Tabell’s Market Letter – October 03, 1958

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