Tabell’s Market Letter – July 23, 1976

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