Tabell’s Market Letter – April 24, 1953

/'- ' '-Walston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,twl.nd) OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM , ;TABEL'lt below the early April lows of 271.99 in the Dow- riones industrials and 102.29 in the rails to reach intra-day lows of 269.25 .and 101.02 on Friday. The closing levels were 271.26 and 101.88. Penetra- tion to new lows has little significance in the present technical pattern. There is strong support all the way between 270 and 255 in the Dow-Jones 'injustrials. It is my opinion that the decline will halt in the upper levels. of this very strong support area. It is my belief that the market is at or near a very important buy- .'1g pOint. Both the short term and intermediate term technical indicators at in a position to give a buy signal during the next week. This is the fi'rst time since the January highs that both indicators have been in gear. Earlier in the year, this letter advised reducing Long Term Invest- lIIent Accounts from 100 invested to 75 and Capital Appreciation Accounts ft'om 75 invested to 50 invested; Recently, we have advised increasing nvested positions to'lGO in Long Term Investment Accounts and 75 in !;apital Appreciation Accounts on weakness to the 275-270 area in the indus- ';rlals and 103-100 in the rails. On further minor weakness, would increase c'1'iested position in Capital Appreciation Accounts to 100 invested. LONG TERM INVESTMENT In accounts concerned mainly with income and ,lODger term appreciation, I have advised increasing invested positions to JOO during declines into the buying areas mentioned. In addition to the issues recommended last week, would add the -z.. l)Llowing Buying Buying A'llt)l'ican News Price Rane 36 3b- 4 Glidden Price 5 Rane 34- 3 nimdix Aviation 57 57-54 Great No .pfd. 52 52-50 Caj ifot'nia Packlr.g 26 26-25 Indust .Rayon 46 46-42 r.h.c. ,Rock Island 68 66-64 Louis.& Nash. 59 59-56 Corn Products 70 70-68 PillsbuI7 (p) 35 35-33 Flntkote 29 29-27 Vick Chemical 24 24-23 In last week's letter, some copies carried the wrong figures on G.'Cneral Railway Signal. The price should be 33 and the buying range 33-32. CAPITAL APPRECIATION In risk accounts concerned mainly with capital ,,;oJ.'eciation over a six-month period, I have advised increasing invested r,ositions to 75 from 50 during periods of decline. Would become 100 in- 'rest;ed on further weakness. ' I a adding some additional issues to the list. Because of a typo- grcJ.p!1ial error on some copies of last week's letter, the prices and buying -,c.r,ges were in the wrong spaces. I an; reprinting the entire list below i,'5th additions Buying Buying Price Range Price Range A01T.ir'a1 (p) 26 26-25 Hercules Motors 19 ,tl.l'.eghany Corp. 5 5-4 Interchemical 23 AJlegheny Ludlum 34 34-30 Int. Tel & Tel 17 Amer.Encaustic Tiling 7 7-6 Masonite 21 Bahimo'e & Ohio 25 25-24 Be3.1Jnit Mills 20 20-18 3ell & Howell (p) 20 20-19 C',nadian Brewing 18 18 Celanese 26 26-25 Certain-Teed 14 14-13 Cicago East.Illinois 20 20-19 Chicago Great West. 20 22-20 Minn.St.P.& SSM 14 Miss.Kan.Tex.pfd.63 National Dist. 19 New York Central 21 N.Y.,Chic.& St.L.40 Northwest Air. 12 Pacific Mills 26 Paramount Pict. 27 Climax Molybdenum Golumbia Broad. Collins & Aikman Decca Records (p) Denver,Rio Grande Dome Mines Eastern Airlines Farstee1 Metal. FerlO Corp. Goodall Sanford Ci.ray Mfg. Creer Hydraulics 39 38-36 43 41-40 21 20-18 11 11-10 75 75-70 21 21-20 24 24 31 31-29 24 25-24 17 17-16 19 18-17 17 18-17 Penn-Dixie Cement 35 Pittston Co. 27 Raytheon 13 Servel 12 Stand.Packaging 14 Universal Pict. 16 Vanadium 40 Warner Bros. 16 Warren Petroleum 34 Western Air.(P) 11 Western Maryland 26 Western Pacific 55 Ap!'il 24, 1953 (p) Prospectus available on request. 19-18 23-21 17-16 21-20 1-13 63-60 20-19 21-20 41-39 13-12 26-25 27-25 35-33 28-26 13-12 12 14-13 16-15 40-38 17-16 34-32 11-10 26-25 56-54 This memorandum is not to be condrued as an offer or solicitatron of offers to bu 'M lfies 0 time Walston & Co. or any partner thereof, I may have an rnteret in some or all of the secuntles mentioned herein The foregoll11l1 /l1i1I!'t'IM\T be!Qf, ted by u as a matter of Information only It is . based upon information 'believed rehable but not necessarily comolete, is not guarantellllt-itcurlrti'or trna1, and' is not intended to foreclose independent InqUiry