Tabell’s Market Letter – August 20, 1947

TEchnical Market Action The majority of earnings for the first half of 1947 have now been released. We are listing below the earnings on some of our recommended issues. It would seem that from a statistical as well as a technical viewpoint, these issues are currently undervalued and could move substantially higher. (Al earnings for six months unless otherwise noted) 21Js American Water Works Barnsdall Bliss (E. W.) Bbrg Warner Chrysler Colorado Fuel Doehler Jarvis Eagle Picher Elliot Co. Evans Products Flintkote Co. General Cable General Motors Gulf Oil Houdaille Hershey Illinois Central Interlake Iron Jones &Laughlin J'ri.Cl!! Earnings 163/4 1.71 2B 1/2 1.74 29 4.40 501/4 4.13 5B 7/B 4.15 15 liB 2.B7 35 1/2 4.0B 24 3/4 2.47 21 2.09 21 5/B 3.27 34 3.49 11 5/B 1.4B 59 l/B 3.20 71 1/2 4.66e 17l/B 1.95 26 1/B 5.70 12 3/4 1.12 32 7/B 4.43 Joy Mfg, Mullins Mfg. National Supply Ohio Oil Pure Oil Rayonier Revere Copper Seaboard Oil Sharon Steel Simmons Co. S. O. of New Jersey Union Bag & Paper U. S, Pipe U. S. Steel Westinghouse Air Brake Westinghouse Electric Wheeling Steel Worthington Pump Youngstown Sheet & Tube l.!lli Jl!ll1ling 3B 1/4 6.69 21 l/B 4.07 19 1/2 2.B3 26 3/B 2.02 261/2 1.77 26 1/4 3.24 20 1/4 3.51 29 1/2 1.97 34 3/B 5.4B 37 1/2 3.79 77 5.l2e 34 liB 4.52 42 2.Bl 71 3/B 6.43 36 2.07 2B 1. 59 41 3/4 B.57 58 9.2B 6B 1/2 8.14 tor nine months E Estimated le repeat, these earnings are not for a full year but only six months. ,I The market failed to follow through on Fridays strength and has sold fractionally lower on each of three days of the week. Volume has been exceedingly small however. This action is disappointing, inasmuch as it seems to indicate no immediate resumption of the advance. It was our opinion last week that the technical correction was completed at the August 11th lows of 178.22 and 47.55r At Wednesdays intra-day lows of 17B.76 and 4B.62, the averages seemed to be in the process of retesting these points. An indication of the minor trend, which now seems to be neutral, would be given, if the averages penetrate either the August 11th lows noted above or the August lBth highs of IBl.43 and 49.62. A downside penetration would indicate a possible further down drift to l77-175.;lAn upside penetration would indicate a testing of the July high of IB7.66 on the industrials and the February high of 53.65 on the rails. I am inclinto favor the possibility of an upside penetration, but, regardless of the minor trend, continue to believe the intermediate term advance will be resumed to reach an ultimate 210-215. Continue to advise purchases of recommended issues in the 181-177 buying area. August 20, 1947 EDMUND \1. TABELL SHlEIDS & COMPANY glosing Dow-Jones Industrials Dow-Jones Rails 179.01 48.69 Dow-Jones 65 Stock Avg. 64.13 Th. opinion' expreued In this lette, ere the pen.onal inhtfpretation of cha….. by Mr. Edmund W. T.bell and ere not presented liS the opinions of Shi.ld. & Company.