Tabell’s Market Letter – November 07, 1958

— – 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 November 7, 1958 For the third time since the advance started in April, the Dow-Jones Industrials have broken out of a consolidation area on the upside. The 530-549 range in which the In- dustrials held since October 13th was decisively penetrated and an intra-day high of 559. was reached on Thursday. Friday's close was 554.26. The base formed in the 530-549 area was not particularly broad and the technical upside objective is only about 560. Probably a new trading range will develop around present levels. The longer term trend still appears upward,subJect to the possibility of the usual technical corrections. At the nsk of being tiresome, would again suggest ignoring the averages and concentrate on in- dividua-t ….,. – – ' — Most of the stocks in my recommended list continue to show above average acti lr FLINTKOTE (54 3/4) moved up to a new high at 55 1/2 on the news of the three-for-two split. Would continue to hold it as well as NATIONAL GYPSUM (57), my other represen- btive in the building industry. I still consider the oils and chemIcals to be behind the market. My favorite in the chemical group is HERCULES POWDER (55), but I also like HOOKER (37 1/2) and MONSANTO (381/8). In the oils, GULY OIL (123 5/8) has definitelv broken out of its long trading area and continues to indicate higher levels. I also like ROYAL DUTCH (49 1/2), SHELL TRANSPORT (225/8), and GETTY OIL (27 3/4). In the electromcs group I have advised takmg profits on ZENITH(130 1/2) after its over 100 rise from my recommended level of a year ago. Would still continue to hold HOFFMAN (29 7/8) and MAGNA VOX (41 3/8). The airlines continue to show ex- cellent price action, and while some consolidation may be needed, PAN AMERICAN (21 1/2) continues attractive. Four stocks on my recommended list are in the container. group. They all show nice profits, but I would continue to/L6O'ld CAN (48 3/4), ANCHOR HOCKING (63 3/4), CONTAINER 1/4). GIMBEL (37) has reached a new high at 38 1/8, is advised. One of the slow stocks in our list is UNITED BISCUIT (2W8). this stock may be re- .., . 1 & CHEMICAL (29 1/2) for nearer . YW'S also has been a slow issue, but its eventual upside m Biscuit. Two issues with a high yield and good appreciat FINANCE (291/2) and PHILIP MORRIS (57 1/8). t urrent levels. My representatives in the food group are H.J. c s recommended in last week's letter, and WILSON & CO. (30). e of 100 from our original recommendation, I still counsel retention of \vils Co. lLow-pric ocks have been a feature of recent markets. Issues which have done very little marketwise for ten years or more are breaking out, or are about to break out of long potential base patterns. Listed below are ten low-priced speculative issues that are recommended as a package purchaSe. The basis for this recommenda- tion is entirely technical. The upside potentials on these issues are very large per- centagewise. These upside potentials can be obtained from my Technical Analysis of 1,100 Common Stocks available for perusal in all Walston offices Price 11/7/58 Avco Corp. 9 Cheni.Way —-n-l'/4 Curtis Publishing 15 Decca Records 18 1/2 Divco Wayne 17 1/8 Fruehauf Trailer 17 1/4 Pacific Petroleums 18 1/2 Publicker'Industries 1 1/4 19 1/4 United Industrial 13 High 1937-1957 14 3/8 143/4 ,. –, 26 37 5/8 28 5/8 38 3/8 39 67 44 7/8 15 7/8 Low 1957-1958 4 7/8 6'l/2- 7 3/4 13 3/8 9 5/8 8 3/4 16 1/4 4 3/4 14 5 EDMUND W. TABELL WALSTON & CO INC. , Thl-' m.l! het Ictter not, find under no Circumstances lS to be construed as, an offer to sell or n solicitatIOn to buy any securttles r.efcrred to The LnformatlOTI Jnt.IllH'O hel cln IS not j!uarnntced as to aeem Bey or completeness and the iurnlshlnf(' thcreof IS not, nnd under no circumstances IS to be constrlled ns, n 1111 & Co, Inc All expreSSIOns oj' amnion are subJect to chanl!e WIthout notICe. ,V8lston & Co., Inc, and Officers, Stockholders and Emlll\1\'e… thereof. pllrehae, sell and may have nn mterest III the seCUrltle. mentIOned herein ThiS market letter IS mtended and presented merely as a eneral, IIlf,,, IIlIII COIlHllcntary on dRY to ria)' market ncws And not as a complete analYSIS Additional mj'ormatlon \\ Ith respect to any securities refenoo to herem will be rC'fluest . \\ ' 301