Viewing Month: January 1967

Tabell’s Market Letter – January 05, 1967

Tabell’s Market Letter – January 05, 1967

Tabell's Market Letter - January 05, 1967 page 1
Tabell's Market Letter - January 05, 1967 page 2
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Walston &Co, Inc MUNICIPAL BONDS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFfiCES COAST TO COAST AND OVERSEAS TABELL'S RECOMMENDED LIST January 5, 1967 This edition of our Recommended List tallies the price performance of all recom- mended stocks over the past two years. As usual, the list is divided into three categories Quality and Long-Term Growth, Price Appreciation, and Speculative Price Appreciation. Included at the bottom of the tabulation after each category are all stocks removed from the list during the year 1966. The list, therefore, covers all stocks on our Recommended List a year ago and all those recommended during the year. In addition, the performance of stocks removed during the year 1965 is averaged'at the bottom of each list. – -, The first two columns show the recommendation date and price. In cases where no recommendation date is given, the stock had been on the list prior to December 31, 1964, , and the price as of that day is used. The third column sh,ows the price on December 31,1966 or on the date removed if the stock is not now on the list. The fourth column shows the per- centage change, and the fifth column shows the percentage change in the Dow-Jones Industrials during the same time period. The tabulation speaks for itself. The stocks in the Quality and Long-Term Growth section of the list show an average decline of 3. 6 vs. an average decline of 9 in the DowJones Industrials. The stocks in the Price Appreciation section show an average gain of 16.2 vs. a 1. 4 decline in the Dow, and in the Speculative Price Appreciation section, the average gain is 46.8 vs. a 2.00/0 loss 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 Price on Date Date Recom. Recom. Alum.Co.Amer, American Can Amer, Tel & Tel Goodyear Tire Gulf Oil Intern'l Paper Natl.Cash Reg. Parke Davis Reynolds Tob. Royal Dutch 5/3/65 9/7/65 6/17/66 6/29/65 5/21/65 4/22/66 71 7/8 43 67 51 58 1/2 31 88 3/8 36 1/2 38 7/8 45 3/8 Chesa. & Ohio 9/7/65 73 3/8 Radio Corp. 7/6/65 31\ l/S Stocks removed in 1965 (3 stocks) AVERAGE & LONG Price 12/31/66 or date Removed 78 3/8 47 1/8 (55 41 1/2 59 1/8 25 3/8 67 5/8 27 1/8 34 l/S 33 1/8 77 7/8 52 3/8 TERM GROWTH Change Change DJIA same Time Period Current Comment 10 10 – 18 – 20 1 – 18 – 24 – 25 – 12 – 27 -2 53 6.8 – 3.6 – 15 Buy for 110-190 – 10 Buy for 60-77 13 Hold. 59 indicates 78 – 12 Buy-Dips.. Support 40 -3S – 10 Buy-Dips. Objective 92 – 7 Buy on dips – 15 Hold – 17 Buy on dips – 10 Hold – 10 Buy-Dips. Objective 86 -11 Removed from list 9/16 13 Removed from list 1/21 – 5..7 – 9 Air Reduction Allegheny Lud. Amer. Potash Anchor Hock. PRICE APPRECIATION Price on Date Date Recom. Recom. 4/22/66 72 3/4 11/18/66 56 6/29/65 39 11/18/66 53 Price 12/31/66 or date Removed 65 1/4 57 3/4 32 3/4 52 l/S Change DJIA same Time Change Period – 10 – 17 3 3 – 16 7 -2 3 Current C9mment Buy for 102 Buy for lOS Buy-ilps, Objective 60 Buy-Dips.Ob. 68-90 Thl; Bulletm 16 IlUhh ..ht1 for our ('on\tnwn, .lnd mformntlon nnd ' not R.n oif(r to ..1I qr a SOllelt,ltlon to bu) Iln .(,,untLl's '1''ilU….,…,J The lnfolmallon VtUS oh\..1In….\ from !Our ……, we 1,.,1,,\'.' to I ,,l,nhl … but Vol' d not gu,rllnt.. ,1..; c('urnr Vt'1l1ton &. Co Inc and ,t.. oll1c.. r,;, dLI(''loro; or eml'Ot.'l.'s ma) tllwe Rn In or In,l ,ell thc 'c'\Jrltl.' nf,'rl' to herem '11-916 Walston &- Co. Inc MUNICIPAL BONDS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFF1CES COAST TO COAST AND OVERSEAS TABElL'S RECOMMENDED LIST PRICE APPRECIATION (Continued) Date Recom. Price on Date Recom. Bell & Howell 4/17/66 47 Cenco lnstrum. 1/29/65 293/4 Cinn. Milling 11/18/66 31 Clev ite Corp. 40 7/8 Columbia Broad.1l118/66 57 Copperweld S. 26 3/8 Denver Rio G 21 3/8 Disney, Walt 45 1/2 Eaton Yale T 215/8 El Paso N. G. 22 5/8 Excello 4/19/66 55 Gen'l Dyn. 35 Gillette Co 11/15/65 37 Ill. Central 51 1/2 Kelsey Hayes 11/18/66 29 Koppers 27 1/2 McDermott,J.R. 371/4 Mesabi Trust 14 7/8 Metro-Gold.M 3/1/65 201/2 Olin Mathieson 4/22/66 63 -Revlon — 451/8 Reynolds Met. 34 7/8 Riegel Paper 21 3/8 Robertshaw C. 3/15/66 34 Schlumberger 473/8 Sharon Steel 7/8/66 347/8 Shell Oil 59 1/2 Signode Corp. 27 1/4 Southern Rwy 57 3/8 Sundstrand 20 Union Bag C. 3/23/66 47 United Fruit 17 5/8 Wallace &Tier. 8/2/65 32 Price 12/31/66 or date Removed Change 54 1/2 34 3/4 33 38 3/4 61 1/2 28 16 7/8 79 1/4 24 1/8 17 7/8 44 1/2 48 1/8 41 3/4 73 1/2, 27 3/8 26 3/4 77 1/2 12 1/8 37 1/2 58 5/8 46 5/8 50 1/8 15 1/2 23 3/4 40 1/4 33 60 30 3/4 42 1/4 29 7/8 37 3/8 26 3/4 31 7/8 16 17 6 -5 8 7 – 21 75 12 – 20 – 18 39 13 43 -6 -3 108 – 18 85 -6 — -3 43 – 28 – 33 – 15 -6 11 – 26 49 – 21 51 Change DJIA same Time Period – 17 – 13 – 3 – 10 -3 – 10 – 10 – 10 – 10 – 10 – 17 – 10 – 18 – 10 -3 – 10 – 10 – 10 – 13 – 17 – 10 – 10 – 15 – 10 – 12 – 10 – 10 – 10 – 10 – 15 – 10 – 11 Current Comment Hold for 62 Hold Buy for 60 Hold Buy-Dips. Object. 84 Buy for 38-54 Hold for income Hold for 100 Buy-Dips. Object. 49 Hold Buy-Dips. Object. 90 Hold. Support at 45 Buy for 80 Buy-Dips.Object. 114 Buy-Dips. Object. 42 Buy-Dips. Object. 60 Hold for 102 Buy for income Hold for 52 Buy for 72-130 Buy-Dips. Object. 94 Hold Buy-Dips Buy-Dips. Object. 74 Buy for 70 Buy-Dips.Object. 120 Buy-Dips. Object. 50 Hold Hold for 35 Buy for 92 Buy-Dips. Sup. 26-24 Buy-Dips.Object. 63 Amer. Hosp. S. 6/29/65 Atch.Top.SF 25 331/8 Beaunit Corp. 37 Canteen Corp. 6/10/65 Cluett Peabody 193/4 60 3/4 Crowell Collier First Chart. Fin. Interstate Mot.F. 6/29/65 Kansas City So. Korvette 25 1/8 24 1/8 28 44 1/4 40 McGraw Edison 25 1/2 Perkin-Elmer 6/29/65 48 Scovill Mfg. 36 7/8 Swingline, Inc. 18 1/2 Warner Bros. 4/5/65 33 3/4 Stocks removed in 1965 (15 stocks) AVERAGE 42 1/8 32 55 31 1/2 78 3/8 38 7/8 14 1/2 23 3/4 35 3/8 23 5/8 36 3/4 47 1/4 72 38 1/2 23 5/8 69 -3 49 66 29 51 – 40 – 15 – 20 – 41 44 97 95 105 – 30 17.8 16 2 17 -7 7 11 13 -7 7 -4 -7 7 13 7 13 7 -7 Removed from list 1721 Removed from list 9/10 Removed from list 4/29 Removed from list 4/29 Removed from list 1/21 Removed from list 11/18 Removed from list 4/29 Removed from list 9/16 Removed from list 9/16 Removed from list 4/29 Removed from list 1/21 Removed from list 4/29 Removed from list 1/21 Removed from list 4/29 Removed from list 9/16 3.9 – 4.1 ThiS Bulletin IS Iluhhsho..d for )our conVl-nlince lnd Lnformf\llOn .-Ind I' 110t an olTtr to ..ll or f\ \\,10, obullnc..! from vc hdRVL to I.. lehahlc, uut we do not KU,lrllnlu IL-; a('('Ulfl\ \\'I .. too l!… Go tllWC an In or ,\lui cll to to hu an ,('curlt't's tll;CUSbcd 1he nfOrmatlOn Inr. and officers, d!lectors or Cml,lotes mn), WH-916 W—-d–l-s-tIoncn–&—-C–o-. MUNICIPAL BONDS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchange, OFFICES COAST TO COAST AND OVERSEAS TABEll'S RECOMMENDED LIST SPECULATIVE PRICE APPRECIATION Date Recom. Price on Date Recom. Price 12/31/66 or date Removed Change DJIA same Time Change Period Current Comment Amer. Bosch 4/15/65 Camp. Claiboug. Chris-Craft 3/15/66 Home Oil A 11/1S/66 Microwave National Can Pacific Pete UMC Industries Varian Assoc. Vulcan Mat. lS 7/S 3 13/16 23 21 9 5/S 17 10 3/4 14 3/S 13 17 3/S 19 3/4 5 3/4 21 7/S 22 21 1/4 23 l/S 10 13 7/S 30 l/S 17 l/S 1 50 5 5 120 36 1 132 1 . Buy-Dips. Object. 47 – 10 Hold – 15 Buy-Dips. 24 indo 39 3 Buy-Dips. Object. 34 – 10 Buy-Dips. Object. 40 – 10 Hold. Object. 50 – 10 – 10 Buy-Dips. 15 indo 2S Buy-Dips – 10 Buy-Dips – 10 Buy-Dips.Objective 2S Audio Devices Budd Co. 3/17/66 Foote Mineral Gt. West Fin. Hewlett Pack. Ling Temco 3/22/65 17 l/S lS 16 3/4 11 1/2 22 5/S 24 1/2 Mohasco Seab.World Air. 14 l/S 6 Stocks -removed in -1965-(S-stocks) — 25 1/4 15 l/S 19 3/S S 50 52 7/S 25 1/4 24 3/4 79 – 17 16 – 31 121 116 79 313 -c' 7 – 12 7 7 7 10 7 7 Removed from list 4/29 Removed from list 9/16 Removed from list 9/16 Removed from list 4/29 Removed from list 4/29 Removed from list 1/21 Removed from list 4/29 Removed from list 4/29 AVERAGE 46. S – 2.0 This lJull!,bn ohtllltlld IS I'uilll!,hed Cor our rOllvenwnN' nnd from ourn WI- h…IIl'''''' to t H.!h,llol,. mfolmnlmn ,\nil Ib not but Wt ,In 1I0t gutl.lntl ,m offer to ott'll Its .lcrUl,u') \oVralnsto;no\1s(..'.ltnCtloJ.n to bu lUi !,l'!unlw'l an Its offif'elS, .lIn'rtors The ,nformnt.on or empiO)L'(.S may hnvc I,n mlelC'll m 01 IIn,l ,,-11 the nfl'! to h..rn '11'11-916 I

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Tabell’s Market Letter – January 06, 1967

Tabell’s Market Letter – January 06, 1967

Tabell's Market Letter - January 06, 1967
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Walston &Co. MUNICIPAL BONDS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. TABELL'S MARKET LETTER OFFICES COAST TO COAST AND OVERSEAS January 6, 1967 The stock market ushered in 1967 with a series of wild gyrations which astonished a great many investors. 1966 had been closed out on a downward note by most averages, with the Dow-Jones Industrials violating the 790-822 range in which they had held since late Octo- ber to reach an intra-day low of 779. 34 on the last day of the year. The first three days of the new year were, to say the least, interesting. Trading opened on Tuesday with a sharp rally which had the Dow up almost 10 points around noon. Heavy selling then set in and the gains were just barely held with the closing figure up O. 72. This decline continued with a 4 to 5-point slide on Wednesday morning which abruptly turned around, and the index gained back all it had lost, and more, closing up 4.73. The rally continued on Thursday with a tremen- dously broad rise in which over a thousand stocks advanced, and the closing average pointed a gain of 14. 37 points. Some profit taking slowed the advance on Friday, but an intra-day high of 816.53 was reached. Exciting as all this may have been, it was in precise conformity with the normal sea- sonal pattern. What we are seeing, of course, is the year-end rally which, contrary to folk- lore, is a phenomenon that characterizes the new year just as much as the old. This rally, which has taken place in everyone of the past Sixty-six market years, although it begins in December, invariably carries on after the first of the year. As we noted a week ago, it has tendency to begin late in years when the market is down, and did so in 1966-67 with the De- cember low being made on the very last day of the year. As we pointed out, the extent and vigor of this rally will provide an important clue to determining the stock market's future in 1967. Encouraging signs would'be (1) the ability to post 10/0 (approximately to 860 on the Dow), or to hold above the December closing 10 7 Dow) through mid March. Discouraging signs would be (1) a sizable . f re 8 s reached, or (2) a close below the December low figure in January or e H9,\Febru . The present seems to be One of those . ds t ow-Jones Industrials are par broad s pIe by break1ng below 1ts November is the only one of the popular 11W ks.. great many mterestmg tO'note, however, that 1t Neither the Rail or Utility average post ed new lows at the end of Dece of the broader averages such as the Stand- ard & Poor's r 0 ck Index, or the new New York Stock Exchange Index. Even more i 1son of the Dow with our daily breadth index, which is based on the number s CKS ncing and declining. Not only did breadth fail to make a new low at the end of D ce r, but it shot up to a new high last Thursday without any of the popular market avera osting new peaks. This, of course, is just one more statistic which demonstrates the underlying vigor of the advance. Regardless of what average one looks at, we continue to adhere to the basic belief that the market is now in the process of building a base for an advance to take place at some future date. The big question at the moment is whether the various market indices will be abl shortly to break out of the trading ranges in which they have held since last August, or whetl another downward move will extend the base formation further out in time. These potential bases have been forming for five months now, and have upside objectives which are signifi- cantly above present levels. The following table gives the 1966 range of three popular aver- ages, together with upside breakout points, minimum and maximum upside objectives, and the percent of the decline from high to low that would be recovered if these objectives were reached. 1966 1966 Minimum /0 Maximum /0 AVERAGE High Low Current Breakout Objective Recovery Objective Recover DJIA 1001.11 735.74 808.74 830 850-860 43-47 890-935 58-75 DJ-65 355.31 258.28 290.21 295 325 69 365 110 S&P-500 94.72 72.28 82.18 84 87 68 91-93 86-95 It is interesting to note that the broader averages, such as the Standard & Poor's-500 and the Dow-Jones-65, have the broader upside potentials and are currently closer to breakouts, confirming the relatively inferior performance of the Dow mentioned above. It must be stressed, of course, that the upside objectives listed above would not become valid unless confirmed breakouts actually took place. However, any decline would have the ultimate effect of broadening the bases and indicating higher objectives to be reached at a later date. Dow-Jones Ind. 808.74 Dow-Jones Rails 210.98 ANTHONY W. TAB ELL WALSTON & CO. INC. AW,rer. mar ii!t letter Is publlsbed for your convenience and infonnatlon Rnd Is not An offer to sell or a 8Olieltatlon to buy any M!'cUrltiea dlltc\lSlled The In feomrpmloatyieoen. mwaays hoabvtaeinaend InfrtoeMrestsoIunrcoers PwUleebheaalieevaendtoseblle threehsaebcleu.rltbluest rweefedrroedntoot hgeuraerman. tee ita accuracy. Walston & Co Inc. and ita ofll.eers I dir' e l to l n or

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Tabell’s Market Letter – January 13, 1967

Tabell’s Market Letter – January 13, 1967

Tabell's Market Letter - January 13, 1967
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Walston &- Co. Inc …. MUNICIPAL BONDS UNDERWRITERS MUTUAL FUNDS Members New York Stock exchange and Other Principal Stock and Commodity Exchange. OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER January 13, 1967 There is often, if we would but realize it, a certain ironic humor to the stock market. On Tuesday night, President J,ohl)son announced, in his State-of-the Union message, that he would ask the Congress to impose a 60/0 surcharge on both corporate and personal in- come taxes. This surcharge will mean, among other things, that all of us will have less money to spend and, presumably, invest in stocks during 1967. It means that corporations will earn, probably, some 30/0 less than they otherwise would have earned. And, on a more sophisticated level, at least in terms of conventional wisdom, the tax increase will provide a braking force on economic activity. stock asfcill;;;- On after an initial drop which lasted for one hour, the Dow advanced 8 points on the third highest volume in the his- tory of the Stock Exchange; on Thursday, it advanced another 7 pOints with volume just bare- ly under Wednesday's figure; and on Friday early profit-taking stalled a 5-point decline and the Dow advanced another 5 points. On all three days advancing stocks led declining issues by a wide margin, and, in the process, all of the popular averages broke out sharply on the upside of trading ranges in which they had been confined for the past 5 months. The whole thing constitutes a superb example of why we use the technical approach to the stock market. Since the week's action was intima tely tied to the tax increase, it is worthwhile to examine the evident economic reasoning behind it. Quite obviously, Mr. Johnson's economic advisers are able to see, as well as the rest of us, the obviOUS signs of a slowdown in econo mic activity. However, they seem to feel, in the face of that the slowdown will be of short duration, perhaps reaching a bottom by the sec d Wrd' uarter of 1967, and that, at that point, the economy could turn upward t ing the increase from having any deleterious effect. p. n entum, thus prevent- The counter-argument would, of coursay and we do not, at this early stage, d to ess activity has turned down how far a downturn may extend. e-to take anyaction at flifStfme wlifch All of the above, f cOU seminar, but it bears -t is important in thi , u\;s an interesting discussion for an economic s 0 the day-to-day activity of the stock s not so much the ultimate economic effect of the tax cut, but the cold har c of market's response to it. What the stock market is, in fact, saying by its sharp adva st week, is that it is willing to adhere, at least for the time being, to the Johnsoni ldea that the 1967 contraction will be both mild and short. It is also recognizing the fact, both implicit and explicit in the President's speech, that tight money is a thing of the past and that the pressure on common stock prices due to much higher yields available elsewhere will very shortly be eased substantiallyB Whether the market will have to reverse these views at a later date is, of course, anybody's guess. From a technical point of view, all of the popular averages have now broke out on the upside of trading ranges in which they have held since August. As noted last week, the upside objectives vary widely for various indices, but for the present let us discuss the market in terms of the Dow. The most conservative upside projections center around the 860-870 range, while more liberal targets vary from 900 to 950. Overhead supply exists in the 870-900 area where the Dow traded repeatedly in late-1964, Summer 1965, -and May -.- June of 1966. It is this supply area that constitutes, really, the next important test for the market. Ability to penetrate this supply would indicate, if not a major extension of the upswing, at least the entrance of the market into a new phase in which the base for a new ad- vance would be laid. Inability to gain much headway at the 870-900 level would raise some rather serious questions. We prefer to think at the moment that the risk of not owning common stocks at this point at least equal to the risk of owning them. If it appears necessa- -'-ry to take another look at this-policy at a future date, we will, obviously,do so. Dow-Jones Ind. 835.13 Dow-Jones Rails 220.41 ANTHONY W. TABELL WALSTON & CO. INC. AWTamb This market letter Is publlehed tor yoUr convenience and Information Rnd Is not an offer to sell or a soIldtation to buy any 8eeurittes diaeuaaed. The in efomrpmloaytieoens mwaays hoabvtaeinaend infrtoemrestBOInuToeres pwUFe cbbaesheevaendtosebllethreelisaebCleU.ribtiuest rweeferdroedntoot guarantee hereln. Ita accuracy. Walston Co., Ine. and its oflleera. directors or WNSOI

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Tabell’s Market Letter – January 20, 1967

Tabell’s Market Letter – January 20, 1967

Tabell's Market Letter - January 20, 1967
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Walston &Co. Inc. MUNICIPAL BONOS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodify Exchen9.' TABELL'S MARKET LETTER OfFICES COA,ST TO COAST AND OVERSEAS January 20, 1967 The stock market continues to display astonishing vigor. Although the Dow-Jones Industrial Average sold off moderately on Thursday and barely advanced on Friday, advances outnumbered declines on both days, marking 14 consecutive trading days on which this has occurred. In other words, measured on an advancedecline basis, we have not yet seen a declining day so far in 1967. Few investors realize; actually, how unusual the strength and breadth of the January, 1967 stock market actually is. It is necessary to go all the way back to the market rallies of July 1962 and October 1962 to findanything remotely comparable insofar as breadth'statistics are concerned. Previous to this it is necessary to go back to early 1958 to find a rally which, on a short-term basis, has been as steep and as vigorous as this one. It is at least worth noting that the examples mentioned above were the precursors of dynamic moves to new highs in stock prices. The advance has now gone far enough so that various commentators are yielding to the ancient desire to pin labels on it. It has been called variously – a new bull market, a baby bull market, an intermediate-term rally in a bear market – along with a number of othe tags. All this, we think, leads to a great deal of semantic confusion. We have been pointing out since last August that we believed the stock market was undergoing a process the ultimat product of which woula be much higher stock prices. We still feel that this is the case. Meanwhile, we realize that' there are agreat many uncertainties regarding the 1967 outlook, both technical and fundamental, that have yet to be resolved. 0 the midst of all this we and that 1S to own common stocks whlCh appear to r 0I nt d ble course action e from a techmcal and fundamental viewpoint. It is our feeling that one sho fu vested in such stocks, and that, if he is not in such a position, he get thaLway.lIILit.becomes ..necessary. 0 .r a or weakness in the market to sing and,r.ecommend a more cau- tious attitude at a later date, we the time being we prefer not to argue with the obvious message the A great many sto 0 ur recommended list appear attractive. AIR REDU 6 ecovered sharply from its October low of 51 and is currently selling at reported for 1966, and . a gs in the neighborhood of 5.60 per share will probably be improvement, possibly to as much as 6. 50,is looked for in 1967. Present multipl hich mark the stock at around ten times 1967 earnings, appear conservative when the optimistic outlook for this manufacturer of industrial gases is assesse and when it is realized that it has been appraised at better than 20 times earnings many times in the past. SHARON STEEL (393/4) reached a new 1966-67 high at 405/8 earlier this week, but, if the profits from the company's recent capital-improvement program are realized in 1967 to the extent that we feel they will be, the stock still appears conservatively priced. While final results will, obviously,depend on the level of steel production, we are still estimating that 1967 earnings could be in the 5.00 – 6.00 range compared to an estimated 2.70 for 1966. We would continue to be a buyer of the stock on minor dips. CHRIS-CRAFT INDUSTRIES (29), on oUE list for some time, has recently broken out of an important base formation with an upside objective of 39 followed by higher levels. Al- though earnings for 1966 probably will be below 1965's 2.07, due to a strike-bound second quarter, backlog is at a new high in the boat division and television revenues appear highly likely to surpass those of a year ago. We continue to feel the stock is an attractive purchase. Two long-time recommendations of this letter, SUNDSTRAND (33) and WALT DISNE PRODUCTIONS (92), are approaching upside objectives. Sundstrand has an objective of 35 and Disney has an objective of 100, but there is a possible 140 in the pattern. We would con- tinue to hold positions in both these stocks for the time being. Dow-Jones Ind. 847. 16 Dow-Jones Rails 226.84 ANTHONY W. TABEL L WALSTON & CO. INC. AWTamb Thl. market letter I. published for your convenience and Infonnatlon Rnd la not an oft'er to &ell or a. AOIieit&t1on to buy any IleCUritie. The In formation emDioyee. was rn.ay obtained hll'Ve an l from BOurees ntere.t In or we pu.e hbaealieevaendto&eblle reliable. but the securities we do referre dntoot guarllntee herein. Ita accuracy. Walston Co Ine. and Ita ofBcers. dlr'ecton or WN.IOI

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Tabell’s Market Letter – January 27, 1967

Tabell’s Market Letter – January 27, 1967

Tabell's Market Letter - January 27, 1967
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Walston &- Co. …;…..;.;;.;;;..;…;; I nco F I LIE.. MUNICIPAL BONDS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchangss TABELL'S MARKET LETTER OFfiCES COA.ST TO COAST AND OYERSt.AS January 27, 1967 The. advance, which had characterized early January, ran out of steam a bit .thiS week with small advances in the early part of the week being erased by a move to an mtra-day low of 830. 18 on Thursday versus the high for the move of 856. 68 on Monday. We continue to feel that the minimum obJective for the Dow is in the 870-900 over- head supply area and that the ability of the market to sustain an advance to that area will be the next important technical test. We continue to favor a fully invested position in well se- lected common stocks. One such stock is reviewed below. . —–.– ——— – . -.—- … ANCHOR HOCKING GLASS CORPORATION Current Price 54 1/4 In view of presently conflicting opinions Current Dividend 1. 40 over the trend of the nation's economy in 1967, Current Yield 2.6 and especially over the direction of corporate Long-Term Debt 4 Cum. Pfd. Stk Common Stock 20,000,000 27,019 shs. 2, 994, 582 shs. profits, a close look at Anchor Hocking Glass Corporation seems warranted at this juncture. There appear to be few areas in our economy that offer as attractive a probability of earnings pro- Sales-1967-E Sales-1966-E 200,000,000 190,000,000 Earn. per Sh. 1967 – E 4. 10 gress in 1967 as those in which this company operates. Anchor facturer of gla ta the world's largest man J'and the third largest Earn. per Sh. 1966-E 3.75 – 3.85 producerw; t . Its line of table- Mkt. Range 1966-67 581/2 – 40 7/8 ware and ei ed s the most complete and in yand, although these prod- u ount around fifty pc r cent of total revenues;'they account for a larger . ther products include metal plastic caps and closures a breakdown of customers is not available, it is estimated that 0 container volume is sold to the food in- dustry and 3 0 by the drug, toile c The remainder of the container volume is taken ' . stries. It is interesting to note that currently about half of the items gOl t th age industry are of the non-returnable type bottle. With this particular type it r y growing in popularity, the company is anticipating accele- rated growth by this d on over the foreseeable future and contributions to overall profit- ability should be comparable. Because of new plant start-up expenses and higher labor and raw ma terials costs, 1966 earnings were somewhat retarded. Despite these factors, however, net for the year is expected to have advanced sharply over 1965 results, and per share estimates reveal between 3.75 and 3.85 a share, compared with 2.92 for 1965. Further growth in earn- ings is projeCted for the current year despite a continuation of break-in expenses and even higher raw' material costs. The patent infringement suit brought against the company by Corning Glass Works was settled early in 1965 by a Federal Court ruling in favor of Anchor Hocking. This suit dealt with the company's Fire-King-line.oLovenware. Although it has properties similar to. Corning's product, the Fire-King line is more competitively priced. With demand for items of this nature showing rapid expansion as more and more new household formations take place, the outlook for profitability from this source is favorable. In addition to the favorable fundamentals, the technical aspects of the Anchor Hocking situation are equally impressive. Aside from the minor amount of overhead supply existing between current market levels and the earlier high of 58 1/2, there appears to be little op- position before our price objective of 68 to 72. Our longer-term price objective indicates 90. The downside risk seems slight in view of strong support present between 46 and 50. This stock was added to our Recommended List on November 18, 1966, at 53 a share, and we again suggest purchase at current prices. Dow-Jones Ind. 843.82 HARRY W. LAUBSCHER for ANTHONY W. TABELL Dow-Jones Rails 226.71 WALSTON CO. INC.& w-w. \!ttaeWeA tb ; market published tor your convenience and mformatlon And i8 not an oft'er to or a solicitation to buy any seeurltl d seed The .n-feomrpmloaytieoen. was ma;y boabvtaeinaend Ifnrtoemrestsoiunrcoers pwUeFchbaeslieevaendtoseblle threelisaebcleu.ritbiuest rweeferdroedntoot hgeuraerlnantee its aeeuracy. Walston & Co Inc and I eOau.tlClIeenu. d.re' ctora or WN.aol

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