Viewing Month: February 1954

Tabell’s Market Letter – February 05, 1954

Tabell’s Market Letter – February 05, 1954

Tabell's Market Letter - February 05, 1954
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— Walston &Co. i MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEAOIr..G SlOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,,,,,,,,d) OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIV,6TE WIRE SYSTEM TABELL'S MARKET LETTER February 5, 1954 Both averages reached new highs for the move during the past week. The Dow-Jones industrials, at an intra-day high of 295.43, just about equalled the high of over a year ago of 295.06. The rails, however, at 104.02 were considerably below the December, 1952 high of 113.94. As outlined in previous letters, the technical pattern appearsto indicate an advance to the 295-300 level in the industrials and the 103-105 level in the rails. This could be followed by a normal correction to possibly 285-280 and 100-98. The near term indications appear to favor this sequence. My technical work shows signs of a temporarily overbought condition although no actual sell signal has as yet been given. All of this applies to the short term only. The long term indications remain extremely favorable. The following issue appears attractive for purchase on minor weakness ALLEGHENY LUDLUM STEEL CORPORATION Current Market Current Dividend Current Yield 32 2.00 -A 6.2 The company is a leading pro- ducer of stainless and alloy steels. Earnings for 1953 will Notes Payable 39,860,000 Pref.Stock 81,346 shs. 4 3/8 cum.conv. Common Stock 1,689,195 shs. be above the strike affected 1952 year. Excess Profits Tax payments totalled about 1.40 a share in 1953 and accelerted Net Per Share-1953 Net Per Share-1952 Sales-1953 (9 mos.) Sales-1952 (9 mos.) 4.40 (est.) 3.37 192,100,000 122,800,000 amortization about 3 a share. Prospects for 1954 are for earnings around present levels and the 50/ quarterly payments should continue. Current Assets 60,422,000 Current Liabilities 26,592,000 Horking Capital 33,830,000 -B The company has spent more than 80 million since 1946 in plant modernization and improvement. , This is equal to nearly 60 per Mkt. Range – 1953-1954 39 – 25 1/8 share of common stock and makes Allegheny Ludlum virtually a new A – Also paid 2 stock Dec.1953 B – As of June 30, 1953 (unaudited) and more efficient company. The bulk of Allegheny's output is in specialty steels such as stainless, electrical alloy and tool steels. The company has also announced an expanded program for pro- duction of zirconium strip and other shapes for atomic energy applications. The company's titanium operation represented by Titanium Metals Corp., jointly owned with National Lead, is experiencing satisfactory operations. Allegheny Ludlum also has a 35 interest in Continuous Metalcast, which owns rights to the Rossi continuous casting process. ,, 'I The stock appears to have interesting longer term growth prospects. In this regard, it has more appeal than the average cyclical steel stock. \ The technical pattern is encouraging. The stock has reached its downside objective from the 1951 high of 52 and appears to be forming a' base pat- tern. The stock is volatile and moves over a wide price range, but the 33-26 area appears to be a buying range. WOUld buy for long term hold- ing during periods of market weakness. / EDMUND W. TABELL , HALTON & CO. , \' 11, meMordl'ldum ,I not tbr.iBl,edhllu,on,HI,nf,loIriemraesll!ollIn to be cOlulrued some or 'll of b(lllll'v(lO rel,able CIS an offer or sol,e,tatton tbhet UCLlflt.U mlntloned not neceulItlly comp 0 f 0ff ers 10 h1!reln The fbourye9orlngsedII111r\cc' a(l!rceuhtanseobsreefinFnraolpmreilptniadmreeIdS lete, IS not gll,Hilll e(l')1 II II , tobh nelt mUIe IWn/llatomnat&lerCoof. o.nrfoarnmy lllpiaornlnoerlllytherIeI ofII Inte-nded to foreclo(l lndepO!nd(r,! 'q …. ry

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Tabell’s Market Letter – February 12, 1954

Tabell’s Market Letter – February 12, 1954

Tabell's Market Letter - February 12, 1954
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, Walston e- Co. ;- MEMBERS NEW YORK STOCK EXCHANGE ANO OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO SwH,'dl OFFICES COAST TO CCASi CONNECTEC ay DIRECT PRIVATE WIRE SYSTEM TAB Ell'S MARKET lETTER Febr-uary 12, 1954 Both averages have about reached their near term objectives of 95-300.for the Dow-Jones industrials and 103-105 for the rails. The Inustrlals hav advanced 40 points from the September lows and the ralls have rallled 14 points. Normal technical action and timing would call for a correction at about this stage of the market pattern, despite the fact that te.long-term.trend, still indicates higher.leves. owever, any correctlon should be relatively mild and should not result In.a retraement of much more than a third of the advance. This would brlng the lndustrial bc to te 285-280 level and the rails to 100-98. It is possible that lndlvldual lssues might even advance against the geera tend. I. would not advise disturbing inv.stment holdings that st711 lndlcate hlgher levels over the longer term. I would advise uSlng present strength, however, to sWitch out of situations that have ucertain technical patterns and await a mild correction to replace wlth more attractive issues. Several of my recommended issues have advanced quite sharply since their original recommendations, but in.the main, the technical patterns are still favorable. American Telephone has slowly moved ahead but, in my opinion, is still attractively priced at 160 to yield 5.6. I believe this issue will eventually sellon a 5 yield basis which would mean an advance to the 180 level. I strongly advise this issue for income and moderate appreciation. Babcock & Wilcox at 47 has advanced over ten points plus a 5 stock diVidend, but the pattern still remains favorable. The nearer term upside possibility is 52 followed by a longer tArm 65-70. This . is.s.ue sho.uJ dbe .. he Idand bought on. minor dips. Ther is now support at around 45 . . Cornell Dubiiier has advanced' from 19 to2T. The lOrlg0.r term indication is 41 so retention is advised. There is support at 24. Glenn L. Martin has advanced from 13 to 19. The intermediate term objective is 25-30 so the stock should be held and bought on minor weakness. Mead Corp. has shown excellent technical action. It has broken out on the upside of the long 22-28 accumulation area to reach a high of 33. The upside objective appears to be 41-43. The 30 level should furnish strong support. National Gypsum has been strong recently and reached a new high at 24. The upside penetration of the 18-23 area indicates, from a technical viewpoint, an initial rise to 26-28. The pattern in this issue is strong and the eventual upside objectives are 32-35 and 42. North American Aviation has reached 24. The upside penetration of the 15-20 area indicates an intermediate objective of 27-31. There is support at 22-20. In my opinion, this stock has possibly the most favorable long term pattern in the aircraft manufacturing group. -The company's atomic research work and excellent management are added constructive factors. The long term price objective is considerably above present levels. The stock should be held and bought on weakness. Penn-Dixie Cement has shown the best action in the cement group and has advanced from 31 to 41. Stockholders of record February 26th will have t-he- rightt0,sub-scTilbeto addit;honals.tGckat -the-rate ofone, . . , share for each five held. The near term technical objective is 43 and the long term potential is 55-60. Would add to holdings on weakness. Shamrock Oil & Gas has advanced out of the 36-43 area to reach a new high at 45. The intermediate objective is somewhere in the 50-55 area. The stock should be held and bought on minor declines to the 43-42 support level. Yale & Towne has advanced from a September low of 31 to 39 and is now selling around 38. Ability to reach 41 would be very constructive and, from a technical viewpoint, would indicate an initial rise to the 45-50 zone followed by higher levels.for the longer term. The stock appears to be a purchase around current levels. EDMUND W. TABELL WALSTON & CO. Thl mpmorclndum 15 not io be c;onsirued as an offer or SollClht,on of offers to buy or sell ani secur.liu From t'me to me Wa\\lon & Co, or any partner thereof l',)Y haH an ,nleresl In some or III of Ihe securities mentioned he'e,n The foregolnq mater,.!!1 h,u been prepared b., Y5 a5 a matt!)r of informal,on only It is b., d ypon ,rormhon b!)l,eyed reliable byl not necenardy complete, Ii not qUiHnteed a5 accurate or fln(ll, and I' not Intended to foreclose Independent Inqu,ry ,,

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Tabell’s Market Letter – February 19, 1954

Tabell’s Market Letter – February 19, 1954

Tabell's Market Letter - February 19, 1954
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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 (SwH,.d.,dl OFFICES COAST TO COAST CONNECTEC. BY OIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER February 19, 1954 The market appears to be in a consolidating phase similar to that of December. From late November until early January, the Dow-Jones industrials held in a trading shelf between roughly 285 and 276. However, during this consolidating period, individual issues continued to move ahead. The market is now tracing a similar pattern. For the last nineteen trading days, the average has held in an area between 295.43 and 287.37. Also during this ,period, individual issues have continued their upward trend despite the 'tethargy in- the -genera'L'-average-s'7 I-expect- this actionto- -continue for -a– while longer. During this consolidation phase, the market could work somewhat lower to possibly the 285-280 level in the industrials and 100-98 area in the rails, but the technical patterns on individual issues do not indicate a decline of more than corrective proportions. Minor price weakness should be used to add to holdings in selected issues. SPERRY CORPORATION Current Market Current Dividend Current Yield 52 3.00 5.8 Sperry Corp. appears to offer interesting growth potentials.Busi- ness is divided into four broad Funded Debt Common Stock 19,400,000. 2,085,045 shs. categories. The most important is instrumentations and controls. This category consists largely of Net Per Share-1953 Net Per Share-1954 r.50 (Est.) 6.75 specialized high-precision equipment for the armed forces. Excel- lent volume should continue in Sales 1953 (9 mos.) 352,700,000. this division as the present de- Sales 1952 (9 mos.) 273,100,000. fense program appears to favor t many of the products in which — Current Assets 202 ,410,000. Current -Liab-i–iities – – 146,550,000. . — Sperry Corp. ttlr defemn''- specializes such as Thec-6mpaiiy -flas the – Working Capital 55,860,000. Skysweeper which is a weapon Net Range 1953-1954 54 3/4 – 35 3/4 with radar, computer and gun. Automatic pilots are another im- portant product. A large portion of the non-government sales are in the farm machinery and equipment division. A new smaller, lower-priced hay baler was introduced early in 1953. While sales in this division may be a bit lower in 1953 and 1954, the long term trend should be upward. Sperry is also one of the world's largest producers of hydraulic equipment where liquid is used to transmit and control power. The company has done considerable research on hydraulic steering gears and is producing equipment for power steering on passenger cars. Other products include aircraft and marine navigation instruments, hay twiners and other types of farm equipment, various electronic devices and automatic packaging machinery. The company is also engaged in developing and producing devices for the Atomic Energy Commission. Sperry Corporation will derive considerable benefit from elimination of E.P.T. Payments in 1953 were estimated at around 4.00 per share. With a return to a 52 tax base, it is expected that Sperry could earn approximately,lO .DOin 1954. -This–could. easily result-inan nC-I'ease inthe-.—- present 3.00 annual dividend rate. The technical pattern is very interesting. The stock about reached its initial upside objective of 55 at the recent high of 54 3/4. However, the long term pattern suggests an ultimate objective somewhere in the 75-100 area. From a defensive point of view, the stock has a strong support zone in the 49-45 area. It would appear that Sperry, from both a technical and fundamental viewpoint, is an interesting candidate for sizeable capital appreciation. Stock should be purchased during periods of minor price adjustment. The company earlier in the week declared the regular 751 quarterly payment. EDMUND W. TABELL WALSTON & CO. ..nTIbrh'llYul dmhaeump.oonrdannIdnIulnomtremrIeItsitnoonItn to be construed some or all of beli….ed reliable lI an offer or the cuntiel SOIIC!tatlon of tfers to me,nhoned herein.. The fbouryeqolr ngsedIIm!/IIcahl'fil\s but not ntlllarily complete, 1 not guarlln ee lIS accur e or From time to time Wallton & Co, or any pllrtnr thereof, preplIrld bV us as matter of information only It Ii f al and II not intended to foreclole independent Inqulrv In ,

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Tabell’s Market Letter – February 26, 1954

Tabell’s Market Letter – February 26, 1954

Tabell's Market Letter - February 26, 1954 page 1
Tabell's Market Letter - February 26, 1954 page 2
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Walston &- Co. MEMBERS NEW YORI STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Swlt,ldj OFFICES COAST TO COAST CONNECTEti BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lETTER February 26, 1954 The market continues to show excellent technical action. While the Dow-Jones industrials at the week's lr.w of 287.84 were down almost eight pOints from the early February high of 295.43, they are still within the broad uptrend channel in which they have hela since the Jeptember low of 254.36. Other technical indicators are also showing favorable action. Trading volume continues to ease during declining markets and pick up again on advances. My intermediate term technical indicator became overbought earlier in the month just as it did in December but, from all indications, it would app'ear that -it-'will 'correct 'itself by 'a corfsoiidating phase rather than a decline. The same type action occurred in December. Even if the in- dustrial average breaks below the uptrend channel mentioned above, there is strong support at 285-280. The rails also are showing an improved technical pattern and, while their advance has been below average as compared to the industrials, they are slowly building up rather substantial accumulation areas. The utilities, of course, have shown possibly the best action of the three groups. All of the above applies to the general market. Even more impressive has been the action of some of the individual issues on my recommended list. American Telephone, Babcock & V1ilcox, Cornell-Dubilier, Mead Corporation, National Gypsum, North American AViation, Penn-DixieCement and Shamrock Oil & Gas have advanced to new high territory despite the weakness in the general market. Very few individual issues have formed vulnerable top pat- terns. At the moment, my work indicates no more than a possible decline to the 285-280 level and there is no certainty that this will occur. Even if it does, the technical patterns of some indiVidual issues indicate that they could probably advance against the general trend. Most favorable recent technical action has been in the group that I have been stressing for the last year or more – the light blue chiPs)r\ Another issue in t1is group J riefly reviwed blow ' / .. BLACK & DECKER MANUFACTURING O. I Current Market Current Dividend Current Yield 38 2.00 -A 5.3 Funded debt Common Stock 4,370,000 408,955 shs. Net Per Share-1953 (9/30/53) 6.49 Net Per Share-1952 (9/30/52) 5.74 Sales 1953 (9/30/53) 36,650,000 Sales 1952 (9/30/52) 31,330,000 Current Assets Current Liabilities Net Horking Capital 20,550,000 7,090,000 13,460,000 The company is one of the principa producers of portable electric too. and accessories. Products include drills, jigsaws,screwdrivers,sanders, hammers, shears,grinders and many other small electrical tools. These are used in the automobile, aircraft, building and boat industries and for general industrial U;E but, in addition, the company is b 'r fiting from the greatly increased ciE- mand for hand electric tools from ;rr home owner and farmer. The high co;t of labor has expanded the do-ityourself market tremendously. The company's expansion program,be Market Range (1953-54 41 – 31 5/8 gun in 1951, has entailed addition A-Al paicJ .stk .dv .30/53.. to of its property, 6 million.in plant and equipme t the past three ye'fI s This expansion, plus its heavy investment in machine tools, has caused the company to pay only about 50 of earnings in recent years. The proposed chanlE in the tax laws to allow accelerated depreciation should benefit the company considerably. E.P.T. payments in fiscal year ended September 30, 1953 totale about 1.00 a share. The stock has built up a potentially strong technical pattern. It is selling at below its 1946 high of 46. Since late 1950, the stock has been building a potential accumulation base in roughly the 32-40 range. The 1951 high was 40 3/4. This was fractionally bettered recently when the stock reached 41, The next upside objective is 45-51 for the intermediate term and considerably higher levels for the longer term. There is strong support in the enti.re 38-32 range. The downside risk appears to be about 16 as against an upside potential of 35 for the intermediate term. EDMUND vI. TABELL , Walston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw;t,.,Id) OFFICES COAST TO COAST CQNNECTEC. BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER -2- It must be realized that prices were very high in May, 1946 and yields and price-to-earnings ratios were very low based on 1946 earnings and dividends. For example 20 Blue Chips 20 Light Blue Chips 20 Low-Priced Yield 3.5 3.1 1.4 Price Times Earnings 6.4 7.2 5.2 Here is how a continued holding of the purchases made in May, 1946 would have worked out at various stages of the market May June Sept. Jan. Jan. March 1946 1949 1951 1953 1954 1954 20 Blue Chips 20 Light Blue Chips 20 Low-Priced Dow-Jones Industrial New York Times 50-Stock 100 100 100 100 100 81 150 56 92 38 59 80 135 74 124 162 161 169 96 90 97 62 51 54 142 138 142 135 124 133 It can be plainly seen that the investment issues have far outpaced the other two groups. There is a fundamental reason for this. For example, here is how much in earnings were behind the three groups provided the original 1946 purchases were held intact 1946 1949 1953 20 Blue Chips 20 Light Blue Chips 20 Low-Priced 6482 7175 5215 11,458 11,458 3,608 15,219 12,196 6,695 , The dividends show about the same pattern I 1946 1949 1953 20 Blue Chips 20 Light Blue Chips 20 Low-Priced 3520 3080 1462 5456 5003 1538 7912 6175 2103 Fromthe above compilations, it would appear that the light blue chips are definitely behind the market. While earnings and dividends have not increased as sharply as those in the blue chip group, they are considerably above 1946, while the group is selling slightly below the 1946 price level. It is also evident that there is no reason to expect a sharp upward move in most of the low-priced group. There will be exceptions, of course. EDMUND W. TABELL WALSTON & CO. ThIS mcl'nordndum is not to be construed as an offer or sol.eltaiton of offers to buy or sell (lny seCI,Jrot,(!s From t,me to t,me Walslon & Co. or any pilrtner thereof, mily have an Interest .n some or alt 01 the securd,e! mentioned here,n The foregOIng male,1 h(ls been prep'Ired by us as a matler 01 mfa.matlon only It IS bo.lsed upon ''Ormd/lon believed relldble but not necelscHlly comple!e, .1 no! qUiHdn1eed dl dccurd!e or flndl, dnd , not Intended to foreclole .ndependent InQUirY

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Tabell’s Market Letter – February 26, 1954

Tabell’s Market Letter – February 26, 1954

Tabell's Market Letter - February 26, 1954
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Walston &- Co. MEMBERS NEW YORI STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Swlt,ldj OFFICES COAST TO COAST CONNECTEti BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lETTER February 26, 1954 The market continues to show excellent technical action. While the Dow-Jones industrials at the week's lr.w of 287.84 were down almost eight pOints from the early February high of 295.43, they are still within the broad uptrend channel in which they have hela since the Jeptember low of 254.36. Other technical indicators are also showing favorable action. Trading volume continues to ease during declining markets and pick up again on advances. My intermediate term technical indicator became overbought earlier in the month just as it did in December but, from all indications, it would app'ear that -it-'will 'correct 'itself by 'a corfsoiidating phase rather than a decline. The same type action occurred in December. Even if the in- dustrial average breaks below the uptrend channel mentioned above, there is strong support at 285-280. The rails also are showing an improved technical pattern and, while their advance has been below average as compared to the industrials, they are slowly building up rather substantial accumulation areas. The utilities, of course, have shown possibly the best action of the three groups. All of the above applies to the general market. Even more impressive has been the action of some of the individual issues on my recommended list. American Telephone, Babcock & V1ilcox, Cornell-Dubilier, Mead Corporation, National Gypsum, North American AViation, Penn-DixieCement and Shamrock Oil & Gas have advanced to new high territory despite the weakness in the general market. Very few individual issues have formed vulnerable top pat- terns. At the moment, my work indicates no more than a possible decline to the 285-280 level and there is no certainty that this will occur. Even if it does, the technical patterns of some indiVidual issues indicate that they could probably advance against the general trend. Most favorable recent technical action has been in the group that I have been stressing for the last year or more – the light blue chiPs)r\ Another issue in t1is group J riefly reviwed blow ' / .. BLACK & DECKER MANUFACTURING O. I Current Market Current Dividend Current Yield 38 2.00 -A 5.3 Funded debt Common Stock 4,370,000 408,955 shs. Net Per Share-1953 (9/30/53) 6.49 Net Per Share-1952 (9/30/52) 5.74 Sales 1953 (9/30/53) 36,650,000 Sales 1952 (9/30/52) 31,330,000 Current Assets Current Liabilities Net Horking Capital 20,550,000 7,090,000 13,460,000 The company is one of the principa producers of portable electric too. and accessories. Products include drills, jigsaws,screwdrivers,sanders, hammers, shears,grinders and many other small electrical tools. These are used in the automobile, aircraft, building and boat industries and for general industrial U;E but, in addition, the company is b 'r fiting from the greatly increased ciE- mand for hand electric tools from ;rr home owner and farmer. The high co;t of labor has expanded the do-ityourself market tremendously. The company's expansion program,be Market Range (1953-54 41 – 31 5/8 gun in 1951, has entailed addition A-Al paicJ .stk .dv .30/53.. to of its property, 6 million.in plant and equipme t the past three ye'fI s This expansion, plus its heavy investment in machine tools, has caused the company to pay only about 50 of earnings in recent years. The proposed chanlE in the tax laws to allow accelerated depreciation should benefit the company considerably. E.P.T. payments in fiscal year ended September 30, 1953 totale about 1.00 a share. The stock has built up a potentially strong technical pattern. It is selling at below its 1946 high of 46. Since late 1950, the stock has been building a potential accumulation base in roughly the 32-40 range. The 1951 high was 40 3/4. This was fractionally bettered recently when the stock reached 41, The next upside objective is 45-51 for the intermediate term and considerably higher levels for the longer term. There is strong support in the enti.re 38-32 range. The downside risk appears to be about 16 as against an upside potential of 35 for the intermediate term. EDMUND vI. TABELL ,

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