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Tabell’s Market Letter – January 03, 1968

Tabell’s Market Letter – January 03, 1968

Tabell's Market Letter - January 03, 1968 page 1
Tabell's Market Letter - January 03, 1968 page 2
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, W—-a–l-s-tloncn–&–C–o–. j Members New York Stock Exchange and Other Principal Stock and Commodity Exchang8 OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABELL'S RECOMMENDED LIST January 3, 1968 This edition of our Recommended List tallies the price performance of all recommended 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 1967. 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 1965 and 1966 is averaged at the bottom of eachlist.- The first two columns show the recommendation date and price. In cases where the recommendation took place before December 31, 1964, this is used as a base date. The third column shows the price on December 29, 1967, or on the date removed if the stock is not now on the list. The fourth column shows the percentage change, and tIE 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 rise of 8.2/0 vs. an average rise of 6.4/0 in the Dow-Jene Industrials. The stocks in the Price Appreciation section show an average gain of 36/0 vs. a 3/0 gain in the Dow, and in the Speculative Price Appreciation section, the average gain is 62/0 vs. a 3.1/0 gain 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-as of date Date Recom- Recom. mended Alum. Co.Amer. 5/3/65 71 7/8 Amerada 8/16/67 80 Amer. Tel & Tel 9/7/65 67 Borden Co 9/8/67 38 1/2 Caterpillar Tr 9/8/67 47 Colgate Palm. 3/1'7/67 29 3/4 Columbia Broad. 11/18/66 57 Cont'l Ins. Cont'l Oil Del Monte Fed. Dept. St. 3/17/67 79 3/8 3/17/67 68 3/4 9/8/67 34 3/4 11/17/67 697/8 Goodyear Tire Gulf Oil Intern'l Paper Kellogg Lorillard Nat'l Cash Reg. Parke Davis Phillips Pete Radio Corp. Reynolds Tob. 6/17/66 51 12/31/64 58 1/2 6/29/65 31 9/8/67 38 5/8 9/8/67 51 1/2 5/21/65 88 3/8 4/22/66 36 1/2 3/17/67 55 9/8/67 56 5/8 12/31/64387/8 Royal Dutch 12/31/64453/S American Can 12/31/64 43 Stocks removed in 1966-65 (filve) AVERAGE & LONG TERM Price-12/29/67 or date /0 Hemoved Change 80 1/2 11 80 5/8 50 3/8 – 24 35 1/8 43 3/8 44 3/8 54 1/2 80 1/4 74 3/8 35 1/2 75 54 3/8 76 3/8 30 3/4 42 1/2 48 133 26 1/2 67 53 3/8 44 1/4 47 5/8 55 1/2 -9 -7 50 -4 1 8 2 7 6 30 10 -7 50 – 27 21 -5 13 -5 29 4. 50/0 8.2 GROWTH 'Change DJlA same — Time Current Period Comment – 2 Buy for 110 – 190. – 1 Buy for 130. -.3 Hold – .3 Buy on dips. -.3 Buy on dips. 4 Hold for 52-62. 12 Hold 4 Buy on dips. Obj. 108. 4 Buy on dips. Obj. 91-130. -.3 Buy on dips. Obj. 70. 5 Buy for 90 – 124. 1 Buy for 82. 3 Hold for 90. 7 Buy on dips. 42 indo 90. 3 Buy for 82. -. 3 Support 44-42. – 2 Hold for 175. – 5 Hold. 4 Buy-Dips. Obj. 110-124. -. 3 Buy for 98. 3 Buy on dips. 50 120. 3 Buy for 90. 6 Removed from list 6. 4 ThiS Bulletln is publishtd for your convcnitnct' Rnd mformatlon Rnd 16 not an offer to sell or 1\ sohcltl\tlOn to buy 1\1lY secunties diSCUSSed. The Information was obtluned from sources we bd ….vt' to iN. lelwblc. but WI! do not gllaTllntt'(. 11.5 RI'CUM\ry. Walston t.. Co. Inc. I\nd Its officers. directors or emplOYee!! Illay have an mterelll III or purchase I\nd !Sell the st!cUntles rl'ferrlt!. to herCIn Wtl-916 . – ' , Walston &Co. Inc Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OVER HIO OFFICES COAST TO COAST AND OVERSEAS TABELl'S RECOMMENDED LIST PRICE APPRECIATION Adams Millis Air Reduction Allegheny Lud. Amer. Bakeries Amer. Mach. F. Amer. Potash Price as of date Date RecomRecom. mended 3 h 7 /67 22 4/22/66 363/8 11/18/66 56 9/8/67 263/4 9/8/67 227/8 6/29/65 39 Price 12/29/67 or date Removed 62 778 345/8 703/4 241/8 207/8 50 Ampex Corp. Anaconda Anchor HOck. 6/30/67 361/8 9/8/67 493/8 11/18/66 53 35 5/8 47 3/8 44 Bulova Watch Burlington Ind. Cincin. Milling Commonw'thal 9/8/67 11/17/67 11/18/66 3/17/67 30 41 1/8 31 263/8 293/4 39 57 1/4 225/8 Comsat 3/10/67 61 1/4 Copperweld StEel. 12/31/64 26 3/8 Dentists Supply 10/27/67 43 491/2 22 5/8 45 1/2 Diners Club 9/8/67 401/8 481/4 Dresser Ind. 3/17/67 32 1/2 38 1/8 Eagle Picher 2/3/67 331/4 403/8 Eaton Yale 12/31/64 21 5/8 33 Ex-Cell-O — -4/19/66-22–1/2-371/4- Gen'l Dynamics 12/31/64 35 661/4 Gillette Co. 11/15/65 37 62 1/4 Gt. North. Paper 3/17/67 37 3/4 52 Kelsey-Hayes Koppers Co McNeil Corp. Mead Johnson 11/18/66 12/31/64 9/8/6'1 3/17/67 29 27 1/2 345/8 291/2 42 1/4 36 41 1/2 363/4 Medusa Port.C 11/17/67 Mesabi Trusts 12/31/64 Glin Mathieson 4/22/66 Republic Steel 9/8/67 Revlon 5/3/65 Reynolds Metals 12/31/64 Riegel Paper 12/31/64 Robt. Controls 3/15/66 Schlumberger 12/31/64 Scovill Mfg. 5/5/67 Seaboard Coast L.5/5/67 Sharon Steel 7/8/66 Shell Oil 12/31/64 Signode Corp 12/31/64 Tektronix, Inc. 3/17/67 Union Camp 3/23/66 United Fruit 12/31/64 Vornado 9/8/67 Wallace & Tier. 8/2/65 283/8 147/8 63 493/4 451/8 34 7/8 21 3/8 34 47 3/8 42 555/8 347/8 59 1/2 27 1/4 401/8 47 17 5/8 25 1/2 32 291/2 11 7/8 72 1/4 435/8 841/8 50 1/4 HI 3/8 343/4 71 1/8 401/8 481/4 36 66 351/4 485/8 38 5/8 60 321/4 38 3/8 Bell & Howelr 417/66 47 Cenco Instrum. 1/29/65 293/4 743/.4 525/8 Clevite Corp. 12/31/64 407/8 47 Change 195 -5 26 – 10 -9 28 -2 -4 – 17 -1 -5 85 – 15 – 19 – 14 6 20 18 21 52 88 67 37 45 30 17 24 4 – 20 14 – 12 86 43 -9 2 50 -5 3 11 -I- 29 21 – 18 241 26 -I- 20 58 -I- 77 -I- 15 Change DJIA same Time Current Period Comment 4 Hold. – 5 Buy for 72. Buy-Dips. Obj. 110. -.3 Buy for 44-65. -. 3 Buy. 7 Hold 5 Buy-Dips. Obj. 74. -.3 Buy-Dips. Obj. 72-83. 12 Hold. Support at 40. – .3 Buy-Dips. Obj. 60. 5 Buy for 76. 12 Hold. 4 Buy-Dips. Obj. 47. 6.5 Buy-Dips. Support 42 3 Buy on Dips. 2 Buy for 64. -.3 Buy. 4 Buy for 57. 5.5 Buy-Dips. Obj. 60. 3 Buy-Dips. Obj. 47. 80. 3 Buy on Dips. – 5 Hold for 80. 4 Buy-Dips. Obj. 90. 12 Hold. 3 Buy-Dips. Obj. 62. -.3 Buy-Dips. Obj. 60 . 4 Merged/w.BrlSol Mye 5 Buy-Dips. Obj. 67. 3 Hold for Income. – 5 Buy-Dips. Obj. 130. -.3 Buy-Dips. 53 108. – 1. 8 Hold for 100 . 3 Buy for 90. -I- 3 Hold. – 2. 5 Buy-Dips. Obj. 58. 3 Hold for 110. – Hold. ,. – Buy for 94. 1 Buy for 70. 3 Buy for 122. -I- 3 Hold. Support at 31. 4 Hold. Support at 45-4 – 2.5 Buy-Dips.Obj. 90. -I- 3 Hold for 70. -.3 Buy for 45. 2. 6 Hold. Support at 37-35. – 4 List tl/.tl/lj( 3 Removed/List 3 Removed/List 5/5/67 This Bulletin 18 published for you! convenil'nee And inCormation alld IS not I\n offer to seU or II. solicltntlOn to buy any securities dlscuued. The Information was obtllmed from sources we bellevO! to bl. relmble. but we do not flIartlnt(.'(' Its nceurney Walston &. Co .. Ine and Itll officers. du-eetol8 or employees rney have an Interest III or Jlurchase and hell the referred to herein Walston &Co. Members New York Stock Exchange , and Other Principal Stock and Commodity Exchanges OVER lOll OFFICES COAST TO COAST AND OVERSEAS TABELL'S RECOMMENDED LIST Date Recom, Price as of date Recommended Price 12/29/67 or date Removed Denver Rio G. 12/31/64 21 3/8 Disney, Walt 12/31/64 45 1/2 EI Paso Natl.G 12/31/64 22 5/S Ill. Cent. Ind. 12/31/64 25 3/4 MDermott, J.R 12/31/64 24 7/8 Metro-Gold.M. 3/1/65 20 1/2 Southern Rwy 12/31/64 57 3/8 Sundstrand 12/31/64 10 Stocks removed in 1966-65 (thirty) 19 5/S 99 3/4 19 l/S 53 62 1/4 49 51 53 1/2 AVERAGE 0/; Change -S 119 – 15 108 149 140 -11 437 29 36 Change DJIA same Time Period Current Comment 3 Removed/ List 5/5/6 3 Removed/List 5/5/6' 3 Removed/List – 3 Removed/List 5/5/6 3 Removed/List'5/5;;7 .6 Removed/ List 5/5/67 3 Removed/List 3 Removed/List 5/5/67 3 SPECULATIVE PRICE APPRECIATION Allied Sup'mkts 9/8/67 20 Campbell Chib. 12/31/64 3 13/16 Chris-Craft 3/15/66 23 Gibraltar Fin. 11/17/67 22 1/2 Home Oil A 11/18/66 21 Microwave 12/31/64 9 5/8 National Can 12/31/64 17 Pacific Pete- 12/Sf!64- 10 374 Penn. R. R. 9/8/67 67 Syntex 3/17/67 93 1/8 Technicolor 5/5/67 23 1/2 UMC Ind. 12/31/64 14 3/8 Varian Assoc. 12/31/64 13 Victoreen 5/5/67 13 1/2 Vulcan Mat. 12/31/64 17 3/8 Amer. Bosch 4/5/65 IS 7/8 Stocks removed in 1966- 65 (sixteen) AVERAGE 19 1/8 7 3/.16 42 20 1/4 24 3/4 43 5/8 35 1/8 17 178 62 1/8 73 1/2 26 1/4 20 l/S 31 1/2 14 3/8 18 7/S 42 3/4 -4 93 S2 – 10 18 352 106 59 -7 – 21 12 41 142 6 S 128 84 62 -.3 3 – 2. 5 5 12 3 3 3 – .3 4 3 3 3 1 3.1 In registration, Buy on Dips. Buy-Dips.Obj.46-68 Buy-Dips. Support 1 Buy-Dips.Obj. 39. Hold for 70. Buy-Dips. Support 30 Buy fCi'r30- 50. Buy for 104. Hold. Support at 70. Buy for 44-58. Buy for 5S. Buy-Dips. Obj. 78. Buy-Dips. Obj. 37. Buy-Dips. Obj. 37. Removed/List 5/576 Adjusted for stock split. This Bulletin 15 published for your convenIt'llee md informatIOn lind IS not an offer to sell or a SOhcllRtlOn to buy any securities dlseussed The Information was obtained from SOUfees we behl'Vc to t) Ichable. but we do not !nnrH.ntcl' lts accurl\('Y. Walston & Co., In(', amt Its offiet'rs, nnectors or employees may have an mterest In or purchase ,tnd the T(!(cr red to herem. IrIN-916

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Tabell’s Market Letter – January 05, 1968

Tabell’s Market Letter – January 05, 1968

Tabell's Market Letter - January 05, 1968
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———- — — – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – Walston &Co. – – Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER January 5, 1968 As regular readers are aware, this letter maintains a fully supervised recommended list. Fully supervised in this case means that the list is continuously maintained and no issues are added or deleted without notice being made of the fact in the letter. Thus, regular readers of the letter are able to make new purchases at the time of recommendation and re- tain those issues for as long as they remain in the list, if theydesire to do so. Readers will also be aware that we have, since 31, 1964, maintained a con- tinuous performance record for this list. The method used, while rather complex, meets, we believe, applicable standards, and is the fairest possible under the circumstances. For each issue recommended we tabulate the percentagechangefromthetime-of theoriginal recommendation to the time of removal or, in the case of issues remaining on the list, to the time of publication. We then tabulate the percentage change on the Dow-Jones Industrial Average for the same time period. Then, for each segment of the list the percentage change in the individual issues, and the percentage changes in the Dow are averaged and a compari- son is made. As is our annual custom, a complete performance evaluation of the list over the past three rs has been made as of the 1967 close, and is available this week from your Walston & Co. Account Executive. It lists all issues on the list at the beginning of 1967, and all stoc recommended during the year. In addition, the performance record of stocks removed from the list in 1965 and 1966 is summarized. As usual, the list is divided into three categories Quality and Long-Term Growth, Price Appreciation, and Speculative Price Appreciation. e,erformance of each of the categories is as follows The Quality and Lon,lh,Ter G lis shows an average gain of 8.2 vs. an average gain of 6.4/0 in the Dow\!.9.!!l'JS tr. The Price AppreCia- tion list shows an average gain of 36 vs. an of 3 the Dow, and the Specu- lative Price AppreCiation section shows an g'aliYof 0 vs. a 3.1,,/.rise in the Dow. These summaries are, of course, tained by purchase in the future. 'Co t 1 ly – re; s u c h res u It s wi 11 be 0 bn6t inchidea. A few statistics on the note that the period cove ed go worthy of note. It is interestingto D e'mber 31, 1964, at which time the Dow was 874.13, just 30.98 po' t on December 29, 1967. Reflecting the sort of mar- ket that we have ee years, the Quality and Long-Term Growth section of the list with its 8. 2 0 ge n has turned in the least impressive performance. A total na;Ir!''1Jeen made in this section of the list, and of these, 15 have ad- vanced and 13 have d ed over the period. Fifteen of the 28 issues outperformed the Dow Jones Industrials for the same time period. The largest established gain was a 53 profit in Radio Corporation in 1965-66, while the best gain in an issue currently on the list is 50/0 in National Cash Register. Strangely enough, one of the largest losses is in that paragon of conservatism, American Telephone & Telegraph, which remains on the list at a price 24 lower than its original rec(I)mmendation in September, 1965. The Price Appreciation section is, of course, the largest category on the list and com prised a total of 88 recommendations over the three-year period, of which 47 remain on the list. Of the 88 recommendations, 58 have advanced and 30 have declined. Of the 30 issues which show declines, 18 issues remain in the list and the other '12 were removed showing losses. Vis-a-vis the Dow, 54 oCthl 88 iss.ues pe,rf.9Jmed betterover the period recommen ed. Nine issues achieved a better than 100 profit during the period they were recommended of which 6 were later recommended for sale and 2, Adams-Millis and United Fruit, remain on the list. The largest losses included a 41 loss in Korvette, a 40 loss in First Charter Financial, and a 30 loss in Warner Bros. Company over the 1965-66 period. All other losses were under 20, and 11 were under 10. In the Speculative Price Appreciation section, as might be expected, the performance among individual issues varies widely from a 352 profit over three years in Microwave Associates, to a 31/0 loss in Great Western Financial. Eight over-l00 profits were recorded. A total of 32 recommendations were involved of which 24 advanced and 8 declined. Twen four -of the 32 issues outperformed the Dow over the period involved. Dow-Jones Ind. – 901 ..24 ANTHONY W. TABELL Dow-Jones Rails – 235.62 WALSTON & CO. INC. AWTamb Thill market letter Is publltlhed for your convenience and informatIon and IS not an offer to Bell or a soliCitation to buy any securities diSCUSsed. The in- formation was obtained from we behe.. e to he reliable, but we do not guarantee Its accuracy. Walston & Co. Inc. and its officers directors.or emDloyees may have an In or purchase and sell the .securities referred to helem, WN8Dl

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Tabell’s Market Letter – January 12, 1968

Tabell’s Market Letter – January 12, 1968

Tabell's Market Letter - January 12, 1968
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—- – W—a-lsItnocn.&–C-o-. Members New York Stock Exch.nge .nd Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER January 12, 1968 We have continuously suggested over the past three months that the major question mark on the general market in early 1968 would be whether or not the technical damage caused by the October 1967 decline could be reversed. It will be too early to tell much be- fore Spring whether this is definitely the case, but it must be noted that an impressive start has been made. Breadth and volume statistics since the first of the year have been excellent, and despite the fact that the Dow-Jones Industrials were almost unchanged on the week, ad- vances outnumbered declines every day – – usually by a considerable margin. Volume figures have been good, and the 10-day Total of Upside Volume reached a level even higher than its peak of January, 1967 — the highest previous level in the entire bull market. Despite the in- action in the Dow, a shift in leadership in the direction of higher quality issues has been ob- vious during the past couple of weeks, and we think that this change will probably continue. One attractive issue in the Quality category is reviewed below. GOODYEAR TIRE & RUBBER COMPANY Current Price Current Dividend Current Yield Long-Term Debt Common Stock Sales-1967-E Sales-1966 53 1. 35 2.6 349, 800,000 35,903,517 shs. 2,600,000,000 2,475,000,000 Whether or not the American public takes favorably enough to the new model cars to make 1968 a record new car year, one thing is almost certain at this time. That is, that the nation's multi billion dollar rubber industry will record a new peak in sales well. Growth of e cases, in earnings as tn ustry in 1968 is es- timated a e tliat 967, exceeding that Earn. Per Sh.1967-E Earn. Per Sh. 1966 Mkt. Range 1967-68 3.40 3. 31 56 – 39 of the U. whole.' Total sales of pr s kinds are being projected to a n e illion level. pa to rebuild depleted investories caused by lengthy of tires is likely to rise some.20 over 1967 results while shipm s year by about 8. Thus, for the first time in the history of the in u d on and shipments will exceed 200-million units. Fullyexpe si antiCipated growth, Goodyear Tire & Rubber Company, the world's largest r fa r' or, continues to expand production facilities and at the sam time endeavors to buil a advantageous tire product mix. Higher average selling prices and a desire by safety- cious motorists to upgrade their tire purchases and buy on a quality basis rather thlin on a price level basis should help offset increased wage costs. In addition, revolutionary improvements in tire design and durability should increase replace- ment demand. Goodyear, the largest factor in the replacement tire business, has developed a passen- ger car tire combining the outstanding characteristics of a conventional bias-ply tire, the increasingly popular wide footprint tire and the radial-ply tire developed in Europe. The new tire will be available in considerable volume in the replacement market early this year. In addition, it will be offered as an option on some 1968 cars. The Ford strike had little adverse effect on Goodyear since the Number 2 car maker buys most of its tires from Firestone. Goodyear's principal customer is Chrysler. If Chrysler has an exceptionally good 1968 model year, it will augment the already favorable out look for the replacement market. Goodyear operated throughout most of the 1967 strike, but earnings were limited by payments made to the struck companies under a financial assistanc agreement. Despite this, however, first-half earnings still managed to edge ahead of a year earlier due in large part to the increased volume. Earnings for the full 1967 year are esti- maded to have risen to a new peak around 3.40 a share. For 1968, we are projecting anothe rise to the 3. 60 level. Overall sales volume, 60 of which derives from tires, is estimated to approximate 2.7 billion, vs. 2. 6 billion last year. This suggests a forthcoming increase in the conservative 1. 35 annual dividend currently being paid. From the technical view, Goodyear has built a considerable base in the 44-37 area, suggesting a long-term price objective of 82-plus. There is initial support at 50 with major support at 46-43. Now on the Quality & Long-Term Growth section of our Recommended List Goodyear again is recommended for purchase by investment accounts. Dow-Jones Ind. 898.98 HARRY W. LAUBSCHER for ANTHONY W. TABELL Dow-Jones Rails 237.06 WALSTON & CO. INC. HWLAWTamb Thlt! market letter is pubhshed for your convenience and InfornlRtlOn n.nd not fin offer to sell or a soliCitatIOn to buy an) securities diSCUssed. The Information waa obtained from lIources we believe to be rehable. but we do not sruarantee Its aCCUrRI'!Y Walston & Co., Inc. and Its officers. directors or employees may bave an Interm In or purchase and sell the secUrities referred to helelr. WN801

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Tabell’s Market Letter – January 19, 1968

Tabell’s Market Letter – January 19, 1968

Tabell's Market Letter - January 19, 1968
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Walston &- Co. Inc. Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAST TO COAST AND oVERSEAS TABELL'S MARKET LElTER January 19, 1968 The word crosscurrents is, we are afraid, an overworked one in the market letter writer's lexicon, one we must personally confess we are most often tempted to use at times when the financial waters are 'so muddied as to make a prediction difficult or impossible Yet, we fail to see at the moment how any other word is more descriptive of the conflicting forces that appear at the present time to be tugging the market in many different directions simultaneously. To begin with, of course, we have the volume, the persistent avalanche of trading activity which has again forced the Exchanges to institute a shortened session — this time for an indefinite period —in order to on the,harried-staffsof member firm back offices. As a function of trading activity, we have the speculation, most particularl on the American Stock Exchange, where trading has reached all-time record levels, result- ing in stern warnings to the investment community on the part of the authorities concerned. Accompanying the -f.llenetic level of trading is the important testing level reached by the Dow-Jones Industrial Average at its high of 921. 87 on January 9th. To understand the cruciality of this level, a recapitulation of recent market history is in order. There is no doubt that the upswing which began in October 1966 at 735.74 in the Dow and carried to a high of 951.57 at the end of September 1967 can be characterized histori- cally as a major upswing. Although the Dow failed, at its peak, to make a new historic high, it was the only important average not to do so and it is the sheerest sprt of sophistry to call this upswing anything other than a major bull market. The only interruptions in this upswing were relatively minor in scope, and with a single advance was char- acterized by the series of higher highs and lows typical of d . rd move. As we have previously noted, this environm.a d a 1 with the decline of October, 1967. Not only did this drop carry well be e p v low made in August, but it brought the Dow back to its level of last ry. e obvious oversold condition at the end of last year, the market has, genera the January peak of being i is particularly disturhing in wS ied, to date, not to a new high -e September 1967 high of 951. 57. This .. the overbought condition of most of our short-term indicators as of a e 0 d.lact that this overbought condition has'not, so far, been 11 is would seem to suggest the further extension of a short-term declo would call into question the entire structure of the up- trend which started n s . Such a development would be particularly disturbing in that it would abort the ad al year-end rally at an early stage with the consequent un- favorable interpretatio lscussed in our letter of three weeks ago. Yet, and this is what we meah about crosscurrents, it is impossible to look at the technical patterns of'individual stocks and become widely concerned about the general level of the stock market — in particular the Dow-Jones Industrial Average. As a matter of fact, from a technical point of view, it would be difficult to find any group of 30 stocks that looks, as a group, less vulnerable than the 30 components of the Dow. Unexciting and dull are ad- )ectives that might be applied to many of these issues, but exploited and vulnerable — well ,hardly. Nor do either of the two other Dow averages mirror the Industrial pattern. The Rails have reached their downside objective and are patently somewhere in the process of forming a base — a process that will probably take some time. And the Utilities, largely unnoticed by tnany, recently were up 220/0 from their November'low, a performance which, if duplicated by the Industrials, would have had that average at around 1030. In the process, they have moved through their trading range of last Summer and definitely erased the downtrend that has been in effect since last Spring. Perhaps the most interesting sidelight is that all three indices were, at today's closin levels, within 10/0 either way of their highs of last March despite the fact that the three patterns are totally different. Here perhaps lies the clue for today's rather confUSing market. Essentially, in the past ten months, the popular indices have done nothing, yet it has been a ten'-month period in which highly respectable investment results were not only attainable but commonplace. It is equally likely that, wherever the averages may be ten months from now, there are a great many individual issues which will, then, be considerably higher. Dow-Jones Ind. 880. 32 Dow-Jones Rails 233.09 ANTHONY W. TABELL WALSTON & CO. INC. AWTamb This market letter ia published for your convenience Bnd Information Rnd is not an offer to sell or a sohcltation to buy any securities The In formation wu obtained from sources we beheve to be reliable. but we do not guarantee Its accuracy Wa1ston & Co., Inc. and Ild officers. director!! or employee'll may have an interest In or pUFcbue Bnd sell the securaties referred to herem. WNlOt

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Tabell’s Market Letter – January 26, 1968

Tabell’s Market Letter – January 26, 1968

Tabell's Market Letter - January 26, 1968
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Walston &Co. Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LfETTER January 26, 1968 Our last letter detailed the many crosscurrents that have beset the equity market so fa in 1968. Last week, to compound the confUSion, it had to contend with a war scare. The Pueblo incident on Thursday ended a nascent rally and sent the Dow down some nine points to an intra-day low of 853. 44 before cooler heads prevailed, and a rally on Thursdayafter- noon and early Friday set in. , In the process, most of our short-term indicators reached oversold territory last week and it is probable that a minor bottom may, indeed, have been reached. However, the very real problems as to the intermediate-term outlook discussed in last week's letter, remain – r – – – -very much with us. – – – -.. — –.- '–' Amidst all the hubbub and confusion there is, however, one thing that emerges quite clearly from a study of the individual technical patterns of 1,800 stocks. That is the diStinct shift in leadership which has taken place. The names that are now leading the relative stren parade and which, by and large, show the best overall chart patterns, are quite different from those that provided most of the impetus to the 1967 bull market. At the moment, it is, above all, imperative that the investor adjust his portfolio to this change. We could illustrate this feeling with a whole host of specific recommendations on indi- vidual issues. However, our feelings here are given concrete expression in our Recommende List. We would like, therefore, to offer a few general thoughts on the type of stock that shoul continue to do better over the months ahead. LOW pIE's vs. HIGH pIE's. By and large, the market leadership of the past two-an a-half years has been provided by issues which are now high multiples in relation to their earning power. In a great many cases t e pIe are justified, and there is no philosophical objection here to paying a gro a,nd/or quality. flow- ever, it must be noted that, in many instances, recen a ances' ndividual stocks have owe their existence in only a minor way to priceI earnings multiple — in other words to this connection, it is necessary only d' major part, to a markup in th et r r than fundamental factors. In he – rklgiVethaicttiiemarket-takethawa At the moment, we are, in issues selling at a historically modest multiple of earnings, and e wo distrustful of those issues where a premium is being paid for grow n son or another, is not materializing. The market has been especiall nward-revised earnings estimates of late, and we would expect this to continu PEACE STOCKS s. R STOCKS. Despite the recent Korean flare-up, there is to ou mind clear evidence t e market is highly distrustful of those issues associated with the war or defense efforts, and favorably inclined toward issues which would benefit from an end to hostilities, and a consequent upsurge in consumer spending. Industry groups that come to mind particularly in this category would include retailing, vending, building,savings and loans, textiles, apparel, automobiles, tire and rubber, etc. Issues in these industry groups are liberally represented in our Recommended List. CONSUMER GOODS vs. CAPITAL GOODS 'STOCKS. Our thinking here is largely an out growth of the war/peace analogy presented above. Again, the superior technical action of those industry groups which depend for their success on consumer spending appears to be a clear. phenomenon. The recently high rate of saving may well have something to do with this along with the defensive value provided bythe average consumer-goods type of issue. NA TURAL RESOURCES STOCKS. Inflation is, of course, very much with us, and here again the market seems to be indicating a clear preference for issues which 'provide some inflation protection via large holdings of natural resources. The obvious areas that come to mind are- the oils and certain paper and timber companies, together with a number of issues in the metals field. We concluded last week's letter with the sentence that – It is likely that, wherever the averages may be ten months from now, there are a great many individual issues which will, then, be considerably higher. We reiterate this feeling at the moment along with the though that a great many of those issues will fit the characterizations outlined above. Dow-Jones Ind. 865.06 Dow-Jones Rails 231. 75 ANTHONY W. TABELL WALSTON & CO. INC. AWTamb Thill market letter Is published tor your convenience and In(ormRtlon ILnd IS not an offer to sell or a soliCitation to buy II.n) securitLes ..hscU88ed The In 0;formation was obtaaned from sources we believe to be rellable. hut we do not guarantee Its o.ccurnc). Walston & Co. Inc. and itll officers, dl;ectors employeeB may have an mterest in or pUl'chase and sell the referred 1.0 herem. WN301

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Tabell’s Market Letter – February 02, 1968

Tabell’s Market Letter – February 02, 1968

Tabell's Market Letter - February 02, 1968
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Walston &Co.- .;;…; Inc. Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER February 2, 1968 Market action continues mixed, confused and erratic. The early part of last week's trading featured mild weakness in the averages and in most stocks, along with severe bloodlettings in a great many of the now tarnished glli.mor issues.' A rally starting late Thursday, which featured glamors, paled on Friday as traders quickly moved to take profits. While we are extremely dubious as to any prospect of major recovery in the former leaders, . we must confess that it is hard at this time to predict any major disaster for the market as a whole. We continue to view the complex process now taking place as a shift in market leadership into the kind of stock mentioned in last week's letter. – – Accordingly, 'we'are'mak-ing'a' number of'changes-in-our-Recommendedi;ist.—Two- issues, American Potash and Mead Johnson, have been merged and are being removed as of their last price prior to the merger. Another merger issue on the list is Pennsylvania Railroad, and we are retaining the combined Penn-Central in the list. Also for the time being, we are retaining both Olin Mathieson Chemical, and the spun-off Squibb-Beech Nut which holders of Olin Mathieson received. Three issues, Cincinnati Milling Machine, Ex-Cell-O. and Kelsey Hayes, are being deleted effective with today's prices. The following issues are being added to our list. To the High-Quality-Long-Term Growth section of the list we are adding NA TIONAL DAIRY (37 1/4), the largest international packaged food company. Famou brand names like Kraft and Sealtest are being introduced on a world-wide basis and with overseas expansion efforts accelerating, prospects appear bright for continuation of the im- pressive earnings uptrend. To the Price Appreciation section of our Recomme ed w! are adding the follow ing issues, all of which seem to present the combinenJ a tr c lV chnic!11 patterns and interesting fundamentals. P. ARVIN INDm5TRIES (33 1/2) a e in radio and TV manufac- . . ture, auto parts and systems, etc., has portable hea . gs …. oro. PopulatlOn expanslOn and upturn in auto sales suggests CANADA DRY (33 1/8) I n drink field, importer and distributor of scotch whiskey under h J I k bels and a distiller of domestic liquors. Hunt Foods potentially d 0/. 0 rough ownership of convertible debentures. CHICAGO M L UMENTS (33 1/2), largest domestic manufacturer of mu- sical instruments, has y had an outstanding market performance in recent months. However, if current e . ates of earnings growth prove true, as now seems indicated, CMI should prove an attractive commitment. FIRST CHARTER FINANCIAL (30 1/2) is the leading factor in the savings and loan indu3try, a field that now seems to have passed into a resurgent phase. With management having learned to operate successfully in tight monetary climates and real estate again on the uptrend in California, the outlook here is favorable for the foreseeable future. We also are adding the following issues to the Speculative Price Appreciation section AMERICAN MOTORS (137/8), the David of the auto industry, again is gearing up to 'do battle with the Goliaths of the industry. First quarter indications strongly suggest that fiscal 1968 could be AMO's best year in recent history. AMERICAN PHOTOCOPY (19 1/8), meeting with successful selling of its new copying machine, could be upon a new phase of profitability. Future earnings, however, do depend heavily on this one product. In view of this, the stock must be considered highly speculative and suitable only for accounts able to assume indicated risks. ELECTRONIC SPECIALTY (31 5/8) , active in the areas of smog control, space con- ditioning, plastics, controls and labor-saving devices, appears to offer attractive long-term potential. MACKE VENDING (19 1/2), although one of the smaller vending companies, has com- piled one of the best growth records. With long-term price objectives considerably above current levels, MAK should make for a worthwhile holding. Dow-Jones Ind. 863.56 Dow-Jones Rails 228.31 HARRY W. LAUBSCHER for ANTHONY W. TABELL WALSTON & CO. INC. This market letter 18 published for your convenience and and IS not an offer to sell or a soIlclt,Rtion to buy any securities diSCUSsed The In- formation was obtained from sources we beheve W be rehable. but we do not guarantee Its lccuracy Wall1ton &. Co. Inc. and lUi officers. directors or emDloyeea may have an interest in or pUl'chase and sell the securltLCs referred to herem WNBOl

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Tabell’s Market Letter – February 09, 1968

Tabell’s Market Letter – February 09, 1968

Tabell's Market Letter - February 09, 1968
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Walston &Co. …;…..;.,;.;;;…;..; Inc. ;;.–…;..- Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER February 9, 1968 There is a well established school of thought among market analysts that the way to achieve investment success is through something called Contrary Opinion . The theory holds that the most profitable investment decisions are made when one tries to ascertain what the great majority of people are thinking and then, himself, takes site view. – the oppo- In practical application the theory has a number 0 f drawbacks. The first rises from the fact that the stock market is a dynamic affair, moving in broad uptrends and downtrends. It is, therefore, most of the time, actually more profitable to go along with the crowd rather than attempt to anticipate it. Another practical difficultY'is that, a great deal of the time, it is impossible, in any rational way, to ascertain just what the majority opinion is. However, recent weeks, we think, have been an exception in that we were able to de- tect what seemed to be somewhat of a standard forecast. This forecast ran more or less along the following lines. The stock market is now deeply oversold and, therefore, must have a short-term rally. However, the overall outlook is poor, and this rally will shortly re- verse itself and the market will move to new lows. The contrary opinion school would hold that, when a forecast is as unanimous as this one, it must inevitably be wrong. We must con- fess that, at this juncture, we are, ourselves, inclined to take the contrary view. Now, obviously, the forecast above could have gone wrong in one of two ways. Either the market could have gone lower without any significant advance, or a rally could have en- sued of more than short-term significance. Market events last week would lend credence to the fact that the forecast will err in the former direction. dtfline on Thursday and Friday carried the Dow-Jones Industrial Average to an int da of 34.84. This was decisively below the intra-day low of 839.40 reachedW er he qench mark a great many financial commentators have been eying 'riMMtrepi n for the past three or four weeks. It is on the subject of the t another piece of contrary thinking perhaps ought to be ofUnfortuna the game tee s beeii. one which, of late, almost everyone thinks he can play, level in both June and No mbe previously bottomed around the 840 t ye r probably one of the best advertised pieces of financial knowledge in e Y. are the dire predictions of what is supposed to occur after the 10 . . e, therefore, inclined to suggest that, under these circumstances, Frida . g of that low will have very little in the way of long-term significance. The astute rea will have noted that there appears in the paragraphs above no hint of a forecast as to where the Dow may be over the next month or two. The reason is that ther is precious little technical evidence at the moment on which to base such a forecast. The decline has been sharp and the market is, in fact, oversold. There has, however, been no evidence of the sort of market behavior that notably accompanies an important rebound. And it is quite possible that lunatic-fringe selling brought about by the penetration of the Novem- ber lows could carry the market somewhat lower. , However, when one leaves analysis of the averages, which is easy and, at the mo- ment, confUSing, and attempts to analyze individual technical patterns of some 2,000 stocks, which is a good deal more difficult but more rewarding, two facts become crystal clear. A great many stocks-have very weak should be sold. great many others have very strong technical patterns. These shOUld be bought. We have been trying in the last three issues of this letter to pinpoint some of the stocks and groups wnich fall into-these categories and will continue to do so in future issues. We are inclined to think that investment around current levels in the more attractive stocks may well prove a good deal more rewarding during the remainder of 1968 than a good many people now expect. Dow-Jones Ind. 840.04 Dow-Jones Rails 223. 63 ANTHONY W. TABELL WALSTON & CO. INC. AWTamb Thill market letter 1.8 published for your convenience and information nnd III not an offer to sell or a BOhcltation to buy any securities diSCussed Th . formation employeel'! was mlQ' obtained from sources we beliee to be rehable. but have an interest in or pUTChase and sell the securities rweeferdroedntoot guarantee helem its occuracy Walston & Co Ine d its oflI d toe In an cers. tree rs or WN.801

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Tabell’s Market Letter – February 16, 1968

Tabell’s Market Letter – February 16, 1968

Tabell's Market Letter - February 16, 1968
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Walston &- Co. Inc. – – – – – . .. , , FI L /! Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER February 16, 1968 From time to time this letter has had occasion to remark on something called the bull-bear syndrome, noting that the disease occasionally afflicts some market analysts and a great many investors. We have suggested that the most noticeable symptom of the 'disease is a compulsive desire to pin labels on the stock market — calling it either al a bull market or, (b) a bear market, without any room for intermediate gradations. We think that this compulsion has always been an enemy of rational thought insofar as the stock mar- ket is concerned,and we suspect that it is becoming more and more so today, For example, just how, pray, does one go about defining a bull market and a bear mar ket The most tempting thing is to saya buli' marketeXi'Stswhen a given'average let us say the Dow-Jones Industrials, advances x and, conversely, a bear market exists when said average declines y/o. All well and good. If the standard of a 20 decline in the Dow-Jones Industrial Average is utJ\ed to define a bear market, we have had four such markets in the past 25 years occurring in 1946, 1957, 1962 and most recently, in 1966. By this standard, the drop from an intra-day peak of 951. 57 in the Dow last September to an intra-day low of 826.46 this week, a decline of 13.2, does not yet qualify. There are a couple of things wrong with this kind of a definition. The first thing is that looking at the market in terms of percentage decline and percentage advance may obscure some much more important characteristics. Let us take the two most recent bear markets- 1962 and 1966. These were actually fairly similar in extent, but the characteristics, it seems to us, were quite different. By and large, a great severe debacles in 1966 came back very sharply to reach w i stocks that suffered oi),nd a year later. This included airline, office equipment, electronics, andJttPuT e e technology issues. By contrast, in 1962, a great many stocks -siderable period of time, casualties of the bear 0 remained for a conarge number of cases, have not even today, six years later, moved peaks. Thus, the two markets- both bear m!rkets by percentage during and after the fact. . ' yo Another difficulty of 1960 during which year t rule, this fails to al a standards is typified by the market of me 18 from January to October. By the 20 et, yet it was a period in which a great many issues declined to major n s. e we make the percentage required to define a bear mar- ket smaller than 20, e i urselves including such periods as the drop from August 1956 to February 1957, or t ay-July drop of 1965, periodS which very few people consider ones of major decline . Nor do bull markets admit of easier definition. It is arguable, for example, though not, we think, very cogently,that 1967 did not constitute a bull market at all since, after all, the Dow did not make a new high. This tortured bit of reasoning will come as some surprise to the holders of those mutual funds whose managers had little difficulty achieving a 50 to 100 increase in net asset value for the period. All of this leads, of course, to the problems involved in defining today's confused stoc market. We have had since last September, it seems obvious enough, a market very differ- ent than the one we enjoyed in the early part of 1967. If the 1967 period constituted a bull market, are we then to say we have now entered a bear ,market phase We a!,e, frankly, not so sure. To the holder of a whole- host o- f h-i-gh-.l.y…i–n-f-lated IIglamo- ur II issues, the last five months have constituted a real doozie of a bear market. To a great many otre r investors the results, so far, at least, have not been overly painful. Gerald Tsai, Jr., in a recent speech, forecast that 1968 would bring a whipsaw mar ket, and we are inclined to go along with this definition as being as good as any. Just how it will shape up in terms of the averages is, in fact, anybody's guess, but we are quite certain it will produce highly attractive investment opportunities in individual stocks. Dow-Jones Ind. 836. 34 Dow-Jones Rails 224.66 ANTHONY W. TABELL WALSTON & CO. INC. AWTamb This market letter 18 pubhshed for your convenience and informntlOn flnd is not an off('r to sell or ,!. soheltat\on to buy any securities dLScussed. The in senformation WAS obtaIned from BOUfel'll we believe to be rehable, but we do not g'Unrantee its accuracy Walston & Co., Inc. and its officers, directora or emlo),eell may have an Intereat in or purchase and the secuTltJE'S refenoo to helcin WN801

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Tabell’s Market Letter – February 23, 1968

Tabell’s Market Letter – February 23, 1968

Tabell's Market Letter - February 23, 1968
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W—a-lslntocn.&–C-o-. Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER 100 OFF1CES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER February 23, 1968 It is always well to suspect the obvious, especially so, perhaps, in the stock market. By the time the Dow-Jones Industrials reached an intra-day low of 826.46 last week, signs of an intermediate-term downtrend were clearly apparent. The Dow Theory sell signal had been given, most longer-term smoothed curves, such as 200-day Moving Averages, had turned down, the heralded November low had been penetrated and the speculative favorites of last year had been thoroughly purged. Yet, on a short-term basis, the market was obviously so thoroughly sold out that at least a respite was necessary, and, low and behold, this week brought the first half-way decent advance seen in what has so far been a dismal 1968, with an intra-day high of 857.78being reachedon.Fr.iday.. The.obviousexpectation is, of course, that the rally will run its course, peter o;t andthat the intermediate downtrend will again prevail until more conclusive signs of its demise are offered. This is, as we said above, the obvious concluSion. We suspect it. If the market is in need of further liquidation, we are inclined to think it will be completed Sooner than later. Alternatively, if the present rally can be maintained for any length of time, we suspect it wil continue farther than a great many pessimists would now seem to believe. Under these con- ditions, the standard solution is continued investment in attractive stocks such as the one reviewed below. CHICAGO MUSICAL INSTRUMENT COMPANY Current Price Current Dividend Current Yield 32 5/8 1. 00 3.00/0 Sweet music has been filling the air for the last ten years at Chicag!IllStrument Company as sales evidencma s d' . in rend. Largest manl,!- Long-Term Debt Common Stock 13,750,000 facturer of 1, 722, 900 shs. is expected to i m in the country, CMI a prime beneficiary of Sal 1968-E 67 000 000 the n the part of American youth &!l 1967 . . .611 680 OOQ. . — d 1 a is rl u or 0 ms reusmpeCentialSlC, YMguIihatsars Earn. Per Sh. 1968-E 2. Earn. Per Sh. 1967 1. 68 .V position in the retail dealers area, br u rf'about by an aggressive acquisition program to Mkt. Range 1 er with above-average internal growth. Sales over the last decade have averaged almost a 20 year-to- year improvement, e ear – gs through the fiscal year ended June 30, 1966, averaged a 23 annual gain. Whi Ie s managed to move slightly ahead in fiscal 1967, net declined due to labor disputes ea m the year at the guitar division, the company's most profitable subsidiary, a trucking strike and poor weather conditions that managed to severely delay shipments. CMI's line includes keyboard instruments with organs and pianos being sold under the Lowrey and Storey & Clark brandnames. Organ sales, which declined over the last year due to a shortage of electronic components caused by the greater demands of the color television industry are expected to undergo a resurgence in coming months. Fretted instruments are sold under the Gibson, Epiphone and Kalamazoo names. Because of the accelerating demand for guitars, CMI continues to have a substantial backlog of orders in this product area. Band instruments produced include a full line of brasses, and woodwinds manufactured by others are distributed through CMI outlets. The overseas market continues to expand. Instruments are exported to dealers lo- cated in more than 100 countries with Canada being the most important. It is. estimated that foreign volume will approxima te 10 of fiscal 1968 total sales. As living standards abroad rise, demand is expected to parallel the uptrend and constitute an increaSingly important con tribution to overall earnings. Selling at less than 20 times the estimated 2.00 a share for fiscal year ending June 30,1968, these shares appear to offer the long-term investor an attractive vehicle for capital gains and growth in dividend income. From the technical view, there has been a base built over the last year evidencing considerable downside support between 34 and 28 and indicating a price objective at 65. Recently added to the Recommended List, these shares again appear attractive for purchase. Dow-Jones Ind. 849.80 Dow-Jones Rails 225. 84 HARRY W. LAUBSCHER for ANTHONY W. TABELL WALSTON & CO. INC. HWLAWTamb This market letter Is pubhshed for your convenience and informRtion Rnd IS not an offer to sell or R sohcltation to buy any secUrities hscussed. Tbe In- formation was obtained from we beli'Ve to be rehable, but we do not guarantee Its occuracy. Walston & Co Inc. and Its officers directors or employees may bave an interest In or pUFcbase and sell the securities referred to helem.

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Tabell’s Market Letter – March 01, 1968

Tabell’s Market Letter – March 01, 1968

Tabell's Market Letter - March 01, 1968
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Walston &reo. !nc F( Membe.. New York Stock Exchange and Other Principal Stock and Commodity Exchanges OVER 100 OFFlCES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER March 1, 1968 The question of What is the stock market going to do is never an ea sy one to answer. It is made even more difficult at the present time by the fact that, before answering, one has to ask,What stock market are you talking about 1967 High Recent Low 1967 High Recent Low Eagle – Piche rInd. Gulf Oil Goodyear Tire 41 3/8 80 54 3/8 45 71 48 5/8 Litton Ind. 120 3/8 Bausch & Lomb 72 1/2 Molybdenum Corp 77 5/8 63 118 42 3/4 32 5/8 The dual of market can best.be exemplified by the above table which shows the 1967 high and this week's low for six selected stocks. The Dow-Jones Indus- trial Average over the same period is down some 13, yet in the left-hand column we have Eagle- Picher (a special situation which happens to be on our Recommended List) which was actually higher this week than at its 1967 high, and two blue chips which have suffered only modest declines. In the right-hand column, on the other hand, we have Litton Industries and Bausch & Lomb, two former market favorites which have dropped almost 50 due to tempo- rary earnings difficulties, and Molybdenum Corporation – – typical of the sort of thing that has been happening all too widely on the American Stock Exchange. Both lists, we think, are fair and representative, and either one could be extended indefinitely. We have had, in other words, two markets which, by and large, have existed simul- taneously. The first market consists of stocks which rightly or wrongly, were being placed in a growth category. In a great many instances, the justified and, in other cases, it was not. In any case, once the magic label a d, the rise which took place in this market during 1967 was far out of a ctual earnings growth which took place. This was the sort of thing that finan i write ere talking about all last year when they repeatedly complained about s ati is absolutely no doubt that a speculative orgy was rampant in 1967 about this-is is 0 ar. ntly, coming to its inevitable end. . Id-be-surprised'at'a'lh .. – And yet, what of the er one where there was little speculation and whose components genera ly ba 1 e\ or moved ahead modestly last year By and large, these stocks did t .e e Saturnalia, and their declines in the first two months of 1968 y modest. It would be rather illogical to expect the technical pattern of G 1, to be similar to till t of Litton and, indeed, it is not. It is perhaps tim a return to basics. Stock prices, we have always said, are the product of three fa s — (1) Earnings/Dividends, 2 Money Rates, and (3) Investor Confidence. This last factor, probably the most important over the short-intermediate term, is a nebulous thing and difficult to measure. It often expresses itself in high-flown concepts, (compound annual growth and synergistic management for example) which are eventuall relegated to well-deserved oblivion. It is our belief that investor confidence can best be pro jected by turning to the technical action of the market. What, then, of the future For the first segment of the market mentioned above we are not optimistic. It is obvious that confidence — as expressed by historically high multi- ples for a great many growth favorites, has been shattered and we suspect that this dis- illusion may turn out to be more or less permanent. Despite the fact that the largest portion of the decline may have already been seen, we are still able to visualize lower price object- ives for a great many of last year's — . The big question at the moment is whether the carnage that has characterized the growth stocks in the last few months will spread to the remainder of the list. It may well do so. The terminal phase of a decline has often been characterized by the salty phrase, When the paddy wagon backs up to the door, it takes the good girls along with the bad. Yet, the relatively unexploited nature of a great many issues leads us to believe that any such decline, if it takes place, will be a temporary thing and prOVide an important buying opportunity It is, after all, the optimistic point of view that price declines prOVide the courageous with an op- portunity to buy cheap stocks. We think 1968 will see a number of such opportunities. Dow-Jones Ind. 840.44 Dow-Jones Rails 217.46 ANTHONY W. TABELL WALSTON & CO. INC. AWTamb Thin market letter Is published for your convenience and miOTmntlOn Rnd IS not an offer to sell or R soli('ltation to buy Rny se'uTlties discussed. The In. formation was obtained from Bources we beliNe to be rehRble. but we do not guarantee Its enlployee8 may have an Interest In or purchase Rnd sell the aeeuntH.'S rererred to helem Walston & Co. Inc and Its officers, directors or WN801

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