Tabell’s Market Letter – November 09, 1951

,, I ' ,- p' NEW YORK 5, N, Y Wolston.Hoff.uoll &- Goodwin q;PeJhN..e,d –'C.l'; -'''''.'- tfA1,,'1-';' ,/, … – ,!.,f,' ,.' ,-,,//1 , . !, CYN PHILADELPHIA Z, PA, (//C'- LOS ANGELES 13, CALIF SAN FRANCISCO 4, CALIF, 'V I, 't',,, /l \' – 35 Wall Street ,' DIGBY 44141 10420 Walnut Street PENNYPACKER 55977 pI''I- ,!,' TABELL'S MARKET LETTER – f,I,; r ,,1) 550 South Spring Street t.4ADISON '.1212 2605 Montgomery Street sunu 12700 / ,r;.r;' t,'-7.-/. (''1 '/ r,'. tAV; II The market continues the process of building a new technical pattern,;; r'The decline from the September high of 277.51 on the Dow-Jones industrials ', , reached a low of 254.91 this week as compared with last week's low of 256.39'', ,Between present levels and the June low of 240.72, there are several support',, tP.evels. The first is around 255 followed by 250 then by 245 and finally the !l ;,June low. It must be remembered that the general market, regardless of spec -'',; ,'tacular moves in individual issues, has held in comparatively narrow range I,;' 'since the first of the year. The low was reached the first day of the year \'' at around 236 but, with the exception of four or five trading days, the mar-; I,,ket has held in the 240-277 area for the entire year. This range of about liS h,- ;iS comparatively moderate and is one of the narrowest percentage trading ;,'I , ranges in the past fifty years. Only time will tell whether or not this com-o'i, 'paratively narrow trading area is a period of distribution or a period of ;;'1.; -re-accumulation prior to a further rise. The situation is uncertain enough h, to warrant a continued cautious attitude in intermediate term trading accoun;8 , concerned mainly with capital appreciation over a six-month period. I continue to ad,vise a 25 invested position and 75 of funds as a buying reserve. iF\' r From a nearer term point of view, the market appears to be wedged ir,';, ,between a support level at 255-240 ',overhead supply at 270-277. It may in the Dow-Jones industrials, take considerable time before and a eithe rheoafvy',' .' these levels are penetrated. The short term indicator became oversold this '; !week and gave a short term buy signal at the close on November 8th. The in- I,,' ;,termediate term indicator is entering oversold territory and could give a ,' jy;,buy signal in the next ten or twelve trading days. This might result in a (;;; ', rally to the overhead resistance at 270. The dec line from the September highs has resulted in bringing a 't;; num' 'ber of issues down to what appears to be interesting levels for long-term ,' 1;'-'!-;'m'ayp preciation. recommended Several o list and f these should issues are reviewed below. They are part of be purchased on weakness provided accounts ;,), t//'- ,',;still have a sufficient buying reserve after purchase. They are also inte- ;;, I,' resting switch possibilities from issues in vulnerable groups. F' \ CARRIER CORP. (22 1/4) is the largest independent manufac turer of rc',; 'air-conditioning equipment. 40 of volume is in smaller units and another V , 40 is large, heavy equipment for industrial plants. The company has a strong ,growth potential. Sales have increased from 4.8 million in 1930 to 13.0 i', 'million in 1940 and 62.4 million in 1950. The stock has a very strong tech- ;; \ nical pattern with a long term objective of more than double its present j, ,price. There is strong support not far below present levels. The low of the ;\\ cpas t eight years has been 12 1/8 and the high has been 34. Should be bought ' 'on all price dec lines for long term patient holding. ,i,,' . , PHILCO CORP. (24 1/2). This company also has tremendous growth possi; ,','billties as a participant in the electronics and television field. 1950 sali;l ' 'were more than six times the 1939-1940 level. Net worth has more than quad- '/; rupled in the same period. The company is one of the largest producers of ' ; television sets with a capacity of over a million annually. In addition, thE! , company manufactures radio receivers, radio-phonographs, refrigerators, I' ',' freezers, air-conditioning equipment, electric ranges, radio and television ,i, cf;;;'', tubes, micro-wave relays and computers. The technical pattern is good with ,long term potential of over 40. f)i ,,' SYLVANIA ELECTRIC (33) was originally recommended in the low twentiJ's. ;; A high of 39 was reached earlier this year and the stock appears to be an t,,; i','attractive purchase near current levels. There is very strong support at 30-' ;',28. Earnings, despite a dip in the third quarter, are expected to show up (!, ';well against the 1950 total of 5.37 a share. Company is one of the leaders r, in the electronics field and, as such, has excellent growth possibilities. ,Company is one of largest manufacturers of radio receiving tubes. In 1950 i', i',made 20 of fluorescent lamps and 10 of r..candescent lamps. Sales of tele- ';vision tubes were about one-sixth of the industry total. Dividends have been- i;, paid each year since 1931. The stock has an excellent long term technical ; ;' r;, pattern and should be bought ln the 32-28 area. EDMUND W. TABELL , November 9, 1951 WALSTON, HOFFMAN & GOODWIN ' / It This memorandu;i Is not to b. con,trued 4I1.an off., r 'olieil,'lon of off.,. t buy or II 01'1' …curiti., From ,jme to time Wb'on, HeU,,.,,,, ! 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