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—————————————. rAllJWnlNzt DecuJu/t I MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY eXCHANGES NEW YORK PHILADELPHIA LOS NGELES SAN FRANCISCO LUGANO (Swit,ld I I OFFICES COAST TO COASTjCONNECTED BY DIRECT PRIVATE WIRE SYSTEM l'ABELL'S MARKET LETTER The market continues to show selective action. The Dow-Jones indus trial average advanced to a highlof 291.78 during the past week as compared wlth the January high of 295.06. The rail high was 112.80 last week, and 113.94 in December, 1952. However, numerous individual issues have shown relatively better action and hav advanced to new high territory. Most of these issues have been in the category of light blue chips or issues slightly below top quality. I continue to feel that these types of common equities will be the'..market lead-ers. They are still available on a 5 1/2 to 7 1/2 yield basis as against la 4 1/2-3 1/2 yield in the better grade blue Chips,. As far as the loweIl-grade common stocks are concerned, I do not believe tha-t there.-is enough1speculative interest at the moment to en- courage any wide moves in this tYiPe ,of issue .. As far as the averages ae concerned, I continue to feel that the market during 1953 will swing back and forth in a relatively narrow range. I do not expect 1953 to be a bull or bear year but rather a combination of both with private bull and bear markets in individual securities. The in- vestor -can maintain his position,; provided he has issues in favorable groups. He should also have a small cash reserve in order to take advan- tage of price corrections. The more speculative trader should have ample opportunity to take advantage of ,the expected trading range and be will- ing to' Se,ll on Jiltrengitlil ald not be afraid to buy on weakneBB. LONG TEEM INVESTMENT In accounts concerned mainly with income and longer term price ap'preciatic!n, would advise a 75 invested position in common stocks and 25 in short' term governments in order to take advan- tage of possible buying opportuniities during the year. ' The issues in the recommended long term investment list are show- ing good technical action and should continue to be held. For new pur- chases, the following issues appear attractive on moderate price declines I PRIC 1952 DIVIDEND YIELD Allis Chalmers AlphaPort.land Cement Babcock & Wilcox Blaw Knox Briggs Mfg. Bucyrus Erie Crane Company Eagle Picher Elliott Co. General Rwy. Signal Joy Mfg. Lowenstein New York Air Brake (p) Otis Elevator Shamrock Oil & Gas Smith, A.D. Sylvania Electric (p) Western Auto Supply 55 I 48 41 I, 21 42 27 32 23 32 35 39 32 22 44 38 35 36 57 4.00 3.00. 2.00-A 1.25 3.00 2.00 2.25 1.50 2.10 2.50 3.12 2.00 1.60 2.50 1.82 2.00 2.00 3.75 7.27 625,– 4.88 5.95 7.14 7.4 7.03 6.52 6.56 7.14 8.00 6.25 7.27 5.68 4.79 5.71 5.56 6.58 'A – Plus 5 Stock. P – Offered by prospectus, which is available on request. CAPITAL APPRECIATION In iSk accounts concerned mainly with capital Q,ppreciation over a six-month peritod, I advise a 50 invested position with tbe remaining50 kept liquid to await buying opportunities. On further strength into the 295-300 area would further lighten accounts to 33 1/3 invested. I MINNEAPOLIS, ST. PAUL & S'.STE.MARIE (SOO LINE) declined to 14 on tne news of the dividend omission. While some patience may be required, I ,believe this issue is an excellent speculative purchase. There is strong support in the 14-13 area. The road is in an excellent growth territory ad long term capital gains could be substantial. ' March 20, 1953 EDMUND W. TABELL WALSTON & CO. -ThiS memorandum is not to be construed mi'y have an interest in some or all of based upon InfOrmatiOn -believed reliable as an offer or soliCitation the secuflties mentioned but not necessarily comp lheoetfree,ointLtsernsTohtteogfuboaurryeagnOortienesgde 'Iranasan,Yaerctcaeu,'cruahrtalst'I0e,se;i,FnraoFm,reaptnimreeIdS t.onbotimIn'et aWshatomnatterCoof, or any partner thereof, Information only It IS d d to foreclose independent Inquiry en. e .