Tabell’s Market Letter – August 12, 1955

r r; Walston &Co. ;-,' MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEAOING STOCK AND COMMOOllY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,Id) OFfiCES COAST TO COAST COINECTfC BY DIRECT PRIVATE WIRE SYSTEf.1 TABELL'S MARKET LEnER August 12, 1955 The downside penetration of the trading shelves of 471-455 in the industrials and 163-154 in the rails pushed the averages down to lows of and 150.14. A week-end rally brought about an advance to 458.99 and 154.69 on Friday. Volume indications were unfavorable however, with trading, on the advance at the slowest pace of the year. There is heavy overhead supply in both averages and I would not expect the recovery to carry much above present levels. It would appear that the intermediate trend is established as down and that rallies should be used to lighten trading accounts. There is no need to disturb long term investment accounts. Only moderate distributional tops have been formed and at last week's lows about half of the antiCipated decline has been reached. In view of the current level of the market and the number of issues included, we have decided to cut down our recommended list rather drastically. The new list, which is set out below, contains only those issues which we consider suitable for new purchase at levels close to the current market. \'Ie have attempted in each case to indicate buying levels in the of further market weakness. The fact that an issue has been eliminated does not mean that it should necessarily be sold and it may in many cases be held for long term investment purposes. However, it would probably be wise to convert issues in which there is a large profit into cash with intent to switch into issues in the list below, when indicated buying levels are reached. There is more than 450 points profit vs. 8 pOints loss in the issues eliminated from the list Frice Recom. Alleghany Corp. 3-3/4 i-.llegheny Ludlum 33-30 i .. llied Stores 38- Amer. Chain 30-33 hmer.Potash B 40 o.ssoc. Dry Goods 26 Barber Oil 59 Black & Decker Calgary & Ed. 39 16 Celanese Chain Belt 30-35 Cities Service 38 Coca Cola 122 Colgate Palm. 60- Cornell Dubilier 21-22 Cutler Hammer 57- Dow Chemical 38-40 Dresser Ind. Eagle Picher Co. 2323 – Hall P'Iinting Hewitt-Robins 25-30 Joy Mfg. 47 Magma Copper 75 Monsanto Chemical 31 Montana-Dakota Util. 26 Pacific Petroleum 11 Pan-Amer.World f.ir 11-13 Raybestos Man. 42 Robertshaw-Fulton 21 Simmons Co. 36 Sinclair Oil 46- United Fruit 47-50 Hestern huto 25 Yale & Towne 45 Present F'rice 10 55 5490 85 34 57 67 16 24 52 52 131 54 32 74 52 43 35 22 36 54 91 43 28 11 19 53 29 47 55 56 28 65 Yield – 4.4 51 6.3 2.6 5.3 3.5 3-;-0 – 2.2 4.8 3.9 3.8 4.6 6.3 4.0 1.9 5.8 5.1 6.4 5.6 4-.7 2.3 3.4 0.8 4.2 5.8 52 45.79 5.3 5.7 4.6 icdvice Hold for 12, then 17.Buy at 8. Hold for 85. Buy at Hold for 98. Buy at 57-53.- Hold for income. Buy at 38-35. Hold for 120. Buy at 78-75. Hold for 45-65. Buy at 31-30. Hold for 80-115.-Buyat-57-55. Hold for 135. Buy at 62-58. Hold for 36. Buy at 15-;- Hold for 34. Buy at 22-20. Hold Hold for for long term 81. Buy at 7580. –B4ur y. at Hold for 200. Buy at 130-125. Hold for 73-100. Buy at 54 -50. .Hold for income.Buy at 27-25. Hold for 120-140. Buy at 65-6c Hold for growth. Buy at 51-49. Hold for 70-85. Buy at 41-39.- Hold for 61 to 77. Buy at 33-3 Hold for income. Buy av 19. Hold for 85.- Buy at 35-33. Hold for 75-150. Buy at 50-48. Hold for 200. Buy at Hold for growth. Buy at Hold for 45-60. Buy at 28-25. Buy as long-term speculation. Hold for 27-45. Buy at 19-1-8. Hold for ineome. Buy at 49-47. Hold for Buy at 28-26. Hold for 71-96. Buy at 43-40. Hold for 65-89. Buy a t–55-52 . Hold for 86. Buy at 55-52.- Hold for income.Buy at 28-27. Hold for 105. Buy at 60. EDMUND H. Ti.BELL H.LSTON & CO.