Viewing Year: 1969

Tabell’s Market Letter – January 03, 1969

Tabell’s Market Letter – January 03, 1969

Tabell's Market Letter - January 03, 1969 page 1
Tabell's Market Letter - January 03, 1969 page 2
Tabell's Market Letter - January 03, 1969 page 3
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W—-a–l-s-Itnocn—&–C–o–. Members New York Stock Exchange and Other P,rincipal Stock and Commodity Exchanges OVER 100 OFFICES COAST TO COAST AND OVERSEAS E TABEll'S MARKET lETTER January 3, 1969 How discreditable! …… Plato, Republic Book VIII Confidence, or the lack of it, always has been the measure of stock markets. It is weakened by apprehension andmucture-dIby hope, .Thus, the recipe for the crosscurrents of today's market. The fears of a credit crunch brought on by intractable inflation must be balanced with the promising outlook for the economy and the strong probability that Vietnam War costs have peaked. In the face of a favorable climate for investments, the lack of confidence held by some could prove discreditable. Until the favorable factors now present are moderated by as yet unforeseen adverse agents, we remain of the opinion that there is more -to' gafilfroni being in 'stocks, rather'thanout ofthem; in coming months. One stocK for the -, in crowd is Olin Mathieson Chemical Corporation. OLIN MA THIESON CHEMICAL CORPORATION Current Price Current'Dividend Current Yield 43 1/2 1. 20 2.8 Long-Term Debt Common Stock Sales-1968-Est. Sales-1967 195,100,000 15,899,000 shs. 995,000,000 901,100,000 Earn.Per. Sh. 1968-E 3.40 to 3.50 Earn. Per Sh. 1967 3.47 Prospects for this leading chemical conglomer- ate appear to be more bright than they have been for more than a decade. Thanks to an economy that is encouraging ever-increasing use of its broad line of diversified products, sales projections call for a rise to record levels this year and a sharp gain over the next several years. A similarly im- portant improvement in earnings also appears to b part of the e smng that is being painted for holders of 01 so. 0 Mkt. Range 1967-68 81 3/4 – 32 1/2 their fort Olin has seen fit recently to dispose of some of 'ts i 0 p s have augmented tli a' addition of subsidiaries, tan dings. Thus, the year re- ended ,the to of E….R.Squib , one oflhe nahon's leaamg e sale'of OLM's holdmgs m Umted Nuclear Corporation. While afforded OLM stockholders an unexpecte dividend, the monies derived sale have substantially improved the finances of the parent's u e, providing welcome wherewithal to foster addi- tional growth. Olin recent! d e s of those companies realizing profitability from alumi- Owned by Olin, is the nation's fourth largest integrated alumi- num producer, and wi 9 expected to witness a sharp rise in residential construction, prospects for the alu mum industry in general are considered favorable. Contributions to overall net income from Ormet are expected to show a steady improvement in the years im- mediately ahead. Also likely to be aided by the anticipated construction boom is the Olinkraf forest products division that sells lumber and plywood products, in addition to paper items used in the packaging field. Chemicals continue to dominate the Olin scene and, with the exception of agricultural chemicals, are a leading contributor to earning power. Considerable overcapacity in agri- culturals is industrywide, and has resulted in keen price competition and unfavorable profit showings. Demand for Olin's industrial chemicals, propellants, antifreeze and specialty items continues to expand and profit margins in certain of these areas is expected to show improvement. . All in all, the outlook for 1969 is bright with some industry analysts projecting earn ings close to 3.80 a share, vs. the 3.40 to 3.50 estimated for the year just ended. With OLM selling well below the price-earnings multiple of the last fifteen years, there appears to be considerable upside potential. Technically, OLM, despite its sharp move of recent months, has a favorable chart pattern suggesting higher prices. The charts indicate a price objective at 60 and reveal strong underlying support around the 40 level. Now on the Price Appreciation section of our Recommended List, Olin Mathieson shares again are recommended for investment purchase. Dow-Jones Ind. 951. 89 Dow-Jones Rails 272.61 HARRY W. LAUBSCHER for ANTHONY W. TABELL WALSTON & CO. INC. HWLAWTamb ThIs market letter 1,8 published for your convenience and wformAtlon And is not an offer to sell or a soliCitation to buy an)' securities lhscussed. The in- formation W&I! obtained from we beheve to be reliable. but we do not guarantee its lccurac). Walston & Co., Inc and lts officers, directors or employees may have an Interest in or purchase And sell the securities referred to helem. WN801 . Walston &- Co. Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER laD OFFICES COAST TO COAST AND OVERSEAS TABELL'S RECOMMENDED LIST (Page 2.) PRICE APPRECIATION Date Recom. Adams Millis 3/17/67 Air Reduction 4/22/66 . Amer. Baker. 9/8/67 Amer. M&F 9/8/67 Arvin Ind. 2/2/68 Bulova Watch 9/8/67 Burlington Ind. 11/17/67 Chic.Mus. Inst. 2/2/68 Commonw'th Oil 3/17/67 Copperweld St. 12/31/64 Diners Club 9/8/67 Dresser Ind. 3/17/67 First Chart.F. 2/2/68 Gt. No. Paper 3/17/67 Koppers Co 12/31/64 McNeil Corp. 9/8/67 Medusa P.C. 11/17/67 Mesabi Tr. 12/31/64 Olin Mathieson 4/22/66 Republic Steel 9/8/67 Rexall Drug – 8/30/68 Reynolds Met. 12/31/64 Robt. Controls 3/15/66 Seaboard C.L. 5/5/67 Sharon Steel 7/8/66 Stokely VanC. 5/31/68 Union Camp 3/23/66 Vornado 9/8/67 Price as of date Recommended 11 36 3/8 263/4 227/8 33 1/2 30 41 1/8 33 1/2 26 3/8 263/8 401/8 321/2 301/2 37 3/4 27 1/2 171/4 283/8 147/8 33 493/4 347/8 34 555/8 347/8 60 47 25 1/2 Price 12/31/68 or date Removed 19 1/2 33 7/8 27 1/4 27 1/4 42 172 45 5/8 44 1/2 31 1/8 29 1/4 27 47 1/2 41 7/8 36 1/2 68 3/8 44 28 1/2 38 1/4 12 1/4 43 1/2 51 405/841 3/4 65 3/4 52 3/8 46 3/4 36 1/8 56 3/4 24 7/8 Change 77 -7 2 19 27 52 8 -7 11 2 18 29 20 81 60 65 35 – 18 32 3 4 20 93 -6 34 – 40 21 -2 Allegheny Lud. 11/18/66 56 54 1/2 Ampex Corp 6/30/67 36 1/8 32 1/4 Anaconda 9/8/67 493/8 45 1/8 Anchor Hock. 11/18/66 53 Canada Dry 2/2/68 33 1/8 72 437/8 Cincin. Mill. 11/18/66 31 49 7/8 Comsat 3/10/67 61 1/4 56 Dentists Supply 10/27/67 43 39 1/4 Eagle Picher 2/3/67 165/8 30 . T 12/31/64 215/8 -Ex-CeU-O 4/19/66 — 221/2 33 1 /4 .. — 33 Dynamics 12/ 31/64 35 47 1/2 Gillette Co 11/15/65 37 52 Kelsey Hayes 11/18/66 421/4 36 Revlon 5/3/65 45 1/8 72 Riegel Paper 12/31/64 21 3/8 22 3/8 Schlumberger 12/31/64 473/8 101 Scovill Mfg. 5/5/67 42 40 Shell Oil 12/31/64 59 1/2 67 1/4 Signode Corp. 12/31/64 27 1/4 37 , Squibb-Beech N 1/15/68 443/4 45 1/8 Tektronix 3/17/67 401/8 47 1/4 -3 -11 -9 36 32 61 -9 -9 80 54 47 36 49 – 15 60 5 102 -5 13 36 2 18 Change DJIA same Time Period 9 -1 4 4 9 4 10 9 9 8 4 9 9 9 – 18 4 10 8 -1 4 5 8 2 4 6 5 2 4 13 7 1 9 10 7 6 3 5 5 — 9 9 -4 7 -1 9 3 1 5 5 1 6 Current Comment Hold. Buy for 55-70. Buy on dips for 66 Buy onDips. Buy for 60. Hold, buy on dips Buy for 65., Hold for 46. Buy. Buy onDips. Buy. Hold. Buy for 102. Buy for 62. Hold, buy on dips. Buy for 54. 67. Hold. Buy for 60. Buy for 70-106. Hold, buy on dips.. Buy. Hold. Buy on Dips. Buy on Dips. Buy. Buy on Dips. Buy. Removed 7/19768 Removed 5/3/68 Removed 5/3/68 Removed 10/4/68 Removed 10/4/68 Removed 2/2/68 Removed 6/21/68 Removed 7/19/68 Removed 6/21/68 Removed 5/3/68 Removed 2/2/68- Removed 10/4/68 Removed 7/19/68 Removed 2/2/68 Removed 7/19/68 Removed 10/4/68 Removed 6/21/68 Removed 5/3/68 Removed 5/3/68 Removed 5/3/68 Removed 6/21/68 Removed 5/3/68 ThiS Bulletm IS puhllshed for your was obtmned from bOUH\''1 we have nn Interest In or r1urch,I'c an,l rln,) informAtIOn and lb not Itn offer to '1el1 or 1\ soliclt,ltlOn to llU) an) securities dIScussed. The mformaliOn to hi but we ,10 not J.(UIlI,\nl.', Its W1II,ton- Co, Inc .Inl It!! offic'r! nne'tors or employeeS mlly the '1LCUlltl'S lcfl'IIl-'(1 to helln, 'WN-916 Wdlston &- CO. Inc Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAST TO COAST AND OVERSEAS lABEll'S RECOMMENDED LIST (Page 3) Date Recom. Price as of date Recom- mended Price 12/31/68 or date Removed Change Change DJIA same Time Period Current Comment United Fruit 12/31/64 17 5/8 Wallace & Tier. 8/2/65 32 58 36 5/8 229 14 5 4 Stocks Removed, 1965-67 (forty-three) 50.6 4.3 AVERAGE -. — — .. – .–. 38-1–''4-7 Removed 5/3/68 Removed 5/3/68 —-. …- SPECULATIVE PRICE APPRECIA TION Allied Sup'mkts Amer. Motors Camp. Chib. Chris-Craft Electron. Spec. Gibraltar Fin. Home Oil A Macke Co Microwave Pacific Pete -P-e-n-n- C-en-tral Technicolor UMC Ind. Victoreen 9/8/67 2/2/68 12/31/64 3/15/66 3/8/68 11/17/67 11/18/66 2/2/68 12/31/64 12/31/64 5/5/67 12/31/64 5/5/67 20 13 7/8 3 13/16 23 27 22 1/2 21 19 1/2 9 5/8 10 3/4 67 23 1/2 14 3/8 13 1/2 21 12 7/8 10 1/4 39 1/4 27 7/8 27 1/4 46 7/8 29 33 3/8 25 6.3.2L 38 3/8 25 3/8 15 1/2 5 -7 228 71 3 21 123 49 247 133 -5 63 77 15 4 9 8 2 13 10 17 9 8 8 4 4 8 4 Buy on Dips. Buy on Dips. Hold. Buy for 68. Buy on Dips. Buy on Dips. Hold. Buy on dips for 4 Hold. Buy for 30-50. Hold. Hold. Hold. Amer. Photo National Can Syntex Varian Assoc. Vulcan Mat. 2/2/68 12/31/64 3/17/67 12/31/64 12/31/64 19 1/8 17 93 1/8 13 17 3/8 Stocks Removed, 1965-67 (seventeen) AVERAGE 16 1/8 55 3/8 75 27 21 7/8 – 16 226 – 21 108 26 60.0 67.60/. 10 9 6 5 5 3.7 5.9 Removed 10/4/6 Removed 10/4/68 Removed 5/3/68 Removed 5/3/68 Removed 5/3/68 Adjusted for stock split. – — —– ….. — ,, ) , II I! Thll; Bulletm 18 published for your con\enH'nce .lnd information Rnd IS not Rn off('r to sell or Ii to buy A.ny seeurrwes discussed The InformatiOn W811 obtamed from SOU1CCS we hchev. to h. Ichble, hut we do not lts accuracy. Walston & Co, Inc. Rnd Its officers, dncctors or msy havc an Interest In or Ilurdll\!lc IU1I1 leil the referlerl to hertLn. WN-916

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Tabell’s Market Letter – January 08, 1969

Tabell’s Market Letter – January 08, 1969

Tabell's Market Letter - January 08, 1969
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Walston &Co.Inc Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVU 100 OFFICES COAST 10 COAST AND OVERSEA.S TABELL'S RECOMMENDED LIST January 8, 1969 This edition of our Recommended List tallies the price performance of all recom- mended stocks over the 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 1968. 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 between 1965 and 1967 is averaged at the bottom of each list. . The first't';o colurrms show' the recomn;endatl.ondate andprice.-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 31, 1968, or on the date removed if the stock is not now on the list. The fourth column shows the percentage change, and the fifth column shows the percentage change in the Dow-Jones Industrials during the same time period. The tabulation speaks for itself. The stocks in the Quality and Long-Term Growth section of the list show an average rise of 15.80/0 vs. an average rise of 5.9 in the DowJones Industrials. The stocks in the Price Appreciation section show an average gain of 380/. vs. a 4. 7 gain in the Dow, and in the Speculative Price Appreciation section, the average gain is 67.6 vs. a 5.9 gain for the Dow. These summaries are, of course, not meant to impl)' that such results could have been obtained by purchase of issues in the Recommended List, or that similar results will ,, be obtained by purchase in the future. Commissions are, of course, not included. QUALITY & LONG TERM GROWTH Price as Price of date 12/31/68 Date Recom- or date……-c ….. Change DJIA same Time Recom. mended Removed Change Period Alum, Co, Amer. 5/3/65 71 7/8 73 2 7 2 Amerada 8/16/67 80 113 1/4 42 3 Amer.T & T 9/7/65 67 53 -21 4 Borden Co. 9/8/67 38 1/2 34 2/8 -11 4 Caterpillar Tr. 9/8/67 47 43 5/8 – 8 4 Colgate Palm. 3/17/67 29 3/4 49 1/4 66 9 Cont'lOil 3/17/67 68 3/4 79 15 9 Del Monte 9/8/67 34 3/4 Fed. Dept. St. 11/17/67 35 Goodyear Tire 6/17/66 51 35 1/2 2 35 1/4 56 10 4 10 6 Intern'l Paper 6/29/65 31 37 5/8 21 12 Kellogg Co 9/8/67 38 5/8 41 1/2 7 4 Nat'l Dairy 2/2/68 37 1/4 42 5/8 14 9 Parke Davis 4/22/66 36 1/2 29 1/2 -19 -1 Phillips Pete 3/17/67 55 75 1/4 37 9 Radio Corp. 9/8/67 56 5/8 Reynolds Tob. 12/31/64 38 1/8 Royal Dutch 12/31/64 32 5/8 46 1/4 46 3/8 22 50 5/8 36 4 8 – 8 U. S. Gypsum 9/6/68 87 7/8 82 1/4 – 6 2 —— – -Current Comment Buy. Hold. Buy on Dips. Buy on Dips. Buy. Hold. Buy on Dips. Buy on Dips. Hold. Buy for 82 . Buy on Dips. Buy. Buy on Dips. Hold. Buy for 110-124. Buy on Dips. Buy on Dips. Buy for 90. Buy on Dips. – Columbia Broad. 11/18/66 57 Cont'l Ins. 3/17/67 79 3/8 Gulf Oil 12/31/64 58 1/2 Lorillard 9/8/67 51 1/2 Natl Cash Reg. 5/21/65 88 3/8 Stocks Removed, 1965-67 (six) AVERAGE 58 5/8 131 82 3/4 67 5/8 137 3/4 3 6'5 42 31 55 15.0 15.8 14 10 9 5 3 4.1 5.9 Removed 5/3/68. Removed 10/4/68. Removed 10/4/68. Removed 10/4/68 Removed 10/4/68 This Bulletin ill Iluhhshcd for your eOn\'(.ntlnre ,md mformabon !tnd IS not an ofTer to '1(.1 or R SlJlLcltn.tlQn to bu nny sccuntws The mformatlon was obuuned from sources Vol' to h, Icllllhie. but …. do not ltutlrantCt Its Recurney Walston & Co 1m. and lt'l officers. dlTcctors or employees may hAve An mterest In or purchase Rn.1 hCt! the lIecuntu.'s rl.!Cl red to henm ..- – – .- -.

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Tabell’s Market Letter – January 10, 1969

Tabell’s Market Letter – January 10, 1969

Tabell's Market Letter - January 10, 1969
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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 January 10, 1969 Forecasting is, at best, a hazardous profession, and the events of the last three weeks certainly constitute.an,examp1e.wPrior-to leaving for a short vacation over the Christmas-New Year holiday!we'i's'S1leilour'1969 forecast describing our conception of the outlook in reasonably optimistic terms. 1969 opened in an apparent attempt to give the lie to our prediction. The Dow had reached its 1968 high at an intra-day peak of 994.65 on the first day of December and backed and filled in early December trading. A sharp drop toward the ensl.of .the m()!1thensuedl;tl)d the took Rlace onthe last daY–9iJ;he year. A.! that point, the normal year-end rally ellsued, but it was among-the more minuscule such rallies in recorded history, lasting for only two days into January before a reversal set in. In this respect, it bore some similarity to the one-day rally which ushered in 1960. The early part of this week's trading produced a drop of some 30 Dow points in three days be- fore a rally altered the slide on Thursday. Even this rally was only moderately impressive, and the gains were not held in Friday's trading. At the end of the whole process the Dow had slipped just under 80/0 in twenty-two trading days from its December rally high, the sharpest decline since August of last year when a 7 1/20/0 drop in seventeen trading days took place. At the week's low, approximately half of the August-December advance had been cancelled out. The obvious question is, of course, whether anything has happened in the past five weeks to alter the optimistic outlook expressed at year-end. The answer, we think, is, by and large, No. This is not to overlook the obvious negative factor r 0 e picture. Among these, for example, is the early aborting of the yeW,M S an occurrence has often been a precursor of a down market for the yealj\ the re notable exceptions — 1968 being an obvious one which comes to Ano'tliiW erately bearish factor at the throughout most of 1968, a supportiv a – nG -posi-t-i-on.–I'emovi,ng.-what-was, u er market. Other negative feel rather strongly that they are out- weighed by the positive nes. e s ob us positive factor, of course, is that there simply has not been t' e month, to build a distributional pattern of anything even approaching . . A clear-cut top began to form in all of the averages in the latter part of c be d was penetrated on the downside in early January. At the week's lows almos e averages had reached the downside objective of that top, or were at least close t eir more peSSimistic objectives. Moreover, a strong support zone — at the 920-900 area in terms of the Dow — had been reached. Most short-term indica- tors were in a fairly deep oversold position, and the majority of technical readings indi- cated a short-term bottom area. Now it is true that major declines must begin with minor ones, and the uptrend will not be clearly reconfirmed until such time as the market again pushes into new high ground. Obviously, we will have to look at the vigor and momentum of the next rallying phase in order to make sure that an intermediate-term top pattern is not in the process of being built. At the moment, however, we think the odds are against it. Most indicators seem to suggest strongly that what we are now witnessing is nothing more than a temporary interrup tion of a long-term uptrend similar to the one which occurred lasYAuglist. If so, the ulti- mate result will be a move on to new highs by most averages and a great many individual stocks. This is not likely to occur overnight. Indeed, it would be unusual if, after a decline of the magnitude of the last three weeks, a period of consolidation in order to form a base did not ensue. We are, nonetheless, inclined to view the current market level as one of thos attractive buying opportunities which occur periodically during the course of an upswing. NOTE The annual tabulation of the performance of our Recommended List, together with current recommendations, has been distributed and is available from your Walston Account Executive this week. Dow-Jones Ind. 925.53 Dow-Jones Rails 263.10 ANTHONY W. TABELL WALSTON & CO. INC. AWTamb , II Thla market letter 18 llubllshed for your and Information and IS not an ofter to sell or a solICitatIOn to bu) flny seeurltlcs Ul8cussed. The formation was obtained from sources v.c helleve to hI! rehnble, but we do not splnrantee Its .accuracy Walston & Co, Inc. nnd ita officers. dlrectofs or emloyees may bave an Interest m or pUFchase and sell the referred to helem. …

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Tabell’s Market Letter – January 17, 1969

Tabell’s Market Letter – January 17, 1969

Tabell's Market Letter - January 17, 1969
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LE Walston &Co. – – -….-Inc – – – – – Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OVER 100 OFFICES COAST TO COAST ANO OVERSEAS TABELL'S MARKET LETTER January 17, 1969 The market slide was, at least temP9rarily, reversed last week with impressive gains being posted on Tuesday, Wednesday and Thursday. A weak start on Monday, plus profit-takingtowarcirtmnend,of,the Friday session, pared the week's gain to a modest amount in the popular average's, however. Certainly the rally was hardly surprising. It began from a point where the market was deeply oversold on a short-term basis and where most averages had reached downside objectivesfA number of questions, however, remain unanswered. These center, by and large, on tEe eventual shape of the base for the next advance. One possibility would be a d drift in perYiaps even iIiVoI Another would be a move back to around the 950 level and extension of the base that pOintJIn either case, we feel the present level constitutes an attractive buymg zone and are, accordingly, adding a number of stocks to our Re(!ommended List. They will be review ed in more detail in subsequent letters. The following issues are being added to our ,UU & Long-Term Growth section – BOSTON EDISON (44 3/8) BSE has undergone a sharp improvement in earning power in recent years, and with the outlook bright for a continuation of this trend, the share are considered attractive for income and appreciation over the longel'-term. JEWEL COMPANIES (46 1/2) Located throughout the Far West, New England and Central states, JWL is a leading supermarket chain. In addition, it operates chains of drug stores, bakery-ice cream shops and home service food routes. Projections call for impres- sive earnings gain in fiscal year ending January 1970. 0 WINN-DIXIE (36) Another leading supermarket expected to post a better-than-average earnings gain as it increases distributing tions in the fast-growing southland. JOHNS-MANVILLE (85) .. Shares of the anticipated housing able as earnings continue their untr,erftl. increasing dividend payments. NEVADA POWER (42 for Las Vegas and vicinity, NVP's longer-term outlook wo d Sing. Earnings for the next few years are ex- pected to outperform ic power companies, rising close to 10 annually. Added to t AIR PRODU section are the following issues' A leading factor in industrial gases, APD is expected to resurgence in both the steel and chemical industries. (42 1/2) . The leader in the production of light whiskey, ADC is increasing consumer demand for light spirits. CENCO INSTRUMENTS (55 8) .. In the midst of a major expansion into hospital and nursing home construction, CNC's future earnings performance could be highly favorable. DAN RIVER MILLS (25 3/8) Progress toward diversification and a more balanced product mix is expected to account for an earnings resurgence in 1969. GENERAL CIGAR (32 1/8) Continued acquisitions and an increase in cigar CU'UO,ULUpn tion could have major impact on future earnings. Meanwhile, new income peak due this year. INGERSOLL-RAND (50 3/4).. Aft er several years on plateau, IR earnings expected to record new peak this year helped by recent merger with Torrington Company SUBURBAN PROPANE Profit'margins to be helped by declining gas — costs, SPG seems to offer investors above-average growth and income prospects. The following volatile relatively high-risk issues are being added to the Speculative Price Appreciation section of our Recommended List AUTOMATIC DATA PROCESSING (693/4).. Outstanding earnings growth of last five years to be extended this year. COMPUTER SCIENCES (561/2). Demand for CSZ computer services rising as re- flected by impressive earnings gain in recent years and' favorable outlook for 1969. KYSOR INDUSTRIAL (35).. Prospective increase in air-conditioning sales to truc industry suggests attractive sales arrl earnings increases for KZ. MESA PETROLEUM (38 1/8.)1; Interest in medium-sized oil companies and rapidly rising earnings suggest attractive potential for MSA. Dow-Jones Ind. 935.54 Dow-Jones Rails 267.82 HARRY W. LAUBSCHER for ANTHONY W. TABELL WALSTON & CO. INC. This market Jetter Is published for your eonvenlence Ilnd informlltlon lind IS not lin offer to sell or a soliCitation to buy any securities I.hscussed The m- formation was obtamed from sourees we leheve to be rehable, but we do not guara.ntee Its lCeura.cy Walston & Co.. Inc. and lts officers, directors or …..,. . have interest In or purehase and sell the referred to helcm A WT nVVL WN.BOI

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Tabell’s Market Letter – January 24, 1969

Tabell’s Market Letter – January 24, 1969

Tabell's Market Letter - January 24, 1969
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— Walston &- Co. Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAst TO COAST OVERSeA.S TABEll'S MARKET LETTER January 24, 1969 It's a warm wind, the west wind, full of birds' cries…… Masefield Weatherwise, a thaw has come upon Wall In the stock market, as well, a thaw- ing of the cold shivers and early January,as the market plunged al- most eighty pOints, has caused a renewed interest in equities and share prices have risen, dramatically in some cases, this past week. But as the market rose, a chorus of warning cries could be heard, suggesting that the recovery was purely technical in nature and that much worse was in the offing. Technically, there is small substance to this thinking. True, the question remains whether the market can hold in its present area, broadening the base between-93lf and 94-0, thus improving the prospects for-an attack on the upper-900's; or whether a more thorough testing of the recent lows around 920-915 must first take place. In either inst ance, the outlook for the intermediate term remains favorable and periods of wea ness stlll can be considered buying opportunities. Two stocks for consideration are WINN-DIXIE STORES (351/4). Added to the Quality & Long-Term Growth section of ou Recommended List last week, WIN appears to meet the requirements for accounts stressing a combination of.capital gains potential and above-average current income. Operating approx mately 740 retail and seven wholesale units located primarily, in the southeastern States, WIN's record of growth and profitability over the years has been one of the best in the entire food retailing industry. Earnings have increased in ten of the last eleven years and dividends have been raised in each of the last 25 years. Furthermore, profitability is expected to in- crease more rapidly in the next few years as volume steadily rising popu- lation in areas served by WIN and increased operating effi en i from the forth- coming opening of the Atlanta distribution center. (JO, 11. Winn-Dixie shareholders recently exchanged 0 0 anding common stock fo a newly-approved non-dividend-bearing Class B stoc is . ely to result in a cash savings of almost 7 million to the company . ew Class B stock will be con- – s 1 ill-be In effect, this means that while c share will receive an annual dividend of 1. 56 in cash, each Class . annual 1. 40/0 stock dividend. While the com mon shares are r er or a combination of growth and income, accounts laying stress on c't i . me may find the Class B shares of even greater in- vestment interest. Technically, W has n forming a base of considerable support in the 35-32 area that suggests a price o' ive at 45, followed by a higher goal near 64. High in quality and with small downside r sk, these shares are considered especially attractive for investment purposes at current market prices. COMPUTER SCIENCES (64 3/4). With software companies emphasizing programming, and swiftly moving into profitable time sharing and servicing, prospects are brightening for a vigorous expansion in both sales and earnings. As the largest company in this area, CSC represents a particularly timely investment for appreciation-minded accounts. Sales for the fiscal year ended March 31,1968 rose to over 53 million, on which earn- ings of a share were realized. For the current fiscal year, sales are expected to reach the 70 million level, while earnings are estimated at between 1. 15 and 1. 25 a share. In- dustry analysts have projected earnings for the following fiscal year, 1970, to around the 1. 70 level. Although government work accounts for approximately 800/0 of revenues, rapid gains are being made in increasing the proportion of sales derived from clients in industry, science and such areas as consumer marketing. A 20-city, nationwide system of regional time-sharing centers will generate an estima- ted 100 million in annual revenues when completed,and education centers for instructing bot employers and employees in programming and methods of applying computer techniques al- ready are underway. Such centers are to be opened in Europe as well as in the USA. Technically, CSC has had a dramatic move in recent months,rising almost 500/0 since the September low. However, the chart pattern continues favorable and an area of support can be read in the 60-55 area. We carry a price objective at 70 initially, followed by a longer-term goal in the 80-82 area. CSC is on the Speculative Price Appreciation section of our Recommended List and is again suggested as a purchase. Dow-Jones Ind. 938.59 Dow-Jones Rails 272.36 HARRY W. LAUBSCHER for ANTHONY W. TABELL WALSTON & CO. INC. Thl. market letter Ie publ1Bhed your convenience and Information And Is not an offer to sell or a aollt!ltatlon to buy flny leeurlttes dlRuued. The In- formation was obtained from eourees we believe to be reliable. but we do not ew'Lrantee Ita Lfi!uraey, Waldon Ie Co., Ine. and It. oftleer. director. or emDlOYees mlQ' have an Intere.t in or pUJ'Cbaae and ael1 the eecurltle.ll referred to herein. . -L amb WH. . . I 'I

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Tabell’s Market Letter – January 31, 1969

Tabell’s Market Letter – January 31, 1969

Tabell's Market Letter - January 31, 1969
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– — –.— Walston &Co. —–Inc —– IL t 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 31, 1969 What 1S past I know, but what IS for to come I know not. … 2 Esdras. IV, 46 The prevailing mood of the stock market at any given bme is a difficult thing to assess. This difficulty is compounded by the desire of the analyst to assure uniqueness for h1s own view by ascribing to everybody else the opposite opinion. Thus, the optimist berates his colleagues for their overly gloomy outlook, and the pessimIst tends to accuse his fellow analysts of dangerous Pollyannalsm. We are, ourselves, not without sin in this regard. It is no secret that our present view of the market is, essentially, a constructive one. We, therefore, find it difficult not to remark some of the bearish sentiment that seems to prevail in certain financial circles. The stock market, as evidenced by Its sharp decline from the highs of last December, and its inability to gain much headway in the past two weeks, seems to be worried about a number of things. What is interesting at thIS time, however, is that all of the things the mar- ket seems to be worried about have not yet taken place and, Indeed, may very well not do so. Now, it is all very well to talk about the market being a barometer and not a thermometer. But, if this is the case, it is forecasting an economic enviro1ment for WhICh there is, as yet, precious little statistical evidence. Let us see if we can document thIS by listing a few of Wall Street's currently more fashiOnable worries. Number one on the list must, of course, be tight money. We are about to undergo, so the conventional wisdom assures us, a credIt crunch. By this, pre- sumably, is meant a consciOUS monetary policy similar to that pursued by the Federal Re- serve in 1966 – which policy reached its culmination In Xear. It does not re- quire too long a memory to recall what happened concomlt n ly t 1 Rock market. and we should be prepared, we are told, for a repeat perforanc. 1 0 , 1 – ossible that the pro- Ip,men.ts of this view are more privy to the future plan Qf(the . e Reserve th-n are we, and we would be the last to Indicate that we Ie e the future behavior of Mr. Martin and his cohorts. The point is that at en re is absolutely no evidence that mn e-remote-stTesembl'anc-e-to that of 1966. To take the most pletely stifled, leveling out to e a growth of money supply in 1966 was c having been at a 6 annual rate for the pre- vious year. So 0 t t l 0 IS nature has taken place. We have, by contrast, seen a moderate s d ' f growth, WIth the increase since July having been at a 4.4 annual rate VI is cessive 7.4 which prevaIled in 1967 and the first half of 1968. A subsidiary wor 0 thIS one IS the fretting over some sort of international money crisis. Such a crisis i , of course, possible, but the odds, we think, are against it and, again,lt is one more case of fear about an event which has not yet taken place. A further popular cause for alarm is the projected collapse of the speculative boom in the new issue and over-the-counter markets which, predictably enough, is being widely com- pared to that of 1961. The urge to condemn speculation appears to be reaching the level of a compulsion, and it is interesting that among those who decry speculation the loudest are those who are avidly practicing it with the money they manage. Now, this letter is on record, ad nauseam, as pointing out the asininity of the current speculative binge. However, as we ave said before, we think the simple solution to this problem for the investor is to simply opt out of the game. There is, as far as we know, no law which says that a portfoliO must be with questionable over-the-counter and American Stock Exchange issues, and, at a time when there is plenty of value avaIlable, we think such a policy has little merit. In summary, then, most of what is bothering many analysts seems to concern what may 111'''-1'.1'''11 rather than what already has happened. It is, indeed, possible that some of the events forecast by the Cassandras may come to pass. If they do, however, it is just possible that they will turn out to have been reflected in the present level of stock prices. On the other hand, were some of the current fears to prove groundless, the resultant rally could be highly table for those investors geared to take advantage of It. Ind. 946.05 -Jones R2ils 274.88 ANTHONY W. TABELL WALSTON & CO. INC. AWTamb This market letter is published for )our eonvemence and InformRtlon and Ul not 1111 off('l to 9011 or n SOht'Ll&tlOn to buy f\nl' &e-Urtlle5 d18CU'8ed. The In- fonnatton was obtained from …. e behe\(' to be r….1Hl.ble. but we do not guArantee its ;tccuTaC). Wal;ton & Co., Inc nnd Its officers, directors or may have an lntereet lD or pun'base and sell tbe securttles referred to hel em. WN801

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Tabell’s Market Letter – February 07, 1969

Tabell’s Market Letter – February 07, 1969

Tabell's Market Letter - February 07, 1969
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Walston-&–C-o-. f II..-e., 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 7, 1969 One of the many old Wall Street saws is Never sell a dull market. Based on the activity in the last dozen or so sessions, the present market, if the adage is true, rates as on of the least likely candidates for sale in recent history. Dullness has, without a doubt, been the watchword. The Dow-Jones Industrial Aver age closed the session of January 23rd at 940.20. Friday's close was 947.85. In the inter- vening eleven sessions the total net change was plus or minus less than two points in nine of them. Even more symptomatic of the dullness have been the advance-decline statistics. Over the eleven sessions, the highest number of individual advances scored has been 686 an the lowest 617. Declining stocks nave-ranged -Volume– has remained reasonably high, but the evidence of any distinct price trend in either direct- ion has, to date, been negligible. Three weeks ago in this space, shortly after the January low was made, we suggest- ed that,while a short-term bottom had probably been reached, there was no way of knowing what shape the eventual base for the next advance might take. At that time we said A num- ber of questions….. remain unanswered. These center, by and large, on the eventual shape of the base for the next advance. One possibility would be a continued drift in the 920- 940 area, perhaps even involving modestly lower lows for the averages. Another possibility would be a move back to around the 950 level and extension of the base at that point. Un- fortunately, in the intervening period, the market has failed to accommodate us by supplying any conclusive answer to the dilemma. Short-term timinides had moved, as of last week, from their deeply oversold position into just slightl 0 and have,as of the moment, retreated from there to a neutral u are such as to sup- port a continued advance, but with no clearcut ch advance is in the cards In the major averages, very short-term price b d large, been reached. It should be made clear that what . question here is only the im- mediate trend — not the outlook r constructive. -Our currentmodel f t – – . te onger term. This we believe to be sumes that a major advance begMin– mid-1968 and that this of the longer-term uptrend which had started in October tll advance will continue to new high territory be- fore any serious in e u t e . The question at the moment, as it so often is, is what will take plac . .. As noted ab ,th ustrial Average has afforded us precious little in the way of a clue. Where, then, we seek a portent The answer may be provided by a glance at the action of the thre ow-Jones Averages since the advance began last August. Inspection shows that the Rails and Utilities have been showing rather different action than the more- widely-followed Industrials in recent weeks. All three came off major base areas from their August lows to highs in December, the Utilities waiting a bit longer (until October) to get off the ground and compressing most of their move into a short period in mid-November. The Rail and Industrial averages scored almost identical 150/0 advances with the Utilities lagging behind at 10')'.. All three averages declined by similar amounts (around 8) in January, and, at their lows, had returned to strong support levels. At these levels, both Industrials and Rails were about 6 above their August lows. Since the January lows, however, both Util- ities and Rails have strongly out-performed the Industrials. The Rails have advanced almos 90/0, and the Utilities a 4 rise in the Industrial Index. As a result, the Rails chalked up a newall-time high on Thursday and the Utilities were within an ace of making a three-year peak. The Industrials, by contrast, were still 40/0 under their Decembe level. It will be worthwhile, therefore, to watch the action of the Rails and Utilities closel Continued ability of the former to move ahead, coupled with new highs in the electric com- pany index, would be a constructive sign indicating that the Industrials might, in due course, follow along. Failure of these two indices to follow through might, conversely, indicate a weaker immediate market tone. Dow-Jones Ind. 947.85 Dow-Jones Rails 279.88 ANTHONY W. TABELL WALSTON & CO. INC. AWTamb This market letter is published for your conY!'nlenee and informalion And 18 not an offer to sell or a solldtatlOn to buy any securitie9 lhacuued Th . formation was obtained trom sources We beheve to be I't!1iable, but we do not guarantee Its J.ccuracy, Walston & Co, Inc. and its offieers. In; employees may have an interest In or pUJ'chase and sell the securities referred to herein. ………, 0 WN.BOl —— —

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Tabell’s Market Letter – February 14, 1969

Tabell’s Market Letter – February 14, 1969

Tabell's Market Letter - February 14, 1969
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r 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 14, 1969 INGERSOLL-RAND ( 53 l.. Despite higher labor, material and depreclation costs, the machinery industry is expected to show continued improvement in 1969. Among the more important lssues in this industry category, Ingersoll-Rand stands out as being parhcularly attractive. One of the largest I-R is the leader in the field of air and gas compressors and related equipment, the demand for which still appears to be in a major Ion term uptrend. The product range is broad, encompassing engines, pumps, rock drills, electric and hand tools, paper and plashcs machinery and general mining equipment. The approved merger with Torrington-Gompany 'win-add ,-knitti-ng–a-nd-sew- ing machtne needles, dnll bits and nuts and bolts to the combined product line. While pro- saic in their nature, all of these items are necessary in our economic scheme, and are of particular importance to the construction, utility, mining and service industries. For several years, I-R's earnings have been on a plateau around the 3.80 a share level. 1969 is expected to witness a break away and up from this plateau with current pro- Jections calling for 4.25 a share, vs. an estimated 3.85 for 1968, including Torrington's contribution pro forma for calendar 1968. Further gains are seen for the years immediatel ahead, especially as the benefits from the Torrington merger are realized. Although the increase in outstanding shares will approXlmate 100/0, no reduction in the current 2.00 annual dividend will occur. In fact, the expected earnings lmprovement this year is likely to result in a dlVidend increase. The decade of the 1970's is expected to prove to I-R. Demand for its products should help management reach its goal dou 1 g earnings over the next five years. Selling for less than 13 times this en imate and providing an above-average industnal Yleld, the shares merit ideration. Technically, IR has formed a base ngth in the mid-40's that in- dicates a price objective at 88, near 100. There is good support at 48-44. IR is on the PnceApprec' owc oUr Recommended List-.– — – CENCO INSTRUMEN … nursing homes, hospitals and hospital supplies and equipme t fastest growing m'u 1 even think of Cenco. And yet, lt is one of the les in this health field. Its product line runs the gamut from production ana s ibu i f scientific and laboratory equipment to hospital beds and furniture,and includes te' disposable items for operating rooms. teaching aids and schoo accessories, water p lOn abatement equipment, gymnasium seating and locker room equlpment, graduation and church choir apparel and owning and managing hospitals and nursing homes. The company is maktng significant strides toward reaching its goal of owning or leasing more than 24 hospitals and nursing homes by 1971. Last July lt purchased two Los Angeles hospitals and announced plans to build two additional facilities in California. It recently purchased a 320-bed facility in Orlando, Florida. Its own subsidiaries will supply the furnishings and much of the required equipment. Earnings for Cenco have increased every year since 1953, an envlable record in the glamor-stock field. For the fiscal year ending April 30, 1969, net is estimated to reach 1. 95 a share, compared with 1. 76 for fiscal 1968. Some analysts are projecting a dou- bling in earnings by 1973. The dividend, now at 30 annually, is expected to parallel this anticipated rise in income. Technically, the Cenco chart reveals an area of extensive backing and filling in the 55-45 area that has created a base suggesting a price objective in the mid-80's. With good support at 58-54, CNC also is recommended as a purchase for Price Appreciation. Dow-Jones Ind. 951. 95 Dow-Jones Rails 275. 72 HARRY W. LAUBSCHER for ANTHONY W. TABELL WALSTON & CO. INC. AWTHWLamb Thhl market letter 18 published for )our convenience and mformntlon nnd IS not an offel to sell or a soliCItation to buy Il.n) securities UISCUSSed, The in- fonnatlon was obtalned,from sources we to be rehable. but we do not sroaralltee Lts accurnc). Walston &. Co.. Inc. and Its officers, dLrector. or employees may have an mterest In or purchase and sell the securities ref('rred to heLem WN.801

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Tabell’s Market Letter – February 20, 1969

Tabell’s Market Letter – February 20, 1969

Tabell's Market Letter - February 20, 1969
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Walston &- Co. —–Inc —– Membe New York Stock Exchange and Other Principal Stork and Commodity Exchanges OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER February 20, 1969 See what ttrnigs- ve S, … …. Marcu s Aurelius .. Desplte the weakness of the last week, it lS difficult to become bearish. Telling lt the way it really is, the charts suggest that the process of base-building is contmuing. The re cent decline has extended the depth of this base area, but has in no way altered the prevailing indications of higher markets to come. The base building could take a number of forms, the worst of which likely would be a pullback mto the 880-890 Dow-Jones area. The market will attempt to hold in the 910-920 reglOn, from which it started ltS last advance. A failure to hoI there would suggest the testing of the 890 level. In any event and until indications are change substantially, we cannot v,ew-th,s wea-kness-as the'start-of-any-major-decline, and-would rather remain wlth the optimists awalbng the anticipated upturn and taking advantage of what appears to be bargain pncing. When that upturn does come, the action is expected to be in the dividend-paymg, quality stock category. One of these time-tested issues that seems to offer the investor a favorable buying opportumty at present is General Cigar. GENERAL CIGAR COMPANY. INC. Current Price -29 1/8 Second largest of the domestic cigar producers, Current Dividend 1. 20 General Cigar appears to be at a Juncture where it of- Current Yield 4. 1 fers investors an attractive combination of capltal ap- Long-Term Debt 36,722,000 Common Stock 1,531,431 shs. Sales-1968-Est. 240,000,000 Sales-1967 220,590,000 Earn. Per Sh. 1968-E 2.20 Earn. Per Sh. 1967 1. 97 preciation and sat isfactory current income. Helped by a series of advantageous acquisitions made in recent years, sales and s and prospects for a n been in a strong uptren th,S into the fore- seeable Latest ava o. st st' suggest that cigar sales are on the ups' for first bme since 1964 when Mkt. Range 1969–6734 3/8 – 18 the widely publicized report on If the se . General Cigar would be than most of lts compebtors. The company is rt' I 1 ro iK the cigar field, especially in the tip-clgar categor e r' brand is an lmportant factor. Should a gentleman of- fer a lady a TipariI ore and more women are smoking tip-cigars and if, as is expected, the cigar s ki munity does expand, tip cigars are expected to widen their popularity. In addition, company has been upgrading its productive capacity and efficierJ,cy to the point at which . inite lmprovement in profit margm; would coincide with sales in- creases. We suggest that this lmproved operating performance has already started and should be apparent in future quarterly earnings reports. Since the ten-year earmngs low point was posted m 1966,General Cigar's market per- formance has reflected the rather impressive rebound that has taken place in overall net income. On no more than an average mcrease in sales volume in 1967 over 1966 results, earn- ings advanced approxlm,tely 28, rising from 1. 54 in 1966 to 1. 97 a share in 1967. For the 1968 year recently ended, this uptrend continued with earmngs estimated at a new-all-time hlgh near 2.20 a share. Looking ahead through the balance of the current year, per share re sults have been projected by mdustry ana.lysts to around the 2.40 level. In the meantime, management has been active in the acqUlsition field. The recent earn ings improvement reflects these additions to the corporate network and further acquisitions, perhaps outside the cigar field, could compound future growth. Dlvidends have been paid in each year since 1909. Prospects a.re favorable for an increase in the long- standing current 1. 20 a share annual rate, especially as earnings maintain their present uptrend. Technically, General Cigar has formed an extended base in the 28-34 area that indi- cates a price objective near 55. There is a higher goal readable at 72, Good support is found to exist at 26. Recently added to the Price Appreciation section of our Recommended List, General Cigar again is suggested for investment purchase at prevailing market prices. Dow-Jones Ind. 916.65 Dow-Jones Rails 263. 55 HARRY W. LAUBSCHER for ANTHONY W, T ABELL WALSTON & CO. INC. AWTHWLamb This market letter is published for )our ronvemence Rnd mformatlOn find IS nnt lin offer to sell or It solicitatIOn to huy any sel'Untles ulscussed. The JH- formation was obtamed from we hehlNe to he rl'ilRhlc. but. we do not guarantee Jts nccurnc) Walston & Co., Inc, nod Its officers, directors or employees may have an murest In or IJUTchasl.' and sen the sl'Cuntw'l ref..rred to hel('ll' WNSOI

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Tabell’s Market Letter – February 28, 1969

Tabell’s Market Letter – February 28, 1969

Tabell's Market Letter - February 28, 1969
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– W—a-lIsntocn.-&—C-o-. Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAST TO COAST AND OVER.SEAS TABELL'S MARKET LETTER February 28, 1969 Rapid change is a permanent attribute of the stock market, and events of the past two weeks provided still another example. Just three weeks ago this letter found it necessary to comment on the dullness which had characterized trading for most of 1969. That dullness rapidly disappeared in a blazing display of fireworks. On February 17th, the market com- menced a six-day declinewhichin-rlerms of the Dow-Jones Industrial Average, erased better than 60 points inthe'shortSpaC'e'of six trading days. What was, at least, a temporary bottom, appeared to have been reached last Wednesday when a four-point recovery occurred. At the week's lows, the Industrials were well below their previous lowest level for the year, while the Rails and Utilities had retraced-all of or abit-morethan the'advance-from-ctheir respective January bottoms. The central question, as it is following any short-term decline, revolves around the extent to which the longer-term market pattern has been altered by the weakness. As read- ers of this letter are well aware, we have adhered for over two years now to a basiC fore- cast model for the stock market. This model states, in sunmary, that a long-term uptrend began in October 1966 and that, despite interruptions, it has remained in effect ever since that time. This model enabled us to remain relatively optimistic throughout late 1967 and early 1968 and, in the context of this forecast, the 1968 advance to a high in early December was hardly surprising. Obviously, our task at the moment is to fit the recent decline into the context of this model and, if this cannot be done, to revise the forecast. Looked at in percentage terms, there is absolutely nothing unusual about the market downswing which began in early December and continued, last Tuesday. Based on the Dow-Jones close, it constituted an 8.670/0 dr 0 of 53 trading day Declines of this magnitude have repeatedly punctuatar '0 sups' s, admittedly, in most cases, somewhere around the latter stages of ups i As an example, the mar ket advance from 1953 through 1957 saw no an d nes of a magnitude and dura- tion to t!tis one. The -1 s simila declines between 1959 and 1960. va was punctuated by a 'similar drop in May-June 1965, and the pres t a was interrupted by declines in the Fall of 1967 and in early 1968. weakness shapes up as nothing more than a common, gard – rection. The preci' u e e six-day drop ended last Tuesday, however, is some thing else again. Tn only five steeper six-day declines in the past thirteen years and of those, fo w characteristic of major bear market bottoms — three oc- curring around the 19 wand one at the 1966 nadir. It is necessary to go all the way back to 1956 to find a decline as vicious as the last one ending an intermediate-term downtrend. In other words, the sharpness of the decline in a short period strongly suggests selling of a climactic nature. This is a bit surprising when it is remembered that volume on the drop increased hardly at all. Despite the apparent cross-currents, however, we have no difficulty in fitting market events so far into our basic model for the stock market. The present phase of the advance began with a move out of a broad trading range between, roughly, 817 and 935, which had contained the Dow throughout most of 1968. The present downswing, after all, constitutes nothing more than a return to the upper part of that level. Furthermore, the type of stocks that were more severely hit by the decline are consistent with the pattern. It was the obviou areas of speculative excess which received the greatest shelling, most notably the conglo- merates with ricky-ticky capitalizations. We may well be witnessing the first stages of a demise of the entrepreneurs who thought they could put together investment magic through the issuance of brightly colored pieces of paper. Meanwhile, the less exploited, higher quality issues have proved relatively resistent to the drop. This weakness in areas of blatant speculation, coupled with a search for sounde values, is perfectly consistent with the market stage we are assuming. In summary, there- fore, we see little reason to reduce our basic thinking about the investment outlook. Cli- mactic declines are tricky things and we would not want to write off the possibility of further downside fireworks. Nonetheless, we are inclined to view the present level as a buying op- portunity. Dow-Jones Ind. 905.21 ANTHONY W. TABELL Dow-Jones Rails 253.68 WALSTON & CO. INC. This mlLrket letter Is published for yOUr convenience and InformAtIOn and Is not an offer to Bell or a sollcltatlon to buy any seeurltles lhscussed. The in A lormatlon was obtained from sources we believe to be reliable. but we do not guarantee Ita accuracy. Walston & Co., Inc. and Its offlct'rs. dlrecto have an interest in or pUFchase and sell the securities referred to herein.

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