Tabell’s Market Letter – January 16, 1953

Walstoll.Hofflll011. &- Goodwin 4'W-N.c a/dcerUetl -….. -., ..7, i ' NEW YORK 5, N, Y. ,', 35 Wall Street ' DIGBY -4141 PHILADELPHIA 2, PA 1420 Walnut Street PENNYPACKER 5-5m '1 ! TABELL'S MARKET LETTER ,; ,, I, LOS ANGELES 13, CALIF 550 Sopth Spring Street MADISON '3232 SAN FRANCISCO 4, CALIF 265 Montgomery Street SUTTER 12700 ..h,…, ., 'J ,\ , ' At Monday's lows of 284.29 n the Dow-Jones industrials and 108.42 in.; ,;the rails, both averages had ret ed about one-third of the advance from ,, ,'late October. Both averages also Id above the support levels mentioned in ;';last week I s letter. These support ranges are at 284-280 in the industrials '. – and at 108-105 in the rails. So ,the technical action has been good, but ' ,,;the market mU2!; be watched close I on the next rally. Inability to push ,;,. ;.,through the 290-295 area on the se,cond attempt would indicate the need of ' . . a larger correction than the recent relatively mild decline. ;. ,i The light blue chips mentined in my 1953 market outlook have shown .,; , ,above average action recently. Not only have they advanced moderately with,. ;,, several reaching new high territorIy, but they have also shown excellent ' . . 'downside resistance during periodS of market weakness. This favorable actioiL-. ,;'should continue. Many of the highr grade blue chips have reached levels , I',that have amply discounted the pre1 sent favorable earnings and growth possi-'' , ,,bilities. Yields on issues of this type are down to 2-4 level. The light'.. (plue chips, while of lesser investment quality, are available to yield ,.' , .from 5 1/2 to 8. However, these 'light blue chips are also of good invest-,,, ment quality. Elliott Company, foJ example, has paid some dividend each ,year since 1905. It also has grOl'lth as witness an increase of sales from .;.' J5.20 million in 1940 to 40.32 mllion in 1951. Also its research projects.; !,en gas tm'bines could result in a !considerable increase in sales in the ;,future., j , I am listing below a number of isses that are in the light blue f, L dhip category. The upside objectLves are from my technical graphs and are, 7,,' ;bf course, for the very long term !of the next several years. However, some ., ';'of the issues like General Railway, Signal, that show a relatively moderate price advance, may achieve their 0lbjectives over the intermediate term. ,,. hFitch iRating \..; BB B ,, B BB BB BB , BB ,, B ',; B /, B ' BB ;'; B \. BB B BI,' .. BB ,. B ;'; B ; B B 'I BB ,'- B , 13;-' ,iii B ,! BB Allis Chalmers Alpha Port ,Cement, Amer1can Chain American Radiator Armstrong Cork Babcock & IHlcox Bendix Aviation Blaw Knox Briggs Mfg. Bucyrus Erie Crane Company Eagle Picher Lead Electric Autolite' Elliott Company GeniI Rwy.Signal Hall Printing Joy Mfg. Lowenstein National Gypsum New York Airbrake Otis Elevator penn-D.(Lie clement Smith A.O. Vanadium West Auto Supply ; 1952-53 Upside Esti. .yo Price Range Pro,L.. 52 Earn. Div. Yield 578 ,6 \ 5/386146t 60 90 . 2400 4 .00 7 , O ,;, 4 49y- – 75 't. 3 0 0 6.2 ' 32 822-27 1/8 50-60 4.05 2. 50 .8 -.. 15 ;t6 341.6-1331'-!80250-35 10705 1025 .4 L. 52 57- 2 -;' 5.3 3.10 5.9 ,. 37 39t-3lt 55-65 6.00 A-2.00 5.3-A.'.. 61 64-45 1/8 0-90 6.50 19 9 y1t-157;8 40-45 2.75 3.75 6.1 .' 1025 6.6 . 39 39 3/4-33 70-80 5.00 3.00 7.9 25 27 5/8-22t 35-40 31 38t-28 5/8 60-65 3.00 3,75 h.2.00 8.0 ,., 2.25 67 . 3 22 25-19 32-3'; 3.00 1050.9, 54 t6t-443/4 63-70 6.75 3.00 5.5 31 1325;8-245,13 50-60 5.50 2.10 6.8 37 37 3/4-25 45-50 4.50 2.50 7.1 17 17t-15t 25-30 3 7 B'8 VIi -3l11 70-8 0 32 33 7/8-2't 55-60 22 23t-18t 35-40 2.47 5. 40 5.75 3,20 L30 7.6 3.122' 8 .5 2.00 6 1 1.40 6 3 \Ii;,',.;,, ;'; 21 2218 35-50 39 326 3413 ;2 2- 33 5 3f 65-70 55-60 3 38y-32;yv 6 0,-70 2.60 4,70 4.25 5.00 1.60 2.50 2.00 2,00 7.6 6.5 6.1 5.5 .t 'J, , 42 45r34 55-60 3.60 2,40 5.7 (c,; 54 562 -46 3;13 80-90 6 50 3075 6.9 A – Pls Stock Dividend. EDMUND W. TABELL WALS'I'ON, HOFFMAN & GOODWIN , ,… 'I' ,,'\, '., L-;;t; This memorandum is not to b, cOnJlrued liS /In offer or solultaflon of offrs to buy or sell /Iny lecuTHill' From time to trme W/llsto. HoHman & Good!,'n may 1, .\.,',-' o. nl, ; hu L1pon an int.rest in information some or bell.ud .al.lIoaf',t'h,e..securitt.ienseamsentrioInY edoher.e'in.The forego/iIngmell.te.riual, hur.beeenpfre/pIa'r-;e;d/1by,1u1s,noa's, ,/,ItmnadtetedrtofOInfoCrmIlltlonly.eItt 15,. bua!red ''''''t-'''',-,.'7'—d–' -\j—, ,-, 4