Tabell’s Market Letter – June 07, 1957

— –.-r—- – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – , Walston &Co. Inc. Members New York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Swaml.ndl OffiCES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER June 7, 1957 The technical correction of early this week held well above the late May lows, and the advance was resumed on Thursday and Friday. My technical gauge is well below overbought territory and it would require quite a sharp advance for the market to become technically vulnerable in the near future. Meanwhile, as the advance resumes, it is well to examine the internal character of the market. The Standard & Poor 500-Stock Index reached its on February 12, 1956 and since then has advanced rather steadily. The ad- vance from 43.04 on February 13, 1956, the day after the low, to 47.37 last Wednesday, had an amplitude of 10.1. As has been pOinted out often, however, it is impossible to purchase an averaIgte-,haasnbde, as en i the results of many portncreasingl'Y-dffflcan'-t'o select a list of stocks which would perform as well as the average. This is shown by a tabulation of the action of 62 Standard & Poor group indices in the period February 13 to June 5, 1956. During this period, when the advanced about 10, only 16 of the 62 group indices (about 1 in 4) performed as well as or better than the market. Indeed, no less than ten of the group indices were lower on June 5th than they were in the depths of the February decline. This only serves to underscore the fact that the market remains most selective, and that careful analysis is necessary in order to pick stocks that will act well even in an advancing market. In- most cases, companies showing the best performance exhibited sound funda- mentals and good technical patterns. New investments at this time should be confined to companies which show the same characteristics. A complete list of the percentage of advance or decline since Feb- ruary, 1956 in each of the 62 group indices follows Group Drugs Publishing 011 Advance or Decline 24.4 23.7 22.6 Electrical Equip. 22.1 Office Equipment 21.4 Electronics 20.8 Gold Aluminium 17.5 13.8 Metal Fabricating 13.8 Motion Picture Tires 13.7 12.0 Finance 11.6 Radio-TV Mfgrs. 11.4 Natural Gas Pipelines Chemical 11.3 10.3 500 STOCK COMP. 10.1 Steel Alloy Liquor' 9.7 9.6 Radio-TV Broadcasting Auto Parts Rayon Beer 9.4 8.9 8.4 8.3 Soft Drinks- — — .- 8.0 Steel Fertilizer Railroad Equipment 7.5 7.3 7.0 Confectionery Mining & Smelting 6.7 6.5 Printing 6.0 Electric utilities 5.5 — Group Advance or Decline Metal & Glass Cont. 5.4 Natural Gas Dist. . 5.4 Auto – .p-55;.'1i Sulphur 5.0 Textile Weavers 4.8 Paper Containers 4.2 Soap 4.2 Retail stores 4.0 Food 3.1 Copper 2.9 Rugs ' 2.7 Textile Apparel 2.7 Shoe 2.4 Telephone 2.4 Agricultural Machinery 2.2 Cigars 2.2 Sugar 2.1 Railroads 1.7 Paper 1.2 Coal – 1.0 Machine Tools . – 0.2 Shipbuilding – 0.4 –S-hCitpgpairnetgtes .– 0.6 – 01' c – Vegetable Oil 2.3 Hard Sur.Floor Cover.– 2.4 Auto Trucks .- 2.6 Aircraft Mfg. – 4.8 Air Transport – 7.8 Lead & Zinc – 12.1 AWTamb EDMUND W. TABELL WALSTON & CO. INC This market letter IS not. and under no Circumstances IS to he construed a8, an offer to Bell or a sohcltation to buy any securities contmnCtl herem IS not guaranteed as to aCcuracy or completeness and the furnlshmg thereof IS not, and under no totve to terdlfl The may by nll.ton & Co Inc All expressIOns of OPIniOn are subject to change without nohce Walston & Co. Inc, or any 0 cer, Irec r or 0 er er . k t have nn mterest the SecUrities mentIOned herem This market letter IS mtended and presented merely as a general, mformal on day to daYv..rr;/SOl news and not as a complete analysIs Additional mformntlOn with respect to any S!!eurltles referred to herem wlil be furnished upon reques