Tabell’s Market Letter – August 22, 1952

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/' ,-,''-' –,,, ,','