Viewing Month: July 1956

Tabell’s Market Letter – July 06, 1956

Tabell’s Market Letter – July 06, 1956

Tabell's Market Letter - July 06, 1956
View Text Version (OCR)

Walston &- Co.———Inc.– M embeTS New Y07'k Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Sw,'ml.nd OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lETTER July.6, 1956 PANHANDLE EASTERN PIPE LINE CO. Statistics Current Market Current Dividend Current Yield 92 3.00 3.3 When good news or good earnings are expected from a company in the midst of a bull market,the general tendency is for the price Funded Debt-Parent 138 801,000 of the stock to advance rather discount.lng the goodkI'e- 4 Cum.Pfd.Stock (100 par) 119,880 shs. in advance. When the pro- Common Stock 3 379 332 shs Jected finally takes place, often the stock will hold in a narrow Operating Revenues-1956-E 110,000,000 Operating Revenues-1955 98,800,000 Earnings per Share-1956-E Earned per Share-1955 6.50 5.01 Market Range-1956-53 94 3/4 – 64 1/2 trading range for a long period afterward, digesting the advance in price. Upon further improvement in the status of the company, this narrow trading range often forms a springboard for a new major advance in price. Such will be the case, we believe, with Panhandle East- ern Pipe Line. In early 1953, Panhandle made a new high at 88. In the summer of 1953 the stock reacted sharply, making a low of 65. The stock then held within these limits for three years, and only last Monday reached a new high. . . From a technical viewpoint, upside implications of the three-year base are very interesting rver the very long term, and even the in- . termediate tives are consider,ably….abolfe present levels. The three-year consolidating area must now be considered as support, vlith strong resistance to any reaction being shoVin at 85-80. Panhandle's original rise to 88 was due, in great part, to fundamentals, as Vias the subsequent trading range in which the stock held. The company's operating revenues rose from 36 million in 1949 to 91 million in 1952 and 95 million in 1953 as the company undertook a huge expansion program. For the next two years, revenues continued to stabilize at 87 million in 1954 and 98 million in 1955. During this time, however, demand increased, leading to a 50 increase in capacity. Most of this expansion program was completed in 1955 and 1956 earnings are just beginning to show the results. Thus the first quarter of 1956 showed operating revenues of almost 30 million versus 26 million and per-share earnings of 1.69 versus 1.41 as compared to the like 1955 quarter. Further earnings gains are in prospect for the remainder of the year and a minimum expectation for the full year would be in the neighborhood of 6.50 The current dividend, 3.00, could well be liberalized. 111\ ,', , The bulk of Panhandle's earnings comes from its natural gas trans- mission system which runs northeast from the Texas panhandle to the -Detroit area, serv-ing the -way..Trunkline – Company, 96.8 owned, operates a pipeline running along the South Texas coast and thence Northward to connect with Panhandle's main line at Decatur, Illinois. Although the pip'eline system provides the main source of revenue, a much larger long-term potential is provided by Panhandle's own huge gas and oil reserves. The company owns mineral rights on some 821,000 acres in the Anadarko basin of Texas,Oklahoma, Kansas and Colorado with a large part of this acreage in the rich Pan- handle and Hugoton gas fields. Gas reserves at the end of 1955 were 4 trillion cubic feet. Valued at the very conservative figure of 5/ per mcf these reserves have a total value of 200 million or about 59 per Panhandle share. Thus, at current prices, only 33.00 is being paid for a transmission company with better than 6 annual earnings capacity ThiS market lettcr IS not and under no Circumstances IS to be as, nn olTer to 'ell or 0. solicItation to buy any securities referred to herein The informatIon contained herem IS not g'uaranteed .IS to accuracy or completeness and the furnl,hlnJ.! thereof is not, and under no Circumstances IS to bcconstrucd us, 11 representation hy \'lalston & Co Inc All exprcsslOns of opmlOn are subject to change Without notice ' nlston & Co, Inc, or any Officer, Dlrectol or Stockholder thereof, may hn\e nn Interest Iii the SCCUritles mentIOned herem ThiS market Jetter IS Intended find prescnted meleIy as a general, IllfurmaI commellt,lry on dn to news lind not us a complete annbsis AddItlOnailllformatlon With respect to nny sleurlue; referred to herem III be furnished upon request ,,,

Download PDF

Tabell’s Market Letter – July 13, 1956

Tabell’s Market Letter – July 13, 1956

Tabell's Market Letter - July 13, 1956
View Text Version (OCR)

— NEW YORK Wdlston &Co. Inc. Members New Y Qj'Ie Stock EXcha,nge PHILADELPHIA LOS ANGELES SAN FRANC.SCO BASLE ISw,t,l.nd) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER July 13, 1956 On June 1, 1956 this letter published a list of 23 stocks with recommend ed buying ranges, stating that the issues would be placed on our recommended list when the buying ranges mentioned were reached. Since that time 12 of th 23 stocks reached the indicated buying levels and were forthwith added to th , list. A brief review on each of the 12 issues added follows. AMER.ADA PETROLEUM Price Recmmended 103-99 Current Price 108 Amerada has the finest record in the Western Hemisphere in new oil dis- covery and its reserve position is believed to be one of the best of any of the major oil companies. The technical pattern is excellent,indicating 150- 160 followed by possible higher levels over the longer term. EASTERN AIR LINES Price Recommended 47-45 Current Price 51 ERL has one of the best growth records in the airline industry. Company follows the most conservative depreciation practices of any airline and earn ings therefore are often understated in comparison with other lines. The technical pattern indicates 75 over the intermediate term with good support at 45-42. INTERNATIONAL PETROLEUM Price Recommended 34-32 Current Price 36 Company is 83 owned by Standard Oil of N.J. and is one of the leading factors in South American oil production. Exploration is continually being carried on in eru,Colombia and Venezuela. Stock has an intermediate term objective of 48. There is always the possibility of Jersey's taking over the minority interest in the company. JOHNS MANVILLE Price Recommended 50-48 Current Price 53 JM, recently split two for one,has broken out of a trading range in which the stock held since 1955,indicating a possible 65-70 with good sup- port at 50-48. The company's most important product,asbestos, is consistly finding new sources in industrial applications. KAISER ALUMINUM Price Recommended 46-44 Current Price 59 Kaiser has an upside potential of 72,with good Gupport at 55-50. Over the long term production capacity is expected to expand at a greater rate than the aluminum industry as a whole and the stock appears to be an ex- cellent representation in a growth field. NATIONAL DISTILLERS Price Recommended 24-23 Current Price 26 National is finally beginning to show profits from its large chemical investment.Intermediate term objective is 37-40 followed by a long term 56 with some supply being encountered between current levels and 37. There is support at 23-21. NORFOLK & WESTERN RVlY. Price Recommended 64-62 Current Price 70 Norfolk is a highly efficient railroad serving the coal-rich ocahon- tas territory. Vlith the resurgence of bituminous coal as a fuel, company is expected to receive increasing freight traffic. The long term objective is 95 with support now at 67-65. PITTSTON CO. rice'Recommended 45-43 Current Price 55 It is possible that Pittston's 1956 earnings will approach the 6.00 level vs. 3.60. The company is a diversified holding operation which has in coal, natural gas and intransportation. McBEE Price Recommended 31-29 Current Price 35 Royal is one of the largest producers of typewriters and appears to have interesting potentials based on other forms of office equipment. Selling at around ten times estimated 1956 earnings,the stock would appear to be one of the cheapest participations in the growing office equipment . field. Technical objective is 56 with support at 30-28. SUNRAY-MID-CONTINENT Price Recommended 25-24 Current Price 25 The merger of Sunray, essentially a producer, and Mid-Continent, a refiner and marketer, is expected to produce better operating results than were shown by the two separately. Stock has an intermediate term ob- jective of 29 followed by leng term 40,with support close to current levels. ELECTRIC Price Recommended 49-47 Current Price 53 Sylvania was reviewed in our June 22, 1956 market letter. CORP. Price Recommended 50-49 Current Price 51 Tennessee is well on the way toward re-establishing itself as a major factor in the chemical industry. With near term outlook good,based on pros- pects of improved sales of triple superphosphate fertilizer,and the longer term outlook enhanced by growing sales to chemical and industrial companies, stock at current levels. Long term Dbjective is 80 with S ''ff..fi market letter is not, no circumstances 18 to be construed as, an offer to sell or rderred to herein, The mformatlOn contaIned herem IS not guaranteed as to accuracy or completeness and the furnishing by Walston & Co Inc All expresSIOns of opinion arc Bubject to change Without notace. Wal ra1),0 clrcctfu'stances IS to be construed as, a representatIon .1JIll'q . nljf'f1ct!NOJlrector or Stockholder thereof, mil.) have an Interest the securitIes mentlOned herem This market letter is intended and presente mere y as a general, c!ommentar)' on day to day market 'L- —'-news and not as a complete analyslB Additional mformatlon With respect to any securities referred to herem Will be furnished upon reque!t WN 301

Download PDF

Tabell’s Market Letter – July 20, 1956

Tabell’s Market Letter – July 20, 1956

Tabell's Market Letter - July 20, 1956 page 1
Tabell's Market Letter - July 20, 1956 page 2
View Text Version (OCR)

… . , NEW YORK Walston &Co. – – – – – I n c . Members New York Stock Exchange PHlLAOELPHIA LOS ANGELES SAN FRANCISCO OFFICES COAST TO COAST CONNECTED BY DIRECT PRIYATE WIRE BASLE iSw,I..d) TABELL'S MARKET LEnER July 20, 1956 The market, as has been expected, is running into a good deal of overhead resistance in the 510-520 area on the Dow-Jones industrial aver- age. Indicative of this resistance, my intermediate term technical indi- cator registered a sell signal at Wednesday'-s close. Support for any de- cline should be registered in the broad 490-480 area on the industrials and around 163-160 in the rails. As usual, action will continue to be focused on individual stocks rather than on the averages. The attention of the investor, if any weakness develops over the next few weeks, should be devoted to selecting issues for new purchase on the aforementioned '–weakness. six months continues-, –issues–which – are attractive from a fundamental and technical point of view will decline far less than the general market and any minor setbacks should be used for the purchase of recommended stocks. As noted in last week's letter, twelve stocks were added to my recommended list. In order to maintain the list at a workable size, I have found it necessary to eliminate eight issues which have advanced rather sharply since the time of their original recommendation. It is to be emphasizedthat removal from the list does not in any way constitute a sell recommendation. All of the issues eliminated have longer term objectives considerably above their current prices and may be retained in long term capital appreciation accounts. However, in most cases intermediate term objectives have been reached and the issues eliminated appear in need of some consolidation before any advance is resumed. New purchases should be selected from among the issues being retained in the list. The eight issues eliminated, together with their original Lt lslnJ&restj.ng-.t9 note that all 8000 . investment, -1000. in each one of these issues at the time of their original recommendation, would now be worth 16,557. American Potash Barber Oil Chain Belt Cities Service Cutler Hammer Dow Chemical Dresser Ind. Sinclair Oil Price Recommended 16 59 30 38 57 39 33 46 Present Price 49 78 70 71 110 79 83 69 I am also transferring two issues, SIMMONS and MONTANA-DhKOTA UTILITIES, from the regular recommended list to the income list. This list is designed for investors who in- come commensurate with quality, plus slow, long term capital apprecia- tion. The new recommended list is now as follows Present Price Alleghany Corp. 3/8 Allegheny Ludlum Amerada Petroleum 113 Black &- Decker 48 Butler Bros. 26 Calgary & Edmonton 25 Chicago Corp. 26 Colgate 56 Cornell-Dubilier 27 rice Recommended 3 3/4 16 103 19 23 16 24 60 21 Yield – 3.6 1.8 2.5 5.4 0.4 3.8 5.4 7.0 BuyHold. Support at 8. 38-7. 105-95. Buy-Hold.Support BuyHold.Support 24-23. 55-50. Buy-Hold.Support 25-24. – , —- ——————————————————- '-.1 Present Price Eagre – -42'''- Eastern Airlines 50 Food Machinery 73 General Rwy Signal 85 Hewitt-Robins 41 Internat'l Pete 36 Johns Manville 56 Joy Mfg. 58 Kaiser Alum. 65 Magma Copper 114 Masonite 48 Monsanto Chem. 42 National Dist. 26 Norfolk & West. Pacific Pete. 20 Pan-Amero World A 20 Panhandle East.Pipe 99 Pittston Co 54 Royal McBet 36 Sunray Mid-Cont. 28 Sylvania Elec. 52 Tennessee Corp -3 Western Pacific 76 West'house Air Br 36 Yale & Towne 32 -2- Price Recommended Yield Advice 47 51 59 25 34 50 23 46 75 41 31 64 11 12 45 31 25 49 50–. 73 33 18 – -4 ;3–.;.BuyHoldSuppert,4038-. 2.0 Buy-Hold. Support 2.7 Support 65-63. 3.5 Buy-Ho'ld. Support 4.9 Support 38-36. 3.6 Support 33-31. 3.8 BuyHold. Support 2.8 Buy-Hold. Support 52-50. 1.-4 Hold. Support 52-48. – BuyHold.Support 10595. 3.2 BuyHold. Support 4240. 2.4 BuyHold. Support 41-39. 3.8 BuyHold. Support at-23. 5.2 BuyHold. Support 65-62. BuyHold. Support 4.0 Support 18-17. 3.0 BuyHold. Support 2.2 BuyHold. Support 3.9 Support 4.3 Support 3.8 Support 4947. – 5. 3.9 BuyHold. Support 3.3 Support 30-27. 4.7 Buy-Hold. Support at 27. awt;amb EDMUND W. TABELL WALSTON & CO. INC. , , f ,I t I l , t J-

Download PDF

Tabell’s Market Letter – July 27, 1956

Tabell’s Market Letter – July 27, 1956

Tabell's Market Letter - July 27, 1956
View Text Version (OCR)

— NEW YORK -W–a-lIsntocn.-&-C-o. Members New YOTk Stock Exchange PHILADELPHIA' LOS ANGELES SAN FRANCISCO BASLE (Sw,hl.nd) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TAB Ell'S MARKET LEnER July 27, 1956 The overhead supply at the April and May tops of 524.7 and 519.80 halted the Dow-Jones industrial average at Thursday's intra-day high of 517.62. The presence of this overhead supply was evidenced by the fact that for nine successive trading days the industrial average closed in a range bounded by 515.85 and 512.98. News of the nationalization of the Suez Canal brought some nervous profit taking into Friday's session and the average reacted to a low of 507.85. It is only normal to expect some technical correction at this pOint. The industrial average rallied from the late May low of 463.85 to 517.62, an advance of over 53 points in about two month&. h normal retracement -of a third-,to –a- half o-f-this—a.dvance to the 500-490 area would .be in line with standard technical procedure. There is a strong support zone at 490480 that shoulj halt any normal technical correction. It would need news developments of a drastically adverse nature to push the market much below this support level. From a longer term fundamental and technical point of view, there is no change in the generally constructive pattern. The possible price action of an average consisting of a small number of leading companiee is in no way indicative of the possible price action of individual issues. However, I have just completed my.semi-annual technical appraisal of the price action of over a thousand listed issues. These will be available for your perusal at Walston & Co. offices sometime during the next week. In it are the possible advance potentials in the event of a generally favorable market and the possible decline potentials in the event of a generally unfavorable market. The stocks that have readable patterns indicate an upside potential that averages 57.1. downside potential is 17.4. Translating this into terms of the Dow-Jones industrial average, the projection of the present pattern indicates a possible potential of 790-800 on the upside as against a downside potential of 430. The projected potentials are, of course, for the next several years. It is interesting to note that the possible downside potential is at just about the October low point reached after the announcement of President Eisen- hower 1 an-d isrelatlvely'Sma-L1–when–'C'ompared -to -the-p-o-s-si-b-le – upside potential. It would appear that, at the worst, the market might hold in the broad 525-430 range for a longer period of time. However, if this happens, the accumulation base might be widened sufficiently to in- dicate even a higher upside potential. As mentioned in a previous letter, the next six months or so may be the last opportunity to buy stocks in the broad 525-430 level prior to an advance to a higher plateau. This price pattern will not apply to every individual issue. The selectivity of the past several years will continue and even grow stronger in the future. Owning the right securities will be much more important than the price action of various averages. At the moment, favorable relative strength action is being shown by the following groups Airlines, Cements, Drugs, Natural Gas, Machinery, Metallurgical, Steel, Rail Equip- ment, selected Rails, as well as individual issues in other groups. Most of these groups are already represented in our recommended list, but would add tbe following to the list in the event of near term market weak- ness. Friday's Close Buyinl1; Range Carrier Corp. Crucible Steel Illinois Central Kansas City Nerthern Pacific enn-Dixie Cement Rayonier Scott Paper United Airlines 57 55 3/8 65 86-l/2-41 40 1/8 41 7/8 72 1/4 41 3/4 57-55 64-62 –8583 40-38 39-37 40–38 40-38 This replaces our buying list of June 1st. EDMUND VI.TABELL \!UlLSTON & CO. INC. This market letter not. Ilnd under no is to be cOn'ltruN as, an ofTer tn (';cll or 11 soltCltntion to buy any sccunhC' referred to herean The miormlltJon cont,lInl.(1 hcrem IS not gunrnnteed us to accuracy or comflleteness and the thcreuf I'! nM, und under no Circumstances IS to be construed as, a representatiOll hy \Vah'ton & Co Inc Ail e'ltJ)rcsslOns of otHniOn are subJect to change Ithoui notice 'Wnlstnn & Co, Inc, or .my Officer, Director or Stockholdcr thereof, may nn mterest. the 'lccurlilC' menthllled herem ThiS market letter IS lIltende.\ I\IHI presented mrreiy liS n gcnernl. m!ormal commentary on day to day market news and not II'! u complete anUlysl9 Additional mrorm.J.tlOn WIth respcct 1u uny beCIlnheb rcfell ed to herem Will be furnished upon request WN 301 — – -l(ui.lii.W.W,.',i adila, i,

Download PDF