Viewing Year: 1957

Tabell’s Market Letter – January 04, 1957

Tabell’s Market Letter – January 04, 1957

Tabell's Market Letter - January 04, 1957
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NEW YORK Walston &Co. – – – – I n c , MembeTS New Y o1'k Stock Exchange PHILADELPHIA' LOS ANGELES SAN FRANCISCO BASLE ISw,hedd) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER January 4, 1957 The Dow-Jones Industrial average continues tu meet resistance at the lower part of the heavy overhead s u pp 1 Y at 500-524. This week's high was 502.57 which was a bit above the previous November and December highs but not enough to be decisive. The rail average also failed to better the previous highs. Ability to penetrate the December high of 159.41 would be encouraging. This week's high was 157.31. Regardless of the action of the averages, individual issues continue to show excellent technical patterns. Reprinted below is a complete list of my recommendations for long term capital appreciation. – -'—-. Price Allegheny Ludlum 63 Amerada Petroleum 124 American Cyanamid Bell & Howell 78 50 Bristol Myers 45 Calgary & Edmonton 30 Carborundum Corp. 45 Carrier Corp. 60 Champlin Oil & Ref. 29 Columbian Carbon 48 Crucible Steel 80 Eagle Picher 45 Eastern Airlines 51 Fansteel Metal. 50 Food Machinery 62 Gen'l Dynamics (new) 57 General Electric 59 Gen'l Rwy Signal 32 Gulf Orl 123 HewtttT-Robin'B .- Intern'l Nickel 109 Intern'l Petroleum 49 Johns Manville 49 Joy Mfg 72 Kansas City South. 77 Kennecott Copper 128 Magma Copper 87 Martin, Glenn L. 41 Masonite 34 Minerals & Chem. 29 Nat'l Distillers 27 North.Natural Gas 49 Northern Pacific 41 Pacrfic Petroleums 19 Pan-Amer. \'Jorld Air 19 Panhandle East Pipe 52 Penn Dixie Cement 40 Pittston Co 68 Rayonier 31 Richfield Oil RoyalMcBee 71 Sperry Ran& 23 Sunray Mid-Continent 28 Sylvania Electric 44 Tennessee Corp. 60 Timken Roller Bear 100 United Airlines 43 U. S. Steel 72 Western Pacific 64 Yale & Towne 30 Recom. 16 103 67 423176–35 42-40 60-58 24 5& 60-58 22 4T 45-44 51 50-48 56 19 107 –25 ' 90 34 50 23 85-83 130 75 38 iffi 32z-430 4847 40-39 11 12 46 39-37 5 4038 75-74 31 25-24 25 49 50 9040-38 65 7138 Yield 31..26 3.8 2.0 3.9 0.3 3.3 4.0 3.5 5.0 3.8 4.9 2.0 2.0 3.2 3.5 3.4 4.2 2.0 . 3.4 2.4 4.6 3.9 5.2 772 4.0 5.0 0.7 3.7 5.3 4.3 4.2 2.9 12..85 4.5 4.9 . – 4.3 3.5 4.3 4.5 3.8 2.5 3.5 3.6 4.7 5.0 Advice BuyHold. Support at 58-55 BuyHold. Support at 11&-105 BuyHold. Support at 7570 BuyHold. Support at 4543 Buy-Hold. Support- at 41-39 Hol&. Support 25-24 – Buy-Hold. Support 3937 BuyHold. S,upport 5550 BuyHold. Support 2624 BuyHold. Support 4544 BuyHold. Support 7065 Support 45-,42 BuyHold. Support 4744 BuyHold. Support 4643 BuyHold. Support 6055 BuyHold. Support 5550 BuyHold. Support 5654 BuyHold. Support 3028 BuyHold. Support 9794 . BuyHold. Support 9890 BuyHold. Support 4039 BuyHold. Support 4442 BuyHold. Support 7065 BuyHold. Support 78-0/4 BuyHold. Support 125-120 i.'lyHold. Support 9285 Support 4037 BuyHold. Support BuyHold. Support 2725 BuyHold. Support 2524 Support 4645 Buy-HOld. Support- 36-35 Hol&. Support 15-14 BuyHold. Support 1716 BuyHold. Support 49-46 BuyHold. Support 3835 BuyHold. Support 65-50 BuyHold. Support 30BuyHold. Support 6864 BuyHold. Support 2221. BuyHold. Support 2524 Buy-Hold. Support 4442 Buy Hold.Support 5550 BuyHold. Support 95-90 BuyHold. Support 3735 Buy-Hold. Support 6966 BuyHold. Support 60-55 Buy-HOld. Support 28 .,.. formerly Chicago Corp. EDMUND W. TABELL WALSTON & CO. INC. ,

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Tabell’s Market Letter – January 11, 1957

Tabell’s Market Letter – January 11, 1957

Tabell's Market Letter - January 11, 1957
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'r; Walston &Co. Inc. Membe1's New YOTk Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE ISwilo,l,d OFFICES COAST 10 COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER January 11, 1957 CHAMPLIN OIL & REFINING CO. Statistics Price Dividend Yield 28 1/2 1.00 3.5 Funded Debt 40,867,931 3 Cum.Conv.pfd. 100,000 shs. Common Stock 4,Q13,706 shs. Earnings Per Share 1956-E 2.20 Earnings Per Share 1955 1.67 Cash Flow Per Share 1956-E 5.50 Cash Flow Per Share 1955 4.21 Sales & Revenues 1956-E 76,000,000 Sales & Revenues 1955 55,-730,000 Mkt.Range 1956-1955 28 3/4 – 20 1/4 Convertible share-for-share into common. Th m,lrket letter 19 not. and under no clTcumstnllces IS to he construed as,;n OffhT l. nA'hlkrem IS not guaranteed as to accurncy or completeness and the urms CICoo'r) f I 1A… or I to be construed as, u. rcprcsentntlOn or stockholder thereof, may Co. Inc. All expreSSlOllB of opmion aTe subject to 1aJ;l\l on day to day h.ne lltl Interest in the SecUntICS mentioned herem Thls et to any secuntles referred to herem wIll be furmshed ullon request '\\ N 301 news and not as a complete analYSIS Additional mioI'mation Wl respe

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Tabell’s Market Letter – January 18, 1957

Tabell’s Market Letter – January 18, 1957

Tabell's Market Letter - January 18, 1957
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I Walston &- Co. Inc. Members lVew York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES ,AN FRANCISCO BASLE (Swaml.nd) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lEnER January 18, 1957 Crosscurrents continue to affect the market. The Dow-Jones Industric average has now held roughly between 500 and 460 since September, roughly c 8 1/2 trading range. The Standard & Poor's Composite average, perhaps an even more narrower accurate refl range between ercoutigohnlyo3f78theandge3n5e2r.al market, has held in an even Meanwhile, leadership has shifted from group to group and many stocks have had worthwhile moves while the averages were doing nothing. Once oagain-the-futili.ty of- trying- to predict-the maik-et!'–is indica,te. It is entirely possible that the averages may return to the lower part of t e 500-460 range. It is also possible that individual issues will continue to have worthwhile upside moves simultaneously with a decline in the averages. Indeed, during the uncertain market of the past two weeks exa'ctly this type of action has occurred. . Issues connected with the defense program have continued to fare well . on announcements of awards of guided missile contracts and on prospects for continued high arms spending. The higher prices accorded these shares by the f(4ie4d c3bu/ 8yr)r e1nw95th7i sc phe aerrcenucilneagnt istvl. ye enthusiasm are expected to be more than amply Included in our recommended list are GLENN L. made a new high, and GENERAL DYNAMICS (5b justiMART' Issues associated with natural gas, such as PANHANDLE EASTERN PIPE L' (53 1/8), NORTHERN NATURAL GAS (52 3/8) and CHAMPLIN OIL & REFINING (27 have been market leaders on the upside, stimulated by the President's budge message calling for exemption of natural gas producers from federal regula- tion. U. S. LINES (34 1/4) also on our recommended list, has recently shown strength on news of the prospective shipping boom and expected increased earnings. , ' On the weakness side of the list; last week was characterized by a minor slump in the price of steel shares, accomR.aniedby.. rep.Qrts.9f slacken – in-g steel –Close -exarifihation of st-eel pros- pects would seem to indicate that most of this pessimism is unfounded. Auto demand will, of course, not be as high as originally predicted, but it will may not in any case be higher than last year's. While the steel operate at full capacity, as was done for three quarters oinfd1u9s5tr6y, earnings should as in most cases i ncrease the last s1u5bstoafntsitaelleyl due to a capacity more even operating level, is marginal and produces only slightly better than break even 1 sults.Meanwhile, the shortage of many steel items continues and price inc ,cases offsetting higher labor costs are in prospect. Technically, most steel stocks are just above strong support and would appear to be excellent purchases around current levels, despite the fact that more consolidation may be required. Recent important news items have appeared on many companies in our recommended list. These reports state that New York Central Railroad is planning to spend 43 million for electrical traffic control systems. TSIhGiNsAwL o(u3l0d 1as/2su) r e a continuing high which handles most operating of Central level for 's signal GENERAL equipmen t RAIUJAY businesfr. Further gains appear.to be in prospect for General Railway Signal's earn- ings. CARRIER CORP. (58 1/2) recently revealed that it has acquired an ,important minority.interestinElliott Company, a producer of drive motors-'and other electrical equipment used in Carrier's products. The close rerationship with Elliott should add to Carrier's efficiency. With the air-conditioning industry entering a new field, Carrier appears attractive at current levels. RAYONIER (31 1/2), also on our recommended list, disclosed that it has been holding merger talks with Hammermill Paper, Consolidation should be beneficial to both companies. AWTamb EDMUND vI. TABELL WALSTON & CO. INC. ,

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Tabell’s Market Letter – January 25, 1957

Tabell’s Market Letter – January 25, 1957

Tabell's Market Letter - January 25, 1957
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,.' ' \ I WalstIoncn, &Co. Membe1's New Y01'k Stock Exchange NEW YORK PHILADELPHIA ' LOS ANGELES SAN FRANCISCO BASLE (Swa,.,ld) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER January 25, 1957 The rails were the weakest section of the list during the past week and the rail average, at Friday's low of. 148.32 reached the lowest level since the Eisenhower heart attack decline of September, 1955 when the rails declined to 144.07. The industrial average, on the other hand, managed to close the week above the previous week's closing level of 477.46 after reaching an intra-week low of 471.06. The industriais continue to hold in the broad 500-460 area which has contained the average for the past five months. The selective action of individual stocks continues and will probably continue for the foreseeable future. Continue 4to.thl. ikethe- action of most ofthe stocksinmy recomm.e.n.ded list of January Of the stocks in our recommended list, two of the less inspired performances have been turned in by MAGMA COPPER (82) and WESTERN PACIFIC (57) Both will have to do a good deal of work in order to form bases and penetrate the overhead supply which, of course, exists after a sharp decline. Both,on ,the other hand ,look reasonably attractive for purchase on current weakness. It is interefrting to note that Magma was first recommended by this letter some twenty-one months ago at an adjusted price of 68. At that time, the company's new San Manuel development was expected to be at least eighteen months away from full production, and the copper price was 33/ per pound. Despite the fact that, as of this writing, San Manuel hafr been in partial production for over a year, should attain full pro- duction within three or four months, and copper now sells for 361 per pound, Magma has declined to within 10 of the original recom- mended price. The reason for this is, of course,that Illagma enjoyed a sharp rise in 1955-56 as the price of copper skyrocketed to 461 per pound. As the copper price declined, Magma followed the trend, accelerated by reports that extensive mechanical and labor difficulties were being incurred at San .Manuel.,. .with attendan.t. diffLc,ulties on getting into-f.ull production. All of these reports were true and, as is the case with many new mining ventures, the target date for maximum output had to be pushed forward. It is now expected, however, that the mine can be on a normal output basis by April. The only remaining question is the copper market. The copper price is not so much of a factor here. Magma was originally recommendett anticipating 12 – 18 earnings on 331 copper. The main current diffi- culty in copper is that production has been cut back and there should be eome diffIculty in selling the full 70,000 ton San Manuel output. This, however, is only a temporary factor, and the strong possibility remains that, over the long term, the price of copper will again rise. With most of the unfavorable news fully digested, Magma at current prices appears fairly cheap. Western Pacific, at present levels, provides a better-than-5 cash yield, annual stock dividends, and perhaps one of the best growth potentials available in the rail field. – Indeed, recent forecasts of 1957 rail earnings project a larger 1956-1957 earnings gain for Western Pacific than for any other Class I carrier. Recently released earnings were 6.29 per share before funds and may rise to between 7 – 8 per share before funds in 1957. Tax adjustments may cause upward revision of these figures. Meanwhile', the extensive modernization pro'gram should permit substantial cost reductions, more than offsetting current tax benefits arising from certificates of necessity. Over the long term earnings could rise to a point substantially in excess of the above figures. c AWTamb EDMUND W. TABELL WALSTON & CO.INC. This market letter IS not, find under no circumstances IS to be construed as, an ofTer to !'ell or n contnln'(1 her!in IS not guaranteed as to .J.ccurncy or completeness and the furntRhlllg thereof IS not, C I Off D t 8m kh Id th eof may bh)avWe aahn-tmonte&r.csCtooI.n Itnhce A,elcluerxllplCre'!ssmIOenntsIOorneodmhnelroenmarT'hIsSumbJ'clrlckt''',ehtatnergeISv.mlthtocunddclotInCnC. , pWreasc'nettl . , 'and not liS a complete analYSIS AdditIOnal mformatlon WIth respect to any sculllIes referred to herein \HIl be furnIshed upon request dn;\o dCyWN 301

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Tabell’s Market Letter – February 01, 1957

Tabell’s Market Letter – February 01, 1957

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Reprinted from The Commercial and Financial Chronicle Thursday, January 17, 1957 What’s Ahead in the Securities Market by Edmund W. Tabell Director of Institutional Research, Walston & Co. Inc. Members New York Stock Exchange. Market analysis maintains major economic trends are favorable, excepting for the wage-price inflation spiral. Notes problems posed by taxation and financing needs. For the 1958 stock market he envisages a wide trading area in 530-430 range fort he Dow-Jones Industrial Average. Stresses need for extreme selectivity, favoring air-conditioning, aircraft, airlines, cement, coal, drug, electrical equipment, machinery, metals, natural gas, oil, and steel groups; comprising defense, labor-saving or wealth-in-the-ground areas. Over the next decade, holds outlook for both business and the market is extremely constructive. Dynamic Forces Enormouse Spending for New Plant and Equipment Financing the Boom The Pressing Tax Problem Interest Rate Rise Inflationary Pressures The Stock Market and Selectivity A more Intelligent Market Extreme Irregularity Possible

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Tabell’s Market Letter – February 08, 1957

Tabell’s Market Letter – February 08, 1957

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W—–a–l-s-tIoncn.–&—-C-o. Members N e1V York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Swit,l,nd) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER February 8, 1957 The market continued to drift downward on relatively small trading volume all of last week and many stocks were off far more, percentagewise, than the About the only encouraging feature in last week's trading was that my intermediate term indicator, for the first time since May 1956, entered oversold territory, thus putting it in a position to give a fairly strong buy signal. It is, however, not certain that this- will come about before a further decline takes place and it would be ad- visable to adopt a somewhat cautious approach until technical factors indicate a cessation of the decline. A reversal at this juncture, how- ever, would be especially strong it would be the fifth time that the demand area around 460 in the Dow-Jones Industrial Average has been tested. As always, however, the action of individual issues will remain paramount. BRISTOL-MYERS COMPANY Statistics Ipana, Bufferin, Sal Hepatica – Current Price Current Dividend Current Yield 44 1.80 4.1 these are household words. They are household words because of a sus- tained formula for corporate growth developed by their Bristol- Funded Debt 13,000,000 Myers. 3.75 Pfd. Stock CommonStock 58,480 shs. 1,539,000 shs. Very simply, Bristol-Myers' formula for proprietary drug promotion Net Per Share-1956-E Net Per Share-1955 is one that requires extensive market, product and consumer research coupled with heavy initial adver- Sales-1956-E Sales-1955 92,000,000 75,700,000 tising expenses promoting new products. These intial outlays are heavy, but they tend to fix the Mkt.Range 1957-55 45 5/8-28 1/4 name of a Bristol-Myers proprietary item in the consumer's mind and thus provide steady sales over a period of many years. As these sales continue, new products are introduced,and the growth trend of Bristol-Myers' overall sales is thereby compounded. This has been the record established by the company over the past few years and there is no reason to believe that it will not continue in the future. In addition to its proprietary drug sales, has a strong position in ethical drugs and appears to be in a position to participate in further expansion of the broad spectrum antibiotic field. An important stake is also held in cosmetics. Among the older Bristol-Myers products which provide a steady sales backlog are Ipana toothpaste, Trushay hand lotion, Sal Hepatica, MinitRub, Vitalis, Mum and Ammens Medicated Powder. Growth in recent years, however, has been achieved through two new developments. Bufferin, an improved version of aspirin, has shown a sharply rising sales trend since it carne on the market in 1948 and COUld, within the next year, become the leading analgesic in term of dollar sales. Ban, a deodorant in a unique roll-on package, was introduced in 1955 following extensive research and development and has.tad an excellent reception. Meanwhile, as the harvest from these items is reaped, other new products are now being readied for introduction. Among these are Theradan, a cure for dandruff; Biogels, a bulk laxative, and Analoze, a completely new type antacid in the Alka-Seltzer- Bromo-Seltzerfield. – -2- The company1s ethical drug division, Bristol Laboratories, Inc., also appears to have an interesting future. Major products of the division are antibiotics,such as tetracycline, penicillin and strev,tomycin. An important new development in this field -is a drug called 'Tetrex which could assert material effect on Bristol-Myers I earning power. Preliminary reports have shown this drug to be far more efficient than old style tetracycline and it may be the most efficient antibiotic yet devellped. Another growing field which Bristol-Myers has just entered is doorto-door cosmetic sales. In 1955, the company acquired Luzier1s, a direct sales cosmetic concern. Bristol-Myers is now in the process of redesign- repackaging Luzier line and increasing promotion. In this ion, it is interesting to note that Avon, the leading company in the doorto-door cosmetic field increased sales four-fold in an eight-year period. Capital for Bristol-Myers expansion has been acquired through the sale of two relatively unprofitable divisions, the Sun Tube Company and the Rubberset Brush Company. Further capital could be raised by possible sale of a large block of American Can Company stock acquired in exchange for Sun Tube. Working capital position is unusually strong and debt relatively small, so that n'o equity dilution appears likely over the next few years. in , The recent yreesaursltls of Bristol-Myersl sales and earnings, formula for growth has been apparent although they have not resulted in a pronounced change in the market valuation of the stock. From 55.5 million in 1953, sales rose to 62.4 million in 1954, 75.7 million in 1955, and should better 90 million this year despite the disposal of Sun Tube and Rubberset. Earnings rose from 1.44 per common share, to 2.12 in 1954, 2.98 in 1955 and should,better 3.50 in 1956. For.1957, under the continued stimulus of rising sales of new products, earnlngs are expected to re'ach a minimum of 4.00 and could progress well beyond this figure in future years. Thus, a company with a sustained growth record is selling at only 12 times 1956 earnings and 11 times anticipated 1957 earnings. The current dividend rate is 1.80 and could also be raised somewhat as earnings continue to improve. The stock yields better than 4 at the current dividend rate. From a technical point of view, the stock has a long term object- ive of 85 with an initial objective somewhere in the 50-55 area. Strong support is encountered at 40-38. The 'stock is recommended for purchase in investment accounts. EDMUND W. TABELL WALSTON & CO.INC. AWTamb ,

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Tabell’s Market Letter – February 15, 1957

Tabell’s Market Letter – February 15, 1957

Tabell's Market Letter - February 15, 1957
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Walston &- Co. – – – – I n c . – Members New York Stock Exchange NEW YORK ' PHILADELPHIA ' LOS ANGELES ' SAN FRANCISCO ' BASLE (Sw,',I.ndl OfFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER February 15, 1957 Share prices rallied sharply after reaching a new low on Tuesday of this week, and my intermediate term technical indicator registered a buy signal as of tonight's close. This buy signal was especially strong as it was the first time Since May that the market had been shaken out sufficiently for my work to indicate that it was in an oversold condition. Just how far any rally will carry is problematical and there is heavy overhead supply around 480-490 in the Dow-Jones Industrial Average. As has been outlined before in this letter, expected 1957 action calls for a broad trading -market similar to that seen in-0195 i-and -the!,acticon of. dividual stocks will remain paramount. Issues which appear especially'at- tractive for purchase at this time include Bell & Howell, Bristol-Myers, Champlin Oil, Crucible Steel, General Railway Signal, Eagle Picher and Glenn L. Martin. From time to time this letter has made elementary relative strength computations pointing out the stocks that have managed to post higher price at successive lows in the general market. Tuesday's low in the Dow-Jones Indusprial Average was 453.07 as opposed to a low last November of 460.41. Despite this fact, there were stocks on the New York Stock Exchange which outperformed the market and at their Tuesday's low were 10 or more above their November low. When such favorable relative strength action takes place,it can be oft'en expected to continue through one or more additional market signals. The stocks are listed below ,1 \ Nov. Low 1956 2/12/57 Low Nov. Low. 1956 . 2/12/')7 Low . Nov. Low 1956 Low Aeroquip 16 3/4 22 3/B Detroit Ed. 3/;4 39 Mid. SO 2B I/,4 32 3/,( Amer.Bak. 30 33 Elec.Mus. 234 31/4 Mo.Pac. 35 5/B 39 5/! Amer.Bosch 19 liB 22 1/4 Elliott 2B 3/4 32 3/B Mont.D. 22 l/B 24 3/' Amer.Fgn P 13 liB 271/2 . 'EiPaso-N 15 liB Emerson El -'305(B -Nat-hTh 25 1/2 29 5/B Natomas 7 1/4 5 3/4 8 7 lli/Ef-I—t Amer.Seat 2B 32 Fairbanks 51 3/4 59 Northrop 233;8 27 Amer.Sug. 99 lIB 1/4 Fedders Q 12 13 1/4 Okla.G 36 1/2 40 And.C lay. 36 42 Fed .Pac .El IB 19 7/B Outb' dMM 63 3/4 70 Atlas Corp B 3/B 10 1/4 Fid.Ph.Fire 44 1/4 50 1/2 Pac.F 31 5/B 35 Avco 5 5/B 6 1/2 Foster W' -30 1/2 35 3/4 Para.P 27 5/B 30 11 Bath Iron 49 1/4 56 1/2 Fran.Sug. 10 1/4 12 7/B Peo.GL 153 179 Bendix' 52 5/B Black D. 44 1/4 Bristol M 34 1/2 Bruns.B 3B 1/2 Byers 2B 1/2 . Carrier 49 1/2 Case,J.1. 12 Celanese 13 3/B Chemway 6 5/B Chic.Y.Cab 13 3/4 City Inv. 13 1/2 Col.Br.A 27 3/4 Conso1.El 27 l/B 5/B Cooper B 42 3/B Cuban A.Su IB 1/4 Daystrom 26 1/4 Del Pr.Lt. 40 1/2 59 1/2 50 41 liB 44 35 3/4 55 14 33//44 14 3/4 B 1/2 17 15 3/4 30 5/B 31l 1/2 5/B 54 1/4 22 5/B 31 3/4 44 1/2 Freeport S Bo 3/4 87 3/4 Ranco 15 3/B 17 5 Genl A.Tr 65 7/B 72 1/2 Raytheon 15 1/4 17 Gen1. Dyn. 4B 1/2 56 5/B Rob.Ful. 22 1/2 26 Genl.T & R 47 1/4 68 5/B Royal D 35 liB 39 Georgia Pac 25 1/2 2B l/B Royal Mc 30 33 Gould N.B. 2B 1/2 32 1/4 30 1/4 33 Hamilton W 22 3/4 25 So.Natl G 35 5/B 39 Harbison W 56 1/2 62 Stan.War 13 l/B 16 11 Harshaw Ch Hollander 24 1/4 9 l/B 26 12 5/B 1/4 Starrett 54 Sym.Gou1d 10 liB 63 11 I Ill.Pr. 53 1/2 59 Texas U 36 3/B 39 Intertype 19 l/B 24 liB Underw'd 20 7/B 23 Iowa Pr Lt 24 1/4 27 Union As 5 1/2 6 Tea 45 – -.. 49 l/2-Un;Stk,Yds131/2 14 Kerr 15 3/4 57 1/2 Walker H 64 70 1/2 Magnavox 31 1/2 35 3/B Wayne P 20 3/4 2B 11 Manati S 6 B l/B ' Maracaibo 0 8 1/4 9 3/B AWTamb EDMUND W. TABELL WALSTON & CO.INC. ThIS mnrk('t lcttc!)' 1'1 not. and under no circumstances IS to he construed us, an offer to sell or n to buy any s('cuntiC'S rderred to herein The anformntlOn contained herein IS not guaranteed as to ac.urncy or completeness and the furnlShlO1'( thereof IS not, and under no Circumstances IS to be construed as, a kby Wul'llon & Co., Inc. All C).llreSSlons of opmion are subJect to change Vilthout notice Walston & Co, Inc., or any Officer, Director or Stockholder thereo ny h\\'c an Interest In the 'fecUrltlcs mentIOned hereIn This market letter JS mtenrlcd and presentel! merely .-1'1 a general, mformal commentary on dar to day and not as a complete Bnalysls Addlhonnl mformatlOn Vilth respect to any securities referred to hcrcln '\\111 be furmshed upon request, . —

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Tabell’s Market Letter – February 21, 1957

Tabell’s Market Letter – February 21, 1957

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, … .!! ,II' II' , 'If fI' P . . . . CI 'f( ' g g fCf W SI'1' NEW YORK Wdlston &CO.——–Inc. Membe,'s New YOTk Stock Exchange PHILADELPHIA' LOS ANGELES SAN FRANCISCO BASLE ISw;'..,I.,dl OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET LEnER February 21, 1957 Although the recent downside penetration of the 500-460 area Signalled a Dow Theory bear market, the decline did not carry too far. Afterreaching a low of 453.07, the average returned to the 500-460 area, reaching a high of 471.22 on Monday, February 18th. The average closed today at 466.93. This action is very similar to that of 1948 when a Dow Theory bear market signal was given by both the industrial and rail averages,but, after a short decline, the market rallied back into the former trading shelf. This is one more confirmation of the theory held by this letter for some time – that the market is in a broad consolidating area similar to 1946-1949 and 1951-1953. The present market has held for over twenty months in the 524-433 area or range of roughly 17 from high to low. This is approximately the same percentage range that characterized both the 1946-1949 and 1951-1953 period. The probability now seems to favor the fact that the market will continue to hold in this range for an indefinite length of time and again underscore the fact that individual stock selecttion will be of paramount'importance. In connection with individual stock selection, it is important to note that individual stocks and industry groups have consistently shown better I'elative strength than the market. A study of the relative price action of all of the 103 industry groups covered by Standard & Poor's weekly averages show that selected issues in forty-four groups have shown ah.ve average action. These industry groups are tabulated below Agricultural Equip. Air-Conditioning Airplane Mfg. Airplane Equip. Amusement Baking Bus Lines Carpet Cement Coal Construction Office Equip. Shipping Drugs-Proprietary Oil Producing Shoe Mfg. Electrical Control Oil Prod.-Canada Steel Elec.& Elec.Equip. Oil Refining Household Equip. Paper Cup Sugar-Cuban Insurance-Fire Photography Sugar Refining Iron Ore – Railroad Equip. Tank Car Machinery-Const. Real Estate Tobacco-Cigarettes Machinery-General Refractory Mat. Tobacco-Cigar Machine Tools Roller Bearings Utilities Natural Gas Shipbuilding Vending Machines COPPERVIELD STEEL COMPANY Statistics Copperweld Steel appears Current Price I't'ridfend- , Current Yield 31 ' 2.00 6.5 to be an outstanding bargain in the specialty steel group, based on future expansion plans which ' do not appear to have been recog- Long Term Debt 8,278,000 nized by the market. The stock, 2.50 3.00 Cum.Pfd.Stock Cum.Pfd.Stock 12,697 shs. 56,906 shs. at current levels around JIJ is fairly priced in relation to 1956 Common Stock 784,910 shs. earnings of 4.08 per share and yields close to 7 on the'2.00 Earned Per Sh.1956 4.08 annual dividend rate 'which is am- Sales-1956 100,500,000 ply covered by earnings. The pre- sent price does not appear to Mkt.Range – 1955-57 33 1/2 – 21 1/4 take into account a possible 50 Convertible into 2 shs. common to 100 increase in earnings over the next six to eighteen months through 1952 which could occur as a result of the company's expansion program. The low price earnings ratio also fails to take into account the improved efficiency status of the company brought about by the above mentioned ex- pansion program. The above fundamentals are supported by an excellent technical pattern. ThiS market letter IS not, and under no Circumstances IS to he construed as, an offer to sell or a sohcltatlOn to buy any securities rderred to herein. The informatIon contailled herein lS not guaranteed as to accuracy or compleWncss and the furmshlll)l thereof 1& not, and under no circumstunccs lS to be construed as, a representatIon by Walston & Co, Inc AJl expre'SlOns of opinion are subJect to change Without notice ,,'alston & Co, Inc, or any Officer, Director or Stockholder thereof. may h.l\'e an mterest in the secuTltuS mentIOned herem ThiS market letter is Intended lind pre'ented merely os II gelleral, lllformal commentary on d.lY to day maret news and not liS a complete analySIS Additional mformatiOn With respect to any SecUlltlCS referred to herem \\111 be furm&hed upon request \VN 301 —— -2- Copperweld's sales can roughly be broken down into four divisions' (1) the Steel division accounting for roughly 50 of sales, (2) the Wire' and Cable division, more than 30, (3) the Ohio Seamless Tool division 15 and (4) the Flexo Wire division, less than 5. As can be seen the above, the Steel division which produces electric furnace quality alloy and carbon steels in semi-finished form is the most important factor in the company's sales mix. It is on this division that a large part of the company's recent expansion has been concentrated and it is from better profit margins in this division that a large part of future expansion of earnings may come. The other major product, copper-covered steel cable, is used extensively the utility and communications fields and continued demand for this product is foreseen. In 1955, Copperweld embarked on a 12 million expansion program. 5 million of the capital required was raiSed by sale of common stock which effected more than a 50 diluticn of the stock outstanding at that time. Additional capital was raised by the sale of notes. Prior to the beginning of this program, the Steel division had melting capacity of 618,000 tons of ingots per year. It could finish, however, only 460,000 net ton ingots per year, thus giving an effective capacity of only 320,000 net tons of finished products. When the expansion program is completed, additional blooming and finishing facilities will enable the company to process its entire melt output, thus giving the Steel division an effective finished product capacity of 460,000 net tons or a 40 final increase. This expansion program is expected to be complete by the third quarter of this year. It is very difficult to assess the precise effect which the expansion program will exert on Copperweld's per share earnings. It is true that an expanded sales base can be looked for – perhaps as high as 120 million as compared with 100 million shown in 1956. However, the most significant effect of the expansion program will be to increase profit margins by further integrating Copperweld's plant and improving operating efficiency. In prior years, Copperweld's operating income as a percent of sales has been unusually low in comparison with most companies in the steel industry. If this could be raised to a pOint only a bit more in line with the industry average, an expansion in earning power to an annual level of between 5.00 and 8.00 per share could easily be seen . Current prices for the stock, which mark it at some 7 1/2 times last year's earnings of 4.08 per share and afford better than a 6 yield on the 2.00 dividend, do not seem to take into account the improved earnings picture and better efficiency which could be brought about by completion of modernization. The favorable fundamental picture is reinforced by an excellent technical pattern which gives the stock an initial objective of 41 followed by a long term 68 with support encountered just under current levels. The stock is being added to our recommended list and is suggested for purchase as a long term repre-' sentation in the steel industry. AWTamb EDMUND W. TABELL WALSTON & CO. INC.

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Tabell’s Market Letter – March 01, 1957

Tabell’s Market Letter – March 01, 1957

Tabell's Market Letter - March 01, 1957 page 1
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Walston &Co. – – – – I n c ….;. Members New York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Sw,h.dj OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LmER March 1, 1957 AMERICAN CYANAMID COMPANY statistics Current PrJ-ce..–,, 71 , ,. Current Dividend –3.00' Current Yield 4.2 Funded Debt 33..5705 CCuumm..CCoonnvv..PPffdd.. Common stock 94,750,000 152,129 shs. 10,2579.,911050 shs. shs. Sales-1956 Earned Per Share-1956 500/6 51 4.21 ,279 Mkt.Range 1957-56 79 1/2 – 61 Called for redemption March 29,1957 This letter has often pointed out the inherent growt-hpotential -in- the-..che-..,…,.. – -i' mical industry. The high- profit margins, heavy re- search expenditures, new product development and- other factors which cha- racterize the industrY,have resulted in a truly amazing growth trend over the past ten years resulted in high price-earnings and low yields for most lead- ing chemical companies. Des- pite the long term upward Convertible into 2 &hs.common Exclud i ng 1.08 non-recurring income. trend, 1956 was a poor year tfhoer pmroesstspurroedoufcehresa. vyUncdoemr– petition and higher costs, profit margins narrowed and priced, declined as much as m30any chemical from thei r stocks, which had been fully bull market highs. A notable exception to this rule was the stock of American Cyanamid Company which, …of-.79 1/2. The reason for this small decline is easy to find since Cyana-mid was one of the few companies to show an increase in net income in 1956 and, more significantly, a well-maintained profit margin. Most interesting, despite the fact that the stock has declined far less than that of any other chemical company, it is still,at current levels, the cheapest in relation to 1956 earnings and the highest yielding of the six major chemical stocks. The management has announced that a two-forosnhearsepholiltdeirss. under consideration, subject to approval of the common Current Current PiE Yield Ratio ;f After Tax Pft. ;f Chagge in Per Sh.Earn. Margin 19'3b 1955 1955-1956 1947-1956 Amer.Cyan. Allied Chern. Dow Chern. (1) Du Pont Monsanto Union Carbide 16.9 18.6 2251..42 2127..27 4.2 8.8 8.6 3.5 3.4 23..70( 7.0 9.6 13. 6 8.4 10.2 )15.7 (2) 182..88 3.1 7.1 8.1 9.5 3.3 11.0 11.8 .J. 0.6 (1) All figures for 12 months ended November 30, ,-1956, (2) From operations. Excludes General Motors dividends. (3) Estimated. t 184 t 38 f- 89 t 232 t- 50 45 -. The above table presents some comparative statistics on American Cyanamid and the other five major chemical producers. As can be seen in columns 3 and 4 above, Cyanamid was the only chemical producer which was able to increase its 1956 profit margin over 1955 results. It was also the only chemical company, with the exception of Dow, to show a large increase in per-share earnings in 1956 over 1955. Actually, increase in dollar net was much higher than shown in the above table, but some dilution was effected by the issuance of stock in connection with the ThIS letter IS not. and under no Circumstance'! IS to he construed as, an offer to sell or a solicitatIOn to buy any secUrities referred to herem The information contained herein lS not Iuarllntced as to accuracy or completeness and the furnishing thereof IS not, and under no lS to be construed as, a representabon by Walston & Co Inc All expresSIOns of OpinIOn are subJect to change without notIce Walston & Co, Inc, or any Officer, Director or Stockholder thereat, may have un Interest In the securities mentioned herein ThiS market letter IS Intended and presented merely as a Jeneral, Informal commentary on day to day market news and not as a complete analYSIs. Add.tlOnaimiormatwn l\ith respect to any securltles referred to herem WllJ bc furmsbcd upon request. 'VN 801 -2- acquisition of the formica Company. The table above also shows that Cyanamid has the best ten-year growth record of any of the six companies with the exception of DuPont. Despite this impressive statistical exhibit, the current market capitalizes Cyanamid's earnings at a lower rate than that of any other company and the current yield is significantly higher than that available from any other chemical company. Surely all this makes the stock worthy of investor attention. Part of the reason for Cyanamid's growth may be found in the fact that it is the only chemical company with a large percentage of sales – more than a third – in the expanding ethical drug field. In addition, its-geographical and marketing diversifcation — not more than 10 of non-drJlgi'lalesgoto caJ1YQJleind)lstr'Y—rendersit lessvlllrrerableto,.- – nappenIn-gs ina particular -The company-has thlrty-s-ix domestiC and Canadian plants and is divided into eight producing divisions and a research division which does basic research on all product lines. A full description of all of Cyanamid's product line would require more space than is available in this report, but it includes a wide line of chemical and drug products with significant growth potential. Among them are agricultural chemicals, bulk pharmaceuticals, industrial chemi cals used by the paper, petroleum and metal processing industries, antibiotics, miscellaneous ethical drugs, organic chemicals, dyes, explosives, resins, pigments and plastics. New product development plays an important part in the company's sales and a few special products are worthy of note. The Formica Company, acquired in 1956, manufactures an impor tant plastic widely used in the home furnishings field. Formica is understood to be a relatively high-profit-margin item. A new plant is now being constructed in Pensacola, Florida, to manufacture Creslan,a new acrylic fiber which is said to be superior to many of the old acrylics now on the market. Acrylonitrile, of which American Cyanamid is a major producer, is used not only in textiles but also in the plastics and -synthetic rubber fields. The-drug subsidiary, Lederle Laboratories, produces aureomycin and the broad-spectrum antibiotic, tetracycline. -Despit-e- Cyanamid'sterr1fic rate–C;reXpansion andproJectea 'high—– rate of capital expenditures, it is not expected that any new financing will be required over the next few years, thus insuring that all growth in net will accrue to the benefit of the common stockholders. Current cash and working capital position is unusually strong — even in-a field where a strong financial position is normally taken for granted – thus underscoring Cyanamid's ability to finance its growth internally. Based on all available projections, per share earnings for 1957 could be significantly better than the 4.21 shown in 1956. From a technical point of View, the stock has a long term objective of 140 with a first objective of 90-100. Strong support is evidenced at 65, thus making the stock a suitable purchase at current market levels. American Cyanamid is recommended as the most suitable representation in the chemical industry at this time and as an investment quality stock offering moderate yield and above-average growth potential. EDMUND vI. TABELL WALSTON & CO.INC. AWTamb

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Tabell’s Market Letter – March 08, 1957

Tabell’s Market Letter – March 08, 1957

Tabell's Market Letter - March 08, 1957
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— – Walston &- Co. Inc. Membe1's New Y01'k Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (SwH…landl OFfiCES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER March 8, 1957 After rising the first three days of this week, the market declined on Thursday and Friday and finished the week just about where it started. Volume of trading was light in both directions. Although it would be possible for my technical indicator to give a sell signal within the next two weekS, it would be highly improbable, and probabilities thus favor an extension of the current rise into the 480-500 supply area. The more im- portant question will be, after this rally runs its course, whether the February low will again be tested. There would appear to be an even 'chal'lc of-t-hois-taking place, al though what-may be regarded as close to their lows. As has been the case, it will be necessary to concentrate on individual issues where values and technical factors seem to support the possibility of higher prices. Issues of this type should show the best action on any near term rally and should be the least vulnerable in any decline which may take place. Our entire recommended list will be reviewed next week. Below are a few short comments on issues that are especially attractive for long term purchase at this time. Officials of two companies on our list have recently issued extreme ly bullish forecasts for 1957. ALLEGHENY LUDLUM STEEL (61) recently esti- mated that 1957 sales should better 1956 revenues of 286 million. The company earned 4.04 per common share for 1956 with an additional 3.00 cash flow arising from depreciation. The above figures do not include earnings of Titanium Metals Corporation of America which could eventually add sizable earnings potential to Allegheny Ludlum. stock has an initial technical objective of 75 with support at 55-52. BRISTOL MYERS' (46) officers recently predicted an increase in 1957 net income to around the 3.75-4.00 per share level vs. the 3.55 shown in 1956. Sales should rise from 92 million to around 100 million. The largest part of the 1957 advance will comLfr9m .tJrQprietary producj;s aSBUfferin -aria-other new'pr6pr-iefary items will be int-roduced by mid-year. Bristol Myers has an initial ebjective of 50-55, followed by a long term 85. There is support at 40-37. – COPPERWELD STEEL (33) has acted well since our original recommen- dation, but indicates much higher levels over a period of time., First quarter results should be equal to last yearls, but improvement should be shown in the second quarter due to a scrap prices and in the third quarter the company's expansion program should begin to bear fruit. The stock has an objective of 47 followed by a long term 68. There is support at 30-28. CRUCIBLE STEEL (31) has just issued its annual report and showed earnings down to 3.51 per common share from3.63 in 1956 due to the steel strike. Cash flow per common share was some 6.60, including some 4.4 million accelerated amortization. On a normal depreciation baSis, earnings would have been in the neighborhood of 4.10 per share. The long term objertive is 70-75 with support just under current levels at 30-28. EAGLE PICHER (44) continues its expansion and diversification program. Most recent acquisition was the Chicago Vitreous Corporation, the second largest manufacturer of porcelain frit in the United States. A large part of the business of this company is in the field of station construction, which should 'benefit substantially from the road building program. Eagle Picher'S 1956 earnings were 5.47 per common share, excludIng non-recurring items. Technical objective is 61-86 with support at 41-39. – TIMKEN ROLLER BEARING (91) showed earnings of 9.00 a share,some- what less than those anticipated for 1956. The main reason for net being less than originally was a poor third quarter brought on by the steel strike. This factor will, of course, be eliminated in 1957 and earnings should show considerable expansion as automated bearing plants become more important in the company's future. The long term objective is 200 with support just under.current levels. I.

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