 Montgomery Street SUTTER 11700 —. This letter has continually stressed the extreme seTectivity of the '; '' market since January Ist3195L During this twenty-month perIod, individual issues have undergone bear markets of their own despite the fact that the ;- ' industrial averages advanced from the February 1951 high of 257 to a recent —- ,- ,high of 281. If the general market averages should enter a dec lining phase, , ' the graphs of individual issues indicate that the decline might be as se- , lective as the advance. Some of the issues that have already declined sharp' ly would undoubtedly be less vulnerable than tbe over-exploited issues that' are still selling near their highs. Also, the first group would most likely reach their lows in the earlier stages of any general decline, when,as and ' if it occurs. I am listing ten such issues below. I do not advise their im- mediate purchase but suggest watching their action closely if the downSide objectives noted below are reached. After the downside objectives are reach 'ed, they undoubtedly would have to undergo a period of backing and filling , to 'build up abase, so no immediate move would be indicated. However, these, issues, if they reach the downside objectives indicated, would appear to be — good long term purchases regardless of whether the general market was in a ' 'declining or advancing phase ,', ,ABBOTT LABORATORIES (49) is a prominent manufacturer of pharmaceuti- , cal, medicinal, chemical, biological and vitamin products. It is a growth , 'situation. The stock reached a high of 64 1/2 in January. The recent low,,, ' was 49 1/4. The top formed indicates a possible decline to the 47-43 area. , ' There '; sales ais!goodsudpLprorrtast46-4e2;. 7t! wc!C;ii lifcs ',', ,hot rolled sheets. Titanium Metals Corp. is Jointly owned with National Lead. The stock reached a high of 52 1/8 in October. Recent low was 35 1/4. ''' ',' The downside indication is 33-28 which is also a good support area. ' , BURLINGTON MILLS (IS) is the largest producer of synthetic fabTics. ' , Long range prospects are good. The stock reLched a high of 25 5/8 in early – 1951 and gradually declined to the May low of 15 1/2. The top formed at the', , 25 area suggested a decline to 14. There is good support at 16-14 where the,', ,stock should be bought. , CELANESE CORP. (43) is the leading producer of cellulose acetate. Two' Canadian subsidiaries produce cellulose from wood pulp, chemicals and rayon' , yarns. Reestablishment of growth trend is in prospect following recent re- ,-'adjustments in the industry. The stock reached a high of 5S 1/4 in 1951. ,The top formed indicated a decline to the 40-35 range. A low of 36 3/4 was reached in April. Stock has since rallied to 46. Would buy on a return to 'the 40-35 area. FERRO CORP. (29) is the largest producer of porcelain enamel frit. , , Growth prospects are enhanced by recent entry into titanium metal powder, , glass fiQers. ceramic coatings and powdered metal parts. The stock reached ',,' a high of 38 1/2 in 1951 earlier this year. The recent low was 28 1/8. The ',' ,- technical pattern suggests a return to the 28-26 area. ,; ', NATIONAL DISTILLERS (27) is the third largest factor in the distillip,g , field and is increasing its representation in the chemical and petro-chemi- , cal field. A high of 37 1/4 was reached in 1951. The top pattern formed in 't, the 37-32 area indicated a decline to 26-23. The May low was 25. Would buy , on further weakness. ', , and PACIFIC finishers. MILLS (33) At current is one of the prices. stock world's largest textile is selling below equity manufactures in working !i' capitaL A high of 49 1/4 was reached in 195L A distributional pattern was' , formed with a downside indication of 32-29. A low of 28 1/4 was reached in February. Would appear to be an interesting purchase on moderate declines. ' PARKE, DAVIS & CO. (44) is a leading ethical drug manufacturer. It reached peak of 63 1/8 in 1951. Top pattern suggests a possible decline to 40. Recent low was 42 l/S. Would buy on weakness to around he 40 level. PENNSYLVANIA SALT (52) A high of 71 was reached in 1951. Technical , pattern indicates decline to 52-45 area.Recent low 50 1/2. Buy on weakness. ' PFIZER (CRAS.)CO. (33) Advance sharply to 46 5/8 in 1951. Top pat- , tern suggests decline to 32-27 area. Recent low was 33 1/4. Buy on furcher weakness. ' EDMUND W. TABELL ll'Ii,IIllt'!l.ani\, nDtltQhonltrU.d as an offer or elicitation of offers to bur oWAbVIlQN,t.l.es lfuGFFti'& v.QGQDlif & Good ….'n may ''hil11an liere1t'in iome td 11rof the securities mentioned herein. Th. for.90in9 material has been epared by us as a matter of information only It IS based , upon information b.ll…..d reliable but not necananly complete, b not ;Iuo/Ifo!lnteed liS accurllte or final. and iI not intended to foredose independent ,nqulrY ,j'',',''',',''; f',''''''' ',' ,'',,,',,''',',,'' ,'j/' ,-,''-' –,,, ,','

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Tabell’s Market Letter – August 29, 1952

Tabell’s Market Letter – August 29, 1952

Tabell's Market Letter - August 29, 1952
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. -,-; — …' , \'Toiston.lloffmon &Goodin , ,I NEW YORK 5, N, Y , 35 Wt!l1I Strollt PHILADELPHIA 2, PA 1420 Walnut Street LOS ANGELES 13, CALIF SAN FRANCISCO 4, CALIF 550 South Spring Street 2b5 Montgomery Street ,,,;,, DIGBY 4-4141 PENNYPACKER 5 'n7 ,,, TABELL'S MARKET LETTER '. ,,' MADISON '3232 SUTTER 12700 RISTENSON DIGBY 4,4141 hll, ; The market moved in a fairly narrow range over the past week. De- clining tendencies were in force during the early part of the week and the Dow-Jones industrials reacted to a low of 272.28. At the low, the average d reacted 9019 pOints from the early August high of 281.47 or a retrace- ' nient of approximately one-third of the 26.77 point advance from the May low of 254.70. This is the normal minimum technical correction of an advance. , trhe rails, at last week's low of 100.94,had lost 4.64 pOints from the August, – , -hgh–Gi'-l-O .-9,.,-'r-hj.ssonlybout a 20 retracement ofthe 23.04 pOint ad- )lance from the February low of 82.51. The market rallied in the ratterpart ,, of the week and reached a high of 275.93 in the industrials andl03.49 in the ' tail average. Another attempt may have started to reach the 285-295 area in the industrials and 105-110 in the rails. It would appear that volume must increase before these objectives are achieved. On the downside, the 274-273 , level and 102-101 are the important points to watch. 1,' , , LONG TERM INVESTMENT I;continue to advise a 100 invested position n accounts concerned mainly with income and longer term appreciation re- gardless of intermediate term fluctuations. However, at this stage of the market pattern, would cuncentrate holdings in undervalued issues with de- ;' offensive characteristics. AMERICAN TELEPHONE (155t) is an excellent vehicle ', this type. The stock will be ex-dividend the p2.25 payment on September 10. ;' CAPITAL APPRECIATION In risk accounts concerned mainly with capital ' ppreciation over a six months period, I continue to advise a 50 to 75 liquid position. While the market may move somewhat higher over the nearer t'erm, it would appear that lower levels will be reached before the expira- ;'/ t,ion of the six months long term gain tax period. Therefore, it appears pru- ', dent to have a cash reserve in capital appreciation accounts to take advan- '- tage of possible buying opportunities. ,.-,' Like the industrials, the rails have had selective action despite the' ..act that they have bee,p ,iPca steap-y uptrenQ,from the ,June 1951low of 71.78 ,,, t'o the August high of 105.55. The diverse action of the group is shown in ,,c, the two tables below ',' 1951 1951-52 1952 1951 1951-52 1952 '; Price Atchison 92 Hh gw Hh Balt.& O. Pgce Hh 16oW Hh , Atl.Coast 109 82 64 118 Chic.E.Ill. 19 25 14 20 Chic .R. I. 68 61 44 69 Chic.Gt.W. 23 33 18 23 Denver R.G. 77 69 49 82 Chic.Mil.SP 21 30 18 24 Qt.No.,pfd. 54 tn.Cent. 73 57 75 46 52 56 Chic.No.W. 17 28 15 76 Minn.St.Pa 17 21 14 20 19 Kan .City S. 81 tghigh v. 18 75 15 57 9 84 N.Y.Central 19 26 16 20 N.Y.Chic.SL 43 47 35 21 1l;' ' Seat-oard 103 68 47 103 Penn. R.R. 19 26 17 20 Texas Pac. 105 103 77 108 West.Mary!d 21 29 18 24 , I The stocks in the first column are mainly better grade rails. They ', !,'eached their 1951 highs in February 1951 when t1e rail average topped out , , at 90.82. After a subsequent reaction to the 1951 low, this group ,led;the' , rail average to recent highs. In most cases, the recent highs are consider- ' ably above the 1951 highs. The more speculative issues in the second column r' have not fared as well. In most cases they are selling well below the Februa-i',,' iy, 1951 highs despite the fact that the rail average is 16 .above lt9511l1.igh ., J\' These secondary rails may ,be behind the market, and, in the event of ert,futher rail strength, may show better percentage appreciation than the high-' grade issues. With this thought in mind, I have included in my recommen- ded capital appreciation list two secondarY rails. They are Minneapolis, St.Paul & S.S.Marie (Soo Line) and Western aryland. To these two may be added Chicago Eastern Illinois and also Chicago,Great Western. Chicago,East- ern Illinois will benefit from thcreased ceal shipments to steam generating plants for power for atomic energy plants at Paducah, Ky. The other rail, ';', Chicago,Great West.is completing an extensive modernization program and earn-' ing power should improve sharply. Both issues have excellent technical ;patt,rni ;, A switch out of New York Central and Pennsylvania into these four issues sould work out profitably over the longer term because of their better growth, lii,cssibil1ties and technical patteJt!r.ts. , I,;' ,, Au f, vl'i, haye upon em dtm an Interes' In some or tnformtion beheved be illI rel construed ill an offer or solicitation of the securities mentioned here.n iable but not nlclnartl., complete, To,hfseonfffooetrresgutololtrnb!gully.'meeoiArt!i'iuI'aScaMcnuyNraesteelcnuo1r…hlie.ts;itF, rao.mnntutimNne.otnto&,nttiemnnQdef'deW';r\'Ial'oh.I.l.io.tJnrec'tiHTro;tffflemtaInnndoe&pnelyGndoeoItndtwISiJnnbq,umnleraydy. P'J t.,/!, .,..f. '''/'' '''''', ',' ''', ',.,',' ,'f' , ' , ,' ,–,';,' ', .. ,,;',,–,',', ,'

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