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TABELL'S MARKET LETTER 35 WALL STREET, NEW YORK 5, N. Y. Digby 4-4141 The increasing investor confidence of which we have written about in several recent letters continues to be an important factor in market action. Te techn5r,al behavior and supply and demand factors continue to favor the better grade, dividend paying issues. rany issues of this type have built up strong base patterns over the past three years and have broken out or appear to be on the verge of breaking out of these accumulation areas. This formation iil also pre'3ent in numerous special situations. The run-of-the-mill speculative issues appear in need of a longer period of accumulation and consolidation before any worthwhile move is indicated. I would be cautious about following strength on this type of issue and would confine purchases to reactionary periods. It appears that we have reached a phase of the market Ihere individual issues must be followed closely. 'file averages will most likely remain in a relatively narrow trading range but there will be excellent opportunity for profit in individual situations. We have graphs on almost every listed,issue on the New York Stock Exchange and New York Curb and welcome inouiries s to the technical status of in- dividual issues. . A recommended list of issues is given below Better Grade 1SSUt'il Allis Chalmers American Cyanamid Amer.Home Products American News Borg Warner C. I. T. Financ ial Commercial Credit Crown Zellerbach Endicott Johnson Federated Dept.Stores General Amer. Trans. Hewitt Robins 1ntertype Kresge S.S. McKesson & Robbins Otis Elevator Phelps Dodge Shell Union 011 —S.tad tee-lilig Last Price' 31 3/8 46 27 7/8 33 3/8 52 5/8 55 3/8 54 1/4 28 5/8 333/8 28 1/2 44 17 1/2 30 40 5/8 40 35 43 7/8 39 3/8 li3-lj8- Speculative Issues Last Price American Airlines American Power & Lt Avco Budd Company Carrier Corp Chic.Rock 1s.& Pac Combustion Eng. r,ontinental Baking Denver 8; Rio Grande j)istillers Seagram Eastern Air Lines Illinois Central ;.fi-t-erI'h-&;hem- Lowenstein !It-ag-a-i'a-Huds o n – P r – Penn-Dixie Cement Pressed Steel Car Radio Corp Reynolds Metals St.Regis Paper Schenley Shamrock Oil & Gas Studebaker Sunshine Mining United Mer.& Mfgrs 9 7/8 12 5/8 5 7/8 11 1/8 15 34 25 15 3/8 27 5/8 17 1/8 15 3/4 29 1/2 3/.lj.. 23 1/4 14…..;i)8 23 7 12 7/8 20 1/8 7 3/4 29 28 1/2 24 1/2 11 12 1/8 October 21, 1949 EDMUND W. TABELL 1IALSTON, HOFFMAN & GOODWIN / This memorandum Is not to be construed .!II an offer or solicitation of offers to buy or sell any securities. From tIme to ttme Welston, Ho!,n;an & Goodwin may have u Interest In some or .!III of the securities mentioned herein. The fo(ogolng mllterial has beon prepllred by us al a matter of Information only. It II based upon Information believed reliable but not necenarlly complete, j, not guaranteed as accurate or final, lind II not Intended to foreclo,e Independent Inquiry.