Viewing Year: 1966

Tabell’s Market Letter – January 05, 1966

Tabell’s Market Letter – January 05, 1966

Tabell's Market Letter - January 05, 1966 page 1
Tabell's Market Letter - January 05, 1966 page 2
Tabell's Market Letter - January 05, 1966 page 3
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'Valston &- Co. / / INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OFFICES COAST TO COAST .A.NO OVERSEAS TABELL'S RECOMMENDED LIST January 5, 1966 . TI1i!redition' bf ou'i' Recommended List tallies the price performance of all recommended stocks over the past year. As usual, the list is divided into three categories Quality and Long Term Growth, Price Appreciation, and Speculative Price Appreciation. Included a t the bottom of the tabulation in each category are all stocks on the list on December 31, 1964 which were removed during the year 1965. Thus, the list below covers only stocks on our recommended list a year ago and all stocks recommended during the year. The first column shows the price as of December 31,1964, or on the date the stock was first recommended, if later. The second column shows the price on December 31,1965, or on the date removed if the stock is not now on the list. The third column shows the percentage change, and the fourth column shows the percentage change in the Dow-Jones Industrial Average during the same time period. The tabulation speaks for itself. In the Quality and Long Term Growth section the average appreciation is 6 vs. 9 for the Dow. In the Price Appreciation section the average appreciation is 25 vs. 9 for the Dow, and in the Speculative Price Appreciation section the average appreciation is 49 vs. 9 for the Dow. For the entire list taken as a whole the average appreciation is 29 vs. 9 for the Dow. These summaries are, of course, not meant to imply that such results could have been obtained by purchase of issues in the recommended list, or that similar results will be obtained by purchase in the future. Commissions are, of course, not included. QUALITY & LONG TERM GROWTH Price 12/31/64 or date Recom. Price 12/31/65 or date Removed Alum. Co. Amer. 71 7/8 765/8 American Can 43 55 5/8 Amer. Tel & T. 9/7 67 , Chesa. & Ohio 9/7 73 3/8 ;. Guff Oil 58 1/2 60 3/4 77 7/8 58 Inter'l Paper 6/29 31 30 3/4 Nat'l Cash R. 5/21 88 3/8 77 1/4 Radio Corp. 7/6 34 1/8 47 1/4 Reynolds Tob. 38 7/8 44 Royal Dutch 45 3/8 42 1/2 General Elec. 93 1/4 120 1/4 Norfolk & West. 132 1/8 127 AVERAGE Change 7 29 – 10 6 -1 -1 – 13 38 13 -6 29 -4 6 Change DJIA same Time Period 5 11 — 7 7 11 15 5 11 11 11 7 5 9 Current Comment Buy for Obj. 79 – Support 50 Hold. Support 58 Buy for 102-150 Buy for 63-92 Buy on dips. Obj. 72 Buy for 144-188 Hold JBuy-Dips. 52 wouldind 112 Buy for 82 Removed from list 10/11' Removed from list 9/27 PRICE APPRECIATION Price 12/31/64 or date Recom. Amer. Hosp. S. 6/29 25 Amer. Potash 6/29 39 Atch. Top.S.F. 33 1/8 Beaunit Corp. 37 Cenco Instrum. 1/29 29 3/4 Clevite Corp. 40 7/8 Cluett Peabody 60 3/4 Copperweld S 26 3/8 Crowell- Collie r 25 1/8 Denver R. G. 21 3/8 Disney, Walt 45 1/2 Price 12/31/65 or date Removed 39 3/4 43 1/2 33 1/4 45 3/8 37 3/8 51 3/4 78 7/8 31 3/4 43 20 3/4 59 1/4 Change 59 12 – 23 26 27 30 20 71 -3 30 0/0 Change DJIA same Time Period 15 . 15 11 11 7 11 11 11 11 11 11 Current Comment Hold. Buy-Dips. Obj. 60 Buy for Income Hold for 60 Hold Buy for 63-100 Hold Hold for 52 Hold for 64 Hold for Income Buy for lHl This Bulletin 11 pt.luhsherl for \our l'onm …n('c lind mforml.tlon Rnd I not un to ….1 n 51111.'lt.ltlOn to I,u\ IIn\ ,,h……as obtfl.lned Clom …. 1.' to I.. 1.,fllll,le, hut 'e do not It! nCUrlC'\ \\'R(sfon K Co In….in ..1 lhL' 'InrUllIl.ItlnrJ or.. ,hl lon,, .'mpl.,\t't 111,1\ hnvc mterelSt In or Jluld'l,lH IIUt! ,ell the ….(,11 …1 to ..herein ,I Walston &Co. Inc INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Stock Exchange and Other Principal and Commodity Exchanges OFfICES COAST TO'CQAST OVERSEAS TABELL'S RECOMMENDED LIST r PRICE APPRECIATION (Continued) Price 12/31/64 or date Recom. Eato'n Mfg. 43 1/4 El Paso Nail Gas 22 5/8 First Chart. Fin. 24 1/8 Gen'l Dynamics 35 Illinois Central 51 1/2 Inter. Motor F 6/29 28 Kansas City S. Koppers Co 44 1/4 55 Korvette 40 McDermott, J.R. 37 1/2 McGraw Edison 25 1/2 Metro-Gold. M 3/1 41 Perkin- Elme r 6/29 48 Revlon 5/3 45 1/8 Reynolds Metals 34 7/8 Riegel Paper 21 3/8 Schlumberger 71 Scovill Mfg. 36 7/8 Shell Oil Co 59 1/2 Signode Corp. 27 1/4 Southern Rwy ,57 3/8 Sundstrand Corp. 20 Swingline, Inc. 37 1/2 United Fruit 17 5/8 Wallace & Tier. 8/2 32 Warner Br.Co. 4/5 33 3/4 Clark Equip. Elec. Storage B. Fruehauf Corp. Inter. Min. Chern. Litton Ind. 2/19 Lykes Bros. Metromedia, Inc. Midland-Ross Newmont Mining North Amer. Car Rayonier, Inc. Stevens, J. P. Storer Broad. U. S. Plywood Vornado, Inc. AVERAGE 50 46 5/8 30 1/4 38 86 23 7/8 40 1/4 36 3/4 45 29 1/2 40 5/8 43 5/8 49 43 1/4 30 1/8 Price 12/31/65 or date Removed 60 1/2 19 3/4 22 5/8 56 3/4 69 1/2 35 3/4 43 7/8 61 1/8 26 118 54 1/2 39 46 3/4 79 3/4 43 1/4 49 3/8 22 1/8 70 63 1/4 64 3/8 33 57 7/8 36 1 4 60 3/4 32 1/4 42 1/2 40 1/4 45 1/4 48 3/4 32 3/8 60 118 7/8 20 3/8 35 3/8 44 58 7/8 27 1/4 41 7/8 58 1/2 65 3/4 44 54 114 Change 40 – 13 6 62 35 28 1 11 – 35 45 53 14 66 -4 42 4 1 72 8 21 1 81 62 83 33 19 -9 5 7 58 38 – 15 – 12 20 31 -8 3 34 34 1 80 25 '70 Change DJIA same Time Period 11 11 11 11- – – 11 15 1 11 11 11 11 8 15 5 11 11 11 11' 11 11 11 11 11 11 10 9 2 5 7 4 6 2 2 2 6 6 6 1 3 7 9 Current Comment Hold for 78 Hold for Income Hold Buy-Dips. Obj.88 Buy-Dips. Obj. 112 Hold for 45 Buy for Inc. & Apprec. Buy for 112 Hold Buy for 102 Hold Buy for 70 Hold for 100 Buy. 50 indicates 1rot Buy for 94 Hold for 34 Buy for 98-136 Hold Buy for 120 Buy for 50 Buy ,for ,108 Buy-Dips. Obj. 70 Hold for 82 Buy-Dips. Obj.42 Buy -Dips. Obj. 63 Hold for 49 Removed from list 8/.H Removed from list 9/8 Removed from list 10/11 Removed from list 9/8 Removed from list 10/n Removed from list 8/30 Removed from list 8/30 Removed from list 3/29 Removed from list lO/n Removed from list 8/30 Removed from list 5/3 Removed from list lO/n Removed from list 8/16 Removed from list 1/29 Removed from list 5/10 ThiS Willi hf\ye nu i'i rmbll;hc.1 f.11 onr tOIlH.'r1I1'rHI' Hut InfOlIn.lll( n Imd ' not tn ofT(r to 'lei! or 1\ SOhClt,ltlJn to I,u\ ,tlL\ '(I'UI LtlC'S The mform.ttlon from nUI(,' L h.II!\' tIl h, 1111,lhl., hut Y. In .,t mt .1(',urIUI allol1 – Co. n(' .\Il' II! ,,1111 . ollllo 01 .. m,IY OJ ImJ .. ,lnd .,11 IfI' ,,!,,'Utltl'1l.fJ.d to h'I'11I WH-916 ,fS. r;;- Walston &- Co. Inc INVESTMENT 8ANKERS MUTIJAl FUNDS MUNICIPAL 80NDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS TABELL'S RECOMMENDED LIST SPECULATIVE PRICE APPRECIATION Price 12/31/64 or date Recom. Ame-r. Bosch 4/5 18 7/8 Audio Devices – 171/8 Camp. Chib. 3 13/16 Foote Mineral 16 3/4 Great West. Fin. 11 1/2 Hewlett-Packard 22 5/8 Ling-Temco 3/22 24 1/2 Mesabi Trust 14 7/8 Microwave Assoc. 9 5/8 Mohasco 14 1/8 National Can 17 Pacific Pete 10 3/4 Seaboard W. Air 6 Universal Match 14 3/8 Varian Assoc. 13 Vulcan Mate. 17 3/8 Price 12/31/65 or date Removed 28 1/8 22 5/8 6 5/8 23 11 3/8 38 7/8 48 1/4 14 5/8 21 1/2 25 1/2 26 1/2 10 5/8 14 20 5/8 26 5/8 21 3/8 Change 49 32 73 37 1 72 97 -2 123 81 56 1 133 43 105 23 Change DJIA same Time Period Current Comment 9 — Buy-Dips. Obj. 50 – Buy for 30-40 11 11 11 11 8 11 11 11 11 11 11 11 11 11 Buy-Dips – Obj. 10 Hold for 29 Hold Buy-Dips. Obj.59 Hold Buy for Income Buy for 40-52 Hold for 29 Buy-Dips. Obj. 50 Hold for Long Term Hold for 20 Buy for 28-57 Hold Hold for 28 Amer.Metal Pro Amer.Rad. S. S. Braniff Air. Intern'l Packers Raytheon Co Reeves Bros. Spartans Ind. 1/29 Sperry Rand AVERAGE 19 1/8 25 20 3i8 20.7 /8 27 3/4 10 7/8 21 1/2 22 1/2 35 10 1/2 37 26 19 1/8 13 7/8 44 12 31 – 2 26 3 72 16 130 – 14 49 2 — — — 3 7 7 3 5 6 9 Removed from list 3/29 list 3/29- Removed from list 3/1 Removed from list 10/11 Removed from list 10/11 Removed from list 3/1 Removed from list 12/6 Removed from list 5/3 Average All Stocks \29 9 This Bulletm JH puhh&lwd 101 your co ,v,'llI.n,',' .lnt! 1l1f'llllloltWll .1111 not .m OfT('1 to or.l o.,ohrlt.ltion to bu) any Willi obtmned from hnve nn intercst m OJ we 1,h1n,t,!1.'…1.n0 j,( lell,llll,'. 1,ut WI' do til' .'Utltl'i fllul not j.!u.\.lntl.'l' to herein .It,'UI.lty, Wllston – Cn. Inl .Hld dlsl.ulI'I..'l.,Thc lnfOlm.ltion OIfiCel'1, (l1('('tors 01 t'mplo)ec! rna) WN-916

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Tabell’s Market Letter – January 07, 1966

Tabell’s Market Letter – January 07, 1966

Tabell's Market Letter - January 07, 1966
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Walston &- Co. —-Inc —-INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS January 7, 1966 The Dow-Jones Industrial Average rolled ahead to a newall-time peak last week, reach ing an intra-day high of 991. 59 on Friday. Wednesday's session was particularly impressive with a rise of over twelve points being recorded. There was, actually, little reason not to anticipate such a move in the first week of the new year. As last week's letter pointed out, the combination of year-end selling and January reinvestment demand has caused such a rally in everyone of the years that the Dow-Jones Industrial Average has been available for inspection. This week's phenomenon, therefore, was simply the sixty-seventh annual recurrence of a familiar seasonal spectacle. The rally, however, had a different flavor than the others in the series of upswings which had brought the-market to tliis 'week'speaIC-fro-m theJ'ii'ne low'of 832 Perhaps the — – following table best tells the story June Low DJIA 832.74 Delta Airlines 37 1/4 Boeing 63 1/4 Polaroid 51 1/8 Magnavox 355/8 Texas Instrum. 981/4 Parke Davis 27 3/8 U. S. Steel 46 Bethlehem Steel 341/2 Alum. Co. Amer. 69 1/8 Swift & Co. 443/8 Berkey Photo 155/8 Chromalloy 12 3/4 Kaiser Ind. 67/8 .. Nov. High 969.98 697/8 1401/2 119 84 1847/8 31 7/8 525/8 40 743/4 517/8 31 1/8 29 3/8 /0 Change 16 88 122 133 136 88 15 14 16 8 /(n 1/6/66 Close 985.46 67 1343/4 113 1/4 78 1/2 166 1/2 34 55 1/4 0 99 I.J . 33 111/8 ;! /0 Change 2 -4 -4 -5 -7 -10 7 5 5 5 4 26 12 . 20 .-'..-, As every rs during the last six months of 1965 were stocks in the airlines, e, o' and color TV fields, and the first 'five stocks shown in the table as rep. h 0 ose fields all appreciated five or more times as much as the Dow from June intQ ov er. Yet, as of Thursday night's close with the Dow in new high territory, all wer mewhat below their November peaks. Meanwhile, the ext five stocks in the table, typical investment-grade blue chip issue, most of which had advanced somewhat less than the Dow in 1965, all participated in the most recent rise and were, as of Thursday, above their November highs by a bit more than the Average. Yet, the weakness has not spread in many cases to the extremely speculative portion of the list. The latter five stocks in the table are all in the high r i s k category and all ad- vanced much more than the Dow from June to November. However, they have continued their strength and their technical patterns at the moment show no sign of deterioration. This trend, if it continues, could pose a serious dilemma for investors, espec ially those heavily committed to stocks which had been market leaders in 1965 and which now . may be in need of consolidation. Such an investor has the choice of either upgrading his I holdings in the hope that performance of hitherto laggard blue chips will improve, or of downgrading in an attempt to continue to achieve above-average capital gains performance with, of course, greater attendant risk. Such a choice actually is not new, but one which generally confronts equity buyers in the rnatu,e stages of a bull rna rket. It is, of course, the province of each individual to decide on the amount of risk he wishes to take. There are a number of secondary and tertiary quality situations which still have good technical pattern and could sell somewhat higher. However, those moving into such stocks at this late stage should do so with their eyes open and fully aware of the accompanying risk. Otherwise, they are perhaps better off in seeking capital protection in higher grade issues. Dow-Jones Ind. – 986.13 Dow-Jones Rails – 248.20 ANTHONY W. TABELL WALSTON & CO. INC. This market Irlter IS published for your convenumce lind IDformation and IS not an offer to sell or II. solicitAtion to buy Rny 8e'CUritlt'!; dlseu!lsed. The In. formation wns obtamed from sourCe!! we believe to k' T4hable. but e do not guarAntee Its accuracy. Walston & Co., Inc. and Its OfficelS dIrectors or emJllloyees may have an Interest In or purchase and sell the securltJcs to herein. ' I .. -..';—.,.,.MI 1

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Tabell’s Market Letter – January 14, 1966

Tabell’s Market Letter – January 14, 1966

Tabell's Market Letter - January 14, 1966
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Walston &- Co. Inc INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER January 14, 1966 At a stage of the'm-arket such as the present, when a large number of hitherto in- active low-priced are beginni(lg to dominate the headlines and theIpost-a,ctive lists, there often develops among Wall Street savants what could be called the tch-tch complex, As each new low-priced stock chalks up fantastic percentage gains on turnover, the natural reaction of the professional security analySt seems to be to deplore the poor idiots who, not sharing the analyst's professional capability, are blithely falling all over themselves to push speculative issues into new high territory. Enough of this sort of thing usually leads the analyst to proclaim, in dire tones, that the public is back in the market and that, therefore, Armageddon must indeed be at hand. A case in point can be found-in the recent-gyrations-i-n-Ank'en-Cnemicar& Film Corpo ration which,as recently as November,was selling for 8 7/8. Through this year, the compan has had a four-year record of decreasing earnings; capped by at least four successive quar- ters in which it showed a deficit, but, on January 7th, it announced that it would attempt to market a new device for developing black-and-white film at home. Despite the fact that ther was absolutely no rational way of projecting what the market success of this product might be and that, due to competition in the photographic field, there were, at least, grounds for doubt whether it could be successfully marketed at all, t he stock, selling for 16 on the day before the announcement, proceeded to move to a high of 383/8 over 5 days, trading 1, 127,700 shares or 106 of the capitalization in the process. It is, of course, only one example of the sort of thing that has been hitting the headlines with increasing frequency of late. It is, of course, very easy to make a case that himself in the current speculative orgies is a stock illiterate. It q iwoth r thing, however, to draw, therefrom, portentious conclusions about the a e tear as a whole. There is, indeed, a distinct relationship between the action of rice ks and major stock mar- ket peaks, but tha t relationship is a good to believe. Low-priced stocks, are, indeed, Ie – n many analysts seem wont cator, but it is worthwhile asking just wha Br.iefly,eit activity generally occur well which can be demonstrated by e r s' ow-priced–issues-and- in declines. This is a relationship to any chart. That there are peaks in any index is easy t dicting a peak bef i is not while it is sti .. g, b 13 i ight. There is, however, absolutely no way of pren l' words, the time to worry about a leading indicator ter it turns down. This, of course, has not yet occurred in most low-priced sto k a speculative activity indices. This is not to s t there are no grounds for concern about the current action of the stock market. There are, and most of them center on the length of the most recent up- swing without any noticeable interruption. The Dow-Jones Industrials have advanced from a sharply oversold condition at 832.74 in June to this week's high of 994.09, with the most drastic correction in the entire process being one of less than 5 in November-December. In this sense, at least, the situation is highly reminiscent of last May when a long protracted rise in the market was suddenly broken by a sharp decline which took a great many analysts by surprise. Yet, even in the May-June decline, a great many stocks had relatively mild reactions. The reason was, in most cases, simply that they represented, at the time, relatively good value. Having mentioned one specific instance above, let us cite another. Reynolds Metals (54 1/2) which happens to be in our recommended list, has, generally, risen over the past three years from a 1962 low of 20 1/2 and a low of 36 as recently as June. The point is, how- ever, that the rise in the price of the stock has been roughly coincident with the rise in the company's earnings so that at its current price Reynolds is now selling at less than nineteen times 1965 earnings, a ratio not too far different from the sixteen times latest twelve-month earnings it was selling at at its 1962 low. Clearly, the stock represents value at the present time, and, with further e-rnings gains in prospect, we have nO hesitation about retaining it in our recommended list for purchase. The point of all this, of course, is that,despite the flurries in low-priced issues, goo values continue to exist. The sensible investors' reaction to the activity in low-priced issues will be, simply, to ignore it, and to concentrate his efforts on a search for those many stock which still appear technically and fundamentally attractive. Dow- J ones Ind. – 987 . 30 Dow-,Iooes Rails – 257.48 ANTHONY W. TABELL WALSTON & CO. INC. ThiS market letter IS pubh&hed for our COn\Ct'llCn(.c Hnd Information and not an offer to '1dl or R ooIlcltRtion to buy any eeeuritu.'s The in- (olmntion waS obtained (rom /IOurce; we bLheve to L.' rehahlt. but \\c rio not guarmtee Its 1I('t'urar\. \\'al..ton & Co.. Inc lind It.. officcl!. d,rt'(.tors or -…..cmJ'loyCl may have an mterest In or purehasc I\nd sell the ;,ceUillno''' Icfl'rr,d to herein. WN3(H -I

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Tabell’s Market Letter – January 21, 1966

Tabell’s Market Letter – January 21, 1966

Tabell's Market Letter - January 21, 1966
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Walston &Co. —–Inc INVESTMENT' BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER January 21, 1966 The Dow-Jones Industrial Average continued to move ahead impressively the first part of this week, penetrating the 1000 level on Wednesday with an all-time intra-day high of 1000.55 being recorded. The expected decline in short interest announced on Wednesday by the New York Stock Exchange arrested any further net advance for the week. Based on an average daily trading volume of 8. 03 million shares, the short interest of 10,106,791 represented 1. 26 trading days, down from 1. 36 in December. The significance of this 13. 8 decline in short interest – the largest month -to-month decline on record – we feel can be discounted due to the artificial seasonal effect created by investors short selling against the box to lock in profits, but postpone realizing them until 1966. An inspection at this time of the monthly, short interest barome ter is extremely interesting. A 'drop substantially below 1. 00 in this barometer would be a cautionary signal. Penetration of 0.75 would indicate a signal. It is interesting to note thll-t this has not occurred since the Spring of 1961 when, coupled with a majority of our breadth-of-the-market indices, vulnerability in the stock market was indicated. These indices, maintained to forecast stock market peaks, are leading indicators which normally tend to peak out anywhere from six to twelve months before major market weakness sets in, as experienced in the 1962 correction. Conversely, the ability of this figure to reach 1. 75 would place this barometer in oversold territory and would be considered bullish. This occurred in the Fall of 1962, prior to the longest rise in the stock market in the post-war period. The present reading of this short interest barometer is neutral. It is. the practice of this letter to periodically on our recom- mended list in which significant technical changes have oc r tly, a number of these securities have either reached or are 'tg J1e 1 i al u e objectives. To this end we are making some changes in our recomm lis cepting long term profits in a number of securities which have moved r mmendation. 'e;c4x'Radio Corporation of America is approa'chin'g its-technicllupside-ob o' in recommended July 6, 1965 at 341/8 o'-J;,o e-ar-e -removing-this stock fI'om the -, – ' Quality & Long Term QJ'd List and would suggest using strength toward stock's side t a cept profits. Possible switch candidates would include Aluminum Co a r s WAmerican ri nd Royal Dutch. 1/8), originally recommended at 25 on June 29, 1965, may be held for long m u e objective of 52, but we are removing the stock from the Price Appreciation se n of our Recommended List as a certain degree of technical vulnerability does exi , due to the stock's recent sharp price advance. Switch candidates might include Sundstrand or Reynolds Metals. Cluett Peabody (78 3/8), originally recommended on June 5, 1959 at 28 3/8 (adjusted) indicates a technical upside objective of 90. Retention can be advised for long term holding. However, on strength we feel switch could be made into possibly Illinois Central Industries, Shell Oil or ReynOlds Tobacco. The stock is being removed from our Price Appreciation section of the Recommended List. McGraw Edison (363/4), originally recommended at 25 3/8 (adjusted) on November 13, 1964, has reached all technical upside objectives and is being removed from the Price Appreciation section of our Recommended List. We would use strength in issue to accept profits. Might suggest switch into Walt Disney or Gene ral Dynamics which were recently reviewed by this letter on November 29, 1965. Scovill Manufacturing (72), originally recommended at 35 3/4 on May 6, 1964, has ha an excellent price performance. Stock, however, has exceeded all technical upside objectives and sale Cin strength is recommended. The stock is being removed from the Price AppreI ciation section of our Recommended List. Might suggest switch to Schlumberger or Clevite. Ling-Temco-Vought (52 7/8)' originally recommended on March 22, 1965 at 24 1/2, has exceeded all technical upside objectives, and we are removing the stock from the Specu- lative Price of our Recommended List. We would use profits to switch into Microwave. Dow-Jones Ind. – 988. 14 Dow-Jones Rails – 257.29 ANTHONY W. TABELL WALSTON & CO. INC. Thl mnTket letter ig JlUblishcn for I'OnVCllll'nCC .tnd InfOrmatIOn and nfit an olf..r to sell or ,fI, '1ohritRtlon to buy Any l!e('urities dl'lrU'Ised 'fht' m fnrmnt.lOn obt.mn.t\I'rom.!';(''UTu…. we l\lhv to but C ,if) nOlt j(UlIT1mtl'e ltS lI'(;ur.-\p) Wnhton F.. Co. Inp. nn.l1t'l officl'ls. dUl',tors or t'mf'!loYNs rnn)' hnve an or pUrchR'l ' and 'lell thl' '1ll'Ulltll'S rd.rred to h…ltlfl. …, WN301 ,

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Tabell’s Market Letter – January 28, 1966

Tabell’s Market Letter – January 28, 1966

Tabell's Market Letter - January 28, 1966
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Walston &Co. —….;;….; Inc – …..- – INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL 60NnS Members N!'w York Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER January 28, 1966 AMERICAN BOSCH ARMA CORPORATION Current Price Current Dividend Current Yield Long Term Debt Common Stock 33 . 60 1. 8 None 1,692,540 shs. American Bosch Arma, originallyrecommen ded on April 5, 1965 at 20 3/8, is again reviewed by this letter in order to reflect a 'number of substantial improvements that have taken place within the company. In order to completely understand the significance of these changes, it Sales -1966-E 80,000,000 becomes necessary to first examine its past Sales-1965 72,000,000 approx. history. From 1957 through 1964 net sales have Earn. per sh. 1966-E Earn. per sh. 1965 –declined from 134milliciil to 70 million.Earn- 2.50 ings during this period experienced the same 1.85-1.90 approx. downward trend from a record high of 2. 67 in Current Range 1966-65 341/4-151/2 1957 to 91 a share in 1964. A new management team assumed command in the Fall of 1964 and has, in a short period of time, arrested the downward trend in sales and earnings, indicating a reversal in these areas for the year 1965. The present structure of this turn-about situation has been tremendously changed durin this period. Two divisions of the company nOw account for over 90 of total 1965 net sales. They are AMERICAN BOSCH DIVISION – (55). This division is the largest independent manufac- turer of diesel fuel injection equipment. Recent within the indus- try have significantly increased the potential markets for mrnwal d military applica- tion. Manufacturers are projecting an optimistic 1 l e e trucks continue to become increasingly competitive with gasoline mode s.Gfi1itial of a diesel engine is high er. However, through maintenance and of ra, a substantial saving is ac- crued over the life of the truck. arc cu-rrent-Iy ustngthcsc system-s;-La s ac uck,and other major producers, c h' enditurcs-have-placed in a commanding technological is coupled with low-cost production, should deter other manufacture s fro n own systems. Also, the replacement equipment market continues to b i ab . 'urther growth potential for this division can be ex pected due to the is division's successful fuel injection system. ARMA DIVSIO 5) vy dependence on one major defense contract (Atlas Missil y 1960's resulted in greatly reduced sales as the contract was eventually phased out is logically lead to excess plant capacity and a subsequent decrease in profits. Faced with this problem, management consolidated the experienced research and technological abilities of the division, then instituted a marketing sales effort which has placed the division in the position. to better sell their products. A diversified product line of electro-mechanical devices for military electronic systems has now been established. Over twenty various government programs now have contracts with the Arma Division. Conse- quently, any phasing out of business will nOw have nowhere near the relative adverse effect it once had in the past. Emphasis continues to be placed on the development of defense busi- ness. The division is once again contributing to profits, although profit margins continue to remain low. Special consideration is now bei.ng given to non-defense business. Along these lines a new but undisclosed patented electronic product in a major commercial market is to be announced shortly. This could be extremely beneficial to revenues, possibly improving overall profit margins. Revenues for 1965 are estimated at 72 million and earnings will approach 1. 85, dou- bling 1964's figure. Earnings could approximate 2.50 per share this year (1966). With a debt free balance sheet, the acquisition-oriented management believes it is in a position to acquir companies which would supplement their current earnings improvement and growth rate beyond fiscal 1966. We feel a conservati.ve rate of 15-20 yearly improvement can be anticipated. Therefore,benefits may be reflected to investors through an increase in earnings,8.td an increase in the pricel earnings multiple. Technically, the stock continues to indicate an upside objective of 50 with support in the 30-28 area. Despite the sharp rise that has already taken place in recent months at less tha 14 times 1966 estimated earnings, we feel the stock continues to have merit as a capital ANTHONY W. TABELL Dow-Jones Ind. – 985.35 WALSTON & CO. INC. DOlJ'r,tSJi0tltft ('onVlntt.'nt'c ,end Information .uut I'! not .w ofT('r to eell or R Aohlltatlon to buy E1ny securltws 01lCU'lcwti Tnt' .11- tormatlOn Will 'IOur('('!l we tIv, to I…. rdinl,le. hut WI.. ,10 not guarRnte Its .,J.('cur.H'\ \V,II'Iton & Co. Inc anI! ,I … du .dor-, or emJ'lloyees may have an mterest In or purchase and sell the ,crulllleS ref. rn'(l to hO;'rt'!1l. \\ N301 .-

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Tabell’s Market Letter – February 04, 1966

Tabell’s Market Letter – February 04, 1966

Tabell's Market Letter - February 04, 1966
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TABELL'S MARKET Walston &- Co. —–\nc —– INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVER.SEAS LETTER February 4, 1966 Since reaching-a -new-iiign'Oi C10DD. 55 on Wednesday, January 19th, the Dow-Jones In- dustrial Average has done, essentially, fairly little. It seems, therefore, appropriate at this time to offer a few thoughts about the general stock market climate. Any discussion of the general market background must begin with the fact, reiterated in this letter over the past few months, that, although the recent upswing from a time point of view is the longest in the post-war experience, almost none of the classic signs of long term market deterioration are present. The new highs in the Dow-Jones Industrial Average have been confirmed, albeit belatedly, by new highs in most indices of market breadth. Volume continues at relatively high levels and, mostJmportantly, in which the market advanced) shows no sign of important deterioration. As pointed out here two weeks ago, short interest figures remain favorable, and most of the other indices which have turned down prior to all major stock rna rket peaks are still moving into new high terri- tory. While all this may not indicate a move to new highs substantially above current levels, it does indicate the continuance, for the time being at least, of a continuing favorable market climate, i. e., one in which it will be possible to achieve satisfactory capital gains perform- ance in selected issues. While the outlook for the intermediate term thus remains favorable, it is a little bit more difficult to become wildly optimistic about the immediate prospects for stock prices. The six and one-half months that have elapsed between the lows at the end of June, 1965, and the highs made in the middle of January, constitute a rather generous time span for an inter- m,xiiate rise.IEqually disturbing is the fact that this entire taken place without any important correction. At no time during the past seven 0 t is'! have our shorter term market oscillators reached oversold territOrY'at w r s, advance has now bee continuing for an extended period without once expen g t s of reaction which shakes stocks out of weak hands and puts the market str ec al position for a sharp re- bound. The last time such a correction occur 's at une bottoms., Indeed, the only – retracemen-t that,hastaken place in r 0 as the -l'eiatively which-took the Dow from 969.98 to a December, from which point the tra ditiOnai year-end rally to new – h c er&f' It is, at t f cast the depth of any intermediate term downswlllg which might occur h r u thumb, of course, is that an upswing requires a one- third to one-half ret en . ne-third retracement of the move since June would bring ./Asthe Dow to 944 which, 1 te ment would carry it to mglyenough, is exactly the May high, and a one-half retrace- yet, it must be noted, there is to that anything like these figures The small top formed in the Dow a week ago mdlCated 974, WhICh was reached at last Tuesday's bottom. With Friday's strength to an intra-day high of 991. 53, the Industrial Average has now returned to the trading range in the 1000-980 area in which a top could further broaden. Since there is at the moment no potential base indicating considerably higher levels, immediate investment odds do not seem particularly favorable. The above discussion applies, of course, only to the Industrial Average. The other two Dow-Jones indices show entirely divergent patterns. The Rails, of course, have been outperforming the Industrials all the way along the line and posted a substantial new high a week ago despite the refusal of the Industrials to confirm it. It must be noted that at this point all of the longer term objectives wh,ich can be charted for Rail Average have been reached and a new pattern will probably have to form. Meanwhile, set off against this, has been the abysmal action of the Utility Average which, on Wednesday, posted a new low at 146. 57 which is, astoundingly, below the bottom reached last June. // It is, in summary, a stock market in which the term remains relatively favorable while there is some reason to questlOn the shorter term pIcture. At such a time, prudent investment policy generally calls for having reserves available to take advantage of future buying opportunities.\\ Dow-Jones Ind. – 986.35 Dow-Jones Rails – 259.70 ANTHONY W. TABELL WALSTON & CO. INC. This market letter is publlshed for your nd mfoTnlf'tlon Rnd Is not an offer to ReI! or soIieltation to huy An)' M'CUritlea discussed, The In- formatIon was obtfuned from sourCl' we bdn've to I,, rclmble, but we 110 not gUfirantce lis fI('rurarv Wnlston I. Co, JIIC. nnd offict'rs, dlrC('Wrs or employees mAY hAve an tntereat In or purchase and sell the referred to herem WN301

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Tabell’s Market Letter – February 11, 1966

Tabell’s Market Letter – February 11, 1966

Tabell's Market Letter - February 11, 1966
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TABEll'S MARKET – Walston &- Co. —–Inc —– INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges lETTER OFfiCES COAST TO COAST AND OVERSEAS February 11, 1966 Although the Industrials made a modest new intra-day high on Wednesday (1001. 11 vs. 1000.55 some weeks ago), last week's action essentially constituted a continua- tion of the trading range in which the Average has held for the trading days since January 5th. During this time it has closed on each day within just about 1 on either side of 985. The direction of the ultimate breakout from this trading area will have some significance. Currently, it is not possible to see too much potential on the upside, but a move sharply above 1000 would undoubtedly indicate that the market could remain at present levels for a fairly lengthy period of time. A downside breakout, on the other hand, would indicate a possible return to around the 960 level a logical testing ground since it represents major support existing from the November top and the late December tra.ding range. Meanwhile, regardless of the course of the market, there are many stocks and indus- try groups which look relatively attractive. One industry which appears especially interesting at the present time is the paper industry. For ten years the paper stocks have been one of the least exciting holdings of all major industry groups. In most cases, these issues reached their highs in have not equalled them since. The reason for this unsatisfactory price performance is not difficult to find. Earnings for most of the paper companies reached their peak in and are now just approaching the level of ten years ago despite a rise in earnings on the Dow Jones Industrials from 35 to about 54. Major paper companies have experienced substantially increased earnings in 1965, after like increases in 1964, representing the best for the industry since the period. Paper and paperboard mills in 1 6 ced an overall ating rate of approximately 93 which, in effect, s I cap in many divisions of the industry. Paper and board production in 1965 t t d abo .5 million t-O1lS ,or 5.50/0 more than the 41. 3 million tons reported Ho er lue of shipments probably in- creased 11 at about 19.1 billion vs. 17.2 I . 1 should experience further gains in total production of paper and board t t same rate achieved in 1965. Assuming- higher prices prevail continue to outpace production. i'l value of shipments will most likel This c n n es than in physical production is important! It was caused by the long .I prices for many products which the paper industry experienced in 1965. st oted that two major exceptions to this favorable pricing situation,which continu t gue the industry,are tissue paper and newsprint. Weakness for end product prices du the threat of lower foreign pulp prices, we feel, can be discounted due to the high level of integration in paper industry. Continuation of these favorable tions existing in 1965 (strong demand, high operating rates and firm end product prices) should mean important earnings gains for producers in 1966. We feel at this time, from a technical pOint of view, that the paper industry represent an excellent value. Like the aluminums, papers constitute one of the few groups that has been in a relatively narrow trading area since the highs. During this time period, stantial potential base patterns have formed. Ability to break out of these trading areas will be dependent on a continued increase in the pa'st static earnings record of this group, and, in some cases, this has already occurred. The downside potential appears relatively small if recent pIE ratios are maintained. All of the technical patterns on individual stocks within the paper group are substantially the same. They vary to a minor degree, but the basic patter is one of a long trading range with substantially higher levels indicated, in many cases, 100 above present levels, if the base areas are penetrated on the upside. As most of the paper stocks have held in a wide trading area for the past ten years, relative action the general market has been steadily downward. However, from a nearer term point of view, the downward trend in relative price action has been arrested and a marked improvement has been shown. Attractive investment opportunities in the industry are numerous. Currently, International Paper (34), originally recommended on June 29,1965 at 31 in the Quality & Long Term Growth section of our Recommended List, can still be pur- chased on minor weakness. Other stocks which appear technically attractive at the momen.t include Union (52), West Virginia Pulp & Paper (52), St. Regis Paper (43) and, m the more speculatlVe category, Great Northern Paper (45). AWTRJS ANTHONY W. TABELL amb Dow-Jones Ind. 989.03 WALSTON & CO. INC. 211), 4Q This marketetter Ie; I,,hshed for lour convenIence nd InformatIOn and IS not lin olTer to sell or 1\ tolirltAtlOn to buy any secUrities dls('uued Th, In- formatIOn was obtmned from source, …. c bdwve to I., rf'hnille, but …. e tio not gunrnntee Its arrurr!rv WHiston &. Co. Inr. nnft office,s.hn.cwrs or ctnJlloyees may have nn Illterest III or and -;ell the reflorlcd to hClctn. WN301

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Tabell’s Market Letter – February 18, 1966

Tabell’s Market Letter – February 18, 1966

Tabell's Market Letter - February 18, 1966
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–.————————————————————————————– Walston &- Co. —–Inc —-INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONOS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER February 18, 1966 The Dow-Jories-imlliStria'l-Avera'gelast week broke out on the downside of the long trading range in which it had held since early January. As noted in last week's letter, the dO'Nnside indication at the moment appears to be 962-960. Action at that point will afford an important clue as to the intermediate term direction of the market. Many analysts have drawn attention of late to the depressed state of the bond market and to the high yields available therein, and have drawn rather negative conclusions concern- ing the future of stock prices. It is, of course, silly to assume that the extremely high yield available in senior securities are not drawing SOme funds away from the equity market, es- pecially attempt, however, to find a long term relationship between stock and bond which has some predictive value, we find ourselves on far more difficult ground. To anyone who takes the time to study the long term history of bond prices, the most significant fact is tha t apparently these prices move in long cycles – cycles generally much longer than stock cycles. For example, the entire period from 1905 to 1920 represented a long and almost continuous decline in bond prices. From 1920, the bond market embarked 0 an upswing only briefly interrupted by the depression which brought yields to a low of 2.44 in March of 1946. Since that time, for twenty years, bond prices have been falling and bond yields rising, although there have been a few fairly substantial rallies. The following table shows the prices and yields of the Standard & Poor's High Grade Corporate Bond Index at selected points since 1946,and the series of lower prices and higher yields at each' succeed- ing intermediate high and intermediate low becomes appare Hi gh Date Price Yield D Yield March,1946 124.6 2.44 Nov r,1 4 2.84 January, 1949 122.7 2. 71 53 108.8 3.39 April, 1954 118.1 2.81/0 January, 1958—-105'9- . February, 1963 97. 80 Thus, the relationship Wi d t e , 1957 98.04 4.15 a – y;-1960- -91;'1)7– — iftanuary, 1966- '90 50—… A.-7'4o/o(todate prices since 1946, a period in which bonds have been . e . erent from that which prevailed for the pre.ious . 25 years – a perio c s e generally rising. Furthermore, an inspection of the past 25 years histor s is difficult to establish any important relat,ionship betwee moves in bonds and mo es' tocks. Actually, bond prices have tended to reach their peaks (see above) just about ime when the stock market was major upward move. A study of the dates on which bond price lows were recorded shows' eVen less relationship to the fluctuations of the stock market. There is, as a matter of fact,. only one relationsh.ip that can be drawn between bond and stock prices which seems to have some predictive value. Generally, a move of bond prices to a new low, after a rally, has foreshadowed stock. markel., peaks of some importance. Thus, the bond market rallied from November 1948 to January 1949 at which point it turned down. A new low was finally reached in May of 1951, and this took place four mnths before the September 1951 stock peak. The subsequent instances in which this has occurred are shown in the table below. The most recent instance, of course, is the new low m3.de in December of 1965, after the 1960-1963 bond price swing. To date, it has only been three months ,since.this occurrec!,.whereas in previous instan;es the between the bond price low and stock market peaks has been somewhat longer. Thus, bond prices, despite their current depressed levels, must be regarded as one of the stock market indicators that are at present somewhat inconclusive. Previous Bond Low November, 1948 June, 1953 September, 1957 January, 1960 New Bond Low May, 1951 August, 1956 February, 1959 December, 1965 Dow-Jones Peak September, 1951 July, 1957 August, 1959 Feb. 1966 (to ro.te) Lead 4 months 11 months 6 months 3 mos. to date Dow-Jones Ind. – 975.22 Dow-Jones Rails – 267.73 ANTHONY W. TABELL WALSTON & CO. INC. AWTamb Thlll market letter IS published Cor convcntenl't! nd mformntlOn and . not .\n offer to sell or a soheitfttlon to buy Any securIties dIscussed Tht' In formatIon was obtained from we hd,t'vl' to , rehnble. but we tin not lnIarRntec ,ts lIceUfJle\. ,'alston . Co. Inc Anil It… orne… , … fj,u'(tors 01 emJ'loyet's may have an mterest In or and set the M',-Urltll' t('ft'I(('1 to hert'ln. WN301

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Tabell’s Market Letter – February 25, 1966

Tabell’s Market Letter – February 25, 1966

Tabell's Market Letter - February 25, 1966
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TABELL'S MARKET Walston &Co. —–Inc —-INVESTMENT BANKERS MUTUAl FUNDS MUNICIPAL BONDS Members New 'lork Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS LETTER February 25, 1966 Three weeks age we cencluded this letter with the fellewing statement – It is, in summary, a steck market in which the intermediate term outleok remains relatively faver- able while there is some reason to. question the shorter term picture. At such a time, pru- dent investment pelicy generally calls fer having reserves available to. take advantage ef future buying epportunities. Since that time, the Dew-Jenes Industrial Average has declined ever fifty peints frem an intra-day high ef 1001. 11 earlier this menth, to. an intra-day lew ef 946. 10 this week. Fer eight days in a rew mere stecks have declined than advanced. This censtitutes the first significant cerrectien since the relatively mild decline in early Decem- ber,-which -f-remanJin-traday-high-of.96 9. -98 .te ,an.inba–qay 41. The cerrectien in December penetrated an uptrend line frem the June lews. Coincidently,this most recent cerrectien has also. vielated an uptrend line from the December lows. This dewn ward trend was arrested en Friday as the m3.rket rallied sharply frem oversold territery. This is the first time that our shert term escillaters have reached oversold territery since the May-June decline ef last year. As in mest escillaters, the eversold signals are mere impertant than the overbeught signals. These indicaters reflect fer the first time in ever seven menths a reactien that has tended to. shake stecks eut ef weak hands, a prelude to. put- ting the market in a firmer technical positien. Obviously, this process could take a consider- able ameunt of time. Because ef the constructien ef these escillaters, it will be difficult to. stay in everseld territery unless further weakness continues in the market. Hewever, any rally signalled by these escillaters from present levels ceuld well be temperary. Hew lew can the market go. at this peint The eb962-960, which cein- cided with the streng suppert level in the 960-950 area, wa x number ef pessibilities new exist. If the decline werge5-'P i i a Thursday's lew. A (Hately frem current levels, the lewest dewnside ebjective that ceuld be re8(l1 ,,uld b the 930-928 area, and a decline to. this area weuld represent a ever, if the market remains areund current levels, e!yushes up y 98 00, this have the effect ef breadening the petential tep and we evels at a later c r a t e . – ' A classical rule ef to. ene-half correctien is necessary be-' ; fere an advance can resu e. T 'em'lxttne 1965 through February 1966 carried frem an intra-day lew ef 83 7 carry the Dow to. 9 , a-.dhigh ef 1001. 11. A one-third retracement would 1 a ct'Ybeen just abeut reached, and a one-half retracemen ,1 would call fer 916. in g cerrelatien can be drawn with the Standard & Peer's 500- Steck Index. A shert ter indicated 90.50 which has, in effect, been realized. Hewever, there is a pessible fur r ebjective ef 87.00. Beth the Dew and the Standard & Peer's 500- Steck Index have cerrected themselves en a shert term basis, but beth can be ceunted fur- ther to. lower technical levels. Any miner strength in the Standard & Peer's 500 weuld also. have the effect ef breadening its petential tep fermatien. The abeve cerrelatien ends the moment we begin to. discuss the ether two. Dew-Jenes indices. The Rails centinue to. eutperferm the Industrials, and altheugh dewn frem its recent high, meets suppert in the high 250 area. The refu sal ef the Industrials to cenfirm the re- cent high in the Rails is also. cause fer cencern to. many classical Dew theerists. The Rail average has reached all leng term upside objectives and a new pattern must ferm, we feel, be fore any rise may resume. The Utility Average, on the ether hand, has pes ted a newlow at 141. 60. Judging fro. individual chart patterns which make up this average, it appears very likely that this greup will remain depressed fer some time to. come. It is, in summary, an interesting phase of the nl3.rket. At seme peint in time, the present shert term weakness will provide a buying eppertunity similar to. that afforded by the sharp weakness in M3.Y and June ef last year. If an immediate decline to the 930-928 ar!Oa toek place, such a buying eppertunity weuld prebably be presented. However, the market must be watched closely for a pessible broadening ef the distributienal pattern and an indica- tien that a lewer dewnside ebjective may exist. Dew-Jenes Ind. – 953.00 Dew-Jones Rails – 264.23 ANTHONY W. TABELL WALSTON & CO. INC. AWTRJS amb -, formation WitS obtamed from sources we bcheve to 1., rehable. but we do not guarRntee Its accuracy ernplo)et.'9 rna) have an mterest lh or purchase and sel! the secUrities referrt.d to herein. d;–U'-' ' -' ' 'T' 'h-,-,n- \\'alston & Co, Inc. and Its officers, or WN.SOI

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Tabell’s Market Letter – March 04, 1966

Tabell’s Market Letter – March 04, 1966

Tabell's Market Letter - March 04, 1966
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TABELI,'S Walston &Co. Inc ….;;,…….;;,,,,;;- INVESlMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS MARKETLEIlER. March 4, 1966 Recent tradirig sessions have provided the most exciting and perhaps the most important stock market action in many months. The traditional year-end rally reached its zenith when the Dow-Jones Industrial Average reached a high of 1000.55 on January 19, 1966. After a short decline this high was equalled with an intra-day peak of 1001.11 on February 9, 1966, just sixteen trading days ago For thirty trading days in January and February the Dow had held, almost without exception, in the broad 980-1000 range with volume extremely heavy. Eight days ago this range was penetrated on the downside. sU1JseqgenLdrop was preciQitous;. Thursday, the decline has been 7. 8 in fifteen trading days. was a 1IIl1.l experienced in the first fifteen days of the May-June drop when the comparable decline was 7.2. A rally on heavy volume in Thursday's last half hour ran out of steam on Friday, and the market declined again to close the week at 932.34. The stock market could well, we think, be approaching a very important juncture. Fir of all, we do not believe that the current drop is going to develop into a full-scale bear mar- ket, ending the upswing which began in October of 1962. It is quite possible that we are now entering a transitional phase, and tha t the next rally couldafford the first signs of deteriora- tion that mark the bull market's end. However, more time appears to exist. It follows, then, that the bottom of the present decline, when it occurs, will become an important buying opportunity for equities, much as the bottom last June offered the best such opportunity in a number of months. It appears appropriate, therefore,to side risk that exists from current levels. the degree of down- W0 The end of this week saw the Dow-Jones Industfial fr.- e a em some support at around the 930-928 level, mentioned in last week's It e possible that a base form in the present area and an advance will se levels. Such an advance could very likely prove abortive. — We are not – if- aTket;-however;-and-we-would-prefer711-. for the time being, to present decline is complete. t the market may move lower before the downside target at the moment appears to be 910-890 in te es necessary at a later date to revise this think- ing, we will do so However, as no yty . ove such decline will probably provide a good buying nity. It is probably nec ss to start thinking at this point about the appropriate stocks to which buying reserves be committed on any further weakness. Listed below are seven- teen issues which we believe would be appropriate purchases on any market weakness, to- gether with present prices and projected buying levels. The letters H, c and s stand for Highgrade, Capital Appreciation, and Speculative Recommended List. The stocks will be added to the appropriate list if the buying levels mentioned are reached. Also listed (at the end of the list) are nine issues already on the list, which would appear especially attractive for new purchases on weakness. IAir Reduction (C) Present Price 71 Buying LeveI 65 !Parke-Davis (H) Present Price 38 Buying Level Allegheny Ludlum (C) 48 Howell (C) 44 45 40 (C) 37 1, Union Bag-Camp (H) 51 34 47 , & (SH)ecla (S) 20 33 (S) 26 Colt Ind. (S) 23 Cyclops Corp. (C) 44 Dayco (S) 28 \Ex-gll;.,O (C) 60 'Great No. Paper (S) 45 No.Am er. Avia. (H) 59 -IOlin Mathieson (C) 58 Dow-Jones Ind. 932. 34 18 27 23 19 38 24 55 38 55 55 West Va. Pulp (C) 53 Alum. Co. Amer. American Bosch Crowell-Collier Disney (Walt) General Dynamics Revlon Reynolds Metals Riegel Paper Sundstrand 86 31 45 54 57 50 53 23 42 ANTHGNY W. TABELL 48 80 28 41 50 50 47 50 21 39 Dow-Jones Rails 259.90 WALSTON & CO. INC. A\VTams This market letter 18 published for your convenience Mld Information and is not Rn offer to sell or fI. solicitation to buy any &eeUTIl\es dl8eURRed The Ln formntlon was obtamed from sOurces we to 11;' rehable. but we do not gURNLntee its accuracy. ''Valstoll & Co. Inc nnd its officers dlre'ton; or employees may have an interest in or purchase and sell the securitle; referred to herem. I

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