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Wal ton Hoffma Goodw.-n ,- '–,- '-;r-r'/f',.1..!.i',i…I'l-,'e;;…'.'''ur.;f.'..'..-..'.,-'.–''.' .,.. 11 e.. ,0,—,,,,,,,,,- ,'-;'– ,-/1.'-. —-I..-,!,, ;'..'-;;… -. -J,.-;f- .4.J &;nCc t NEW YORK 5, N. Y. t 'j 3S Wall Street DIGBY 44141 PHilADELPHIA 2, PA. 1420 Walnut Street PENNYPACKER 5-5977 LOS ANGELES 13, CALIF. SAN FRANCISCO 4, CALIF. 550 South Sprig Street 265 MDn'gomery Street t.AADtSON 91212 SUnER 12700 t,; t..-,. ; TABELL'S MARKET LETTER -, rl1 /, I 1–., ', ',, ;''. 1,1, J, ;; The Dow-Jones industrials reached a high of 268.95 on Friday, but ;'-' ;;lost a portion ot the.day's gains to close at 266.99. At the day's high, L ;the market was near the heavy overhead supply at 270. For thirty-four (;1; !;!trading days in September-October, the industrials held in a range between '277 51 and 269.08 on a turnover ot approximately sixty million shares. The f'; market will most likely find it difficult to push through this upside re- ; ,';sistance and if it does, it may spend quite some time doing so. It would ''' be normal technical action to expect the market to back down moderately ', !;after the first attempt to approach this level particularly after the sharp ,rise from the November 26th low ot 255.20 to 268.95, a rise of 13.75 pointS ;oin eleven trading days. I would expect a further attempt to penetrate the C ,,,–, 270-277 resistance after a corrective phase. '-'. If holdings in longer term appreciation accounts are below the 50 – , -' ,- ;invested level recently recommended, would be inclined to purchase issues , ,'that have not yet participated in the recent rise. Two of the issues in my'-' ,;recommended list – one a better grade issue and the other a lower priced — ;' stock – are reviewed below. L-' BLAW-KNOX at present levels ot 17 7/8, appears to be reasonably priced. The company supplies industrial equipment to practically every z -''- ; L; '-alnadrgreubinbdeur.stTryheincocmlupdainnyghcahs emicals, steel, construc grown considerably over tion, the paper, utilities past fifteen years (-C .'c, 'lSales averaged 13 million in the 1936-1939 period and are estimated at ;'; ,.-'100 million for 1951, an increase of over 750. Financial iosition has ' (improved also from an average working capital ot less than 3 million in '1936-1939 to over 16 million as ot June 30, 1951. This last figure is ,; 'ieq',ivalent to approximately 11.50 a share. There are 1,411,468 common ,;-shares outstanding with no bonds or preferred stock. ,;; Earnings for 1951 are estimated at 2.50 a share against 1.99 in -'1950. On the regular rate ot 1.00, plus 251 extra, the yield is about 7. ;',- i'Some dividend has been paid each year since 1940. –, ;,- The stock has a very interesting technical pattern. It has held in -the 11-20 range for over tive years. The 1946 high was 30 7/8 and a high ; -;of 29 7/8 was reached in 1937. Ability to break out on the ups ide of the ;'lfuipv5ied-ey ear range penetrat would ion do indic es not ate a occur l ong in term the n obj ear ective future, of 33-39. Even the stock app if ears an to l ; ;i,\!be in a 00d25defenidsivde position. Thebre is good euEPporint inhthe b15-14 range ;'–;a2nda t he ,/,1. share di since v en 1945. seems reasona ly secure. arn gs ave een above , ,— -,',' '; OWENS-ILLINOIS GLASS closed at 79 1/2 on Friday. The year's high of ,89 1/2 was reached during the September-October rally. The technical , ,pattern of the stock is excellent. There is good support in the 80-74 area ;and the upside objective is above the recent high. '-' The company is the largest producer of glass and glass products in- -',-'cluding containers, glassware, insulating materials and other glass /Special,' -'ties. A 42 interest in Owens-Corning Fibreglas Corporation is held by — Owens-Illinois. Earnings for the twelve months ended September 30th total-c ';,led 7.09 a share. The indicated dividend rate is 4.00. The sales trend ,, iappears to be rising and improved sales are expected in the Kaylo build- 'ing and insulating products and Fibreglas yarn. Resurgence of demand L' for television picture tubes also is expected. 'i;,, . ; December 7, 1951 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN ' ;r Closing Averages '–' Dow-Jones Ind. 266.99 ,,,,;, -'f DOW-Jones RailS – 83.47 '. ' '' , '1 Thh memorandum 11 not to be con5trued as An offer or solleltetlon of offen to buy or sell any securitle, From time to time Wahton, Hoffman & GoodwIn mey 4' have An Interest In some or ell of the securities mentioned herein. The foregoing material has been prepe,.d by us es e maU of Information only. It Is bued ' upon information bel1eVld reliable but not naceuarily comptete, Is not ;UlIrllnt..d as accurat. or final, and Is not intended to foreclon indDendent inquiry ',J i, ;. , ..r..J';,'1.()'f!7.;7'I1i,'f;.g;LS';i!(J;;;;,'-'- '''-; ' ,—;i-.7''';.7'; -77/'I;'i;;'-f't;, 'f..-c;1!.t..i'5,i–;; rl,5''.!'''..t;'';f-,.)(/').' -,7 '- tV';'-. , ; -'