Tabell’s Market Letter – December 08, 1961

Tabell’s Market Letter – December 08, 1961

Tabell's Market Letter - December 08, 1961
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.. fILE COpy Walston &Co. —–Inc —– Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CKiCAGO OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER December 8, 1961 Lespite the fact that the various averages reached new high territory at 741.30 less than a month ago, the stock market has not been a one-way street for the last five and a half years. 'Ffie…1.GHg.-ierrp. advance market started twelve and a half years ago at 160 in the Dow-Jones Industrial average in June, 1949. From that date to early 1956, the market advanced 228, with most groups and individual stocks partici- pating. After advancing 228 from the June, 1949 low, the Dow-Jones Industrial average reached a high of 524.37 in P.pril, 1956 .It was notnntil September, 1958, almost two and a half years later, that this high was bettered. If one had bought a representative list of investment stocks at around the highs of five and a half years ago, how would he have fared at today's prices In that five and a half year period, between 1956 and 1961, the Dow-Jones average of 30 industrial stocks has advanced only approximately 37,as -agairi t 228 advance in the 1949-1956 period. In order not to handpick our list to suit the purpo e we have selected the thirty Industrial companies in A.merica with the biggest sales in the year of 1960. This list was taken from a compilation made by Fortune Magazine and in- cludes only industrial companies, not banks, insurance companies or utilities. Western Blectric, an i\merican Telephone subsidiary, was included in the list of the thirty big- gest. In the list below we have substituted American Telephone for Western Electric, which has no public market. Of these thirty stocks, sixteen are included in the Dow- Jones Indus.trial average. The list is arranged according to the best price performance since the April 1956 highs. Prices are approximate, but have been adjusted for splits, stock dividends, etc. , Inter. Bus. Machines .rocter & Gamble Armour Amer. Tel & .Tet Goodyear i\Jational Dairy Lockheed Air Ford Motor Firestone Tire Texaco Intern'lHarvester U. S. Steel Boeing Air -;eneral l!.lectric ;eneral l\'lotors 26 96 269 32 38 18 50 178 38 43 60 134 123 40. . 42 022 . 44 38 24 \). em Steel cO ont 1 a Stand. Oil of Cal. 41 230 55 43 238 55 Union Carbide 130 129 2 4 96 Swift & Co. 46 43 3 78 Stand. Oil of Indiana 60 50 3 51 42 Stand. Oil of N.J. 60 49 2 82 32 Socony Mobil 65 50 38 49 29 General Dynamics 42 27 63 79 25 Chrysler 75 48 46 57 24 Sinclair 66 37 19 13 5. 5 3 – -1 -7 -17 -18 -23 -36 -36 -44 The list has gained 58 better than the gain of 37 in the Dow- Jones average. However, the average does not include 1. B. M. If we exclude I. B. M., the rise was 41, which is more in line with the average performance.owever, the selection of individ,ual a purchase of the f.Hst a differentce. eXfa1m25P;e, u have resu te 10 a percen age gam 0 -/0. An investment of 1,000 in each issue, or 15,000 total, would have a value of 33,750 today. Bven without r. .9qO as seeOHa an gri oa J j;lJl rcha se prj If, however, the investor bought the in the list, he would have found that his original 15,000 invest- ment had decreased 8 and was worth only 13, 800 after five and a half years. The main comclusion to be drawn is that it is possible for individual issues to move against the main trend. This happened a;b6Y'e when average prices were moving higher. It can also happen when average prices are moving Dow-Jones Ind. 728.23 Dow-Jones Rails 145.71 EDMUND ViI. TABBLL IN A.LSTON & CO. INC. This mnrket letter is not. nnd under no CIrcumstances is to be construed as, an offer to sell or a sohcltation to buy uny securities referred to herem The Information contained herc-m is not guaranteed us to aCcuracy or completeness and the furmshmg thereof IS not, and under no circumstances 19 to be construed as, a representn.- bon by Walston & Co. Inc All expreSSions of opinIOn arc subJcrt to change Without nobce. Walston & Co, Inc., and Officers. DIrectors. StockhOlders and Employees thereof, purchase, sell and may have an Interest In the lIecurlbes mentIOned herem ThiS market letter IS mtended and presented merely as a general. mformnl commentary on day to day market news and not as a complete analYSIS Additional mformatlon ,Ith respect to any securities referred to herem Will be furnish;d request WN 301

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