Tabell’s Market Letter – May 19, 1961

Walston & Co. – lnc. – – – – – Members New York Stock Exchange FILE COpy NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHJCAGO OFFICES COAST TO COASl AND OVERSEAS TABELL'S MARKET LETTER May 19th, 1961 The market showed excellent technical action during the past week. Cautionary statements relative to the sharp price advance in new issues and obscure over-the- counter stocks resulted in sharp declines in a number of issues of this type, but had no great effect on the general market. There has been a lot of stupid and uninformed gambling in speculative securities. However, the amount of money used in these fast buck operations is relatively small when compared to the turnover in the secur- ities of sound, seasoned companies. 'life believe the market can weather price adjust- ments in overvalued situations without much difficulty. The action of the past week would lead to that conclusion. Except for some weak- ness on Thursday, the market moved higher and closed the week at 705.96 on the Dow- Jones Industrials as compared to 687.91 a week ago. The weeks new' intra-day high was 708.Go.Our Breadth-of-the-Market index also reached new high territory along with the averages. Recent market action continues to verify our conclusion of more than a month ago that market leadership is shifting from the overvalued glamour issues and defensive groups to the more basic, though cyclical groups. This type of action c'ould continue for a long period of time. There is no change in our recommended list since the last compilation of April 21st other than the addition of Carpenter Steel (46) in last weeks letter at a price of 47. This week we are adding Kerr McGee to the list. The stock was split two for one recently. The old stock reached a high of 120. Friday's close was 99and the when issued stock closed at 50. We are much impressed he long term speculative possibilities of this stock and believe it has had a sufficie of its recent sharp advance to warrant purchase. It is a mediuIff5ize 1 y\Me ed oil company and, through the wholly-owned Kermac Nuclear Fu'eJ,ii4S' t factor in the uranium The basic i aila3lE! for perusal at the desk of your Walston representative. – On November 4th, we c endation of stocks selling below 20.00 a share that,from a interesting upside potentials on a percentage basis. It w s str s be bought as a package in order to provide the neces t' 'n a speculative list of this nature. An addi- tional five issue on March 3rd. As of Thursda se average price advance of the first low-priced 4th, as against 180/0 for the Dow-Jones Industrial aver- age for the same pe The five issues recommended on March 4th have advanced 9 as against 4 for the Dow-Jones Industrials. If the market continues to advance it would be expected that this spread will widen. The list is below. Some . -. issues have moved above 20.00 a share, but retention is still advised. Allied Paper American Radiator Avco Burlington Industries Campbell Chiboug. Chicago, Mil., St. Paul Commercial Solvents Divco- V,fayne Flying Tiger Foote Mineral Fruehauf Trailer Getty Oil International Packers Price 11/4/60 10 5/8 14 1/2 13 7/8 18 3/8 5 7/8 15 1/4 19 17 1/8 14 3/4 19 18 3/4 141/4 15 3/4 Current Price Current Price 11/4/60 Price 18 1/4 Kaiser Ind. 8 3/4 12 3/8 15 1/8 Lear, Inc. 161/2 243/4 185/8 McCrory Corp. 13 231/8 18-5/8 Manhattan Shirt- 19 21 9 3/4 National Can 91/4 13 15 5/8 Northwest Air. 15 3/4 28 30 3/4 Pacific Petroleum 10 1/4 12 1/4 18 5/8 Rayonier 16 1/8 211/8 19 3/8 Rohr Aircraft 15 25 25 5/8 Serve1 12 1/8 18 1/8 25 3/4 Sun Chemical 13 5/8 16 7/8 20 1/8 Victoreen Inst. .16518 161/2 20 3/8 Price as of March 3rd, 1961 Adjusted to include price of Phillips- Es;kbardt alii This market letter IS not, and under no Clreumstances is to be construed as, an otter to sell or a BoheitatlOn to buy any r,efcrred to herem. The mformntlOn contalT\jJd herein as to or completeness and the furmshtnp; thereof 18 not. and under no circumstances 18 to be construed as, 11 represcnta- DGWbtJ Wli1eu1 QItIU. Inc AM c(fi'rQoontR) opimon arc subject to change Without notice Walston liHOd'IJ'THbJdml ltlticmAmtRl-s..TStockholders and Employees sell anil' may'llave an mterest in the securities mentIOned herein. ThiS TPfIf; 5'& an9 not as a complete analySIS Addluonni mformatlOn tn\e'ifdel lndIl\-est1'itaiffiMly as a general. .g–.- —- – .. . ,—-.——.——- .,,– ..- – – / –