Viewing Month: October 1958

Tabell’s Market Letter – October 03, 1958

Tabell’s Market Letter – October 03, 1958

Tabell's Market Letter - October 03, 1958
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Walston &Co.—–lnc NEW YORK Members New York Stock Exchange SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO TABELL'S MARKET LETTER October 3, 1958 The Dow-Jones Industrials reached a new intra-day high of 536.82 during the pa week as compared with the previous week's high of 530.86 and the 1956 peak of 524.37. However, as pomted out in an article in the October 1st issue of Forbes, while the thirty stocks in the Dow-Jones Industrial average collectively reached a new high, the action of each stock indIvidually has been quite different. In September, when the average passed the 1956 high, only ten stocks of the thirty were above the 1956 highs. Nineteen were slightly lower or sharply lower, and one was unchanged .The stocks that showed the greatest advance over their 1956 highs were Corn Products and General Foods, both up about 400/0, Eastman Kodak up about 350/0, and Procter & Gamble up 200/0. Three of these are s-tocks. In tfftneavy U. S. Steel and General Electric were in the group of ten stocks that showed gains over the 1956 highs. Among the laggard groups are the oil stocks. Most of the oils reached their hIghs in July, 1957 and their lows in February of this year. The table below shows the price, action of the Standard & Poor's group averages of the three divisions of the oil companies July 1957 High Feb. 1958 Low Oct. 1st Decline Price Decline Recovered Crude Producers 184.1 Domestic Integrated Oils 71.43 Inte rnational Oils 96. 78 113.4 45.74 69.66 38 153.79 36 60.65 28 84.84 57 58 55 '' Made High August, 1956 It will be noted that while all the groups have had percentage price recovery from their lows, the international oils de9tined h 1 their 1956-1957 highs. While the oils have been laggards in the ec al work indicates the probability of improved price action in t termediate term. I be- WIll I The indivIdual pnce dlverse as the table the internatlOnal group has been qUIte 1958 Low Declme Oct. 2nd Decline PrIce Recovered Getty 011 9 1/8 Gulf 011 152 Roya10utch 60 3/8 Shell Transport 29 3/4 So cony Mobil 66 A Stand.OilofCahforma 597/8 Stand. 011 of New Jersey 68 1/2 Texas Company 76 1/2 17 3/8 B 101 37 1/4 17 1/8 441/2 431/4 47 1/2 54 3/8 B 56 33 38 42 32 28 31 29 28 46 120 38 48 47 22 30 49 20 56 82 59 54 78 107 A – Reached high in 1956 B – Reached low m 1957 Texas Company and Standard all of California have shown the best price actlOn m the group. They declmedthe.least percentagewlse and have recovered .themost. Socony , Mobil has been a laggard on the recovery. I added GULF OIL to my recommended list three weeks ago at around 110. The stock had held in the 101-119 range for almost a year. This week Gulf Oil broke out on the upside of thlS long trading shelf and, from a technical viewpoint, indicates higher levels. I suggest you again read my letter of September 12th for additional comment on this Issue. Technically, the oils appear to offer mteresting profit possibihties over the intermediate term of the next six months or more. Three stocks wlth interesting possibll- lties and ,11 at different price levels are GULF OIL (120 1/8) ROY AL DUTCH (48 1/4) and SH8!.I, TB ANSPOB T (22) A S a more speclliatiye sltuation. GETTY OIL (27 1/4) also i; not. nnd under no Clrcumo;tances IS to be construed as, an offer to sell or n sollcltntlOn to bu)o nny 'll'cuntJes referred to herem The InformatIon 1utnHiflllfil'tclli not I-'lIllI nntccd us to accuracy or completeness and the fUI nlshlnJ. 'II.li.cJtfJlm1l-C f IS to be I'onstrued as, a represenln- tW!l bv \\llJ-.(on &. Co Inc All of opinion are suhJect to chanJ.c wlthI)lJl.tYW.l!UjlIj,Um\i&' Co.L,1lbQJln.IL..IOJflcen, Directors. Stockholders and 1,1111'11\'1'''' thtll'''f, J\UILhu'l(', sell and may have nn Interest iO the seellntles mentf)neri-herwnr presented merely al a general, 111(1111.11 I mment 1\)0 on (Ill to m..trl..et news and oat Il'l a complete referred to helelO will be fUI 111)(011 request \\ 301

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Tabell’s Market Letter – October 10, 1958

Tabell’s Market Letter – October 10, 1958

Tabell's Market Letter - October 10, 1958
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. ,5 NEW YORK W—-a–l-s-tIonnc–&—-C–o-. Members New York Stock Exchange SAN FRANCISCO LOS ANGELES – PHILADELPHIA OFFices COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO TABELL'S MARKET LETTER October 10, 1!35 8 , In last week's letter, I mentioned the oil group as a hitherto laggard group that is eginning to show improving technical action. Another group in this category is the chemicals. The Standard & Poor's chemical group index reached a high of 51.54 in ril, 1956, and declined 26 to a low of 37.97 in November, 1957. At Wednesday's level of 46.84, the chemical group index had recovered 630/0 of the decline as compared with a recovery of 110 by the Standard & Poor industrial stock index. The action of individual stocks in the group has been quite diverse as noted in the table below. Reduction l.n,..w.d Chemical erican Cyanamid rican Potash Chemetron Diamond Alkali Dow Chemical DuPont Hercules Powder Hooker Chemical Monsanto Olin Mathieson & Haas I,,,Ill''' Chemical ltllftpl Chemical Carbide r low 1956-1957 1957 High- — -Low 653/4 1291/2 48 1/4 66 3/4 503/8 605/8 827/8 2493/4 51 1/2 52 1/4 525/8 647/8 71 510 77 1/4 83 1/4 1333/8 45 3/4 68 1/2 33 1/8 333/8 30 297/8 49 160 3/4 35 22 1/2 297/8 311/2 48 1/2 285 45 1/4 545/8 83 DeCline 30 47 31 50 40 51 41 37 31 57 43 51 32 \Y — Oct. 9th Decline Pri-ce .. — RecoverecF– 71 7/8 943/4 52 1/2 49 373/4 43 663/8 204 47 1/2 35 1/4 373/4 1l2 /4 80 115 1/2 131 43 128 47 38 43 51 49 78 43 35 28 93 69 63 89 64 44— – Air d amid have the best record. They declined the ast and have mo t heir entire loss. If it were not for the above aver- e performance of s is , the chemical group index would have shown a much oorer performance. . 1956, most of the chemical stocks have been among the st performers in e market — not only from the viewpoint of the steep decline f-rom high, but also in their mediocre recovery from the lows despite the sharp rise in the Ige,neral market since the first of the year. However, the technical action of many of the issues in the group is beginning to show definite signs of improvement. Chemical companies have been plagued since 1956 lowered profit margins which is the main reason for their poor performance. There some ind1cations that this situation is changing for the better. There have been indi- Ic,us of improving profit margins in the general business pattern. The third quarter 1,rnLnP''; reports of the chemical companies will be scanned eagerly to see if there are as t tangible signs of this development in the chemical industry. From a technical viewpoint, quite a few of the chemicals now appear to be a pur- I,b for long term,holding. HERCULES.POWDER-(48 1/8) 1S showing favorable technical lacuu'n and I am adding it to my recommended list. Earnings have held up comparatively for the industry w1th 89 a share shown for the first six months of 1958 compared 1.03 in 1957. Company faces better prospects for the second half of 1958 due to elief from plant start-up expenses and the contribution to sales made by the firm's new stic, polypropylene.According to management, this product opens a whole new field of stic chemistry. This company will be reviewed in more detail later. The technical pat- rn is good. An upside penetration of the broad 35-51 range ,in which the stock has held since early 1955, would indicate an ultimate potential of 75-95 from a technical viewpoint. Other attractive technical patterns in the chemical group include HOOKER (35 1/2) SANTO C (387/8) and PENNSALT CHEMICAL (71). The stock of a ;;HllalJ''I –,

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Tabell’s Market Letter – October 17, 1958

Tabell’s Market Letter – October 17, 1958

Tabell's Market Letter - October 17, 1958
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I NEW YORK Walston &- Co. Inc Members New York Stock Exchange SAN FRANCISCO LOS ANGELES PHilADELPHIA OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO TABELL'S MARKET LETTER October 17, 1958 The stock market covered a wide range of territory in the past week. After reaching an intra-day high of 549.71 on Tuesday, the Dow-Jones Industrials dropped twenty pOints to an early Thursday low of 529.42. This loss was almost entirely re- covered at Friday's high of 548.97. It is necessary to go back to the hectic down mar- kets of October a year ago to find a swing comparable to the forty-point range of the past three trading days. Percentagewise, the decline of the past week of 3.6 was the steepest decline witnessed since the present advance started in April. Has it any important technical significanc-e- From both a shorter term' and -iilt'errmediate term-poiht'Of view;-itTS a'bit too soon to answer that question definitely. Action of the market in the 550-530 range in the next few days should furnish a clue. Inability of the market to move out of this area on the upside would indicate the possibility of a potential top formation, and the end of the first phase of the advance. From a longer term point of view, I do not think last week's decline has any great significance. From a technical viewpoint, I think the market is headed higher over the long term. The graphs of the averages indicate this, but much more important is the fact that the graphs of the great majority of individual stocks have favorable long term pat- terns. The conclusion to be drawn from my technical work is that we are in a major upswing that will continue for quite some time. The only que stion is whether the straight line advance is to continue with only minor interruptions or whether we are near the end of the first phase of the advance, with the necessity of a further technical correction and some consolidation before the long term advance The base formed in the Industrial average in t 4 0 is resumed. r.nge during the six- month period between October last year and April 490 followed by a later 530-540. The Industrials r hesitated only momentarily. By mid-July dva a Wd t as of 480jective in June and med and the market has' Ii -novl'moved-ahead to-sH-ghtl-y above the-5-30 -5 – t ntia – .' e-time.-table-.oCtheadanc.e…… – has been greatly accelerated by the ticipated. It appears that e r r ery in business than generally an- 9Ml1ls will be near a new peak and that earn- ings in 1959 at new this rapid improve n in5il\s e of the market may have discounted e present level of prices. It would be a construc – ive technical pat . for a while in the 550-500 level and then re- sumed the broad a n at ter date. During this resting period, individual issues could move ahead Whil rest of the market consolidates. A consolidation from around present levels woul e logical. The other alternative is for the advance to continue with only minor interrup- tions. Many issues have somewhat higher longer term objectives and the entire advance could be accomplished in a relatively short period of time with a probable objective of 60(. This letter has taken the position that it is probably wiser to ignore the averagE s and to concentrate on the actlOn of individual issues. This has resulted in some worth- while upward moves in most issues m my recommended list. I would continue this policy regardless of the near term action of the general market. The main trend is, in my opinion, toward higher levels regardless of possible interruptions. No major decline appears probable at the moment. Before such a development could occur it would be necessary for therna,rket, fr-om a technical viewpomt, to form a major distributional top. This would take time and there are no signs at the mon;'ent of even th'e 'start of such a- – pattern. The market could, of course, have a technical correction. It would be normal technical procedure to have, at some time, a 300/0 to 40 retracement of the advance froIT the lows. That would mean somewhere around the 500 level in the Dow from present levels. With the longer term trend toward higher levelS, I would ignore such possibilitie and concentrate on individual issues. EDMUND W. TABELL WALSTON & CO. INC. ThiS market It'ttcr 15 not, nnd under no Circumstances IS to be construed as, nn offer to sell or n 'OilCltatlon to buy nn) 'CCUrltIC5 referred to herein The Information umtnmed hel em IS not gunrnntcc(j as to nccurncy 01 (1)rnllletcncss and the furnIshing thereof lS not .md under no IS to be construed as, It \u,u h & Co. hlL All C'(prCS910ns of oPInIOn nre '1ubecl to chnnJ!C WIthout 1l0tlce WnI ton & Co. Inc, and QITlee15, DIrectors, Stockholders and thercof, purchase, sellnnd may have an Interest In the seCUrltJe; mentioned helcln ThiS market letter IS mtended and presented merely as 8 general, lllfurlllltl eommentnry on dn)' to da market nc\\!, ami not as a complete an.dysls Addltlonnl lllfOimatlon \\lth respect to nny ;ecuntles referred to herem WIll btl IIpon request \,;.; 301

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Tabell’s Market Letter – October 24, 1958

Tabell’s Market Letter – October 24, 1958

Tabell's Market Letter - October 24, 1958
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r — 0..- NEW yeRK Walston &- Co. – – – – – I n c – – – Members New York Stock SAN FRANCISCO, Les ANGELES PHILADELPHIA OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO. TABELL'S MARKET LETTER Octeber 24, 1958 With velume centracting semewhat, the Dew-JQnes Industrials clQsed lQwer en th week. Friday's clQse was 539.52 as cempared with the previQus Friday's clQse Qf 546.36 While there were wide mQves in special issues, the general market held in a relatively rQW trading area. I believe that this trading range can centinue fer a lQnger peried ef with the Industrials hclding within the cQnfines ef the 550 high and 530 lew reached during the hectic feur-day trading swing ef Octeber 13th to. 16th. There have been two. previQus IQng trading areas since the present advance ed in April. Frem mid-June to. mid-July the Industrials held in the 470-485 range and fer almQst the entire mQnth Qf August, the average held in the 500-515 area. On the previeus eccasiQns, the mark-et breke' Qut area' Qn the upside.- The-dire Qf the mQve Qut ef the present trading area is, Qf ceurse, net yet knewn. It is PQssible an intermediate term tep may be fQrming instead ef a cQnsQlidating peried. SQmewhere aleng the line there will be a technical CQrrectiQn Qf the advance frQm the lQWS Qf last Octeber. If a dQwnside breakQut takes place, it CQuid happen at this time. Regardless Qf shQrter term gyratiQns, hQwever, the majQr trend is upward. ;'UIll'''1 grQups are appreaching their upside ebjectives, but many ethers are in the early stages Qf an impQrtant rise. The technical actiQn Qf these individual grQups is much mQre im- PQrtant than the actiQn ef the general market averages. BelQw is a brief summary Qf the technical pattern ef seme Qf the mere impQrtant greups. AIRCRAFT – With the exceptien ef BQeing, which IQQks h1gher, there is no. indicatien Qf any impQrtant immediate meve in th1S greup. – A strQng grQup with the prespects indicating s to' add to. hQldings. Pan American Werld andfttmer c n Use minQr dere my favQrites. ALUMINUM – Prebably need SQme cQnselidatiQn, re structive fer lenger TOMOBILES – A deubtful picture here wiU exceptiQn ef General MQtQrs. r ter; Qmpanies, bayeJeacaed their side ebJ ectives and shQuld grWPs appear to' Qffer better prQfit PQss1b11- s. ILDING E in this grQup with SQme issues shQwing much FlintkQte, NatiQnal Gypsum, Bestwall Gypsum, yare shQwing abQve average actiQn. '–.J.''''11 Qf this grQup imprQving rapidly. See my letter Qf Oct. 10th stlrOllg;gf'QUIP but prQbably in need Qf cQnsQlidatiQn. I''c'-u'r-r-'-'''v''el-s-. – The grQup still IQQks higher. Gimbel BrQs. shQuld be bQught hall Fie1d and May al so. app e ar a ttr a ctiv e DRUGS – LQQk high enQugh fQr the mQment and in need Qf cQnsQlidatiQn. PQssible except- iQns are AbbQtt LabQratQries and BristQI-Myers. ELECTRICAL SUPPLIES – PQQr relative strength actiQn. No. sign Qf an immediate mQve. – Need SQme cQnsQlldatiQn. LQng term patterns gQQd. – BQth these grQups have abQut reached upside Qbjectives. Hemz appear attractive, hQwever. – GrQup is in earlier stages Qf an advancing phase. CQntinue to' favor American g. MACHINERY – Individual issues have quite different patterns. Many issues have reached ectives and need cQnsolidation;—' — – The group indicates higher levels. 0. 1mmediate mQve indicated. – Move may not be imminent, but huge base patterns have been formed with much er potentials. Could be amQng leading groups of 1959. InternatiQnal oils such as Royal ch, Shell Transport, Gulf and SQcQny are favQred. Some speculative Canadians CQuid – In a slow uptrend. Entirely a matter of individual issues. MQst steels have reached unside cbjC'ctives, should consQlidate and form new ntU,rn,;. I ,nnd nndel nn 'Ill I It, he, I I ,h til 11,,, 1 .!l III '1 ,lllltntlfHl to hOlY .un ;('rUll!ll'-. 1,f( red tu herelll The wfrlll'liln 1 gwllllntl'e.j t .11 \ ' ,mpll'l( il' .11l tl1f fill nl Illn. I J (I (' ,f I, t''o \1''''f!;;1I ued nI JilL All If llJl\lOlll .Irf til ,h,llIt 111\,11 1l1'tI('C ll.Y!lIJJ'ill.\llll..L/hW St,hhuldel an.1 1 hn..(' ,,,II HI,\ m h.1\(' .In mtl'I.. t III tlw CltllltiC lll… tu 'I''d II()ClIl merely I.. 1\ geller.1I 01 tn ,I 'v /Il,,1 h('t lid noli n-. ,I (Il!lllol(tl' ,\,1.111 Willi to helelIl Will I.e .\ Jill

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Tabell’s Market Letter – October 31, 1958

Tabell’s Market Letter – October 31, 1958

Tabell's Market Letter - October 31, 1958
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NEW YORK Walston &Co. – – – – – l n c – – Membe..s New YOTk Stock Exchange SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO TABELL'S MARKET LETTER October 31, 1958 The market continues to hold in the broad twenty-point trading shelf bounded by the October 13th intra-day high of 549.71 and the October 15th low of 529.42. This range was tested this week on the downside at Tuesday's low of 530.94 and now, three days later, is being tested on the upside. The intra-day high on Friday was 546.27, but the closing tone was weak. As noted in last week's letter, this is the third hesitation or consolidation phase that has been witnessed since the present advance started in April. Both the June-July trading shelf and the August trading shelf were penetrated on the up- side, and the market continued ahead to new highs. Whether the present situation will resultin.another.upside,.penetration is.noLyet clear .but.the.trading shelLis-Ilot very broad and is not of long term importance, regardless of the direction of the penetration. An upside penetration would probably result in a further advance to 555-560, and a down- side penetration would probably result in a decline to the 520-510 area. In any event, the long term trend appears to be upward. As I have noted many times before in this letter, the action of individual stocks is much more important than that of the averages. I am adding another stock to the recommended list. A brief write-up follows H. J. HEINZ COMPANY Current Price Current Dividend Current Yield 56 2.20 3.9 As this letter has often pointed out, the term growth industry is a much abused one. One often disregarded fact, for Long Term Debt 20,766,663 Minority Interest '11,058,319 3.65 Cum. Pfd. (100 par) 75,160 shs. Common Sto.ck Sales,- 1958 Sales, 1957 Earnedd Per. Sh Earne Per. 1, 688 , 897 sh s. 2 9 3 , 810-, r\\\ W '\\ 5 I exampl,e, which is rathe stabln-w t,hr co hhY ca take on real charW1t he, ansported abroad where ket atlon may be lower. Su d ' he f d ' J.WJU;'!-'y,d – ft ' is fact that len-d-s H. J. on stock its chief attraction. Every American housewife is J.al.lu.ua-r WI'th He'Inz , 57 Van'et 'Ies. F ew, however, are aware of the fact that Heinz' United Market Range 1956 6- States operations are a comparatively in- Not e All fI' gures cons t ed. FI' sca1 Y1ear IenhdsldApril. bout 48 of common C ose y e eSaigrnnIifnigcsa nt part pOlnt 0 fofv'tIheew c . oFmopraenxyafmropm1e , an0 f the 9 3 ml'III'On earned after t axes '1958 10 , some 7.6 million originated from foreign subsidiaries. Furthermore, the real growth shown by foreign operations has been maske in recent years by a somewhat less impressive rate of domestic earnings. Heinz' for income has more than tripled since 1953, and operations continue to expand. The cO.IDIlarIJf' major subsidiary, located in the United Kingdom, has recently opened a new factory and an increased rate of sales is indicated. Australian operations have turned in an record despite a rather severe recession in that country, and with recovery pending, should advance sharply in 1959. A new subsidiary has been opened in Holland and a substantial sales volume is expected in the Benelux countries and eventually in the European C!mmon Market. – …… ' – -,.' The combination of high quality (dividends have been paid each year since 1911), a stable United States operation and excellent foreign growth prospects make Heinz suit- able for investment in all types of accounts. Earnings for the fiscal year ending April 30, 1958 were 5.36, down from 6.12 in the prior year. With improved conditions abroad, it is expected that per-share results will return to around the 6.00 level in the 1959 period, and eventually show further expansion. The 2.20 dividend affords a 3.9 ld', not overly small when conSidering quality and the possibility of an, increase at e in the future. From a technical point of view, the stock has held in the 60-44 range years. An upside breakout to 61 would indicate 75-100, but the pattern may broaden. stock is being added to my recommended list. of OlltnlOn are mayan Interc'It m market nc\\.s and not flS a nnd as a general, hereLn wlll be WX 301

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