Viewing Month: July 1954

Tabell’s Market Letter – July 02, 1954

Tabell’s Market Letter – July 02, 1954

Tabell's Market Letter - July 02, 1954 page 1
Tabell's Market Letter - July 02, 1954 page 2
View Text Version (OCR)

Walston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Swlt,.,ld) OHleES COA51 TO COAST CONNECTEr. BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lETTER July 2, 1954 The market moved over a wide range during the past week with the Dow-Jones industrials advancing to a high of 338.78 on Tuesday and declining to a low of 330.68 on Thursday. At present writing, the in- dustrial average has regained most of the week's decline. I expect the market to continue to move in a wide trading area for some time to come. Many issues have reached upside objectives and are in need of consolidation, but there are also many issues that still indicate higher levels. . Below is a brief report on Yale & Towne. This stock has been on my recommended list for some time. It has advanced from a September 1953 low of 31 to a recent high of 49, but has, in my opinion, excellent longer term appreciation potentials. YALE & TOWNE MANUFACTURING CO. Statistics Yale & Towne was founded in 1868 Current Market 45 and has paip a dividend each year Current Dividend 2.50 -A since 1899. While better known to Current Yield 5.5 the general public for its old es- tablished line of Yale locks and Long Term Debt 20,000,000 builders of hardware, it is one of Preferred Stock None the three leading manufacturers of Common (shares) 628,586 industrial fork lift trucks. Because of high labor costs, materials hand- Net Per Share,1953 4.61 ling equipment has been in demand in Net Per Share,1952 4.77 recent years and continued growth in Sales, 1953 109,630,000 this field is expected not only in Sales, 1952 89,010,000 – this country but also abroad. Yale & 1arkeCRanie, 1951-19'54-4-9' 31 – Sowne bas .Bxit.ish, . m'an – subsidiaries. Canadian and GerCompletion of the modernization program will aid in in- A – Including 501 extra which has creasing profit margins and a higher been paid since 1951. level of earnings is anticipated. Prior to 1939, the lock and hardware business was the main source of revenue, but in the past fifteen years the materials 'handling division has become of increasing importance. It now accounts for 65 of volume and is largely responsible for the growth of sales from 17 million in 1939 to 109 million in 1953. The company is the largest factor in the electric lift truck field. These units are powered by electric motors driven by storage batteries. The gas powered truck was introduced in 1949 and the company now handles a complete line of electric, gasoline, diesel and propane powered industrial trucks and hoists. They vary in price from a hand hoist costing 22 to 65,000 ram trucks carrying 100,000 pound loads. They are marketed under the trade names of Yale', manufactured at the larger Yale Materials Handling Division at Philadelphia, and AutomatiC, manufactured at the Automatic Transporta- tion Division at Chicago. The company is one of the three leading manu- facturers of industrial fork lift trucks. Its main competitors are Tow- motor and Clark Equipment. Buda Company (now owned by Allis Chalmers) is also an important factor.. .. The manpower- shortage -during World War II gave impetus to the use of industrial lift trucks and high labor costs and the declining pool of young manpower over the next few years should be an additional growth factor in the materials handling industry. The potential demand for thiS type of labor-saving equipment is far from filled and should continue to expand. This is also true in Europe where the German and British sub- sidiaries are now manufacturing complete trucks. These two divisions, along with Canada, now account for 10 of sales. iThl memorandum I not to bl! construed mlly have an ,nteresl In some or all of based upon ,nformatlon believed relo/lbte IS iln offer or soliCitation of offers to the securities mentioned herein The but not necenarlly complete, 's not buy or sel! any see.,HI',el From me foregOing malenal has been prepMed guaranteed en ,!;,urate or f,al, and IS tonbcyttimUI5enteaWn daelasdtomntoat&tfeorCreo0closoIeIrIfoIarRnmdyeaptpieconHnlenenortnllyhIle,QrluoorfvIS . ,.. -2- The lock and hardware division should also add to earnings. A drastic reorganization in this division has taken place. Most of the high cost operations at Stamford, Connecticut, have been elimiated and two new plants are in operation at Lenoir City and Gallatin, Tennessee, and the plant at Salem, Virginia, has been enlarged. Ex- traordinary expenses incident-to this,moving programwere-over 1 million dollars in 1953. Locks and building hardware account for about 33 of sales. Another division, powdered metals, is now small (2 of sales) but could be of increasing importance. This division is concentrated at Franklin Park, Illinois, and has an interesting growth potential in a new field. Despite capital expenditures of over 24 million (38 per share) since 1947, financial position is good. Ratio of current assets to liabilities was 3.7 to 1 at the 1953 year-end and book value was 65.20 a share. ' Considering its growth prospects, the stock, which sold at a high of 62 in 1937 when sales were 18 million and at 61 in 1946 when sales were 40 million, does not appear overpriced at 45 with 1953 sales of 109 million. Due to decreased government purchases, first quarter earnings were only 71 compared with 1.14 in 1953. However, there should be some pick-ups in the final half. Improvement in profit margins ,in- creased efficlcncy due to modernization program and elimination of non-recurring expenses ,COUld result in earnings of 8 to 10 in the 1955-1956 period. The st-ock-has -a-strong technical pattern. 'The-ups-i(le p'otential – c, of the long 31-40 trading range of 1952-1953, plus the bettering of the 1951 high of 48, indicates a long term uptrend. There is some supply at 50-60 that may temporarily slow the advance, but the long term objective on my technical work is considerably above the 1946 high of 61. There is strong downside support at around the 40 level in the event of a general market decline. EDMUND W. TABELL' WALSTON & CO. –

Download PDF

Tabell’s Market Letter – July 09, 1954

Tabell’s Market Letter – July 09, 1954

Tabell's Market Letter - July 09, 1954
View Text Version (OCR)

't Walston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,h.dd) OFFICES CQASl TO COAST CONNECTEr. BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lETTER July 9,1954 The Dow-Jones industrial average during the past week ranged between a high of 343.20 and a low of 337.64. The rails also reached a new high at 115.26 as did the 65-stock average at 127.51 As I have mentioned before, I believe the market may be in need of a consolidation period and the averages may hold in a rather wide trading area. During this resting period, individual issues will most likely show extremely diverse action. While some of the recent leaders are consolidating, many other issues may continue to advance. Other issues may decline quite sharply but the number of such vulnerable patterns is extremely small. ,- ,- – Below is a- continuation of the review -of issues hI-my recommended-list GLIDDEN COMPANY (34) The stock has done comparatively little marketwise for a long time but appears to be slowly forming a base in the broad 38-28 range. Would continue to hold and buy on weakness for patient long term holding. HEWITT ROBINS (30) The upside penetration of the 14-29 trading range indi- cates a possible long term objective of 53-58. There is support at 28-26. An interesting long term holding with a high yield. IDAHO POWER (48) has a long term objective of 65-70 on my technical work. Its purchase is recommended for long term growth and gradually increased dividend payments. INLAND STEEL (..60-J was my original recommendation in );-t.l.e stee4rouR and has jec tiavdevainsce6d6ff-r6o5m, 'tt'hhe3,s6t-o4c0k alepv'ee'afr\sto, haighhi/genh;bJU.gfh,6. 0I1f (m4y. \Ai,'stmteyrUoPfS\iJdukn\ eob4- th BI esluiegvgeesttheds/ switching is still aI'nlaondd Sw'tieteclh.('ther/59) into/U. S. St,e'el (thn 48J. INTERNATIONAL PF-Ef\ (75) wa-s..lsugg,e-sted fpJ' purchase a4 (after adjusting for and the oih 10t,ock er issues d-Zider;P1'-JynasVeht-s'Uhside appeaTo offer better immediate-ro i 0 t p'e6ctyervn-te io.H..O.-'f'5'\ JOHNS MANVILLE (76) was originally recommended in the 63-60 area. The in- termediate term objective is 83 and the long term objective is 95. Advise continued retention. . – – –… ——– – – – – – – – – -.. -.& — – — JOY MANUFACTURING (33) has shown very poor market action recently. However, the long term pattern is interesting. See no signs of any immediate move but the yield is good and would continue to hold but considerable patience may be needed. KENNECOTT COPPER (85) was suggested for purchase at 63. At the present level of 85, the stock appears high enough. Would continue to hold but await a decline to the 80-75 level for additional purchases. LEHMAN CORP (30) . The upside penetration of the 32-36 range indicates a probable intermediate term 48-50. Buy on minor price declines. There is support at 38-36. MEAD CORP. (37) has advanced from the 23-28 range to the recent high of 37 3/4. Technical pattern suggests a further rise to 39-43. Would take profits in that area. MINNESOTA POWER & LIGHT (23) Price action may be slow but the stock should be held for long term growth and income. MONTANA POWER (35) The present upside potential is 38-40. There is support at 33-32. Buy on minor price declines for long term holding. NATIONAL GYPSUM (32) was originally recommended at around the 20 level. It has about reached its initial objective of 32-35 but the technical pattern suggests considerably higher levels over the longer term. i'Jould continue to hold and addto holdings on minor-price declines. – – NATIONAL LED (5J hasdvanced shply fm a recommended;lvel of 31 ttoime5'31m.ay\T',hbe ' upside obj,Bc'tivf\ Ike'cled\t91 fot.m/a Of 5'0-55 ha's h.w pattefn. beS.efng1g'es'lfcqseW9li.tCl'qinngsJlp-neptoiibt,hJ,e!,/'\ other/issues with better near term profit potentals. NEW YORK AIR BRAKE (19) has done little marketwise for the past year and there is no indication of any immediate move. May be retained for income by patient holders. EDMUND J. 'rABELL WALSTON & CO. — Next week you will receive a reprint of my article in the July 8th issue of the Commercial & Financial Chronicle entitled Stock Market at Mid-Year Coming Pause that Refreshes, instead of the regular letter. EViT

Download PDF

Tabell’s Market Letter – July 16, 1954

Tabell’s Market Letter – July 16, 1954

Tabell's Market Letter - July 16, 1954 page 1
Tabell's Market Letter - July 16, 1954 page 2
View Text Version (OCR)

a sharp decline despite the rapid long-term advancing phase. From advance we have witnessed over a techmcal approach, there seems the past nine months. I do believe, little likelihood of a major de however, that some pause or 00- cline in stock prices In 1954 For solidation is needed and that the the long-term Investor, I advise straight line advance In the av- retention of common stock equierages will be replaced by a wide ties that will ultImately benefit trading area in which mdividual from the continued long-term lssues will show extreme selec- growth of the country, ThiS, as tiVlty. I would expect that for the always, will require careful selecnext 6 to 18 months the Dow- tion not only as to quality but as Jones mdustrial averages will hold to price level. After the consohIn an area bounded roughly by datmg period has been completed, 350 and,300. DurIng this period, I expect a renewal of the advance many Issues could continue their WIth an ulhmate objective, III advance while others consolidate about 1960, of 450 to 500 under and form re-accumulatIon areas. normal market conditions and 600 ThIS in no way changes my or higher In a period of specula- thoughts that the market is in a tlve excess '., ,- 4 , f (USED AS MARKET LETTER ON JULY 16,1954) Reprinted Irom 17u1 COMMERCIAL and FINANCIAL CHRONICLE Thursday, July 8. 1954 Siock Markel at Mid-Year- Coming Paase That Refreshes By EDMUND w. TABELL General Partner, Walston & Co. Members N. Y. S. E. Market analyst, on criteria of earnings, dividends, comparative bond yields, and technical factors, maintains market is not vulnerable, despite recent advance. Mr. Tabell traces past divergent course of several groups of designated issues and predicts intensification of selectivity. Concludes while some period of pause and consolidation is required, the D-J Industrial Average even under normal speculative conditions will advance to the 450-500 level by 1960. My article entitled 1954-The seems to be little hkehhood of a Beginnmg of a New Bull Mar- major declme III the stock market ket/' published in the Jan 7, III 1954 The chances rather favor 1954 Issue of the Commercial a rise of about 25 from current and FInancial levels by the end of the year. ChronIcle, This will be the start of an ad- ended WIth vance that wIll gradually broaden the followmg out to include a larger segment paragraph of the market In the At the hme the artIcle was m a i n, 1954 written, the Dow-Jones IndustrIal should be a Average was around 280 At last good year for week's high of 338, the average the InvestOr had almost reached the 2;) ad- who contmues vance mark of 350 and had sur- to hold, and passed the mInImUm objectIve of buy, the com- 325 mentIoned ear 1 i e r m the mon stock Jan 7 artIcle. Also, thIS advance eqUIties that has been accomphshed by mid- WIll ulti- year rather than the end of 1954 mately bene- Has thiS sharp 83-pomt advance fIt from the Edmund W. Tabell from the September 1953 low of continued long-term growth ot 255 placed the market m a vul- the country. ThiS, as always, Will nerable pOSItion reqUIre careful selectIOn not only Admittedly the advance has as to quality but as to-pllce level been steep, but let us see how It FlOm a techmcal dPproach, there compares wIth the two other in- termediate term advances in the past five years For S1 of Earnings 1929 1930 For SI of Same Income Dividends S10 In Bonds 2990 1560 The Five-Year Pattern 1937 1660 1946 1680 22,20 2840 1075 90 00 The first rise started at 160 in Today 11 50 18,75 6,50 June, 1949 and carried to 230 in From a technical viewpoint, the June, 1950 before it was Inter- market does not appear vulnerrupted by the Korean outbreak able despite the sharp flse of the ThIS was a nse of 31 In 12 last nine months. However, it has months. The subsequent COrrec- gone a long way toward correcttion carried back to 195 or about ing the undervaluation that pre- 15. vailed in September, 1953 and The second rise started m July, may be in need of a rest or con- 1950 at 195 and by January, 1953 solidation before the advance is had reached 295. ThIS was a rise resumed. This applies particu- of about 51 in 30 months. The larly to mdivldual stocks, Many subsequent correction carried back have advanced sharply and have to 255 or 13. reached their upslde objectives. The present rise started in Sep- They do not appear too vulnerable tember, 1953 at 255 and has ad- but rather need a period of con- vanced to 338 or 32 in mne solidation or re-accumulation be- months. A 14 correctlOn would fore resuming the long-term up- bring the market back to 300 trend While this is occurring, Here is ho'w they compare many other issues that have not yet reached their upside objec- Subsequent tives may continue their advance. Datc- Advance Time Decline Shll other issues may continue to June t949-Junc 1950 31 12 mos 15 do little or nothing marketwise July 1950-Jan 1953 51 Sept 1953July 1954 32 30 mos 13 9 mos and still another group might decline sharply, although the num- It would appear that the present ber in this group appears rela- nse is out of line only in respect tively small. In other words, it to the time element. This could appears that the one way mar- be corrected by a consolidating ket of the past nine months may penod. be replaced by a wide tradmg Whlle the averages have nsen range with even more selectivity sharply, this does not apply to the than that witnessed in the recent general list of stocks A recent selective advance compilation showed that 65 of the listed stocks were still below Price Diversion Again theIr 1946 highs despite the fact that the industrIal average reached 338 as compared with a 1946 high of 213 As compared with previous high penods, the market, even at present advanced levels, does not appear vulnerable. The table below shows how much you paid for 1 of earnings and 1 of dIvidends in three perIods of stock market The market pattern I envision over the next year or, so may be very similar to that of the period between September, 1951 and September, 1953 when the averages held in roughly a 13 range between 295 and 255 but during which period individual issues followed extremely diverse price patterns. highs as compared with the pres- The price action during that ent and also how much you had Deriod could have been roughly to pay to get the same income broken down into four categories from common stocks as compared or groups and price action over with high-grade bonds Today's the foreseeable future may fol- figures are approximate; low about the same pattern. 2 I Group A mcluded many of examples of issues that advanced the growth issues that advanced during the 1951-1953 consolidat- sharply from 1949 to 1951 or 1952 mg period would include Boemg and then underwent a long period Bullard, C LT. Fmancial, Com' of consolidation before resuming merclal Credit, Flonda Power & their advance and reaching new LIght, Gillette, Gulf States Utili- high territory. Manv of the lead- tIes, Houston .Light & Powe'r, ers of the recent advance were in McGraw ElectrIC, NatIonal Dairy, this group. For ex.ample, duPont Seaboard Airline, Southern Rail- rose from a 1949 low of 42 to a way and Te)as Utilities. 1951 high of 102 and then spent approximately 28 months in the Issues Declining to New Lows 102-79 range in preparatIon for Group C would include those the recent rise to 143lh. As an- issues that declmed during the other example, Mmneapolis Hon- 1951-1953 penod and reached new eywell advanced from a 1949 low lows in 1954 Some have shown of 22 (adjusted) to a 1951 high certam signs of a possible change of 57 and then spent 16 months m trend recently. Just a few of in the 46-57 area before resuming these issues are American VIscose its advance to the recent high of from 78 to 31, Case from 36 to 15, 99;2 Mmnesota Mining advanced Celanese from 58 to 17, Electric from 17 (adjusted) in 1949 to 54 Storage Battery from 46 to 24, Na- m 1951 and spent some 16 months in the 39-49 range before resum- tIonal Distillers from Masonite from 36 to 17 3a6ndtoNe1\7 ing its uptrend to 70. National Jersey Zinc from 82 to 38. At the Lead advanced from a 1949 low of present moment, there are only a 9 (adjusted) to a 1951 high of 33 few issues with vulnerable patand then spent two years in the terns as compared with a rela33-26 area before resuming its tively large number in 1951-1952 uptrend to the recent high of 51th. Some Do-Nothing Issues Many other examples could be cited of issues that spent long 'Group D would include. those consolidating suming theIr periods before readvance. To men- issues that did little or nothing marketwise in the 1951-1953 pe- tion a few-International Paper riod and in some cases since 1949. National cash Register, Scott Some of the issues in the light Paper, Westinghouse Electric blue chip category have shown much better action since Septem- Continually Advancing Issues ber, 1953 and some have advanced Group B mcludes issues that to new high territory. To mentIon continued to advance While other a few-American Potash, Babcock Issues were consolidating during & Wilcox, Black & Decker, Cor- the 1951-1953 period For example, Carner Corp. advanced from nell Mead Dubilier, Cutler Corporation, Nati oHnaalmGmyper a 1951 low of 22 to a 1953 high of sum, Penn-Dixie Cement, Sham- 45 and has since continued its rock OIl, Sperry Corp. and Yale advance to the 1954 high of 62 & Towne. Other issues have done Continental Can advanced from little since reaching theIr 1951-, a 1951 low of 32 to a 1953 high of 1952 highs. Some of the chemicals 56 and has continued its advance lIke Dow and Monsanto and many to a recent hIgh of 71. Douglas of the oils are in this category advanced from a 1951 high of 36 Some of the potentIal advanCing and has continued its advance Issues of the next year or so may to 78. General Electric advanced be found in this group and in '.from a 1951 low of 18 (adjusted) Group C. to a 1953 high of 25 and has con- In conclusion, I do not belIeve tinued its advance to 48;2 Other that the market is vulnerable to

Download PDF

Tabell’s Market Letter – July 23, 1954

Tabell’s Market Letter – July 23, 1954

Tabell's Market Letter - July 23, 1954 page 1
Tabell's Market Letter - July 23, 1954 page 2
View Text Version (OCR)

Walston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADJNG STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Swot,ldl OFFICES COASl TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER , , July 23,1954 The market, as measured by the averages, moved over a wide range during the past week. However, it must be plain to almost every investor that the action of the averages means little or nothing except as a very broad measuring rOd. There are many issues that indicate considerably higher levels over the longer term and there are also a large number of issues that appear to be high enough. These indicated moves will undoubtedly takeplaceregardless of whether-the averages move up or'down–' ten points over the next two weeks. Attention should be concentrated on the action of individual stocks and not on the more or less meaningless moves of an average. Below is the completion of the review of the issues in my recommen .. ded list including a few that were inadvertently left out of alphabetical rotation. Also included is a new recommendation, Pan-American World Airways. I have mentioned this issue before in some of my wires and am now adding it to the recommended list due to its recent excellent technical action. GULF,MOBlLE & OHIO (33) was originally recommended in late May at around the 30 level. It has broken out of the long 27-31 range and has an up- side objective of 40-45. This may take considerable time as there is heavy supply at 33-37 that must be penetrated first. Continueto hold and buy on minor dips. INDUSTRIAL RAYON (48) has broken out of the 39-45 accumulation base to reach 49. The upside objective is'53 followed by a later 60-65. Continue to hold and buy on minor price dips. LOWENSTEIN (M) SONS (39) has been on my list for a long time. It was originally recommended in the 28-30 area and hasmoved up to a high of 40. Would'continue to hold as the objective is 45followed by a long term 55-60. MISSOURI-KANSAS-TEXAS,PFD.(65) has held in the 58-70 range since mid- 1952. The pattern suggests an ultimate upside breakout ,with a potential of O-IOO. PAN-AMERICAN WORLD AIRWAYS (14) has broken out of the seven-year old 8-13 trading range. The first upside objectiveis 17-19 followed by a long term 27-30. A very interesting long term purchase. PARKE, DAVIS & CO. (31) has done little marketwise. It may be building a base in the 31-37 range. It has an upside potential of 40-45 and downside support at 30-25. Action may be slow. PENN DIXIE CEMENT (55) has advanced over 100 since its original recom- mendation. It has reached its intermediate term objective, buttl1e long term indication is 73-80. Would continue to hold and buy on minor dips. PENNSYLVANIA SALT (49) is a long term growth investment. The 1951 high was 71. Has recently broken out of the 41-47 area to reach 50. The upside otential is 57-65. PFIZER (CRAS.) (32) appears to be forming a slow base pattern and pur- chases are suggested for patient holding. PITTSBURGH COKE & CHEMICAL (19) is an interesting low-priced specula- tion in the chemical field. The stock sold at 39 in 1951. Appears to 'be forming a hew base but patienc-e- maY-be-reqU1.red-. – – – . . ., PUBLIC SERVICE OF COLORADO (39) has moved up nicely and has reached its first upside objective but the long term indication is 46-48. Hold and buy on minor dec lines. . PULLMAN COMPANY (54) has 'a long term objective of 70-75 but there is some supply., that may slow action. Continue to hold and buy on minor declines. There is support at 50-48. RADIO CORP. (3 li 3/4) has moved into new high territory but still conti- nues to indicate higher levels over the longer term. The first upside objective is 35-36 followed by a later 43. TIm memorandum 11 not to be COMtrued as an offer or solicitation of offen to buy or set! any H!c.uhrltle From timedlo.lme Walston f fraf;tn!therloi may have an In teres! In some or all of the securities mentioned herem The foreqo,ng material as een prepare …,. us as a rna e d based upon InformatIOn believed reltable but not necessarily compleh!, IS not guranteea as accur;lle or final, and IS nol tntended to foreclose Indepenent Inquiry !' -2- REPUBLIC STEEL (61) was originally recommended at around 52 in April. It has reached a high of 61 1/2. The longer,term objective is 72-78 so would continue holdin and buy on minor price declines. ROBERTSHAW FULTON (26) was recommended at 21 in May. It has broken- out of the long 17-23 area in which it had held since 1950. A high of 27 has been reached. The upside objective is 35-40. Hold and buy on minor price –decines — -c.- , — – -. – – – – – —'c'— ST. JOSEPH LEAD (38) has a good support area at 37-35 and the upside potential appears to be 47-50 .. Buy on dips. . ' SHAMROCK OIL (46) has reacted from a high of 51. There is good support at 44-42. Long term upside potential is 65-75. Would add to holdings on minor dips. SIMMONS CO. (36) has built up a potentially strong base pattern. The upside penetration of the 28-35 range indicates an intermediate term 47-52 with a much higher long term objective. There is some supply at 37-40 that may temporarily slow action. , SYLVANIA ELECTRIC (37) recently reached a new high for the move at 40. The next hurdle is the 1952 high of 41. Continue to hold and buy on minor corrections. The upside potential is 60-64 followed by higher levels later. UNION BAG & PAPER (58) appears to be behind the other paper issues. The recent upside penetration of the 38-50 range indicates a long term 70-80. Buy on minor price dips. UNION CARBIDE (83) Despite the fact that the stock has moved from a recommended level of 63 to 89, still consider it an outstanding growth stock. May need some consolidation but would continue to hold and buy on minor price dips. – UNION OIL-( 45) wasat avery' strong support level at the r-ecent low of 43. Consider the stock outstandingly attractive. The long term poten- tial is 60-62 followed by a possible 70-75. . UNITED FRUIT (50) appears to be building a very strong potential base pattern and should be an interesting long term holding for price appreciation and income. Hold and buy on minor price declines. U. S. STEEL (55) was recommended at the 45-46 level in May. Its upside objective is 60-65. Would continue to hold and buy on minor price de- clines. ' VICTOR CHEMICAL (34) has an excellent long term growth pattern. Has broken out of the long 24-32 range to reach a high of 35. The first objective is 42-44 followed by a possible 48-52. WESTERN AUTO SUPPLY (52) is an exce11ent holding for yield and gradual price appreciation. The 1946 high was 90. There is strong support around 45. YALE & TOWNE (47) has a most intersting long term pattern. Recently reached a high of 49. There is some supply at around present levels that may slow action, but there is strong support not far below the market. Buy on all minor dips. The long term potential is 65 followed by a possible 90. – – -, — – – —–. —;.- — —- I am leaving on a short vacation so there will be no letter next week. Publication will be resumed on August 6th. EDMUND W. TABELL WALSTON & CO.

Download PDF