Viewing Month: April 1957

Tabell’s Market Letter – April 05, 1957

Tabell’s Market Letter – April 05, 1957

Tabell's Market Letter - April 05, 1957
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II i Walston &- Co. Inc, Members New York Stock EXchange V/' NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Swih.d..d) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lmER April 5, 1957 The Standard & Poor's 500-Stock Index made a fractional upside gain f the week to close at 44.42 after reaching an intra-week high of 44.B3. Thi compares with the February low of 42.39 and the August, 1956 top of 49.74. There is considerable overhead supply Qetween 45 and 47, but near term tech nical action has been good and I would expect the index to move a bit furth into the overhead supply. My technical gauge gave a buy signal at 43.04 on February 13th. If the 500-Stock Index reaches 46-47 in the next two or three weeks, the technical gauge would most likely be in overbought terri- tory. range I continue to believe that f,orprobably six months. the Index will r-em-ain in the broad 50-40 This letter has constantly stressed the thought that the price action of individual issues can be entirely divorced from the price action of any stock market average. During the past several days, for nine of th issues in my recommended list reached new highs for the 1955-57 period and approximately the same number were just a bit below their former highs. The nine issues are ALLEGHENY LUDLUM STEEL, originally recommended at 16, reached new ter tory at 65 3/8.1 continue to like this issue for both the intermediate and longer term despite its-sharp advance in price. The growth outlook for stai less steel, steel alloys and titanium remains excellent. Continue to hold and add to holdings on any possible temporary dip to the 60-55 support leve BRISTOL-MYERS COMPANY entered our list in June, 1956 when the stock was selling in the 33-31 area. A new high at 49 was reached during the past week. The stock has a nearer term objective of 50-55 and a longer term pric objective of B5. There is downside support at 45-43. See letter of February Bth 1957 for most recent analysis. C0PPERvIELD STEEL was only recently added to my recommended list (see February 21,1957 letter) at a price level of 31. A new high at 34 1/4 was reached during the past week. At present prices, the stock yields close to 6 and sells at only about eight times 1956 earnings of 4.0B. This special ty steel-issue has -a poss1.ble ob-j'ectlve cof-44-48,- I GENERAL DYNAMICS was originally recommended in August, 1956 in the 50-48 area. A new high was reached during the past week at-63 l/B. The stocl has an intermediate term objective of 70 and support at 60-55. HOUDAILLE INDUSTRIES was recommended in last week's letter.(March ' 29th), The stock reached a new high this week at 18 5/B. Excellent manage- ment is engaged in a program of diversifying into numerous new fields in addition to the automobile accessory field. From a technical point of view, the stock has an intermediate term objective of 33 and support at 16. INTERNATIONAL PETROLEUM entered my recommended list in June, 1956 at 34. This issue, listed on the American Stock Exchange, has reached a high of 55. The long term objective is Bo, but the stock is close to its inter- mediate term objective of 56-60. NORTHERN NATURAL GAS recently reached a new high at 56 3/8. It ori- ginally was recommended at 47-4B in August, 1956. The nearer term objective on this issue is not clear but the longer term potential is 80. There is support at 54-52. PACIFIC PETROLEUM is listed on the American stock Exchange. It has been on my recommended list for a long time, being originally recommended at a price of 11 a little over two years ago in February, 1955. The stock has more than doubled in price at this week's high of 23 3/4. The interme- diate term objective-is 25-27 -the .'. ' ROYAL McBEE CORP. moved into new high territory recently at 37 3/8 after being rather dormant since my original recommendation at 31 in June, 1956. The stock-has a long term objective of 55-65 and an intermediate term objective of 43-46. There is now downside support at 34-33. Unfortunately, not all of the issues in my recommended list have showr the same good price action as the nine issues noted above. The three airlinE issues in my list (Eastern Airlines, Pan-American and United Airlines) have been particularly disappointing. I still have not lost faith in the exceller long term potentials for this group but, with a squeeze in profit margins anc an application for a fare increase before the C.A.B.the picture does not ap pear very promising for the near term. I still counsel retention of these 10Q,0 hf– hnl,Yo of- h, . . This market contained he lette rem r IS InS not, and under no circumstances ot J(unrantccd as to accuracy or c 19 to ompl he eten es s and the an to se!.or . a .tany referr,e! The Ulformahon thereof IS not, ariilli'rMirTNlCtrcwnstarilfl'il1n1tlV11LclO.nstrued as, a representatIOn by Walston & Co Inc All c(prl!!BiOnS of opinIOn are subJect to change Without notice Walston & Stockholder thereof, may an mtcrcst the sccurltles mentioned herein ThiS market letter IS Intended and presented meklA ' JOfotih l on day to day market ne…. s and not us a complete analysls AddltlOnal mformatlOJl With respcct to any secuntlcs referred td'iier WN 301 I

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Tabell’s Market Letter – April 12, 1957

Tabell’s Market Letter – April 12, 1957

Tabell's Market Letter - April 12, 1957
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Walston &Co. Inc. Members New York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN 8ASLE ISw,\ml.nd) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER April 12, 1957 With volume of trading increasing, the general market made additional upside progress during the past week. Standard & Poorls 500-Stock Index, at Friday1s close of 45.04had recovered approximately 60 of the decline from the January 4th high of 46.66 to the February 12th low of 42.39. From here on, the going may be a bit tougher as there is considerable overhead supply in the 45-47 area. However, my intemediate term technical gauge, whi gave a buy signal on February 13th at 43.04, is still quite a distance away from entering overbought territory. ' This Index would have to reach the , 46t-47 area in the near future to become technically vulnerable. Would expect the advance- to carry sOmewhat-furtherr'-but- stFll-be;iieve– the-Inde'X– – – will remain within the of the 49.74-40.80 range in which it has held for the past twenty-two months. ' NORTHERN PACIFIC sold off sharply on the announcement of a U.S. Supreme Court decision concerning land grant righi-s of w'ay. Tfie Courtls ruling was confined only to the right of way – a 400-foot strip – and did not affect other land grants. I believe current weakness in Northern Pacific offers a buying opportunity for substantial long term appreciation. Earnings — record is better than in most roads and oil, gas and lumber provide additional growth potentials. TIMKEN ROLLER BEARING broke out on the upside of the 88-94 trading area in which it had been holding for the past two months and reached a new 1957 high at 101t. Both the intermediate term and long term potentials on this issue are extremely interesting from a capital appreciation viewpOint. Earnings could be around the 12 level for 1957. Continued retention of Timken is advised. FANSTEEL METALLURGICAL, another issue on our recommended list, reached new high territory at 57 3/8. This producer and refiner of rare metals, princi- pally tantalum and columbium, has excellent long term possibilities due to probable substantial growth in the use of these metals. Despite its low ypireiclde,atchteionisssuteHrs-tiinldl ilcoaotkess ahtitgrhaecrtilveveelasn-d.- a projection o.f — it-s- tec-hn-i-ca–l – CHAMPLIN OIL & REFINING continues to hover around the all-time high of This issue has a very constructive technical pattern with an ultimate price objective considerably above present levels. It is backed by some 26 a share of oil and gas reserves. With earnings in an uptrend and with an active exploration program, Champlin should continue to advance into new high territory. While most growth stocks are selling on a very low yield basis, there are still many other issues that have interesting long term pros- – pects and are available at prices to show an above average yield. This let- ter has a recommended list of issues of this type to which issues from our regular recommended list are occasionally transferred. I have called this list Income and Long Term Appreciation recommendations. All the twenty issues have about the same characteristics of (1) an above average yield- when quality is considered, (2) defensive patterns with a seemingly rela- tively small downside potential, and (3) attractive long term appreciation prospects although patience may be required over the intermediate term as no immediate move of importance is indicated. Price Yield Price Allied Stores – – American Can American Chain Associated Dry Goods Butler Bros. Coca-Cola Colgate Palmolive Columbian Carbon Cornell Dubilier Hall Printing 4'4 – – 44 51 3251 102 45 45 23 21 4.5 4.9 6.4 6.4 4.9 6.7 5.3 5.2 6.7 Kansas City S5utn- 70 Masonite 29 Montana Dakota Util. 25 Norfolk & Western 69 Raybestos-Manhattan 54 Rayonier 28 Richfield Oil 67 Simmons Co 46 United Fruit 47 Western Auto Supply 16 Transferred from recommended list for Capital Appreciation. Yield 7 45..90 5.4 6.2 5.0 5.2 6.7 6.3 6.3 – ThiS market letter IS not, and under no circumstances IS to be construed as, an 0ffer t 0 seII or a soI t scontamed herem 15 not !!,uarantccd as to accurD..cY or completeness and the IS nolh.f. any CI tOff to hereinas TahreepmrefsoernmtaattIiOonn or Stockholder thereof, may loy Walston & Co Inc All expreS9lOn; of opiniOn are subJect to change without notice a stan 4.oW.\Mc.tnry on day to day mnrket huvc fln Interest the &eeUTltlC'l mentIOned herem ThiS market letter IS mtended and presented ra In t WN 301 Ilew'l and not as a complete ano.lysls Additional mformation With respect to any SecUrltles referred to herein Will be furnished upon rcques –

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Tabell’s Market Letter – April 18, 1957

Tabell’s Market Letter – April 18, 1957

Tabell's Market Letter - April 18, 1957
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If ,,1' . ,, NEW YORK Walston &Co. – – – – – – – – – I n c . – – Membe,.s New Yo,.k Stock Exchange PHILADELPHIA' LOS ANGELES SAN FRANCISCO BASLE (Swlhedd) OFFices COAST TO COAST CONNECTED BY DIRECT PR1VATE WIRE SYSTEM TABELL'S MARKET LEnER April 18,1957 The market continues to inch forward and has reached new high terri tory since the February low. The advance has been orderly and there are, as yet, no signs. of technical deterioration. My intermediate term techni- cal gauge, which signalled a buy on February 13th, has not yet entered over- bought territory and volume indications remain favorable. Individual iSSUES will dominate upside price action, but the overall pattern still indicates somewhat higher price levels over the near term. of the most common questions which is asked of the market a1llirup.s as follows XYZ- is down from 85 to 37 in the past Do-youthiiiR–the stoc\iS-rea-dy'to bUYyetY–Such aquestionis a–; fairly natural one. After any stock has declined sharply in price, the normal tendency on the part of the public is to feel that it must be a bar- gain. Unfortunately,,,such is seldom the case. As Harold XQSchreder has often pointed out, much confused thinking concerning securities results from the fact that they are considered in terms only of level. Few people that a stock is a moving object and, as such, has two other qualities in addition to level — namely direction and momentum. The airplane, also a moving object, is often used for purposes of comparison. Two airplanes, one in a steep climb and one in a power dive may, at a given instant, be at the same level. It appears obvious that one would feel much safer in the former than the latter. The airplane comparison may be carried a step further. An airplane that has just landed must spend a good deal of time taxiing along a runway, refueling, and then taxiing back for a takeoff. A stock alsc, after a sharp decline,will almost invariably spend a long time in a sidewise trading area backing and filling before any major advance takes place. For this precise reason it is practically never wise to purchase stock immediately after a sharp price decline. In fact, in most cases, thfs practice leaves the investor vulnerable to serious losses…;) This . can ,be history. .- – ,In the year 1955, forty-two issues listed on tne New York Stock Ex- change declined 20 or more, from December close to December close. How – ..did bargain hunters fare in these issues Of the forty-two stocks. thirty- three declined further in 1956 with the declines ranging up to 4e. Ten of the forty-two declined 30 or more in 1950, and only one showed a profit of more than 30. The average decline was over 13. These figures pretty'well that it is rather senseless to consider stocks for purchase simply because they have had a sharp de- cline. It is almost equally senseless to worry about stocks which have had a sharp rise if technical and fundamental work proves that the stocks are suitable for purchase. Indeed, strange as it may seem, a stock is often a better buy while it is making new highs, or after it has moven up sharply after a long period of sidewise movement. This fact can also be proved statistically. There were forty stocks which constituted a market elite in 1956 by advancing 50 Had these stocks been down sharply in 1955 Not at all. Thirty-four out of the forty had also advanced in 1955 by amounts ranging up to 70. Indeed, not one of the forty issues had posted more than a 14 decline prior to the year in which they advanced 50 or more. – Thus, in a sidewise market like the present market,1 it is almost always to .buy.a stock–whichis at or- cl-ose 'new- – highs than it is to buy one at the bottom of a decline before it has formed a base. This is due to those elusive qualities, direction and momentum, which are all too seldom considered in making capital appreciation de- cisions EDMUND W. TABELL vfALSTON & CO. INC. AWTamb \\ \ \

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Tabell’s Market Letter – April 26, 1957

Tabell’s Market Letter – April 26, 1957

Tabell's Market Letter - April 26, 1957
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Walston &- Co. / – – – – I n c , – , M embeTS New Y07'k Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Sw,h.d,ndl OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER April 26, 1957 Near term technical pattern continues to suggest higher levels in individual stocks, although the general market is entering an area of heavy overhead supply. My technical gauge has not yet entered overbought territory and has not reversed the intermediate term buy signal given on February 13th. Four issues in my recommended list have reached or approached interme- diate term objectives and are therefore dropped from my list until-a new pattern forms. They are General Dynamics, first recommended at 48-50 in August, 1956, which is approaching its first objective of 70. Recent high is – 68 reaching near term tJtic rec)mmended overhead supply at the week's high of 64 5/8. 56, Also International Petroleum which, at the week's high of 60 1/8, reached 60 objective mentioned in our last list resume. It was originally recom- mended at 34 in June 1956. Also Pacific Petroleum, which was originally trheceomremceenndetdhaigth11of in27F3eb/8ru. ary 1955, more than reached its 25 objective at The balance of the list follows Present Price Price Recom. Allegheny Ludlum 60 Amerada Petroleum 117 Amer. Cyanamid Bell & Howell Bristol-Myers Calgary & Edmonton Carborundum Corp Carrier Corp. Champlin Oil Copperweld Steel ECar gulcei bPle-ic hS-teer-e l — 79 38 48 33 43 58 30 33 Eastern Airlines 39 Fansteel Metallur. 56 Food Machinery 60 Gen'l Rwy Signal 30 Gulf Ol 129 Hewitt-Robins Intern'l Nickel 36 112 Johns Manville 47 Joy Manufacturing 68 Kennecott Copper 118 Magma Copper Martin,Glenn L. Minerals & Chem 76 39 29 Nat'l Distillers 27 Northern Nat.Gas Pacific 57 42 Pan-Amer.\lJorld 16 Panhandle East.Pipe 53 PPeinttns-tDoinxie Cement -6338- Royal McBee 36 Sperry Rand 23 Sunray Mid-Cont. 26 Sylvania Electric 45 Tennessee Corp. 56 , rimken Roller Bear.lOO United Airlines 29 U.S. Steel 63 vlestern Pacific Yale & Towne 59 29 16 103 67 42 164240 60-58 24 3 3.202–29 – 47 4551-44 19 107 25 90 50 23 130 75 38 23J0t 48-47 40-39 12 46 3r 25-24 25 49 50 90- 40-38 65 7138 Buy-Hold for long term appreciation. Buy-HOld. Long term potential 180. One of most attractive chemicals. BuyHold for long term appreciation. Buy-HOld. Support at 48-46. Hold for intermediate retention is advised. BuyHold for substantial appreciatior BUY-Hold.Intermediate object. 37. Excellent holding for yield & t ion. -In buying range.Support at 40-38. Price action may be slow,but long term outlook good. Continued retention is advised. Excellent lit growth.Buy on weakness. Buy-Hold for long term appreciation. retention is advised. Buy-HOld for long term appreciation. Continue to hold for long term gaiD. Hold for income and long term apprec. Hold for intermediate object.of 80. Hold for yield and long term apprec. Long term potentiality very favorable. Near support.L/t pattern very strong. Lit pattern good.Patience required. Hold for long term growth. Very strong long term pattern. One of the better rail patterns. Prie-e action slow.Patience r,equired. BuyHold for long term gain. support – Longterm objective over 100. Buy-Hold.Excellent long term pattern. Patience required.L/t prospects good. Hold for long term gain. Buy-Hold.Near strong support level. Excellent long term growth pattern. Buy-Hold.Excellent long term pattern. Patience required.L/t outlook good. Continue to hold for lit gain. Has reacted sharply.Near support leve Continued retention advised. I ' hf \ Thl'l market letter IS not, and under no cucumsta.nces IS to be construed 3S, nn 0IT to B..II orr ;().h,tAYAI)-,.1,\bUH be cotnosthruereedma.s,TahreepmrelosernmtaattIiOonn hod lnf hcontamed herem IS not Ilu.!.ranteed a'l to nccuracy or completeness the t & Co loe (If any Officer, Irector or Stockholder thereof, may 'Valston & Co, Inc All expresslOns.of opmlOn …. 1\neWII nnnndInntoetreasst nInctohmepSlCetCe\alnntaleisysml'e! ntAIOddnietdIOhnearlemm,.OrmISntlOn Weitherespec It0 any CCu as; general, mformal commentary on day to day market referred to herem ,ill be furnished upon re(IUcSt WN 301

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