Viewing Month: September 1964

Tabell’s Market Letter – September 04, 1964

Tabell’s Market Letter – September 04, 1964

Tabell's Market Letter - September 04, 1964
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Walston Inc &Co. Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND oveRSEAS TABELL'S MARKET LETTER September 4, 1964 It was over six months ago that the Dow-Jones Industrial Average reached a new historic landmarkand closedabo\'ie…&OO. This occurred on February 28th when the average closed at 800. 14. The industrrai-av-era—ge has not closed below 800 since that time, although it had a close calIon June 8th when the close was 800.31. The decline continued the next day to reach an intra-day low of 796.90, but the market rallied to close at 805.54 on June 9th. The advance over the past six months has been ratn.er labored as far as the industrial aver- age has been concerned, although there have been many worthwhile moves in individual issues. At the July 20th intra-day high of 855.19, the industrial average was only 6. 70/. above the 800 level. There have been several swings back and forth in the 800-855 range durin,g the past-six months, -however. The subsequentintnl-day high after the 800 level was reachea–on – May 7th at 836.06. This was followed by the decline to the intra-day low of 796.90 on June 9th. The next rally carried to a newall-time high at 855. 19 on July 20th. Up until now, this has been the high. The next decline retraced about 600/. of the previous advance to reach a low of 820.78 on August 5th. The rally from that point reached an intra-day high of 850.84 on Fr ida y. The important points, as far as the averages are concerned, are the high of July 20th at 855.19, and the low of August 5th at 820.78. Both of these levels were reached over a month ago and are thus of at least intermediate term significance. It is our opinion that the trend of volume will give us the clue as to the direction as well as the extent and probable duration of the next move. In the table below are figures for the total volume and upside and downside volume on the New York Stock Exchange on the dates of the highs and lows noted above. The figures are the past thirty-five trading days. The figures for upside and downside volume e d a by taking the per- centage of advances and declines for each day with three zeros in the figures below are eliminated. ' Cj c s minated. The last Dow-Jones Dow-Jones 3 -Day Date -High Low T I lum Up Volume June 9th July 20th 0\7. . \y 139; 061 126,996 64,421 70,113(a) August 5th 129,702 67,260 Sept. 4th 850. 113,324 55,889 a – Actual s olume high was reached on July 24th. b – Actual nside volume high was reached August 6th. 35-Day Down Volume 74,640 58,973 63,157(b) 57,435– Volume reached a high on a thirty-five day basis on May 7th when the industrial average reached 836.06, and has not been bettered since. Upside volume at the July high of 855.19 was well below the May 7th high at 836.06 and, with the average now close to the JLlly high, upside volume is well below both these figures. It is also interesting to note that the advance in price from both the July low and August low were brought about by a sharp drop in liquidating pressure rather than by an increase i'1 buying power. Actually, upside volume is now below the upside volume at the August low at almost thirty points below the present price. A constructive sign would be an increase in upside volume above the 70,113,000 level of July 20th at the 855.19 high. A new high in price would not have very much significance unless accompanied by a sharp volume increase. At presen-t levels,-the-upside voliirrHHs-well below the July figure. On the downside, it would be disconcerting if downside volume on a thirty-five day basis moved above the August total of 63,157,000. At the moment, present downside volume is fairly close to this figure. In the present highly selective market, this letter has recently added General Dynam' Shell Oil, Crowell Collier, American Can and Clevite Corporation to our recommended list. In order to reduce the number of issues under supervision, DuPont, De'lemours is being drop ped from the Quality & Long Term Growth List, although it may be held by patient investors. The stock was originally recommended on June 25,1962 and holders received a distribution of 36/100ths of a share of General Motors in early 1964. Dow-Jones Ind. 848.31 Dow-Jones Rails 211. 25 EDMUND W. TABELL WALSTON & CO. INC. nHlr\..et lctWl is not flnd under no circumstances IS to be construed as, an offer to ;(1\ or a SoliCItatiOn to buy ony referred to herem The informatIOn rlltllincd herem IS n(lt I!ulranlced us to accurnc) or rompletcncss and the furnl.,hml! thereof is not, and undCI no lS to be con!!trued tiS, a representa. t'lm \VI\1'1ton & C(. In(' All cxpressions of opinion nrc suhJect to change wlthuut notice \Volston & Co. Inc. and Officer!!!, Directors, Stockholders and J.,mJlio)'C'C'i thereof, ll!11 ani! may hale an mterest m the sceuritles mentHlned herem ThiS market letter 16 intended and presented merely as a mformnl commontary on day to day market ncws and not as a complete anaIY!!I!! Addillonal mformatlOn …. Ith respect to any SecUIIllCS referred to herem Will be flU nL'ihed upon request . \\-.. 30\

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Tabell’s Market Letter – September 11, 1964

Tabell’s Market Letter – September 11, 1964

Tabell's Market Letter - September 11, 1964
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Walston &CO. – – – – I n c . ;…;;……;…..;..; Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER September 11, 1964 The market, as measured by the Dow-Jones Industrials, reached a newall-time pea on Friday at an intra-day high of 870.64. This compares with the July 20th high of 855.19. It is interesting to note that the new high in the Dow-Jones average has not yet been confirm- ed by either the Standard & Poor's 425-stock industrial index, or the 500-stock composite index. Fridays close of 88.290n the S & P industrial index and 83. 45 on the S & P composite index, were still below the July high closings of 89.05 and 84.01. Also, the advance of the individual stocks in the Dow-Jones Industrial Average has been extremely selective. Of the thirty stocks that comprise the Industrial Average, only four have decisively reached new high 1963- territory on the present advance. They are Chrysler, duRont, Motors and United Aircraft. In addition, General Foods and Owens-Illinois Glass reached new highs by a fraction. The remaining twenty-four issues reached their highs in July or April, or earlier, and have not, as yet, bettered them. Our breadth index, however, has confirmed the advance in the Dow-Jones industrials by reaching new high territory by a modest amount. As we noted in last week's letter, the trend of volume will probably give us the clue as to the extent and probable duration of the advance. Volume has improved considerably over the past several days, but is still below the 35-day average volume at the former peaks at 855.19 in July and 836.06 in May. In orderfo the market to advance on a broad scale, rather than on the extremely selective basis we have witnessed in the past six months, there must be a continued increase in the volume of trading brought about by increased upside volume. The rise so far has been largely sparked by a sharp decrease in liquidating pressure. Thirty-five day downside volume has been reaching new low territory for the year for the past several weeks. For the nearer term the upswing has been Dow-Jones Industria Average has advanced over forty points on an and some consolidation is indicated. Several of our ba 1 'dlC twelve trading days, s have reached over- bought territory. V( Despite the sharp advance in the nsiderable number of issues selling at reasonable price levels and with g 'eld81 e table below are nineteen issue with various quality ratings. They modest p/E'ratios. Eighteen of-these e e 0 or,better and are selling at of our -recommended'list. The other – issue, Koppers Co. Inc. is no recommended list. u it r 's Elarnmionsgs pIE Dividend Yield American Can American Metal Pr American Radiator Atchison, Top. & SF Beaunit Corp. Copperweld Steel Denver, Rio Grande Eaton Mfg. Fruehauf Corp. Kansas City So. Ind. Koppers Co. Inc. Midland-Ross Mohasco Norfolk & Western Reynolds Tobacco Royal Dutch Scoville Mfg. Southern Railway Storer Broadcasting B B B B AB B BA A A B B B 4 1/8 21 7/8 337/8 32 561/2 213/8 46 3/4 341/4 45 3/4 47 1/2 401/2 143/8 133 1/8 45 3/4 46 37 64 3/4 50 2.47 2.10 1. 96 2.82 2.76 3.74 1.59 4.05 2.49 4.03 3.54 3.12 .92 9.58 3. 14 3.69 2.96 4. 78 3.24 18 10 11 12 12 15 13 11 14 11 13 13 16 14 15 12 13 13 15 2.00 1.00 1.00 1.60 1.20 2.00 1.00 2.00 1.50 2.00 2.00 1.80 .60 6.00 1.80 1. 74 1.75 2. 80 2.00 4.5 4.5 4. 5 4.8 3. 7 3.6 4.8 4.3 4.3 4.3 4.2 4.3 4.2 4.5 3.8 3.8 4.8 4. 3 4.0 While yields are somewhat lower than on the above issues, Clevite (457/8), Rayonier (36 7/8) and Swingline (37 7/8), on our recommended list, also appear attractive. Universal Match (143/4) is in the low-priced speculative section. The stock has been moving hlgher on lncreased volume. This is a speculative situation, but most vending machin companies appear to be forming strong potentia1 base patterns after sharp declines from the 1961 highs. Universal Match sold as high as 80 3/4 in 1961. Since 1962, the stock has held in the 20-11 area and has formed what appears to be a substantial potential base. The stock is recommended as a speculative buy. Dow-Jones Ind. 867.13 Dow-Jones Rails 214.73 EDMUND W. TABELL WALSTON & CO. INC. ThIS market letter I not. and under no t'!ircumstnnces IS to be construed 6S. an offer to sell or a sohcitatlon to buy any 8ccuntles referred to herein The Information contained herem 18 not guaranteed 8S to accuracy or completeness and the furnlshmg ther('Of IS not. and under no CIrcumstance'! is to be construed as, a. representa- tIOn by '\oVulston &. Co, Ine All expressIOns of opmion are subject to change Without nobce. Walston & Co, Inc. and Officers, Directors, Stoekholders and Jo;mployees thereof purchnse, scll and may have an mterest in the securities mentIOned herein. ThiS market letter IS intended and presented merely as a general. ITlformal on day to day market news and not 8& a complete analysis Additional mformatlOn with respect to any securities referred to herem will be furRlshed upon requJ!'St. \\ N JOt

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Tabell’s Market Letter – September 18, 1964

Tabell’s Market Letter – September 18, 1964

Tabell's Market Letter - September 18, 1964
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Walston &reo. —-Inc. –..;….;.. Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFIces COAST TO COAST AND OVERSEAS TABELL'S MARKET..LETTER-. ,. . .'. .. September 18, 1964 As we have pointed out in these letters, the action of individual stocks has, in recent markets, been far more important than the action of the averages. In recognition of this fact, we have made a number of changes in our recommended list which have been noted in market letters over the past few weeks. Up-to-date copies of this list are now available from your Walston & Co. Inc., Account Executive. Two stocks recently added to the list are reviewed below. In additin, a third, METROMEDIA, Inc., being added to the list this week, is also discussed. SHELL OIL COMPANY (49 1/2) appears to be one of the more attractive investment vehicles domestic ..;owned by–. group and constitutes that group's production, refining and marketing faclhty wlthm the continental United States. However, with a total of over 60 million shares outstanding, floating supply is still large. .. The characteristic that differentiates Shell from most other domestic integrated oils is 1ts in chemicals and natural gas. In the petroleum industry it is the largest domestic manufacturer and marketer of chemicals, including alcohol, glycerine, resins, plastics, synthetic rubber, styrenes, agricultural chemicals and sulphur. Extensive oil exploration is being carried on in the Louisiana offshore area, which now accounts for 250/0 of total crude output. Both earnings and cash flow set a new record in 1963 with 2. 97 per share being shown. Another new record is expected in 1964 with the com pany having earned 1. 58 for the first six months versus 1. 50. The 1. 50 dividend provides a fair yiKeOldP. PERS CO. INC. 49 has long been a major bui r 0 0 ens, but in recent years has become active in two fields which appear c al ise for the fut ure. The first of these is chemicals, most of them coa . roducts. These include naphthalene, resins, styrene and ich holds a great deal of promise is oxygen steel making and Kopper 1 n the st important domestic designer and-builder-of- n -.., casting process now getting diversified, but the great ajo' ;r,1; industry. Koppers' sales are widely heavy industry. The stock is, therefore; in a position to benefit fr ca' spending. 1963 earnings were 3.01 and should improve to around I 2.00 dividend provides a relatively generous yield. METROMED 18 is a new addition to our list. Although speculative,and erves attention. It has increased revenues from 5 million in 1956 to 60 million la ear, with an increase in per share earnings from to 2.13. The company is an owner and operator of television and radio stations and also is prominently identified with outdoor advertising on the west cqast. The company's ability to increase advertising revenue for the various media it operates speaks for itself. The company operates under FCC regulations which limit single ownership to seven television stations and seven radio stations. Under these regulations, a company which owns the maximum permissible number of stations can increase revenues only by trading up — selling smaller stations and buying larger ones. This the company has done successfully over recent years and now has television stations in New York, Los Angeles, Washington and Kansas City, plus rariio outlets in New York, Los Angeles, Philadelphia, Cleveland, Kansas City and Baltimore. Recently, a television station in California, sold. Thus, the company is now in a position to acquire a station servicing a larger market- ing area. Regulations would also permit the acquisition of an additional radio outlet. Most of the company's acquisitions over the years have involved borrowing and the company recently refinanced its long term debt. There is considerable potential dilution fro convertible issues and warrants, but it is not believed that this will take place all at once. The stock appears to be an attractive long range speculation. Dow-Jones Ind. 865.12 Dow-Jones Rails 215.30 ANTHONY W. TABELL WALSTON & CO. INC. mnrket letter is not. nnd under no circum!ltancel'l is to be construed as. an offer to sell or a solicitation to buy any securities referred to herein The Information C'Untmncd herem is not I!'tlllrnnUlt'd as to necuracy or c0!f1pletene98 and the furnlshln,c thereof Is not, and under no clrcumstanees 18 to be construed as, a representa- tion by Wnlston & Co.. Inc All expreoslOns of opinion are subject to chlln,cc Without notice Walston & Co Inc and Officers Directors Stockholders and Employees thereof, pUlchnse. 8ell and may have an intere9t In the securities mentioned herein. ThIS market 18 and all a general. mformal comm..ntary on day to day market news and not all a complete analysis Additional mformation With respect to any securities referred to herein will be iurn1shect upon request \\ N 301 …

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Tabell’s Market Letter – September 25, 1964

Tabell’s Market Letter – September 25, 1964

Tabell's Market Letter - September 25, 1964
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Walston &Co. I n.c. ..;;;;-….;….;;..; Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER.. September 25, 1964 To followers of the Dow-Jones Industrial Average the statement that the market ex- ceeded its July high for the first time this week must seem rather silly, a-s those who watch the Dow are well aware it exceeded its July intra-day peak on September 8th, and has been making repeated new highs ever since, reaching a high of 879. 26 on Friday. Followers of Standard & Poor's indices, however, have been seeing an entirely differ- ent picture of what the market is doing. The S&P 500-Stock index reached a new intra-day high for the first time on September 22nd, and reached a closing high for the first time on Friday. The 425-Stock Industrial index reached a new intra-day peak for the first time on can be cited to show astill picture. used New York Herald-Tribune 100-Stock index, the market has not yet made a new high. The July high for this average was 304.36, and as of Thursday its high was 301. 82. The Herald-Tribune index has, as a matter of fact, consistently acted worse than other market barometers. For example, most indices, after declining in early August, rallied in the mid- dle of the month and then moved to a low toward the month end. They then commenced the current move to new highs. In most indices, the late August low was considerably above the figure for the early part of the month, but the Herald-Tribune index posted a new bottom at that time. Comparative figures on five widely used indices are presented below. Dow-Jones Ind. Aver. July High 855.19 Early Aug. Low 820.78 MidAug. High 847.19 Late Aug. Low 0 September High 879.26 .. Stand. & Poor's 500-Stk. Stand. & Poor's 425 Ind. 84.33 89. 39 80. 80 85.41 8. 84.62 . 7 89.60 N. Y. Times 50-Stk. Aver. 507.49 N..Y.Herald-X.lcib. 100-Stk.-304.-36 482. '0W .'i99. 486. 80 522.30 – -.– .To September 24th. '.' …. The above compar' on . prove that there is anything wrong or right with a particular av r , ortuna tely, no such thing as a perfect stock market index. Any index an od computation has both its advantages and Averages will act diff en ly ending on the stocks included and the weights assigned to each. A good part of the ength of the Dow over the summer can be attributed to the fact that it includes a num of stocks which have been relatively strong. A good part of the weakness in the Herald-Tribune index is due to a relatively heavy weight assigned to Inter- national Business Machines which, recently, has been notably weak. Thus, if, as of July, Chrysler and DuPont had been removed from the Dow index, and IBM and Ford had been substituted, the average would even today be below its July peak rather than in new high territory by more than twenty points. The real lesson of this discussion is that the market has, over the summer, and indeed for most of 1964, really been trendless. The great majority of stocks in all probability are today, plus or minus a fev pOints, selling just about where they sold at the beginning of the summer. A notable few have scored worthwhile gains and others have shown relatively sev losses. Breadth indices show th.a.t.)here has been a slightly larger number of advances; but the preponderance of advances is relatively small. Equal divergence appears to be present in values available. Based on the past twelve months earnings, most averages appear to be selling at rather generous multiples, but there is, at the same time, no shortage of com- panies that are selling at price-earnings ratios much lower than that of the average and which appear to be in a position to post significant earnings gains over the years ahead. It is companies of this type which we have attempted to include in our recommended list, and it is in these issues that the investor should concentrate his holdings in order to achieve capital gains in an essentially sidewise market. Dow-Jones Ind. 874. 71 Dow-Jones Rails 218.03 ANTHONY W. TABELL WALSTON & CO. INC. Thl'l market Jettel b lIol nnd under no CITCUm'ltnm;es IS to be as, nn ofTer tn sell or n sulLdtatlOn to buy Il!lY seeuntJes T.dcrred to herem The infOlmlltion (ntUlne!! tu, hy herem is &. nCtoJ,,!1umarnnAtccnrl as to aeellracy eXllreSSl()n9 of or completeness nnd the opInion nr(' 'lubJect to chnllAe thereof Ithuut IS nut, and undel Walston &. no circumstance' 1.9 to be construed as, a rcprescnta Co. Inc., and Officers, Directors, Stockholders and t-ml'loyec-. therror, IHllchase, sell Inri may hu\'eln mt('rest In the r.ccuTibes mlntlOnerl.hereln ThiS maket lett.c-r IS Intended and presented merely as a general, Informal ('ommQntary on day to day murket news and not as a complete Additional InformatIOn With respect to any SeCUTItles referred to herein Will be furnlHhed upon rcquE!'lt. \\!\ 301

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