Tabell’s Market Letter – February 24, 1978

— ,—- .-'——— TABELL'S MARKET LETTER L ———- ,J\ 909 STATE ROO, PRINCETON, NEW JERSEY 08540 DIVISION OF MEMBER NEW VORK STOCK EXCHA.NGe, tNC MEMBER AMERICAN STOCK EXCHANGE February 24, 1978 We have often been fond of pointing out in this space the paradox that what does – . not' ha ppen 'in-the stocK markeels 'oftena's im-porta'nt-a's wh-atdoe'sh'appen .- W'Ei'all know'wnat'did— happen in last week's market. The major averages continued to further new lows, the Dow reaching 749.05 on Wednesday and the S & P 500 attaining a new bottom at 87.56. At current prices, the DTIA is now down some 25 percent from its low of December 31, 1976 and is at the lowest level at which it has traded since April, 1975. Despite the weakness in the averages, however, what did not happen last week was broad weakness on the part of large numbers of individual stocks or industry groups. On Wednesday, the day the major averages made their low, 44 of the S &. P industry group indices posted new lows for the period October 1 to date. More Significant, in our view, is the fact that 62, or a majority of the group indices, did not, in fact, reach new lows. A fair number of industry averages, it turns out, made their lows sometime ago at various points between October and January. Even more interesting, a fair number are up, today, by a substantial percentage from those lows, amounts ranging up to 34 percent. We are producing below a list.of the 62 groups which did not score new lows last week, together with the date their recent low was made and their percentage change from that low to last Wednesday. We think the table suggests that the decline is not as pervasive as it would appear to be and that, even in the midst of the current discouraging market environment, interesting opportunities in certain areas exist. – —–GRO'UP-'—-……——– —-1l-IIJ-1-i .O.F—-'– —.;G.R..OUP — – 1lII're OF LO-ll CHI\NGB '-rO 1-l-II-'r-e Aerospace 02-Nov-77 7.52 Machine '!boIs 26-OCt-77 16.83 Atom ic Energy 19-OCt-77 17.95 Machinery – Industr ial ll-Jan-78 1. 77 Autcrnobile 25-Jan-78 0.25 Mach & Serv–Qil Well 02-Nov-77 1. 76 Auto — Exc Gen Motors 25-Jan-78 2.85 Machinery – Composite 02-Nov-77 0.35 Auto Parts — After Mkt 26-OCt-77 0.22 Metal Fabricating ll-Jan-78 5.99 Auto Trucks & Part 18-Jan-78 0.46 Offlce Equ ipment 02-Nov-77 0.73 Beverages — Brewers ll-Jan-78 2.33 Offshore Drilling 02-Nov-77 9.18 Beverages — Distillers 26-OCt-77 6.35 Oil — Crude Prod. 02-Nov-77 11. 77 Beverages–Soft Drinks 02-Nov-77 0.59 Oil — Domestlc Integ 25-Jan-78 0.03 Bldg Matrls — Air Cond 02-Nov-77 5.38 Oil — IntI Integ Bldg Matrls — Cement 26-oct-77 8.41 Oil — Composite -ll-Jan-78 25-Jan-78 0.51 0.22 Bldg Matrls–Heat/Plumb 02-Nov'77 5.24 Pollution Control 19-OCt-77 2.88 Bldg Matrls–Roofll-Ubd 18-Jan-78 1.50 Pub ish inj 26-OCt-77 5.23 Building Matrls — Comp 18-Jan-78 2.ll Brdcastrs — Radio/TV 19-oct-77 2.70 Coal — Bituminous 26-oct-77 3.23 Real Estate 02-Nov-77 8.70 Confect ionery 18-Jan-78 6.49 Restaurants 02-Nov-77 3.87 Conglomerates 02-Nov-77 7.74 Rctil Stores — Disc. 02-Nov-77 33.96 Cantnrs — Paper 02-Nov-77 0.59 Retail Stores(drug) 18-Jan-78 3.78 Copper 07-Dec-77 0.50 Shoes 19-OCt-77 1. 74 Cosmetics 02-Nov-77 2.ll St0e — Excl Us Steel 19-OCt-77 1.68 Drugs 02-Nov-77 0.21 Sugar — Beet Ref. 18-Jan-78 3.04 Electric.l Equip 15-Feb-78 0.08 Textls — Apparel Mfrs ll-Jan-78 5. 70 Entertainment 02-Nov-77 3.58 Textiles — Synth Fibr 15-Feb-78 O. 70 – — Foods — Canned 01-Feb-78 0.74 Tobacco/Cigarette Manu 25-Jan-78 Foods Foods — DalrY Prod. –'Composite' '—-.. 01Feb-78 1.68 , Toys , '. –.. – .02-Nov77–0. 76Telephone 02-Nov-77 25.jan'78 ' Gold Mining 23-No'l-77 5.38 A.i Transport 02-Nov-77 HOOle Furnishi ngs 02-Nov-77 2.61 Truckers 18-Jan-78 1. 65 – r– 13.22 0.89 — Hospital Supplies 05-oct-77 1. 79 Insurance — Multi no 01-Feb-78 6.00 Hotel/MOtel LeisurE' Time 12-OCt-77 26.33 19-OCt-77 18. 79 Finance Cos 01-Feb-78 Real Estate Inv Trusts 25-Jan-78 0.42 1.88 – Dow-Jones Industrials (1200 p.m.) S & P Composite (1200 p. m.) Cumulative Index (2/23/78) AWT/jb 754.59 88.18 648.80 ANTHONY W TABELL DELAFIELD, HARVEY, TABELL No stalement Of expreUIQn of Opinion or any other matter herem contained IS, or IS to be deemed to be, directly or Indirectly, on offer or the sohCllatlon of on offer to buy or sell any se(mly referred 10 or mentioned The moiler 15 presented merely for the convel'tence of the subscriber While -He believe the sources of our Informahan 10 be rehable, we In no way represent or guaranlee the accuracy thereof nor of the statements mude herein Any action 10 be taken by the subSCriber should be bosed on hl5 own investigation and information Janney Montgomery Scoll, Inc, as 0 corporotlon, ond Its officers or employees, may now hove, or moy lofer take, POSitiOns or trades In respect to any securllies men honed In thiS or ony future Issue, and such pOSitIOn may be different from any views now or hereafter elpressed In thiS or ony other Issue Janney Montgomery 5011, Inc, which ( registered With the SEC os an Investment odvlsor, may give odvlce to tis Investment adVisory cnd othel customers tndependently of any statements mode In thiS or In any other ISsue Further mformatton on ony security mentioned herein IS available on request