Tabell’s Market Letter – September 19, 1952

l\Tolstol1.noffl11on &Goodnin , .' . r . – ''- -, NEW YORK 5, N, Y 3S Wall Street DIGBY 44141 PHILADELPHIA 2, PA 1420 Walnut Street PENNYPACKER 5-59n TABELL'S MARKET LETTER LOS ANGELES 13, CAliF 550 South Spring Street MADISON ,,)2)2 SAN FRANCISCO 4, CALIF 265 Montgomery Street SUTTER 1-27DO , The market rallied on Friday afternoon led by the televisions. The Dow-Jones industrials closed at 270.55 and the rails at 99.15 after sell- ing down to extreme lows of 267.08 and 96.87 on Tuesday. At this moment, there is overhead supply at 273-275 in the industrials and at 101 in the , , , rail average. ', ' Despite the fact that the intermediate trend has been downward, I ex- Z .! pect the same selective action in individual issues that was part of the recent advance. Individual issues may be near or at their lows at present , ,'.. levels even though the averages work lower. I am listing below my recommen-;- ', ded list of investment and capital appreciation issues together with new recommendations to be bOught only on weakness, in the buying ranges specifid. ,,' LONG TERM INVESTMENT Despite the fact that ,the intermediate term trena' ;,' may be down, I continue to advise a 100 invested position in accounts con- cerned mainly with income and longer-term appreciation. Holdings of sound, c,c , ., good quality, dividend paying issues shoUld be retained, particularly when' , I, bought at considerably lower price levels. The longer term trend indicates ' . ultimately higher price levels and good grade issues should continue divi- ' , dend payments at approximately present rates. Further weakness should pre- , sent buying opportunities in selected issues Price BUin flange Price Buying Range , i Abbott Lab. (A) 45 6- 3 Hall Printing 16 16-15 ,,' , Allis Chal. C' -Arner.Chain ' ' Arner. Rad. 50 48-45 28 27-25 14 14-13 Joy Mfg. Lone Star C. Lowenstein 33 27 32 33-30 27-25 30-28 F,- ;,, -Arner. Seat. 21 ;, Arner. Tel. (A) 153 20-18 Mkt. Mont. Ward OWens lIl.G. 60 71 60-57 70-65 ,,' ;; ' lE-Armstrong Cork 52 50-48 Pacific Mills 31 31-29 '; -Babcock & Wil. 34 35-33 Parke Davis 44 42-40 ;' Blaw Knox 16 ' Bucyrus-Erie 24 -Burlington Mills 17 17-15 23-22 16-14 Penn.Salt (A) Pfizer Phillips Pete 51 33 56 50-45 32-28 53-50 ,-r ' ; Burroughs Add. 18 17 -16 Shamrock Oil 39 36-34 Celanese 41 40-35 Smith (A.O.) 35 34-32 -Chain Belt (A) 36 35-33 Sylvania El. 37 32-30 , Columbia Gas (A) 13 13-12 U.S.Gypsum 115 110-105 Elliott Co. 28 27-25 Western Auto S. 49 49-46 CAPITAL APPRECIATION I have advised a 75 to 50 liquid pOSition in risk accounts concerned mainly with capital appreciation over a six months ' period. The recent sell-off confirms the advisability of this course of ac–' , tion. However, on further weakness would bring accounts up to 60 invested .;, Buy only on weakness to the buying ranges specified Admiral (Al All. Ludlum Balt.& Ohio Price 31 35 21 Buying Range 27-25 Hercules Motors 33-28 Interchemical 20-18 Inter.Tel & Tel Price 18 i – Buying Range ', 18-16 ;, 20-18 17-15 Beaunit Mills ..' Briggs Mfg. Canadian Brew. Carrier (Al Certainteed '(,lic .E.lIL Chic.Gt.West. , Climax Molyb. , Col.Broad. ,! Denver Rio G. ,', ,Ell.st .Airlines Fansteel ,,' Ferro Corp.(A) 20 36 18 29 14 17 21 36 n36 22 25 28 21-19 35-34 18-16 27-25 14-13 17-16 20-18 33-30 33-30 70-65 22-20 24-22 28-26 Mo.-Kan.Tex.pfd. 63 Minn.St.P.& SSM 16 Natl.Distillers 22 N.Y.Air Brake (Al 20 Paramount 24 Pittston Co. 29 Southern Rwy. 64' Universal Pic. 13 Vanadium Corp. 40 Warren Petroleum 29 Western Air. (Al 11 Western Md. 20 Western Pac. 51 58-55 17-15 23-21 20-18 23-21 27-25 60-56 12-11 40-37 28-25 11-10 20-18 50-46 , -\ ' \ ,, , , Gray Mfg. 14 14-12 Previously in recommended list. A-Offered by prospectus only. ,', 8eptember 19, 1952 EDMUND W. TABELL WALSTON. HOFFMAN & GOODWIN , Thh memorandum IS nol to be comtru.d liS an offer or soluitlltion of offers to buy or Sell lIny securities from time to me Walston, Hoffman & GoodWin may hllve an intered in so,. or all of the leeurltlel mentioned herein The foregOing mateTlel has been prepared by U as a matter of information only It 1 baled lf'–''- i r ,o if,r.n Iv,e \ie u nt nelIriIY ompee I' t ;Mante&d as aeeurat r ia';d i,nt,-i'nedOS n,-en; Ulry ,,,