Tabell’s Market Letter – February 14, 1958

Wdlston CO.8———-Inc.– Memb.s New York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE iSwitml.nd) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTE…. TABELL'S MARKET LETTER February 14, 1958 In my December 6th letter, tabulating the effect of tax loss selling on the Decembe market, one of the conclusions drawn was that if the December lows in the averages werE broken in the first three months of the new year, the trend was usually either down for thE year or there was a sharp decline sometime during the year. The December, 1957 low wa 423.86 on the Dow-Jones Industrials and 39.09 on Standard & Poor's SOO-Stock Index. In the twenty-two years since 1935, the December lows were broken twelve times in the early months of the year. On six occasions this happened in January, twice in February, three times in March and once in April. In the other ten years, the December lows were duringthe,next and.themarket showed.a. in So far, the averages have 'held well above the December lows. This week's low on the Dow- J ones Industrials was 438. 13 and the low on the S & P 500-Stock Index was 40.58. Ability to hold above 423.86 and 39.09 for the balance of thls month and through March would be an encouraging signal. , Ever since last August, this letter has consistently stressed one theme — the ad- visability of switching from cyclical,heavy-industry type stocks into the defensive con- sumer goods category. Such switches have proved consistently profitable since most such stocks are now selling well above their August highs – despite the intervening sharp break in the general market. Technical and fundamental work would appear to indicate that this action will con- tinue over the intermediate term. For this reason it would still appear advisable to lighten commitments in capItal goods stocks in favor of foods, food chain, tobacco, utility, finance, container and electronics issues. In line with the above investment policy, our recommended list has been drasti- cally revised. Many stocks in the above mentioned groups appear attractive for new purchase at this time. However, we have attempted to list below only a few of the most attractive, and this list will be constantly supervised and brought up to date in future -issues Also – thec-atego;y are a ..,,- number of special situations outside the above mentioned groups which seem to have mer Current Price Ind. Div. Ind. Yield BUILDING National Gypsum 46 2.00 4.3 CONTAINERS American Can Anchor Hocking Container Corp Llly Tulip Cup 43 2.00 4.7 44 2.00 4.5 18 1.00 5.6 67 1.80 2.7 ELECTRONICS Hoffman Electronics 22 1.00 4.5 Raytheon 24 stock Sperry Corp. 19 .80 4.2 Zenith Radio 133 5.00 3.8 FINANCE Family Finance 28 1. 60 5.7 FOODS General Foods United BiscUlt FOOD CHAINS First National Stores 54 2.00 3.7 33 1. 60 4.8 57 2.50 4.4 TOBACCO Philip Morris — 51- . – 3.00. 5.9 UTILITIES Carolina Pro & Lt. Panhandle East. Pipeline 27 41 1. 32 1.80 4.9 4.4 MISCELLANEOUS Bell & Howell General Railway Signal Int'l Minerals & Chemical Pan-American World Air. Wilson & Co. 46 22 28 14 17 1. 00 1. 75 1. 60 .80 1.00 2,20/0 8.0 5. 70/0 5,7 5.9 EQP.qUJ!TD Vi. q;P.rBELL lthli.1'filIT.iuitw IS not, and undN nl) Clrcumstanccs 15 to 1e construed Ro;, an Qffcr to !1J or 11 sec;,lol(;Qe to herem The mfQrmahon tfinHilrh!d not Jt\lllrnntecd lUI to nccul ncy Ot complcten!5'1 and the !UI nlshlnl. thQleo! IS ..s.hl'4(\j;IQ, construed as, a represcnt.'\o hon h)' \Vnlston & Co, In(' All expre'lSlons of OPinion nre '1uhJect to chnnl.e Without notice \\ alston & C, Inc, anrl Officers. Directors, Stockholders and Emplyl'c; thereof, pUlchase, sclland aHl), hrl\'e an rntere;t m the sel'untl!5 mcntlOned hercm Thl; market letter IS Intended nnd prcsented merely 11'; n general, Informnl commentary on day t dn nllllket news and not us n complete analYSIS Addittonal rnformatlOn \\Ith to any secunltc, referred 10 helcm Will be furni …hed upon relluest \\ ' JOI