Tabell’s Market Letter – February 06, 1959

– ——– – – – – FILE COPY &-Walston Co. Inc – – – – – Members New York Stock Exchange NEW YORK SAN fRANCISCC LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST AND ABROAD CHICAGO TABELL'S MARKET LETTER February 6,1959 The Dow-Jones Industrial average broke below the January 29th low of 584.71 to reach an intra-day low of 580.54 on Friday. This technical action, combined with a breaking of the November-January uptrend line, indicates a reversal of trend and decline to lower levels in the general market. As indicated in recent letters, I believe the 570- 560 level in the industrials will furnish very strong support. A full normal technical correction of 33 1/3 to 40 of the fifteen-month advance of 180 points from the October, 1957 low of 420 to the January 1959 high of 600 would bring the average down to the 540525 area. It will be noted that 525 is the level of triple top of the 1953-1957 advance. A 'high of approximately5-25 was-reached- twrc-e-in 1956 antI' ag-aiil-inJline;-195 7-This, te-ch nically, would be a very strong support level. However, unless very unexpected news events should change the picture, a reaction to that level does not appear probable. The averages have not yet built a distributional pattern of sufficient size to indicate an important decline and only a few over-exploited issues have built up top patterns. Most individual stocks indicate the probability of only a relatively mild decline. Believe further weakness should be used to add to holdings in selected issues with favorable long term fundamental and technical patterns. Reprinted below is my recommended list with the exception of one stock which is still a prospectus issue. The issues recommended are for long term holding of six months or longer. Would add Cluett Peabody (52) if available in the 50-47 range, and Northrop Corp. (33) if available in the 33-31 range. A separate list of low-prices specu lative issues is also included Recommended Current Price Price iW\\\ A'n ce Current Price American Can Butler Bros, Flintkote Getty Oil Gimbel Gulf Oil Heinz, H.J. Hercules Powder Hoffman Electronic Hooker Chemical Intern'l Minerals 42 48 &B39 39 ical 46 5'R0! .'WPNi;'wport News Ship. 6 \ – Pan Amer. -World Air 2fr/sY\, 120 Pennsalt Chemical Philip Morris 6 69 Royal Dutch 52 Shell Transport 2-21 39 Singer Mfg. 35 37 Wilson & Co. 29 29 40 38 47 15 71 48 48 22 48 15 52 -41 46 28 76 63 47 21 49 33 LOW-PRICED STOCKS Recommended Price Current Price Recommended Curren Price Price Avco Chemway Curtis Publishing Decca Records Divco-Wayne Fruehauf Trailer -9 15 i8 17 17 12 12 — 14 18 26 21 Hotel Corp. National Can Pacific Petroleum Publicker Rayonier United Industrial 7 14 18 11 19 13 — 7 – 18 14 21 17 EDMUND W. TABELL WALSTON & CO. INC. Thlij marhcL letter is not, and under no circumstances IS to be conRtrucd as, an offer to sell or n solICitatiOn to buy any securaties referred to herem The informatlOn I'ontll.lncd herein 1' not guaranteed flF! to accuraey or completeness and the furnlShmlt thereof IS not, and under no Clrcumstunccs IS to be construed as, a 11011 h) \Vnlstoll & Co. Inc. All expressions of op1Own are subJect to ehnngc Without notice & Co. Inc, and OffICCrs, Dtreetors, Stockholders and ElIlplyccs thereof, pUlchnle. sell anrl may have an mterest 10 the secUrities mentIoned herem ThIS market letter IS Intended and presented merely aq a lI'1formnl ('ornmcntnry on day to day market news not as a complete annlysls Addltlonnl mformatlOn With respect to any securities referred to herem furlllshcd npon request