Tabell’s Market Letter – October 27, 1961

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 October 27, 1961 The stock market sold off on Monday and spent the balance of the week in an attempt at a partial recovery of the losses. The week's intra-day low of 693.77 on the Dow-Jones Industrial average held above the September low of 688.87. Both the Utilities and Rails declined moderately, but at the week's lows of 127.81 and 148.10 were consilOE!Jr1 ably above the comparable September lows of 119.80 and 140.80. The Industrial average has held in a relatively narrow trading area between 714.07 and 688.87 for twenty-five trading days. Prior to the formation of this trading shelf, the Industrials had held in a similar-orange between 733..53-and-7-09. 54–forthirty-trading days.-T–his area was ,-ofcourse, broken on the downside. From a timing viewpoint, several of our short-term technical indicators pOint to a probable end of the current market impasse in the Industrial average in the next week or so. Various trend lines are near converging points and should furnish a more definitEj indication of the hitherto obscure shorter-term trend for the balance of the year. We continue to expect at least a test of the 733.53 high early in 1962. Whether the advance will start from around present levels, or from a somewhat lower level, is still problel1ll1 atical. Over the past three months, while the Industrial averages were slowly drifting 'lower and more issues were declining than advancing, there were a sizable number of issues that moved against the trend. This selectivity will continue. The market is probably at a stage where the technical action of the general market is of much less im- portance than that of individual issues. It is probable that the averages will move up down in a comparatively wide trading area, but be in uptrends and downtrends of their own entirely independent from)He i g \ eral marke t. We have tried to solve the problem of of stocks from which issues are dropped or added -ttilrty-nirie'1ssues nave b 'su' a recommended list oc on warrants. Some – profits. This list is for intermedi new complete list will be a 'la at least six months or longer. A your Walston office early next week. tials over the Ion e -t to the recmme t/'y Pri ce American Viscose 54 Anderson Clayton 42 Cluett, Peabody 77 Colgate Palmolive 48 Diamond National 49 Intern'l Minerals Chern. 49 Johns Manville 60 , Kerr McGee 41 North Arner.Aviation 50 Panhandle East. Pipe L 49 PhiliipsPetroletim 56 Sperry Rand 23 Stevens, J. p. 33 United Shoe Machinery 63 U. S. Plywood 49 Woolworth 86 ed below. Earnings 1961 (E) 1.75 4.50 (1) 5.00 2.70 3.00 3.50 (2) 3.00 3.00 (2) 3.50(3) 3.80 3.35 1.00 (4) 2.40 (5) 4.50 (6) 3.75 (7) 5.00 J. P. Stevens & Co. is a new addition P IE Ratio 30.8 9.3 15.4 17.8 16.3 14.0 20.0 13.7 14.3 12.9 16.7' 23.0 13.7 14.0 13.1 17.2 Anticipated' /. Dividend 2.00 Yield 3.7 2.00 4.8 2.75 3.6 1.40 2.9 1. 60 3 1.60 3.3 2.00 3.3 .80 2.0 2.00 4.0 1.80 3.7 1.70 3.0 stk. 1.50 4.5 2.75 4.4 2.00 4.9 2.50 2.9 (1) Year to end July, 1962. (2) Year to end June, 1962. (3) Year ended Sept. 1961. (4) Year to end March, 1962. (5) Year ended October, 1961. (6) Year to end February, 1962. (7) Year to end April, 1962. Dow Jones Ind. 698.74 EDMUND \'1. TABELL