Tabell’s Market Letter – December 07, 1962

/\r,' W—-a–l-s-Itnocn—&—C–o. .111'1111,1''' .\'fll' 'ol'k Stock E.rrhan.Qe NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO CO…. ST AND OVERSEAS CHICAGO COpy TABELL'S MARKET LETTER . December 7, 1962 Despite the fact that the Dow-Jones Industrial average reached a new intra-day high at 658.76, the market appears to be losing some of lts upside momentum and our rate of change index has been moving slowly downward since mid-November. This is entirely nor- mal technical action. It could hardly be expected tha t the market could continue the rate of advance witnessed in the early part of the upswing from the October 25th lows. Probably some sidewise action is to be expected over the shorter term. There appears to be a con- siderable amount of funds available for yea r-e n d investment and it probably will hold up prices during December and the early part of January. Our upside potential rema ins the same as six weeks ago. We would expect the market to reach at least a temporary top early in 1963-in-the 650-685 range-'—— —-.,,- The swiftness of the advance and the remarkable change in investor confidence since the Cuban affair has been quite unprecedented. However, we do not, frone a technical viewpoint, believe that this is the start of a major market advance. Most stocks have not yet formed a sufficient base to indicate new highs. Of the 1800 graphs of individual stocks, only about 20 have-formed a sufficient accumulation base to sugge'st new high territory. On the other hand, 70 to 75 of the same number of graphs indicate technically that they have reached their downside objectives. If both of these statements prove to be correct, it would appear that the general market reached its low in May-June, but that a longer period of con- solidation is needed. A little over two years ago, on November 4, 1960, we recommended a list of twent low-priced speculative stocks selling under 20 a share. ditional five issues. It was stressed that these issues be b g t 1961 we added an ad'1)ackage in order to provide the necessary diversification in a ed below. Adj. 12/7/62 f h s t . The list is publish- 1\ Vi Adj. 12/7/62 Allied Paper Price 105/8 Close 17 3/8 (4) J 'ser. Price 83/4 Close 63/4 l/a – –. Burlington Ind. 183/8) Manhattan Shirt 181/21(2) 233/4 Campbell Chib. 5 7 8 \1 National Can 7 3/4 (2) 12 3/4 Chlcago,Mll.St.P G,)3l0 Northwest Air. 153/4 381/2 Commer. Sol. 18 8) 1/8 Pacific Petrol. 10 1/ 4 11 3/8 Divco-Wayne 163 185/8 Rayonier, Inc. 155/8 (2) 21 Flying Tiger 14 15 7/8 Rohr Corp. 15 18 Foote Mineral 19 12 5/8 Servel, Inc. 12 1/8 9 1/2 Freuhauf Trail. 183/4 25 Sun Chemical 135/8 93/4 Getty Oil 141/4 171/2 Victoreen Inst. 16 (1)(2) 91/8 Intern'l Packers 15 3/4 17 3/4 (1) Price 3/3/61. (2) Adj. for stock dividends. (3) Adj. for exchange for Lear, Inc. and stock dividend. (4) Adj. for Phillips-Eckhardt Electronic received as stock dividend. It will be noted that the action of the list has been extremely selective with price performances ranging from a 147 gain in Northwest Airlines to a 48 loss in Victoreen Instruments. The list as a whole shows a 15 average appreciation. TIns is a bit better than the action of the Dow-Jones Industrials which showed a 6 average- gain'over the same time periods. The indivldual issues show diverse indications at the moment. A number of issues have moved above the 20 level. Of these, three issues continue to indicate above average action and are bemg transferred to our regular recommended list. They are' Burlington Ind. Fruehauf Trailer, and Northwest Alrlines. Of the lower-priced issues, we would retain as speculations – Campbell Chibougamau, Flying Tiger, Foote Mineral, International Packers, National Can and Pacific Petroleum. The remaimng issues could be switched into those listed above. In the case of Chicago, Milwaukee, St. Paul, it could be switched into Chicago North Western, if a tax loss is needed. The low-priced list will be enlarged when the occasion warrants. Our recommended list of hlgher-priced issues will be reviewed shortly. Dow-Jones Ind. 652.10 Dow-Jones Rails 140.27 EDMUND W. TABELL WALSTON & CO. INC. ,11,,r ,. .TIlh I1l11ll,!'! lett!! 11,,1 '11101 IIn,I.. no ('11 h (n h( (n .. l,,!!'1 .1'0, I!' -oIf, I …..ll ' I ..II It,'\I1I to 1,\11 .Ill .. Ut II Ii' 'l,r''!1 Ld to 111'1(')11 11H' InfIIll,II,1 (11,11111,('01 hCICl1l 11,,1 c!illl,nll'..-d ., …. \u … , III ,II \ HI .. lId tilt' f'hlll''' 11( .lIlll'l1Id,, '10 ,'.. 1' t I,, ., ….. \ (11, I,y lIbton C.. I,,, -\11 p.(…… 'I1… oj ,'PH,on ,. ,Ulol'\ (,. ,h,, \\.Ih,,\ ',,'IIIl' '\.,I… tlu &. (I. 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