Viewing Month: March 1954

Tabell’s Market Letter – March 05, 1954

Tabell’s Market Letter – March 05, 1954

Tabell's Market Letter - March 05, 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 ISwa,..IdJ OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYStEM TABELL'S MARKET LETTER March 5, 1954 The market continues its advance with the Dow-Jones industrial average Ireaching new high territory at joo.68. This is a decisive penetration of oth the early February high of 295.43 and the 1953 high of 295.06 which was eached in January of that year. The upside penetration of the month-old trading range now raises the support level ten pOints from 285-280 to 295-290. er the upside, the industrial average is pretty much in the clear, but formula plan selling at around the 30C level ts liable to cause at least orne heSitation or consolidation. My short term lndicator has entered overought territory and it would be entirely normal technical sequence if the 'rdustrials reacted to the 295-290 support level over the next week or so. would not expect much more than that at this particular stage. The average shows no signs of an important top and general technical factors are favor- fble. Some concern is expressed because of the backward action of the rail verage. At the week's high of 103.57. the rails were not only considerably below the late 1952 high of 113.94, but even below this year's high of 104.50. ailure of one average to confirm the action of the other may have had some eaning in past markets but, in my opinion, this concept has little or no validity in the selective markets of the past five years.Besides, the rails ave a considerable supply area at around present levels and I would consider it normal technical action if the rail average spent more time in the 105-98 rea. I expect the eventual breakout to be on the upside. Below is a brief analysis of a new addition to my recommended list of light blue chips — HEWITT-ROBINS, INCORPORATED urrent Market 29 The company was formed in 1945 as th Current Dividend 2.00 result of a merger of Hewitt Rubber' 1rrent Yield 7.0 Co. and Robins Conveyors,Inc. Except for tire manufacturers, Hewitt-Robin png Term Debt 5,460,000 is the world's largest producer of pmmon Stock 287,051 shs. rubber products. In addition, the co pany is a leader in the conveyor ma- t Per Share-1953 4.29 chinery field and is also the only 0 r- t Per Share-1952 3.67 ganization making both the rubber be S3.1es-1953 38,494,000 ing and machinery components for bel les-1952 37,365,000 conveyor systems. There are four main divisions. The -rrent Assets 15,648,000 Rubber Division specializes in indus rrent Liabilities 5,291,000 trial rubber products,principally co t Working Capital 10,357,000 veyor belting and industrial hose. The Restfoam Division has shown re- irket Range 1953-54 29-23 5/8 markable growth. It is one of the four largest producers of foam rubbe the United States. Principal products are foam rubber automobile seat cush- ')ns, furniture cushioning and foam rubber pillows. The third overall division the ConveYJrs and Engineers Divisions. These two divisions specialize in th 2sign and manufacture of materials handling machinery and the design,engineer 'rg and construction of complete conveyor systems for the handling of bulk aterials. The fourth diviSion is the International Division which directs 1 foreign sales and manufacturing operations of the company. The company s markets in Great Britain, Continental Europe, Japan and South America rd a subsidiry in South Africa. The continued growth prospects of the company (combined sales were .2 million in 1941) particularly in conveyo eqUipment and foam rubber, re reduction in cost of its raw material, the sound management, the generous eld, the small share oapitalization and the fact that the stock is selling around eight times the ten-year average earnings all combine to make the -ock an attractive purchase. From a technical viewpoint, the stock has been building up a strong po- – ntial head and shoulders base pattern at 20-14-20 with a top at 29. This ttern has been forming for six years. An upside penetration would indicate , intermediate term 37- 4 ., aml a m.;.'h higr,er on;;er prm objective. There is bwnside support at 23-22 so t.he ,-,pside potpntial appears to be 6,, as rainst a downside risk of 21 for ,he intermediate term. . ofThIS il!tA.drray momOfndum II not.to be havr- dll Inlafllll! III some .;onltrued or dH of , 'In offer, or 10lil;ltltl0 of offers to the CUfltl m.ntloned hor11 The buy or u foregOing IImaantyerialIl('1h'trtTht.Itlisd-tobltf 1i9E'Jao.m;toa.t6tfeorCr,ocl or any partner thereof, information only It 1\ ose IndllP,ndllnt ,nqulry basd upon ,nformation believed rellllbte but not neclIIUlnly complllhl, IS not gUlIrdnteed iH lIccurli , ,, ,

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Tabell’s Market Letter – March 12, 1954

Tabell’s Market Letter – March 12, 1954

Tabell's Market Letter - March 12, 1954 page 1
Tabell's Market Letter - March 12, 1954 page 2
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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 (Swit,l.nd) OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER March 12, 1954 It is generally accepted that the market has been selective since 1946, but I wonder if most people realize just how selective it has been. The action of the general averages doesn't even start to convey the markets within markets that have been going on since 1946. This has been mainly brought about by the growing importance of institutional buying and selling as against the declining in- fluence of purchases and sales of the short term trader. The trends of today are brought about largely by reasoned professional thought rather than emotional hopes and fears. It is a much sounder and sensible market. It is difficult to portray what has happened but possibly a breakdown of the market into three different groups will help. First, have selected twenty blue chip equities. The chOice has been based on a recent article in Trusts and Estates. These are the twenty favorite stocks of 130 Common Trust Funds of leading trust companies. The stocks are American Can American Cyanam DuPont, E. I. General Electric General Foods General Motors Gulf Oil Johns Manville Kennecott Copper National Dairy Penney, J.C. Phillips Petroleum Sears Roebuck Socony Vacuum Stand.Oil of Cal. Stand. Oil of Ind. Stand. Oil of N.J. Texas Corp. Union Carbide Westinghouse Elec. The second group I have selected myself. They are the light blue chips or businessman's risk type of eqUity. They are somewhat below the quality of the above group but all are sound companies. They include Allied Stores Allis Chalmers Babcock & Wilcox Blaw-Knox Bucyrus Erie Burroughs Chain Belt Clevite Corp. Crane Co. Distillers Sea. Elliott Co. Joy Mfg. Lowenstein Mead Corp. National Gypsum N.Y. Air Brake Penn Dixie Cement Rheem Mfg. Sylvania Elec. Yale & Towne The third list is a more or less arbitrary selection of twenty low-priced, speculative issues. It is based on the twenty most actively traded low-priced common 'stocks during 1953. It is the type of issue that the institutional buyer, in the main, would not follow. The list includes American Airlines Armour & Co. Avco Corp Balt. & Ohio Canada Dry Columbia Gas Emerson Radio Gimbel Bros. Pennsylvania R.R. Internat'l Tel & Tel Pepsi Cola Loew's Raytheon Mack Truck Rexall Drug New York Central Servel Packard Spiegel Pan-Amer.World Air. All of my calculations have been figured on the average price of May, 1946 as a base period. This is the month in which the various averages reached their 1946 highs. To make calculations easier and eliminate fractional shares, I have assumed an 100,000 investment in each group with an equal dollar investment of 5,000 in each of the twenty indiVidual stocks at the average price of May, 1946. Thus the base figure is 100 in all cases. The two averages are figured on the same basis. , .. 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 – March 22, 1954

Tabell’s Market Letter – March 22, 1954

Tabell's Market Letter - March 22, 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 (Sw,t,ldl OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lEnER March 22, 1954 AMERICAN RADIATOR & STANDARD SANITARY CORP. STATISTICS BACKGROUND purrent Market (approx.) urrent Dividend urrent Yield referred Stock rommon Stock (Shs.) Net Per Share 1953 Net Per Share 1952 Sales 1953 Sales 1952 Current Assets Current Liabilities () As of 12/31/53 Market Range (1953-54). –; – -o 16 1/2 1.25 7.6 .;; ,38(; , itoo 10,043,291 1.83 1.78 298,268,000 277,153,644 126,892,367 32,665,683 American Radiator is familiar to everyone as the world's largest manufacturer of heating plumbing-and-ventilating equipment. Other operations embrace building accessories, plastics, temperature controls, etc. In addition, the company produces fluid drives for industrial and marine use. It recently has entered the air-conditioning field and is pursuing an active development program. Plant facilities consist of 29 units in the United States operated by American Radiator and its subsidiaries, four in Canada and 13 affiliated units in Europe. Distribution is handled on an extremely broad scale; blanketing the United States and other areas served. – – COMMENT American Radiator has shown good results in the post-war period. Earnings have amounted to 1.78 a share or better in every year since 1947. In 1953, net amounted to 1.83 a share, a modest gain over 952. Operating income, however, showed a very significant improvement, ising to 37.2 million in 1953, compared with 30.2 million for the year )revious. -Current prospects are that income in 1954 will continue to be ex- ellent, based on the improving tendency shown by margins and the strength )f the residential construction market, which has been noticeably better chan economists had previously anticipated. New management is showing 5reater aggressiveness than the company's former adinjstration, indicating chat, in the future, American Radiator may be able to capitalize on its strong industry position to a greater extent than has been the case in the )ast. The company's finances are strong, with the 1953 report showing cash rPproximating total current liabilities and a current ratio of 3.9 to 1. rotal dividends of 1.25 a share are both liberal and well-protected. he combination of good construction prospects, more active management, trong financial condition and excellent earnings and dividends makes merican Radiator an interesting commitment for both income and capital in over m0l2.ths ahead. . 0 ; ; – -,r. Tabell is on vacation and the above analysis is from our Research )epartment. Mr. Tabell's technical analysis on this issue is as follows MERICAN RADIATOR BUY Stock appears to be building up a strong potential base pattern in he 12-17 area. While no immediate move is indicated, the eventual ob- ective is 27 followed by 40. There is some temporary supply in the 20-22 ange. There is support at 13-12. EDMUND W. TABELL

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Tabell’s Market Letter – March 26, 1954

Tabell’s Market Letter – March 26, 1954

Tabell's Market Letter - March 26, 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 (Sw,Id) OffiCES COAST TO COASi CONNECTE BY DIRECT PRIVATE WIRE sYSTeM TAB ELL'S MARKET LEnER March 26, 1954 BLAW-KNOX COMPANY STATISTICS BACKGROUND Current Market Current Dividend 18 1/2 1. 20 As a producer of thousands of different types of products for Current Yield 6 1/2 the major industries of the country and as an important sup- Capital Stock (shs.) 1,446,755 plier of equipment for atomic ' energy plant construction, Blaw- .Net Per .Share ,1953 –22. 8967— – ..- -Knox-appears -well-fortified to . Net Per Share 1952 meet any dip in military demand Operating a total of 10 plants, Sales 1953 120,067,563 6 in Pittsburgh area and the Sales 1952 99,941,469 rest in N.Y., Ohio and Minnesota, , , and with sales offices in all ma- Market Range (1953-54) – 15 3/8 jor cities, it is a virtual de- partment store for heavy industry. Plus 2 stk. diY. paid 1953 A broad range of fabricated prod- ucts and specialized equipment,as well as engineering and construction services, are supplied to such indus- tries as steel, automotive, chemical, food, paper, cement, metal, petroleum and gas, public utility, and road-building. COMMENT The company started 1954 with a 70 million order backlog. This is below the year-earlier figure but it should be noted that it does not include orders on hand from the Atomic Energy Commission as these are handled on a fee basis. Still to be completed is a 40 million AEC contract, awarded last year, to build the chemical processing plant at Hanford Atomic Works. Additiona1 multi-million dollar contracts have been received from the AEC for its Portsmouth plant and National Reactor Testing Station in Idaho-.It is-s,j,gnificantthata sizable-portronof the-order'backlog- represents contracts for the building and equipping of processing plants in the rapidly-expanding chemical and petrochemica1 industries. Also noteworthy is the fact that the recent acquisition of a road-building machinery company greatly extends the firm's participation in this field, so that it will be in an excellent position to benefit from the anticipated acceleration of public works activity. Sales reached an a11-time high of 120 million last year, and earnings amounted to 2.93 per share based upon the number of shares outstanding before issuance of additional stock for the 2 stock dividend paid in December. Based upon the number of shares presently outstanding, 1953 net was equal to 2.86 per share. While this year's results may be somewhat 10wer, the management looks for maintenance of sales on a high plateau and earnings wi11 be supported by elimination of excess profits taxes, which severely penalized profit in recent years. Considering that the company is a supplier to heavy industry, its earnings have been remarkably stable, having fluctuated between 2-3 during the past nine years. The record of dividend disbursements is good, only 4 years having been missed since incorporation in 1919, and the current rate of 301 quarterly appear iecure, based upon earntngs PfSpets and t company' s 'sfrong financial position. An all-common capitallzalon with no debt urther enhances the appeal of Blaw-Knox common as an lnteresting commit- ment for both income and capital gain. Mr. Tabell is on vacation and the above analysis is from our Research Department. Mr. Tabell's'technical analysis on this issue is as follows BLAW -KNOX (18) BUY Stock formed a very strong base pattern in the 11-20 range. The upside penetration indicates 28-33-followed by a long term 41-46. Buy on any price dips. An outstandingly attractive issue. There is support at 16-14. 1953 high was 23 EDMUND W. TABELL lOIATSTQN BG GO, t Walslo & Co or /lny D!IIllH 'h,,-eo bertThiS mllY mhlelmvoraannd,unmlerne1noItn toombee con\true or /111 a, an ofh. r sohcitatlon of offen to menhoned herein The b ule,un Ie ua I, tomplete 15 not buy or Stll any ,ecurill foregOing qUdr!lnteed muat erial ha, aCcur!lta e' or FrormreptlmTee,d t onb ' t ' ; 0111 cl ,ntendl!d mtoatt'o.reoli',enfo,rnmdeilDtoonndnonllytr,ouIt,tV1 \ Ina, an I b.,ed upon 1Ilformdilon believed rei'!Ib I! U no neel! rI ,

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