Viewing Month: May 1967

Tabell’s Market Letter – May 05, 1967

Tabell’s Market Letter – May 05, 1967

Tabell's Market Letter - May 05, 1967
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FILe- Walston &Co. —–Inc —– MUNICIPAL BONDS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exch.nge and Other Principal Stock and Commodity Exch.nges TABELL'S MARKET LETTER OFFICES COAST TO CO….ST AND OVERSEAS May 5, 1967 The stock market ushered in the month of May with some rather interesting gyration After declines on Monday and Tuesday, most market averages advanced on the latter three days of the week and the Dow finally breached the magiC 900 area, posting an intra-day high of 910.91 on Friday. Volume tended to increase On the advance and on Thursday reache well over 12 million shares. In Thursday's trading, 229 New York Stock Exchange issues reached new highs for the year – an all-time record for this particular statistic. In last week's letter we delivered ourselves of some rather optimistic thoughts in re gard to the current market outlook, and we would be less than candid if we did not combine them witha few precautionary notes-MostmarketupswingstendtObeginwith rather-dyna- , mic periods -. with breadth statistics which are extremely favorable, and almost all stocks share in the advance to a greater or lesser degree. Gradually, the advance loses some of its dynamism, and fewer and fewer stocks move ahead. There is currently some evi- dence that we are now proceeding into a more mature phase of the upswing in which the num- ber of advancing stocks will tend to be fewer and the risk in ill-conceived selections will be all the greater. One example may suffice. On every day last week the number of advancing stocks ex- ceeded those declining, but the plurality was quite small. For each day in the week there were some 600 plus advances and 500 plus declines. This is a favorable market environment but it is measurably less favorable than that which existed last Winter when days with 700 and 800 advances were not uncommon, and on a few occasions the number of advancing stocks was over 1000. In other words, we are entering 'ePich that old catch- word, selectivity, will become more and more imjgrta t. To this end, and to make room for recent r mmended List, we are removing a number of stocks. Some have moder,.MJ high jectives and the investor may wish to place orders somewhat above er, in the interests of main- tainingthelist.at e n .at We have tabulated below the p e of these issues since December 31, 1964, the base date for our Since that time versus t per showing their eo t Dow-Jones Industrial Average. There were 115 recommendations rna – i Of these recommendations, 92 have advanced and 23 declined. A c ce record of the list, as well as the current list itself, are available from y al Account Executive. Obviously, no implication is made that such results could be 0 d by purchase of issues in the Recommended List, or that sim- ilar results will be 0 ned by purchase in the future. Commissions are not included. Price 12/31/64 or Date Recom. Current Price /0 Change /0 Change DJIA same Time Period Amer. Bosch 187/8 4/5/65 423/4 128 1 Bell & Howell Clevite 47 4/7/66 40 7I 8 74314 47 58 15 -4 3 Denver Rio G. Disney (Walt) El Paso Nat. G Ill. Central Ind. McDermott, J. R. M. G. M. South. Railway Sundstrand 21318 45 1I 2 22 5/8 25314 adj. 24718 (adj.) 20 1/2 (adj. )(3/1/65) 575/8 10 (adj.) 195/8 99 3I 4 19 1I 8 53 62114 49 51 53112 8 119 15 108 149 140 11 437 3 3 3 3 3 3 3 AVERAGE 102 2 Being added to our list, effective today, are four issues, Scovill Manufacturing Co. and Seaboard Air Line R. R. in the Price Appreciation section, and Technicolor and Victor- een Instrument Co. in the Speculative Price Appreciation section. Investors may wish to use these as replacements for some of the issues mentioned above. They will be reviewed in sub- sequent issues of this letter. ANTHONY W. TABELL Dow-Jones Ind. 905.96 WALSTON & CO. INC. Dow-Jones Rails 235.87 AWTamb This market letter is publillhed for your convenience and information Rnd Is not an offer efomrpmloaytieoens mwaays hoabvtaeinaend InfrtoermestlIOiunrCof!r!!! pwurechbaeslieevaendtosebllethreeliable. but rweeferdroedntoot hgeuraerina.ntee to sell or a Us accurACy soliCitation Walston to buy Co.. any Inc .asencdurJiut.ieosftJJe.elsreau,.saed The inor

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Tabell’s Market Letter – May 12, 1967

Tabell’s Market Letter – May 12, 1967

Tabell's Market Letter - May 12, 1967
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Walston &Co, —–Inc —– MUNICIPAL BONOS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER May 12, 1967 SCHLUMBERGER, LTD. F /L Current Price Current Dividend Current Yield 56 3/4 1. 20 2. 2 A pipeline one foot in diameter stretching more than 550 times around the earth's equator could not contain all the oil consumed in 1966. Long Term Debt 12,390,000 Common Stock 7,595,958 shs. This is equal to some 29 million barrels daily. For 1967, this demand is expected to expand further, and by 1975, Free World usage is prOjected to al- Sales-1967-E Sales 1966 370,000,000 343,100,000 48 million barrels daily. Domesticdemand alone is expected to rise more than 50 during the next ten years. Earn. Per Sh. 1967-E 4.00 All this means that a great deal more oil Earn. Per Sh. 1966 3.71 than the many billions of barrels already in proven Mkt. Range 1966-67 61 – 40 reserves has to be explored for, discovered and brought into production. In turn, this implies more business for Schlumberger, Ltd., one of the leader in the oil service industry. The acknowledged leader in wire logging, a technique providing permanent records of indicated underground formations, necessary before and during drilling operations, Schlum- berger operates a fleet of almost 1500 vehicles including 500 truck-mounted laboratories and 200 lab units on offshore drilling platforms. Every requires the services of at least one such laboratory unit. 0 Despite the continued decline in U. S. drilling and reversed within the next five years, SLB's oil 'c 1 e ted to be arrested 'si ontinues to record peak volume in reflection of rapidly expanding n e search for black gold has moved offshore where drilling requirements ult than on land and where instru ments are subject to far greater i ents. -As a leading manufacturer of these sensitive instruments, to meet the demand by undergoing con- siderable expansion in the ele to' tely one-fifth of 1967 's estimated revenues of 370 millio ro electronics activities. Through an a e i e l' ion program, the company now produces such import- ant items as oscillo , corders, X -ray gauges, data loggers and general aviatio h a esigned to measure information. The company also manufac- tures computers, whic e designed entirely for the scientific market and do not attempt to serve the keenly com etitive business market. This year, SLB will deliver 30 computers, vs 15 deliveries in 1966. Another glamour area served is color-TV, where the Heath Division, largest domestic maker of electronic equipment in kit form, serves a growing market. Further diversification in the electronics area seems likely and the company's extremel strong financial position suggests tha t dilution of outstanding stock through new financing is not likely for the foreseeable future. Of the almost 7. 6 million common shares issued, ap- proximately 48 is controlled by members of the Schlumberger family, with almost one million more shares believed held by institutions. Earnings this year are expected to reach a newall-time high at 4.00 a share, or more, up from 3.71 last year, suggesting further liberalization in the current 1. 20 annual divi- dend rate. With-the computer businesS expected to'break into the black later this year, or early in 1968, the electronic division's contribution to overall profitability should rise rapid lyon a quarter-to-quarter basis throughout this year, indicating the possibility of an import ant gain in net income next year. From the technical viewpoint, Schlumberger has a price objective at 78, suggested by a base formed several years ago. Subsequent base-building suggests a price objective con- siderably higher once the initial goal has been reached. There is support at 50. Considering the favorable fundamental-and technical prospects, Schlumberger, Ltd. ,Cllready on our Recom mended List, again is recommended for purchase. – — Dow-Jones Ind. 890.03 Dow-Jones Rails 237.68 HARRY W. LAUBSCHER for ANTHONY W. TAB ELL WALSTON & CO. INC. AWTHWLamb Thle market IMter Ie published f(lT your convemence and Information I\od Is not an offer to sell or a sohcltation to buy any securities JIICUa&ed. The In formation Watl obtained from BOurces we believe to be reliable. but we do not guarantee its accuracy, Walston & Co.. Inc. and Its ofBcers, diredon or elUplo7ees may have an Interest in or pUl'chasc and sell the securities referred to herein, WN.SOl

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Tabell’s Market Letter – May 19, 1967

Tabell’s Market Letter – May 19, 1967

Tabell's Market Letter - May 19, 1967
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W- – -a-lIsntocn. -&– -C-o-. MUNICIPAL BONIlS UNDERWRITERS MUTUAL fUNDS Memba New York Stock Exchange and Other Principal Stock and Commodity Exchanges OfFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER May 19, 1967 The stock market continued to slide this week. Interrupted by a brief rally on Tuesday, the Dow-Jones Industrial Average resumed its downward course on the latter three days of the week and reached an intra-day low on Friday of 867.59 Since the now-historic October 7 low, the market has undergone no correction which could be described as intermediate-term in scope. There have been four previous down- swings of a short-range nature, the first at the end of November 1966, another in the closing weeks of December 1966, a third in February 1967, and another in March-April 1967. So far the present dip bears a good deal of similarity to these prior declines. The four ranged in length from 10 days to 12 days, and the present drop has carried for 8 days so far. The carried the Dow down by amounts ranging from 5.0 to-6. 2 , and the present dip has involved, to date, a 5. 2 decline. We are inclined to think that the present drop will, like the previous ones, be rather short and not too deep. There is no top on the Averages or on individual stocks which would indicate otherwise at this point. What will be important, however, is the extent and character of the next rally. All of the four previous downswings were followed by rallies in which most indicators of market breadth and' vitality led the Average on the upside and which promptly carried the market into new high ground. If such a rally is witnessed at this stage, a further extel1sion of the advance would be indicated. On the other hand, a weak rebound to the low 900 area, accompanied by poor breadth and volume, would indicate the possible for- mation of an intermediate-term top and an interruption of the advance more protracted than we have seen in the past 7 months. One of the ostensible reasons for the market dip . 1lY Federal Reserve Board Chairman William McChesney Martin earlier nmthe e k g the activities of some mutual funds and alleging that some of their some respects of the old pool operations of the spectre of the 1920's. He did so last in June t' es were reminiscent in rtin is fond of raiSing the detected disquieting simi- larities between ghost c e r t a ipnaasst pheacst s of The activity in the t in the 1928-29 period. Still by commeritators more recently, the new-issue market has been viewed with a great orgy which took pI tee break. compared with 1961, when the wild speculative at least in some degree to the 1962 stock market Now it should b rna ear that we have absolutely no quarrel with either Mr. Mar- tin or with those who ar calling 1961. As a matter of fact, we laud them. History is there to teach, and thi applies to economic history no less than to any other sort. However, as John K. Galbraith has indicated in his excellent history of the 1929 crash, the dangers of its repetition will be increased when men who know that things are going wrong (continue) to say that things are fundamentally sound. It seems to us that this is precisely not what is happening today. The very fact that so respected a public official as Mr. Martin takes the trouble to warn us of what he views as dangers in the economy, rather than assure us that all is going well, is a plus factor. The fact that the activity in today's over-the-counter. market causes us immediately to remember 1961 rather than conveniently blot it from our memory is, we think, reassuring. Moreover, we feel any comparison of the present with prior periods must take into account differences as well as similarities. There are many differences between today and the 1920's, the most important ones as far as the stock market is concerned revolving around the use of credit. The difference between the present and 1961 centers around the differences in quality between the stocks and financial institutions involved in the over-Ute,- counter activity and the fact that this activity has significantly failed, so far at least, to spread to the investment-grade segment of the stock list which, in 1961, it ultimately did. It is quite possible that we will see, before this upswing is over, another orgy of public speculation which will inevitably be followed by public disillusionment. We think, at the moment, however, it is comforting that respected voices in the financial community are continually being raised to remind us, as Bernard Baruch recommended we be reminded at such times, that two and two make four. Dow-Jones Ind. 874.55 ANTHONY W. TABELL Dow-Jones Rails 237.79 WALSTON & CO., INC. 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Tabell’s Market Letter – May 26, 1967

Tabell’s Market Letter – May 26, 1967

Tabell's Market Letter - May 26, 1967
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W—a-l-sItnocn.&— C–o-. MUNICIPAL BONOS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges TABEll'S MARKET lETTER OFFICES COAST TO COAST AND OVERSEAS F I L E. May 26, 1967 The stock market reversed its May decline, at least temporarily, with a resounding advance On Thursday which had the Dow-Jones Industrials up as much as 10 points during the day before profit-taking set in and limited the- advance to some 8.29 points. The profit-taking continued on Friday with slightly softer prices prevailing. One of the interesting facets of the decline was the divergent action of the Rails which persistently trended upward for the two weeks the Industrials were sliding and which posted a new high for the year on Thursday. – At rea-chedterritory, and short-term buying evidence was accordingly interpreted with the Thursday rebound. Last week we said, What will be important, however, is the extent and character of the next rally. .. If (a strong) rally is witnessed at this stage, a further extension of the advance .would be indicated. On the other hand, a weak rebound to the low 900 area, accompanied by poor breadth and volume, would indicate the possible formation of an i-ntermediate-term top and an interruption of the advance more protracted than we have seen in the past 7 months. Last week's market action has, confirmed this thinking. 1- Most market upswings can be divided into two stages which may be called the selective and non-selective phases. The non-selective phase comes first, directly after major bottom is reached, and it is characterized by the fact that almost all stocks advance or at least hold steady. This phase is followed by a slctive phase in which the popular market Averages and a great many individual stoc 0 i eo advance sharply but in which a large number of issues move t0 ailing market trend The selectivity, of course, increases as the i pr ed. It is extremely difficult to , but one attempt may be made by reference to the daily and weekly ss on highs and new lows for the mar- -ket year.-These–stati-stics W1t – First of all, there is an abrupt measuring period changesto the current year from the previou the inclusion of preferred stocks tends to distort the e' res have some usefulness. We can . ective phase of an advance as a period in which new lows are practically non-e t n enerally well below 100 on a weekly basis. New highs mean- while remain at a high' e often posting new peaks. The end of this phase usually takes place the first time move above new highs. The subsequent selective phase is characterized by a general prevalence of new highs, but new lows increase and often move above new highs on intermediate-term downswings. NON-SELECTIVE PHASE Length in D.J.LA. Start Oct. 53 End Months Mar. 55 18 at end 420 Jan. 58 Dec. 60 Oct. 62 May 59 June 61 Aug. 63 7 7 11 645 680 730 Jan. 67 5 915 to date SELECTIVE PHASE Subsequent Number of D.J.LA. market top months later at tOE July 57 28 523 Jan. 60 8 688 Nov. 61 5 741 Feb. 66 30 1000 Adv. 25 7 9 3-7 The table above documents the selective and non-selective phases of each ad- vance since 1953. As can be seen, the length of each phase has varied widely. However,- it can be noted that the selective phase generally continues for a lengthy period time after the ending of the earlier phase and often produces a worthwhile At the moment. there is only the most preliminary indication that the non-selecttve phase of the advance 1S over. New highs which reached a peak of 476 two weeks ago have declined but the number of new lows being reached has remained at an extremely low level. The flgures, therefore, seem to suggest a continued good market climate. Dow-Jones Ind. 870.32 ANTHONY W. TABELL Dow-Jones Rails 247 33 AWTsb WAL.STON & C. O., INC. Tfohrims amtiaornkewt alsettoebrta'liJnepdubflrJoahmedsotourrcyesouwr ecobnevlieenvieentcoe b.aendrfInIiBfabnlen. abtluotn wfetnddoIS nnoott gaunaraonRteere to it s sealcl cuorracl iy.s oWl i cai tlsattoi onn t & o buy Co., any Inc. asnecdurIitatieosffdic1e8rCaW, lsdeidr.ecTtbores inor emplOYee8 may have an interest In or pUFchlL8e Bnd sell the securities referred to herein

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