Tabell’s Market Letter – June 30, 1961

Tabell’s Market Letter – June 30, 1961

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FILE'COPY .' Walston &Co. Inc Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER June 30, 1961 With the trading pace dropping to a new level of lethargy, the Dow-Jones bdus- trial average drifted last week. It did, however, manage to hold above the low of 673.49 reached on June 19th. As was suggested last week, two support levels exist – one at 680-670, which ha been reached, and another at 665-650. The market at the moment 'appears to be just abov the upper part of what should be a broad buying zone. However, any mention of the aver- ages at this pOint is even more academic than usual. With breadth-of-the-market having declined for some' six straight weeKS now, it is obvious 'that future upside ,actiVity will be far more selective than has been the case in'the past. The problem will be what stocks to own — not what is the market going to do. A practical example of the importance of selectivity can be found in the action of our recommended list. In order to prepare for an anticipated change in market leadershiF we are, this week, dropping seven issues from the list, replacing them with five others. The seven issues being eliminated are CIT Financial (76 1/2), Carnation Co. (82 1/4), Great Western Financial (473/4), Singer Mfg. (973/4), Standard Oil of Kentucky (823/4) Warner Bros. (78) and Wm. Wrigley (107). These seven issues bring to twenty-one the number of stocks formerly recom- mended in which this letter has recommended acceptance of profits since the first of the year. These stocks were recommended for varying lengths of time, the longest holding period being five years and the shortest around six months. All twenty-one stocks ad- vanced from the original recommendation to the day they were selected for sale, with the largest advance being 363/0 in the case of Magnavox, in Septem- ber, 1957, and suggested for sale last April. The averag d all twenty-one issues was 71/0. Of course, since the various issues were 0 i ally r mended at different L times,their percentage'performance is of n1 -comparedwith-the'perform- – ance of the Dow-Jones Industrials er'. Here the tabulation is significant With only three exceptions, all 0ijh t w IP'!-o d as much or more than the Dow. leading performer was while the Dow was advancing 22/o,an advance ten times as t er reS Magnavox performed 8.1 times as well as the Dow, while eN a dropped this week, i originally suggested in January 1959, and being 05/0 while the Dow was advancing 15/0 — an advance seven times as grea dex. On the average, the twenty-one stocks performed 3.7 times as well Industrial average during the same period. As mentioned above, five stocks are being added to the list. We continue to feel that the airline industry is entering upon a new phase of growth and American Airlines (24) joins United Air Lines on our list. Colgate Palmolive (44), with the bulk of its earnings coming from abroad, appears to be in a position to benefit from the riSing worldwide standard of living. Entry into the proprietary drug field holds promise and eventual improvement of the rather desultory domestic operation could exert a substan- tial effect on earnings. B.F.Goodrich (64 7/8) offers representation in two industries, rubber goods and chemicals. which have not provided much market leadership since 1956. There is evidence, however, that the rather disappointing recent earnings trend may be reversed. The stock has a possible upside objective of 88 to 96. Pullman,Inc. (40;1/8), with an upside potential of 61, is largely a capital goods producer, and should be an important beneficiary of any business upturn. Sperry Rand (27 5/8) has declined from a 1961 high of 35 and, from a technical point of view, the reaction would appear to be at least largely completed. The long range prospects in electronic data process- ing, which should become profitable by next year, are favorable. Other issues,already in our recommended list which appear attractive at this time are Diamond National (40), Ex-Cell-O (39 3/8),General Mills (32 3/4), International Minerals & Chemical (42 1/2) Kerr McGee (45 7/8), J. C. Penney (43), and Woolworth (76 1/2). The complete list is available for perusal at your Walston office. Dow-Jones Ind. 683.96 Dow-Jones Rails 139.47 ANTHONY VV. TABELL WALSTON & CO. INC. ThiS market letwr is not. and under no eircumstances IS to be construed. as, an ,ff,r to sell or B solicitatIOn to buY B!'Y seeUfltJes r.eferred to herem The informabon eontamed herein 18 not guaranteed as to accuracy or completeness and the furnlshmg thereof IS not. and under no clrcumstallces IS to be construed as, a representa tIon by Walston & Co Inc All expressIOns of OPinion are subJect to ellange WIthout notice Walston & Co, Inc, and Officers, Directors, Stockholders and Employees thereof, sell and may have an mterest In the securities mentIOned herem. ThiS market letter IS mtended and presented merely 8S general. informal commentary on day to day market news anq. not as a complete analYSIS Additional mformatlOD With respect to any securities referred to herem will be furmshed upon request. \\ N .301 , June 30,1961 RECOMMENDED LIST OF STOCKS SELLING ABOVE 20.00 A SHARE Edmund W. Tabell Walston & Co. Inc. Close 6/29/61 American Airlines American Broad. Para. American Metal Climax American Optical American Potash & Chern. American Smelt. & Ref. American Stores American Viscose Anderson Clayton Arkansas Louis.Gas Audio Devices Barber Oil Bestwall Gypsum Boeing Airplane Carpenter Steel Caterpillar Tractor Central & South West Chicago Pneumatic Tool Cluett Peabody Colgate Palmolive Columbia Pictures (b) Columbian Carbon Consolo Mining & Smelt. Consolo Natural Gas Daystrom Deere & Co. 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 Corp. Goodrich, B. F. Granite City Steel Great Northern Paper Great Western Sugar. Haveg Industries Hercules Powder Hertz Corp. Heyden Newport Holly Sugar Ideal Cement Insurance Co.of N.A. Intern'l Min.& Chern. Intern'l Tel & Tel Jewel Tea 24 48 3/8 32 7/8 74 55 1/2 66 7/8 84 56 3/8 40 36 36 1/4 60 44 1/4 47 44 1/4 37 1/2 43 32 7/8 64 3/4 43 5/8 27 1/2 61 3/4 26 3/8 55 25 1/2 55 3/8 40 1/2 22 36 3/4 56 1/2 26 39 1/2 45 3/4 69 1/2 81 1/8 30 3/4 44 5/8 88 33 64 1/2 69 63 1/4 46 1/4 55 7/8 37 37 90 3/4 64 1/2 23 3/4 35 3/4 29 7/8 91 1/2 42 5/8 52 3/4 62 1/2 Original Recom. Price 24 45 3/4 24 5/8 54-50 42 7/8 55 1/8 74 (a) 52 3/8 36 3/4 35 3/4 26 3/8 67 1/4 (a) 393/4 (a) 36 3/4 47 30 1/2 40 1/4 28 3/8 56 3/4 43 5/8 21 7/8 52 1/2 20 3/8 51 1/8 45-43 52 3/4 35 1/2 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 79 3/4 32 3/8 56 47 1/8 (a) 63 1/4 37 1/2 57 29 345/8 (c) 80 1/4 65 1/8 23 7/8 30 1/2 26 7/8 78 32 48 50 1/4 S&F Rating B B B B B B A B B A- BB AA A B B AB B B A B B B B B B B A A B A AA A B B A B B B B A A B B B B A Comment Buy-Hold Buy-Hold Buy-Hold Hold for 90. Hold for 60. Hold Hold for 95 -100. Buy-Hold Buy-Hold Buy-Hold Hold Buy-Hold Hold Buy-Hold Buy-Hold Hold for 45. Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold Buy-Hold Buy-Hold Hold for 75 Buy-Hold Hold for 80-85. Buy-Hold Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold for 50. Hold for 90-100. Buy-Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold Hold Buy-Hold Buy-Hold Buy-Hold Hold for 45. Hold Hold for 115-125. Buy-Hold Buy-Hold Hold Buy-Hold Buy-Hold Buy-Hold Hold Hold for 80. — !; –e -2- Johns Manville Kennecott Copper Kern County Land Kerr McGee Lone Star Gas Louisiana Land Explor. Marquette Cement Martin Co McIntyre Porcupine Mesabi Iron Microwave Associates Miss. River Fuel National Aviation Newmont Mining North Amer.Aviation Northern Natural Gas Northern Pacific R. R. Oklahoma Gas & Elec. Pacific Gas & Elec. Panhandle Eastern Pipe Penney, J. C. Phillips Petroleum Pillsbury Mills Pitney-Bowes Pittsburgh Plate Glass Pullman, Inc. Reeves Bros. Reynolds Metals (f) Richfield Oil Royal Dutch Seaboard Airline R.R. Seaboard Finance Southern Calif. Edison Southern NatuiaLGas. Sperry Rand Sterling Drug Swift & Co. Tennessee Corp. Texas Gulf Sulphur Thompson-Ramo Wool. Twentieth Fox United Air Lines United Artists United Biscuit United Shoe Machinery U,S,Borax U ,S, Vitamin Varian Associates Woolworth, F. W. Close 6/29/61 66 845/8 64 1/2 45 7/8 26 1/2 75 1/4 57 35 1/8 34 7/8 116 1/2 41 5/8 39 28 1/4 69 44 3/4 36 5/8 42 5/8 42 1/8 76 1/2 40 3/8 44 59 1/4 57 1/4 52 1/2 65 1/2 39 3/4 22 1/2 493/4 45 3/4 31 7/8 28 1/2 22 1/4 67 1/4 44 1/2., 27 1/4 79 1/2 41 1/4 62 1/4 25 57 1/8 39 1/8 443/4 35 5/8 35 7/8 71 1/4 43 5/8 39 1/2 59 76 Original Recom. Price 60 74 1/8 53 50 23518 (c) 50 1/2 53 1/4 26 (c) 27 3/4 79 (d) 33 1/8 34 1/8 27 3/4 (e) 62 1/2 41 1/2 30 3/8 42 1/8 35 1/4 75 3/8 (d) 47 7/8 41 1/2 53 7/8 445/8 41 693/4 393/4 24 5/8 59 42 (c) 38 1/8 (a) 32.3/8 217/8 (a) 66 38 3/8 27 1/4 69 3/4 44 1/2 50 19 1/8 573/4 36 3/4 30 3/4 32 1/2 373/4 59 37 3/4 37 40 1/8 (d) 69 S&P Rating A B A AAA A B A A- AB AA AA A A A A B BB A A B .- A AB A B A B A B B B B B B A- A- Comment Buy-Hold Buy-Hold Hold for 85-90. Buy-Hold Hold for 33-35. Hold for 82-92. Buy-Hold H')ld for 44. Buy-Hold Hold Hold for 50. Hold for 50. Buy-Hold Buy-Hold Hold Hold Buy-Hold Hold for 54. Buy-Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold for 75. Buy-Hold Buy-Mold Buy-Hold Buy-Hold Hold for 60. Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold for 95. Buy-Hold Hold for 85. Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold for 45. Buy-Hold Hold for 100-105. Buy-Hold Buy-Hold Hold for 80. Buy-Hold (a) – Adjusted for stock dividends. (b) – If rights to buy Screen Gems at 9 used, each 100 shares owns 20 shares Screen Gems now selling at 21. (c) – Adjusted for split. (d) – Adjusted for sale of rights, I (e) – Adjusted for capital gains distribution, (f) – Formerly U. S. Foil B, now exchanged for Reynolds Metflls. i !

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