Viewing Month: November 1964

Tabell’s Market Letter – November 06, 1964

Tabell’s Market Letter – November 06, 1964

Tabell's Market Letter - November 06, 1964
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Walston &Co. ..;.,;…;;.;.;.;;,.;;;.,; Inc, Members New York Stock Exchange NEW YORk SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO COAST 10 COAST AND OYERSEAS TABELL'S MARKET LETTER….. …. no November 6, 1964 As expected, Johnson's landslide victory had already been discounted in the market pattern and, after a mild advance on Wednesday morning, the market resumed the selective price action that has been the predominating feature since mid-September. The rise from the July-August lows has failed to attract a renewed buying interest which is the needed re- quisite for a broad advance. The market appears tired and in need of corrective action. As noted before, however, no sizable potential distributional tops have been formed as yet and any decline from present levels would meet support in the 860-840 area. Our long term pattern remains the same. We believe the market is in a broad reac- cumulation area as.far as most stocks are concerned will reach much – higher levels in the later part of the 1960's. We do not feel, however, that such a broad ad- vance is going to occur immediately. Probably a continued period of selective price action is in the offing with the averages moving back and forth in a relatively wide trading area,and individual stocks at times moving in a contrary direction to the general rna rket. This actuallJ has been the pattern since 1962. While the Dow-Jones Industrial Average has reached new high territory this year at 886.28 as compared to the 1961 high of 741. 30, this is not true of the general run of stocks. We recently compiled a survey of the price action of 1,390 stocks published in one of the more popular chart services. Of these 1,390 stocks, it was interest- ing to note that 867 or 62.4 have never, to date, exceeded the highs reached in the period between 1955 and early 1962, or for a period extending back from over two years ago to over eight years ago. In fact, the action of the thirty stocks in the Dow-Jones Industrial Aver has also been extremely selective despite the new highs As of October 31st, only twelve of the thirty stocks had reached new high terri 0 reached in 1955 to 1961. Eighteen of the thirty, or 60, are highs reached from two to over eight years ago, despite the new high in t &aVera elf. Thus, despite the advance in the t great majority of stocks are selling within the range in which for past several years. From a tech- nical viewpoint, this indicatesthat a- – st – s-a-Jj)e-ar'to be in broad accumulati,on areas that could result in filling is indicated before the date. However, more backing and a broad scale. During this period, the action of k u be of more importance than the action of the averages. In reviewing th t ks r recommended list, we find a number that are continuing to indicate favorable ac io nd a relatively few that appear to have reached close to upside potentials or are losi omentum. Our recommended list is not designed for long term in- vestment, but rather fo' capital appreciation over a period of at least six months to several years. We drop issues or add new ones as the occasion warrants, We are dropping three issues from our list this week. One is in the quality and long term growth area. It is Standard Oil of New Jersey (891/2) which entered our list in June, 1962. This stock is un- doubtedly an excellent long term investment holding, but is probably about high enough for the present. We have several other oils on our list which we are continuing t hold. We are taking profits on Pennsylvania R. R. (41 3/4) which entered our list in August, 1963. The stock is, from a technical viewpoint, quite close to its 45 upside potential. We are also drop ping Consolidation Coal (51) which was recommended in mid-1962. Relative strength action has recently been below average. New recommendations will be suggested shortly. Among issues now in our recommended list; the following have been showing above average action and could be added to on periods of market decline. In the price appreciation sector of our list are included Beaunit Mills (35 3/4), Crowell Collier (23 1/4), Korvette (42), Metromedia (41 5/8), Riegel Paper (423/4), Shell Oil (58 114), J. P. Stevens (47 5/8), and Vornado (34 1/2). In the low-priced speculative list we would include Hewlett -Packard (203/8), Mohasco (145/8), Universal Match (14 1/2) and Vulcan Materials (17 314). The complete new recommended list will be issued shortly. Dow-Jones Ind. 876.87 Dow-Jones Rails 219.10 EDMUND W. TABELL WALSTON & CO. INC. ThiS market lettA!r IS not. and under no circumstnnces is to be aI!, nn ofl'or to Iell or a solicitatIOn to buy any securities referred to herein. The information cunt&tned herem is not guaranteed as to accuracy or completenetl'\ and the fUrfllshlnp thereof IS not, and under no eueumstances 1;'1 to be construed as, a repre!lenta- tlOn h)- ,'alston &; Co. Inc All expressions of QP!n1on are l!ubJe-ct to change Without notice. Walston & Co., Inc. and Officers. Directors. Stockholders and Fmployees thereof purchase sell and may have an mterest in the SeCllrltles mentIOned herein. ThiS rnorket letter IS intended and pretlellted merely 116 a general, on fay to dny mark.et news and. not QS D. complete analysts. Additional mformatlOn With to any securitIes referred to herem (ul'nlshed upon request

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Tabell’s Market Letter – November 13, 1964

Tabell’s Market Letter – November 13, 1964

Tabell's Market Letter - November 13, 1964
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I'' . rr 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 November 13,1964 We have passed the anniversary of one significant stock ma rket date, and are about to pass the anniversary of another. At the end of last month occurred the second anniversar of the Cuban crisis low of 549. 65 in the Dow-Jones Industrial Average, from which point the market advanced to 767.24 in a little over a year. The end of this month will mark the first of the Joh.nsop 0p.o,7;W which cqrjstituted th\; ;;ec\nd.)eg of a a ma- ture phase, and a characteristic of such phases is the achievement of market leadership by diverse stocks which may have been laggard in the earlier periods. Another characteristic of bull .. . In the light of these characteristics it will be the policy of this letter to up-date our recommended list, removing issues as they reach upside objectives and adding those stocks which appear to be in a position to improve their market performance. Two stocks in this category are McGraw Edison and Signode Corporation. From a fundamental point of view it would be hard to imagine two more dissimilar companies. McGraw Edison is a broadly diversified operation operating through almost forty largely autonomous divisions. The company manufactures consumer products, a line of some 350 home appliances — industrial products, including commercial laundry equip- ment, electric melting furnaces, electronic dialers for the Bell system, and numerous other industrial products — and electric utility equipment used in both power production and dis tributio n. Signode Corporation, by contrast, has throughout devoted its en- tire business effort to achieving excellence in one relativ 1 n pr duct line – steel strapping used by various industries in binding necessary to use such strapping. 1\ V;\ ip and the machinery Yet despite the dissimilarities, the h a good deal in common. Both have excellent technical patterns with tive ell their current 8- th-COmparfle-S-setm111ke1ytoachreve new record earnings peaks well substantially better 1964 results in 1965; and both appear in a pos' '0 their growth over the long term. McGraw's ti ro combination of circumstances,partially fortuitous and partially calc t ove, the company is widely diversified, but continued emphasis on consu odu as resulted in a buildup in this area which lends both growth potential and s b' to the overall business. The utility equipment business has, until recently, been rea in which vicious price competition has prevailed. The situation is now reversed and prices are improving sharply. Rising steel capital expenditures will help the electric furnace operation, and the American Laundry Machinery division has been the scene of extensive internal reorganization. Under the impetus of all this, third quarter earnings were 92 cents a share, the best quarter in five years. Nine months results were 2.44 vs. 1.80, and full year earnings are expected to approach 3. 20 vs. 2.40. Signode also is headed for a record high with sales reaching new peaks and earnings estimated at about 1. 80 per share compared with 1. 50. What appears to be significant here is tha t the extensive post-war capital program which the company has undertaken ap- pears to be bearing fruit. In every year since 1954 capital expenditures have exceeded de- preciation' despite the fact that the latter bElel) It in that has caused an upward trend in cash flow over the past decade, despite the fact that earnings have fluctuated erratically. This capital program has undoubtedly allowed the com pany to maintain leadership in its chosen field of operations and it is believed that with a highly modern fixed plant, the company can continue to maintain that leadership. Aggressive selling and research have always been the company's strong pOints and these augur well for continued growth. Both McGraw Edison (50 5/8) and Signode Corporation (26 3/4) are being added to our recommended list for capital appreciation. Dow-Jones Ind. 874.11 Dow-Jones Rails 216.82 ANTHONY W. TABELL WALSTON & CO. INC. Thl mill J..cl letter IS not nnd under no CIrcumstances 15 to be construed AS, An nITer to sell or R soilCltatlOn to buy any SeC\lrltirs referred to herem The lnformatlon rntained herein is nut 1unrantc-ed as to a('curncy or ant the furnlshmg thereof IS not, nnd undel no circumstances IS to be construed as a reprCentn- lIOn hy \'/ll..ton & Cu, In(' All or opmlOn aI(' lIubJect to Without notice ,'alston & Co, Inc, and Officers, Dneetors, and- .. ITIll)UYe\.';'I thereof, Illilchn'le, sell and mny have an mtercst In the seCUrltw mentioned herem ThiS market letter IS mtended and presented merely as a general, 1Il..rmal commontary on dllY to du) market neWS and not as a complete nnnl)'sls Additional mformatJon With re..pect to nny SeCUrities referred to herem …. 111 be (UI mlhed llllHn re-quest \\-. 301

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Tabell’s Market Letter – November 20, 1964

Tabell’s Market Letter – November 20, 1964

Tabell's Market Letter - November 20, 1964
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Walston &Co. Members New YOk Stock Exc/w,nge NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS lABEll'S MARKET lEnER November 20, 1964 Since the beginning of the year the ma rket, as measured by the Dow-Jones Industrial Average, has moved slowly higher. The percentage advance so far has been 17, a relatively modest rise as compared to past bull markets. The upward movement has consisted of a series of advances averaging 3 or 4 followed by a narrow trading shelf and an ultimate up side breakout into new high territory. The latest sidewise movement was relatively lengthy and lasted from mid-September until the upside breakout on Monday. At Wednesday's intra- day high of 897.00, the average had advanced some 23 points from last week's closing level of 874.11. At Friday's close of 890. 72, the industrials showed a 16.61 point gain for the week. The advance was featured by duPont, Sears Roebuck and Eastman.Kodak wl!ich,becauseof their higllprice,- exert bJ-A;erage, by heavy volurri'e in a rather weird conglomeration of low-priced issues selling under 5 a share. From a technical viewpoint, the two-month base around the 870 level suggests a rise to 898 followed by another consolidating period before the next move of importance. Some- where along the line, one of these consolidating periods in the averages will turn out to be the start of a distributional top of intermediate term significance. There is, however, no in- dication of such a development at the moment. Since the Kennedy assassina tion low, each new high in the average has been confirmed by a new high in our breadth index and this action was repeated during the past week. Furthermore, the industrial average has held above its 200-day moving price average on every decline since early 1963, thus indicating no loss of momentum. The average price of the Dow-Jones Industrial Average for the past 200 trading days now is at 835. The only technical indicator that has afflning signal of a loss of momentum is the 25-week moving average of volume whic ea Ri h in May and has been moving downward since that time. In the meantime, regardless of the action of era e ividual issues have been going their own merry way, both up and 1 st of a general advance, some stocks that have lagged behind the market oft k a accumulation patterns on the up- side.for a '. nstoourrecommended-list we be- lieve fall into this category. W issue of this type to our recommended list for capital appreciation. It is LYKES B PI. (23 3/4)While the shipping industry has been suf- fering from world- 'd this cOIlPany shows indications of turning the corne as far as earnings i n concerned.The company has no funded debt. There are 3.8 million shares out an with over 50 held by directors of the company and the Lykes family. Financial posit 1S very strong. The stock has a book value of 57 a share of whic over 50 is relatively iquid. This has enabled the company to undertake an extensive re- placement and modernization program. Over 119 million has been expended over the past three years in highly mechanized vessels tha t should result in increased future profitability. This replacement program will continue into the 1966-1969 period. Lykes Bros. is one of the largest domestic subsidized shipping lines. It operates 52 vessels carrying freight, mail and passengers in regular service between U. S. ports on the Gulf of Mexico to Europe, the Far East and to Africa. The prospective long-range expansion of U. S. foreign trade indicates an improving outlook for shipping companies and Lykes Bros. should participate in the risin earnings trend in the industry. Furthermore, with its strong financial condition, Lykes is in a position to diversify into other fields. It already has an interest in a newly organized surance company in New Orlearis through its Lykes Enterprises subsidiary. Lykes hasre- ceived approval from the Federal Maritime Commission to increase future investments in Lykes Enterprises from 2 million to 10 million, so further diversification is probable. The stock is selling at less than ten times the estima ted earnings of 2. 50 for 1964. The present modest 80 annual dividend could easily be increased to 1. 00, or a stock divi- dend program could be started. The stock was listed on the New York Stock Exchange in 1958 and reached a high of 347/8 in 1959 and a low of 14 in 1962. It has recently moved above its 1963 high of 23 and, from a technical viewpoint,the.,br.oad.potential base indicates considerably higher levels over the longer term. Dow-Jones Ind. 890.72 Dow-Jones Rails 218. 47 EDMUND W. T ABELL WALSTON & CO. INC. ! mnrk't Jette! lIt. and under no t l1e contruca n'l, an offer to !lell 01 U sohcltatlOn to buy any securities referred to herem. The Jnformntlon ,famed hcrpm is not gUllrantccd to IICCliracy or cOfllllleleness unrl the ell! lllereof III nOl nnd under 110 clrcumstBntes 15 to be construed ns. a rel'rc'I('nlu- n by \\'Il1'3ton & Co. 11\(' All of opinIOn lire suhJcct to chanve \\Ithollt nntJce \Vnlston &. Co. Int. nnd Officers. Directors, llUd I thereof. 1111Ich.l'1'. sell ,Inri lIlay have (In IIIt,-,rcilt m tht (ollll.1I '''lIHn''lltlllY on day to rillY nlnrkct And not as a ,fllhf'flltllOIl lequcst .. mentlOlIcd hel'IIl. lhls market 1; Intendcd and pre-.cntcd mere!' as n generlll, unah'III' AddItIon II mformll11on 'Jth t('SjJcct to IIny seem Itles reitrlcd to herem '111 h.. \\ '\ 10' 1—

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Tabell’s Market Letter – November 20, 1964

Tabell’s Market Letter – November 20, 1964

Tabell's Market Letter - November 20, 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 EDMUND W. TABEll'S RECOMMENDED LIST QUALITY —&-r-ONG TERM GROWTH Amerada American Can General Elec. Gulf Oil Close Qual11/20/64 88 1/4 A 43 3/8 B 91 A 61 7/8 A Comment Hold Buy Buy on Dips Hold Close Qual- 11 /20/ 64 Norfolk-& W. 143 1/4 A Reynolds Tab. 41 3/4 A Royal Dutch 46 5/8 A Comment Buy on Dips Buy Hold PRICE APPRECIATION Close Qual- 11/20/64 !!L Atchison, Top. 33 5/8 A- Beaunit Corp. 38 5/8 B Clark Equip. 51 3/4 A- Clevite 43 B Cluett, Peabody 56 7/8 B Copperweld Steel 56 1/4 B Crowell Collier 24 B Denver, Rio G 22 B Disney, Wal t 48 1/4 B Eaton Mfg 43 1/4 B Electric Star. Bat. 47 5/8 A- EI Paso Nat! Gas 23 1/4 B First Charter Fin. 27 1/2 Fruehauf Trail. 32 B General Dynamics 36 3/8 Illinois Central 54 3/8 B Intern'l Min. Chem.80 1/8 A- Kansas City So. 42 5/8 A- Koppers Co 56 B Korvette, E. J. 42 1/8 B Lykes Bros. S8 23 3/4 B Comment Buy on Dips Buy on Dips Buy on Dips Buy on Dips Buy on Dips Buy on Dips Buy Buy Buy on Dips Buy on Dips Buy Buy Buy Buy Buy Buy on Dips Hold for 90-100 Buy on Dips Buy Buy Buy Close Qual- 11/20/64 ity McDermott 393/4 B McGraw Ed, 52 1/2 A- Metromedia 42 5/8 B Midland Ross 38 1/2 B Newmont Min.46 3/4 A- No.Amer. Car 29 3/8 A Rayonier 41 3/4 B Reynolds Met. 32 7/8 B Riegel Paper 45 B Schlumberger 73 3/4 A Scoville Mfg. 36 3/4 B Shell Oil 60 3/8 A Signode Corp. 27 7/8 A- Southern Rwy 59 1/2 B Stevens, JP 45 1/4 B Storer Broad. 49 1/4 B Sundstrand 22 3/8 B Swingline A 40 B United Fruit 18 3/8 B U.S Plywood 443/8 A- Varnado 34 3/4 Comment Buy Buy Buy Hold Hold Buy Hold Buy on Dips Buy on Dips Buy Buy on Dips Buy Buy on Dips Buy on Dips Buy on Dips Buy Buy Buy Hold for 50 Buy '- I LOW-PRICED Close Qual- 11/20/64 Comment Amer. Metal Prod 20 1/2 B Hold Amer. Radiator 22 3/4 B Hold Audio Devices 7 7/8 B- Hold Braniff Airways 29 1/8 B Hold for 35 Campbell Chib. 4 1/8 Buy as Spec. Foote Mineral 17 3/4 B Buy Great West. Fin. 12 3/4 Buy Hewlett Packard 20 1/8 B Buy Intern'l Packers 11 3/4 B Hold Mesabi Trus t 14 1/2 Hold for Inc. Microwave 10 1/2 B Hold SPECULATIVE Close Qual 11/20/64 Mohasco 14 7/8 B National Can 17 1/2 B Pacific Pete 11 1/2 B- Raytheon 23 3/4 Reeves Bros. 19 5/8 B Seaboard WrrB A. 6 5/8 C Sperry Rand 14 3/8 B Univ. Match 14 1/2 B Varian Assoc. 12 3/4 B Vulcan Mat. 17 1/4 B Comment Buy Hold Buy Buy Hold Hold Buy on Dips Buy Hold Buy November 20, 1964 This Uulletin 1& not. and luluer no eLi cumitnnces IS to be construed as. nn offcl to sell 01 n to lJuy any seCUrities re!crled to herem. The Information con- tamed herem 15 not llutlTantecd as to accuraey or completeness and the furnlllhmJ. thereof 15 not, and under no Circumstances 16 to be construed 8S, a repruentatlOn by Walston &; Co, Inc. All expressIOns of opinion are subject to change without notice. ,,'lIlston & Co. Inc. and Officers, Oll'ecton, Stokholdcns and Employees thereor. purchase, sell and mny have all mterest In the SecUfltles mentioned herem ThiS Bulletin IS mtended and pl1!sented merely as a general, tnlormal commen tary and not 85 a complete analYSIS AdditIOnal mformatlon with rcspect to any sc('untlc referred to herein Will be furnished upon request. WN-916

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Tabell’s Market Letter – November 27, 1964

Tabell’s Market Letter – November 27, 1964

Tabell's Market Letter - November 27, 1964
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Walston &Co. -…;.;……;,…;;Ic. Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO TABELL'S MARKET LETTER …OFFICES COA.ST TO COAST AND OVERSEAS November 27,1964 MOHASCO INDUSTRIES, INC. Current Price Current Dividend 14 .60 If the average investor were asked to name Amer ica's growth industries, the carpet industry would be Current Yield 4. 30/0 well down around the bottom of the list. The reason Long Term Debt Pfd. Stk (100 par) Common Stock 15,250,000 64,413 shs. 3,774,028 shs. for this lies in the investor's orientation. When he thinks of growth he is liable to mean one thing — growth in earnings. This is an area where most carpet manufacturers have been notoriously deficient. Sales-1964-E 145, 000,000 . Yej;, 'paradoxicalJ,y,.on.the .record, the.carpetindus. Sales-196-3 . 107,780,000– try is-one' of the fastest growing in the country. For Earn. Per. Sh. 1964-E 1. 25 example, in 1963, 226 million square yards of car- Earn. Per Sh. 1963 Mkt. Range 1964-61 0.72 15 1/4-7 5/8 peting were shipped vs. 79.7 million in 1953, with. each intervening year showing an increase. Total value of carpet manufactured has more than doubled over the past decade. The average household now purchases 4.09 yards of carpet per year vs. 1. 72 yards ten years ago. And the industry is just on the verge of exploiting a huge commercial market by proving that, over the long run, carpet is the cheapest of all possible floor coverings even in such applications as schools., hospitals and kitchens. Mohasco Industries, Inc. is the largest factor in this burgeoning industry and yet, as noted above, except for a couple of good years, the Jtren relatively static. Any analysis of the company, therefore, hinges on finding t an t 0 questions. (1) Wh have company earnings failed to reflect industry groa ) is t any indication that they may more closely parallel such growth in the fu To answer the first question it is to at' ustry background. Carpeting is, after all, an old product. At the end of Wo r II st manufacturing facilities were – and Axminster weaves. Since t i of major shifts have taken place. First of all, the center of the in u the south, to modern, one-story plants. Secondly, wool is no longer it erial. It constitutes only 470/0 of current fiber consump tion vs. 630/0 in 1959. ,0 e other hand, has better than tripled its market share in the past five years, an th rylic fibers have been growing strongly. Even more startling has been the move awa om the traditional weaves which accounted for virtually 1000/0 of production at the end of the war. In 1963, the modern tufted carpet process accounted for 780/0 of all production, with knitted carpet, another relatively new product, comprising much of the remainder. Herein lies the explanation of Mohasco's recent rather spotty earnings record. Formed by a merger in 1956, it has, slowly, to be sure, gradually moved most of its operations south- ward. The newer facilities have quite naturally emphasized the production of tufted carpet, which now accounts for about 500/0 of the company's sales, and knitted carpet, of which Mohasc is the largest producer. It is also gradually lessening its dependence on wool and consequent exposure to flU,ctuations in price. Yet, this operation has taken time and has drastically penal- ized the company's ability to par.ticipate in.industry..wide.growth. It appears, however, that the period of change-over is now largely past. Capital expen- ditures for 1964 will be considerably less than depreciation. Debt has been sharply reduced and the company is now in a position to invest surplus cash, and this it did when it acquired Futorian Manufacturing Company for cash late last year. The acquisition added a major line of upholstered furniture to the product mix and broadened the scope of the company's opera- tions in the home decorating field. Under this stimulus earnings are expected to increase sharply to around 1. 25 this year vs. 72 in 1963. The recently raised dividend could again be increased and another goo earnings gain is expected for 1965. From a technical point of view, considerably higher levels re indicated over the longer term and the stock is again recommended for purchase in speculative accounts. ANTHONY W. TABELL Dow-Jones Ind. 882. 12 WALSTON & CO. INC. ow-Jones Rails 215.24 This market letter is not, And under circumstances IS to be construed 8S, an offer to Bell or a solicitation to buy any securities -referred to herem. The information contained herem Is not guaranteed as to accuracy or completeness and the furnishmg thereof is not, and under no circumstances is to be eonstrued as, a represenu hon by Wnlston & Co, Inc. All expressions of opmion are subject to change Without notloo. WAleton & Co., Inc., and Officers, Directors, Stockholders and thereof, purchase, sell and mny have nn interest in the securities mentIOned berein. ThJ8 market letter Ie Intended and presented merely 8& a general, Informal comm.mtary 011 day to day market news and not 88 a complete analysis. Additional mformatlOn with respect to any 8ecurlties referred to herein will be furnulhed upon request. WN 301

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