Viewing Month: July 1967

Tabell’s Market Letter – July 07, 1967

Tabell’s Market Letter – July 07, 1967

Tabell's Market Letter - July 07, 1967
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TABELL'S MARKET W- – – -a- 1lston-&- -C-o-. MUNICIPAL BONOS UNDERWRITERS MUTUAL FUNDS New York Stock Exchange and Other Principal Stock and Commodity Exchanges LETTER OFFICES COAST TO COAST AND OVERSEAS July 7, 1967 Some short-term improvement brightened the stock market scene in the late trading of last week. It remains to be seen whether this improvement can carryover so as to better the clouded intermediate-term picture mentioned by this letter sorre two weeks ago. To recapitulate, the situation at the moment, in terms of the Dow-Jones Industrials, is as follows After reaching a low at 836. 92 on the breakout of the Arab- Israeli war, the market rallied sharply as the success of the Israeli effort became apparent, and reached a high on June 15th of 892.80. At this stage, most of our shorter-term indicators became overbought, indicating that a short-term'peak'had beenreached.-Thissort of action was mildly disquieting as it constituted the first time since January that any short-term rally had failed to carry the Dow ouIto a new high. Subsequently, a reactionary trend set in, bring- ing the Dow to an intra-day bottom on Monday of this week at 853.21. A sharp rise took place in Wednesday's post-holiday trading, and after a consolidation on Thursday, Friday's advance to an intra-day peak of 874.42 was accompanied by impressive volume of 11.,540,000 shares. Equally impressive was the action of the Rail Average which continued its almost uninterrupted uptrend, posting a new rally high at 261. 91. Most persuasive, however, was the action of our daily breadth index which, on Friday, moved above its June high with the averages still well below their pre- Israeli crisis peaks. This sort of action, 1. e. , breadth moving into new high territory ahead of the averages, is highly unusual and generally indi- cative of a very strong market. However, while the short-term picture has the intermediate- term picture remains in doubt. Essentially, the market y weJ as having held in a trading range since critical poirytz at tern n , on the downside, the 840-835 level which has now halted three 0 lnce February; and on the upside, first, the June high of 892.80, and th high of 915.871 Pene- tration two latter points woul.d October is llkely to assume the t ,- 1. e., a move to' new high terntory substantially above the February 196 e the 840-835 low to fail to hold, a rather protracted interruption of downside implications b V certainly be indicated, with possible It is a tim w i , e great deal is dependent on a rather uncertain funda- mental economic si 1. es when the economic outlook is clear, the market generally tends to dis At a time when it is clouded, such as the present, the mark s highly likely to move in response to economic news. Thus, the clearly bright economiC outlook for 1966 coincided with a major top early in that year, and the clearly questionable economic outlook for 1967 coincided with a major stock market bottom. At the moment, by contrast, while a great many economic observers are forecast- ing a dramatic business recovery in the latter part of 1967, an equally responsible body of opinion looks for, at best, only moderate improvement. The importance of economics as the deteqnining factor is underscored by an exami- nation of the r'3lative position of individual Q'he one major unexploited area in towy', market situation embraces the cyclical and semi-cyclical blue-chip stocks which require the impetus of an expanding economy in order to show good earnings growth. Were evidence of economic expansion to be immediately forthcoming, it would seem likely that these issues could provide the sort of leadership which could cause a further extension of the advance The failure of an upswing to appear in the economy, could well cause a rather dull market in which individual issues might do well, but the action of the popular averages would likely be on the heavy side. Dow-Jones Ind. 869.05 Dow-Jones Rails 260.75 ANTHONY W. TABELL WALSTON & CO. INC. AWTamb Thill market letter (s published for )'our conve-nienee and mformatlon Rnd Is not Rn formatJon enJDloYeelil W8.! may obtained have an from BOuret'!! Interest in or pwupechbaeslieevaendtosclb1e uhable, but the secUrities we do not referred to 81IRrantee herein. to Bell or II. soliCitation to buy lts .accurncy. Walston & Co.. !lny Inc. seeUTltH1I U1IICU8sed, The and Its offlcers. dlrectors In- or WNSOI

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Tabell’s Market Letter – July 14, 1967

Tabell’s Market Letter – July 14, 1967

Tabell's Market Letter - July 14, 1967
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Walston & Co. Inc MUNICIPAL 8ON1S 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 July 14, 1967 The silly season is with us again — has been with us for some time in fact — and it is, we suppose, time that due note was taken of the fact in this letter. We refer, of course to the tumultuous activity and wide gyrations in a variety of what have come to be known as swinging stocks — most of them on the ASE and Over-the-Counter, and engaged in wild, improbable businesses that very few people understand. We have seen it all before, of course. One or'the stock market's most dependable tendencies is to repeat the same old show with a new.cast,oLcharacters ….The fact was noted by the writer's late father who once said in this letter, It is like watching the Late Late Show on TV. You don't recognize the show immediately, but slowly the characters and plot become familiar and you realize that this is where you came in twenty or thirty years ago. The same thing happens in the stock market. The people and the stock change, but the plot remains the same. The only difference in this case is that instead of our having to wait twenty years for the show to be repeated, the rerun is taking place after only five years have elapsed. Substitute computer-leasing for bowling, and optics for transistors and, 10 and behold, the merry days of the Spring of 1961 are with us again. And yet, there is a difference. One difference, we think, lies in the awareness of the unreality of it all. For example, if this letter is the first notice the investor has seen that speculation is taking place, it is safe to presume that he has been on a desert island for the past six months. Each rise in volume on the upmove in an over- the-counter stock, is accompanied by universallamentati s, and head-shakings in almost every segment of the financial press. ThfYIDoffl'a d ' re of the problem is shown by the recent rash of 100 margin 8 e the American Stock – We suspect, moreover, that, mo of the game on the part of the player . high-stakes poker game is a e I'l here is an awareness of the nature tanto The man who sits do;;vn to a may lose a substantial sum of money, players are not awar 0 t . e e taking and become subject to the mass illusion that the stock mar f I! s participants the God-given opportunity to become rich without effort. i so euphoria has not, it seems to us, occurred. The most imp t difference between tOday and 1961, however, is the fact that the investor has the opportunity to opt out of the game without the prospect of being affected seriously. To carry the poker game analogy a bit further, I am perfectly willing to have my neighbors winning and losing money in a gambling orgy next door for so long as the noise does not disturb my sleep. In 1961, almost all stocks had become subject, in greater or lesser degree, to speculative over-valuation. We all remember the fact that five years ago assorted electronic stocks were selling at astronomical prices. We have tended to forget the fact that General Foods sold for 40 times earnipg s and Minnesota Mining sold for 65 times earnings. It was very hard to take refuge in quality, and when 1961 came to its inevitable end in 1962, the gOOd, by and large, collapsed along with the bad. By contrast, today, quality is avaIlable and available cheaply The–Central character istic of today's speculative activity is its complete failure to spread to large numbers of medium to better-grade stocks which, at current levels, represent sound value by any rational historical standard. It is, we think, possible today to try to do a rational job of money management without too much worry of being affected by the fallout which will take place when the speculative bubble bursts. Dow-Jones Ind. 882.05 Dow-Jones Rails 267.27 ANTHONY W. TABELL WALSTON & CO. INC. AWT;amb Thll! market letter Is published for your convemence and infonnatlon and is not an offer to sellar a sohcltatlon to buy any seeurittee dUlcusaed The formatJon waa obtained from sources we believe to be reliable. but we do not gUarantee Its accuracy, Wailiton & Co., Iru. and Its ofBeera or employees may have an Intereet in or pUl'cbase and sell the seeurltieB referred to berl!m

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Tabell’s Market Letter – July 21, 1967

Tabell’s Market Letter – July 21, 1967

Tabell's Market Letter - July 21, 1967
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W- alstIoncn. S-Co. MUNICIPAL BONDS UNDERWRITRS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchenge. TABELL'S MARKET LETTER OFFIC&S COAST TO COAST AND ovnSEAS July 21, 1967 In our letter of three weeks ago we made, among others, two points regarding the in- termediate-term market picture. We said – The critical pOints at the moment are, on the downside, the 840-835 level which has now halted three short-term reactions since February; and on the upside, first, the June high of 892.80, and second, the May 9th high of 915.87. We further noted – The one major unexploited area in today's market situation embraces the cyclical and semi-cyclical blue-chip stocks which require the impetus of an expanding economy in order to show good earnings growth. Were evidence of economic expansion to be immediately forthcoming, it would seem likely that these issues could provide the sort of 'leadership'wliich-could cause-a-furthe-r 'the 'ad-vanc-e;— In this light, last week's market action was interesting. On Tuesday, Wednesday, Thursday and Friday, the Dow advanced almost ,36 points to an intra -day peak of 918. 69, thus exceeding the May high. Volume on the advance was heavy. Even more interesting was the fact that the Dow-type stocks were the market leaders, as evidenced by the fact that there was only a slight plurality of advances over declines – although the Dow was up sharply. Although we think this augurs well for the market, advances brought many of our shorter-term indicators into overbought territory and some consolidation would appear necessary. On any weakness, additions to holdings in selected stocks would appear advisable and we would add the following issues to our Recommended List if the buying levels mentibne below are reached. Other issues of interest also are commented upon. Allied Supermarkets 16, Amerada 80, American Machine & Fomdry 21, Anaconda 46, Diners Club 34, Pennsylvania Railroad 64, and Mc or tion 30. AMERICAN TEL & TEL – Mother Bell has had a u e 0 late due to the re- cently issued FCC report. However, it is believed . er-reacted to the selling pressure, much of which has been emotional 1 xure. is in the ,Quality & Lon Term Growth section of our Recommended lsturb holdings in this cate- . .! o' on continues to be that this stock . is forming a base in the 50-60 area long-term growth accounts to rc GOODYEAR TIRE & R W ur decline wOuld make it attractive for – re'\rYd rubber stocks in general have been poor mar ket performers this y r b ed labor conditions. The last to be struck, Good- year, has not yet ith the union. However, several other industry leader have signed new cont t and' s only a matter of time before Goodyear does the same. Thus, it remains on our Q y list and appears attractive for current purchase. SCHLUMBERG – SLB has had a dramatic rise since our recent writeup and althou it has reached the initial price objective at 74, it has potential for a further goal around 110. Until such time as deterioration shows up, we would continue to hold and buy on weakness. ' STEELS – This group has shown definite improvement of late, reflecting hopes that the low has been seen in auto sales and that a further rise in that industry would lead to a pickup in steel production. With this group likely to show further improvement, stocks on our list like Allegheny Ludlum, Copperweld Steel and Sharon Steel continue to warrant consider- ation. Republic Steel, is also considered attractive, and may be added to our list shortly. TOBACCOS – In like manner, current enthusiasm for tobacco stocks pOints up the underlying value in Reynolds Tobacco, also on our list. RJR has a price objective in the 74-plus area and.good support in – — – . — .- – — – . A new issue of our Recommended List will be out next week and available from your Walston & Co. Inc. Account Executive. Several changes have been made in this list since the last issue, especially relative to upside price objectives and support levels. Dow-Jones Ind. 909.56 Dow-Jones Rails 272. 99 HARRY W. LAUBSCHER for ANTHONY W. TABELL WALSTON & CO. INC. AWTHWLamb Thill market letter 1. published for your convenience and Information llnd ia not an offer formation employees W&!I may obt&l.ned from sources have an inter8t in or we believe to be rehable, but Bnd sell the lIecnritlea rweeferdroedntoot tuArantee herein. to eell or a soliCitation to buy Us accuracy. Walston & Co an,. Ine. eec\Iriti and ite eo.ffdilclelCr.u. udedlr.t eTthoen In-. 01' .. ,,-

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Tabell’s Market Letter – July 24, 1967

Tabell’s Market Letter – July 24, 1967

Tabell's Market Letter - July 24, 1967
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Walston &Co. /LE MUNICIPAL BONDS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFF-ICES COA5r TO COAST AND OVERSEAS TABELL'S RECOMMENDED LIST July 24, 1967 !hi.s edition of our Recommended List gives long-term technical upside objectives, plus mdlCated support levels or shorter-term downside objectives. In all cases, we believe the st.ock.would be attractive for purchase at the levels given in the support column. An astensk in the Upside Oqjective column indicates that either the objective is unclear, or that the stock has not yet broken out of its base formation. -. Close 7/21/67 Alum.Co.Amer. 84 5/8 Amer. Can 58 3/8 Amer T & T 53 Colgate Palm. 33 7/8 Columbia Broad.59 3/8 Cont'l Ins. 35 Cont'lOil 67 1/4 Goodyear Tire 48 Qual- B B A AA A A TERM GROWTH Upside SupObj port 110-190 80-75 77 55-50 41-52 52-50 32-30 84 58 108 80 91-130 62-58 82 44-42 Close 7/21/67 Gulf Oil 69 1/2 Int. Paper 29 1/2 Nat' Cash 102 Parke Davis 27 5/8 Phillips Pete 66 1/8 Reynolds Tob.42 1/2 Royal Dutch 36 7/8 Quality A AA A A A A Upside Obj. 78-92 180 120 74-124 86 Support 65-6 28-2 9026 60-56 40-38 32 PRICE APPREClATION Close Qual- Upside Sup- 7/21/67 Ob. port Adams- Millis 563/8 B '.' 52 Air.Reduction -.121L4 ..JD39 Allegheny Lud. 78 A- 102 56-54 Amer. Potash 47 1/2 B 48-60 46-42 Ampex 36 B- 55-74 34-30 Anchor Hock. 47 114 A 68-90 47-42 Cenco Instrum. 55 3/8 B 68 48-44 Cinn. Milling 67 3/4 B 75 60 Commonw'th Oil 26 3/8 46 24-22 Comsat 71 1/8 104 60-55 Copperweld Steel 28 1/4 B 54 25 Dresser Ind. 39 1/8 B 57 35 Eagle Picher 38 3/4 B 60 32-28 Eaton Yale T. 32 B 49 28-25 Ex-Cell-O 61 1/2 A 90 54-50 Gen'l Dynamics 75 92 66-63 Gillette 58 1/2 A- 80 56-54 Gr. North. Paper 48 B 90 40-36 Kelsey-Hayes 41 1/2 B 54 37-35 SPECULATIVE PRICE Close Qual- 7/21/67 ity Koppers Co 42 1/2 B Mead Johnson Upside Obj. 62 92 Support 35 31-28 Mesabi Trust 13 1 8 – Olin Mathieson 705/8 B Revlon 63 1/2 A- Reynolds Met, 53 B Riegel Paper 217/8 B Robt. Cont.r ols 331/4B Schlumberger 69 3/4 A Scovill Mfg. 43 B Seaboard C.L. 66 7/8 B Sharon Steel 33 7/8 B- Shell Oil 67 3/8 A Signode Corp 38 7/8 A- Tektronix 44 Union Camp 39 1/4 B United Fruit 48 B Wallace & Tier. 481/4- A- 80-130 100 94 34 58 74-110 88 84 70 75-120 50 66 92 70 63 12 65-60 55 48-46 17 32-28 68-64 38-34 62-57 30 66- 36-33 42-40 38-36 45-42 45 — —- ——-…- – —–.– APPREClA TION Camp. Chib. Chris-Craft Home Oil A Microwave National Can Pacific Pete. Close 7/21/67 9 1/2 35 1/8 22 7/8 35 37 3/4 16 1/4 Qual- B B B B B Upside SupObj port 16 8-6 46-68 32-27 34 19-16 40-72 32-27 52 32-27 30 14-12 Close Qual- 7/21/67 ity Syntex 82 Technicolor 32 1/8 B UMC Ind. 23 3/4 B Varian Assoc.37 1/2 B Victoreen 14 3/8 C Vulcan Mat. 22 7/8 B Upside Obj. 150 58 58 58-84 20-38 37 Support 80-70 27-24 20-17 36-30 14-12 20-18 Anthony W Tabell Walston & Co. Inc, This BuJlelln IS pubhshed lor )our .w,\ ,nfOlmallOn 110,1 If, not ,m off,r to ReI! or Il to 1m 'curlL1t'S rll'l'..tl;'Wd. Th (,CarnRtion Obuunl'(i from we 'Ill V\! to h. Ich'llJle. but WL tlo not gU-ll,mlec It,; -lCCUI,l!'V W.1b,ton &, Co. Ire and It., officers, (lLlcctors or CTYLpioecs tray have nil lIIlcrest In 01 ,Inti …ell th\ … rcicllc,j to helem. II.–S 16

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Tabell’s Market Letter – July 28, 1967

Tabell’s Market Letter – July 28, 1967

Tabell's Market Letter - July 28, 1967
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W—a-lrsntocn.-&-C–o-. TADELL'S MUNICIPAL BONOS UNDERWRITERS MUtuAL FUNDS Members New York Stock Exchonge and Other Principa' Stock and Commodity Exchange. MARKET LETTER' OFFICES COA,ST TO COAST AND OVERSEAS July 28, 1967 As far as the general market is concerned, recent action seems somewhat inconclu- sive Th week of July 17-21 featured a sharp rally in which most of the popular averages attaIned hIghs around or slightly above their May, pre-Near-East-crisis peaks. The rally was led by Dow-type stocks and, while the averages were strong, declines tended to exceed advances. By the end of the week, most of our shorter-term indicators indicated an over- bought condition. A rather sharp decline on Monday ensued, and the rest of the week saw action directly opposite to that which had occurred in the previous week — the averages moved sideways while advances tended to exceed declines and impressive numbers of new highs in individual issues were – — — 1- We are dubious about the prospects for an immediate continuation of the overall market advance. The overbought condition of a week ago has not yet been corrected, and we feel that a moderate downswing, or at least a consolidation, should occur before another attempt to breach the 1967 highs, – this time, perhaps, decisively, takes place. While the immediate future is a bit clouded, we do feel, however, that a distinct change in the market's character has taken place. A great many new stocks are showing im- proving techr.ical action, while a number of former leaders are exhibiting market of technical deterioration. We are, therefore, commencing this week a review of major indus- trial groups with short comments on group action and notes on the technical patterns of typi- cal individual issues within each group. This will be continued in subsequent issues of this letter until all groups have been reviewed. Issues marked with an asterisk () are on our Recommended List. AGRICULTURAL EQUIPMENT – Group relative st e 0 s poor and there is little prospect for immediate price improvement. appear available elsewhere. VJ, ap lation op.portunities AEROSPACE – Long-term group upward and at a faster pace tile dIPS can be used for purchase. mics 92, Grumman 70, Loc ee – – AIRLINES – This roup, r t '. we. not,ed. Any further 1 e es are Boemg 175, General Dyna- las 70. e ket leaders over the past two years, has shown distinct signs OD d not too far below c e I cent weeks. Downside objectives in most cases are I e think relative action may continue to deteriorate and that other areas offer 0 e a tion. ALUMINUM – R a of this letter are aware that we have been favorably inclined toward this group, alt gh we must admit some disappointment over the recent action. None theless, major issues are close to support levels and we would continue to hold and buy on minor dips in long-term investment accounts. AUTOMOBILES – The graup trend is distinctly upward, but action relative to. the overall market has only been average. We can envision trading rallies, but would prefer to use strength to switch aut of these stacks in longer-term accounts. AUTO EQUIPMENT – In general, these stocks laak more attractive than the automo- bile companies. We continue to favor Eatan, Yale & Towne, ESB, Inc., and Kelsey-Hayes . BUILDING MATERIALS – We feel recent strength in this group has been premature and more work will probably be required around current levels. Other issues offer more attraction for long-term capital gains, o.ur opiniS'!!,. CHEMICALS – Price action within the group is diverse. We feel that industrial gas companies, such as Air Reduction , Air Praducts and Chemetron are attractive as are special situations like' Olin Mathieson and Hercules, Inc. Mast of the majar companies, however, will prabably require mare time to complete their bases, and switches on strength should be considered. COAL – Largely unsung, this group has been one of the relative strength leaders over the past year. Upside objectives are higher in most cases, and we would be inclined to hold positions. COSMETICS – Another group showing superior relative strength action. Lanvin-Charle of the Ritz and Rayette-Faberge are approaching upside objectives, but Revlon still has a higher indication. Avon Products remains in its consistent long-term uptrend. Dow-Jones Ind. – 901. 53 Dow-Jones Rails – 272.38 ANTHONY W. TABELL WALS;roN & CO. INC. 1I'D,.1nfTobrlma amtioanrkmw. ale., tMtoebrvtaeIl.naenpduIbfnrlltolemhre.edn.ofIuonrreoYersOpUwur peccohbnaevalieeenvaieenndtcoeRblaientdhreeIlni8afeboelreum,riabttiueiostnrweRefenlddToeIsdnntooot thIreaUrDeIilrnoa.fnfetere tiots sell 01' R solicitation !Lccur.NlY. Waleton t 4 oCbou.,y Rny Inc. asnecduritistieosffdiclsecrus.eadeidr.ecTthore. In or

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