Viewing Month: August 1956

Tabell’s Market Letter – August 06, 1956

Tabell’s Market Letter – August 06, 1956

Tabell's Market Letter - August 06, 1956
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r Walston &Co, Inc. Members New York Stock Exchange f NEW YORK PHILADELPHIA' LOS ANGELES SAN FRANCISCO BASLE (SwH',I.nd) OFfiCES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER August 6, 1956 ,1 The Dow-Jones industrial average reached a new high for the MayAugust advance at 523.33. This is just a shade below the MarchApril high of 524.37. The rail average continues to lag, however, and is over twelve pOints below the May high of 182.54 Continue to expect selective price action by individual stocks regardless of the movement of the averages. The folrowing fo'ur- issUes on our–re-comrrfended l.is-t…. stillappears attractive for sizeable price appreciation over the longer term. . GENERAL RAILWAY SIGNAL (84) neported sharply increased earnings for the six months and for the quarter ended June 30, Earnings were at 3.62 per common share for the first half as eA RNiNG- compared with 1.55 per share in the like 1955 period. were 2.5 million this year, as against 1.0 million in the 1955 period. Second quarter results were even more impressive, as the company showed 1.98 per share versus 93 . In addition, it is understood that backlog has increased considerably over the year earlier period. With railway carriers stepping up their programs for modernization/ sales outlook over both the near and long terms is extremely Irigh0. Earnings for the full year 1956 should amount to better than 8 per share. A substantial increase beyond this is expected or 1957. The long term technical objective is 150 with strong support encountered just under current levels. The earnings of JOY MANUFACTURING (60) also made very interesting reading. Both net and sales set new reCO!dS during the quarter ended June 30 with arnings at 1.17 versus 93. Sales were 34.5 million as against millIon. oy s fiscal year ends Sep- Etesmtibmerate3s0, aarend thnaett ffoisrcathleyneianre emaronnitnhgs s towtiallllebdetter theperti6c.o5m0mloenv.sehl are. -and t'he oT -tfie company told' snare- holders that bookings and remain at Good levels'. They reported that the company's Turbo Dynamic Division at Buffalo is now working in recently completed new facilities and that substantial Government orders have been received involving products of that division. The stock ccntinues to have an objective of 75 for the intermediate term. ' MAGMA COPPER (114) has not yet released its six months' earnings figures. However, it is understood that earnings for the second quarter will begin to reflect production at the new San Mnuel Mine. The extent to which the true earnirgpower of the new mine will be reflected depends on the amount of start-up expense and accelerated amortization which will be writter, off. However, with San Manuel now in production, the shares appear exceedingly attractive. allowing for a further decline in of copper, earning power under full production should better 20 per share and with an improve- ment in the world copper it could well reach 30 per share. With bash row frem San Manuel Gbw coming in, prospects are brighter for a re-financing of million Government loan, the conditions of which prohibit of dividends by Magma. The technical ob- jective is well over 200 with support at 105-100. WESTERN PACIFIC RAILWAY (76) still up–a; one of the more attractive rails. The road is progressing well with expansion, and although earnings have been held down in the earlier part of the year, due to flood damage, it is expected that full year results will better the 5.91 shown in 1955. The 75 quarterly dividend could well be liberalized later in the year. Long term technical objective is 150, and there is support at 75 70. EDMUND W. TABELL WALSTON & CO. INC. ed IT t II r 11 soliCitation to buy any sccunhcs referred to herein The information Thlh market letter IS not, and under no CITcumstnnce! IS to be constl'u as, an 0 e, 0 Be 0 untaltled herCln IS not lIunr.lllteed liS to nc!urncy or completeness nd thc n 0&t . and Co under Inc no or CIrcumstances IS to be construed as, a representation any OffIcer Director or Stockholder thereof, may by V.'llistnn & Co, lnc All C'I(presslOns of Opinion merely as commentary on day to day hAve ,.n mterest news and not as m the a com SecUritIes plete nnaly mentlllnded her sls Ad Itlonu , ,,n In , or , ma mar Ion e WI th , 'prelet \0 an'- securities referred to herem Will be furnIshed upon request.

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Tabell’s Market Letter – August 10, 1956

Tabell’s Market Letter – August 10, 1956

Tabell's Market Letter - August 10, 1956
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— – – – – – Wdlston &- Co. Inc. M embm's New YOj'k Stock EXchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (SwH,laod) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM this letter expressed the opinion that the genera stock market, as measured by the Dow-Jones industrial average, would most likely pivot around the 490 level, with moves limited to 40 or 50 points above or below 490, for a long period of time. Nothing new has occurred to change that opinion substantially. In fact, the average, with the brief exception of the Eisenhower illness decline to 433.19 in October, has held in an area bounded roughly by 525 and 450 since June 1955. This is a range of 3 points above 490 and 40 points below. I would expect this range to continue r some further time. After all, there is no'particular reason, as far as earn ings are concerned, for the average to move very far in either direction.Ear ings on the thirty stocks-in the Dow'Jones industria1-avera-gejump-ed'-fromth 28.05 in 1954 to 35.43 in 1955. Earnings for 1956 should not be much above 37.00 for the industrial average. Therefore, it would seem logical to expec the market to pivot around the 490 level for the balance of the year. When the news is cheerful and speculative confidence high, the market will undoub edly hold in an area bounded roughly by 40 or so pOints above 490. When the news is temporarily unfavorable and speculative confidence uncertain, the rna ket may drop to the lower level bounded roughly by 40 or so points below 490 This trading plateau could rise in 1957 because competent sources estimate possible earnings of 40 or over on the Dow-Jones industrial average. This i in line with my opinion that while the averages may continue to hold for som time longer in the broad trading area in which they have held for over a yea , this may be the last opportunity to buy the general market in this year-old Rrice range prior to an advance to a higher plateau. As far as individual stocks are concerned, the pattern has been, and will continue to be, different from that of the averages. While aveJage earnings in 1956 will show little change from 1955, individual companies wiJl shl considerable change. In companies where earnings are rislng, there has bepn also a sharp advance in stock prices. In companies wHere there has been a de- cline in earnings, the result has been a market decline. This is only normal and desirable and is the reason why the action of individual stocks is much – more important than-,-the tne-averag-es-Tn-thTsnighlyselective ana – – more intelligent market whose main motivating power is furnished by profess- ional institutional managers rather than short term speCUlators. The market continues to meet overhead resistance. For some ten trading in late July, the resistance was at 517. In the first ten or so trading pays of ccugust the supply was encountered at around the 524 level which was area of the March-April high of 524.37. The high for the first week of was 523.33. The high for the past week was 523.24. Friday's close was For twenty-one trading days the industrial average has ranged between roughly 524 and 507. The direction of the penetration of this trading area jepends largely on the short term trading interpretation of coming news event upside potential is probably 540-550 and the downside potential about again dependent on the state of short term speculative confidence. decline to the level mentioned above should be used to add to holdings In our recommended list which was'lastpublished in my letter of July 20th. rhree issues in my buy list of July 27th reached buying levels and are added o the list. They are Illinois Central in the 64-62 area, enn-Dixie Cement the 39-37 range and Rayonier in the 40-38 area. If any further weakness develops, would also buy the following issues a' Levels specified. — – Friday'-s- Buy- – – Close Level – — Friday's- Buy Close LJ2vel Bristol Myers 37 1/4 35-34 Northern Natl Gas 49 1/2 48-47 Carborundum 41 1/2 40-39 Northern Pacific 41 5/8 40-39 Carrier Corp. Crucible Steel 60 1/8 58 3/8 58-57 Richfield Oil u. S. Steel 76 1/4 75-74 64 3/4 62-60 I Gen'l Dynamics (new) 49 3/8 47-46 I EDMUND W.TABELL WALSTON & CO. INC Ii Errata In last week's letter under heading of General Railway Signal, the I, sentence in the fourth line starting Sales were 2.5 million this year I should read ..;rr.ings were 2.5 million this year. E1,rr he rl IT t II or a salleltatIon to buy an securlhes referred to herem The mformatlOn lnfThl'l market letter 1; not, lind un tier no circumstancc'l IS tOI t;s, 0 contamed herem IS not guarnnteed as to accuracy or etencssn c 0 tst'\r\e-'oaflsIStonnot&. nnd Co under Inc no or Circumstances IS to be construed as. n representation any Ofhcer, Dlrcctor or Stockholder thereof. may I, by ';lti'ton & en, Inc All expressIOn, of opinIOn Jeetktot WI t merely liS J(eneral, mformul cummentary on (illY to dll f!1urkct securltlcs referred to hel em \\111 be furlllshed upon request WN 301 II I! ,I, ',' II II. I'i'ii, ………1 .of , ' ill tlmill G

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Tabell’s Market Letter – August 15, 1956

Tabell’s Market Letter – August 15, 1956

Tabell's Market Letter - August 15, 1956 page 1
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I' – , J I Walston &Co. Inc. — MEMBERS NEW YORK StOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO rSwiherJad) OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM EDMUND W. TABELL August 15, 1956 I INSTITTUhTIeOrNe AiLs no c ange in our thinking that the market will remain for quite some time in a broad trading area bounded roughly by fifty points each side of the 490 level and that the action of individual groups and issues will be of much more importance than the action of the averages. The following analysis attempts to cover the technical action of over forty groups FAVORfBLE ACTION ;IR CONDITIONING. Relative strength improving and group average is close tq reaching a new high Since the 1954-1956 trading area. Carrier Corp. (59) appears to be an attractive issue in the group. – Relative strength has been in an uptrend since 1953 and still continues strong. However, the advance has been rapid and some consoli- dation appears needed before the long term advance is resumed. BUSINESS M..CHINES – Relative strength still is above average some consolidation appears needed. Royal McBee (31) has a favorable pattern. CEMENT – Very favorable long term patterns have been built up after a lengthy period of consolidation. All issues in the group are attractive, but especially like Alpha Portland (40) , General Portland (67), Marquette Cement (35) and Penn-Dixie (39) DRUG – This group continues to show favorable action although some in- dividuaTssues are slow. Bristol-Myers (37) has an outstandingly favorable technical pattern. Merck & Co. (33), Parke-Davis (50) and Pfizer (46) conti- nue to look attractive. ELECTRIC EQUIPMENT – While there-are a few weak situations in this group like Westinghouse and Robertshaw-Fulton, the balance of the group are showing good relative strength action. InclUded in the good acting section are Beckman Instruments (35), Emerson Electric (35), General Electric (64) and Sperry Rand (26) GAS – ThlS is an outstandingly attractive group. After three years of consolidation, the group appears to be breaking out on the upside. J.lmost al issues in the group appear attractive but Panhandle Eastern (97) and Norther Natural Gas (49) appear most attractive. f,S a more speculative issue, Chicag Corp. (27), has appeal. Mf.CHINERY – This group has had above average price action since 1953 and good relative strength continues. However, some consolidation appears needed in some issues after the sharp price advance. Blaw-Knox (38), Joy Mfg.(61), Link Belt (69), Mesta Machine (60) and Yale & Towne (32) still appear attractive for the longer term. MINING & SMELTING – Longer term prospects for this group are very fa- vorable, particularly in nickel and copper section. Lead and zinc pattern is less certain but could improve. issues with good technical patterns ar American Smelting (55), Anaconda (84 , Cerro-de-Pasco (74, Eagle-Picher Co. (42 ), International Nickel (109, Kennecott (136) and Magma Copper ( 120) . OILS – Favorable relative strength action continues. Some of the inter national oils may need some consolidation, however. There is good downside support in all issues and the longer term patterns are favorable. The most attractive issues at the moment include j,merada Corp. (118), A.tlantic Re- fining (46), Mission Corp. (45), Phillips Petroleum (55), Pure Oil (46), Richfield Oi.l (76)t Standard Oil of Indiana (64), Sunray-Midcontinent (29). PAPER – The rend has been upward in this group since late 1953 and there is no change in relative strength action. However, it is probable that some consolidation is needed for some time longer 'in order to build up new re-accumulation areas. Scott Paper (72) , which has held in a narrow trading area for over a year, appears attractive at around present levels. EQUIPMENT – The favorable trends which have been in effect for over a year still continue. Three of the more attractive issues are American Steel Foundries (49), General Railway Signal (87) and Westinghouse f..ir Brake (34 ) STEEL – Recent technical action has been very impressive and the steels have become one of the most interesting groups for intermediate and, longer term price appreciation. Most issues in the group appear attractive. My favorites include Allegheny Ludlum (46), Crucible Steel (59) and U.S. Steel (65). UTILITIES '- Price action may be slow but the slow uptrend still re- -mains in effect. Like parti-cularly companies in the northwest territory. – Th,s memo(ilndum is not to be conlltrued as an offer or SOIIClt1tIO of offers to buy or stll anv securitlu From time to lime & Co. or any pO!lrtner thNeof, may hve !In Interest In some or lilt! of the securities mentioned hlllrltln The foregOlnq mhHl,,1 has been prillpated bV ul S matter of Infotmallon only II IS baU1d upon Informaj'()n believed reliable but not necessarily complete, is not qUafolnfeed u 4CCUrlilie or final, and is noi ,nfellded to foreclose Independenf ,nquifY ..- , al -2- MIXED ACTION AIRCRAFT – Relative strength improving. Action of indivi- dual issues in the group very mixed.Believe best holdings for long appreciation are General D1namics (49) and North American Aviation (91). As a speculation, Glenn-Martin 33) has appeal. – Continue to hold in the year-old trading area. Timing will be of utmost importance in this group. Relative strength has not yet improved and further patience may be required but group has very interesting price apprecia- tion prospects.American Airlines (24), Eastern Airlines (54), Pan hmerican- World Airways (lb) and United Airlines (40) all have good potential patterns. AUTOMOBILE EQUIPMENT – A very mixed group with a combination of a few good and quite a few poor patterns. On the favorable side are Borg Warner (47) Federal MOBUl Bower (40), Thompson Products (64) and Timken Roller BearinR (84j. BOIL ING SUPFLIES – 1. few issues have favorable -patterns but there are also quite a number showing uncertain or unfavorable action. Best acting issues include Johns-Manville (54), Masonite Corp. (46), National Lead (120), U.S. Gypsum (73) and U. S. Plywood (47). CHEMICALS – Price action is quite mixed here. The sulphur group shows very poor action as do most of the agricultural chemicals. Most issues in the group, however, are static.Best acting issues include Columbian Carbon (53), Hooker Electrochemical (48), Pennsylvania Salt (60)and Union Carbide \129). American ctanamid Dow (77) have good longer term patterns but appear in need o consolidation.— COAL – Patterns are becoming a bit mixed in this group. Relative price action continues good but in many cases upside objectives have been reached and a rest appears needed. ELECTRONICS – All of the television issues show poor patterns with no sign of' any immediate change. On the other hand, the broadcasting companies like American Broadcasting-Paramount (31) and Columbia Broadcasting (30) con- tinue to show good action. The most outstanding issue in the group, .however, is Sylvania EJectric (54) with excellent relative strength action and a good general technical pattern. FOOD CHAINS – Only average price action indicated here. American Stores (54), Grand Onion (36), Kroger (51) and Safeway (57) appear most attractive. FOOD – Here again only average'action is expected. No issue appears out- standingly attractive except Stokely-Van Camp (22) as a speculation. GLASS CONTAINERS – Relative price action for most \If the group appears good,but in need 01' a resting period. Owens Illinois (80) still appears at- tractively priced and could higher. INVESTMENT COMPANIES – ;\s expected, these issues will follow the action of the general market. No issue particularly outstanding. RAILS – While patterns in this group are very mixed,there appears to be a minimum of downside risk in most situations.Best patterns are in northwest rails and coals. Among the attractive issues are Denver,Rio Grande (42) Great Northern (42), Illinois Central (63), Kansas City Southern (86), Louisville & Nashville (lOl),Norfolk & Western (70),Northern Pacific (41),Western Pac. (76). RETAIL Clli,IN – Relative strength in this group has been very disappoint- ing and there is no evidence of any immediate change. Best potentials appear in the department store group. Would avoid the variety chain stores whose patterns are unrfarmly unfavorable. – Some further time may be needed to consolidate after the sharp advances of the past several years,but the basic patterns of most issues remain favorable. Firestone (89) shows the best near term action. Hewitt-Robins (40) has a very attractive long term patter.n. SOAP & VEGETABLE IL – Recent action has been poor and casts considerable doubt on the ability of this group to make much headway. Vlould avoid until the pattern clarifies. SOFT DRINK – While the longer term patterns appear favorable, there are no indications of any immediate move and funds might be employed to better advantage in-other groups. SUG!',R – Recent relative strength patterns have shown improv;ement. I-Jould confine holdings to domestic beet sugar companies rather than off-shore companies. TIN CANS – Very mixed action in group with Continental Can advancing while rest of the group has remained static. Action of hmerican Can (45) could improve and stock appea-rs attractive at present levels. – Price action of this group has been poor for a long time but is slowly showing signs of improvement. Patience may be required but with yields attractive the group has merit for long term holding. The following groups continue to show unfavorable action and should be avoided ;'.UTOMOBILES, BAKING, BRASS, FARM MACHINERY, FERTILIZER, FINANCE COMANIES, GOLD, LIQUOR, MEAT PACKING, MOVIES, TEXTILE. EDMUND W. & CO. INC.

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Tabell’s Market Letter – August 17, 1956

Tabell’s Market Letter – August 17, 1956

Tabell's Market Letter - August 17, 1956
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,, Walston &Co. – – – – I n c . – Membe,'s New Y01'k Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE ISw;t,Id I OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER August 17,1956 Despite worthwhile moves in individual issues,the main bulk of the market continues to move aimlessly back and forth in the trading area in which it has held for over a month. This price action is best typified by the price movement of the Dow-Jones 65-Stock average which is a combination of the 30 industrials, 20 rails and 15 utilities. Since early July, and for a total of twenty-four trading -days, this average has held in a narrow area bounded by 185 and 181. The 65-stock average held in a similar trading area for a two-month trading area from mid-March to mid-May. At that time, the range was 179-184. It is this supply stock that the market is endeavoring to absorb at the present time. Whether ur not it will succeed in so dOing,is still problematical. From a technical viewpoint, ability to reach 186 on increased volume would probably indicate 197. A decline to 179 on volume would probably indicate 169. Friday's close was 181.65. The downside breakout of the March-May 179-184 range culminated in a late May low of 167. The direction of the next move will probably be motivated by shorter term news developments. ALLEGHENY LUDLUM STEEL (53), at Friday's close was up 5 7/8 pOints from the opening on Wednesday morning due to a highly favorable and unanti- cipated announcement concerning Titanium Metals Corporation, jOintly with National Lead. In the first earnings statement ever released by Tita- nium, the subsidiary reported that it earned 5,205,000 after taxes. At this rate, 1.39 per share of annual earnings would be applicable to Allegheny Ludlum. However, it was announced that plans are under way to increase out- put of titanium sponge by almost half and to almost double ingot output.Thus a conservative estimate of 2 per share earnings may be applicable to AG in the future, in addition to the income from its own stainless steel business which netted 4.12 per common share in 1955. MAGMA COPPER (119) released its six months earnings figures some ten days ago and while the 4.16 six-month net was considerably ahead of last year's 2.98, it is felt that this figure .does not nearly begin to show the true earning power of the company. According to the company figures, some 57 million pounds of copper were produced in the six months ended June 30, 1956 In the comparable 1955 period, the old Magma mine had produced some 26 pounds, thus leading to the estimate that the new San Manuel development con tributed some 31 million pounds. Since San Manuel's annual rate, when it is brought to full capacity, will be 140 million pounds annually, it can be seen that the new development will in the future exert a considerably great- er effect on earnings. In addition, it will be noted that during the six months ended June 30th only 38 million pounds of the 57 million poung out- put were sold due to the temporary oversupply of copper. Thus, sales could have been more than 50 higher. The company expects that full San Manuel production will be reached around the end of the year. Two new developments of importance to stockholders of PAN AMERICP.N- WORLD AIRWAYS (18 5/8) were released during the week. The first of these was the disappointing announcement that Northeast Airlines, rather than Pan American, had been certified by-the Civil Aeronautics Board to be the third airline on the lucrative Boston-New York-Miami route. Original estimates of however, have never taken into account any, income to be earned from liiami service and we continue to feel that the company develop sub- stantial new earning power over the next two years with or without the Miami run. Indeed, some doubt has been cast on the ability of Northeast to fully handle the Miami traffic and there is always the outside possi- bility that PN may be certified as a fourth carrier as the traffic on the route increases. Shortly after the Miami announcement, PN announced its six months earnings which soared to 971 a share from 751 a share in the- 1955 period. Operating revenues were up 21 to 132 million and ex- genses rose only 18.5, thus doubling net before taxes. Since PN should the most favorable results during the third quarter when the European bUSiness is heaviest, it appears that our original earnings estimate Jf 2.25 per share for 1956 is within the realm of probability. Further ex- Jansion in revenues, coupled with good cost control, could lead to an earn- ings level of better than 3.00 in 1957. EDMUND vi. TABELL ,WTamb WALSTON &CO.INC. This market letter IS not nnd under no circumstances IS to he con!\trued as, aT offer to sell or a solicitation to buy any referred to herein The lnfol Allherelll is nut Jf,'unrantccr3 Il to !1ccuracy or and the thctcof is not. Rcrid ujTIfler no C1TcuomNlInce,;S Lotbl' h Walstoll & Co Inc of opinlOll are subject to ehallge Without nutlce ,,'alston & 0, ne, or lIny lcer, Irec or or an mtercst s(!Cunlli.'S menllOned herem. ThiS market letter IS mtended and llresenlcd merely as a J.cner.ll, mformlll WN'arket on d.IY to daY 301 and not us a complete aml.lysis AdditIOnal mformatlOl\ With rCl;.pect to any b(!CurllJC; refel I,d to h'reln Will be furnllhc-d upon reques .

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Tabell’s Market Letter – August 24, 1956

Tabell’s Market Letter – August 24, 1956

Tabell's Market Letter - August 24, 1956
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.' &- Co .Walston—-Inc. Members New York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Sw;t,.dd) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM , TABELL'S MARKET LEnER August 24, 1956 The month-old trading area between roughly 525 and 510 in the Dow-Jone industrial average was finally broken by a downside penetration to 500.84 on ruesday. The volume of trading was moderate on both the decline and subse- quent recovery to 510.77 on Friday,. The industrial average is now wedged in between a heavy overhead supply area and two areas of demand. The overhead supply is at 510-525, which the market failed to penetrate on several occa- sions since the first attempt in April. On the downside, there are tvlO clear ly defined support areas. The first support area is at 490-480 and the secon at 470-460. It would appear, as we predicted at the beginning of the year, that the average will continue to hold in a wide trading area for another sixmollths..,or,longerp.r.ior to ..a .generalmove ever, as I have continually stressed,such a framework leaves plenty of scope for wide moves in individual issues regardless of the lethargy of the averages. Best results will continue to be obtained by concentration on the act- ion of individual issues rather than on a general market pattern. The market uncertainty of the past week has been caused mainly by con- cern over the money market and the decline in bond prices. The demand for money for normal business purposes,plus the sums needed to finance the huge capital expansion program has exceeded the supply and the Federal Reserve Board has tried to slow down the pace of the debt build-up. As our economy continues to grow, the money supply will have to increase also and inflationary pressures will continue. It is the purpose of the F.R.B. to hold down the price of the advance to a normal rate rather than have the economy experience a wide swing in one direction followed by a more or less drastic correction. This requires a skillful hand, but so far our financial authorities have done a good job. Despite the advance in the general market and the low yield basis on many growth issues are selJing, there are still many issues that have interesting long term prospects and are still available at prices to show an above average yield. Recently, this letter started a recommendation list of issues of this type and have occasionally added issues from my regular rec,ommended—.list. I haye, called this Inc ome a!ldLoDgTermApRr,e,ciation recommendations. All the issues in the list have about the same character- istics of (1) an above average yield when quality is considered, (2) defensive patterns with a seemingly relatively small downside potential, and (3),attractive long term appreciation prospects. The list follows – Price Yield Price Yield Stores p,merican Can I-\-merican Chain Goods Bros. r.olgate Palm, live rornell Dubi.lier 51 5.9 44 4.5 53 4.7 30 6.0 24 5.8 114 4.4 53 6.6 29 5.5 Hall Printing Montana-Dak.Util.' Norfolk & Western Raybestos-Man. Simmons Co. United Fruit Western Auto S 24 26 69 57 53 49 31 5.8 3.8 5.4 5.3 5.7 6.1 5.2 My recommended list for Capital Appreciation will be reviewed in next week's letter. Several issues reached buying levels during the weakness of Lhe past week. They are NORTHERN NATURAL GAS (48-47),NORTHERN PACIFIC (40-35) KICHFIELD OIL (75-74)and SCOTT PAPER (70-68). \IIould also add the following issues to the Capital Appreciation list periods of market weakness. The buy recommendations below cancel thOSE '', '-'-', ,—-'–, c- Friday's Buying Friday's Buying Close Range Close Range Bell & Howell Bristol Myers Carborundum Carrier Corp. Columbian Carbon Crucible Steel 40 1/2 36 1/2 43 1/8 60 1/2 50 3/4 61 1/2 39-37 37-35 42-40 60-58 50 60-58 Fansteel 47 Gen'l Dynamics(new)51 3/4 Minerals & Chern. 33 1/4 Su.peSrr.y -Rand Steel 25 7/8 64 1/2 EDMUND vI. TABELL vlALSTON & CO. INC. 45-44 50-48 32-30 25- 24 60-58 Thl'l mnrhct il'ttcr IS not. lind under no ClrcumstnnCcllS to he construed as, an offer to ell or a !\oilcitation to bu' any securities referred to herem The informatIon contluned herem IS not gunrantC(!d as to aCCurncy or completcness nnrl the thereof IS not, and under nu elreumstmees IS to be construed aI;, a representation Iby Walston & Co, Inc All expreSSlOnQ of OlllfllOn nre ;ubJcct to change v.ithout notice \Valston & Co, Inc., or any Officer, Director or Stockholder thereof, may have nn mtcrclt In the securltlC!l mentIOned herem. 'fhIS market letter lfltcnded and presented mcrei). as a general, lIlformal eommentary on Jay to Jay rrnrkgt neWb lIMa not as u complete analYSIS, AalhtlQnal IIlfl)rmatlOn With rClmect. to n-ny SCCUrJtJeS referred to herein Will be upon request ' li 3 1 '- . ——. 11. ii'''h..,aa,.,., iiL…Wii.ii.lii3TLi..;& . .rmn.. . . . 'i1tii ilL . .ift

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Tabell’s Market Letter – August 31, 1956

Tabell’s Market Letter – August 31, 1956

Tabell's Market Letter - August 31, 1956 page 1
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NEW YORK — Walston &Co. – – – – – – – – I n c . – – Memben New York Stock Exchange PHILADELPHIA' LOS ANGELES SAN FRANCISCO BASLE (Sw;t,leod) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER August 31, 1956 At the week's intra-day low of 492.19 the Dow-Jones industrial average was near the first support area of 490-480. My technical indicator, which registered a sell signal in late July, has not yet entered oversold territory but is very close to doing so and thereby getting into a positior to register a buy signal. It would appear from the evidence at hand at the moment, that the buy signal be given somewhere in the first sup- port area of 490-480 rather than in the second demand area of 470-460. The next week or so should furnish the answer. -, ' -A'll-crf the-above fits into the that this -letter has stressed since the first of the year namely, that the market, as measured by the averages, will continue to hold in a broad trading area for all of 1956 and probably part of 1957 before advancing to a new and higher price plateau. In other words, my work indicates neither a broad advance nor a broad decline but a market in which individual issues will show excellent price action. For instance, the industrial average at the week's low was close to the 490 level which was the 3eptember high prior to the Eisenhower heart attack. The average has returned to the level of almost a year ago,but witness the action of three issues that this letter was continually recommending Approx. Sept.1955 High Close Aug.31, 1956 Dow-Jones Industrials Allegheny Ludlum Dresser Industries Joy Manufacturing 490 30 48 28 502.04 52 3/4 86 3/4 61 Listed below are the issues now in my recommended list for Capital Appreciation. This is a list for longer term holding, not necessarily shor,L term trading. SomeJssues-have ,been-,inthelist time and others have been recently added on the present price weakness. Present Price Alleghany Corp. Ludlum, Amerada Petroleum Black & Decker 8 1/2 53 109 49 Bristol Myers 36 Calgary & Edmonton 30 Carborundum Corp. 50 Carrier Corp. Chicago Corp. Columbian Carbon 59 25 50 Crucible Steel 61 Eagle Picher 40 Eastern Airlines Fansteel Food Machinery 70 Gen' 1 Dynamic s (New) 51 Gen'l Rwy. Signa'l– Hewitt-Robins 38 Illinois Central 61 Intern'l Nickel 106 Intern'l Petroleum 37 Johns Manville Joy Manufacturing 55 61 Kaiser Aluminum 63 Kansas City 30uth. 82 Price Recom. 3 3/4 16 103 19 37-35 16 42-40 60-58 24 50 60-58 22 47 45-44 51 50-48 59 25 64-62 90 3J 50 23 46 85-83 Yield 3.1 1.8 2.8 4.4 0.3 3.3 4.1 4.0 4.8 4.9 4.5 1.9 2.2 2.9 4.0 35 5.3 5.7 3.5 3.7 3.6 3.0 1.4 5.0 Advice Buy-Hold. Support at 8. Buy-Held. Support 49-47. Buy-Hold. Support 105-100. Hold.Upside potential 55-60. Buy. Supp ort 36 – 34 Buy-Hold. Support 29-28. Buy. Support 42-40. Buy. Support 60-58. Buy. Support 24. Buy. Support 50-48. Buy. Support 58-56. Buy-Hold. Supp ort 40 – 39 Buy-Hold. Support 52-50. Buy. Support 44-42. Buy-Hold. Support 69-65. Buy. Support 49-47. Buy-HolB. Support 85-82- 1 Buy-Hold. Support 38-36. Buy-Hold. Support 60-58. Buy-Hold. Support 100-95. Buy. Support 35-34. Buy-Hold. Support 50-48. Buy-Hold. Support 58-55. Buy-Hold. Support 60-55. Buy.Hold. Support 79-77 ThIS market letter IS not nn.1 under no CLfCllmgiunccs to be construed as, un offer to) sell or a sohcitlltLon to buy Iln sccufilles referred to herein The Iflformat!on contained herem 111 not g'unrantet!d to accuracy or and the furmshllll! thereof IS not, and under no Circumstances 19 to be construed as, a represen/ut!on by Walston & Co Inc All eXpr(!SSlOnll of opmiOn arc subJect to change wlthout notice \Valston & Co. lnc. or any Officer. DIrector or Stockholder thereo , may have nn mterest the seCUrltlC'S mentIOned hrem. ThiS market letter IS Intended and merely as II. general, mformal commentary on day to dny newq and not as a complete anal)SI'!. AddItIOnal mformatlOn With respect to an securities referred to hereIn \\111 be furmshed upon request I' I I I'I, ,,,.ii.,.a, 41.'.11. 'iM.. (tbUIItau -2- Present Price Price Recom. Magma 113 Masonite 42 Minerals & Chern. Monsanto National Dist. 27 North.Natural Gas 48 Northern Pacific Pacific Petroleum Pan Amer. World Air 18 Panhandle East.Pipe 95 Penn-Dixie Cement 38 Pitts.ton Company 55 Rayonier 39 Richfield Oil 74 Royal McBee 31 Scott Paper 68 Sperry Rand 25 Sunray Mid-Cont. 28 Sylvania Electric 52 Tennessee Corp. 51 United Airlines 39 I'lestern Pacific 73 Westinghouse Air B 32 Yale & Towne 33 – 75 40 32-30 31 24 48-47 40-39 11 12 92 39-37 45 75-74 31 70-68 25-24 25 49 50 40-38 73 33 18 —– Yield Advice Buy-Hold. Support 110-100. 4.1 Buy-Hold. Support 40-37. – Buy-Hold. Support 31-29. 2.5–00 Buy-Hora;-SupporC403S; 3.7 Buy-Hold. Support 25-24. 4.6 Buy. Support 48-45. 4.6 Buy. Support 39-37. Buy-Hold. Support 17-16. 4.4 Buy-Hold. SUP20rt 17. 3.2 Buy. Support e9-87. 2.6 Buy. Support 37-35. 2.2 Buy- 'Hold .Support 50-48. 3.6 Support 38-36. 4.7 Support 4.5 Buy-Hold. Support 30-28. 2.7 3.3 Buy-Hold. Support 67–65. Buy- – – Support 25-24. 4.1 Buy-Hold. Support 27-26. 3.8 Buy-Hold. Support 52-50. 3.9 Support 50-48. 3.9 Buy–Hold. Support 37-35. 4.1 Buy-Hold. Support 70-65. 3.7 Buy-Hold. Support 30-28. -4.5 Buy-Hold. Support 30-28. —– EDMUND W. TABELL WALSTON & CO.INC.

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