Tabell’s Market Letter – November 08, 1963

Wdlston &Co. —-Inc —– J/rlllllr,., Xrl( rnll. Sf()ck E.rchul1.Qe NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OF-FICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER November 8, 1963 '. days'of tlfefovr-day trading week and then par- tially recovered the earlier losses in the two final days. The intra-day low on the Dow-Jones Industrials for the week was reached on Wednesday at 738.41. Breadth action continued its deterlorating pattern. The short term breadth index has been in a downtrend since early September. Figures are not available for this week's long term breadth index, but the index probably declined below its September low even though the Industrial average held above the September low of 728. 63. This would indicate that the long term breadth index is also in a downtrend. The upside .objective of 7 60 is– probable that the general market has to move to a lower level and form a new base before the uptrend is resumed. We believe the decline will be corrective in nature rather than a broad liquidating movement like 1962. It will probably take the form of a normal technical correction of the sixteen-month advance from the May, 1962 lows. Such technical corrections usually retrace a third to a half of the preceding advance. Quite a few stocks have for.med poten- tial tops and the downside indications coincide with the normal one-third to one-half retrace- ment pattern. This is probably a more useful yardsbck in arriving at a downside projection and buying levels than in attempting a price projection On the averages. The net result of such a decline would be a broadening of the base pattern and eventually higher upside object- ives over the longer term Our latest Recommended List is available from your Account Executive. We have eliminated a number of issues and noted buying points on other issues noe on the recommended list, but which would b a aOe listing below some a ne-third to one-half retracement of the advance from the 1962 low column. The other columns are self-explanatory. It i are available at yields above 4 and also are se . g n b yin nge is in the last erest' 0 note how many issues t ' 10-year average Price- Earnings ratio. Amerada Petroleum 3 Amer. Home Prod. Ashland Oil 0 Borg Warner 8 Container Corp. Eaton Mfg. 36 General Cable 61 General Electric 81 Hooker Chemical 37 Libbey-Owens – Ford 54 Norfolk & Western 114 Pure Oil 42 Southern Railway 60 3. 97 1. 69 3.02 3.91 3. 10 1. 83 3. 54 9.16 3. 16 4. 98 1/3 to 1/2 Dividend Yield Correction 2. 00 2.7 68 -61 26 20.0 1. 57 2. 4 58 -55 13 10.4 1. 20 4.0 27 -25 12 11. 0 2.00 4. 1 46 -43 19 13 1 1. 00 3.0 29 -26 12 11 3 1. 80 5.0 36 -34 14 11.0 2.00 3. 4 51 -46 26 23. 3 2.00 2.4 75 -70 20 21. 7 1. 10 3. 0 35 -33 16 13.9 2.60 4.8 52 -50 12 10.0 5.50 4.8 112 -105 14 10.2 1. 60 3.8 42 -39 12 9.0 2.80 4. 6 60 -56 GRA)E Amer. Metal Prod. 19 American Radiator 17 Consol. Mining 27 Copperweld Steel 41 Hammermill Paper 36 Illinois Central Massey- Ferguson 51 16 Rayonier 30 JUegel Paper 34 Scoville Mfg.. .' 'lle 1.34 . Warner Swasey 69 Dow-Jones Ind. 750.81 Dow-Jones Rails 171. 80 1. 86 1. 44 1. 39 2. 66 2. 30 6.47 1. 63 2.01 2.27 2.333 5.89 11 11.0 12 11.6 19 18.1 15 12. 1 1. 00 .80 1. 20 2.00 5 2 19 -18 4. 7 16 -15 4.4 24 -23 4. 8 37 -35 16 12. 3 8 8.2 10 9. 1 1. 20 2.00 .50 3.3 33 -32 3 9 49 -45 3. 1 14 -13 15 11. 9 15 13. 2 14 12. 1 11 8. 3 1. 00 1. 20 1. 20 1. 85 3. 3 28 -25 3 5 32 -30 3 5 28-26 2. 6 63 -54 EDMUND W. TABELL WALSTON & CO. INC. Thl!l market Jettel is not. ami unde! no ClfCl11ll5tnnces 1' to he cnn ..llllefl ns. nn offci In ,,111 01 n sohcltutlUrl to hllY lin) ,'CUI I ('fen Cillo hel ('In The mC,,! mntlnn ('ollinmed heicin \.. nut j..(lIulnntC('IIIU! to IlC'lll ncy or cnmlllctcnc,s lind the fin thel ('If nut, nnrl \\I11\el 1111 I'HClllllstllntes to be ned I, n. tl.on by \Ialton & Co, In.. All uf U)HnUln nil' … to ehm!.c \\Itlwut nll\1.e, & C, Inc, nn,1 OffleCl…. , DucttOlIo nnd thereof. )lulchIlSI', sell nntl mny hnvc nn Interest In the 'CCUrltlc mcnll.IlCI\ hclClll fhl mad,et IcHel Ill IOtenlleo.l nnll precntetl mel ely us n gcneral mrurmoll'ommentalY nn tiny to day murkd all.1 not lUI n complete A.I.htumnllnCulfllotlJn ….. ,th 1(''')'I'(t to ,m)' I'I'UI1tl(,,, IcCellcti tu hClelll willtle flU nJ'Ihc1l IIpon requcst \\.\ ,01 – –