Tabell’s Market Letter – September 11, 1964

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