Viewing Month: July 1964

Tabell’s Market Letter – July 02, 1964

Tabell’s Market Letter – July 02, 1964

Tabell's Market Letter - July 02, 1964
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Walston &Co. Inc Members New YOTk Stock Exchange NEW YORK SAN FRANCISCO lOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LmER July 2, 1964 A strong mid-week rally carried both the Dow-Jones Industrials and the Rails into new high territory. At the week's intra-day high of 844.75, the Industrials were in the lower part of the 840-850 area suggested as the upside potential of the March-June base. Our ad- vice to lighten commitments on strength when upside potentials are reached, continues. Several issues on our recommended list reached new high territory or have broken out on the upside of long trading areas. Probably Pure Oil(57 1/4)was the most spectacular performer. The stock originally entered our list in January. It reached a new high of 58 this week on the announcement of a new bid for its properties equivalent to roughly 65 a share. Suggest profit taking if that is approached. With general strength in the rails, five of the seven rails in our recommended list reached new high territory. Atchison, Topeka & Santa Fe (34 3/4) and Pennsvlvania Railroad ( 35) have been particularly strong recently. The latter issue, which was originally recom- mended at 18 3/4 last August, has finally broken out on the upside of the 29-34 trading area' in which it has held since February to reach a high of 351/4. Both fundamentally and techni- cally, Pennsylvania R. R. indicates higher levels over the longer term. Earnings for 1964are estimated at 3.50 a share on a consolidated basis to include the earnings of the railroad, plus the undistributed earnings of the wholly-owned Pennsylvania Company subsidiary. Earn- ings for the railroad itself are estima ted at 2.50 a share as compared to 68 a share in 196, Book value has been estimated at over 100 a share. The most exciting long-term potential is the possible merger with New York Central which could provide estimated savings of around 70 million pretax after five years. This is, of course, a the merger may not get ICC approval. However, even on its own, Pennsylvania c d ificant earnings im- provement over the next several years. The e a ked a sound diversifica- tion program. The plan to acquire the remaining ing lOt st in Buckeye Pipe Line (Pennsylvania already owns a one-third 's a i lOt. Assuming ICC approval, this acquisition could be the start of further 'div lfication. Would continue to hold Pennsylvania and theother.railsin long term capital appreciation.- Scovill Manufacturing mended list and still appears r I since inclusion in our recomcurrent levels. Scovill was incorporated way back in 1850 s vast number of bra a 1 ' n every year of its existence. It manufactures a r cts for both industry and the consumer. New manage- ment has brought abo ism es and earnings trend for the past four years. Earnings for the twelve months e de rch 31st, 1964 were 2.93. Selling at 12.3 times earnings to it'yield 4.30/0 on the 1. 50 ual dividend, and with a book value of over 50 a share, the stock has long term appeal our opinion. The technical pattern is favorable. The stock sold as high as 40114 in 1956. Fruehauf Corp. (32 3/4) has done little marketwise for eighteen months. The price range between January, 1963 and the present has been roughly 27 to 33. Ability to break out of this trading area on the upside would be technically constructive. We believe Fruehauf has speculative appeal. Sales and earnings have been in a slow but steady uptrend since 1961. 1963 earnings were 2.37 a share and estimated earnings of 2.75 for 1964 are possible. Allowing for full conversion of the convertible debentures and full exercise of management options would bring estimated earnings down to 2.40 a share. At present price levels, the stock is selling at 12.2 times estimated 1964 earnings on a fully diluted basis. The stock yields over 4.60/0 on the recently raised 37 1/2 quarterly dividend. With labor negotiation with the Teamsters Union out of the way, order backlogs have moved up sharply and the in- creased truck-trailer demand should continue over the foreseeable future. Foote Mineral (155/8), one of the issues in the low-priced speculative category of our recommended list, has broken out of the 9-15 trading area in which it has held since early 1962. Foote is a leading producer of electrolytic manganese and lithium metal, and has a substantial growth potential. The stock sold as high as 60 in 1957. Earnings reached a high of 1.87 a share in 1955 and dropped to 22 a share in 1962. Earnings in 1963 were 50 a share and are estimated at 75 – 85 a share in 1964. The stock is an interesting long-term speculation if available at around present levels. Dow-Jones Ind. 841. 47 Dow-Jones Rails 217. 80 EDMUND W. TABELL WALSTON & CO. INC. Thill mnrket letter is not. and under no eircumstances IS to be construed as. an offer to sell or n soitcltatlOn to buy any SecUrities referred to herein The information ('ontnlIled herem IS not gunrnnteed 8S to nccuracy or completeness and the furnl9hlng thereof 18 not. and under no circumstances IS to be construed as, a representa- tIOn by \'alston & Co In,. All expressions of opinion arc subject to chanJ!;e Without notice Walston & Co. Inc., and Officers, Directors, Stockholders and thereof, sell Bnd may ha\e an In the securities mentlUned herem ThiS letter IS intended and presented merely us a general, Infflrmal comm..ntnry on day to day market news nnd not as a complete analYSIS Adthtlonal mformatlOn With respect to any securities referred to herem Will be furnio;hed upon request \\ N 301 I

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Tabell’s Market Letter – July 10, 1964

Tabell’s Market Letter – July 10, 1964

Tabell's Market Letter - July 10, 1964
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W—-a–l-s–tIonnc–&—-C–o–. Memben New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER July 10, 1964 CLEVITE CORPORATION Current Price 46 At its present price, the common stock of Current Dividend 1. 40 Clevite Corporation sells at some 11 1/2 times Current Yield 3.1 Long Term Debt 4. 50 Cum. Pfd. Common Stock -Sales 1964-E Sales 1963 6,631,247 24,031 shs. 1,948,339 shs. 110,000,050 103, 150,000 Earn. Pe r Sh. '1964-E Earn. Per Sh. 1963 4.00 3.57 1964 estimated earnings of 4.00 per share. It has sold at a higher price/earnings ratio than this at some time during every year since 1956 and, indeed, never sold this low in relation to earnings during most of the 1960-61 period – wilen tile stock The failure of Clevite's stock to command a higher multiple probably stems from a tenden cy on the part of the financial community to place the company in one of two categories, Mkt. Range 1964-60 72 1/2 – 31 1/2 neither of which fully describes it. Manyana- lysts, on the one hand, tend to regard the stock as a rather unglamorous auto equipment company and thus unable to command a high multiph. Others tend to regard it as a rather marginal scientific-technological operation whose value was over inflated in the speculative boom of the early 1960's, and should correspond- Mingly be downgraded today. Such an either-or analysis inhiJits a real understanding of ClevLitee.t us take the first conception. Clevite is, admittedl , a to the automo- tive industry. Some two-thirds of its sales are accoed b e earings and the greater number of these find their way into automob' i0 e to draw, moreover, an extremely close correlation between sal nd' ces of auto production. Stop- ping at this point, however, fails to take into t t e ellence of Clevite's bearing , a.multiplicity of sizes and types of bearings. u of process control, these bearings are turned out using I it1\ The efficiencies of this plant are at least partially demon f that the company has been able to increase earn- ings in each of the s ur. , pite the impact of heavy losses in the semiconductor area which reached 1 . 63 and will only be partially mitigated this year. On the other han , 't IS to easy to point to these semiconductor losses and downgrade Clevite along with the r of the semiconductor industry. This divison, located in Natick, Mass., has, admitte y, been a thorn in the company's side in recent years, but it is by no means the company's only venture in the scientific area and, indeed, results of the other tech nological divisions stand in happy contrast to it. Brush Instrument is the largest prOducer of pen-writing oscillographs used in various research applications, and sales of this division have expanded sharply over recent years with gratifying profit rna rgins. Basic research takes place in a number of different areas, including that of Naval armaments and the company's research capability in metallurgy, particularly as it applies to the problem of metal to metal contacts which manifests itself in bearing manufacture, is high. The ring bearing, to be discussed below, is a product of just such research. Clevite, in summary, appears to be selling at record lows in relation to earning power at a time when significant imp.rovement is in the offing. Such improvement couldctake place in a number of areas. (1) Certainly a strenuous effort will be made to eliminate or reverse the, semiconductor losses. (2) Brush, and the other scientific divisions, should add increasing amounts to earnings over the years. (3) A new product, the ring bearing, could have an important impact on the entire bearing field. This bearing, consisting of two concentric ring operates on the principle of metal to metal contact as does the familiar sleeve bearing, but incorporates capabilities of the much more expensive ball, roller and needle bearings. The total market for bearings of this type is over 900 million annually and it is easy to see the significance that even a small penetration of this market would hold for Clevite. While commercial sales of the ring bearing are not imminent, they provide a strong long range plus. From a technical point of view Clevite has an upside objective of 57 followed by considerabl higher levels, with support not too far under the current market. It is being added to our recommended .list.fo.r..long..term .capitl appreciation. Dow-Jones Ind. 847.51 Dow-Jopes Rails 218.20 ANTHONY W. TABELL WALSTON & CO. INC. Thl.. m,lrket Jettel IS lIot. nnd under no cIrcumstances IS to be construed as, nn offer to sell or 8 soliCItatIOn to buy any o;ecunl1C,'s referred to herem The information rtlntllincd herem IS not Junrnntccd as to ac('uracy or and the furnlshmg- thereof not, and under no circumstances IS to be construed as, n rePresenta. 1wn hy & Co Inc. All eKpr(!'1stQnll of O)lInJon nre subject to chllnfe Without 'Walston & Co, Inc, and OfflcefB, DIrectors. Stockholders and Implov('('s thereof, purchase, sell .md mllY have an interpst III the seCUrities mentIoned hereHI. ThIS market letter IS mtended and presented merely as a general, IlIformnl commontnry on dny to flay market news and not us n complete Additional information With respect to any securltles referred to hereill WIll be fUl nlhc!l upon requeMt \\ X 301

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Tabell’s Market Letter – July 16, 1964

Tabell’s Market Letter – July 16, 1964

Tabell's Market Letter - July 16, 1964
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Walston &Co. Inc. -,;-….;….;… Mem beTs New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS EDMUND W. TABELl'S RECOMMENDED LIST QUALITY & LONG TERM GROWTH Close Qual- 7/15/64 ity Comment Amerada 82 1/8 A Buy at 80-75. American Can 46 B Buy Amer. Home Pro 68 3/8 A Hold DuPont 262 1/2 A Hold General Elec. 83 5/8 A Buy at 80-75. Gulf Oil 57 1/2 A Buy on dips. Close Qual7/15/64 Norf.& West. 138 1/4 A Penney, J. C. 57 1/4 A Reynolds Tob. 44 1/8 A Royal Dutch 46 1/2 A Std. Oil N. J. 88 1/2 A Comment Buy on dips. Hold for 65 Buy Buy on dips. Hold PRICE APPRECIATION Close Qual- 7/15/64 Atchison, Top. 35 1/4 A- Beaunit Corp. 33 1/2 B Clark Equip.. 53 1/8 A- Clevite 46 7/8 B Cluett, Peabody 54 7/8 B Conso!. Coal 50 1/4 A- Copperweld Steel 55 B Denver, Rio G 22 B Disney, Walt 44 B Eaton Mfg. 47 1/2 B First Charter F 33 3/8 Fruehauf Trail. 32 7/8 B Illinois Central 66 1/8 B Intern'l Min. Chern. 70 1/8 A- Kansas City So. 48 3/8 A- Kerr McGee 41 1/2 A- Korvette, E. J. 36 1/4 B McDermott, R. J. 27 7/8 B Midland Ross 37 3/8 B Comment Buy on dips Buy Buy at 50-45 Buy Buy at 55 -50 Buy at 50-45 Buy at 53-50 Buy on dips Buy on dips Buy on dips Buy on dips Buy Buy on dips Buy at 70-65 Buy at 48-45 Holdfar 48-52 Hold Buy Hold for 45 Close Qual- 7/15/64 Newmont Min. 37 5/8 A- No. Amer. Car 30 A Penn R. R. 34 3/4 B- Pure Oil 58 1/4 A Rayonier 36 B Reynolds Met. 36 3/4 B RIegel Paper 41 1/2 B Schlumberger 67 A Scoville Mfg 36 1/4 B Southern Rwy 69 3/4 B Stevens, J. p. 41 7/8 B Storer Broad. 45 7/8 B Sundstrand 21 B Swingline A 35 B United Fruit 22 3/8 B U. S. Plywood 34 1/4 A- Univ.Oil Prod. 343/8 B Vornado, Inc. 31 3/8 Comment Buy on dips Buy BUY'on dips Hold for 60-64 Buy at 35-32 Buy at 37-34 Buy at 40-35 Buy Buy Buy on dips Buy on dips Buy on dips Buy Buy Buy Buy on dips Buy on dips Buy on dips LOW- PRICED SPECULATIVE Close Qual- Close 7/15/64 Comment 7/15/64 Amer. Metal Pro 21 7/8 B Buy on dips Microwave 10 7/8 Amer. Radiator 22 3/8 B Buy Mohasco 13 1/2 Audio Devices 10 1/2 B- Hold National Can 18 Braniff Airways 24 1/4 B Hold Pacific Pete 12 7/8 Campbell Chib. 3 3/8 Buy as Spec. Raytheon 23 1/4 El Paso Nat! Gas 20 3/4 B Hold Reeves Bros. 18 Foote Mine ral 17 5/8 B Buy on dips Seaboard W. Air 6 3/8 Gt. West. Finan. 13 Buy on dips Sperry Rand 14 1/4 Hewlett Packard 19 3/8 B Buy on dips Univ. Match 13 1/4 Intern'l Packers 11 1/8 B Hold Varian Assoc. 11 1/4 Mesabi Trust 14 3/4 – Buy for income. Vulcan Mat. 16 1/2 Quality B B BB- B C B B B B Comment Hold Buy Buy Buy Buy Hold for 26 Hold Hold Buy Hold Buy July 16,1964 …. ThiS lIulletm IS not, ami Hn,lr III ell' I he 1t.,.1n olft', to ' II ..ht Illliion to) lmy ,my refer! eu tn h('lcm Th(' inf01 maluJIl cnn. talne, herr'ln IIllt by I;lun 8.. t…. Inc All l aCClIl,Il'V HI .lnri the rmlll-.hlll)t lhclcl)f lIt nd under IIU 1 to be cont.trucd a .. of (,,'inIOn .111 IllhJect to rh.lnj.('(' without & C Inc ,,d Offl'C'r;, …, SwekhuldC'n. and fmplo)et!I thC'rcor, Ilurehae, ,('11 nnd nlny hvc ,m 1I1t1'rC'llt III the '(lIrHIC nlpntlIlC' hClcm TIll … IS Intenderl and 11lC''''Cllted merely n; n RCneral. mformlll tary and not j, Addll\n.il mrrnlHlton \\Itlt re… pcrt In nny '('(!llltle… '('(CII 10 herein \1.111 he ftllll\hed 01)()n rc(uest WN-91.6 ..

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Tabell’s Market Letter – July 16, 1964

Tabell’s Market Letter – July 16, 1964

Tabell's Market Letter - July 16, 1964
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W—a-lsltnocn.&–C-o-. Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS EDMUND W. TABELl'S RECOMMENDED LIST QUALITY & LONG TERM GROWTH Close 9/15/64 Amerada 80 American Can 44 1/2 General Elec. 87 5/S Gulf Oil 57 3/8 Norfolk & West. 1291/2 Qual- J!L Comment A Buy on dips Bf- Buy A Buy on dips A Buy on dips A Buy on dips Close 9/15/64 Penney, JC 59 5/8 Reynolds Tab. 45 Royal Dutch 45 1/8 Std. Oil NJ 86 Qual- A A A A Comment Hold for 65 Buy on dips Buy on dips Hold PRICE APPRECIATION Close Qual- 9/15/64 Atchison, Top. 33 1f 4 A- Beaunit Corp. 32 3/4 B Clark Equip. 54 5/8 A- Clevite 443/4 B Cluett, Peabody 54 3/8 B Consol. Coal 52 3/4 A- Copperweld Steel 58 1/4 B Crowell Collier 24 1/2 B Denver, Rio G 21 1/4 B Disney, Walt 45 B Eaton Mfg. 46 7/8 B First Charter F 30 Fruehauf Trail. 33 3/8 B Gen'l Dynamics 34 7/8 Illinois Central 62 3/4 B Inte rn 'I Min. Chern. 71 1/4 A- Kansas City So. 45 1/4 A- Koppers Co. 47 3/4 B Korvette, E. J. 34 3/8 B McDermott, J ..R. 32 1/4 B Comment Buy on dips Buy Sell at 60 Buy Buy Buy at 50-45 Buy on dips Buy Buy on dips Buy on dips Buy on dips Buy on dips Buy on dips Buy Buy on dips Buy at 70-65 Buy Buy Hold Buy on dips Close Qual- 9/15/64 Metromedia 38 5/S B Midland Ross 40 3/4 B Newmont Min. 45 1/2 A- N.Amer. Car 31 7/8 A Penn. R. R. 38 3/8 B- Rayonier 37 B Reynolds Met. 33 5/8 B Riegel Paper 41 1/2 B Schlumbe rger 71 A Scoville Mfg 37 1/8 B Shell Oil 49 3/4 A Southern Rwy 64 1/4 B Stevens, J. P. 42 3/8 B Storer Broad. 49 1/2 B Sundstrand 22 B Swingline A 37 5/8 B United Fruit 21 3/4 B U. S. Plywood 38 3/4 A- Varnado, Inc. 30 1/4 Comment Buy on dips Buy on dips Buy on dips Buy Buy on dips Buy on dips Buy on dips Buy at 40-35 Buy Buy Buy on dips Buy on dips Buy on dips Buy on dips Buy Buy Buy Buy on dips Buy on dips LOW-PRICED SPEC ULA TIVE Close Qual- 9/15/64 ity Comment Amer. Metal Pro 22 B Buy on dips Amer. Radiator 22 1/8 B Buy on dips Audio Devices 9 3/8 B- Hold Braniff Airways 22 1/8 B Hold Campbell Chib. 4 3/8 Buyas Spec. EI Paso Nat! Gas 21 1/4 B Hold Foote Mineral 16 1/2 B Buy on dips Gr. West Financial 12 5/8 Buy on dips Hewlett Packard 19 1/8 B Buy on dips Intern'l Packers 11 7/8 B Hold Mesabi Trust 15 1/4 Buy for inc. Close Qual- 9/15/64 !!L Microwave 9 1/2 B Mohasco 14 B National Can 18 B- Pacific Pete 11 3/4 B- Raytheon 23 3/8 Reeves Bros. 17 3/4 B Seaboard W.Air. 65/8 C Sperry Rand 14 B Univ. Match 14 3/4 B Varian Assoc. 13 3/4 B Vulcan Mat. 16 3/8 B Comment Buy Buy Buy Buy Buy Hold for 26 Hold Hold Buy Hold Buy American Home Products (661/8), duPont (272), Kerr McGee (475/8), Pure Oil (62 3/4) and Universal Oil Products (31 1/2) have been dropped from the Recommended List since the list of July 16, 1964. Crowell Collier, General Dynamics, Koppers Company, Metromedia and Shell Oil have been adred. September 16, 1964 ThiS Bulletm IS not, and under no cllcumslnnccs is to be construed as, an ofTet to sell 01 B l'iohcilntlOn to buy any securities refcned to herein. The Information con tained herem by Wlliston & IeS lnl,otIn/,cuoA.rlalnteeu A'l to or Rnd the furnihlnJ. I.'! not, 8.nd under no circumstances 18 to be construed 811, a representation of opinion are subject to Without notice Wal!ton & Co. Inc, and Officers, D.rectors. Stockholders and Employees thercof, purchase. sell and may hale an mterest In the SecUrities mentIOned herem This Bulletin IS Intended nnd presented merely as a general. Informal commen- tary and not DS II. complete analYSIS Additional informatIOn With respect to any referred to herem Will be rurmshed opon request. WN-916

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Tabell’s Market Letter – July 17, 1964

Tabell’s Market Letter – July 17, 1964

Tabell's Market Letter - July 17, 1964
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Walston &Co. —–Inc —– Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER July 17, 1964 On Friday, all three Dow-Jones avera'ges'm-oved modestly above the previous week's all-time highs. The near term objective on the Industrial average has been reached and, from a technical viewpoint, a consolidating action is probably needed before a wide move in either direction is indicated. The amount of fluctuation in the Industrial average since the first of the year has been remarkably small as compared to price swings in recent years. So far this year the Dow-Jones Industrials have traced only 37 moves up and down in units of five points. This is at the rate of approximately 72 such moves annually. This compares with 122 such swings in 1961, 204 in 1962 and 114 in 1963. Since the averages were then greater than indicated above when the compared to present price mo19v6e1m;.e6nc3t.ps..e,dAos9a result, the congestion areas on the point and figure charts of the various averages are relatively small and show no indication of an important broad move in either direction. The advance from the June 15th low of 796. 90 has been brought about largely by a cessation of the March-June selling pressure rather than any great increase in buying power The 10-week moving totals of volume on the NYSE indicate that downside volume has dropped sharply in recent weeks and is near the lows reached in March. On the other hand, upside volume has so far failed to show a comparable increase. It is well below the highs reached in March, or even in June of 1963. This would seemingly indicate the lack of sizable public participation on the buying side. Considering the increasing number of listed shares, normal volume of trading probably should be around the eight-million-share level rather than the present level of under five million shares. Until broader occurs, the market is vulnerable to selling pressure brought about by ex n INS developments. Regardless of the averages, it has been our t a an ocks, from a techni- cal viewpoint, have been in broad long term area r the past two years. Whether or not this results in a breakout on t mmediate future, or at some later date, is, of o. v su should offer excellent. . long.er-term.opportumttes.–Two ,such -s . -n r- o mTIlended-bst-aTeJ' RayMcDermOlt (28 1/4) and Schlumber er, oJ..tMse companies provide oil well drilling services and an increasi g fut could result from offshore petroleum and gas exploration in th a J. Ra McD i to being a leading factor in the engineering and con- orms, also has sizable oil and gas reserves of its own. Earnings for the twelv s ending March 30th totaled 2.12 a share which was down from 2.70 in the pre' s twelve-month period. Present indications point to earnings of around 3.00 a share in the next fiscal period. Increasing areas are opening up for offshore development. These include the Persian Gulf and the coasts of Mexico, Japan, Alaska, Nigeria and Libya, as well as the North Sea area. McDermott reached a high of 33 in early 1962 and dropped to a low of 19 later in the year. It has built up a sizable potential base pattern with- in this area with technical objectives considerably above present levels. Regardless of im- mediate action, the stock appears, in our opinion, to be a most interesting long term holding Schlumberger, Ltd. should also benefit from new major oil and gas developments. The company provides oil well drilling services including seismic logging of underground form- ations. These services account for 50 of revenues. The other half of revenues are contri- buted by the electronics divisions which industrial control systems, telelI!etry tems for aircraft and missiles, radio and high fidelity kits and television test equipment. Earnings for the twelve months ending March 30th were 4. 20. Technically, the stock has an interesting formation. A high of 981/4, 50 above current levels, was reached early in 1962, and a low of 49 later in the year. Since 1963, the stock has ranged in the 54-75 zone. Recently, the stock has been showing improving relative strength action. The long potential base has a substantial upside potential for the longer term. A new edition of our recommended list will be in the hands of Account Executives earl next week. Two issues, American Can (45 3/8) and Clevite Corp. (46 3/8) have been added since the last edition. Two issues, Libby-Owens-Ford Glass(59 1/2) and Union Bag-Camp Paper (34 3/4) have been removed. Dow-Jones Ind. 851. 35 Dow-Jones Rails 220.98 EDMUND W. TABELL WALSTON & CO. INC. ThIS mnrket Idwr LS nOI. and under no elrcumRtnnces is to be eonstrued as. nn after to sell or a Boh(';ltBtlOn to bu) any !leeuritleH reCl!rred Ito herem The information contamed herem Is not guaranteed as to BCcUrncy or completeness and the !urnlshml! therco! IS not, and undel no circumstances is to be as, a representa- tH.n h & Co Inc All el'pressione of opinion are subJect to ehanJ!e Without notice Walston & Co, Inc., and Officers, Directors. Stockholders and thereot, sell and may have an Interest in the lIecurlties mentlOned herem. ThiS market Jetter is intended and presented merely 8S 8 general. mformal f'omm ..ntnry 6n day to dny market news and not as II. complete annlysis AdditIOnal mformatlon WIth respect to any securltlee referred to herem WIll be hu IIpon request \\ r.; J01

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Tabell’s Market Letter – July 24, 1964

Tabell’s Market Letter – July 24, 1964

Tabell's Market Letter - July 24, 1964
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. . – – — –..-;.- —– – . Walston &- Co. Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LEnER July 24,1964 Despite a flow of favorable-s-econd quarter earnings reports, the stock market, as measured by the averages, continued its sidewise movement. Friday's closing level of 845.64 on the Dow-Jones Industrial average compares with the 851. 35 closing of the pre- vious week and there were more declines than advances on each day of the week. As noted in last week's letter, the advance from the June low of 796.90 has been brought about by a sharp decline in selling pressure rather than increasing buying power. Rallies of this nature rarely result in a sustained uptrend. Since the upside potential of 850 has been reached, it would appear that a further consolidating period is needed. Since the beginning of the.ye3lr, price ll.Qvements in the Jndustrial average have been indicated by a relativel.y small base and top patterns. Another such pattern may be in the process of forma tion. The next support level is around the 835-825 area. At the moment, there is no indication of a move of great importance in either direction. As we have continually stated, the action of individual issues is of much greater importance than the action of an average. In fact, at the moment, the various industrial averages present a very distorted picture. It would appear that with the Dow-Jones Indus- trials selling at over 100 points higher than the December 1961 intra-day high of 741.30, and over 300 points higher than the June 1962 low of 524.55, that most stocks are selling in new high territory. This is not the true picture. Recently, we tabulated the price action of five hundred leading industrial stocks since 1956. Over 67 of these issues, at their recent highs, were selling lower than their 1956-1961 highs of three to eight years ago. If all of the common stock issues listed on the New York Stock Exchange, plus the speculative leaders of 19!W6196 and American d market, were included, we would probably find that over 80 of , eir recent highs, were selling below the highs of three to eight years ago. to!'Jhe t issues in the Dow-Jones Industrial average, only eleven are selling -1961 highs. Nineteen, or al- most two-thirds, are selling below in the Inaustrfal average r'ea-chenli i e eight years ago. If all t!J.irty stocks -1 ghson the same day, the average would have reached 911 instead of stock reached its high in 1956-1961, each stock declined ei'lod. If each stock reached its low on the same day, the average wou each issue. Since a h a e 4, a decline of 45 from the respective highs of 1al average has advanced sharply. However, if all thirty stocks in the averag e ch eir recent highs on the same day, the Industrial average would have been 890. T 1S still below the 1956-1961 high figure of 911. What does this all mean It means, for one thing, that the general ma rket is not as high as the averages indicate. It also confirms, in our opinin, the thought that the market reached a major top in the 1956-1961 period, a major bottom in the 1960-1962 period and is now in a broad accumulation area that will result in much higher prices in the latter part of the 1960's. This accumulation period will probably continue somewhat longer before the start of a broad advance in which the majority of stocks participate. This concept is somewhat contrary to the general opinion that the market is still in the broad bull market move that started in 1949. If this opinion is the correct one, there must be a corollary. Whenever the high of the fifteen-year bull market is reached, it must be followed by a correction.of major proportions. We do not agree with this opinion. It is our thought that the advance from the 1949 lows ended in the 1957-1961 period and was fully corrected by the 1962 decline – the sharpest percentage drop in twenty-five years. Probably one more decline is needed before a new broad major advance. Such a decline, in our opinion, will hold considerably above the 1962 lows. A one-third to one-half retrace ment of the advance from the 1962 lows to whatever high is made on the present move is the maximum we can envision at the moment. Such a decline, if it occurs, would present a most attractive buying opportunity. Dow-Jones Ind. 845.64 Dow-Jones Rails 220.48 EDMUND W. TABELL WALSTON & CO. INC. ThiS mnrh.et letter IS not, lind under no circumstances IS to be construed as, an ofTer to SE'lI or n solicitatiOn to buy any Recurities referred to herein The information ntmnen herem IS not Illnrantced to accuracy or comp!.eteness and the fUTntBtnn, thereof lS not, and unde1 no clrcumatances 18 to be construed 8a, a rep-resenta tiun by Walston & Co, Inc All e'l(presslOns of opimon are suhJcct to chan!'!!! \qthout notice \yalston & Co, Inc.' and OffICers, DIrectors, Stockholders and thereof, I'ul chllse-, sell and may bll\'c nn anterest 10 the securItIes mentIOned hereIn ThiS market letter 18 mtcrld('d and presented merely as a general, informal comm..ntar.j. on dny to day market news and not 08 a complete Ilnalysls AddItIonal informatIOn With reqpect to any securltleB referred to herein be furmqhC'cl upon rcquC!st \\ N 301

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Tabell’s Market Letter – July 31, 1964

Tabell’s Market Letter – July 31, 1964

Tabell's Market Letter - July 31, 1964
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Walston &Co. Inc, Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET LEnER July 31, 1964 The Dow-Jones Industrial average d'eclined to the upper part of the suggested 835-825 support level to reach an intra-day low of 833.47 on Tuesday. This decline, incidentally, was approximately a one-third retracement of the advance from the June low of 796.90 to the re- cent high of 855.19. Since the start of the year, price movements in the Industrial average have consisted of a series of small base patterns followed by an uptrend and a normal tech- nical correction of a third to a half of the previous advance. This has kept the market in sound technical condition. At no time during this period has the market been sharply over- bought or oversold. The near term pattern suggests another consolidating period before a move of any great significance is indicated. In last week's letter we stated that the recent price action of the various Industrial averages has not been an accurate pattern of what has been happening in individua-l-stocks. For example, the Dow-Jones Industrial average reached its 1963 high of 761. 21 in October. At Thursday's close of 839.37, the average was approximately 90/0 above the 1963 high. The table below shows the price performance on each of the thirty stocks in the Average since their 1963 highs. The month in Clqse 7/30/64 which the 1963 1963 High high was rliachedi ' Month Reached salAsdo'v70naontceed.or Decline – Intern'l Harvester Swift & Co. Sears Roebuck 80 52 117 63 45 102 May December September 27 16 15 Standard Oil of N. J. 88 77 December 14 International Nickel 78 69 WJohns Manville 59 52 \/Lay 13 0 Owens Illinois Glass DOW-JONES IN DUS. Texaco Eastman Kodak Woolworth Bethlehem Steel DuPont, DeNemours – 101 839 81 130 29 37 .264 89 Bb 767 , er 75 A. t &j \).122 \\!Apr' W V ember April Decembe-r- 7 7 6 .6 Chrysler General Motors Procter & Gamble American Tel & Tel 5 4 72 5 October 1 October 81 October 71 November 4 4 4 2 Goodyear 43 October 2 Union Carbide American Tobacco U. S. Steel 124 34 58 122 34 58 December April October o2 o General Foods 90 91 September Aluminum Co 68 70 October Standard Oil of Calif. 66 69 September 1 3 4 General Electric 84 88 October 5 American Can 44 47 August 6 Allied Chemical 53 59 December United Aircraft 48 54 January International Paper 32 36 Septembe!' Westinghouse Elec. 35 41 October Anaconda 45 54 June 10 10 11 14 17 Adjusted for split. It is interesting to note that unless the right stocks were bought, the holder of individual issues in the Inaustrial average would not have shown much profit over the past seven to ten months. Only seven of the thirty issues have acted better than the Industrial average. Eleven have shown below average action, two have shown no gain and ten are selling lower than the highs of seven to ten months ago. , rhe only point of the above table is to again stress ou, thought that, c!es pite the new hlghs m the averages,the great bulk of stocks are below thelr 1950-1961 hlghs and are in ou opmion, in a broaa accumulation range that will result in much higher leveIs in the later part of the 1960's. Individual stiYck'S'ar,e'..irRi(!\ti!ferti!ht stages of the techmcal pattern. Some C , lower levels before the start of the broad advance. Others have already built up sufficient po- tential base patterns to indicate the type are in our recommended list. probability of anEaDdMvaUnNceDawt .anTAeaBrEliLeLr date. Issues of thi DDoouwr–JJoonneeis' RInad,l.J 8 4211. 71.0gO WALSTON & CO. INC. ThiS market letter IS not and under no circumstancC'9 IS to be construed as, an offer to eell or a soliCItation to buy any securitIes referred to herem The InformatIOn contmned herem 18 not 110n b)' olston &. Co, Inc. All as to accuracy expreSSIOns of or completeness and OPinIOn are subJect the to furnishi change ng there Without of IS no nohce t, and Walst un on der & no circumstances is to be construed as, n. repreaenwCo, Inc, and Officers, Directors, Stockholders and Empi(j)ee'l thereor purehose sell ond may ha\.e an mterest m the securities mentIOned herem This market letter IS mtended and presented merely as a general. mformnl on day to day market nev.s and not as a complete analYBiB Additional mformatlOn with rC'lpect to any securities referred to herem will be furnished upon request WN J01

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