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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 …–,,',,','.. ;' ,, —.- , ….