Viewing Year: 1963

Tabell’s Market Letter – January 04, 1963

Tabell’s Market Letter – January 04, 1963

Tabell's Market Letter - January 04, 1963
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Walston &– Co,Inc Jll,/hl' .Y( /1' '(JI II Stuc/; E rclianq(' NEW YORK SAN FRANCISCO LOS ANGELES PHILADElPHIA OFFICES COAST TO COAST AND OVERSEAS CHICAGO TABEU'S MARKET LETTER January 4, 1U63 We see no reason to alter the advice given in our letter of December 21st WhlCh sald – Our technical objective for the price advance from the October low of 549. 65 was the 650-685 level. The lower part of this range has been reached, but we belleve the Indus- tnal average will move above the early December hlgh during January. A sizable number of techlllcal patterns on individual stocks suggest moderately higher price levels, and no dlS- trrbutional top pattern of lmportance has as yet been bUllt up. Market strength in January should be used to lighten commltments in issues wlth below-average prospects. The Dow-Jones Industnals have penetrated the December rntra-day high of 658.76 to reach a high of 665. 66 on Friday. Breadth-of-the-market action remains good and LS 'shll-no' 'Die marke't'stll1 appears ati1Fto' advanCe —..'– closer to the heavy overhead supply rn the 685-740 area rn which the market held for over a year between May 1961 and 1962. We would use periods of strength to eliminate issues wlth unfavorable long-term prospects. . As we have mentioned III prevlous letters, we expect 1963 to be an lllslde year wlth the market, as measured by the averages, reaching neither a new high nor a new low as compared to 1962. This suggests a broad tradlllg area III which the actlOn of indivldual stocks wlll be much more important than the achon of the various averages. The market has now recovered over 60 of the 2J5-pornt drop in the Industnal aver.- age from 740 to 525. This is about the expected normal techmcal recovery after a decline of the proportions Wl tnessed in May and June. For the mal'ket to advance further wlll requlre a powerful stimulant. On the business front, there mdlcahon of an increas in earlings in 1963 of sufficient proportions to generate a w wra9 et. The one factor that could change the plcture is tax reductlOn. In i , tel rtance of tIns factor cannot be overemphasized. The only questlOn lS timl grrhe ch es appear to be no better than even that lmportant tax reduchons will . 19 . The chances for 1964 will be much better. If no lmportant tax leglslatlOn e ted 63, the market wlll undoubtedly a – wlde tradrng area wlll ult,mat e\th) ,sWTor a broad advance in 1964 and 1965. ThlS fits mto the techlllcal pat e during the past six months is not sub- stantial enough to Ii he pa ttern is substantially enlarged. TIns wlll probably R r' 0 cking and filling. While thlS is true of the general market, many rndiv ssue ve already formed base patterns that require no further work. ThlS is partrcul rly e of the cyclical-type lssues that reached their highs rn 1956 to 1959, and have bee dually basrng out for a number of years. Purchases should be concentrated in th,S group. Why is tax reductlOn so lmportant A quote from the December 29th lssue of Buslness Week explains this l1lcely. After notrng the excess capacity tha t eXlsts rn most industries since 1955, the artrcle says – What has caused demand to grow so slowly tha t the nation's industrial capaclty has been underemployed for half a decade The chlef culpnt, vlrtually all economists now agree, has been a tax system con- structed to fight inflatlOn durrng World War II and rernforced during Korea. But by 1957 U. S, economy had moved out of the so-called 'postwar period' when private demand for all sorts of goods – especially autos, housing, appliances – seemed lIlsatrable, into a period when prlvate demand flagged. The tax system constructed for earlier needs lmposes excess,; lve restrant ordhis'later'-e'corlOmy-'n — The U, S. tax system has been hailed as our most important 'automatic stabilizer', a powerful check On recessions. Increasingly, economists have come to see tha t the tax system is also a powerful damper on expansions. For rnstance, from the spring of 1958, the trough of tha t recession, to the sprlllg of 1960, the peak of the expanslOn, GNP climbed 15. But tax revenues climbed 29'70 – tWlce as much as the rise in incomes. Thus taxes cut heavlly into final demand for goods and ser- Vlces, causlllg the expansion to lose momentum and flllally fade out. Again, in the Kennedy years, GNP rose 11'70 from first-quarter 1961 to third-quarter 1962 – but the tax bite in- ..creased 18/0 — again nearly twice as fast. EDMUND W.1TABELL Dow-Jones Ind. 662.23 WALSTON & CO. INC. Dow-Jones Rails 147.51 …. , T ' \ m.\\ 1,,\ I(!lh \ ,,I ,\I\d 1,,11 1, \le'd ,h ,\1\ I' ld II ,,,It, it .tlu tu \'U\ UI ,('c' Il,c \, I,, lui \ hC ' '\ II( ll'f,,' II Il, ,III.II!I(',1 111'lelrl 11t ('lIdl,lllt,f'd to ,U( HI \ '11 ,,\ll\plt'tI\( –.. ,llId tilL' fUlllhh'lI\.. 11'1.r I\t ,,,,llIlId,, 1\, \1( lill! h to I'L' dI I- t n 1 .. 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Tabell’s Market Letter – January 11, 1963

Tabell’s Market Letter – January 11, 1963

Tabell's Market Letter - January 11, 1963
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Wdlston &- Co. Mem/,.,'. Xell' YOJ'k Siock Euha110e NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST AND OVERSEAS CHICAGO TABELL'S MARKET LETTER January 11, 1963 The market continued its favorable action during the past week and all three averages reached new high territory for the move. Declines were minor in nature. The Dow-Jones Industrial average at the intra-day high of 674.23, is still quite a distance away from the all- time 1961 high of 741. 30, but the Rail average at 151. 38 is very near the 1961 high of 153.60. The Rail average, of course, reached 182.54 in 1956 and 174.41 in 1959. The Utilities, at this week's intra-day high of 134.05, are also quite close to the 1961 all-time high of 136.57. So far, the technical pattern has worked out just about as anticipated. The Industrials are now well into the 650-685 area which this letter predicted in October would be the upside objective. However, as yet, the market shows no signs of deterioration. The breadth index continues to move ahead with the market and has even advanced on days when the averages have declined. Volume indications also remain favorable and there is no sign of a distributional top pattern. The plethora of investmen t funds probably is an important element in the present mar- ket. We mentioned this before in our letter of November 16th after the averages hadadvance over fifty points from the October lows. We said – Most of the seers who have now swung sharply to the bullish side of the fence now claim that the successful confrontation in Cuba has, in some magical way, made stocks worth more today than they were a month ago. This is, in our opinion, tenuous at best. The rise in stocks that followed Khrushchev's backdown is another one of a long chain of examples of the market's finding an excuse to do wha t it was in a technical position to do in the first place. A more valid explanation for both the magnitude and sharpness of the rise lies in the fantastic end of October, poised and waiting to enter the equity mar t.' that were, at the 0 After citing the sharp increase in time i ui i Y . utual funds and the increase in the short interest, the November 16th Ie 0110 e . h – What, however, does all this mean for investment policy at position of the investor. If he had the courag 0 , hi pends largely on the current e a ely invested position at the end of October, there is verY'little y essarY'for him to maintain this posi- tion. The rapidity of the position. They are, indeed, w . i that most investors are not in such a e 'WPortunity to add to holdings on any minor de- cline. The great dUfic decline is not like 0 any potential equity buyers in this position, any It is much more probable that a correction, if there is one, will nor' cope. Meanwhile, the upside objective of our technical wor continues to be 650-68 0 Dow. A large number of stocks have higher percentage upside potentials and, above ,it is probable that a large portion of the potential equity money mentioned above is still waiting to enter the market. In view of all this, those investors still having cash reserves are probably best off committing them at the present time. From what we can observe at the moment, there is still a large amount of money seek- ing investment at lower prices. It would appear that selling on balance on strength has con- tinued and cash holdings have increased. This indicates no drastic declines in prices until most of this potential investment money has been committed. It also indicates that, barring unforeseen international developments, the dramatic swings up and down that occurred in 1962 will not be repeated in 1963. It will be a much less dramatic year with the averages remaining in a relatively narrow trading area as compared to 1962. Probably, it will be wiser in 1963 to stress the price action and values of individual issues rather than the gyrations of the general market. The situation today is quite different than a year ago when the market was near the completion of a distributional top after a speculative binge that had carried many stocks to unwarranted heights. The May-June decline has corrected a good portion of the over-valuation and today the market appears to be in the process of forming a long-term accumulation pattern that needs a longer time period for completion. This will declining phases as well as advancing phases, but the swings will be more moderate than In 1962. Among issues in our recommended lists that appear attractive at these levels are Beaunit Mills (221/2), J. Ray McDermott (231/4) and Varian Associates (36 3/8) for price appreciation, and Crown Zellerb3.ch (49) and Gulf Oil (39 1/2) for quality and growt.h, nd National Can (12 1/4) as a low-priced speculation. In our complete recommended 11st issued January 4th we inadvertently omitted Chrysler (80) which we recommended in June at 41 1/8. Our present advice is Hold-Buy at 75.-70!1 EDMUND W. TABELL Dow-Jones Ind. 671. 60 Dow-Jones Rails 148. 68 WALSTON & CO. INC.' lllHrhct letl!r …. und under no circumstancc' IS to he COntl'lIed nn 'lITe. tu ,,('II 01 1 bnhrltnt'''11 tu lillY lin (,,lilltIC 11.'('1 I cd lu hel ('In The mClll1'lt\lI (ntnmed herein IS nut ,. to .,c(,l1rruy 01 ('umilletene-s lind Cut th, cur lint, nnol 111101('1 lin (1\ ('1I111Stllll( es I to he (()I1 … 1\ I bn hy \\'nlston & Cu. Inr All eprc;slOn…..r nJlllllon arc … uhJcrt to) (hung-e 1'lth'Hlt Iwlle \\'nl … t,m & Cn, h\(', IInll Off,ce, … DlIC(tnlb. Stml..hl,h.'I' lon,1 theroof. rlillchnKc. 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Tabell’s Market Letter – January 18, 1963

Tabell’s Market Letter – January 18, 1963

Tabell's Market Letter - January 18, 1963
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Wdlston &Co. —–Inc MrIll1,el'. Xrl' rod.. Stork Exchange NEW YORK SAN FRNCISCO LOS NGELES PHILOELPHI OFfiCES COAST TO COAST AND OVERSEAS CHICAGO TABEll'S MARKET lETTER January'18, 1963 The market continues its impressive show of strength. At Tuesday's high of 680.80, the Dow-Jones Industrials had almost reached the part of the 685-700 objective this letter has constantly suggested was the upside potential. Our feelings concerning the equity market at the moment ean be summed up in three state- ments. (1) – It is difficult to read, from the base formed between May 1962 and October 1 an upside potential of much higher than 685-700 on the Dow. This figure, moreover, coin- cides with the heavy overhead supply that exists between 680 and 740, the original 19.61-62 which produced the sharp decline in the early part of last year. '–(2) would, therefore, be il1ogiCaltci- expect an advance-substaiilially above the 685 -700 level without some correction or consolidation. Such a correction or consolidation would enlarge the base and make a higher reading possible. It is impossible at this point to predict what form this sort of action may take. Certainly, no distributional top has been formed and the market does not appear immediately vulnerable. (3) – The most important thing to remember, however, is that all of this is part of the process of forming a long-term base for a new major advance. Here again, it is im- possible to ..predict, at this early stage, the timing of such an advance, and it is probable that its beginning is months, or possibly years, away. It should, however, ultimately ca the market into new high territory. If this indeed is the shape of things to come, it behooves the analyst, even at this early stage, to examine the factors which might lead to the next bull market. At this week's high, the Dow-Jones Industrials were selling t 1 r eg their latest twelve months earnings, a level which, interestingly e e c a only in 1961, just before the 215-point break in the averages. It is al xio at' at before any major upside move takes place, there must be a tia' re n the earning ability of common stocks and a move out of the earnin eau t as been in existence since 1955. – It .is-in, this ' . -,pa.st-te.w week.s,–tha twe-feeL thE'.. P ing tax legislation is of c been made of the Administration's tax program in the business pres I ensaSIl'ed a reversal of the economic thinking of the past thirty years and I' n theories of the late Lord Keynes. This is a bit strong. Indeed, e' the tax cut, both implied and stated, seems largely Keynesian in its ass p on. trong case can be made, however, that the President's tax program, if enact combined with those measures already enacted, would reverse a trend in tax policy t as largely prevailed since 1935 and start the return swing of a pendulum which had a most certainly moved too far in one direction. What the Administration has proposed includes an eventual reduction in the corpo- rate income tax to 470/0 (a move which, by itself, would add 100/0 to the post-tax earnings of corporations). Already, depreciation schedules and investment credits have been enacted allowing business to invest in the capital equipment necessary to increase profits, and the proposed reduction in the top tax bracket to 650/0 would free a large portion of the income of the upper bracket tax payer who is in a position to invest new funds in business enterprise. As noted above, the recent history of taxation in the United States may be viewed as a pendulum. Throughout the 1920's, under Treasury Secretary Andrew Mellon, gradual re- ductions were made in corporate and high bracket taxes, and these taxes reached a nadir in the late 192b's. 13eginning wi'th the Revenue Act of 193-5, the emphasTs shifted heavily to raising surtaxes and corporation income taxes, and these revenue sources increased in im- portance with very little interruption, spurred on by the demands of World War II and the Korean War. We are, in other words, on the threshold of the first major lightening of the business tax burden since the 1920's. It may be left to analysts of varying political and economic persuasion to argue about the effects of this move On the economy as a whole over the long term. It seems difficult to doubt, however, that the result for the business commu- nity over the next few years could be a move out of the eight-year profits stagnation which has hobbled it to date. Just such a move will be needed before any major advance in com- mon stock prices can take place. Dow-Jones Ind. 672.52 Dow-Jones Rails 146.25 ANTHONY W. TABELL WALSTON & CO. INC. ThIS milt ket lIot, and under no CLrCum.,tnnce'i IS to he contl tied IlS, nn ffet tn hclt III n sulicltntm to 10\1) nllY I dell ell 'til hel eln The infm malliln l'ontnlncd herein not j,l1nrnntcl'llI; to nCCUlIH') tn nnrl the fill I not. ,lnd 111ldel IH ('II til he (l)u(llierl n lcplc-.cntl' hy Wnlstan l.. Co, Inc All C'l(pre!blOnb of o)lnJUn nrc bublcct to ehllnl-'!' \\ltllPlit nuhec & Cn, 1m' 111111 DIIC(OIS, ,Ind hmllinyees thereof, l'lIlehnRc, m'l.Y hn\c nil mtl'cst III the oCClIllt!C rncntlHllcri helClIl, 'fhi' mnlh('t Icttel mClcly II lCIl,-llll Infor'mlll cummentllry nn lIny tn ,IllY nl.lrket new. nnd lIut n…. (I complete AlldltlllIll11fulmlltlon \\lt11 If) llll\ ..crllllh…, l'cfcIICe! tu h,-'ICIII III fUl upon request \\ 301

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Tabell’s Market Letter – January 25, 1963

Tabell’s Market Letter – January 25, 1963

Tabell's Market Letter - January 25, 1963
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Walston &- Co. Inc MemiJe.'il SeIC Yn1i, SIne E,fchal1ge NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO COAST TO CO….ST AND OVERSEAS TABEll'S MARKET lETTER January 25, 1963 There is not much to add1olast'week's letter. Since the Cuban crisis in October, we have beeri suggesting an,advance to the 650-685 level in the Dow-Jones Industrials with a possibility of a somewhat higher pote,ntial of 700. For the past ten trading days the average has been hovering around the 680 level, hut our breadth indices and other technical indica- tors show no signs of deterioration. The only immediate reason for caution is the fact that the averages are reaching their upside potential. Also, there appears to be little fundamenta reason to expect a broad extension of the advance from present levels, Earnings estimates for 1963 on the Dow-Jones Industrials center around the 37,50 – 38, 00 level as compared to a 35.60 estimate for 1962. However, at 680, the industrials are selling at 18 times esTiinateo'l1J'63earnings an — — The general market has reached a stage where it is fairly close to its upside potential and a new pattern must form before a sizable move in either direction is indicated. This will take time. It must be remembered that it took almost a year to form the distributional top in 1961 that indicated a 200-point decline, and it took about five months to form last year's May-October accumulation base that indicated the present advance. At the moment there is no indication of wide price swings like those which occurred in 1961 and 1962. The situation today is quite different than it was a year ago. A year ago at this time the market was not much above present levels. It was approaching the 686.89 January low just prior to the final rally that carried the industrials to an intra-day high of 727.14 in March. This was followed by the 200-point decline in May and June. However, the technical pattern was quite different a year ago than it is today. A year ago the in a speculative binge with so-called growth issues of third and fourth grade qua y u if'llg most of the activity. The market was forming a broad distributional top ani breadth index and other technical indicators were slihw;' s I 0 tial of 550-525. The eriorating action. The May-June decline corrected a large part 0 t exc es. The downside potential was reached with the dreamboat issues , but pulling the entire market 'down with them. There were . June wh.,ich .a' b 'n investment-quality issues in May- e market has -;; good-por- tion of the 1962 losses in the there have been comparatively few ex- cesses. The and gambling parti aiW, 'nl'n l'nvestment-quality issues, and the speculative t 1961 has been absent. No distributional top has been formed and the bre .i other indicators have as yet shown no signs of a danger- ous pattern. On the 0 r h ,the market has almost attained most of its immediate ob- jectives and probably n a mild correctionary move in order to enlarge the base patterns and indicate ultimatel ighe r levels. The present pattern suggests that the action of the averages over the foreseeable future will be much less important than the action of individual issues. This area of the mar ket is covered by our supervised recommended list. The last compilation was made at the year-end and is available from Customers I Representatives. On the last list, most issues were marked Hold, but a goodly number were given a Buy- Hold rating. The'list of the Buy-Holds in the Price -Appreciation Group is reprinted below Close 12/28/62 Close 1/25/63 Alside 27 1/2 29 1/2 Atch, Top. S. F. 24 5/8 26 11 8 Close 12/28/62 Close 1/25/63 Kern County 735/8 77 McDermott, J. 23 1/4 26 3/8 Beaunit Burlington Ind, Cluett Peabody Consol. Coal Ex-Cell-O Intern'l Minerals 203/4–26 453/8 35 41 3/4 41 23 118 281/4 461/4 39 118 453/4 43 5/8 McKesson, R -40 1/4 Reynolds Met, 23 3/4 Schlumberger 66 Stevens, J. p. 29 5/8 Union Bag 35 1/4 US Plywood 45 42 26 67 3/8 30 5/8 36 3/4 47 7/8 Intern'l Tel & Tel 423/8 47 5/8 Universal Oil 39 5/8 38 5/8 In cases where the price rise has not been too steep, the Buy- Hold rating is still in effect. Remember, these are recommendations for long-term holding and not for trading vehicles. EDMUND W. TABELL Dow-Jones Ind. 679.71 WALSTON & CO. INC. Dow-Jones Rails 149.97 1 mllrkcl letter IS not, 'lnd undel no clfcumtnnce. to he conh uee! ,IS nn lTcl tn …en ,,( n -oh('lt'III11 t IIny …celllltlC' 1efm' eel tu hel em The mC, 111.111011 ('nttlll1ccI herein IS nut l!'ulI\lInteeil n .. to nccutncy UI eumplelene!1 flnd the fmllhhlllL theleur I' 111)1 IIHI IIndel I) h t Le ,,,n… tll!('(1 ai, ,I ICl'leClllu- lion hy 'Vnlston & Co ne All of DJlJ1HOn fllC uhlc('t tn .'h,1I1LC \' Ithpllt lIt!!( Wal-'lnll K Cn lilt' ,111.1 uff1('I-.. Dllcctm .., SId..hulduh IIlId thcreof, 1'111chu;e, 'lcll lml m.1Y hUle nn IntCI'..t 111 the '(('IIIIIIC' n1cutlncd hl'IUII 'I hi … nlnll.c\ lettel 1-. mtelHled lind )11'''l'nterl merely n-, ,I gCIlCI.II, wforll11lll0mmentary Oil (IllY t(1 lin 1ll.llke! IlCWi and nut n'l II cultlillctc IInlll'h A.ldltl,,.il 111(111 Illnll1n \Ilth le,,,Clt II 1I11 … IcfcllCd tu hCICI1l \\111 hl' fllllll ..hcll Il,pllll request \\ '\ ,III

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Tabell’s Market Letter – February 01, 1963

Tabell’s Market Letter – February 01, 1963

Tabell's Market Letter - February 01, 1963
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Walston &- Co. Inc 111 rill bel X rIC Ynrl. Sinch- E.Tchall(Jf NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA OffiCES COAST TO COAST AND OVERSEAS FILE CQPV CHICAGO TABELL'S MARKET LETTER February 1, 1963 Again this week, the Dow-Jones Industrial Average continued on to a new high reaching 686.91 on Tuesday. As readers of this letter are quite aware, it has now reached the upper part of the upside objective area which we have been mentioning for the past few months. At the moment, no signs of weakness are appearing, but a close examina- tion of the character of the rlse helps to reveal the type of stock that should be most resis- tant to any decline and should be the best candidate for purchase on any weakness that does develOp. It appears quite obvious that the sharpness of the rise has been largely caused by . peavy !r1.J!titlltional This. is banking .f!.gl!res of mu.!.ual funds, which have continued to rise at a time when the average institutional eqUlty buyer was already in a highly liquid positlOn. Liquidity has also been evidenced by the rise in free credit balances. The character of the buying is spelled out in the quality of recent leadership. For example, for the month of December, 1962, New York Stock Exchange volume was down 2 from the like 1961 month. By contrast, volume on the American Stock Exchange, which, largely, lists more speculative issues, was down 32 from December, 1961. It is thus the better quality stocks which comprise institutional portfolios that have been the market leaders and are likely to continue in this role. Present investment policy should center on up-grading portfolios so as to reflect this leadership. AMERICAN VISCOSE (63 1/8) has been on our list for some time. As most shareholders are undoubtedly aware, the company ha r t aOnounced the proposed sale of its assets to FMC Corporation for 116 milli9foin c . I from the sale would be Viscose cash and marketable securities in . lion and its substantial interest in Monsanto Chemical. There is, of course, the possibility IsaVn be blocked by Federal action as was the proposed sale of the ever, the sameobjectiOns Stauffer Chemical last year. How- voiced at that time do –;;-otapply in this case, and it seems and FMC would make a public announ cement at this stage with t;o I ro belief that the deal can be consummated. It seems, the e , h' eviewing just how Viscose shareholders may expect to be treated if the s er . Upon completion, Viscose will be a corporate shell holding some 3.68 mil n s s of Monsanto and 170 million cash (116 million to be re- ceived from FMC and 5 lion now in the till which Viscose will be permitted to keep). On a per share basis, e va lue of the Monsanto stock is some 41 per share and the cash about 35. 75 per share. In addition to the above, it would appear that Viscose will be able to realize close to 5 per share from earnings before the sale takes place, earnings on liqui ass'ets prior to distribution and a substantial tax refund which should be due them. All this works out to better than 80 per share. As to timing, Viscose should be able to announce a plan of liquidation shortly after the sale takes place, which should be prior to the end of May if the Justice Department ap- proves. There is no reason why most of the cash plus the Monsanto stock cannot be distributed almost immediately. The final windup involving the tax refund and other complications might take considerably longer, but this would involve only a minor portion of the total amoun Thus, American Viscose, at its some-interesting possibilities Assuming that tlf sale is approved, the holder achieves a 27 profit, the major portion of it to be realized within a relatively short period of time. Meanwhile, even if the deal is not approved, the downside risk appears to be small due to the value of the assets involved, and the virtual certainty of theIr sale. Another way of looking at it, is that the buyer of Viscose at present levels is, in effect, buying Monsanto (53) at around 30-35 per share. Current long positions should be retained and we believe the stock is an interesting purchase on a special situation basis. Dow-Jones Ind. – 683.19 Dow–Jones Rails – 149.45 ANTHONY W. TABELL WALSTON & CO. INC. ThiS mnrket letwr IS not. nncl uRfler no ClfCllmllto,nces IS to he con;truel'l as, un offer to bel! or n suhcltatlOn tn 1111)' nny rc(CI reilo hClcln The mC'lI matum mtnlned herein IS not I!tlrlrnnt('eu n; to aCCUlIlCY 01 compietene;s nnd the rm 11I..hll1!. thel cnf I., 'lilt, lnll umlCI 110 tliClIlm,tnn( C' I' tn be Lun-.lIlled as, I repi e-.enlu. tllm by Wnlston & Co Inl' All e'preSSlOn!! or nplfilon are -.tlhJcct to (hml!.c ,\I(h,,t Iltlti('' Wnbton Co, Inc, Hnd neeh'ls, St(.ekhuldcrg !lnt! th('reof, ptl1chnse, Bell nnd may hllvc an mtelest 1n the seelllltlCll mentll,ned helCII! ThIS mar'et letter I intendcll lIIul pre.,entecl merely ns \ mformnl Cnmmentnry on IIny to dny mnrkel news !lnd nolll8 n ('omplete ,mni),,' Alldlh'lltl 1I1(4)lnlntlun \I,th lellett to Imy Icfellell to helem Will he

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Tabell’s Market Letter – February 08, 1963

Tabell’s Market Letter – February 08, 1963

Tabell's Market Letter - February 08, 1963
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Walston &- Co. —–Inc —– MI'III!e, Xell' rod.. Stork E.rchan(Jc NEW YORK SAN FRANCISCO LOS ANGELES PHIL-!-DELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER February 8, 196.3 After reaching a new high on Monday, the Dow-Jones Industrials moved sideways most of the week. Basically, the market picture continues the same. With the averages having reached their upside objectives, we have, for some time, been expecting some de- terioration in breadth and volume. This week saw the first divergence between our sensitive daily breadth index and the action of the averages and it is possible that this may be the pre cursor of such action on the more important weekly indices. However, these indications could be cancelled out very easily, and it is far too early to become profoundly concerned. Even assuming last week's action to be the beginning of a distributive phase, this process could take some time. a- are-Eowever, making fewchangesin-()ur recommended National' (51) has recently reached its intermediate-term objective of 53, and we are removing it from the list for the time being. Northern Pacific (43 1/2) has shown slightly inferior action to the other rails and we are removing it from the list with the suggestion that it'be switched into other railroad equities. Phillips Petroleum (49) also would appear to be a switch into other stocks in the oil group and we are dropping it also. The recent market actlOn of INTERNATIONAL MINERALS & CHEMICAL CORP. 43 has been rather desultory,and investors seem to be worried about the results the company has reported for the first fiscal half. For the six months ending December, the company re- ported a loss of over 2 million vs. a profit of roughly the same amount in the previous first half. It is our feeling that this report will be the last such bad news for some time and that the company's fortunes are likely to turn dramatically bem' Let us review the probable causes for the recent po r S 1'he past six months have seen a strike at the Carlsbad potash mine, h a 0 buy potash in the open market. A new monosodium glutamate plant k 'n; a 6 million 'capital program was beingeompleted in Florida, and start ment in Saskatchewan were, of course, heav . e (i1h, at the Esterhazy developfactors are likely to recur. . Furtherm.or.e,…it .s ffed earnings comparisons with 1961-62. As i sedcl1e ow, the Esterhazy development should be a major contributor to .t half, and it is believed that full-year 1962- 1963 results, can easily .0 per share earned in the prior year. This should 0 t . As readers of our earlier discussions of the com- pany will recall, In 0 . rals is a major factor in the fertilizer field, mining phos phate rock and potash n R cing fertilizer and other chemical products based on these materials. The compan now going mto production with one of the Western Hemisphere's largest potash faciliti s at Esterhazy, Saskatchewan, a project on which 40 million has been spent. Various estimates have been made of the profitability of the Esterhazyopera- tion, but a minimal 10 return on invested capital would provide 1. 50 per share, and there are indications that final net could well double this figure. Full production rate is being ap- proached and, it is believed, the company has contracted to sell the full output despite wor- ries about temporary oversupply in the industry. Indeed, it now appears demand may exceed supply for a number of years. The future for International Minerals can thus be summarized as follows' (1) The com pany earned 3.04 per share in the year ended June 30, 1962 and basic earning power, apart from Esterhazy, is estimated at 3.50 per share. (2) Esterhazy should contribute at least 1. 50 per share in'fiscal 191364, and C()nsiderably more than this. (3) In Fall, 1964, a major nitrogen project, jointly owned by IGL , will come on stream. (4) In 1965, a major phosphate-producing property in West Africa should be in operation. (5) In 1964, the company will commence another shaft at Esterhazy, doubling this facility by the end of the 1960's. (6) World demand for potash is growing at the rate of 600,000 tons an- nually and that for phosphate is believed to be growing at an even faster rate. Taking all these factors into account, growth prospects for IGL in the 1960 's appears to be as bright as those for any company in American industry. The stock continues to have an initial objective of 60, with a long-term base indicating much higher levels and purchase is again recommended. Dow-Jones Ind. 679.92 Dow-Jones Rails 151. 41 ANTHONY W. TABELL WALSTON & CO. INC. murkel lE.'ttel 1'1 not. find unckr no I'll Cllm… tnnCl'S to be '1uecl nn offel tn ..II 01 ,\ sf)itCltntu)Il tu hllY uny IcrUlltl!'-. I dClic,11u em The mfm matln herein IS not !-!,unrnntccd ns to UCCIIIIICY .II nnd the fLII thel ('or h 1Iut, nn.IIIIHIcI n t'IIClIhl!!tiIlW''I I to he l'nohllcd 11 rCll1c…entd- hn by & Co, In(' All of OI11n1On nrc tu \\Ilhut IIltI(C & Cll, In(', lind 11n.1 Empoy('('q thereof Ilurchnllc, bcll nnd mny hnl'c nn In the oeturltie–. mcntwned hell'11I Illfukct icttC-l III lIItclllled ,11ul jlleoentcd mel'h n… fl g-enerul, mrolmnl cIlmmcntuty on dn)' to flRY murket find not n comlJlcte nnniYh Ad,hllllnllilllflll mlltlun \llth l'e,led 10) I cfl'1 ICe! tu hC1CIn 111 he furnn,hed l\pun requehl. \\.\ ;01

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Tabell’s Market Letter – February 11, 1963

Tabell’s Market Letter – February 11, 1963

Tabell's Market Letter - February 11, 1963 page 1
Tabell's Market Letter - February 11, 1963 page 2
Tabell's Market Letter - February 11, 1963 page 3
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LOW-PRICED SECULATIVE Audio Devices Close 2/8/63 13 Campbell Chibougamau 3 15/16 Chicago & No. West Rwy 15 1/2 El Paso Natural Gas 19 F!yirlg … Foote Mineral 11 1/4 Great West Financial 1,7 3/4 Intern'l Packers 19 3/4 Mesabi Trust 13 1/8 Microwave 13 3/4 Murphy Corp. 18 118 National Can 12 5/8 Pacific Petroleum 11 Reeves Bros. 13 1/8 – — — SeaboardFinance 'lT3t4 Sperry Rand 13 3/4 Quality BC C B C B B- B BBB- B Yield 6.4 0.9 stk. 3.8 3. 6 2.8 stk 3. 8 4-2 stk Comment Hold for 20. Hold Buy-Hold Buy at 17-16. Hold .. Hold for 19 Buy-Hold Hold for 23-25 Hold for income. Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold for 21. – –..—-.- Buy-Hold February 11, 1963 Edmund W. TabelL Walston & Co. Inc. 74 Wall Street New York 5, N. Y. QUALITY AND LONG-TERM GROWTH Close 2/8/63 Caterpillar Tractor 36 3/8 Corning Glass 162 3/4 Crown Zellerbach 47 1/2 DuPont 243 1/4 General Motors– – 631/s- .- Gulf Oil 43 1/2 Intern'l Bus. Mach. 420 Minnesota Mining 59 1/4 Penney, J. C. 463/4 Royal Dutch 46 3/8 Standard Oil of N. J. 60 Woolworth 63 5/8 Quality A Yield 2.7 A (b) 1.2 A- (a) 3. S A (a)(b) 3. 1 –A – -(b)-47's A 3. 7 A 0.7 A 1.4 A (b) 3.2 A 3.3 A 4.2 A- 3. 9 (a) – Stock dividend. Comment Hold. Buy at 35-33. Hold. Buy at 150. Hold. Buy at 45. Hold. Buy at 230-220. Hold-Buy at 55. . Buy-Hold Hold Buy-Hold Hold Hold. Buy at 45-43. Hold Buy-Hold February 11, 1963 EDMUND W. TABELL'S RECOMMENDED LIST PRICE APPRECIATION Close 2/6/63 Quality 0/0 Yield Comment Air Products 57 1/2 B (a) O. 3 Hold. Buy at 60. Allied Chemical Alside, Inc. American Optical American Viscose Armstrong Rubber 44 3/4 27 62 1/6 645/6 35 7/S AB B 4.0 2.0 (a) 3.2 3.1 (b) 5.3 Hold. Buy at 42-40. Hold. Buy at 27-25. Hold for 75-S0. Hold for 75-S0. Hold for Atchison, Top. & S. F. 26 1/2 A- (b) 5. 5 Buy- Hold Beaunit Corp. 21 7/S B 5.5 Buy-Hold. Burlington Ind. 26 B 3. S Hold. Buy at 26-25. Burroughs C!trYfl!er 29 1/2 B 3. 4 Hold for 35. S67/.S B 1..2..Hold.Buy.at.75-70. -. -.- Cluett, Peabody 46 3/4 B (b) 3. 3 Buy- Hold Collins & Aikman 333/4 B 3.6 Hold for 40-45. Columbia Pictures 24 1/2 B stk Hold for 32. Consolidation Coal 397/S A- 4.0 Hold. Buy at 37-35. Continental Insurance 63 3/6 (a) 3.5 Hold for 70-75. Electric Storage Battery 54 1/4 B 4.1 Hold. Buy at 47-45. Ex-Cell-O 46 A 3. 5 Buy- Hold First Charter' 32 3/4 stk Hold. Buy at 30-26. Fruehauf Trailer 27 7/S B 4.3 Hold General Mills 32 1/4 A 3. 7 Hold for 40. Great Northern Paper 41 Intern'l Min. & Chern. 42 3/4 B B 2.4 Hold for 50-55. 3.7 Buy-Hold Intern'l Tel & Tel 46 l/S B 2. 2 Hold for 60. Kern County Land 74 A 3. 2 Buy-Hold Kerr McGee 37 3/4 A- 2.6 Hold. Buy at 35-33. Korvette, E. J. 30 Hold for 35-40. Louisiana Land 77 1/4 A (b) 2. 6 Hold for S5-90, McDermott, J. Ray 27 7/6 3.2 Buy-Hold McKesson & Robbins 42 A- 3.6 N'ewmont Mining .70 .. . – — – – 3.'4- – – Hold No. American Aviation 63 1/4 B 3.2 Hold. Buy at 65-60. Northwest Airlines 41 1/2 B 1. 9 Hold. Buy at 35-30. Panhandle Eastern 71 3/S A- 2.6 Hold. Buy at 65-60. Raytheon Co 27 3/4 B stk Hold for 35-40. Reynolds Metals 24 3/S B 2. 1 Buy-Hold Schlumberger 67 7/6 1.5 Buy-Hold Seaboard Airline 36 1/4 B 4.4 Hold for 37. Stevens, J. P. 30 7/S B (a) 4.9 Buy-Hold Union Bag-Camp 36 3/S B 4. 1 Buy-Hold U. S. Plywood 49 lis A- 4. 1 Buy-Hold U. S. Vitamin 24 5/6 A 2. 6 Hold for 30-32. Universal Oil Prod. 30 7/S B (b) 2.4 Buy-Hold Varian Associates 32 7/6 B Hold- Buy at 33- 30. February 11, 1963 (a) Plus stock dividend. (b) Cash extra included

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Tabell’s Market Letter – February 15, 1963

Tabell’s Market Letter – February 15, 1963

Tabell's Market Letter - February 15, 1963
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– \ — 'I Walston &- Co. Jnc FILE COpy l1om/,,''' Yod,. SII)('I; E.rrilO1lfl' NEW YORK SAN FRANCISCO LOS ANGElES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER February 15, 1963 Again last week the great majority of stock market indices moved into new high territory. The Dow-Jones Industrials reached a high of 689. 67,on Friday, and the Rails and Utilities also achieved new peaks The Rail action was particularly impressive as the carriers bettered their 1961 high, and, at the week's hlgh of 155. B5, the Dow-Jones Rails were at a level not matched since the early part of 1960. Although the rise since the October lows has been persistent, its recent momen- tum has slacked somewhat. As an example, by the end of November, the Industrial average had advanced 106 points or almost 20 in the short period of 25 trading days. The high reach ed at the end of November was 655.95. Since that time the average has oeen able to advance – . only5li14inraaing days. Pi substanTfaf minority ofSfCiCks, moreO'Ver, have not, so -far thlS year, moved ahead of thelr November-December peaks. This sort of action is hardly unexpected. As the market strength goes on, individua issues continue to reach the objectives outlined by the bases formed in 1962. As more and more of these objectives continue to be reached, it is logical to expect the averages, even while making new highs, to lose momentum. This is a process which can continue for some time and, indeed, there wlll not be too much reason to worry seriously about the level of the market until such time as the strength in the averages falls to be confirmed by breadth, volume and other indlCes. This failure has not yet occurred. Yet, this letter has repeatedly stated that we expect 1963 to be an inside year in the market – – that is, a year 10 which the averages will make neither a new high nor a new low. With the Dow-Jones Industrials now at 686, viously does not leave a great deal of room on the upside. of room between present levels and the old low or, rwn-e J prices, and the major support area in the 600-570 zchle'v Before becoming alarmed about the its proper perspective Common stock price 0r .s ic high of 740, this obt; there is a good deal etween current , it is necessary to put it in e one almost universal attribute After sharplY,–..Rrice1L-do . .rn.QYesideways for – a period of time in a distributive s 'Wr downward. Conversely, prices sel dom move straight up agaln but, rather, spend a period of hme in a so- called base area before lOt r major advance. Indeed, the very reason we feel that the market will 0 i on this move is the fact tha t it has not yet formed a sufficient long-term 0 . til such highs. In order to do this, it would, on a long-ter basis, have to continu 0 some time back and forth within the confines of the broad 525-700 area, with the p bility that a great majority of the subsequent work will be done in the upper part of thi range. Parallel action can be found in the 1946-1949 period. After the sharp decline 10 the Fall of 1946, it will be recalled, the averages moved up sharply into the Spring of 1947 in a move quite similar to the present one – although not quite as great in erms of length or percentage advance. The following two years saw the market trade back and forth in a relatively narrow range, laYlOg the base for the terrific advance that commen- ced in 1949. Although lt will probably not need two more years to enlarge the present base, it will certainly take a goodly period of time. And yet, during thiS basing-out period, the action of individual stocks will undoubt- edly be quite diverse. Here, in fact, is the probable key to stock market success over the next year. For a great many stocks, which made their highs as long ago as 1956, have alreaqyormed bases which indicate important new highs. To takea well kno,,,n-example, Standard Oil of New Jersey reached a high of 68 in 1957. Its low of 38 in 1960 was not even approached in the 1962 break. Viewed on a chart, the action of Standard of Jersey since late 1958, appears to be a long v-shaped base p&ttern — a pattern already sufficient to indicate considerably higher levels. A great many other stocks, by contrast, made their highs in 1959 or 1961 and have undergone practically no consolidation since reaching lows in mld-1962. It is quite evident tha t stocks of this type, and they are still in the majority, will have to do a great deal more work before long-term upside moves are indicated. Any decline that might take place from present levels would have a different meaning in different securities. For some stocks it would be a temporary drop, providing a buying opportunity just prior to a ma- jor upside move. In others, it would simply mean a return to, or through, the old lows as part of the process of forming a long-term base. Dow-Jones Ind. 686.07 Dow-Jones Rails 154. 96 ANTHONY W. TABELL WALSTON & CO. INC. Imll h('\ Jcttel Ilot lind Un/lei n I'll b tn he ,Ollh lied n .. nu I!'(I jn ..('11 ' II IU'lt IIIn t ITI (,l'llIltle.. I t'('1 t cll 1 hel ('til The mrOl m.rtll1 nUt1tl(',1 h .. reln I not I!II111ulI\('(I1 n .. tn U(rll!Ul) III tunlpif'i('IH. .. Ulltl the th,'r'r ,… nt '11101 undl'l no I'll I um .. t,lIlt… h I he ,11 ..1111,.1 U.. ,.1 11'1'1('''''111 \- hy \\nl ..ton &. Cn, IIH' All l'.prl'…. wn…. f 1!l1I101I .111' .. ul(,,\ tll ,hlllg'I' \\llhlIl 1Illc, \\'.,1,\,,11 t C lilt ,1I1110tTI1''I…. I'll '1 10,, un.l I' nlP)Vlc … thcrt'Jf, 111IIchnlc, .. ell 1'1,1 III IY hlile I\n mtcl,,,, III the Ct 111111(-. tllO'llll 111'1 h1 ('Itl Jill Illnll,l'l INll'i \ … Inloul,'d ,111.1 1'1('''''111(',1 n('I('/) .1'…1 Inr'fllal I Ol!nlllcni(1I nil d.lv to ol,IY III II I.('! .11111 1It .1' !\ '''llll'lctL' Add, ,n,d ,nf. Illll1f \\ ,til t tu lilli' ll'fu 'l'd t !J(')Clll 1 uIIl, … hd lUJOn I 'XlllCt . !

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Tabell’s Market Letter – February 21, 1963

Tabell’s Market Letter – February 21, 1963

Tabell's Market Letter - February 21, 1963
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Walston &- Co. Member8 Sell' York Sloek Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OIFICES CO….ST TO COAST AND OVERSEAS TABEll'S MARKET lETTER February 21, 1963 The Dow-Jones Industrials scored another new high this week. reaching an intra- day peak of 694.27 on Monday. The averages were not, however. able to hold their gains and by Friday had reacted to a low of 675.87. As pointed out last week, one of the most interesting facets of recent market action has been the action of the rails. Although the industrials at this week's top were well below their 1961 peak, the rails had moved slightly above their '61 high. This. to an extent, is a misleading statistic since the rails are still below their 1959 high, a level bettered by the in- dustrials at this week's top and, moreover, far below the peak made in 1956 when the indus- trials were selling for 525. Nonetheless, it is worthy of note that the rails have advanced 3610 from their Octoberlows, versus a riseof 26 for the indusfrials. -This constitutes the first time the rails have outperformed the industrials on a major move since 1958-59. From a technical point of view, most rail stocks. in common with the great major- ityof their industrial brethren, are at or close to their short-term upside objectives. How- ever, it should also be noted that, since 1959, many carriers have been building up base for mations which, when ultimately penetrated on the upside, could indicate substantially higher levels – in some cases as much as 100 above current prices. This is not to suggest that any such move is imminent, for the favorable develop- ments which affect the industry are essentially long-term ones. Nonetheless, these develop- ments are of sufficient importance, we believe, to warrant the inclusion of rail stocks in investment accounts which might not have considered them heretofore. Thor. . . . the railroad picture. boe ''toe whi'h , m to b. for the better in 0 (1) Favorable tax treatment in the form of credits has improved the earnings and cash flow pic dee' on and investment y as. The increased cash flow will enable roads to invest in new equipment whi ill w them to compete for traffic. One obvious example of such the ne utomobile hauling car which is -enabling from trucks. (2) Some initial seen. The recent report roads have es tima t W 90 e.automobil carrying business s the present labor problems are being . e . 1 Commission was essentially constructive. Rail- ve 200 million annually with even a few changes in archaic labor laws, c 600 million if all desired changes were enacted. This latter amount is more an income of Class I roads. (3) The Presi s transportation message, and recent ICC decisions, show a ten- dency toward liberaliz Hon of the regulatory climate. Strangely enough, the railroad rate picture will be best improved by allowing roads to decrease rates on bulk commodities, rather than increase them. Through such decreases they can regain a large part of the shipping lost to other forms of transportation and thus obtain the volume necessary to produce higher earnings. (4) The Interstate Commerce Commission is, on the evidence, favorably disposed toward the majority of pending mergers. The importance of mergers can fully be realized only by examining the basic nature of the railroad business. The business is one which re- quires heavy fixed expenses for maintenance of way and equipment. Essentially, railroad mileage in the United States is largely under-utilized. In fact, it was recently estimated that half the industry's tonnage is hauled on 10 of the track. Mergers will, of course, allow elimination of wasteful duplicating facilities and eventually allow merged roads to produce the same number of ton miles with a considerably reduced plant. All of the above factors are admittedly long-term, but as they slowly work out, the effect could be dynamic. The average railroad is one of the most highly leveraged businesse in America today, both in terms of capital structure and in ratio of fixed to variable perating expenses. Any minor improvement could produce truly dramatic effects on rallroad earnings. A number of carriers on our recommended list include Atchison Topeka & Santa Fe (26 1/2) and Seaboard Air R. R. (37). Other rails which. appear at the moment include, Kansas Clty Southern (43), Southern Rallway (59). and Umon PaClhc (35). These, and other quality railroads, would appear to be purchases on market weakness in longer-term capital growth accounts. Dow-Jones Ind. 681. 64 Dow-Jones Rails 153.12 ANTHONY W. TABELL WALSTON & CO. INC. ThiS market letter is not, and under no Circumstances IS to he construed 1111. an olter to IIcll or n soliCitation to buy any sccuntlc,; r('Ccrrc!llo herem The In (ormation contained herem is not RA to accuracy 01' oo!'lpletenC!9 And the CUI nls'\ln).! thereur It! not. oml undel no ell IS to be !'Imslilled 0.8, n rept e-enta- by Waillton & Co. Inc All expreSSIOns of OPinion tire lIubJect to chnn).(e wltholtt notice; Wah.ton & Co., Inc. and O!flcelll. Duectors, Stockholders and Employees thereor, purchase. sell and may have nn mterest In the securities mentttmerl het em ChiS market letter IS intended Rnd pre.-ented merely as R Keneral. mrormal commentary on dny to dny market news and not as B complete nnalYllt'l Atltlltlllnalm(olmntion \\ith le.1JoCct to uny se(,lIl1tleB refened to herein WIll be furntshed l\lIon request \\-.. 301

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Tabell’s Market Letter – March 01, 1963

Tabell’s Market Letter – March 01, 1963

Tabell's Market Letter - March 01, 1963
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Walston &Co. Inc .11flllleI S X fll' Y m Ie Stnrk Echal1f1f NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OffICES COAST TO COAST AND OVERSEAS TABflL'S MARKET LETTER March 1, 1963 For the first the stock market chalked up a significant and general decline. The Dow-Jones Industrial average, which had reached a peak of 694. 27 on February 18th, had, by the end of the week, plummeted to an intra-day low of 656. 66. Frida marked the eighth consecutive trading day in which a new intra-day low was made by the in- dustrials. Rails and Utilities showed similar weakness. In the stock market it is necessary not only to get the right answer, but also to ask the right questions. The question being most widely asked this week was, How far Will the decline cmtinue . It was not the right one. It can be answered, of course, with a fair degree of probability. There is no signifi- ca-nt top 'forma tion it'! the-Dow marKet .', indices. There is, furthermore, rather good support around the levels the Dow traded at last December – – roughly between 657 and 642. This support area is close enough to current levels so that any further decline should produce a rather attractive short-term buying op- portunity. However, the major question about stock market action has gone largely unasked — that is, the question of the character of the next rally. It will be helpful perhaps if we take a look at a few salient statistics. The following table shows the Friday close of the Dow-Jones Industrials each week since November, the percent change each week and the weeks' advances and declines. Week Ended Closing Dow-Jones 0/0 Change Advances Declines 10/26/62 11 /2 11/9 11/16 11/23 11/30 12/14 12/21 12/28 1/ 4/ 63 1/11 1/18 1/25 2/1 2/8 2/15 2/21 3/1 569.02 604. 58 616.13 630. 98 644. 87 649. 30 67 . 52 679.71 683.19 679.92 686.07 681. 64 659.72 -6.2 1.9 2.4 1\ c..Af 1. 7 1. 4 O. 1 1.1 0.5 – 0.5 0.9 O. 6 – 3. 2 0 997 1003 448 546 701 1177 974 774 913 745 598 782 524 350 (E) 137 279 214 300 356 ..,……–5-60 – 903 772 562 176 365 529 419 593 732 526 771 1000(E) A close study of the table shows a rather clear picture of a rise at a de- clining rate – – in other words, a loss of momentum. During November, for example, in the initial stages, the percentage rise each week was fairly sharp and around a thousand advan-. ces were normally scored. During December, the market paused, but a goodly number of stocks still advanced, and declines were not too serious. In ;January, the r-ise again reslililed but this time the gains were less sharp than they were in November and, moreover, the num , ber of advances were generally between 700 and 900 ins1;ead of well over a thousand. This week, as can be seen, produced the sharpest weekly decline so far and, although we have been forced to estima te the figures, probably a record number of declining stocks. If the next rally duplicates the momentum of January, there will be, for the time bein little cause for alarm in the stock market picture. If, however, it is accompanied by less vigorous gains, by unimpressive advance-decline figures, and by deteriorarion in other tech- nical indicators, the loss of momentum will then be clearly demonstrable. Such a rally should afford an opportunity to dispose of any unfavorably situated stocks still remaining in the investor's portfolio. ANTHONY W. TABELL Dow-Jones Ind. 659.72 WALSTON & CO. INC. Dow-Jones Rails 149.67 ThiS mnrke-t letter IS not. nnlt undCl no clfcum-'lnIlces I' to he contL \led AS, nn fTCI tn I'll 01 n to 1'IIY lillY ''(,1II111C''' 1efcil cd I ht'l eln The lnfrllluhnn 'untamed herem Ib nut ltllllluntcccillq to IICCIIlUCY I nnd the lhel(',r …. IIut nn,1 \\1\'(1'1 11 tv he .n-.t\1I1'1I n…. Il I 1'1l1c-.I'nl,\ t,n by Wnlston & Co. Illc All uf OIl1nlOn Ilte … uhJcl'l to ch,\!.!' Ilhut LltilC & (,(). Inc nn,\ OffICC!'I. nucclol …. StockhIllct-. IIncl Joml)loyee., thereof. lUlcha'lc. sell nncl mny hn\e nn mterest In the secllrltw' mcntwned helem 'fhl' IlIlllket lettel Intende.1 ,lIId plel'lllecl mel ely ,1-' n ..encrnl, mformnl commentary on dllY to dllY Mllrket n(ws Ilnd not as a compi(tc nnllhl A.I,htlnnl IIIfm IIInlLUn \\ dh 1(…..1'1'('1 II) ,111\' erllllll(, 1efel 1(11 to helelll \\ill be furnn,hed uPOn request \\ ,\ ;01

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