Tabell’s Market Letter – May 15, 1964

———- — W—-a–l-s–tloncn–&—C–o–. Mem/)el'. ,veil' Yo),k Siock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST NO OVERSEAS TABEll'S MARKET lETTER' May 15, 1964 1 t.B It is our sad duty to announce the untimely death Thursday night of Vernon C. Walston, founder and President of Walston & Co. Mr. Walston, who was 58, started our firm more than 33 years ago in San Francisco, and built it into one of the nation's largest investment banking and brokerage concerns with capital in excess of 23 million, over 90 branch offices and nearly 2,200 employees. Mr. Walston, during the past few years, personally handled the acquisitions of Cruttenden, Podesta & Milrer and J. R.. Williston & Beane. In the last 12 months he, together with the Corporation's Executive Committee, revised and strengthened the management team to meet the growth of the firm's business. Mr. Walston's passing will not affect the capital-of the Corporation, and Walston & Co. will continue to serve the public as previously. A senior officer of Walston & Co. states that the Walston family interests will remain actively involved in the business. Mr. Walston's two sons are officers of Walston & Co. Throughout the Walston organization, which extends from Switzerland to Honolulu, are a total of 108 company officers. The officers and employees of Walston & Co. extend their deepest sympathies to members of the Walston family. Last week's market was a desultory affair. The closing prices of the Dow-Jones Industrials held in an extremely narrow range of 827. 38 45 low. Advances and declines for the week appear, at this writing, to be a ut -6ilost other technical indicators moved in a more or less sidewise Technical market action has shown a slowly pattern since early April. Breadth action, which was widely noted in ave lost some of its popularity However, our breadth index has i t e r e signal since the start of the ad- vance from the December 23rd lows va1\,- Thebrea-dth -index reached-new high territory along with the the mid-April intra-day high of 831.63. However, the breadth i ex h 0 c n'hrm the May high of 836.06. The divergence has occurred in both w y breadth indices. Indications point to at least a minor downtrend t he distributional top patterns formed are, however, relatively small wit . downside indication in the 800-790 area. These tops could, of course, broa We continue to advise a 25/0 buying reserve. Many groups 11 probably show above average action in any market correction. The action of several of the rails has been most impressive over the past week. Seven railroad issues are on our recommended list. Santa-Fe, Illinois Central and Kansas City Southern reached new high territory during the past week. They should be held and bought on minor price declines. Other issues on our recommended list are Denver & Rio Grande, Norfolk & Western, Pennsylvania and Southern Railway. J. Ray McDermott (24 7/8) has been a disappointing issue in our recommended list. It appears, from a technical viewpoint, to have built up a sizable potential base pattern, but, until this week, it has shown little upside price action. Activity in this issue has increased sharply in the past tw.P days. At Friday's close of 24 7/8, the stock is near the 1964 high of 25 1/2. An upside penetration would be constructive. We continue to like this issue for long term holding. Two groups present very interesting potential patterns at this stage of the market pattern. They are Savings & Loans and Vending Machines. Both of these groups are selling close to their two-year lows. They should be watched very closely during the next market decline. Ability to hold within the broad trading areas already formed would be extremely constructive technical action. While these issues are speculative, the price appreciation potential appears to offset the price risk involved. Dow-Jones Ind. 826.23 Dow-Jones Rails 201.58 .Jtl I EDMUND W. TABELL WALSTON & CO. INC. This market letter IS not. and und('r no Circumstances 19 to be constillcti as, lin o8'CI to bell 01 a ijUhcltntloll to LilY any seem 1e(el'l cd 'to hC1Cln The inrlll mntion contained herem 19 not gunrantced as to 3Ccurncy 01 compietenc-.s and the fUI thereor II! not and undm IlO cncum'ltllnce! \; to be ('on,l1 lied ns n repre.. hon by Walstm & Co. Inc All expressIOns of opinion are bubeet to ('hnng-e \\lth..ut nltl('e 'WfIton & Co Inc. Elllli OfflC'ell!, Director!, fIn.1 gm))oyees thereof, eell nnd may have nn Intel cst In the secu'tle'l mentltlned heletn 'Chi! mnrJ…ellettel II! mtended tlnd IlrCIcntc.1 mer('ly nil a g-eneml mformal commentnry on day to day market newl! nnd not as n complete nnllbhl'l Addltwnnl lIlfUi mallon …. Ith to lillY ,,1'('1I,ltLI'II 'del 11'.1 to herein Will be furllll!hecJ upon request. \\.. 301