Viewing Month: July 1976

Tabell’s Market Letter – July 02, 1976

Tabell’s Market Letter – July 02, 1976

Tabell's Market Letter - July 02, 1976
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TABELL'S MARKET LETTER — 909 STATE ROAD, PRINCETON, NEW JERSEY 08540 DIVISION OF MEMBER NEW YORK STOCK eXCHANGE, INC MEMBER AMERICAN STOCK eXCKANGE July 2, 1976 We have, over the past few weeks, spent more issues of this letter than we would naVecarea to playing-variations'onth-e'themeof the-Dowrepeatedly-stallingaroundthe-OO(hleveh –, Since, at this writing, the phenomenon appears still to be in effect, we decided to examine the narrow trading range of the past few months in the light of the historical record. In order to accomplish this, it is first necessary to quantify the nature of the doldrums in which the current stock market finds itself becalmed. The lowest price at which the Dow-Jones Industrial Average has recently sold is 958.09, a level achieved twice, first on the seventh of June and, secondly, on June 9. The highest recent price, and the peak for the entire bUll market, has been 1011.02, a figure achieved on April 21. This represents a range from low to high of 5.34. Having establlshed these parameters, we can scan backward into market history and find the last date this year on which the Dow sold above 958.09 and never subsequently sold below it. That date happens to be February 18, 95 trading days ago as of today. The Dow has, In other words, spent 95 consecutive days locked in a 52.93 point range. It then becomes an easy matter (easy, at least, if one has access to a computerized data bank) to go back and look for similar periods in the past. The criteria we decided to use in searching for such periods were that the Dow should have spent a period of 90 trading days or longer locked within a trading range of 6 or less from low to high. As it turned out, going back to 1926, there have been 18 such periods prior to the present one. The current period, 95 days within as. 34 range, is hardly record-setting either as to narrowness or longevity. There was a 90-day period in 1965, for example, when the Dow held within a range of under 4, and the long1I–,est,o-e.r.iod-1e.OovLJ1enJ.corlfined within a 6 range comprisei!..t161 trading days ending On May 11, 1940. Were that experience to be duplicated, incidentally, th-e Dow could spend from now until October 6 without making either a substantive new high or new low. A common thread which seems to run between narrow trading ranges such as the present one is the fact that the market which leads into them appears to be much more often an upward market, such as is the case in the present instance, than a downward market. 16 of the 19 occurrences on record have, in fact, occurred following up markets. Of the three exceptions, two constituted reversal phenomena. The trading range ended May, 1940, followed a downswing and led into an essentially upward market, and the major bull cycle of 1949-68 was preceded by a lOS-day trading range of just under 6. The only instance of a long trading range interrupting a continuing down market took place in 1947-48. We are, thus, left with 15 instances, prior to the present one, where a narrow trad- ing range followed an upward trend. The most striking fact about these 15 instances is that 112L them constituted interruptions in continuing upward move and only four constituted reversals. There seems, in other words, a pronounced tendency for narrow channels such as the present one to turn out to be consolidations, rather than distributional tops forecastmg a reversal of the major trend. There have, of course, been the four exceptions. The 1966 bear market was pre- ceded by a 94-day, 5.96 trading range. Likewise, the 10 correction of May- June, 1965, the 13 correction of the first nine months of 1953, and the terminal phase of the 1938-42 bear market were all foreshadowed bY'protracted narrow trading-ranges. However; the-1942-46-bull-market contained no fewer than three interruptions as narrow as and longer than the current one, the bull market of 1949-53 contained two, and the upswing of 1962-66 no fewer than four. Although we certainly intend to continue to look for evidence that the present case is an exception, the historical odds, at least, favor the present trading range being a precursor to higher pnces rather than lower. Dow-Jones Industrials (1200 p.m.) S & P Composite (1200 p.m.) Cumulative Index (7/1/76) 609.10 AWT/jb 995.33 103.68 ANTHONY W. TABELL DELAFIELD, HARVEY, TABELL No statement or epress!on of oplMon or any other motter herein contolned IS, or IS to be deemed 1o be, dIrectly or Ind,rectlr.' on offer or the soliCitation of on offer 10 buy or sell any security referred 10 or mentIOned The mOIler IS presented merely for the converlenCtl of ihe subsnber who e e bel!eve the 5Our5 of our Informot!on 10 be rehable, we In no woy represent or guarantee the acurocy thereof nor of the sto'emenis mude hereon Any actIon 10 be laen by the subsr!ber should be based on h,s own InVestlgotlon ond Informot!on Jonney Montgomery Scott, Inc, as 0 corparat!of1. ond !IS offIcers or employees, moy now hove, or mClY later lake. posItIons or trades tn respet 10 any securtHes mef1ttoned In Itus or ony future ISSUe, cmd such POSttlOf1 moy be dtfferent from any views now or hereafter el'pressed In Thts or any other tssue )of1ney Montgomery Sott, Inc, whIch IS reglste'ed wl1h the SEC os 0 Investment odv!sor, moy gtve odvlee to tIS mvesfmef1f advtsory and othet CI.Islomers tndependently of any statements made In thts or tn ony o'her Issue Further mformohon on any securtty menhonC1d heretn IS aVQllable on request

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Tabell’s Market Letter – July 09, 1976

Tabell’s Market Letter – July 09, 1976

Tabell's Market Letter - July 09, 1976
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TABELL'S MARKET LETTER l 909 STATE ROAD, PRINCETON, NEW JERSEY 08540 DIVISION OF MEMBER NEW YORI( STOCK EXCHANGE, INC MEMBER AMEFtICAN STOCI( eXCHANGE – July 9, 1976 As the Bicentennial celebrations subside, comments are beginning to emerge on the –''ettrhaids iptinoennablmseu'nmotmCeartr'a'llyth.-eL6nosentg6-ft'itmhe-e readers of this le pasftwosummers tter and wexilpl rbeessaewcfaarefntfhlaatdwegerheeavoesKexeapmti;;iinedii'sin…,..,..-.-,,–J-,-1 about it. The following table, updated through 1975, shows the number of advances and declines for the one and two month periods ended each month of each year from 1926 through 1975 together with the average percentage change for the period. Ending Month january February March April May june july August September October November December Total ONE-MONTH PERIODS Advances Declines Avg. Chg. 33 17 0.97 28 22 0.05 27 23 -0.13 28 22 0.95 26 24 -0,78 24 26 0,89 33 17 1.98 33 17 1.52 21 29 -1.42 28 22 -0.19 29 21 0.44 –.E. -.-ll. 347 253 1.28 0.46 TWO-MONTH PERIODS Advances Declines Avg. Chg. 33 17 2.36 28 22 1. 02 24 26 -0,19 30 20 0.90 30 20 0.40 24 26 0.07 31 19 2.82 35 15 3.66 29 21 0,06 25 25 -1. 57 31 19 0.30 —-.ll 353 –.lZ. 247 1. 76 0,96 The table shows the action of the Dow- Jones Industrial Average in every one-month and twomonth period from 1926 to 1975. For each penod the number of instances when the market ad 1……,…vanan9 declined is showlL..1Qgether withtl;leavera,gep,ercentagechange.foLthepenod …,.A…pre-'–I-I –liminary look ';'i the table, mdeed, suppo'rts the notion of a probable summer rally. The average monthly advance for the Dow over the period has been .46, whereas the average performance in July is an advance of 1. 98, more than four times as great. Likewise, the average advance of 3.66 for the two months ended August is approximately four times larger than the average two- month advance. It would, indeed, appear that the expectation of an advancing market during July and August has some solid grounding in fact. Having made this statement, however, a few doubts must be raised. The first factor which needs to be painted out 1S that a large part of the high average advance for the summer period rests on the accident of the 1932 bottom's having occurred at the end of June. Thus, July and August of that year produced the largest two-month advance in stock-market history, an astounding 70 rise. If this single year is eliminated from consideration, the results for July and August are much closer to norma\. Secondly, while it is true that July and August do show significant pluralities of advancing months over declining months, it must be remembered that advancing periods tend to outnumber declining ones over the 50 years by almost three to two. When standard tests of statistical Slg- nificance are applied, the period with the clearest seasonal action is the month of December, which is why this letter has always emphasized the importance of the year-end rally. Likewise, the tendency toward a declining market in September IS statistically more significant than that of a rise m July or August. Interestingly enough, none of the other months show any discernible seasonal pattern whatsoever. Lastly, in looking for seasonal patterns, it is wise to examine the most recent data to see if it , .seems'tobe deviatingfrom thepastand;-indeed;–this'is apparently thecaseTheten years be- …tween 1966 and 1975 have produced three railles and seven declines in July and five rallies and five declines in August, but the two-month period ended August has produced four rallies and six declines with an average percentage change of -1.5. Interestingly, enough, a new seasonal tendency, not heretofore apparent, seems to be emerging — that of a decline in May-june, although, it must be admitted, the bull market of 1975 was strong enough to override this tendency. Every May, from 1965 through 1976, with the exceptions of 1972 and 1975, have produced a declining market, and all two-month periods ending in June showed decline in the 1965-1974 period. The moral of the whole exercise, we suppose, is that the stock market is a difficult and changing beast, and, while certain seasonal tendencies are apparent, they constitute only one factor in what lS mvariably a hlghly complex equation, Dow-Jones Industrials (1200 p,m.) 998,28 S & P Camp. (1200 p.m.) 104.58 Cumulative Index (7/8/76) 615.88 ROBERT j. SIMPKINS, jR. DELAFIELD, HARVEY, TABELL RjS/jb No talement or eypresslon of opinion or any other matte' herein contained IS, or IS to be deemed to be, directly or indirectly, on offer or the soliCItation of on oHer to bvy lion to or sell any secvnty be reliable we ,n rtferred no way 10 or mentioned The matter IS presented merely represent or guarantee the occvrocy thereof nor for of the the COnverlencc of the statements mude he svbscrlber em Any While 'ile believe action to be token bthyethSOe VfCu bSCfolfboevrr,sht nOUf\d, mkbe' based on hiS own'lnvestlgatoon positions or tfades In respect to and information Janney MonTgomery any secvrlllCS mentioned In thiS or any S,olt, fvture Inc, as a Inue, and corporallon, ond lIs officers or such pOSition moy be different employees, may from any views now now ohravhee,reoorJtmer aeyyapreert0hem, Ih,s or any other ISSUC Janney Montgomery Scott, tn whICh IS registered w,th the SEC as on Investment odvlsor, may give odvlce to ItS Invfsent visoryon e, customers Independently of any statements mode In thiS or In any other Issue Further I(.formatlon on any secuflty mentioned herein IS ovalo C on request

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Tabell’s Market Letter – July 16, 1976

Tabell’s Market Letter – July 16, 1976

Tabell's Market Letter - July 16, 1976
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,—————————- —- TABELL'S MARKET LETTER 909 STATE ROAD, PRINCETON, NEW JERSEY 08540 DIVISION OF MEM8ER NEW YORk STOCK EXCHANGE, INC MEMBER AMERICAN STOCK EXCHANGE – –lust th,e-., w;ek'S-ago, on JU2-5devotedthi1;-lette'6n9atiStiCalPaS sion,-.,..-t play built around the action of our Cumulative Index which, readers will recall, is an index which measures the average change for every New York Stock Exchange-listed stock. The burden of the exercise was to show that, since the Dow first rose above 1000 on February 25, 1976, the Cumulative Index had been underperforming both the Dow and the S & P 500, In particular having posted successive new lows at each consecutive minor market dip. We said at that time, Quite clearly, the average stock has been underperforming the market since February. We went on to say, The portent for the future is, at this moment, less certain. There have been fairly protracted periods in the past where the Cumulative Index and similar Indices have underperformed the market and then, ultimately, 'caught up' and moved ahead to new peaks … What we are saying, in effect, is that inspection of the action of the Cumulative Index and other measurements of general market tone will be a great deal more valuable in formulating a forecast than recounting the Dow's dalliance with a four-figure level. Having made that pronouncement at the time, we feel a responsibility to bring our readers up to date,and it is, indeed, interesting that, since that letter was written, the relative strength of the Cumulative Index has performed an almost 1800 pirouette. After reacting to a new low in early June, the index has turned around sharply, and, on Tuesday and Wednesday of this week, moved to a new high along with the Dow, this despite the fact that it started from a relatively much lower base. Thus, we apparently moved, early last month, from a period where the Dow was outperforming the average stock into a period where it is underperforming it. The action of the Cumulative Index would suggest that such averages as the S & P 500 Stock Composite and the 400 (formerly-425TIndustriaTlnaex,l5Ofhofwnich-m6ve(nnfea-d-wl1evrh19hslasrweekT8-'–,.,,..,…–t., telling a more accurate story of market action than is the Dow and that the market, over the past month, has been a good deal stronger than the Dow would lead us to suppose. This hidden strength has also been reflected in the action of breadth indices which, as we have been pointing out, had been consistently underperforming the market since last February. It is highly probable that our weekly breadth index will post a new high this week, thus affirming a continued uptrend. Daily breadth, although it has not yet equalled the high posted last February, decisively penetrated the downtrend line from that peak late last month. It has, moreover, moved above every one of its recent successive minor peaks other than the February one. Only a few more days of reasonably good market action would be required for this index to move into gear with the Dow on the upside and, thus, signalize a continuation of the bull market. The superior action of breadth versus the averages can be demonstrated in other ways. The present advance may be dated from June 8, 1976, the day after the Dow posted its low at 958.09. From that date to Wednesday of this week, there were 26 trading days, and there were more advancing stocks than declining stocks on 21 of them. This occurrence took place despite the fact the Dow advanced on only 14 days and declined on 12. There have, thus, been seven days during the past 26 which showed more advances than declines despite the fact that the Dow moved lower. This sort of action is by no means historically unprecedented. As a matter of fact, the period ended July 14 is the 48th instance since 1926 of a 26-day penod which saw 21 or more advancing days. What is interesting about these instances in the past, however, is that they have a strong tendency to take place during ongoing bull markets rather than near tops. In sum, the story being tOld by th-e bulk-of NewYorKStock Exchangelssues ;which;-untll amonthago;- had beena fairly pessimistic one, has now transformed itself into an optimistic tale, indeed. Dow-Jones Industrials (1200 p.m.) 991.81 S & P Compo (llOO p.m.) 104.49 Cumulative Index (7/15/76) 625.65 AWT/jb ANTHONY W. TABELL DELAFIELD, HARVEY, TAB ELL No statement or expression Crf opinion or any olher matter herein 'onlolrled IS, or IS to be deemed 10 be, d,redly or ind,rectly, on offer or the OIIClIOllon of on offer 10 buy or sell any security referred to or menhoned The molter IS presenfed merely for the converlence of the subscriber While He believe the sources of our mformo lion to be reliable, we In no woy represent or guarantee the accuracy thereof nor of the STatements mude herem Any action ta be laken by the subscriber hauld be based on hiS own investigation and ,nformaT,on Janney Montgomery ScOT!, Inc, as a corporClllon, and ItS officers or employees, may now have, or may later toke, positions or trades In respeCT 10 any SeCUrities mentioned In ThiS or any future Issue, and such position may be dlfferenl from oy views now or hereafter epressed In Ihls or any other Issue Janney Montgomery coll, tnc , whICh IS registered With the SEC as on Investmenl adVisor, may give odJlCe to Its InJestment adVisory olld othel cUSfomers mdependently of ony statements mode III thiS or In any other Issue Further mformatlan on allY security mentioned herein IS available on request

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Tabell’s Market Letter – July 23, 1976

Tabell’s Market Letter – July 23, 1976

Tabell's Market Letter - July 23, 1976
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TABELL'S MARKET LETTER 909 STATE ROAD, PRINCETON. NEW JERSEY 08540 DIVISION OF' MEMBER NEW YOAI( STOCK EXCHANGE, INC MEMBER AMERICAN STOCK EXCHANGE July 23, 1976 One of the most recent items of interesting fodder for the financial press was provided last July t2th'i'when -the'Dow-Jones'-Industrial–Averagerin'one-of-its'repeated-waltzeswith-the.l-OOOlevel-,–closed at 1011.21, a new high for the 1974-76 bull market, albeit only marginally above the April 22nd high of 1011.02. The concurrent move by the S & P 500 to 105.90 penetrated that index's old peak even more decisively, by a full two paints, although the 500 remains well below its all-time peak of 120.24, scored back In early 1973. A cursory glance at these figures would lead one to believe that, with the averages selling at or close to all-time highs, market investors would now enjoy profits on most of their holdings and that stocks held at substantial losses would be few and far between. We all know Intuitively, of course, that this IS not the case and that it can be documented sta- tistically by the action of our Cumulative Index, which is now selling at just over 600 versus an all-time high of over 1400. It is documented further by a recent study we conducted of ll05 major listed issues in order to ascertain how many were selling at all-time highs. The answer turned out to be just 97. In other words, less than one stock in eleven posted an all-time high at any time during 1976 to date despite the fact that both major averages were close to dOing so. As a possible matter of interest, we are llsting these 97 elite issues below. Abbott Labatories Eastern Gas & Fuel Assoc. Au Products & Chenicals Esmark Inc. Albertson' 5 Inc. Falcon Seaboard Allied Stores Federal Paper Board AMAX Inc. Federated Dept. Store Amstar Corp. Fort Howard Paper Amsted Industries Inc. Franklin Mint Anderson Clayton 1-'APLCorp. General Mills –''–Genstar-himited Northern Natural Gas Northrop Corp. NVF Co. Pacific Lumber Pillsbury Co. Pizza Hut Pittston Co. PPG Industries -Ralstonurina , ,..I A'cher-Daniels-Midland Georgia-Pacific Raytheon Co. Bank America Corp. Graniteville Co. Reliance Electric Co. Bendix Corp. Great Lakes Chemical Revlon, Inc. Big Three Industries Great Northern Nekoosa Corp. Rexnord, Inc. Briggs & Stratton Harsco Corporation St. Joe Minterals Corp. Bucyrus-Erie Houston Natural Gas St. Regis Paper Burndy Corporation Houston Oil & Mineral Skaggs Companies, Inc. Caterpillar Tractor Inland Steel Smith International Cleveland-Cliffs Iron Interla ke, Inc. Southern Railway Compugraphic Corp. International Paper Southland Royalty Continental Oil Joy Manufacturing Standard Brands Cooper Industries Kaneb Services Stauffer Chemical Crane Co. Kellogg Co. Super Valu Stores Crouse-Hinds Kennametal Inc. Tandy Corp. Crown Zellerbach Kollmorgen Corp. Teledyne Inc. Dana Corp. Koppers Co. Timken Co. Data General Marathon Oil Trinity Industries Deere & Co. Mead Corp. Tyler Corp. Diamond Shamrock Missouri Pac. Corp. Union Camp Digital Equipment Monsanto Co. U. S. Shoe Corporation Dover Corp. Dow'Chemical – Moore McCormack Res. -Nat'l. Distill & Chemical- – Univar Corp. Vulcan Materials Dresser Industries Nat'l SemIConductor Westvaco Corp. Eagle-Picher Industries There are probably a number of morals that can be drawn from the shortness of the above list. The hrst is that there is probably extant a great deal of overhead supply of stock which is not apparent on a Simple chart of the averages which find themselves flirting with new high territory. The second is, of course, that the ravages committed upon the stock market over the past decade are as yet nowhere near repaired. This Indication that the bulk of stocks remains at historically low levels suggests that, des- pite near-term vicissitudes, a number of years of exciting investment opportunity lie ahead. Dow-Jones Industrials (1200 p.m.) S & P Camp. (1200 p.m.) Cumulative Index (7/22/76) AWT/jb 990.75 104.05 617.36 ANTHONY W. TABELL DELAFIELD, HARVEY, TABELL No statement or e)(preSlon of opinion or cny other motler herein contolned IS, or I 10 be deemed to be, directly or HldHectly, on offer or the soliCitation of on offer to buy or seJt any securlly referred to or mentioned The moHer IS presenled merely for Ihe ConvenienCE of Ihe subscriber While '/'Ie believe Ihe sources of aUf information to be reliable, we In no way represent or guaranlee the accuracy Ihereof nor of the sotements mude herein ,..ny actIOn to be loen by Ihe subscriber should be based on hiS own investigation and Information Jonney Montgomery Scott, Inc, 05 a corporation, and lis officers or employees, may now have, or may later toke, POSitions or trod(! In r(!spect 10 any securlhes mentioned In thiS or ony future Issue, and such pOSitIOn may be ddft!renl fro'll any views now or hereafter exprened In thiS or ony olher Issue Janney Montgomery Scott, Inc. which IS reg,sle-ed With the SEC as on Investment adVisor, may gIVe advlce to Its Investment adVisory and other customers Independently of any statements mode In thiS or In any other Issue further mformatlon on ony security menlloned herein IS avollable on request

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Tabell’s Market Letter – July 30, 1976

Tabell’s Market Letter – July 30, 1976

Tabell's Market Letter - July 30, 1976
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TABELL'S MARKET LETTER 909 STATE ROAD, PRINCETON NEW JERSEY 08540 DIVISION OF MEMBER NEW YORK STOCK EXCHANGE, INC MEMBER AMERICAN STOCK EXCHANGE -July 30, 1976 Thursday's Wall Street Journal featured, as its lead story, a piece with the headllne, – SeC6nd QuarteiGainin'COlporatE,' Eari'it'iigs iRo15usnlnd'Bfoai!-; Tl1e-artlclewenton4o-point'—, —- out that a survey of 541 major companies showed that second quarter earnings had increased 33 percent over a year earlier. Now the detailed analysis of earnings figures is something we, as readers are aware, ieave to our fundamentalist brethren. It is, however, at least partially the responsibility of the technician to put the present relation between earnings and dividends and the market's current price level into some sort of historical perspective. As far as the Dow Jones Industrial Average is concerned, it is now known to have earned 81. 87 for the twelve months ended March, 1976, up from a low of 75.47 for the twelve months ended September, 1975. A realistic estimate of earnings for the second quarter would suggest that the twelve months ended June produced earnings for the Dow in the vicinity of 88, and standard forecasts are now estimating an earnings level in excess of 100 for the year. That index, in other words, at its peak of July 12th was selling for 11. 49 current earnings and 10.11 times what it might be reasonably expected to earn in the next twelve months. The Standard and Poor's 500 probably earned close to 9.25 for the twelve months ended June 30, 1976 and may achieve 10.50 for the year. This places it at 11. 45 times trailing twelve months earnings and 10.09 times estimated 19.76 results. On a yield basis, the Dow now returns 3.76 on its last twelve '!lonth dividend payout and 3.95 based on a 1976 estimate. Comparable figures for the S & P 500 are 3.15 and3, 77. In order meaningfully to relate these numbers to the current stock market, It is necessary to define the nature of the problem. We know that a major bull market was in effect on the 12th – –,-of this month when tli;tbowUscoreda peak of r011721andthe-S'&'Pasim1aF hTghofm5'95 – – – two days later. What we are interested in is the llkelihood, on a historical basis, of these figures having been major market peaks. The following table shows the ten major bull-market peaks for both the Dow and the S & P since 1929 and the p/e and yield based on both trailing twelve months earnings and dividends and the next twelve months earnings and dividends following the quarter in which the peak occurred. The selection of the bear markets is ad- mittedly arbitrary, but would be accepted, we think, by most analysts. The most questionable period included is 1953, which is included as a major correction by most cycle theorists, despite the fact that the decline in the Dow was only 13 percent. Dow Jones Industrials Standard and Poor's 500 Trailing Leading Trailing Leading Year 1929 1937 1938 1946 1953 1957 1961 Avg. 381.17 194.40 158.41 212.50 293.79 520.77 734.91 P/E Yld. P/E Yld. 24.83 2.89 22.25 3.13 17.51 3.84 16.95 4.50 26.40 3.13 19.95 3.26 20.79 3.20 12.80 3.68 11.41 5.27 10.80 5.13 14.204.3917.724.10 23.05 3.09 20.70 3.15 Avg. 31.92 18.68 13.79 19.25 26.66 53.25 72.64 P/E 19.83 16.83 21.55 22.92 10.97 15.35 22.77 Yld. 3.04 4.01 3.70 3.53 5.29 3.31 2.78 P/E 32.91 16.53 17.02 15.16 10.62 18.17 20.58 Yld. 3.07 4.28 4.06 3.74 5.44 3.25 2.86 1966 995.15 18.08 2.95 17.26 3.20 94.06 17.61 2.96 16.95 3.05 – 1968 -'98521r–1703 3.18 f6.54 3.43– 108.371B.81–'2.83- .. 1840 — 9r'-';- 1973 1051.7014.623.0412.213.35 120.24 17.68 2.64 14.74 2.81 The figures show that the Dow has never peaked at a trailing p/e as low as the present one except in the case of 1953, the mildest bear market of them all. Neither it nor the S & P have ever peaked at a level as low as the present one in relation to forthcoming twelve-month earnings. Llkewise, only in 1937 and 1953 has a bull market peak been associated with yIeld levels significantly higher than those currently available. These numbers would suggest to us that, although the further room on the upside may well be somewhat limited, such breathing space undoubtedly exists. Dow-Jones Industrials (1200 p.m.) 980.99 S & P Composite (1200 p.m.) 103.05 ANTHONY W. TAB ELL DELAFIELD, HARVEY, TABELL Cumulative Index (7/29/76) 609.98 AWTjt No statement or expression cf opinion or any other moIler herein contolned IS, or IS to be deemed to be, directly or indirectly, on offer or the Ollcltotlon of on offer to buy or sell ony security referred to or mentioned The mailer IS presenled merely for Ihe converlenc of the subscriber Whde oNe believe the sources of our mforma lion to be reliable, we In no way represent or guarontee Ihe accuracy thereof nor of Ihe stotements mude herein Any odlO., to be token by Ihe subscffber should be based on hiS own Investigation and Information Janney Montgomery Scali, Inc, as a corporatIon, and ,ts officers or employees, may now have, or may later lake, POSItions or trades In respect to any seCUrilles mentioned In th,s or any future ,ssue, and such pOSition may be dIfferent from any views now or hereafter epressed In thiS or any other issue Janney Montgomery Scott, Inc, whICh IS registered With the SEC as on Investment adVisor, may give adVice to lIs Investment adVISOry and othel customers Independently of any statements mode In thiS or In any ather Issue Further ,formatIon on any security mentIoned herem IS available on request

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