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, ,' I Walston &Co. — MEMBERS NEW YORK STOCI( EXCHANGe AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISw,Id) ,OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER December 17, 1954 After declining to lows of 385.03 on the industrials and 134.36 on the rails, the market rebounded sharply in the final part of the week. The rail average led the advance and decisively penetrated the previous high of 137.90 to reach a new high at 143.38 . The industrials, at the week's high of 396.34 , just about equalled last week's high of 395.67. There may be some further irregularity before the year-end, but I would expect a continuation of the advance to the 425 level in the industrials and to the 150-155 level in the rails in early 1955. LONE STAR CEMENT (58) has reached all upside objectives at the recent high of 64 and has advanced sharplyJrom its originally recommended level of 0 28. Time may be needed to form a-new pattern. On strengTh,-'woUld switch .,. ' into other issues with better appreciation prospects. LOUISVILLE & NASlNILLE (86) recently reached a high of 86. The upside potential appears to be 88-90. Would take profits in that area. LOWENSTEIN & SONS (44) has been one of the better acting textile issues. It originally -entered my list in the 28-30 area. The eventual upside ob- jective is 55-60. I would continue to hold and buy on minor price declines. MASONITE CORP. (25) has shown improving action recently after a poor performance since 1951. It has pushed through considerable upside resistance to reach a recant high of 27. The immediate pattern is not clear, but a constructive pattern appears to be forming and retention is advised. MERCK & CO. (20) is a recent addition to the list. The stock appears to be building up a strong potential base in the 17-22 area. An upside penetration would indicate 26 followed by 34. Stock appears to be a purchase at around present levels. MINNEAPOLIS, ST. PAUL & SLT. STE. MARIE (16) Soo Line has been a very poor recommendation. It has formed a small base but there is heavy overhead resistance at 17-19 and I believe it advisable to sell or strength and transfer funds into issues with a better upside potential. MINNESOTl, POWER & LIGHT ( 23JJhestockisinaslow\'\Iltrend channel. No immediate move is indicated but stock can 'be bought'for'above 'average – – utility yield. MISSOURI-KANSAS-TEXAS,PFD. (72) entered the list at 55. It has shown very little price action recently, but the technical pattern is very strong. The intermediate term indication is 85-90 followed by a longer term 104. There is suport at 70-67. Hold and buy on minor declines. MONSANTO CHEMICAL (103) is another recent recommendation at 93. The intermediate term indication appears to be 120 followed by a higher long term potential. \ould continue to hold. MONTANA POVIER (38) has recently held in the 35-38 range. An upside pene- tration would indicate a possible further advance to the 43 level. Would continue to hold. MONTGOMERY WARD (77) has been on my 11st for quite some time. The pro- – jected intermediate term objective appears to be 85-90 with higher potentials over the longer term. Would continue to hold. MULLINS MFG. (23)iS another recent recommendation. It has done little marketwise for quite some time, but appears to be slowly forming a strong technical pattern. Ability to reach 26 would be constructive and indicate an intermediate term 34-38. There is some suppl at 26-29 that may temporarily slow the potential advance. NATIONAL AIRLINES (22) was recentlyrecommended at19. It-has moved up to a high of 23 but the upside potential appears to be 27-30. Would continue to hold. NATIONAL GYPSUM (47) entered the list in the 20-22 area. It recently reached a high of 49. The upside potential appears to be 50-55 so I would advise taking profits on further strength. NEW YORK AIR BRAKE (25) until recently was one of my most disappointing recommendations. However, it recen,tly has broken out of the broad 13-23 range in which it has held for eight years to reach a high of 27. The initial objective appears to be 29-34 followed by a higher projection over the longer term. Would continue to hold and buy in the 23-22 support level. Thl memorllftdum is not to be construed oil an offer or sol.clt.tion of oH,., to bur or II ,n, ncur.tics FrOiTl tim. to time W4lhton & Co i lff, …r ftllrtner t fh.rlo!. may hlit..!! an 'nl,r, ,n lome or all CIt the ,curie, mentioned h.in Th, for.qo,; m4lterial h.u baell prepa,ed b' I at 41 matte' 0 III 'I,ma Oil o 'I or It b..d UPOII ;1I'Ot'411ooli believed rehable by! 1I0t lIecena'lly complete, If 1I0t ;yatallteed as accu'at, or filial, and 1I0t ,nt,nd,d to Imedole Ind,p,nd, '''Ciu Y – -' r -2- NEVI YORK CENTRAL (30) was recently recommended in the 20-21 area. The intermediate term objective appears to be 35-39 with higher levels projected over the longer term. The 28-27 area should furnish support. Hold and buy on minor price declines. NEVI YORK, CHIChGO & ST. LOUIS (48) has rallied to 48 and is in its up- side objective zone at 46-52. Vlould be inclined to take profits on further strength and switch into issues with better appreciation prospects. NORTHERN PACIFIC (71) was recently recommended at 59. The upside penetration of the year-old 52-64 area was very constructive and breaks the downtrend from the 1952 high of 94. There is some overhead supply that may slow action but the long term potential is 95-105. NORTHVIEST AIRLINES (16) At the recent high of 17 was near the overhead resistance at 18-21. ould switch commitments into Pan c.merican World Airways. OTIS ELEVATOR (68) entered the list at 39. It has reached its intermediate term objective of 67-7SJ,. but the longterm obtectie is80-90. Would continue to hold and buy- in the 62-60 support level – – OI.JENS ILLINOIS GLASS (98) reached a recent high of 101. The intermediate term objective is 108-112 but the long term potential is very impressive. vlould continue to hold. PAN AMERICAN WORLD AIRVIAYS (18) continues to be my favorite airline selection. There is some minor supply at 21-23 but 26-30 appears to be the intermediate term indication followed by 35-40 for the long term. Would switch other airlines into Pan merican. PARAMOUNT PICTURES (36) has been in my list for a long time. It was originally mentioned at 23, The intermediate term objective is the 41-48 zone. Continue to hold and buy on minor price declines. PARKE DAVIS (36) is forming a similar pattern to the other ethical drugs. It has broken out of the long 31-37 range to reach a high of 38. There is some overhead supply at 42-46 that may slow action, but the ultimate objective appears to be 50-52. PENICK & FORD (46) is another recent recommendation. ThiS better grade issue moves slowly but it has an ultimate objective of 63-72. Buy on minor price declines. PENN-DIXIE CEMENT (78) was originally recommended in the 34-33 range. Its upside objective was 73-80 and this was reached at the recent high of 80. Time may be needed to form a new pattern and would take profits arid switch-into issues With-ii-more iniinediate–upside poteiit1al-.———- PENNSYLVANIA SALT (50) has done little marketwise but the upside pene- tration of 41-46 accumulation area indicates 59-65. The 1951 high was 71. Vlould continue to hold and buy in the 48-45 support zone. FFIZER (CHAS.) & CO.(35) appears to be slowly forming a strong accu- muation pattern. Ability to reach 39 would be constructive and indicate a longer term 55-60. PILLSBURY MILLS (53) originally entered the list at 35. Its technical action has been good. Vlould continue to hold. The long term indication is 60-70. PITTSTON COMPANY (30) has a rather irregular pattern, but the upside potential is quite substantial. There is overhead supply at 30-32 that appears to be slowing the advance but would continue to hold. PUBLIC SERVICE OF COLORADO (44) appears to have reached its first upside objective at the recent high of 46. Time may be required to form a new pattern. Vlould switch into Idaho Power or Montana Power. PULLMAN CORP. (64) has moved up to a high of 66 from the recommended level of 51. Vlould continue to hold as the intermediate term objective is 70 and the long term objective is 85. RADIO CORP. (38) entered the list at 22. The upside objective is 43, which could be, reached early in 1955 followed by the formation .of a new pattern. Vlould sellon strength. RAYBESTOS-MANEATTAN (50)has broken out of the broad 368 range to reach a high of 53. The objective is 80-90. Continue to hold and buy on the 48-46 support area. RAYTHEON MFG. (18) has a very strong technical pattern and indicates a possible 30-35. There is some overhead supply at 19-23, but would continue to hold and buy on moderate price declines. REFUBLIC STEEL (72) has advanced nicely from its recommended level of 52. The upside potential is 72-78. There is also a possible 84 in the pattern. Would sellon strength. ROBERTSHAW-FULTON (32) was originally rec,ommended at 21. The upside objective is 40-45. Continue to hold and buy on minor price declines.There is s-Jpport at 30-28. EDMUND W. Tf.,BELL WALSTON & CO.