Tabell’s Market Letter – August 31, 1956

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.