Tabell’s Market Letter – November 28, 1958

Tabell’s Market Letter – November 28, 1958

Tabell's Market Letter - November 28, 1958
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f' Walston &- Co. – – – – – I n c – NEW YORK Membe1's New York Stock Exchange 1'\ . ..- , 'j' SAN FRANCISCO ' LOS ANGELES ' PHILADELPHIA CHICAGO, ' OffICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER November 28, The stock market covered a broad range of territory during the past few h'ading sessions. Its wide swings both down and up were similar to the October 14th-17th period when the market declined twenty points from 549 to 529 on the Dow-Jones Industrials and then recovered almost the entire loss all in four days. The present swing has been even wider than October. After reaching a new alltime high of 572.05 on Friday, November 14th, the market backed and filled until the end of the next week when the industrials de- clined almost seven points from 566.24 to 559.57. There was a downside gap opening' on Monday and the average dropped to an intra-day low of 543.07. There was a further . decline to.5.38.43 on .Tuesday, butth;.market rallied.sharply to 5).. 50 on Wednesday. '. I After the Thanksgiving holiday, the market again resumed its advance to reach a high of 559.04 on Friday. This closed the opening downside gap from last Friday's low of 558.16 and Monday's high of 554.88. After a more or less straight line advance since April, broad swings up and down are to be expected. The market becomes overbought at times and sharp corrections keep the market in healthy technical condihon. As yet, the market shows no sign of forming a long term top, although it is vulnerable to flash corrections similar to those wit- nessed in the past two months. Until a much broader top is formed by the inability of the market to move above a former high, there is not much sense in trying to guess a top. It seems the wiser course to concentrate on the action of individual issues in an attempt to find stocks that are behind the market both from a fundamental and technical viewpoint, and whose upside potentials over the next six months or longer appear to outweigh the downside. I attempt to do this in my recommended list which is re- viewed below The electronics group continues to show excellent (39 1/8), originally recommended at 22-21, and 0 oRman Electronics 8 cently recommend- ed around 40, should be held and picked up on pric,,- e oils have been slug- gish, but1. att'eJR' a ould be, one of the leading groups for 1959.Tne ISSUeS we ed' ely,Gulf'OII (119.1/2), Royal Dutch (50 5/8) or Shell Transpor g..Q y Oil (26 3/4) are not much above my originally recommende can be bought here for intermediate ter holding. The 'c s S . h Y better action, but still appear reasonably priced. My ch' e owder (59 3/4), recommended at 48, Monsanto Chemical (39) re nd and Pennsalt (75 1/2) recommended at 71. Two recent r 0 dations have acted favorably. National Distillers (29 5/8), advanced from its mmended level of 26 7/8 to a new high at 31 3/8 and continues to \ have long term attraction. H. J. Heinz (65 1/4) moved from 56 to 67, but has a higher potential. My other food stock, Wilson & Co. (33 1/4) reached a new high today at 33 3/ Still advise retention despite the fact that this stock was originally recommended at 15 about a year ago. The building group continues attractive and would continue to hold Flintkote (56 1/2) recommended at 46, and National Gypsum (57 3/4) advised at 42. The airlines have shown above average action and continue to advise Pan American World Airways (22 1/4). I would continue to hold the four stocks in the container group,namel American Can (50 5/8), recommended at 42, Anchor Hocking (69), recommended at 40- 2 Lily Tulip (90 1/2) recommended at 60 and Container Corp. (28 7/8) recommended at 18 Would take profits in Lily Tulip in the 100-110 area and Container Corp. in the 30-32 range. InternahonalMinerals.& Chemical (29 3/ SlUggISh and show,;; no pr.'!i but its long term potential remains interesting. Continue to hold for yield and appreeia;- tion both Philip Morris (59), recommended at 45, and Family Finance (32) recommende at 22. My package of ten low-priced speculative issues recommended on November 10 for long term appreciation have not moved far in either direction. They are Avco Corp. (95/8), Chemway (125/8), Curtis Publishing (15 1/4), Decca Records (19 3/8), nivco Wayne (18 1/8), Fruehauf Trailer (17 1/4), Pacific Petroleum (17 7/8), Publicker Indus tries (12 1/2, Rayomer (18 5/tl), and United Industrials (14). I continue to a VIse pur- chase in a package. I advise adding two more issues to this package, namely Hotel Corp. of America (7 1/2) and National Can (14 3/4). EDMUND W. TABELL WAJ.STON & CO INC Thls market letter 19 not, and under no ClrcUmstances IS to be construed as, an oITer to sell or II, !'OhcltatlOn to buy any seCUrities referred to herem The mformahon contn11lcd herem 1'1 not gUaranteed as to accuracy or compietene-' nnd the furnlshllll' thereof 15 not and under no IS to be construed as, a reprcscnta. t!'m by \Valston & Co, In!' All e,preSSlOns of OPInion nre subeC't to change Without notiCe Walston & Co Inc and Officers Directors Stockholders tI d .ml'loyees thereof, punhnse, 'e11 nnrl mny have 1111 mterest III the mentmned helelll ThiS mnrket ll and m'crc1Y as n gcnc 111 IIlfOl mill commentary on day to UII market news nn.lnot as a complete unlllysls Ad,htwn.il II1fol mahon With respect to IIny re/Crled to hClcm fUI n l1)).)n request \\; 301

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