Tabell’s Market Letter – July 01, 1955

Walston &Co. t.4EMBERS NEW YORK STOCIC EXCHANGE ANO OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISw,,,,,I,,d I OFFICES COAST TO COAST CO4NECTEC BY DIRECT PRIVATE WIRE SYSTEt.4 TABELL'S MARKET LETTER july 1, -1955 The stock market, as measured by the Dow-Jones industrial average, reached new high territory during the past week at 456.11. However, the other two averages failed to confirm the advance with the rails unable to better the June 23rd high of 166.10 and the utilities still below the – high of 65.75 reached four months ago. The failure of the utility aver- age to move ahead with the industrials is particularly disturbing. In the past, the utility average has usually topped out several months before the general market. The inability of the utility average to reach new high territory, with a declining rate of volume and of ad- vatJcing issues…..in markeT; leads to-fhe'corfcluslon thatfne market may be slowly losing its upside momentum despite the attainment of new highs by the industrial average. This action has caused me to be somewhat csutious about the market over the intermediate term despite the fact that the long term outlook remains distinctly favorable. It is entirely possible, however, that some correction or consolidation may occur before the market moves much above the recent highs in the averages. – Many individual issues continue to indicate higher levels over the longer term and in some cases, for the nearer term also. A review of the issues in my recommended list follows. \le have dropped three issues from the list. BALTIMORE & OHIO, originally recommended at 23-25, -was dropped because at the recent high of 50 3/4 it had reached its 50-55 upside objective. It is suggested that profits-be taken in the other two issues. RAYTHEON, originally recommended at 10-12, is now selling at around 22 and has been as high as 25. WESTERN MARYLND, originally recommended at 18-25, has dropped sharply from 44 to 34 because of court disapproval of the re- capitalization plan designed to satisfy accumulated dividend arrears on the first preferred. This may delay the plan for a long while and .price action may. would profits on of the list should be held. They all indicate considerably higher for the longer term as noted below. In the event of a general market de- cline, they would meet support at the buy levels mentioned below. It is not at all certain that these buying levels will ever be reached before the upside objectives are attained. I'.llsl!hany c OJ'P , Lud.Steel Allied Stores Allis Chalmers Amer. Chain hmer. Encaustic T. i.mer. Potash B Amer. Radiator Amer. Tel & Tel Assoc. Dry Goods Barber Oil Black & Decker Blaw-Knox . Bucyrus Erie Burroughs Add. Calgary & Ed. Celanese Certainteed Chain Belt Cities Service City Products Coca Cola Colgate Palm. Combustion Eng. Consolo Nat'l Gas Price Recom., '3 3'/1 33-30 384548 30-33 7 40 14-16 150 26 59 3922-23 15-17 1631-37 15 30-35 38 13272 60 45 25-27 Present Price -Yield 1,0 58 61 35 4.9 75 5.3 41 6.1 14 5.0 79 2.5 27 4.7 183 4.9 3630 4.8 3.6 70 25 – 24.89 36 56 34 279 18 24 2.1 29 4.3 46 5.4 54 3.7 32 6.0 137 3.6 58 52 69 4.3 34 4.4 Advice HQld ror 12,then 17.BUY at 8. Hold for 85.Buy at 50-48. Hold for 98. Buy at 5753. Hold for 90. Buy at 6660. Hold for 587 Buy at 38-35 Hold 17-19. – Hold for 10. Buy 75-70. Hold for 45. Buy at 22.- Hold for 175-173. Hold for at 30. Hold for 80-115.Buy at 58-54. Hold. for 135. Buy 62-58 Hold for lo-ng term 52.Buy 22f- O. Hold for 47-50.Buy 35-33. Hold for long term 45.Buy 30. Hold for 36. Buy at 15. Hold for 34. Buy at 20. Hold for long term 49. Hold for long term78. Buy at 6. Hold for 81.Buy at 51-48. Buy for income. – Hold for 200. Buy at 125-r20. Hold for 73-100.Buy at 55-5C. Hold for 82-92. Buy at Hold for. 50-52. Buy at 30. 1 – Price Recom. Present Price -2- Yield ,.dvice Continental Motors 10 10 Corn Products 2J 29 Cornell Dubilier 21-22 33 Cutler Hammer 5r 72 Dow Chemical 38-40 58 ser-'OIndus-tr4.es 33—. . Eagle Picher Co. 35 Fansteel Metal. 22-24 30 General Mills 69 77 Great North.Rwy. 30 42 Greer Hydraulics 12 14 Hall Printing 1617 22 Hewitt-Robins 25-30 36 Industrial Rayon 45 58 Int. Tel & Tel 18 28 Jaeger Machine 27 32 Joy Manufacturing 47 53 Lion Oil 35 52 Magma Copper 75 84 Merck & Co. 20 24 Mission Corp. 38 42 M-K-T, pfd. 55 90 Chemical 93 142 Montana-Dakota Uti1. 26- 29 New York hir Brake 1822 25 New York Central 20-21 45 Northern .Pacific .,, 59 Otis Elevator -. 39 70 Pacific Petroleum 11 . 12 Pan-Amer.World Air. 11-13 20 23- 43 Parke-Davis 3235 44 Penn. Salt 45-48 53 Pfizer, Chas. 28-32 49 Pullman 51 64 Haybestos Man. 42 53 Robertshaw Fulton 21 33 St.Joseph Lead 40 53 Simmons Co. 36 43 Sinclair Oil 46 59 Sylvania Electric 35 48 Tungsol Electric 28 31 Union Carbide 63- 100 Union Oil of Cal. 4550 55 United Fruit 47-50 59 United Mer. & Mfgrs. 19 22 United Shoe Mach. 50- 49 o ,Vanadium 44 Warren Petroleum 25-28 48 Western Auto 25- 28 Western Pacific 55-60 69 Yale & Towne 45 70 6.0 Hold for 18. Buy 10-8.- 4.1 Hold for 447 Buy at 27-24. 6.1 Hold for 41-54. Buy at 27-25. 4.2 1.7 Hold for 120-140. Buy at 60-58. Hold for Buy at Ho Idfor . -Buy,at.,JU,-39-;- 14..37 Hold for 61 to 77. Buy-at 32-30. Hold for 49.-Buy at 26-24. 39 Hold for 110-125. Buy at 65. 572 Hold for 48. Buy at 35. Hold for speculation. Hold for 29-41. Buy at 19. Hold for 85. Buy at Hold for 79. Buy at 49-47. Hold for 31-33. Buy at 24. Hold for 4052. Buy at 30-27. Hold for 75-150. Buy at 48-4'5. Hold for 90. Buy at Hold for 200. Buy at 75-70. Hold for 34. Buy at 22. Hold for 56. Buy at 37-35. 6.6 Hold for 124. Buy at 90-85. 1.8 Hold for growth. Buy at 130-120. 3.4 Hold for 45-60. Buy at 28-25. 6.2 Hold for 34. Buy at 4.4 Hold for 70c Buy at 42-39.- 3. fo.r95;1l6…..B.uy at L7-72. 4.5- – . 0.8 Buy as long term speculation. 4.0 Hold for 27-45. Buy at-20-18. 4.7 Hold for 57.- Buy at 38-36. 3.2 Hold for 52-56. Buy at 43-40. 3.5 Hold for 69. Buy at 48-45. 2.8 Hold for Buy at 45. 6.3 Hold for Buy at 57-52. 6.6 Hold for 72-97. Buy at 5.6 Hold for 4046. Buy at 2825. 5.7 Hold for 57-95. Buy at 4944. 5.8 Hold for 7196. Buy at 4.4 Hold for 6589. Buy at 4.2 Hold for 65-68. Buy at 44-41. 4.0 Hold for 45. Buy at 28. 2.5 Hold for Buy at 9-90. 4.2 Hold for 76-95. Buy at 50-45. 5.5 4.5 Hold Hold for for 86. Buy at 26-36. Buy a5t5-529.. 5.1 Hold for 100. Buy at 45-40. 3.2 HC!ld for.,.57. 4.2 Hold for long term 70-r5.Buy 40. 5.7 Hold for 36. Buy at 26-25. 4.3 Hold for 104. Buy at 63-60. 4.3 Hold for 105. Buy at 60. EDMUND W. TABELL VlALSTON & CO.