Tabell’s Market Letter – August 15, 1958

Tabell’s Market Letter – August 15, 1958

Tabell's Market Letter - August 15, 1958
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Walston &- Co. Inc Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO TABELL'S MARKET LETTER August 15, 1958 The market reached its high for the week on Monday with both the Dow-Jones Indmtrials and Rails at new 1958 highs of 514.44 and 134.48. The market drifted lqwer durin the balance of the week with Friday's closing levels at 506.13 and 130. 22 The market n the first two weeks of August flattened out after the steep advance of the final two weeks 0 \\VJuly. The Industrials have held in the 514-500 range. A downside penetration 0 u 1 d indicate a further decline to the 485-480 level. This would result in a much needed technicf1 correction and place many individual issues at advantageous buying levels. \ The dog days of August are agam upon us and it would seem that the summ'er heat tends to bring about the same)evel of common stock prices-.,atJeast insQfar.Jis..the Dow- . . Jones Industrial Average is concerned. .. . . – -,'.- The Dow-Jones Average closed at 506.13. It was sellmg at approximately the same level in August a year ago and at around the same price in August, 1956. Approximately three years ago in September 1955 it sold around 490, or only 30/0 below present levels. At various times in the interim, market soothsayers have issued widely contrary opinions as to the future course of prices. The prophets of gloom and doom have predictec a decline to the 350-300 level. The optimists were convinced that the market was about to take off to unprecedented new .highs around 600-750. Neither set of prophets proved corr c It is, furthermore, unlikely that either the confirmed bull or the confirmed btar will find the type of market he is looking for over the next twelve months, for it is probable that a trading range market exactly like that which obtained for the past three years will continuE. Despite the fact that the market has moved sideways, the fortunes of individual in- vestors have been diverse, depending upon the stocks following table shows the closing price of two representat e s of the past four years (in this and other tables all p)'itnes Ii e e 7'11955 capitalization). tle period. The tlDAugust 15th in each c erted to reflect -'; 71;Stock 1957 1958 00' . On all of the the wa around the same level, yet while Texas Instruments was t 'p' P -Texas was lOSing over 800/0 of its 1955 value. Trends of' ed even within various industries. For example, in pthe chemical industr w ile n Mathieson and Allied Chemical were doing nothing, American Cyanamid vancing sharply – StocK Olin Mathieson Allied Chemical American Cyanamid -195-5 -195-6 58 1/4 59 107 1/4 109 573/8 73 1957 51 3/8 84 85 1958 36 1/8 88 98 1/4 Similar trend diversity could be found in practically every major industry represented on the New York Stock Exchange. Selected below are random examples from the steel and railroad groups – Stock -195-5 -195-6 -195-7 -195-8 Allegheny Ludlum 54 3/4 98 1/2 98 1/2 80 3/4 – — – , . U. S. Steel . – 52 – -65 1/4 67 1/4 70 3/8 – Colorado Fuel 28 1/4 31 3/8 29 1/2 20 1/2 Southern Railway Gulf, Mobile & Ohio 92 3/4 113 1/2 102 1/2 1117/8 37 1/4 33 1/4 27 1/4 , 19 1/4 The above figures serve only to prove something that this letter has maintained for a long time – namely that concentration on individual stock selections is far more fruit- ul than market predictlOn. EDMUND W. TAB ELL AWTamb WALSTON & CO. INC. Thl'l marke-t leiter IS not, find ufi,ler no Circumstance,; I to he 38, nn offer tnllell 01 n soll('ltatmn to buy an. '('C1lntles tefcrrcrf tu herem The mformatlon I'ontlllficd he-rem I' not J!l1urnntced a .. to aCC\l1 ncy or completeness and the furnlshmg thereof nut, and undel no I to be constl ued as, a II ,n by Walston &. Co Inc All CJLpre'SIOIIS of oplIllon arc subject to change \\Ithout notice Walston &. Co. Inc and Officers, Dlrcctors, Stockholdcrs an ;nploycl''' thelcof, sell amI may htl'c an mtclcst III the seCUTItles mentioned hClein ThiS market letter I Illtcmtieil and prescntcd mcreh a'l a j!cnerili. 111rl mill nmment.IrY 011 day tn dH) mnrket 11('\'9 (lnd not as n complete annlysls AddltlOJnnl InfOlmntlOn With to lin;. eel1\ltles referred to herem fUl nhhe,llllOn relluest 1i

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