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Wolston.Hoffl110n &- Goodwin ',' , NEW-Y01lS N Y 35 Wall Stroet DIGBY 4..4141 PHILADELPHIA '2, PA 1420 Walnut Street PENNYPACKER 55977 LOS ANGELES 13, CALIF 550 South Spring Street MADISON 9)212 SAN FRANCISCO 4, CALIF 2b5 Montgomery Street SUTTER 1-2700 ; TAB Ell'S MARKET lETTER , .F…' l , Strength in individual issues rather than in the averages was the ', ';,feature of last week's market. The Averages were firm, however, and reached; ,',fractional new highs of 286.32 on the Dow-Jones industrials and 109.62 on ,,' ,the rails. My intermediate term technical indicator still remains in over- ',bought territory but has refused to give a definite sell signal as yet. It , -'is possible that such a signal will be given next week. Whether the result ' ,will be a correction or Simply a consolidating phase, is still open to ,question. Like the industrials, the rails have had selective action despite the ' 'fact that they have been in a steady uptrend from the June 1951 low of 7l. 78, ,,to this week's high of 109.62. The diverse action of the group is shown in ,' the two tables be10w- ,,' , ,I' ;,/ Price , Atchison 101 -'AChtli.cC.Ro.ars.t 117 69 ','iDenvel' RG 78 ,;Gt .No.pfd 'fIll. Cent. 55 82 Kan.City S. 89 Lehigh V,' 21 Seaboard 112 ,Texas Pac. 124 , 1951 1951-52 Hi, Low 69 82 64 61 44 69 49 57 46 75 52 75 57 15 9 68 47 103 77 1952 118 71 82 56 83 89 21 114 124 Price Balt.& Ohio 25 Chic.E. Ill. 20 Ch.Gt.West. 28 Chic .Mil.SP 20 Chic.No.West 18 Minn.St.Paul 19 N. Y.Central 22 N.Y.Chic.SL 49 Penn R.R. 21 West.Mary'd. 24 1951 25 33 30 28 21 26 47 26 29 1951-52 Low 16 14 18 18 15 14 16 35 17 18 The stocks in the first column are mainly better grade rails. They ,,t'eached their 1951 highs in February 1951 when the rail average topped out 'fit 90.82. After a subsequent reaction to the 1951 low, this group led the -'t'ai1 average to recent highs. In most cases, the recent ,highs are consider- ,' ,'ably above the 1951 highs. The more speculative issues in the second cO,umn ,, ,have not fared as well. In most cases they are selling below the Febaary 1951 hlghs despite the fact that the rail average is 20 above 1951 high. 1 believe the lower priced rails are behind the market and could show 'excellent percentage appreciation over the intermediate term. There are ,',several issues in my recommended list. They are – , BALTIMORE & OHIO. The upside penetration of the long trading range indicates 28 followed by a longer term 34. CHICAGO & EASTERN ILLINOIS. This issue appears to be behind the market. The technical pattern suggests 24 followed by a later 32. CHICAGO & GREAT WESTERN. This issue has already moved ahead rather ;'sharply. Its initial indication is 31 followed by 38. MINNEAPOLIS,ST.PAUL & S.STE.MARIE (SOO LINE) This issue also appears – '/ ,t;o be behind the market.lntermediate term objective is 23 and a later 29. WESTERN MARYLAND has held in the 18-24 range since 1951. An upside penetration would indicate 30 for the nearer term and 39 later. i These are all, secondary issues but believe they will show better 'percentage appreciation than the heavy capitalized low-priced Eastern ,rails. Higher priced rail issues in my recommended list are Denver, Rio )lrande & Western, now at 78, Missouri-Kansas-Texas,Preferred, now at 61, ,and Western Pacific now at 63. , '.- EDMUND W. TABELL ,December 12, 1952 WALSTON, HOFFMAN & GOODWIN -,…I -'Dow-Jones Ind. – 285.20 pow-Jones Rails – 109.37 ,,' , Thts memorandum IS not to be comtrued as all offer or ,oll citation 01 offen to buy or sell ally securltiel From time to time Wahlon, Hoffman & Goodwin may , have all interelt In some or all of the secunti mentioned herein The foregOing material has bun prepared by UI II a matter of Inlormahon only It is bued f,.,, upon Illformation believed reliable but not neceuanly complete, is not uaranteed as accurate or fln!ll, and is not intended to foreclose independent inquiry i;' CO,' ,,, ' ''''''''\, ,;' ',, ',i, ',,- ,,',',' ,,-,' , ' , ;'' ,' ,,.,;, '''''' , ,''