Tabell’s Market Letter – June 25, 1962

Tabell’s Market Letter – June 25, 1962

Tabell's Market Letter - June 25, 1962
View Text Version (OCR)

t '! t. . I MEMO FROM INSTITUTIONAL RESEARCH DEPARTMENT For the long term investor, the investment odds are more favorable at the moment than for some time. Last August, with the Dow-Jones Industrial Average at 725, we turned cautious and suggested a policy of selling on strength because we felt investment odds were relatively unfavorable. The averages were then selling at twenty-four times earnings and the downside risk appeared to be double the chance of upside gain. The presen't market radicl!-l1y'changed ther-pic,t.ure. The averages are now selling around fifteen-times earnings and are at a very .. strong long term support zone in the 525-450 area where the Dow-Jones Industrials held for a year and a half in 1956 and 1957. Thus the down- side rush appears to be relatively small as compared to the possible upside potential over the next several years. Furthermore, the general 1 , lOri ',5' p has carried e,culative.s tdoocwkns.t-hlefthhigeh'iensvt est-o–r ….. has J a ,number of, '- . . '''-.. ..ratios;of the'past ten years. At the recent;,lows, ..— — Business Machine ,Corning.GlaSS ,.Minnesota-Mining'& Manufactunng, Minneapolis Roneywe 11 and Du Pont fall lnto thlS category. . The yield is low on the above issues but if the investor is looking .for income, stocks of the quality of General Motors, Standard Oil of New International Harvester, American Can and Allied Chemlcal are Yleldlng around 5. In the business man's risk category, issues like International Minerals & Chemicals, Cluett Peabody, Chrys ler, Kerr-McGee and Dumond National appear most attractlve for long term capital appreciatlon. June 25, 1962 EmruND W. TABELL VICE-PRESIDENT WALSTON & CO., INC. , ,l \

Download PDF