Viewing Year: 1961

Tabell’s Market Letter – March 10, 1961

Tabell’s Market Letter – March 10, 1961

Tabell's Market Letter - March 10, 1961
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Walston &Co. FILE COpy Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER March 10, 1961 After reaching an intra-day high of 678.23 on Monday, the Dow-Jones Industrial average declined to an intra-day low of 658.57 on Friday. Probably a technical correction is overdue. A one-third correction of the 115-point advance from the October lows would bring the average back to 640. This would be a 5/0 decline, which is about the maximum to be expected at this stage of the technical pattern. ELECTRIC STORAGE BATTERY CO. Current Frice 58 Expanding and new develo Current 2.00 ment, have created many opportunities for investo Current Yield 3.5 over recent years. Such opportunities, however, Long-Term Debt Common Stock 2,851,000 1,712, 145 shs. Sales-1960 148,124,000 Earned Per. Sh.1960 3.58 have all too often involved the purchase of extremely speculative securities with consequent assumption of a good deal of downside risk. It is all too rare to find an established and stable com pany with an excellent earnings base which still Mkt.Range (1961-60) 73 – 50 3/8 has an opportunity to increase revenues sharply, through applied research and technological develo ments. Such a company is Electric Storage Battery. ESB is a major producer of batteries of all shapes and sizes, ranging from flash light batteries, through automobile cells, to the largest industrial batteries. Earnings per share (3.58 in 1960) have been extremely stable, 2li, over the past five years. Continuity of the 2.00 dividend appears assured, osition is excellen with net working capital per share amounting to alrtJ1a h m VAvalue of 48. 93 per share. t\ price, and book —. – Not content simply to be a leading atteries.,.ESB. prefers to re- gard itself as a leader in significant amounts on research, en e ed er. To this end, it has expended \.0. duct development in this area. Among the new fields which the are the following Fuel Cells – T es h roduce electric power from a chemical re- action could ulti te e . ce of evergy. ESB' s research in this field has been intensified, a as signed agreements with seventeen leading material – handling-equipment anuf rers, to develop a fuel cell to power their vehicles. With these agreements, th mpany could have an assured market for fuel cells once a prac- ticable product is de eloped. Electric Trucks – The company owns a 51 interest in the .Cleveland Electric Vehicle Company, now in initial stages of production. The possibilities of the use of electric trucks by Post OffIces have been extensively investigated, and it is estimated that, in many cities they could be utilized at a 50 saving over gasoline-powered ve- hicles. Obviously, any increased use of electric vehicles could have an important effect on battery sales. Microporous Plastics – This material, a joint development of ESB and Reeves Brothers,Inc. ,is water-proof and yet allows the penetration of air. Raincoats,and other garments made from this material have received an excellent trade reception and are now available in retail stores. Industry sources feel that within a few years a major portion of the raincoat market could be captured and important applications in their fields could be developed. (REEVES BROS., which is being added to our recommended list, also offers an interesting participation in this and other fields to those investors who can afford a greater degree of risk). The company holds a government research and development contract for an electro,chemical proce'lrrembVing saU froin &ea water. The above plus the company's 'stable earnings base, combine to create an attractive investment opportunity. This is reflected in the technical pattern for the stock which shows a long -term objective of over 100, with strong support at around the 50 level. The stock, which has been on the recommended list for some time, is again suggested for purchase in investment accounts. Dow-Jones Ind, 663.56 ' ANTHONY W. TABELL unJriba,&OOnswnces is to be construed as, an offer to sell or a rmQ iO herein The mformation contalOed herein IS not guaranteed as to aCCUracy or completeness and the furnishing thereof IS not, and under no cIrcumstances IS to be construed as, a representa- tlOn b)' Walston & Co Inc All expressions of opimon arc subJect to change without 'Ynlston & Co, Inc, and Officers, Directors, Stockholders and Employees thereof, purchase, sell and may have an Interest in the securities Thl.!1 market letter IS intended n.nd presented merely as IL geneml. Informal commentary on day to day market news any' not ILl! a complete analysIs AddItional informatIOn WIth respect to nnlo' securities referred to herein furnlshc'd upon request .

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Tabell’s Market Letter – March 17, 1961

Tabell’s Market Letter – March 17, 1961

Tabell's Market Letter - March 17, 1961 page 1
Tabell's Market Letter - March 17, 1961 page 2
Tabell's Market Letter - March 17, 1961 page 3
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r -…..,.-.-'– copyI filE Walston &Co. tnc. – – – – – Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CI-\ICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER March 17,1961 After backing and filling during the early part of the week, the general market turned strong late Wednesday afternoon and the Dow-Jones Industrials reached an intra- day high of 681. 63 on Friday, considerably exceeding the March 3rd high of 676.14. This letter continues to belleve that a constructlve attitude toward the market is still warranted, despite the sharp advance, and the upside objective for the Dow continue to be in the 700-750 range. Whether or not this level will be reached in a straight-line advance is problematical. Obviously, a correction of some nature is possible at this sta e of the game, but, as has been previously pointed out, most bull markets in recent years have tended to run their course wlthout any substantial correction until the top, or. some- thing very close to the top, is reached. Thus, It is far more lmportant to seek out secu- rities at levels which seem to represent attractive values and make immediate purchase rather than wait, perhaps in vain, for probable short-term reactions. In this connection, we are again publishing our recommended list of some 114 securities. Of these 114, 58 are rated as suitable for new buying at this time. The re- mainder consist of previously-recommended stocks where retention is still advised. Two stocks have been removed from the lIst as they have reached previously stated technical objectives. These are Northrop, which has reached its objective of 52, and Universal Oil Products which has attained its potential of 45. Northrop was originally recommende at 33 and Universal Oil at 31 3/8. The complete list can be obtained from your V,lalston repre sentative. A close analysis of the market action of the stocks on our list reveals that their performance has been satisfactory. As stated above, there are 114 stocks in the list, in addition to 5 which have been removed since the 1st of all but 5 are selling above their originally recommJr6ded 60 these 119 securitie , 49 of the 119 are sell ing 20 or more above their originally f t , 7 have advanced more than 50 with the largest advance being almoN; si he original recommend – tjol.l. The most serious.decline has been Hon of the performance of these ere originally suggested for purchase. 500/0 7 300;0 – 49 Is v ed 10 – 19 s es anced less than 100/0 s s declined 42 37 28 5 119 EYen more interesting is a tabulation of recent performance, since the various stocks in the list were recommended at different times. The list was largely expanded and revised at the end of 1960 at which time the Dow-Jones Industrial average was sell- ing at 615.89. To Thursday's close it had advanced to 670.38, or some 8.1. Of the 109 issues that were suggested as suitable for new buying on December 30, 1960, 75 have advanced more than has the Dow. Thirteen are now selling more than 30 above their levels of two and one-half months ago, and 30 are selling 20 or more above those levels. Only 7 issues have declined since the end of the year with the most serious de- cline being 10. A complete tabulation of the performance of these stocks since De- cember 30th follows Issues advanced 300/0 or more 13 Issues advanced 20 – 29 17 Issues advanced 10 – 190/0 43 Issues advanced less than 100/0 29 Issues declined 7 109 Obviously, after a performance of this nature many stocks are close to upside objectives and will become candidates for profit-taking as the market advances. We are, however, reluctant to remove stocks from the list until six months after the ori- ginal recommendation, or unless the market pattern deteriorates markedly. As the ad- vance continues,acceptance of profits in various issues will be suggested in this letter. D lbl,ij. m.rrrlult.letter ./lot. and he18 to bc conetrued as, an ff to 11 A or completeness Rnd the furnJshmlf t eroo tlon by. Walston 4…,Co All expressIOns of opinion are subJect to. c;hange '1fY I ..J .Mtonh8etrrueemd aTsh, ea inrefoprrmesaetnIOtan d Qi.t; Dlrectors Stockholders and m'erely as a general. informatIOn WIth respect to an'y secunlles referred to herem ———- .———– — lI i ' f!…. Cfl RECOMMENDED LIST OF STOCKS Edmund W. Tabell I March 17, 19 61 SELLING ABOVE 1 Walston &Co. Inc. ! A SHARE Close 3/16/61 American Broad. Para. 47 3/4 American Chicle 88 3/4 Amer. Metal Climax 27 1/8 Amer. Optical 64 1/2 Amer. Potash & Chern. Amer. Smelt. & Ref. 53 60 1/2 1 Amer. Stores 81 1/2 American Viscose 47 1/8 Anderson Clayton 39 3/4 Arkansas Louis. Gas 40 3/4 Audio Devices 28 1/2 Barber Oil 70 Bestwall Gypsum 48 Boeing Airplane 47 CIT Financial 75 1/8 Carnation Co 84 Caterpillar Tractor 35 7/8 Central & So. West 41 Chicago Pneumatic Tool 36 1/4 City Produ cts 52 3/4 Cluett Peabody 71 1/2 Columbia Pictures 30 1/2 Columbian Carbon 55 3/4 Consolo Mining & Smelt. 23 5/8 Consolo Natural Gas 56 1/4 Crown Cork & Seal 65 3/4 Daystrom 29 3/8 Deere & Co 55 1/4 Diamond National 46 1/2 Dome Mines 21 7/8 Eastern Gas & Fuel 35 5/8 Electric Storage Battery 61 5/8 El Paso Natural Gas 27 7/8 Ex-Cell-O 39 1/8 Fansteel Metallurgical 53 1/2 First Charter Financial 39 1/8 Food Machine Chern. 73 3/4 Ford Motor 77 1/4 Freeport Sulphur 32 Garrett Corp. 55 5/8 General Amer. Transport. 83 1/4 General Mills 33 1/4 General Precision Equip. 74 1/8 Georgia Pacific Plywood 65 Gerber Products 84 Granite City Steel 43 Great Northern Paper 65 Great Western Financial 45 Great Western Sugar 31 1/2 Haveg Industries Hercules Powder 107 3/4 95 Hertz Corp. 64 1/2 Heyden Newport 25 1/2 Holly Sugar 31 1/2 Ideal Cement 29 7/8 Original Recom. Price 45 3/4 76 24 5/8 54-50 42 7/8 55 1/8 77 3/4 52 3/8 36 3/4 35 3/4 26 3/8 70 41 36 3/4 67 66 1/4 30 1/2 40 1/4 28 3/8. 443/4 56 3/4 21 7/8 52 1/2 20 3/8 51 1/8 43 1/8 45-43 52 3/4 35 1/2 25 1/8 29 3/4 54 28 35 3/4 45-44 29 1/8 60 3/4 69 1/2 24 7/8 51 7/8 79 3/4 32 3/8 56 49 56 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 &P Rating B A B B B B A B B ABB A A A B B B B B B A BB B B B B B B A B A B A AA A B B A B B B B A A B B Comment fBuY-Hold Hold for 95-100 ' Buy-Hold I Buy-Hold i Buy-Hold Buy-Hold I Buy-Hold Buy-Hold f Buy-Hold ' Buy-Hold II Buy-Hold Buy-Hold , Buy-Hold Buy-Hold Buy-Hold Hold for 107 Hold for 45 Hold for 54 Hold for 47 Buy-Hold Hold Buy-Hold Buy'Hold Buy-Hold Buy-Hold Hold for 75-80 Buy-Hold Hold for 80-85 Buy-Hold Hold Buy-Hold Buy-Hold Buy-Hold Hold for 50 Hold for 58 Hold Hold for 90 Buy-Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold Hold Hold for 90 Buy-Hold Buy-Hold Hold Buy-Hold Hold Hold for 115-125 Buy-Hold Buy-Hold Buy-Hold Buy-Hold Close 3/16/61 Insurance Co. ,N.A. 893/4 Intern'l Mm. & Chern. 42 1/8 Intern'l Tel & Tel 58 3/4 Jewel,'re,a 57 3/4 Johns Manville 71 Johnson &l.J'lOhnson 'h Kennecott' Copper 102 85 Kern C04nty'Land 64 5/8 Lone Star'Gas 23 3/4 Louisiana Land Explor. 71 Magnavox Co 65 7/8 Marquette Cement 63 1/2 Martin Co 35 7/8 McCall Corp. 51 1/4 McIntyre Porcupine 29 3/4 Mesabi Iron 115 Microwave Associates 54 3/8 Miss.River Fuel 38 1/4 National Aviation 28 1/8 Newm9nt 'Miiling' 70 1/2 North Amer.Aviation 49 1/2 Northern Natural Gas 33 7/8 Northern Pacific R.R. 47 1/2 Oklahoma Gas & Elec. 38 7/8 Pacific Gas & Elec. 83 Panhandle Eastern Pipe 51 1/2 Penney, J.C. 41 1/2 Phillips Petroleum 59 1/2 Pillsbury Mills 49 3/8 Pitney Bowes 45 3/4 Pittsburgh Plate Glass 76 1/4 Reeves Bros. 23 1/2 Richfield Oil 99 Royal Dutch 41 7/8 Seaboard Airline R.R. 31 7/8 Seaboard Finance 28 5/8 Singer Manufacturing 73 1/4 Southern Calif. Edison 74 1/8 Southern Natural Gas 42 1/2 Standard Oil of Kentucky 74 Sterling Drug 83 Swift & Co 45 7/8 Tennessee Corp. 55 7/8 Texas Gulf Sulphur Thompson Ramo Wool. Twentieth Century-Fox 23 1/8 75 3/4 53 3/4 United Air Lines 40 1/2 United Artists 38 3/4 United Biscuit United Shoe Machinery U .S.Borax U.S. Foil B U. S. Vitamin Varian Associates 41 3/4 71 42 1/2 39 3/4 44 3/8 63 Warner Bros. Pictures Winn-Dixie Stores Woolworth, F. W. Wrigley, Wm., Jr. 67 29 5/8 70 5/8 105 3/4 Zenith Radio 119 1/8 -2- Original Recom. Price 78 32 48 50 1/4 60 74 3/4 74 1/8 53 23 5/8 50 1/2 19 53 1/4 26 29 7/8 27 3/4 86 1/2 33 1/8 34 1/8 27 3/4 62 1/2 41 1/2 30 3/8 42 1/8 35 1/4 75 3/4 47 7/8 41 1/2 53 7/8 44 5/8 41 69 3/4 24 5/8 84 42 32 3/8 22 1/4 48 66 38 3/8 70 1/2 69 3/4 44 1/2 50 19 1/8 57 3/4 36 3/4 30 3/4 32 1/2 37 3/4 59 37 3/4 50 1/4 37 40 3/4 52 7/8 22 1/2 69 99 99 1/4 S&P Rating B B A A A B A A B A B B – A AB AA AA A A A A BA A B B A AA A B A B A B B B B B B B A B A AB A Comment Hold JBUY-HOld Hold Buy-Hold, , ' 'Hold IBuy-Hold IHold for 80-85 Buy-Hold Hold Hold for 75 Hold for 70-86 Hold Hold I, Buy-Hold Hold Hold for 65-75 Hold for 50 Buy-Hold I Buy-Hold Hold I Buy-Hold Buy-Hold Hold for 54 Hold for 90-100 Buy-Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold for 90-95 Buy-Hold Hold for 120-130 Hold for 45-50 Buy-Hold Hold for 34 Hold Hold for 80-90 Buy-Hold Buy-Hold Hold for 98 Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold , Hold for 56 Hold for 45 Buy-Hold Hold for 80-100 Buy-Hold Hold Buy-Hold Hold Hold for 75 Hold for 32-34 Buy-Hold Hold Hold for 150-170

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Tabell’s Market Letter – March 24, 1961

Tabell’s Market Letter – March 24, 1961

Tabell's Market Letter - March 24, 1961
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Walston fTCo . Inc Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER March 24, 1961 After moving ahead sharply on Monday, the Dow-Jones Industrial average showed little change on Tuesday and Wednesday, and after flirting with a new high at Wednesday' peak of 685.32, turned reactionary to close the week at 672.48. The most noteworthy feature of the week was the action of the Rail average which, on Tuesday, managed to reach a new high for the period since early 1960, touching 152.72 on Wednesday. An upside projection for the Rails is difficult to figure. It is possible to count a technical objective of 178-180, but there is heavy overhead supply all the way from current levels to 170, which will definitely slow any upside movE.. . Overall, te-chnical indicators- continue to- show positive–action and there appears no reason to change the constructlVe attitude toward the market suggested by this letter for the past few months. There has been a good deal of talk in financial circles about increased public participation in the equity market. There is, unfortunately, no concrete definition of who the pUblic is. In fact, it has often been suggested that the puJlic is anyone who buys stocks after analysts who think stocks are too high have sold. At any rate, it seem to be universally agreed that public participation constitutes somE; sort of a danger signal. Actually, if we are to define the public as the mass of individual investors and speculators who are clients of New York Stock Exchange member firms, there is little evidence to suggest that public activity has been excessive in recent months. One re- liable indicator of public interest in the market is net debit balances in individual margin accounts maintained with NYSE members. This figure totaled some 3,426 millions at the end of February 1961, about 10/0 of the total market ratio having been fairly constant over the past few A'8ars. t securities; this est to note that net debit balances are still some 100 million Is arly 1959. In addition, the recent increase has not been en compared to past ex- perience; For example, from 1-949 to ncreasedsome r680/0,followea — by a 1320/0 increase from 1951 to as s 400/0 through 1958 to the 1959 high. So far, they have the 1957 low. rw- e low of last July and just 340/0 from Figures substantial rise' f in accounts also fail to give any indication of a c y 'nce May 1960, the number of such accounts has in- creased moderate to 315,000,a figure well under the December 1958 high of 325,000. Perhaps the 0 ndicator of public activity that shows any substantial increase is the total of customer's free credit balances. As might not at first be suspected,this figure tends to rise along with rising markets, probably due to an increasing inclination on the part of customers to leave funds in brokerage accounts for reinvestment during periods of bullish sentiment. This figure has risen rather sharply and has reached new high territory some 480/0 above its 1960 low. However, this increase is small compared with a 1949-51 increase of 800/0 and a 1953-55 increase of 660/0. Another interesting facet of both the debit balance and credit balance figures is their long history of leading the general market. For example, net debit balances reached their peak ten months prior to the averages in 1945-46, almost two years prior to the averages in 1951-53, and four months before the averages in 1959. The net debit balance figure started to turn up seven months before the averages in 1953, three months ahead of the averages in 1957 and three months ahead of the general market in 1960. Figures on free credit balances have shown a similar tendency. Thus, the cur- rent nse in these figures, in addihon to being moderate, is less of a cause for alarm than a lrotra cted decline would be. . In short, increased public participation is a fine high-sounding phrase, but one which appears hardly to be borne out by available statistics. Dow-Jones Ind. 672.48 Dow-Jones Rail.s 148.18 ANTHONY W. TABELL WALSTON & CO. INC. ThiS market letter 18 not. Rnd under no circumstances is to be construed as, an offer to sell or n Bohcitntion to buy any securities r.eferred to herem The informatIon contmned herem IS not guaranteed as to accuracy or completeness nnd the iurnL!!hlng thereof IS not, and under no circumstances lli to be construed as, 11 rcprCtlenLa tlOn by Walston & Co. Inc. All expressIOns of opinion nre subJect to change Without notice Walston & Co, l.ne , and Officers, Directors, nnd Employees thereof purchase sell and may have an interest In the securities mentIOned herem. ThiS market letter 18 mtended and presented merely HS 11 general. wWmformal commentAry on day to day market news aDfJ. not ne; n complete analySIS. AdditIOnal mformatlOn with respect to any securities referred to herem . . .

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Tabell’s Market Letter – March 30, 1961

Tabell’s Market Letter – March 30, 1961

Tabell's Market Letter - March 30, 1961
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fiLE COpy Walston fTCo. Inc —- Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA OFfiCES COAST TO COAST AND OVERSEAS CHlCAGO TABELL'S MARKET LETTER Fort Myers Beach, Florida Marchi30, 1961 As I look across the Gulf of Mexico from a comfortable beach chair ensconced on the white sands of sunny Florida, this restful vacation hardly seems conducive to thoughts about the technical pattern of the stock market. However, I have just, finished reading a number of market opinions that express concern about the steep rise lin prices over the past five months and the weakened technical position of the market thought a reply wa, needed. There is no denying that the market is high on the basis the past piE ratios and YIelds. But some of the danger signals mentioned in several current market opinion warrant a somewhat closer -examination ..,They- seem to-us reasoning that is not in line with'the actual facts and figures ' One of these danger signals — increased public participatidn– was covered in last week's letter. Rather than a concerted rush of public buying, actual figures indi- I cate that the public has increased its percentage of buying at a relatively small rate and, in some cases, may be selling on balance. The odd-lot figures confitm this opinion. Another danger signal is supposedly the greatly increased vqlume of trading whic is approaching the levels of 1929. These statements are correct in part, but do not take I the entire background into consideration. According to the Monthly Review of the New Yor Stock Exchange (a most interesting and factual publication), the daily average of reported share volume on the NYSE for the month of February was 4.9 millioh shares. Turnover for the American Stock Exchange and the Unlisted market is, of course, not included in this figure. Volume on the Unlisted market has increased sharply recently, but probably is still only a small fraction of listed trading. The NYSE figures for! March will be higher and will probably average a daily turnover of around 5.3 ares. This compares with a daily average turnover of 4.2 million shares for J aT liB; year, and 3 million shares for February a year ago. The highest -1 u nove I record was 6.9 million shares for the month of November, 1929 wh n e mar as in the midst of the taken into consideration. Today, there are seve en 0i s listed on the NYSE than there six hmes as gre 2 d i ' , the increase in population OVer the past thirty years has resulte n , more investors in the market. Tnese factors must be considered when tod 's v e is compared with 1929. A more accurate figure is the monthly turnover of t shares listed on the NYSE at an annual rate. The latest fIgure reported is 190/0 for e month of February. That means that for the month, the total shares listed were turned over at an annual rate of 190/0 or that, roughly, only one out of five shares listed changed ownership during the course of the year. The highest rate of turnover since 1925 was not reached in 1929, but in November, 1928 or some ten months before the 1929 peak in prices. The rate of turnover in November, 1928 was 1900/0 or ten I times that of February, 1961 when the average daily volume was 4. 9,million shares. To equal the 1928 rate, daily volume of 49.0 million shares would be required today! It is interesting to note that t h e- – h — igh in volume of the 1924-192I 9 market was reach- ed ten months before prices reached their high in September, 1929.; This is the usual pattern. on both thelO-week and 25-week moving totals in the 1953- 1956 market was r7ached in 1955; desplte-the fact-that the averages continued to advance until April, 1956. In the 1957 to 1959 advance, the high in volume was reached in March, 1959 while the averages reached their highs in August, 1959 and January, 1960. This type action has occurred in every major advance and refutes another danger signal that increasing volume on an advance means a buying climax and the approach of a major decline. Actually, the opposite is true. The danger signal is when the volume adeclines while the market is continuing to advance. This indicates loss of upside momentum. I From a technical point of view,it is my opinion that the so-called danger signals that have been mentioned recently are not actually danger signals and that they have no validity. I believe the market is still in the relatively early stages 9f an advancing phase and js sllbject only to the occasional Dormal technical correction of 5 or so. and is to be con!otruerlas, an offer to ell to ho!rem The informatIon cUbUi.mM lfEM!lhh a'l!'curacy or completeness and the no cOlllltrued as, a representa N).QlJ…b,! of op!mon are subJect to, change without Directors, Stockholders dnd Jun-e an mterest In the securities mentlonM hereM mereJy as a l!'encraJ. mformal commentary on day to day market ne….S and not as a complete analYSIS. AdditIonal mforJnatlOn With respect to any secunttes referred tu herem Will be 1

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Tabell’s Market Letter – April 07, 1961

Tabell’s Market Letter – April 07, 1961

Tabell's Market Letter - April 07, 1961
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Walston &Co. —–Inc —– Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CI-\ICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER Fort Myers Beach, Florida April 7th, 1961 Despite the fact that trading on Tuesday passed the 7 million-share mark for the highest volume in 7 1/2 years, the Dow-Jones Industrials, at the week's intra-day high of 687.76 failed to pass the January, 1960 high of 688.21. The week's low was 671. 29. Believe the present hesitation may last somewhat longer, but would consider any further weakness as a buying opportunity in selected issues. There is a strong support level in the 660-650 area. More important than the fluctuations of the averages is the action of the breadth- of-the-market index.-The It-has moved ahead with only slight interruptions since October, despite the fact that the Industrial averr age has had several mild declines and consolidations during the past five and a half month, The breadth indices usually reach a high long before the averages, as do the volume indic s The advance of both breadth and volume continues to indicate a higher market, subject to normal technical corrections of 3/0 – 5. Of course, the fact that the Industrial average is moving higher does not necessa i mean that each individual investor is doing as well as the averages. Obviously, the right stocks must be owned. The Dow-Jones Industrial average of thirty stocks has sold near the January 5th 1960 intra-day high of 688.21 during the past week. Standard & Poor's Indus- trial Index is selling considerably above this level. However, the fortunes of each individual investor would vary considerably depending on which of the twelve stocks listed below were in his portfolio on January 5th, 1960. All of the twelve are part of the Dow-Jones In dustrial average. Holding each of them from the January, 1960 high to date would have shown the following results. Price Stock 1/5/60 Amer. Tel & Tel 82 Prices are Price 4/6/61 Advance 126 54 0 Au num \,y pilice Price ),jjj60 4/6/61 Decline 105 76 28 Intern'l Nickel Johns Manville 54 50 67 1\ ( \y \). \.Y Ie . eral Elec. Tire 99 48 64 35 36 25 Procter & 7 Intern'l Paper 44 33 25 Of cours .g ie in the Dow-Jones Industrial average would resulted in a mucH comparison. As the adva e it is to be expected that the averages will not show the true picture as far issues are concerned. Issues that have been the market leaders for the past l!reveral months will tire and new groups will carry the ball. As long as the majority of groups continue to advance, this rotation of strength is not, as some commentators have noted, a danger signal. It is only toward the end of a major advanc that a small group of stocks carry the averages higher while the majority of stocks are declining. This type of action will show up in the breadth indices. There is no indication of this happening at the moment. Several issues in our recommended list reached their upside objectives based on our technical work and they are being dropped from the list. They are American Chicle (recommended at 76) which reached its 95-100 objective, Fansteel (recommended at 44) which reached the 58.potential and Gerber Products (rec;o.mmended which reached the 90 objective. Both American Chicle and Gerber Products have been held for less than six months. It is the purpose of this letter to recommend issues for longer-term holding. We do not attempt to guess the short-term swings in the market. For those who cannot afford to take short-term gains because of tax reasons, the two issues may be retained until the six months holding period elapses. However, better opportunities may exist in other issues in our recommended list which is available through your Walston Account Executive. Suggestions include American Broadcasting (49) ,American Smelting (61) Anderson Clayton (41), Audio Devices (31), Cluett Peabody (66), Columbian Carbon (58), Diamond National (45), Electric Storage Battery (64), Heyden-Newport (28), International Minerals & Chem. (45), Johns Manville (69), Magnavox (72), Northern Pacific (46), Pan- handle Eastern Pipe (55) ,Reeves Bros. (22), Swift & Co. (45) and U S. Borax (43). IS to be construed 8.S, an offer to Bell – I – to herem The mformatIon !Wcpracy or completeness and the furnishmg thereofUWJiQtT be construed as, a representa- Y1dJ\ bf & Alf. or opmlOn are subject to change without Inb'.d'rA'l aftkh's,. Directors, Stockholders and Employees thereof, Bell ani! may hn.ve an lnterest m the Bccurlues mentIOned herCiTI ThiS market letter IS intended and Iresented merely as '!' general, inrormul commentnry on duy to da)' market news ang not as a complete analYSIS Additional iTIfOrmatlOn With respect to (Lny secUrities referred to herem be furnished upon request . \

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Tabell’s Market Letter – April 14, 1961

Tabell’s Market Letter – April 14, 1961

Tabell's Market Letter - April 14, 1961
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Walston &Co. —..;,..; Inc. –….;;…;..; Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CH.JCAGO OFFices COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER April 14, 1961 A moderate reaction in the middle of the week on decreased volume failed to deter the advance of the general market which reached a high of 700.31 on Tuesday. Technical indicators continue to show positive action. However, it is a .normal characteristic of any bull market, that selectivity becomes more and more evident as the advance progresses. Therefore the choice of the right stocks will continue to be more important than guessing the short-term trend of the general market.' –. REEVES' BROTHERS; ING. .-……– —- . Current Price Current Dividend Current Yield 21 0.50 2.40/0 Long Term Debt Common Stock 3,200,000 1,167,831 shs. Sales 1959-60 71,720,000 Earned Per Share 1959-60 – 1.94 Mkt.Range 1961-59 41 3/8 – 12 The common stock of Reeves Brothers, recommended by this letter a few weeks ago, has reacted somewhat, and at Thursday's low of 20 1/4, had reached the downside objective of a short-term top, very close to a strong support level at 20-19. Further work may have to be done around current levels, but the stock retain! . its extremely attractive pattern with an ultimate upside potential considerably above the present price. to eell 0' contained herem IS not guarantccd as to or oo!flpleteness and the furmshing thereof c& iaO '0;pffgions of OpinIOn nre BubJect to. change without MVlbyeH3 k'el1 h'n'!l have an Interest in the securities mentioned ml\\'\t)rllbi' I1b ,w… inc.raA d hmm Th. in'mat,on n'I. n rcpresenta. Directors. Stockholders and merely as a general news an4 not as a analYSIS. Addlbonal mformatlon With respect to any securities referred to herem Will

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Tabell’s Market Letter – April 21, 1961

Tabell’s Market Letter – April 21, 1961

Tabell's Market Letter - April 21, 1961 page 1
Tabell's Market Letter - April 21, 1961 page 2
Tabell's Market Letter - April 21, 1961 page 3
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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 – ……..

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Tabell’s Market Letter – April 28, 1961

Tabell’s Market Letter – April 28, 1961

Tabell's Market Letter - April 28, 1961
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FILE COfl Walston &CO. Inc. Membe1's New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHJCAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER April 28, 1961 The twelve-point decline in the Dow-Jones Industrials on Monday brought the average down to 671.64. This is a 40/0 decline from the recent high of 700.75. It continues to be our opinion that declines at this stage of the market pattern will be limited to thing around 50/0. There is strong support at around the 660 level, and barring any seriouf deterioration in the international scene, we would expect the Industrial average to hold at a level not much below the lows of the past week. There has been no basic change in the technical gauges of market action. The breadth-of-the-market index has declined a bit, but is acting about the same as the general market. The first danger signal would occur if, on the next rally, the breadth index failed to move ahead with the averages. It is highly probable that the market bas completed the first phase of the advanc e and that leadership will shift from the defensive-type equities to the more cyclical issues Groups like the foods, tobaccos and utilities have been in an advancing phase with mild in terruptions since late 1957, and have reached a level considerably above both the 1957 an 1959 highS. The more cyclical issues, like mining and smelting, machinery,oil,chemical , paper and rubber, etc., are still selling considerably below the high levels of 1957 and H 5 , despite the fact that the averages have reached new high territory. This is normal action and has occurred in almost every major advance. At the early stages of a downturn in the economy, business and stock market move down together. When it appears that the busi- ness downtrend is nearing its end, the stock market begins to move upward even though earnings continue to decline. However, the initial buying appears in the more defensive- type companies where earnings have held up relatively well. Later, after business has reached its low and starts to turn upward, buying groups in anticipation of an improYement in earnings and r c the more cyclical lin commodity prices We have now probably about reached this point in s market cycle. The table below shows the price action of six Ps averages. The first three are what are usually ef .. moderately effected-bythe ups and downs of smes caujlt;.e.-rn!nj(s are only cleo The last three groups are usually more susceptible to a t . s pattern. – 1952 (/ 1957 1959 1961 Low Lo Piigh High High Foods .32 24.48 41.98 65.32 22.57 38.99 69.74 58.42 Retail Stores 2 2 24 38.00 31.34 28.42 48.50 55.09 Tobacco 11. .Bl 15.10 15.91 13.98 27.00 41.33 Oil -Composite 34 32.96 66.94 90. 18 65.38 82.42 77.01 Machinery-Comp.17.12 17.53 38.55 53.49 35.43 60.71 59.71 Mining & Smelt. 18.93 15.40 36.00 45.00 26.22 44.13 43.62 In the mild 1952-1953 business downtrend, the defensive issues reached their lows in 1952 while the S & P industrial and cyclical issues reached their lows in 1953. In the next upswing the defensive groups reached their highs in 1955, butthe averages and the cyclical groups continued their advance for over a year. The defensive groups reached their 1957 lows early in the year and backed and filled while the averages and cyclicals topped out and declined sharply in the later half of 1957. In the advance from the 1957 lows, the leaders were the defensive groups and they reached new high tory in 1959 along with the averages. They declined only moderately in 1960 and since October have risen even more sharply than the averages. The cyclical issues, on the other hand,in most cases failed to better their 1957 highs in 1959. At the moment, they are mostly still below both 1957 and 1959. From a technical viewpoint, there are indications that this, pattern is changing. The defensive groups have reached their upside objectives and the more cyclical issues have slowly been building up accumu- lation patterns, and some groups, like the coppers, have already broken out on the upside of rather sizable trading areas. Dow-Jones Ind. 678.63 EDMUND W. TAB ELL WALSTON & CO. INC. Dow-Jones Rails 141. 07

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Tabell’s Market Letter – May 05, 1961

Tabell’s Market Letter – May 05, 1961

Tabell's Market Letter - May 05, 1961
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W—-a–l-s-Itnocn—&–C–o–. Members New YOI-k Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST AND OVERSEAS FILE CHJCAGO TABELL'S MARKET LETTER Mo.y 5, 1961 The Dow Jones Industrials have advanced some 66 in the three and a half year period from the October, 1957 low of 416 to the recent high of 700. The six-month advance from the October, 1960 low of 565 was about 240/0. However, the profits (or losses) of each individual investor undoubtedly showed considerable variance from this average performance. Some stocks have advanced over 1000 and others are sell- ing considerably below their highs of the past five years. The leaders since the October, 1957 low have been the defensive growth groups like the foods, tobaccos, and utilities and the larger companies in recognized growth fields such as electronics, busi- ness machines, bowling., photography, cosmetics, etc. One investment issue, General Foods, has advanced 2700/0 in the last three and a half years or four times as much than the average and, a glamour issue, Brunswick Corp., has advanced some 20000/0 from its adjusted low of 31/8 in 1957. Issues of this type continued to advance during 1960 while the averages declined, and the advance continued in 1961. In the last few months, a large number of unlisted issues, some in older established companies and some in small new companies have had spectacular rises. During this same period, the stocks in some of the groups which include many of the largest companies in our economy have ,done little marketwise as shown in the table below High Low 1956-59 1960 Price Down Up 5/3/61 from High from Low Dow Jones Industrials Air Transport Aluminum 685 37.38 179.0 565 689 21.76 29.45 99.00 121.9 (1) -21 -32 22 35 23 Autos Chemicals Copper Paper Rails 71.99 61.60 43.65 191.9 ,36.03 51.45 22. 146.5 59rui\W8Q 51.1 -10 .—- 15 15 37 18 19 6is Textiles 50 28.62 -19 17 It will be noted ion of the airlines and the coppers, most of these ten group v verage action since last October and all are sell- ing below their 195 9 h- There are, of course, good reasons to account for this subnormal actio se groups have failed to show the growth trends prevail- ing in other industr- and earnings have been lower in line with the cyclical trend of general business. However, most business indices probably reached their lows in the first quarter, and earnings in these cyclical groups probably will show an up- ward trend well into 1962. On a technical basiS, these groups appear to be slowly forming bases or accumulation patterns, and, both from a price and relative strength point of view, appear to indicate an upward trend over the intermediate term. How- ever, the groups are in various stages of the accumulation phase with some individual issues in each group showing much better action than others. The coppers have al- ready broken out on the upside, and the airlines appear to be in a position to do so shortly. The other groups appear to be in a position to break out at various times in the future as earnings improve. Most of these groups are in our recommended list.- -The copper group is represented by, American Metal Climax (30 ) American Smelting ( 70) and Kennecott ( 92 ). In the 10 priced list, Campbell Chibougamau (9 ) has been our selection. In the other metal groups, the list includes Consolidated Mining & Smelting ( 26) and Newmont Mining (70). All of these issues have advanced but still indicate higher levels. The airlines appear to be nearing a new high in relative strength and present an interesting intermediate term speculation. Action has been selective so far. Fortunately, our choice in this group has been United Airlines (48 ) which has moved up from a recommended level of 307/8 in October and a February, 1960 low of 25 1/4. In our lower priced list, Northwest Airlines (27) has advanced almost 100 from its 1960 low of 13 3/4 as agains a 35 advance in the airline average. Both of these still indicate higher levels. Issues i the eigat itn rant ape Heisel ifi 9tiP 14st sf l.ef)pil 21st. IS to be cctnstrued as, tm offer to sell or n soliCitation ro tp lJ!fUrncy or completeness and the furmshlllg thereof IS not, and under wPt9'tcm. I'fl1e JflformutIon t'bVb. DtlOn &…o'l. c A exPreSSIOnB of opWlon are subJect to change without nollce. Walston & C'tnA''.lll)JJOtit.Gf;a, and sell4tlltiln)'QlQre an mterest III the BCCUflbes mentIOned herein ThiS market O,Jteneral, m'forma commentary on ny to daf mM!'e't'Mws and not as a complete analYSIS Additional mformation With respect to any SCCUribell re crrcii to erem Will be upon .. …. . . . . W'. . L –

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Tabell’s Market Letter – May 12, 1961

Tabell’s Market Letter – May 12, 1961

Tabell's Market Letter - May 12, 1961
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FILE COpy Walston &- Co. Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST AND OVERSEAS CH,lCAGO TABELL'S MARKET LETTER May 12th, 1961 Individual issues have had wide price movements during the past month but HIe general market has held in a trading range outlined roughly by 670 and 700 on thie Dow Jones industrial average. This appears to be a normal consolidating peridd after a sharp 230/0 rise in six months. There are no signs of a long term deterior- ation in the technical pattern. Breadth-of-the-Market action, both in advances and declines and on upside and downside volume, continues to indicate a further advance in prices. It would appear that business reached its low in March. As usual, the stock market moved ahead before the low in business and bottomEd out in October. As is also usual, stock prices make their major move after a business low'has . ….een reached. This suggests that the stock market uptrend has still further to go. However, the sharp and rapid rise of the first six months might cut down the size of the ultimate potential. Our technical work indicates a broad objective of some- thing between 725 (which seems low) and 825 (which seems high). Probably the hesitancy in the market at the moment is the result of the completion of the first phase of the market advance with leadership switching from the defensive issues and the overvalued high P IE ratio glamour issues to the more basic group. In the last two letters, we outlined this trend and mentioned ten groups that were still selling considerably below their highs of recent years. We noted that most of these groups were currently showing below average relative strength but appeared, from a technical viewpoint, to be slowly forming accumulation patterns. In last weeks letter we mentioned the two groups that were showing the best immediate action, airlines and coppers, and discussed the issues in these two groups that are ;r\\\represented in our recommended list. 0 Of the remaining eight groups, there is no ic of upside break- out. Probably the textiles show the most pa for the near term. American Visi0SE' ( 49) is part of our rec ende It moved ahead fro!!, an low of 35 to a Feb . . hi I . d.has.done little . . since. Recent action has been attraction for not only the ap are! -P d' ( 63 ) has long term teJ;; s half interest in Clupak, the extensible paper. Reeves B. recommendation that has reached new high territory b t ti a ve. In the low price list, our recommenda- tions are Burlin 1 nd Manhattan Shirt ( 21 ). The chemical g a n a bit more work but in dividual issues have been already moving ahea recommended list consists mainly of specialty chem- icals. They are A an Potash (58), Hercules Powder ( 97), Heyden Newport ( 26), International Minerals and Chemicals (46 ), Tennessee Corp (64 ) and U. S. Borax (46). All of these issues have moved ahead sharply since their original– recommendation but they still appear attractive. Commercial Solvents ( 32) Foote Mineral ( 26) and Sun Chemical( IIi ) are part of our low priced list. Our favorite for long term holding is International Minerals & Chemicals. The steels may also be near an upside breakout on relative strength. Our reco- mmended list contains only one steel, Granite City Steel (49). It has moved ahead faster then the group and has recently reached a new all time high. We prefer the specialty steels like Granite City. We are adding another,speciatly steel, Carpenter Steel 47) to our recommended list. ' In the paper group, our only representation is in Great Northern Paper ( 64); the largest American newsprint company. The 1956 high was 108 r 12. Allied Paper (13 ) is on our low priced list. Of the remaining groups, Reynolds Metals ( 48) is recommended. in the alumin- um group and Ford Motors (85) is the outstanding issued in the automobile group. 'live have no immediate recommendation in the rubbers and the rails will be covered'in a forthcoming letter. The recent F .P.C. decision on the rate case of Panhandle Eastern Pipe Line ( 43) was quite unfavorable. The company lost its fight to sell its own low cost gas at the fair field price. The decision will be appealed to theCourts but it will tnke time. The stock has d,clined below our ori inall recommended level to

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