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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