Viewing Month: February 1953

Tabell’s Market Letter – February 06, 1953

Tabell’s Market Letter – February 06, 1953

Tabell's Market Letter - February 06, 1953
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, I Walston Hofflll011 c.. Goodwln ',- , ,,-''' ,–,',-,)….- ,I,', ',' H' ',,-;', ',' ,,, ,,,,, , – ,;.'. , , ' . , '…. ', i –'F',,-'0.', ;,,- ',,;',,p.. ,',-'-''0,, oIeoprdeed — , NEW YORK 5, N, Y 3S Wall Street PHILADELPHIA Z, PA 1420 Walnut Street DIGBY 44141 ( PENNYPACKER 5-5977 I1'- ABELL'S MARKET LETTER ; LOS ANGELES 'l, CALIF 550 South Spring Street MADISON 93232 SAN FRANCISCO 4, CALIF 265 Montgomery Street SUTTER 12700 ,,' The market declined to lows 282.14 on the Dow-Jones industrials and 107.58 on the rails and penetrat d the January lows of 284.29 and 108.42. ;,' his confirms that the intermed te trend has been down since the January -' highs of 295.06 and 113,94. Supp should be met not too far below present-' levels. In the industrial a I, I would expect 277-275 to be the next ;, ,' support level. This would be an I oximate two-thirds correction of the c;' thirty-two point rise from the October lows. The down count indications on;' my graphs also point to about ths level. In addition, this area is a good\; support pOint as it is just about the level of the October, 1951 high of ,',' 277.51, the January 1952 high of1276.26 and the August 1952 high of 281.47,,, The decline might halt at 281, but 277-275 appears more logical. On the i;; rails, it would appear that 105-103 would be the support level. ' However, as I have mentioned many times before, the action of the aver- ;;, 'sm; idiCri1rmeOe;htpesi; i;; ' Would concentrate on individual issues and suggest the purchase of issues ; in my recommended list at the buYing levels outlined in recent letters. , WARNER BROTHERS, now selling at 13 3/8, appears to' be an interesting ' issue for long term capital appreciation. There are already three moving , ptcture issues in our recommended list for capital appreciation over a pe- ;,- rlod of six months or longer. TheI se issues are Columbia Pictures, Paramount-,' P tctures and Universal Pictures. 1I believe Warner Bros. can also be added to the list of recommended issue. ;;. f– i' Stockholders of Warner plan of reorganization to Bros. split whiel l be asked on company into February 17th to ratify a two units. One unit will iT- ' be called Warner Bros. Pictures and will take over the production and dis- F'' tribution of the company's domestic film business and all the foreign as- i' ; sets. The other unit will be the IStanley Corp. which will control all the f , ' theatres and miscellaneous assets of the old company. Each holder of pre- ,,' slmt stock will receive, for each share held, one-half of one share of ,', each of the new companies. Therefore, a holder of 100 shares of present k'' , Warner Bros. will have 50 shares lof Warner Bros. Pictures and 50 shares of; – Stanley Warner Corp, If the stockholders ratify the plan, the reorganiza- '; tLon will be effective as of February 28th. — Some idea of the value of the Inew securities can be gathered from the ii,,,;- sale of the personal holdings of 'the Warner brothers in Stanley Warner 1' Corp. The brothers were obliged o sell their interests in either of their ;; t10 holdings by a Consent Decree Igoverning They chose to retain Warner Bros.1 Pictures the and break-up sold the o ir f s the tock c ompany, in Stanle y ii'-'' '- Warner Corp. for 11.12 a share t,o the Fabian interests. Based on the pric,;, oJ'13 for the old stock, this would indicate avaluation of about 15 for i-, the new Warner Bros. Pictures. nhs would appe-ar to be a very reasonable – ', price. Most of the earnings of Wa!rner Bros. in recent years have been ' C ontri but e d by the picture clompany. The pro-forma earnings statements ', recently released for the two new, companies indicate that the picture com- –,,' ', pany earned 2.86 a a share in the same share in 1952 while the theatre period. When !dividend action is company e taken on arne the dnewonplyic6-Ji,,-i ture comany, it is possible that, the dividend may be increased from the ' c,- present for the ljil paid theatre on the old company. The price company appears nigh based on paid by the earnings of 6FJaibaianshianrete. r ests How- Y,fft ever, the balance sheet shows that Stanley Warner has a book value of ap- ; proximately 30 a share representd largely by cash or by real estate 1J, h;;.ving a market value very close o depreciated book value. ;i. From a technical Viewpoint, there is no way of telling the indicated , ',- ps,ttern of each of the two new companies. However, the technical formation i', of' the old stock is favorable. Th'e indication is 28-32 if the long poten- ,' t1al accumulation area between 10'1 and 16 is penetrated on the upside. ,; Based on the improved outlook ,for new television films and the sale and ;-; rE'ntal to TV of' old films, the new Warner Bros, Pictures should be an inte, !I-' resting holding for long term appeciatlon and income. The Stanley Warner 1\ Corp., at approximately one-third the realization value, should also prove ,- , – interesting for long term capital gains. Advise purchase of old Warner ,'- BI'OS. at present market of 13. EDMUND W. TABELL ,', E.e'brua ry 6, 1953 WA rsTON & CO. ii, , his memorandum is not to b. construed in 'In offer Dr solicitation of offr' to buy or selt lInY securities From time to lime Wahlen, HoHman & Goodwin may I/k – tlave u Interast In some or all of the securities mentioned herein. The foregOing material has bean prepoIIfed by us ,51 II matter of Information only It is based il, upon information believd reliablfl but not neceu4rily complet., IS nol ;uaranfd as accurate or fiMI, .and is not intended to foreclose lndependel'1t inqUiry, — l , ' – ', ', ,'-' —jj,,,i!'i;;c,-,–,'''—';'''-'-''';',i'''''''''' -,,,–, '''-,' ,,'—-,'- ' '– ,-, , '; -' ,, — ,, ,,'-,,- ,e;';' ,- ,-',e,', -,,,,,;,, , I

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Tabell’s Market Letter – February 13, 1953

Tabell’s Market Letter – February 13, 1953

Tabell's Market Letter - February 13, 1953
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—————————————– —— WJIston &- Co. ,– LMtJllnt DeC(vu/teJ.; j ,. 'MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS\ANGELES SAN FRANCISCO LUGANO (Sw,.,Id) OFFICES COAST TO COAST CONNECTEr;; BY OIRECT PRIVATE WIRE SYSTEM I TABELL'S MARKET LETTER , ) In observing the action of individual issues during the decline,it becomes quite evident that the sebondary issues are showing better market performance than the higher gradej issues. The sharp price advance in the blue chips, and the resulting low yields,have made these issues somewhat ,vulnerable. The light blue chips, selling at six or seven times earnings 'and yielding 6 to 8, appear less vulnerable. ERMLONG INVESTMENT In\accounts concerned mainly with income and' longer term price appreciation, would advise a 75 invested position in 'common stocks and 25 in short te governments in order to take advantage 'of possible buying opportunities uring the year. I Buying Buying Price Range Price Range Abbott Lab. 42 42-40 Elliott Co. 32 32-30 Allis Chalmers 'Alpha Port.Cement Am,r. Chain & Cable 56 57-50 45 46-44 32 30-28 General RwY.Signal 34 Hall Printing 16 Joy Mfg. 38 34-33 17-16 36-34 American Radiator American Seating' 15 14-i3 22 20-i8 Lone Star Cement Lowenstein 30 31 29-28 31-30 Am,r. Tel '& Tel. Armstr.ong Cork 'Babcock & Wilcox Blaw Knox Brlggs Mfg. Bueyrus Erie Burlington Mills BUJroughs Add. 160 158';156 Mont. Ward 60 49 51-9 National Gypsum 21 39 35-33 19 19-18 N,Y. Air Brake (p) 20 Otis Elevator 41 41 39-37 Owens Ill.Glass 79 25 25-23 Parke Davis 40 14 15-ll4 Penn. Salt (p) 48 17 17-ll6 Pfizer (Chas.) 30 60-55 21-20 20-19 39-38 77-75 42-40 48-46 30-28 Celanese Chain Belt (p) Columbia Gas 33 34-32 34 35-33 14 14-3 Phillips Petroleum 62 Shamrock Oil 38 Smith, A.O. 36 58-55 37-36 35-33 Crane Company Eagle Picher Elec. Auto Lite 30 31-2'9 23 22-21 54 53-511 I Sylvania Elec.(P) 36 37-36 U,S. Gypsum .' 116 115-112 Western Auto Supply 56 53-51 CAPITAL APPRECIATION In risk accounts concerned mainly with capital appreciation over a six-month period,I advise a 50 invested position with the remaining 50 kept liquid to await buying opportunities. On further strength to invested the 290-300 area wouldI further lighten accounts to 33 1/3 Buyi,ng Price Range Buying Price Range Admiral (p) 29 29-28 Interchemical 22 21-20 Allegheny Ludlum BaH. 'c; Ohio 35 34-30 27 25-24 Int. Tel & Tel Minn.St.Pl & SSM 18 18 18-17 18-17 Beaunit Mills 18 18-17 Miss.Kan.Texas,pfd. 64 63-60 Canadian Brewing 20 Mkt! National Distillers 20 21-20 Certain-teed 14 14-J13 Northwest Airlines 13 14-13 Chlc .East Illinois 20 20-9 Pacific Mills 25 26-25 Chic,Great Western 23 24-22 Paramount Pictures 28 26-25 CHmax Molybdenum 38 36-34 'Penn Dixie Cement 33 32-30 Columbia Broad 40 38-36 Pittston Company 29 29-27 Collins & Aikman 21 20-8 Universal Pictures 15 14-13 Denver;Rio Grande 80 78-i Vanadium Corp. 40 40-38 Eantern Airlines 26 25-24 Warren Petroleum 35 33-31 Fansteel Metal. 26 28-2;7 Western Airlines (p) 12 11-10 Ferro Corp. 26 27-2,5 Western Maryland 30 26-25 'Gray Mfg. 20 18-107 Western Pacific 61 57-55 Hercules Motors 18 18-17 February 13, 1953 I EDMUND W. TABELL WALSTON & CO. I offer-;;-;;lemorandum is not to be construed as an offer or solie'lation of to buy or seU .!Iny securities From time to time Waldon & Co, or !Iny partner thereof, may haye an Interest in some or !III of the securilles mentioned herein The foregoing m'lterial has been prepared by us .15 matter of Information only It, based upon information believed reli!lble but not neceu!ITlly complete, is n'of guaranteed as accur'lte or final, !Ind h not intended to foreclose independent InqulTy

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Tabell’s Market Letter – February 20, 1953

Tabell’s Market Letter – February 20, 1953

Tabell's Market Letter - February 20, 1953
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( Walston &- Co. .- – ,- – 1e4)7lent I DutvwuJ-. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES .— — NEW YORK PHILADELPHIA LOS IANGELES SAN FRANCISCO LUGANO ISwihed.nd) OFFICES COAST TO COAS1 CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER As far as the Dow-Jones Industrial Average is concerned, volume indications suggest that the marketlmay remain in the 285-275 trading area for a considerable period of time. However, the technical patterns of individual issues and groups are quite diverse and I would expect worthwhile moves in both directions in various indiviual issues during the waiting period. BLAW-KNOX (19 3/4). saleslin 1952 reached the largest dollar volume of business in its history. Shipments and billings should total about 168 million. Profits too will Feach alnear high record despite the shutdown of five plants during part of the steel strike and the inability to obtain comensating price increases to offset higher costs. Net in 1952 rose to about 2.75. Backlog about 150 millioni , Blaw-Knox is a virtual department store for heavy industry. The company designs and builds plantsifor the chemical, petroleum and gas in,dustries; it manufactures castings for the steel, automotive, oil refining, cement, paper and other industrie; it designs and manufactures radio and TV towers and prefab steel buildings and construction machinery; it produce3 equipment for rolling mills; it manufactures food processing equipment, evaporators, dryers, distillation!and solvent recovery equipment. It is also 'an important factor in atomic plant construction. , The company paid quarterly dividends of 25i for a total of 1.25. Reeently the 9-uarterly dividend was raised to 30i thus placing the company on a regular j\1.20 basis. Whether lor not this will be augmented by an extra will depend on earnings at the year-end. On the 1.20 rate, the yield is C'oughly 6 at the present price o 19 3/4. The technical pattern is excellent. The stock appears to be forming a very strong potential base pattern. An upside breakout to 21 would indica1;e 28-33 followed by a long teI'lI\ 41-46. From a technical viewpoint, this 'is an outstandingly attractive iss,ue. ELLIOTT COMPANY (32) was organized in 1901 and is an established manufacturer of steam turbines, el'ectric generators, and electric motors; is the leading manufacturer in thel United States of turbo-charges used to supercharge four-cycle diesel engihes; and also manufactures a variety of related products such as'deaerating heaters, steam condensers, steam jet ejectors, centrifugal blowers, strf3.iners, tube cleaners and accessory and ot)er equipment. Its products are ),lsed principally in the production of 'Power in stationary installations and in locomotive and marine use. Its maln competition is from General EClectric and Westinghouse. Even though thls competition is formidable, thr company has held its own. Net sales have increased from 5.2 million in 1940 to an estimated 50mlllion in 1952. Although company is small, it haS paid some dividend every year since 1905. I The comparison between Ellott and its two chief competitors is in- teresting I Price Dividend Yield Est.1952 Earnings General Electric Westinghouse Elec. Elliott Company 68 45 32 3.00 2.00 2.10 4.4 4.4 6.5 5.10 4.35 5.25 Despite the better investment quality of General Electric and West- inghouse, it would appear that the! price spread over Elliott Company is not entirely justified. 'I From a technical viewpoint, Elliott has a strong pattern. The stock appears to be in a slow uptrend channel. The outer limits are now 28 and 38. The intermediate term objectiv is 42 and the longer term objective is , 50-60. The long term upside potential is 80 above the present price of 33 '.. and the downside risk appears to b 15. \I EDMUND W. TABELL February 20, 1953 WALSTON & CO. \ This memorandum is not to be construed liS an offer or solie tation of offefs to buy or sell any securities from time to time Walston & Co, or any partner thereof, may have an Interest In some or all of the securities mentioned herein iThe foregoing material has been prepared by us as iI matter of infrmatlon only It. is belled upon information believed reliable but not necessrily comDlete, 15 not guaranteed as accurate or final, and IS not Intended to forecloe Independent InqUiry 1

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Tabell’s Market Letter – February 27, 1953

Tabell’s Market Letter – February 27, 1953

Tabell's Market Letter - February 27, 1953
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, …. .- '' i Walston &- Co. ' – – , —…….'.-(hl;';!–N'iC',;—–….–'-,—-,,-….,.–,' ,– I ,MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw;t..,lond I COS,TOFFICES COAST TO CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM , TABELL'S MARKET LETTER .. After giving a good performance most of the past week, the market ,,appears to be meeting the expectd resistance at about 285 in the Dow-Jones , , industrials. Ability to push thr,ough this area on volume would indicate a ,',further advance to the 290-295 overhead resistance. The alternative would '-,,'be' a decline to the 277-275 area.1 If this latter level is reached in the he'xt two weeks, the market would be in oversold territory. However, continue , to stress watching action of indiividual issues rather than the averages. ' ' Would buy recommended issues durihg periods of market weakness and sell un- , fa,vorable issues , of' strength. with long term pIatterns such as the coppers during periods , T' NEW YORK AIR BRAKE (20 1/2) was incorporated in 1890 and is one of the two major domestic suppliers 6f air brakes and replacement parts to the ,nation 1 s railroads. The company abcounts for 25 to 30 of such equipment 'produced. However, the company isi no longer entirely dependent on this ex- , tremely cyclical railroad equipmeht business. In recent years it has pur- sued a policy of diversification and its air brake business now is a minor 'part of total output. Since 1949,1 it has purchased four companies in the field of hydraulic, vacuum and liquids handling pumps and accessories and , the sales of this division are now approximately 65 of the total. This greatly expands the earnings posslbilities of the company. The field of hydraulic transroission and control of power has hardly been scratched and has tremendous growth prospects. These pumps are used in one or more appli- ,,cations on 95 of the cOlmtry' s military aircraft. The use of high vacuums ,– 'also has enormous possibilities nbt only in electronics but also in the pharmaceutical, 'fields. chemical, metalluIrgical, food processing and atomic energy All in all, the company hs a much more interesting potential than the old railroad equipment company which, nevertheless, had an above aver- 'age record in its industry. Theseinew deve20pments do not appear to be reflected in the present price of 20 1/2 and the generous yield of 7.8 'based on 1.60 dividend payment wfuich appears well covered by the 2.85 eat'ned for 1952. The stock is also attractive from a technical point of view. A lery strong potential head and shoulders bottom has been formed over the –,past five years at the lows of 17113-17. An upside penetration of the 1951 , -top of 23 would indicate an intermediate term 28-33 followed by a long term, ',' 45-50. The stock appears to be an linteresting high yield capital apprecia- tion issue I ,', , WESTERN AUTO SUPPLY (55). isales reached new peak levels in 1952 and , alL indications pOint to a continuation of this growth in 1953. As a result , of aggressive management, the company has shown one of the strongest sales ','; and earnings growth trends in the Iretail field. 1952 sales were fifteen , times as great as in 1927 and net lincome increased seven times despite sharply higher corporate taxes. The company is a large auto accessory, home appliance and sporting oods retailer. It owns 276 compariy stores and has 2,740 associate stores 11 tindependently owned, franchised units). The company also operates whole- sale houses. Western Auto Supply stores cover the entire country with the ., exeeption of eleven far western states. Sporting goods and toys account for 2596 of sales, auto-accessories and tires contribute 20. Another 25 of ' ', sai.es ,from are in household garden tools and eqa.pupiplimaenncte. s)I TV and electrical equipment, and 10 are ' Funded debt is 12.75 milion and is followed by 751,368 shares of CODon. Earnings for 1952 were 6.131 a share. Dividend payments totalled 3.75 and the stock yields about 71. Elimination of EPT would help earnings. 19;2 EPT tax liability was 331 a s'hare. The technical pattern is favorable. The stock reached a high of 90 1/2 in 1946. In recent years, t!he stock has formed a potental accutnU'la- ',tion area with an upside objective of 80-90. There is 'strongdownside sup- port in 50-45 area. EDMUND W. TABELL February 27, 1953 WALSTON & CO. I- Thil memorandum II not to b. construed as an, offer or lolldtlltlon of offe to buy or S(!I! any securities From lim to time Walston & Co. or any partner thereof, .. . may have an lnternt In some or aU of the .ecuritles mentioMd herein The 10r&goll1g material has been prcpured by IU as a miHtcr of information only It is -,t … .. b.ued upon information believed reliable but not necessarily comDlete, Is not guaranteed as accurate or final, 'Ind is not .ntended to h. dose independent Inquiry c . . . . . . . . . . . . . -. , , . ' , 1 . .. . …… ;…. . ..;…… .. ,- '-'- .. – – . … , '.., ,,.

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