Viewing Month: September 1953

Tabell’s Market Letter – September 04, 1953

Tabell’s Market Letter – September 04, 1953

Tabell's Market Letter - September 04, 1953
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; — '. .. Walston &- Co. . .. . ''''' ' ;' ' '. , MEMBERS NEW YORK STOCK EXCHANGE AND OTHER'LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES '. SAN FRANCISCO LUGANO ISwH,I.,d) ' , – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – -; OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TA.ELL'S MARKET LETTER ..; ,…,…,., '.' September 4, 1953 .., . At the week's low of 260.32 for the Dow IndustrialS and 95.2) for the', .!'''h,iaRvaeilsa, both averages had reached initial support levels. The Industrials strong support zone at 260-250 and the Rails at 95-90. Toward the ,;.,;end of the week the Industrials recovered to as high as 265.21 and the ;-Rails to 98.02, but volume indications were not particularly favorable. r..;It appears that we may witness another testing of the support levels in . – '\,,the near future. But any mild decline over the next ten' days would bring- ' '\.;the intermediate term technical indicator into oversold territory and would ''result in a buy signal shortly afterward. ' . ,. ;;'.T While this would be of importance, would lay more stress on the ';action of individual issues. A great many of them are either at, or near, i'',.',downside objectives or support levels. A number of these issues are listed '. (,/below. Almost .t; and most oils all groups are included. However i t may ,be.'l'Roted-that rubbera t (except Phillips Pete, Pure Oil, Richfield Oil and Warren .',., bJ.Petroleum) are conspicuous by their absence. Most issues .in these two .,' ,,;1 groups indicate downside objectives below last week's lows ..Suggest switch-' .. ri ing ,lulnerable issues in these two groups into some of the .issus mentioneo; .' (jbelow. (Downside potentials shown are approximate, of course, and certain '. x stocks may go a bit below the prices indicated., Also many ,atocks may re- . .' .). quire C onsiderab Ie time to form bases) . ,,. Week's Downside (;, Week's Downside . \',),' Stock v' d .. Low Potential Stock Low Potential-'. ''',A1lbott Laboratories ',,.',,' J.\ dlll iral C; Aiiegheny Ludlum 39 3/4 23 1/2 27 1/2 40-39 25-22 32-28 Kennecott Copper 60 1/4 Marshall Field 23 3/8 Miss.Kan.Tex,pfd. 62 62-55 – ,',,' 23-22 .. ; , 65-60 .' i,''-'Allied Stores 37 36-34 Montgomery Ward 57 1/4 00-55 ,',' 'l,,Allis Chalmers .,/Al!l.erican Airlines 43 1/8 .. 47 -45 12 1/4 12-10 Motorola '31 1/8 32-30 .. Nat'lDistillers 175/8 18 , ,'.;;, ll'llerican Smelting 28 1/2 31-30 Nat'l Gypsum 17 5/8 20-16 !.',. . Armco Steel 33 3/8 34-32 Nat'l Supply 24 3/8 26-23 ,. , E' ' AYlnOUr 8 3/4 9-8 N. Y. Central' 2'1 1/8 21-20 ,,'. ,,t-13alt. & Ohio 22 1/4 23-20 N.Y.,Chic.& St.L. 31 3/8 38-35 …. i',', Bendlx' AViation 54 3/8 53-50 No .Amer .Aviation ' 16 3/8 16-14 . !'.;,, Rl aw -Knox 15 3/4 18-16 Northern Pacific 55 1/2 58-51 YE', Borg Warner 65 3/4 72-66 Otis Elevator; . '1)'7.5/8',39-37 ;'-;'i Briggs Mfg. ,t';.' BueyruB Erie 33 35-32 22 1/4 24-22 Pan-Amer.AirwaYs'; .i8' 1/2,. 8 Parain.ount Piat. ,j (fj.G!5/8J25-23 ;, Cterpillar Tractor 49 1/8 50-45 Penn-Dixie Cement 3i 1/2 33-31 '',', Chesapeake & Ohio !\Y;-;,Chic,Rock Island .'.'; Chrysler 33 1/2 36-34 65 3/8 69-65 65 5/8 65-60 Pennsylvania ,R.R. 19 3/8 ' .. 20-19 Phelpa Dodge' 30 3-29 Philco .. ,,' . 27 5/8 27 ' .. , ' , , .- Cllmax Molybdenum 33 3/4 ;,..' Coca Cola 108 3/4 ',.' ,' Colgate-Palm 41 '( ' Crane Company 27 5/8 '''. ' Dome Mines 15 5/8 , Dresser Ind. 17 3/4 ,' Eas tern Airlines 21 3/4 ',',,,,.,.' Ellc tt 22 1/2 ,' Fansteel MetaL ,. General Motors 23 55 ',', GHdden Co. 29 1/4 ''.'' Gr'ay Mfg. 14 ,' Great North Rwy,pfd. 49 1/4 '.. , Homestake Mining 35 3/4 . Inter.Harvester 25 1/2 Inter. Paper 48 1/2 Inter. Tel & Tel 14 ,Johns ManVille 57 3/4 32 110-100 41-37 29-27 18-17 18-16 22-20 27-24 27-24 55 32-29 16-14 50-45 36-32 27-23 49-47 13 60-58 Philiips'Pete 50 3/8 53-50 P1p'e;Oil ;,43.3/4 45 RadiO Corp. 21 5/8 21 Raytheon ,9 1/8 11-10 Revere Copper 34 1/2 34-32 Richfield Oil 48 1/2 55-50 Southern Rwy. 39 1/4 39 Square D 21 3/4 24-17 Studebaker 26 1/2 28 Sylvani,a Elec. 30 5/8 30-28 Thompson Prod. ,. 41'1/2 45-40 Uu.nioSn. Carbide,,, Gypsutri /,' 63 1/8 62-58 '1'04 . 10'5-95 Vanadium 33 1/4 35-30 Warren Petroieu.m 31' 33-30 Western Auto Sup. 45 34 48-45 'Westing'se Ele&. 4'1' 41-38 Youngstown Seet 35 3/4' 40-37 , (. EDMUND W. TABELL (Written in Portland,Ore.) WALSTON & CO. .. , Thit memorand,,, Is not to be conlfrued .s an offer or solicitation of off. to buy or 'eU any ,ecu,ltles, From tim. to time Waldon I Co or any partner thereol, ' rna, hollY an lnt.rest In sam. or all of th. ,ocurltle. mentioned h.r.ln, The fOfe9oln9 mat.rI.1 h b.en prepared by UI al a matt.r of'lnformatlon onl, It Is , , .., bdsed upon in'ormatlon tJ.1i…d r.liabl. but not n.cenerlly com pi …. II not 9u.rant..d es accurete or final, and is not Int.nd.d to for.clo'e Indep.ndent Inquiry ' . ' , .,' .. . . , . , ' .' ' . .-. , '.,.'.',' . , , , …,. –….-tJ1'.Q,;;0!17tf f' –.-.——- –…… …ottt!''''—–

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Tabell’s Market Letter – September 11, 1953

Tabell’s Market Letter – September 11, 1953

Tabell's Market Letter - September 11, 1953
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Walston &- Co. , , MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCICO LUGANO (SwH,.d.,d) Off1CES COAST TO COAST CONNEC1Et. BY OI!lECl PRIV,ATE WI'R SYSTEM TABELL'S MARKET LETTER . .. '.' September 11, 1953 , , As anticipated, the advance from the previous lows did not carry ', very far. Volume indications on the slight recovery that did develop ,' were unfavorable. On Friday, the Dow-Jones Industrials and Rails had declined to 258.94 and 92.05, respectively, as compared with the pre- '..,' ' vious week's lows of 260.32 and 95.24 . The decline may be extended somewhat further but the 95-90 level , in the Rails and the 265-250 zone in the Industrials offer strong sup- port. Both intermediate-term indicators are now in oversold territory and are in position to give a buy signal at any time. Would use present ',, weakness to add to holdings. Believe we are near.ing a rather important ',,, intermediate-term buying pOint. , '. ,.. ' One week ago I published a list of 74 rather prominent stocks '',',j 'o'Ihich had declined to, or nearly to, downside objectives or support ' ,..i levels. This week, I am listing 56 more issues which are at, or near, ' ';heir downside objectives. However, these are secondary type stocks , and, of course, will move more slowly than the market leaders and also ',' may require more time to build up new base patterns. Furthermore, many , ' of these secondary issues may be under further tax-loss selling ,, pressure between now and the end of the year. …. Approx. Downside Price Potential .. erne Steel A.ldens ',' ' Amer .Broad -Para. , ' 4merican Distilling American Fgn.Power Ilnerican Mach .Metal American Potash ',merican Radiator ,' Amer .safety Razor ssoc.Dry Goods Austin Nichols ..' ' J,vco Mfg. Bayuk Cigars Budd Co. P,ulova Watch Byron Jackson Calgary & Edmonton , Carpenter Steel Central of Ga.Rwy. Chicago & East. Ill. Chlc.,Mil.& St.Paul , Chic.,& No. Western Colorado Fuel Consolo Engineering , Consolo Textile Continental Baking Decca Records ',' , Elastic Stop Nut 21 18 13 1/2 32 8 1/4 17 28 3/4 13 1/4 7 19 5 3/4 5 3/8 9 5/8 11 3/4 36 3/4 17 409 31 1/2 14 13 7/8 13 3/4 15 3/4 12 9 21 3/8 8 3/4 13 3/4 23-20 18-17 12 33-27 8 16 29-26 13-12 6 18 5 5 9 11 36-34 19-16 10-8 40-36 35-32 15-13 16-14 14 16-14 12-10 9-8 21-19 8 14-13 Approx. Downside Price Potential Gaylord Container General Baking General Instrument General Time Gleaner Harvester Kaiser Aluminum Lane-Wells Lees, James Liquid Carbonic Magnavox Minneapolis Moline Minn. , St.Paul,SSM Moore-McCormack Motor Products Mueller Brass Murray Corp. Nat'l Mall.Steel Oliver Corp. Pacific West.Oil Pepsi Cola Reading Co. St.Louis-San Fran. Schenley Ind. Sinclair Oil Standard Brands Stewart Warner Universal Pictures Western Maryland 22 1/4 12 11 1/4 27 3/4 11 3/8 25 19 25 16 17 11 7/8 10 7/8 13 24 1/2 22 1/4 17 3/4 24 9 1/2 32 12 27 3/4 25 20 1/2 30 1/2 25 3/4 17 3/4 15 1/2 21 3/4 24-22 12 10-9 30-27 13-12 25-22 18-17 25-23 16 17-16 16-12 13-12 15-12 28-24 22-20 19-16 26-21 12-10 34-31 12 29-27 24-23 24-20 36-32 27-25 19-17 14 23-21 (Written in San Francisco) EDMUND W. TABELL WALSTON & CO. lhh memorandum 1, not to be construed as an oHer or solicitation of offers to buy or sell ,any securities From Hmo to time Waldon & Co, r any partner thereof. may h,.,e !In Int.,est in some or ell of the securities mentioned herein The foreQolng materlal has been prepard by ,!S as a matter of Information only It I' bllsed upon Information b.II ….ed rellllble but not necenarily complete, I, not guaranteed as accur!lte or final, and IS not Intended to foreclose Independent Inqult'l'

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Tabell’s Market Letter – September 18, 1953

Tabell’s Market Letter – September 18, 1953

Tabell's Market Letter - September 18, 1953
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–' -. ' . Walston 5- (;0 .. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISwitd.,d, OFFICES COAST TO COAST CONNECTEr. BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER September 18, 1953 I usually start this weekly letter with a paragraph or two about the technical action of the Dow-Jones industrial and rail averages spiced with some additional comment on the favorable or unfavorable volume indications and garnish it all off with some observations on individual stocks. However, I've just returned from a trip by car across America and part of Canada and, somehow, the fact that the stock market declined four pOints on Monday and moved up two points on Thursday doesn't seem very important. To really appreciate what is happening today I advise you to travel across the country at least once by automobile. I heartily recommend such a trip to economists who are worrying about the coming depreSSion, to short term traders who are worrying about what the market is going to do next week, and to native New Yorkers in general. It is easier and faster to travel by plane or train. I came back that way and it is amazing to realize that you can have a leisurely Scotch and soda at the Brown Palace Hotel in Denver, Colorado, at eleven thirty in the evening (230 A.M. New York time) and still arrive at La Guardia before nine o'clock the next morning. But, by traveling that way you miss a great many things. You miss seeing the small cities and towns. You miss seeing that the women at luncheon in Bemidji, Minnesota, or Minot, North Dakota, are just as well dressed and well groomed as their prototypes in New York. You miss the fact that the restaurant where you had breakfast at Coeur d'Alene, Idaho, is most likely Just as comfortable as the one where you dined out in New York. You miss the interesting municipal golf course at Grand Forks, North Dakota. You miss stopping at the motels that are far more attractively furnished than most New York City hotel rooms. You miss seeing the growth of Winnipeg, and Calgary and Williston. You miss seeing the pipel'ine being built from Superior, Wisconsin, across Michigan to Sarnia, Ontario. It will bring oil from Alberta to the East regardless of the weather. You miss seeing irrIgation that is changing the desert regions of eastern WaShington into a rich agricultural area. You miss seeing the miles and miles of wheat fields in Minnesota, North Dakota, and Montana and the modern farm equip- ment that is servicing them. You miss the well equipped retail stores that are selling the same merchandise that you see in New York shop win- dews. In short, you miss seeing that a huge demand for goods is being built up in every hamlet and town in the country and even our great in- creases in productive capaCity in recent years may not be able to meet the demands of a population that is increasing at the rate of more than 2 1/2 m,illion annually and has the money with which to buy ' what it wants. 'To return to the stock market for a moment, perhaps that is why the long term technical pattern of the market is favorable. I believe the market is less vulnerable at the moment than at any time in the past two years. To the holder of the average stock, rather than the stock market averages, we have been in a bear market since 1951. I believe we are much nearer the end of this readjustment period than the start. After it is ended, I expect a much higher level of equity prices for a nlmoer of years. The next few months may be the last opportunity to buy conrnlon stocks at the favorable price to earnings and price to dividend ratios available today. There mayor may not be some further irregularity, bu.t 'co the long term investor it will make little difference if he buys at 260 or 250 or 240 if the market, several years from now, reaches 500 or 600. I believe it will. Let's stop watching the tape and the averages and concentrate on buying selected growth equities at the favorable prices and yields available today. I promise you I will return to a more technical frame of mind next week. The atmosphere around here finally gets you. EDMUND W. TABELL WALSTON & CO, Thil memorandum It not to 1M construed al .n offu or solicitation of offe,. to buy or Mil .ny securlt,, From tim. to time WoIIbton & Co. r any artner thereof, mr ha…. an Int.,.n In 10m. or .11 of the securltl.s m.ntloned h.r.'n Th. 'or'Qol1\9 materiel he, been prepered by UI a matter of Information only It. IS baud upon Informetlon believed tenable but not neeenafHy complete, II not quatante.d al accurate or finel, and II not Intended to foreclose Independent InqUiry …. . ….. ' ' .. ,.,. . , , ,,' ',' ,'. ,,, '

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Tabell’s Market Letter – September 25, 1953

Tabell’s Market Letter – September 25, 1953

Tabell's Market Letter - September 25, 1953
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– — – – – – – – – – – – – – – – – – – – – – – – – – – —- Walston Co. MfMeUS HEW YORK STOCK ECHN6E AND OTHER l.EADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA ' LOS ANGELES SAN FRANCISCO ' LUGANO (SwH,.,I.nd) OFfiCES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER September 25, 1953 The market has gradually pulled away from the early September lows of 254.36 in the Dow-Jones industrials and 90.39 in the rails. The technical . indicators became sharply oversold earlier in the month and an intermediate term buy was signalled. The rally from the lows has carried to 264.06 and 94 .30. Any further advance will meet resistance at several levels above he market. In the industrials, there are supply levels at 265-267, at 70272 and again at 275-280. The rails also have various resistance zones.The most important is the 99-102 area. Continue to believe that the better- grade, higher priced issues offer the best buying opportunities at this ttage. I was very pleased by the many favorable comments on last week's letter, Considring the sources of many of the letters I received, they served to substantiate my already firm belief that prices of good, selected common tocks are low at present levels and that, despite some possible further ir- regularity over the next six or nine months, we will witness a much higher level of equity prices over the next few years. One letter posed a very interesting question. It was from a young pro- .fessional man who was just starting to enter higher income levels. His a- vailable funds for immediate investment were relatively small and he said he was confused by the large number of issues on most recommended lists. He wanted to know what two or three growth stocks he should buy at the moment. Ee was not particularly interested in income, but rather in long term growth !n good, established companies. .. Well, it isn't an easy question to answer. There are many companies that wO'JId fit into a list of this nature. Many other issues may work out more favorably than the three stocks I am going to suggest. However, these three Stocks cover a pretty wide segment of the recognized growth industries and that is my reason for selecting them. Two are better quality issues — Union Oarulde and Eastman Kodak. The third is more speculative – Radio Corporation cf America. In Union Carbide, now selling at around 65 and yielding 3.8 based on the 501 regular quarterly dividend and the 501 year-end extra dividend paid in 1952, you have a recognized growth company. It is selling about 17 times stimated 1953 earnings of 3.90 per share. The yield may seem low and the price to earnings ratio high, but this company has an excellent growth rate tn sales and income that should continue. It is the second largest manufac- !er of plastics including the fast growing polyethlene used in squeezable, non-breakable bottles and for transparent wrapping for wires,cables and ship- ping containers. It manufactures six of the eight more important plastics 'der the Bakelite brand name. It is the largest manufacturer of petro- 11emicals. It is the largest producer of alloys and specialty metals in the world. It manufactures over 350 different chemicals. It is the manufacturer of liquid petroleum gas under the name of Pyrofax. In the synthetic fibre field, the company has Dynel which resembles wool in appearance. It manu- factures Prestone anti-freeze and all major types of batteries,electrodes and carbons. Its Eveready batteries are well known. In addition, company has large sales in industrial gases and carbides.Extensive research is being copducted on silicones, hydrogenation of coal and atomic power. Eastman Kodak is best known for its photographic division,but this accounts for little more than half of its total sales. Through the Tennessee Eastman division it has become the second largest producer of acetate yarns and cellulose fibre and is conducting extensive research activities on new acrylic fibres. It would appear that the stock has done little marketwise and has held in the 50-40 area since 1946. However, the purchaser of 100 shares in 1949 t 43 would, through stock dividends, now hold almost 150 shares worth roughly 6400. At present price of 43, the stock yields about 4.1 based on the 1.80 dividend. Radio Corporation is more speculative than the two other issues but has dsnamic growth possibilities. It is-engaged in all phases of electronics and holds many basic patents. The company has the facilities and financial re- sources to fully participate in the growth of color television and tremen- fious field of electric controls. The dividend of 1.00 provides a yield of 4.3 at 23. EDMUND W. TABELL WALSTON & CO. Thu .rfll,may memorllndum is not to b. have an .nterest In some construed or al,l of a. lin oHt or tho '.CUrltI U)hcj,.tlon of me,nholu,d h, H.n to Th,. \I 1\ wc.lnttl.., ffom time to time Wahton & Co, or any partner thereof, f\lourl.9Olfn,9d t rial hal – !ccuret. b'n prepared or finlll, end II by not loll ,u matter of Infrmatlon only It. IS Intended to foreclose Independent InquirY .t., quat… . .baled upon Information behll….d r.llabl. but not necenauly comp 110 .. .. ,.. ., , , ',' , .. .. i.-'-;….–'– – – – – – -,writ j l' Iz! n, ,.,'iU';l , , '.,. .;d'','..' ;'. …- ' '. ; ' .. ……..;r;..,…;……,… . – \- ' , 'f' U

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