Tabell’s Market Letter – June 11, 1948
View Text Version (OCR)
Technical Market Action On February 11th, when the industrial average was around 165, I issued a special letter entitled Stocks With Favorable Technical Patterns. It was my thought. at the time, that the market was at an important buying point and, after checking over the technical patterns of over 1200 listed issues, a selection of 250 stocks was made. All of these issues were mentioned in the letter and then narrowed down to 30 issues. The 30 issues finally selected as the outstanding purchases from a technical viewpoint, included both medium-grade issues and speculative issues. These issues are re-listed below together with their potential long-term price objectives. Approximate Price Recent Approx.Potential February 11th Price Long Term Object. Addre ssograph Bigelow Sanford Bliss, E.W. Borg Warner Chicago North Western Col1lunbia Gas Doehler Jarvis Electric Power & Light Elliot Company Fansteel Flintkote Gulf,Mobile & Ohio Hewitt-Robbins Illinois Central Industrial Rayon Inter.Minerals & Chem Kansas City Southern Mesta Machine Montgomery -Ward National Supply New York Air Brake Phelps Dodge Radio Corp.of Amer Seaboard Airline Sharon Steel Southern Pacific Square D U.S. & Foreign Wheeling Steel Youngstown Sheet & Tube 29 28 24 44 15 10 30 13 15 11 31 13 21 28 39 23 24 38 49 19 36 41 8 14 30 44 15 17 39 67 39 7/8 35 1/8 32 1/2 64 1/4 19 5/8 14 1/2 39 22 3/8 27 13 3/8 41 1/2 18 5/8 26 1/4 39 54 1/4 38 42 43 3/4 64 23 1/2 43 56 14 24 1/2 40 1/4 58 7/8 22 3/8 31 7/8 52 86 3/8 70 100 50 85 35 20 75 43 60 32 60 29 50 60 85 45 60 75 90 36 80 90 20 ,/ 36 65 100' 40 45 100 140 \ My purpose in reprinting the list is to draw attention to the fact that while all the issues have advanced sharply,they are still quite a distance away from the ultimate long term objectives. To those who shared the general fear psychosis of early 1948 and late 1947 and missed the opportunity to buy the market at bargain levels, it means that there is still an opportunity to buy good issues at attractive price levels. Obviously, the rise to the levels mentioned above will be interrupted many times by technical corrections. With the market indicating a major uptrend, such corrective periods should be welcomed as an opportunity to acquire attractive issues. At the moment, it appears that any worthwhile correction will come from higher levels and that only relatively minor dips will occur until the market gets heavily overbought. For trading accounts, the following issues are relatively near'the lows of the year and appear attractive technically 0 They have formed large potential base areas They are Fansteel Metallurgical (13 3/8), Rheem Mfg. (22 3/4); Reading Company (21) Chicago, Milwaukee & St. Paul pfd (33 1/8), Western Union (23 3/4) and Consolidated Vultee (ll 1/8). eDMUND W. TABELL June 11, 1948 SHIELDS & COMPANY The opinions. exprened in Ihil loner are tc personal interpretation of charts by Mr. Edmund W. Taben and are, not prtlsented as the opinIons of Shields & Company.