Tabell’s Market Letter – April 21, 1961

Walston &Co. Inc Members New Ym-k Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER April 21,1961 The market closed lower on the week after reaching a fractionally new intra-day high at 700.75 on Monday. The week's low was 678.79. The support zone is 680-660. A decline to the lower part of that area would be a 5 correction which would be all we would expect unless the international news turns sharply unfavorable. After a week back in New York, and after a concentrated study of our various nical gauges, I find that there is little change from the longer range market pattern en- visioned in early March. The Dow-Jones Industrial average has moved above the August 1959 and January, 1960 highs, but .such a move was anticipated.and other.averages .had a – ready moved into new high territory earlier in the year. Many individual issues have reached new high territory and a few have already reached their upside objectives. How- ever, there are still a sizable number of issues that appear to have good appreciation possibilities over the intermediate term. The bull market that started in late October is now approximately six months old. It might be interesting to compare the present market at the six-month stage with the con – parable point in the three previous upswings since 1949. Date of High Price Percentage Mar-ket Low Price Six Months Later Advance 1949-1952 June, 1949 160 205 28 1953-1956 Sept. 1953 254 303 19/0 1957-1959 Oct. 1957 416 455 9 1960- Oct. 1960 565 700 24 Volume has increased shar.ply since October, pear. Volume figures for the 1949-1952 rise are not avai I f!t w'volume for the previous 25 weeks is listed below tn much as it would ap but the tota .he market reachec its low, and for the date approximately six months 25-VVeek ix h Low – – Volume -c' ,jLate Sept. 1953 i\\\ '- ,pr Oct. 1957 \0Jc9 0 280 Oct. 1960 3 \ – 512 –rncrease– 36/0 10 42 Millions of Shares In the 19 ume and prices did not increase sharply until later in the move. While 1 e risen sharply in the last six months, it still has quite a bit further to go befor' alling the total advance in volume on the two previous upswings. Low 25- ek Volume High Volume Date Increase Time Period Sept. 1953 154 395 March, 1955 154/0 18 Months Oct. 1957 Oct. 1960 255 470 360 512 In Millions of Shares March, 1959 April, 1961 84/0 17 Months 42 6 Months To Date It will be noted that in both the 1953-1956 rise and the 1957-1959 rise, volume reached a high considerably before the aver.ages reached their high. In summary, the rise so far has not been too far out of line with the three previou advances since 1949. Four issues in our recommended list have reached the upside objectives onour technical work and are being removed from the list. Two are long-term holdings of over six month s. They are Magnavox (88) which reached a high of 92 3/8 during the past week. This issue was originally recommended at 19 and as recently as two weeks ago,at 72. It appears high enough at the moment. The other long-term holding is VVinn-Dixie (33 3/8) which reached its 32-34 objective at the high of 33 1/4. It was originally recommended at 22 1/2. The other two issues were recommended on December 30th, 1960. Crown Cork & Seal (82 1/2) reached a high of 84. The original recommendation was 43l71l- City Products (65 1/4) reached a high of 693/4. It was recommended at 44 3/4. VVhile neither issue has been held for six months, those who can afford short term gains may find better opportunities in the new edition of our recommended list which will be avail- able for perusal at the desk of your VValston representative early next week. Dow Jones llirt. EflMUlq-J) 7V, . D ThIS k t letter not Ilnd underl)o C1T'Wl)lstances is to be construed as, an or completeness and the l;(\l!I 11 l'ljq, referred to herem The mformatlon \g)stances is to be construed IlS, 11 rcpresentll All cxpres'Hone- Of-opinlOn are subJect to ('hange Without notice 11 s on & Co, nc, tnd Officers, Directors, Stockholders and 1 ployecs thereof wll and mny hlle an interest In the securltlcs mentioned berein This wer! nt mtended Ilnd presented merely a.s '!- gencrnl. on day to day market ne'\Vll not as n complete analysis ArldltlOnlli miormntlOn with respect to any BccurltiC!l referred to herem \t.Ml uponrequest ! , . . . . . — -. ., – . – –. —.–' — .' April 21, 19611, RECOMMENDED LIST OF STOCKS SELLING ABOVE 20.00 IA SHARE Edmund W. Tabell Walston & Co. Inc. I Close 4/20/61 American Broad. Para. 583/8 American Metal Climax 293/8 American Optical 63 1/2 American Potash & Chern. 54 3/4 American Smelt. & Ref. 65 American Stores 83 1/2 American Viscose – Anderson Clayton 40 5/8 Arkansas Louis.Gas 44 Audio Devices 31 3/4 Barber Oil 63 1/4 Bestwall Gypsum 43 1/4 Boeing Airplane 44 1/4 C I 'F Financial 81 1/4 Carnation Co 85 Caterpillar Tractor 34 Central & South West 39 7/8 Chicago Pneumatic Tool 36 Cluett Peabody 63 Columbia Pictures (b) 31 1/4 Columbian Carbon 59 Consol.Mining & Smelt. 241/2 Consol.Natural Gas 575/8 Daystrom 26 7/8 Deere & Co 56 1/2 Diamond National – – -. Dome Mines Eastern Gas & Fuel Electric Storage Battery EI Paso Natural Gas Ex-Cell-O First Charter Financial Food Machine Chemical Ford Motor Freeport Sulphur Garrett Corp. General Amer. Transport. General Mills General Precision Equip. Georgia Pacific Plywood Granite City Steel Great Northern Paper Great Western Financial Great Western Sugar Haveg Industries Hercules Powder Hertz Corp. Heyden Newport Holly Sugar Ideal Cement Insurance Co. of N.A. Intern'l Min. & Chern. International Tel & Tel Jewel Tea Johns Manville 21 37 3/4 59 1/2 27 3/4 39 49 1/4 71 82 7/8 32 5/8 51 80 1/4 31 3/4 68 67 7/8 45 5/8 61 1/2 49 1/2 31 3/4 122 91 3/4 671/4 28 1/4 30 1/4 27 1/8 94 1/2 49 3/4 58 63 3/8 66 5/8 Original Recom. Price 45 3/4 245/8 54-50 42 7/8 55 1/8 77 3/4 523/8 36 3/4 35 3/4 26- 3/8 70 39 3/4a) 36 3/4 67 66 1/4 30 1/2 40 1/4 28 3/8 56 3/4 21 7/8 52 1/2 203/8 51 1/8 45-43 52 3/4 —-35-172 — 25 1/8 29 3/4 54 28 35 3/4 29 1/8 60 3/4 69 1/2 24 7/8 51 7/8 793/4 32 3/8 56 47 1/8a) 37 1/2 57 31 1/4 29 86 5/8 80 1/4 65 1/8 23 7/8 30 1/2 26 7/8 78 32 48 50 1/4 60 S& P Rating B B B B B A BB ABoO B A A A B B B B B A B Comment Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold I Hold for 95-100 l-Buy-Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold Buy-Hold Hold for 85-90 Hold for 105-110 Hold for 45 Buy-Hold Hold for 47 Buy-Hold Buy-Hold Buy-Hold Hold for 75 Buy-Hold iB Hold B Buy-Hold IB Buy-Hold B I Buy-Hold A Buy-Hold Hold A Hold for 90-100 B Buy-Hold A Buy-Hold A- Buy-Hold A Buy-Hold A Buy-Hold B Hold B Hold B Buy-Hold B Buy-Hold Hold for 60-65 – B Buy-Hold B Hold A Hold for 115-125 A Buy-Hold B Buy-Hold B Buy-Hold Buy-Hold Buy-Hold B Buy-Hold B Hold A Hold for 80 A Buy-Hold – -2- Original Close Recom. S&P I Johnson & Johnson Kennecott Copper 4/20/61 93 3/4 87 1/4 Price 74 3/4 74 1/8 Rating A B I Comment H, old for 110 uy-Hold Kern County Land Lone Star Gas Louisiana Land EJ!Plor. Marquette Cement 74 275/8 69 3/8 56 53 235/8 50 1/2 53 1/4 A AA A H, old for 85-90 H, old for 33-35 H, old for 82-92 Buy-Hold Martin Co 34 26 Hold for 40-42 McCall Corp. McIntyre Porcupine Iron — Microwave Associates Miss.River Fuel National Aviation Newmont Mining North Amer.Aviation 55 297/8 29 1/4 273/4 , 118 3/4 -. ,,— 79(c) 47 83 1/8 39 1/8 341/8 27 1/4 27 3/4 70 1/4 62 1/2 46 1/8 41 1/2 B B A A- H, old for 60 Buy-Hold .. —I Hold — — – – – — , I Hold for 65-75 I Hold for 50 I B, uy-Hold Buy-Hold I Hold Northern Natural Gas 38 1/2 30 3/8 A- Hold Northern Pacific R.R. 437/8 42 1/8 B Buy-Hold Oklahoma Gas & Elec. Pacific Gas &Elec. Panhandle Eastern Pipe Penney, J. C. Phillips Petroleum Pillsbury Mills Pitney-Bowes Pittsburgh Plate Glass 39 77 1/2 50 3/4 397/8 59 47 3/8 50 1/4 71 3/4 35 1/4 75 3/4 47 7/8 41 1/2 537/8 445/8 41 69 3/4 AA AA A A A A H, old for 54 Buy-Hold I Buy-Hold I B, uy-Hold Buy-Hold I Buy-Hold I B, uy-Hold Buy-Hold Reeves Bros. (d) 23 1/2 24 5/8 B- uy-Hold Reynolds Metals 50 1/8 59 B uy-Hold Richfield Oil Dutch- Seaboard Airline R.R. Seaboard Finance Singer Manufacturing Southern Calif. Edison Southern Natural Gas 102 41174 31 5/8 27 3/8 81 1/2 68 3/8 43 1/8 84 A -'12'- – – 32 3/8 22 1/4 48 66 38 3/8 B B A A- Hold for 120-130 — – , Buy-Hold I H, old for 34 H, old for 90-95 B, uy-Hold Buy-Hold Standard Oil of Kentucky 71 1/2 70 1/2 A Buy-Hold Sterling Drug Swift & Co. Tennessee Corp. Texas Gulf Sulphur Thompson-Ramo Wool. Twentieth Century Fox 83 43 7/8 65 245/8 71 1/2 54 7/8 69 3/4 44 1/2 50 19 1/8 573/4 36 3/4 A B A B A B H, old for 100-110 Buy-Hold I Hold for 85 I B, uy-Hold Buy-Hold I Hold United Air Lines United Artists 47 1/4 38 1/8 30 3/4 32 1/2 B B Hold Hold for 45 United Biscuit 38 37 3/4 B Buy-Hold United Shoe Machinery 66 1/2 U.S.Borax 455/8 59 373/4 B B Hold for 100-105 U. S. Vitamin – – ' V a r I a I i -Kssociates'' 44 7/8 37 A ;Buy-Hold Warner Bros. Pictures Woolworth, F. W. 65 1/2 67 3/8 527/8 69 B A- Hold for 75-80 Wrigley, Wm. Jr. 105 99 B fIold Zenith Radio 137 1/2 991/4 (a) – Adjusted for stock dividends. A Hold for 170 I I (b) – If rights to buy Screen Gems were used, each 100 shares owns 20 shares Screen Gems now selling at 19 1/2 (c) Adjusted for. sale of, rights. (d) – FormeI1y'll;5 Foil B, now exchanged for Reynolds Metals. I, I – ……..