Viewing Month: November 1952

Tabell’s Market Letter – November 07, 1952

Tabell’s Market Letter – November 07, 1952

Tabell's Market Letter - November 07, 1952
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NEW YORK 5, N, y, 35 Wall Street DIGBY 44141 PHILADELPHIA 2, PA 1420 Walnut Street PENNYPACKER 55977 TABELL'S MARKET LETTER LOS ANGELES 13, CALIF, 550 South Spring Street MADISON 93212 SAN FRANCISCO 4, CALIF, 265 Montgomery Street SUTTER 12700 , ,,' The 'Eisenhower landslide resulted in a strong opening on Wednesday with, ',volume for the opening hour at 820,000 shares, the highest since early 1951. Wednesday's highs of 274.77 on the Dow-Jones industrials and 102.24 on the , rails were followed by a decline to 268.89 and 99.15 on Thursday but the mar; ket recovered to 274.77 and 102.49 on Friday. Except for a fractional pene- ,' 'tration by the rails, Friday's rally failed to carry above the initial rally;, highs. There is quite heavy overhead supply in both averages.' ,;, I continue to believe that the beneficial effects of the election will ; be felt over the longer term rather than the near term. I look for a conti-'' nuation of the diverse action of the past year while the market ,unc,ergoes a,,; ',re-accumulation and re-adjustment area prior to a resumption of the long term uptrend. –i LONG TERM INVESTMENT I continue to advise a 100 invested position in accounts concerned mainly with income and longer-term appreciation .Holdings ' of sound,good quality, dividend paying issues should be retained, particular;' iy when bought at considerably lower price levels. The longer term trend in – , dicates ultimately higher price levels and good grade issues should continue''; dividend payments at approximately present rates. Weakness should present 'buying opportunities in oelected issues Price Buying Range Price Buying Range Abbott Lab. (A) Allis Chal. ,Amer. Chain ,Amer. Rad. Amer. Seat. 'Amer. Tel (A) ,Armstrong Cork Babcock & Wilcox Blaw Knox ,ucyrus Erie 'Burlington Mills Burroughs Add. Celanese 9hain Belt (A) ,Oolumbia Gas (A) Elliott Co. 45 54 27 14 20 154 47 34 17 23 15 17 35 35 13 28 45-42 52-50 27-25 14-13 20-18 Mkt. Mkt. Mkt. 17-16 23-22 15-14 17-16 37-33 35-33 13-12 27-25 Hall Print. 16 Joy Mfg. 33 Lone Star C. 28 Lowenstein 30 Mont.Ward 60 Owens Ill.G. 71 Parke Davis 42 Penn. Salt (A) 49 Pfizer 31 Phillips Pete 58 Shamrock Oil 39 Smith,A.O. 35 Sylvania Elec. 37 U.S.Gypsum 109 Western Auto 50 16-15 33-30 27-25 30-28 60-57 70-65 42-40 50-45 32-28 53-50 38-35 34-32 35-33 110-105 49-46 , ,' , CAPITAL APPRECIATION During recent weakness to 262.01 in the Dow-Jones,' ,industrials and 96.87 in the rails, I advised increasing invested positions -'' ,in risk accounts concerned mainly with capital appreciation over a six months.',' period from 25-50 to 60. Would maintain this ratio leaving 40 liquid ' until further notice. Recommended issues follovl ', Price Buying Range Price Buying Range', idmiral (A) 'Allegheny Ludlum BaIt. & Ohio eaunit Mills Briggs Mfg. Canadian Brew. Carrier (A) Certainteed Chic.East.Ill. Chic.Gt.West. Climax Molyb Columbia Broad. Denver,Rio Grande Eastern Airlines Fansteel Ferro (A) Gen'l Rwy.Signal Gray Mfg. 30 34 22 17 34 18 31 14 17 21 34 36 73 24 24 26 32 14 29-27 33-28 21-19 19-17 35-34 18-16 29-27 14-13 17-16 20-18 33-30 33-30 70-65 22-20 24-22 28-26 32-30 14-12 Hercules Motors 18 Interchemical 19 Inter. Tel 18 Missouri K.T.pf. 60 Minn.St.P & SSM 17 Nat1. Dist. 21 N.Y.Airbrake (A) 19 Pacific Mills 25 Paramount 23 Pittston 27 Southern Rwy. 72 Universal Pic. 13 Vanadium 40 Warren Petroleum 30 Western Air.(A) 10 Western Md. 20 Western Pac. 59 18-16' 20-18 ' 17-15, 58-55 ' 17-15 21-20 20-18 25-24 23-21 !, 27-25 65-60 12-11 40-37 28-25 11-10 20-18 55-50 A – Offered by prospectus only. — , November 7, 1952 EDMUND W. TABELL , WAL!roN GOODWIN ',' ,&' HOFFIJAN This memorandum is not to be con1frued as an offer or ,olidt,ation of offers to buy or sell any lecurities From time to time Waillon, Hoffman & Goodwin may ,; , – havo upon an int(lrest In some or information beHoved all of the .ecuritllfll mentioned her.ln. The reliable but not neCl1uarily complete, Is nfoorteC)uoainrganlmeaetderia.sll has been prepared by us III accurate or final, and Is not II matter of Information only It is bued Intended to foreclole Independent inquiry 1; ,-l r.(.c ';r 1-.;,, ……1-,j,W '–'171,-' . -!… -. f..1;; ….–..' .. – .- …. . -; .. – – -cc;-7!.-S '…… ;;… '-.'; 7,,. r.,J…;' .; ,….-…, .. ..X I

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Tabell’s Market Letter – November 21, 1952

Tabell’s Market Letter – November 21, 1952

Tabell's Market Letter - November 21, 1952
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r —'- – —- \,., '. ———- . –.—– Wolston.Hoffnl0n & Goodwin – -' -, NEW YORK 5, N Y )5 Wall Streef DIGBY 4-4141 PHILADELPHIA 2, PA 1420 Walnut Street PENNYPACKER s-sm LOS ANGELES 13, CALIF. 550 South Spring Street MADISON 9-3232 SAN FRANCISCO 4, CALIF 265 Montgomery Street sunER 12700 , '' -; TABELL'S MARKET LETTER , -,, t't,! I have been studying the technical action of the stock market for some twenty years and at no time during that long period has the outlook ';;;, i for the market had less meaning than in the past year. 1952 started ' with the Dow-Jones industrial average about ten points below present levelS,;; – – Yet there are a large number of investment and growth issues that are to- -4, day selling 20 to 25 lower and also a great number that are substantially above the price level of the start of the year. selling This type ),,f;o ' of action has also prevailed within the same industry. Witness the diverse';; ,' action of Seaboard Air- Line and Pennsylvania in the rail group. Seaboard ;\ , has advanced motionless. from 67 1/ Countless 2 to 109, while other examples Pennsylvania has been pra are; of course, available. c ti cal l y ;;' I!. In such a Situation, it is rather fruitless to even attempt to pro- ,,/ ject the averages. For 1951, the high was 277 and the low was 236. In ,,, — 1952, the range so far has been 281 and 255. The 1952 low was less than ,, ', 10 above the 1951 low and the highs were about the same. Yet during this ', , two-year period, the action of individual industrial issues bore little ' or no relationship to the movement of the averages. This is equally true 'j,',' '–, of the rail average and the action of individual rail issues. The only , ,possible exeption are the utilities which more or less moved with the utility average. ; It appears that this type of diverse technical action will continue — over the foreseeable future. Some issues continue to appear vulnerable .- ; 'while others have failed to show any signs of important distribution. 'Co , Other issues have declined sharply and appear to be near downside object, ives, but will need considerable time to undergo re-accumulation. Still .! , , other groups and issues have failed to move very much in either direction ',' and still indicate no signs of immediate change. I would venture the ; ' opinion that this period of consolidation, adjustmentandreaccumulation, ' ,,' will continuit wen into -19'53 and -possibly into 1954. During this time, I ..,- — doubt if the Dow-Jones industrial average will move out of an area bounded '- , , roughly by 300 and 230. As a closer approximation, I would guess 290 and -, — 240. I would also venture the opinion that the issues nioving lower will t,– outnumber the issues moving higher. Also, in the case of some unexpected -' news developments, ,the odds would favor a downward move rather than a –, sharp upswing. ' — , r All of this suggests watching the action of individual issues rather ,;'i – than the market as a whole. Proper selection could payoff rather hand- ,somely over the next two years in investment accounts as well as in specu- ' , lative accounts, but continued vigilance will be required. f.;-, I believe the action of the next six months to two years will be a ,;J prelude to a substantially higher level of stocle prices over the next four ,- to eight years. ,, ft LONG TERM INVESTMENT I continue to advise a 100 invested position ',',,'it ,in accounts concerned mainly with income and 10ng8r-term appreciation. , Holdings of sound, good quality, dividend paying issues should be retained,t- partiCL larly when bought at considerably lower price levels. The longer , term trend indicates ultimately higher price levels and good grade, issues ';.c, should continue dividend pac;;,lents at approximately present rates. Weakness ,,' ' should present buying opportunities in selected issues. ', CAPITAL APPRECIATION During the October decline to 262.01 in the Dow-Jones industrials and 96.87 in the rails, I advised increaSing in'vested positions in risk accounts concerned mainly with capital apprecia,tion over a six months period from 25-00 to 60. Would maintain this 'ratio leaving 40 liquid until further notice. '-\November 21, 1952 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN i.I'

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Tabell’s Market Letter – November 28, 1952

Tabell’s Market Letter – November 28, 1952

Tabell's Market Letter - November 28, 1952
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,-, '- – –, , Wolston.1Joffnl0n &Goodwin' , /, ,-, r' . NEW YORK 5, N, Y PHILADELPHIA 2, PA LOS ANGELES 13, CALIF SAN FRANCISCO 4, CALIF ,''t.'', 35 Wall Street '. DIGBY 44141 1420 Walnut Street PENNYPACKER 5-S'77 , TABELL'S MARKET LETTER 550 South Spring Street MADISON 9 3232 265 Montgomery Street SUTTER 127(1(1 ' In the last two years, the Dow-Jones industrial average has had , 'eleven moves of more than 5. Six have been on the upside and five have , been on the downside. Their approximate scope and dates are listed below , , ADVANCES Low Date High Date 223 Dec.1950 257 Feb.1951 plus 44 242 March,1951 264 May, 1951 plus 22 241 June, 1951 277 Sept.1951 plus 36 255 Nov. 1951 276 Jan. 1952 plus 21 255 May, 1952 281 Aug. 1952 plus 26 263 Oct. 1952 283 Nov.1952 plus 20 DECLINES High Date Low Date ;, 257 Feb.1951 242 264 May, 1951 241 March,1951 minus 13 June, 1951 minus 23 277 Sept. 1951 255 Nov. 1951 minus 22 276 Jan. 1952 255 May, 1952 minus 21 281 Aug. 1952 263 Oct. 1952 minus 18 , ;; hfr. ,j' ,,', 1 ,!-, I ,.,i..' '-''- ,;'J fJ ;it,'!!,k 7 ''.', 'f. ')' II,' )1(;,' ,,'!r , ! i ''0'' '/1 I -I,!J!, ' ',-… ',', , 0; , …. To Date. '- ,' , The rail average has had a similar series of swings although the scope , and dates have been somewhat different than that of the industrials ',' However, the action of individual issues has been quite different ';'-, ' from that of the averages. The steels, for example, re8ched their highs in ' February, 1951 when the average was only 254. The chemicals and textiles 7' , reached their highs in September, 1951 and the oils and metals in January, ' ,1952. Numerous other examples could be cited. Despite the fact that the ;; ,' avera!;es are at a new high, the groups mentioned above are still below''' theL previous highs. The leaders of the present rise to new high territory;', are different groups, such as televisions, utili ties, electrical equipment /- foods, etc. ' I expect this selective action to cor;tinue with price swings in both ;, ;',the averages and in individual issues comparable to what we have witnessed ,- , over the past two years. However, it will be noted flOOLl the table above ;,' 'that the present advance could carry somewhat further in order to reach the;, 'average time and price amplitude of the five previous advances. This is -'about in line with the technical pattern. My intermediate term technical, , indicator has reached overbought territory, but the pattern suggests that ,-' some time may be needed to build up a top and give an actual sell signal. ;' During this time, individual issues could advance, but increasing caution is indicated on new purchases. The larger part of the current rise may al- ,) 'ready have been witnessed. LONG TERM INVESTMENT I continue to advise a 100 invested position ,; 'in accounts concerned mainly with income and longer-term appreciation.Hold- , ings of sound, good quality, dividend paying issues should be retained, par;, ',ticularly when bought at considerably lower price l,','cls. The longer term f– , trend indicates ultimately higher price levels and good grade issues ShOUld!;, ' continue dividend payments at approximately present rates. c';' Present pOSitions should be held but would wait for weakness to pur- ,,,,' , chase issues in our recommended list that have advanced sharply above the ,' buying levels suggested in my letter of November 7th. CAPITAL APPRECIATION During the October decline to 262.01 in the Dow1'', Jones industrials and 96,87 in the rails, I advised increasing invested r' ,positions in risk accounts concerned mainly with capital appreciation over', a six months pericJd from 25-50 to 60. Would maintain this ratiO, leaving' 40 liquid until lrther notice. J,' For accounts that still have buying,power above 40 of funds, suggest,; the purchase of issues in my list of November 7th that have not advanced to',' .t.;',,'rapidly from levels prevailing on that date. ELLIOTT COMPANY. (29) is a case in point. It is near an upside breakout of a long potentlal accumulatl f', EDMUND W. TABELL NOhd' 1''I'd lkit,HD b'''''' 'Hm'DIHffm' GDDd; jDI ' Dff D' Df Dff. ID mo, have an interest In 10m. or all of the securities mentioned herein The foreQoing materLlIl hIlS been prepued by us at a matter of information only It IS bated upon Information b.n…..d reliable but not necuumly complete, 15 not ;uarantud as accurate or final, and is not Intended to foreclose independent InqUiry t , .. — -, il !i 1 ,1 I I i I I 1 1 I i I, ;1 1 !

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