Tabell’s Market Letter – December 02, 1955

Walston &- Co. Inc MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND' COMMODlTY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,Id) OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER December 2J 1955 The market held in a narrow trading area during most of the week with only a few individual issues showing much price movement in either direction. Normal December action would indicate a continuation of ir- regularity and cross currents until the later part of the month. Tax loss selling has been of no great importance as yet, but could increase mode rately from her'e on. Any price declines should meet support in the 470- 465 area. normal technical action should call for rallying tenden- c ies later in the month, carrying over into January. — On such an advance, the Dow-Jones industrial average might reach the area. 1,s for distributional top 'I .belieye…… 'n6t -yet -be-'compl'eted.' Ir-it proceeds -a-long–'- the present course of slowly expanding tops and bottoms, it would be ex- pected that the present advancing phase would continue to a new high in the 510-520 zone. This should be the final phase of the advance and be followed by either a decline of at least intermediate term proportiDns or the alternative of a long consolidation period – similar to 1951-1953. Under the circumstances I believe it advisable to continue the policy ad- vocated in this letter of taking profits on strength, as individual issues reach their upside objectives. I advise long term capital appreciation accounts to build a 25 to 30 liquid reserve on strength into early January. Would not disturb long term investment accounts. Listed below are the issues remaining in my recommended list. All of these issues still indicate higher levels over the longer term, – despite the quite sizeable advances already witnessed. Continued reten- tion is advised. Robertshaw-Fulton, recommended at 21 and now selling at 28, is dropped from the list. Present Price Frice Recom. Yield Advice J..lleghany Corp. . AItegheny-Ludlum hllied Stores 9 – 0,. 61 3 3/4 – -473- 38- 5.0 Objective 12-17 . Sup .at 87 Ob-Ject. 85';Support at,-60-5S-, -Object. 98.Support at 55-53. American Chain 42 30-33 6.0 Hold for income.Sup.at Amer.Potash B 107 40 2.3 Object.12&-150.Support at 95-(\0. Assoc.Dry Goods 35 26 5.1 at 32-30 Barber Oil 56 59 5.3 Object.80-115.Support at -50-4c . Black & Decker Calgary & Edmonton 36 18 Ib – 2.8 Object.-68 .. Support at 32-30. 0.6 Buy for long term specuration Celanese 20 2.5 Object.34.Support at 20-18. Chain Belt 56 30-35 5.6 Object.78.Support at 50-.'t8. Cities Service 58 38 4.1 Object.81. Support at 52-5'0. Coca COra 125 122 4.0 Object.20&.Support at 125-lr5 Colgate-Palm. 57 60 4.4 Object.73-100.Support at 54-5 . Cornell Dubilier 35 21-22 6.8 Hold for income.Support at 3C Cutler Hammer 77 57' 4.7 Object.120-140.Support at 65-( Dow Chemical 56 38-40 1.8 Hold for growth.Support at-52 -'0. Dresser Ind. 51 33 5.0 Object.70-85.Support at Eagle Picher 37 22 4.9 Object .61-7-7 .Support at 36-33 Gen'l Rwy.Signal 66 59- 4.5 Object.140-150.Support at 60-) Hall Printing 23 1617 6.1 Hold for income.Support -at 20 Hewitt-Robins , Joy Mfg. 37 . 25-30 5.4 Object.85;-5upport at 35-33.– 23 -5.4 — Object.'37'75.Support Magma Copper 107 75 – Object.200.Support at 90. Monsanto Chem. 47 31 2.1 Hold for growth.Support at–43 O. Mont.Dakota Util. 27 26 3.7 Object.45-60.Support at 26-24 Pacific Petrol. 12 11- – Buy as long term speculaticm. Pan Amer.World h Raybestos-Man. 18 11-13 4.5 Object.27-45.Support at i,fi 42 6.1 Hold for i-ncome.Support at-53 1. Simmons Co. .'\8 36 6.3 Object.7196.Support at 4340 Sinclair Oil 57 46 – 5.4. Object.65-89.Support at-53-50 United Fruit 54 47-50 5.6 Object.86.Support at 53-52.- Auto 30 25 5.3 Hold for income. Support 28-27 Yale & Towne .merican Can 67 45 48 46 Object.1050Support at 60-58 . 4 ' nh ;,,.1-. hn,hC; .c,. ,,- I, -,0 market letter 19 not, and under no Til to be coratrued …. an offer to HI or contallJ.E'.1 here1n 1'1 not I(uaranteeri as to accuracy or and the turnlShmg by Wailtun & Co, Inc All nprellllonll of opinion are sub,)ed to ehan..e- Wlthout notll!e have an Intere-.t In the mentIoned Tba market letter III intended and news and nut a complete .nalnll. AdditIOnal InIormatlOD With raped. to any lecunbes lOiLcltation to buy any HCUrltIe! The mfornatwn- u .4er IS to beeonstlued .Q…'1, R representatIOn IrtI. . . Director or St.oC'kholder thereof, may .. Informal commentary on day to day market Mil g… Wnl13hed upon requeat.. WN 3111