Viewing Month: January 1959

Tabell’s Market Letter – January 02, 1959

Tabell’s Market Letter – January 02, 1959

Tabell's Market Letter - January 02, 1959
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,i Walston &Co. —–lnc —– Members New York Stock Exchange FILE COPY ,, NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND ABROAD TABELL'S MARKET LETTER January 2, 1959 SINGER MANUFACTURING COMPANY Current Price Current Dividend Current Yield Long Term Debt Common 48 2.20 4.6 32,790,000 – '4,50'0; OOn-shE. In our forecast for 1959, outlined in last week's letter, one item ran as follows Many stocks , some high-grade which have been overlooked, which have done little or nothing marketwise for ten years or longer, – are breaking base on the up side. It is this development which Sales, 1957 Net Per Share 1957 358,602,505 3.15 (1) leads to the belief that we will have an,entirely new set of market leaders, many of which have participated only to a limited extent in the advance to date. Mkt. Range 1958-52 493/4 – 29 One stock which might be mentioned in connection with the above forecast is Singer (1) Excludes non-recurring items Manufacturing Co. That Singer represents quality can hardly be contested. It is now the only important domestic producer of sewing machines and it has been the leader in the field for close to 100 years. That the stock has been something less than a market leader is also fairly obvious. From 1952 until recently, it ranged between a low of 29 and a high of 47. By reaching a high at 48, it broke out on the upside of this long tion of as much as 90-95 over the long term. Support is provi d technical indicaotliginal base just under current levels. A cursory glance at Singer's operating record doe prices. Its earnings over the past five years 1957 resultswere 3.-1,-after eliminating nell-re – ite e t 0 stification for higher m in 1953 to 4.25 in 1956. nd 1958 – further decline to the 2.50-2. 75 – Before drawing the obvious it is necessary to stress two facts 1. The reason for recent po rear e competition from imported machines —has been at least pa ti 1 43iAit e. 2. The company's po puts it in a position to diversify into other profitable \ lines, a course which it e de aking under the aegis of a young and aggressive management. In regard to imports, er's family machines, led by the new patent-protected, Slant- o-matic, are now belie to be fully competitive with German and Japanese imported models. In 1958, sales of home machines by Singer have been up 6 over the prior year. If Singer were to regain anything like its former share of the market, earnings from this source alone could increase sharply. In this connection, it is worthy of note, that U. S. retail outlets have been increased some 50 in 10 years and the company is now selling machines and supplies through Woolworth's and other variety stores. Over the long term, however, Singer's attraction lies in still another direction. With its conservatively-stated book value of 69.17 per share and working capital of around 62 per share after deducting debt, Singer is in an admirable position for expansion and diversi- fication into related fields. Two possible outlets for such diversification come to mind first, research and engineering, a field for which the company's long experience in fine machinery eminently qualifies it, and, second, related retailing lines. In this connection, it is interesting to note that Singer probably has more world-wide retail outlets than any other company in the world. The marketing power thus generated could be fantastic. Tentative steps toward diversification have been taken, with the acquisition of a Canadian pulp and paper producer and a small research and development firm. These acquisitions, while relatively small, may signify the beginning of a trend. Thus, Singer appears to present a minimum of downside risk, plus attractive income and capital gains possibilities over the long term. The current dividend, 2.20 per share, provides a yield of close to 5 and, with the favorable cash position, could be increased as earnings improve. The stock is being added to our recommended list for purchase on a long-term investment basis. EDMUND W. TABELL This mnrket letter IS not. nnd under no circumstances IS to be construed as, an offer to scl( 0 I rtlrtM to h II 11 el!ufltJ e ted to herem The infdrmahon A if contp,med herem IS not gunrantc('cllls to accuracy or completeness anrl the furmshlns! thereof IS not, and under no circumstance'! is to be conshued ns, a representa- . n!).i\f(iY 'Vlllston & Co Inc. All expreo;SlOns of OPlnLon are subject to chanJle WIthout notlce Walston & Co, Inc, and OffIcers, Directors, Stockholders and -r-,mpln)'ee'! thereof, pnrchllse, sell and may an mterest 10 the securIties mentIOned herem. ThIS market letter is 10tended and presented merely as a general, mformal commcntary on day to day market news and not as a complete analYSIS AdditIOnal 1OformatlOn 'illth respect to an)' securIties referred to hCT('in wdl be furlllshed upon r e q u e s t ' \\'\, 301

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Tabell’s Market Letter – January 09, 1959

Tabell’s Market Letter – January 09, 1959

Tabell's Market Letter - January 09, 1959
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NEW YORK -. \-.FILElmPV Walston &Co. Inc. Members New York Stock Exchange SAN FRANCISCO LOS ANGELES PHILADELPHIA' CHICAGO OffICES COAST TO COAST AND ABROAD TABELL'S MARKET LETTER January 9, 1959 After almost approaching the 600 objective mentioned in my recent letters, the Do /. Jones Industrial average deelined from a high of 594.31 on Monday to a low of 581. 07 on Wednesday. A rally at the end of the week carried to an intra-day high of 5 94. 8 on Friday, a new high for the average. Probably the market is in need of a consolidating period around these levels. is strong support at 570-560, and any technical decline not accompanied by unfavorable news factors should not carry below that level. Some individual issues have reached up- side objectives, but from a technical viewpoint there are a great many more that indi- cate considerably higher objectives. As always, the action of individual issues will be more important than the action of the market averages, The objective of my recommended list is to select individual issues which should show above average action, The issues recommended are long term holdings meant to be retained six months or longer and are not suggested for trading turns. When object- ives are reached, individual stocks are dropped from the list. In this connection, we are now dropping three stocks Anchor Hocking had an objective of 80-90 and has reach- ed 80 3/4, Container Corporation had an objective of 30-32 and has reached 30 1/4, and Lily Tulip, with an objective of 95-110, reached 106. The complete list follows, together with a separate list of low-priced speculations originally recommended on November 7, 1958. Recommended Price Current Price Current Dividend . /0 Yield American Can 5 Family Finance .,.. Flintkote5 Getty Oil – 4222 46 28 5304 57 rsd 26 vJ 0 2.4 4.0 4.7 -4.2 Gimbel s 27 '\/ 1.80 4.9 Gulf Oil -' Heinz, H.J. 115 56 2.50 2.20 2.0 3. 1 Hercules Powder Hoffman Hooker Chemic V 40 37 1.10 1.00 1.00 2. 1 2.5 2.7 Intern'l Minerals 29 1.60 5.5 Magnavox 52 1.50 2.9 Monsanto Chemical National Distillers National Gypsum s 38 27 42 .40 1.00 2.5 '32 1.00 3. 1 62 2.00 3.2 Newport News Shipbuild. . 47 46 2.00 4.3 Pan Amer. World Air, 15 26 .80 3. 1 Pennsalt Chemical 71 80 1.85 2.3 Philip Morris s 48 64 3. 00 4.7 Royal Dutch 48 48 1. 32 2.8 Shell Transport 22 21 1.04 4.9 Singer Manufacturing 48 53 2.20 4.2 Wilson & Co. 15 34 1. 40 4.1 Recommended Price Avco 9 Chemway 11 Curtis Publish. 15 Decca Records 18 Divco Wayne 17 Fruehauf 17 LOW-PRICED STOCKS Current Recommended Price Price 12 Hotel Corp. 7 12 National Can 14 15 Pacific Pete 18 19 Publicker 11 23 Rayonier 19 20 United Industrial 13 Current Price 8 14 18 13 21 17 I i I I EDMUND W. TABELL ThUj market letter is not. and under no ci'rcumst;ances IS to be construed as, an to sell or sohcitat!6r'l It& The mformatlOn contained herein 18 not guaranteed as to accuracy or completeness and the furmshmg thereof IS not, and under no clreumstances is to be conetrued as, a representa- tion by \I.'alston & Co Inc All expressIOns of opIniOn are subJect to chanRe without notice Walston & Co, Inc, and Officers, Directors, Stockholders and thereof sell and may have an mterest In the securities mentIOned herem ThiS market letter is Intended and presented merely as a Reneral, JtcommenUtry on day to day market news not as a complete analysIS. AddltJona.! InformatIOn wlth respect to any securitJes referred to herem flll nlsherl upon re'1uest

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Tabell’s Market Letter – January 16, 1959

Tabell’s Market Letter – January 16, 1959

Tabell's Market Letter - January 16, 1959
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/!'- / FIJLE COP Walston Inc—- Membe,'s New YOTk Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND ABROAD January 16,1959 A year ago this letter pointed out that market action in December and January seems to follow a pattern. Since 1935, tax loss selling and switching usually has had effect on markets at the end of each year. The following table shows that there has been rally at the end of each year which has carried through into January of the following year even though it has been very small and of a few day's duration in sOITeinstances. The table, based on Standard & Poor's 425-Industrial Stock Index, shows, in columns 1 and 2, the date and price when the average reached its December low. In columns 4, 5 and are date and price of the next subsequent high and the percentage advance. If the low of 'the previous the dateTs noted in colurrii17. Tlie- subs-equent low, the year-end close, and the trend are noted in the last three columns -1- -2- -3- -4Year Date Low Year Date -5- Next High -6/0 Adv -7- Dec. Low Broken -8Subsequent Low -9- -10Year's Trend Close \ \ 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 12/16 12.07 1936 4/6 14.81 22.7 Never 12/21'16.031937 3/6. 18.10 12.9 4/26 12/28 10.03 1938 1/11 11.73 16.9 12/9 12.28 1939 1/4. 13.08 6.5 -1/13 12/12 11.89 1940 1/3' 12.42 .4.5 -1/12 12/23 10.18 1941 1/10. 10.62 -1/21 12/23 8.47 1942 1/5. 9.15 8.0 -3/11 12/1 9.39 1943 6/14 12.58 13.4 Never 12/1 11.06 1944 3/17 12.16. 9.9 Never 12/1 12.64 1945 3/7 14.10 11.6 N1iIer 12/21 16.39 1946 2/2 17.99 9.8 2\(J;iJc 12/1 13.94 1947 2/8 15.71 12.7 Nt/vep) 12/6 14.51 1948 1/2' 15.17 12/1 14.90 1941f-ll8-'-fiill5)ffi4 27 12/1 15.89 1950 12/4 19.17 1951 5 ,1;0J cO ever Never 9.73 8.39 9.92 8.70 8.47 7.54 -'0jJ .4 3.58 16.50 -10.26 13.07 12.06 -10.34 8.78 9.93 11.63 0 13.05 16.79 1.i.3.5 15.18 15.12 Up Down Up Down Down Up Up Up Up Down Up 20.57 Up 24.24 Up 195112/1 1952 12/4 1953 12/29 1954 12/1 1955 12/20 1956 12/4 1957 12/23 1958 12/3 25. 24.5 35.14 47.79 49.05 41.88 55.58 1 7.7 Never ..82 -3.8 3/18 14 27.15 10.5 Never 195 3 38.17 8.6 Never 6 1/3' 48.07-0.6 -1/23 1957 1/4' 49.971.9 ,-1/14 1958 2/4 45.57 8.8 Never 1959M1/12''''' 59.92'' 7.8 22.70 45.71 41.98 26.89 Up 24.87 Down 37.24 Up 48.44 Up 50.08 Up 42.86 Down 58.97 Up , \ wa1 23. 30bn a decisive downside penetration. 20th, 1952, but this is not considered . To date. A number of interesting conUusions can be drawn from the above figures and applied to the current market. For example, if the market has been higher for most the given year, the December low is usually reached early in the month. The reverse usually true if the trend has been down. Thus, in 1957, the December low was not until December 23rd, while in 1958 it was reached on December 3rd. More im- however, is the fact-that in has the beeri' broken after and in most cases, if broken at all, it is penetrated in the of the ing ye,ar. Furthermore, with one exception,an advance of 10/0 or more from the DeceJffi(.el' low has always been followed by an up market. So far this year the market has already advanced close to 8/0 from the December low. Thus, the 1958 December bottom of 55.58 in the Standard & Poor Index becomes an important one to watch. If this low holds for the next six to eight weeks, or if an advance of 10/0 to around 61.00 is recorded, the likelihood of a down market in 1959 becomes less. So far, no deterioration in the uptrend is evident. EDMUND W. TAB ELL AWTamb WALSTON & CO. INC. ThiS mllTket letter is not. Ilnd under no circumstances IS to be construed as, an offer to sell or II sohCltatlOn to buy liny securilies referred to herem The information contained herem IS not guaranteed ns to accuracy or completeness and the furnlshmJ! thereof not, and under no eircumstnn-c!S i to be construed as, a repr!Sentn tl()n by '\\'nlston & Co, Inc. All expressIOns of OPinion arc 8ubJ!Ct to change \\Ithout nollce Walston & Co. Inc. and Officers, Directors, Stockholders and Emll1()yees ther(!Of, purchase, sell and may ha\e an Interest In the s(CUrItIes mentIOned herem ThiS market letter IS mtended and presented merely aj n general, mformal commentary on day to day market news and not as a comlliete analYSIS Additional mformatlOn With respect to any SeCurities referred to herein Will be upon r e q u e s t ' \\ N 30l i

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Tabell’s Market Letter – January 23, 1959

Tabell’s Market Letter – January 23, 1959

Tabell's Market Letter - January 23, 1959
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NEW YORK FILE COpy Walston &Co. Inc Members New York Stock Exchange SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND ABROAD TABELL'S MARKET LETTER January 23, 1959 Statistics BUTLER BROTHERS Current Price Current Dividend Current Yield Long Term Debt Minority Interest Common Stock 39 1. 60 4.10/0 6,504,000 1,156,000 1,016,142 shs, From time to time this letter has pointed out some of the growth prospects inherent in the retailing field. In this field, Butler Bros., with a unique franchise-type operation, appear s to have a good deal of attraction. Butler franchises some 2400 retail varie IY stores known as Ben Franklin Stores. This Sales-1958-E 170,000,000 Earned Per Sh, 1958 – E 3.00 Mkt. Range 1959-58 40 1/2 – 22 1/4 franchise system has numerous advantages, both for Butler Bros. and for the independent owners who operate the stores. The owner has the satisfaction of having his own busines , but has the large buying power of a nationwid chain. Consequently, the average store purchases 800/0 of its merchandise from Butler's own Ben Franklin warehouses, From Butler's pOint of view, the parent company is not committed to tying up capital in expansion. It can open stores as fast as it can find de- sirable operators, A further corollary is the fact that, as additional units are opened, profit margins for Butler expand as warehousing costs are spread over a larger number of units. Sales to franchised Ben Franklin Stores constituted some 710/0 of Butler's total sales in 1957. These sales have shown an increase in since 1949 and current volume is more than three times that of ten years ago. 'E at growth trend has not been apparent is due to the fact that Butler, ed in other retail- ing fields. Some of these fields were relatively d zed capital which could better have been employed in the Ben FrankliJ\0'4rati 'uver the past seven years unser a series of managements, Butler effort to divest itself of less attractive segments of its s investment on more profitable lines, This effort has Corporation which now 9wns . the aegis of Rapid American the outstanding common stock. Butler now consists of the . i ; Scott-Stores, a chain of company-owned variety stores . e Mid-West, and the recently acquired T.G.& Y. Stores, serving the 1Ioth the Scott and T. G. & Y. divisions have proved con- sistently profitable d e eir centralized regional-type operations. The only low profit division remaining i chain of West Coast department stores. Possible future sale of these outlets would provide further funds for expansion. Thus, the Butler story so far has been one of improving earnings by eliminating relatively unprofitable outlets. Under this policy net income has increased from 739 per share in 1953 to 2.74 in 1957, a gain of 2750/0, on an 110/0 increase in sales. 1958 earn- ings are estimated at 3.00, and for 1959 net profits could well be over 4.00 a share. The next chapter in Butler's history will probably be acquisition of other profit- able regional chains such as T.G.& Y. It is felt that these acquisitions can be accom- plished with a minimum of equity dilution. Thus, the earnings trend of the last five years could well be continued. The current dividend of 1. 60 provides a 4.10/0 yield, but this figure is somewhat below the company's usual payout ratio and a slight increase would not be surprising. Further liberalization could take place as earnings expand. From a technical pOint of view, the stock has a possible long term objective of 60, with support just under current levels. The stock is being added to our recommended list and is suggested for relatively good income and capital appreciation, AWTamb EDMUND W. TABELL WALSTON & CO. INC. ThiS market letter IS not. and under no Circumstances IS to be construed UB, an ofter to sell or n soliCitation to buy any secUritieS referred to herem The mformatlOn conltuned herein IS not Jlulll'anteed as to uccurac)' or completencss and the furnishing thereof IS not. and under no Circumstances is to be construed nfl, n reprC'Jenta. tlOn by ,,alston &. Co, Inc All expressions of opinIOn are subject to chnnJe Without notice. 'Valston & Co., Inc., and Officers, Directors, Stockholdcrs and Informal thereof, purchase, commentary on da)' tsoeldl anyndmmarnkyethnaevWe'Sananmd tneroetsat sma the SCCllrJtlC!l complete mentioned herem ThiS market letter IS Intended AddltlOnnl mformation With respect to any and presented merely a5 a general, securities referred to herem will be furnl'lhed upon r e ( l u e s t ' . WN 301

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Tabell’s Market Letter – January 30, 1959

Tabell’s Market Letter – January 30, 1959

Tabell's Market Letter - January 30, 1959
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FILE COpy Walston &Co. Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OffiCES COAST TO COAST AND ABROAD TABELL'S MARKET LETTER January 30, 1959 Since the start of the year the market, as measured by the averages, has held in a relatively narrow trading range between roughly 600 and 580. After reaching my inter- mediate term objective of 600 at the January 22nd high of 601. 74, the average declined to a low of 584.71 this Wednesday. A good part of the decline was recovered at Friday's close of 593.96. It is possible that the market is in need of some consolidation at around present levels, but there is no indication of an important top. A downside penetration of 600-580 tl'ading range would indicate a long as a buying opportunity. Such a correction, if it 'occurs, should not carry fer. There is strong support in the 570-560 range and the minor potential tops already formed do not indicate a decline below that area unless the pattern broadens considerably. The wise st course of action today, in my opinion, is forget about the action of the averages and the general market and concentrate on the action of individual issues. There are a great many that indicate higher levels before the present long term advance is completed. Technical corrections in issues in an uptrend should be welcomed as buyin opportunities. The airlines, for example, have had a sharp advance since the first of the year, but the upside potentials on my technical work are considerably above both the re- cent highs and present levels. PAN AMERICAN WORLD AIRWAYS (28 5/8)on my recom- mended list at an original level of 15, reached a new high at 30 1/8earlier in the month. It reacted to 27 1/4 on Wednesday. The longer term upside potential remains at 40-50 and there is good downside support at 26-24. About the same pattern applies to other air- lines. The group appears to be a good buy on moderate wea The oils, which started to show improving actio e 0 ecbJ.esday's dip, also are attractive at current levels. They have a t'al p nt' bases and could be one of the strong groups of 1959. GULF OILl1 CH (48), SHELL TRANSPORT (21), and GETTY OIL (26 3/8) a on ec ended list. The chemicals also appear tii-De fo I , gte-clinical palterrl6,HERCUL POWDER (54 1/4)which is down I 1, is near strong support levels. PENNSALT CHEMICAL priced. '\. '-Y high of 85 and also appears attractivel There 0 (44 1/8)has, In m '0rQ)t t at ear attractive. NEWPORT NEWS SHIPBUILDING ficlent techmcal correction of its advance to 50 5/8. The company state y t 's 1958 earnings would be above the 4.00 level anticipate earlier. The company' esent backlog extends well into 1960 and earnings of at least 4.00 a share appea 0 be a minimum. The maximum earnings, dependent on new orders from the ship subsidy program and atomic submarines for the U. S. Navy, could be considerably higher. I like the stock at present levels. SINGER MANUFACTURING (49) down from a high of 54 7/8, and MAGNAVOX (51), down from a high of 60 1/2, are close to good support levels and should be bought on moderate weakness. There are a number of other issues not in my recommended list that I would purchase on further weakness. CLUETT,PEABODY (48 1/2), recently broke out of a ten-year trading range between 22 and 50 to reach a high of 53. It reacted to 46 on Wednesday. Would add the issue to the list in the 45-47 area. A rail, CHICAGO, MILWAUKEE, ST-.,-P-AUL-&rPACIF.lC,( 277/8), has bUIlt up a verYInteresting lQng term technical potentral. The recent high was 30 3/8 and the stock has held in the 10-30 range since 1951. Ability to break out of this area would indicate a long term trend reversal. The stock moves in a wide range, but would add it to the list for long term holding if available in the 28-25 area. EDMUND W. TAB ELL WALSTON & CO. INC, ThiS market letter IS not. and under no Circumstances is to be construed as, an offer to sell or n soliCitatIOn to buy any s(!Cunties referred to herem The Information contained herem IS not guaranteed as to accuracy or completeness and the furnlShlllJl!' therC!'O( IS not, and under no CIrcumstances 19 to be construed as, n Teprcsenta tlflll b li\'nJo.tnn & Co, Inc All e'lpresslOns of opllllon are subJect to change Without nobce Walston & Co, Inc, and OfficeI'!!, Directors, Stockholders and Employccs thereof, purchase, sell and may have an mterest in the lIecurities mentioned herein ThIS market letter IS Intended and presented merely as a general, Informal commentary on day to day market news and not us a complete analYSIS AddltJ(lnnl information With respect to any seCUrities referred to herein Will be furlllshed upon r e q , u e s t ' \\N 301

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