Tabell’s Market Letter – January 03, 1986

TABELL'S MARKET LETTER 600 ALEXANDER ROAD, PRINCETON, NEW JERSEY 08540 MEMBER NEW YORK STOCK EXCHANGE, INC MEMBER NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC (609) 987-2300 January 3. 1986 It is hardly news that 1985 was a good market year. with the S P 500 up 26.33. We thought 'it-of'possible'interest'to study'thellerformanceof–each of the individual-components of that index. The following table summarizes the study. using the 85 industry groups which com- prise the 500. For each group. the un weighted average percentage change of the components is shown. together with the total number of stocks in each group. the number of stocks advanc- ing and the number advancing by more than the 26.33 gain of the average itself. A total of 423 of the 500 stocks were up on the year. and 232 showed a better gain than the index. This latter figure. significantly less than half. suggests that much of the S III P's gain came from larger stocks. a thesis confirmed by the fact that only 38 of the 85 groups out- performed the S P. The figure also suggests that group identification was probably as important a factor as individual stock selection during 1985. For the 35 leading groups. everyone of the components was up on the year. and this statement is true of a total of 45 groups. For no fewer than 12 of the groups in question. every one of the components outperformed the S p. and for all of the lesding groups a substantial majority did so. Not surprisingly. the table clearly shows that the year's leaders were those stocks we have characterized as diSinflation-hedge issues. 37 of the 85 groups fall into this category. and 27 of those groups outperformed the average. 214 of the 220 component stocks were up and 141 showed superior performance. By contrast 16 of the 18 basic-industry groups underperformed the S p. with 64 of the 91 component stocks underperforming and 25 down on the year. 0' 0'Industry Broup HuIbor Total lIP StadsSIP I n d u s t ,. 6 r au' CIianH IIuIbor Total lIP StodI.SsIP — EHm!TAIHltElfT 8'1.25 4 4 4 LIFE IIISIIIWU 24.71 442 – aJIIf'UTER SRIIICES 67.82 3 3 3 NISCJ.lAIIOOS 23.SO 25 23 11 —-1-IID,A——U;tg1–1–t-r-nL' A—-lg—i— – – – f PlUUTIOH COHTROL RETAIL SPECiAlTY HOSI'ITAl Slm.IES TEXTILE APPARL ItFRS. ElECTROHIC IIAJOR COS. FOODS III1THIHE IHSWIIfCE DRUGS SAVINGS lLOAN aIII'AIIlES SOAPS COSNETICS TROCKERS ClllTAINER METAl 1 &lASS PIlII'ERTY-tASlIAlITY INSURANCE RETAIL STORES I(PARTMEIIT CHEMiCAlS TEXTILE PROooeTS BE\lERA6ES IIRElIERS BAHKSlHElI YORI( CITY MlISHING RESTAURAIITS PmERSODHRAIHlLJO(SANS FOOD DlAIN CON6LOHERATES F1If1111tIAL MIscru.AHE1RJS GENERAl IIERDfAIIDISE DlAIHS BEVERAGES DISTIllERS HOTElIltOTEL MlISHING !HEVSPAPERS) TELEPHOIIE !HElI) CIfPER TIRES 1 RUBBER AIR FREI6HT PAPER TRAHSP.-IIISC. LEISURE TINE CONTAINER PAPER RAIU!OIIOS 60.81 59.18 58.03 57.45 53.54 51.09 SO.13 47.39 47.26 45.37 44.39 43.46 43.43 42.87 41.05 40.75 40.61 39.61 38.94 38.30 M.33 36.16 lS.65 lS.JO 34.51 32.32 32.13 31.75 30.20 29.66 26.44 28.18 27.14 26.90 25.lS 25.32 25.20 25.00 24093 3 3 3 BAHJ(S!OUTSIDE MEV YORI( CITY) 19.39 5 5 4 NATURAl GAS 18.79 6 6 5 ruCTRICAL EOUIPMENT 18.26 5 5 5 AEROSPAC-DEFEHSE 17.94 3 3 3 AIR 'IRAIfSI'IIIT 16.97 18 18 17 ruCTROHICS-IHSTRUMEllTATIOH 16.00 6 6 6 ELECTRIC COMPANIES 15.38 12 12 10 ItACHIHltY COHSTRUCTION 1 MAT. 14.66 3 3 3 AUTO PARTS-AFTER IWIKET 14.51 4 4 3 HISCEllAHOUS!HIGH TECH) 13.39 7 7 4 OIl INTEGRATED INTERNATIONAL 13.33 4 4 3 FOREST PRODUCTS 12.08 4 4 3 IlACHIIlERY INIlU6TRIAl/SPECIALTY 12.06 5 5 5 ClDICAlS-DIV. 11.38 8 8 7 HARDIIARE 1 TOOlS lo.s9 8 8 5 OIL INTEGRATED DDIIESTIC 10.05 6 6 4 BlDG MATERIALS 9.78 3 3 2 RETAIL STDRESIDRUG) 9.67 6 6 6 AlUNIHlIIt 8.28 6 6 4 AUTO PARTS-Dl!6. EOUIPHEHT 7.33 5 5 3 TOBACCO 6.98 2 2 2 AUTOHOBILE 6.92 4 4 3 SHOES 5.39 8 8 5 GOLD 4.90 7 7 6 IfOSPITAL NAllAGEHENT COMPANIES 3.96 3 3 3 ruCTROHICS !SEMICONDUCTORS/CO 3.22 5 5 2 MACHINE TOOlS 2.57 4 4 2 AUTO TRUCKS 1 PARTS 2.56 4 4 3 STEEl 1.32 5 5 4 MANUfACTURED HOUSING -0.74 8 8 4 OIL WElL EOUIPNEIIT AND SRlJICE -1.66 3 2 2 aJIIf'UTER 1 BUS. EOUIP. -2.86 3 3 I HOltE BUILDING -J.03 3 2 I METALS MISCElLANEOUS -8.05 9 6 4 AGRiCUlTURAL MACHINERY -13.94 2 2 1 COII!IUlUCATlON EOUIPIIIfRS -23.34 5 4 3 OFFSHORE DRILLING -47090 3 2 lOlL CRUDE PRODUCERS -49.80 654 11 9 11 11 44 10 9 54 43 21 19 44 44 75 54 66 66 64 32 97 10 7 44 44 54 33 42 43 43 4I 64 52 32 83 31 7 – 2 14 9 53 3I 4I 63 40 30 5 2 1 2 I I 2 I 0 4 I I 2 I 0 2 5 0 0 0 0 2 I I I 0 1 0 I 0 O 4 0 0 0 0 0 0 AWTrs Dow-Jones Industrials (12 00 p. m.) 1546,67 S III P Composite (12 00 p.m.) 210.42 Cumulative Index (1/2/86) 2715.02 ANTHONY W. TABELL DELAFIELD. HARVEY, TABELL INC, NO statement or cplesslon of Oplr'lKln or.any other mailer herein contained IS, or Is to be deemed 10 be, directly Of mdlfectly. an oller or the 50llcllallon of an ofler to buyar sell any security referred to 01 menhoncd The mattlrls pre;ented merely for the convenience of Ihesubscflber While we believe the sou/cesol our mformatlon to be reliable. we In no way represenl or guaranlee the accuracy thereof no' of the statements made herem Any action to be taken by the subscriber Should be based on hiS own Investigation and mformaHan Oelaheld, Harvey, Tabell Inc, as a corporatIOn and liS 01110815 01 emplovees, may now have or may later tako, positions orlrades In respect 10 any securitieS mentioned In this or any future Issue, and such position may be dlfferentlrom any views now or hOlea/ter epfessed In this or any other Issue Delafield Harvey Tabell Inc which IS registered With the SEC as an II'Ivestment adVisor, may give advice to ItS Inyestment adVISory and other customers Il\dcpendently of any statements made In thiS or In any other Issue Furlher Informa\lon on any security mentioned herein IS available on requesl