Tabell’s Market Letter – April 29, 1955
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Walston &Co . '—– …. e…. BERS NEW VORK STOCK EXCHANGE ANti OTHER LEADING STOCK AND COMMODITY EXCHNGES NEW YORK PHILADElPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw;t,ld) OFFICES COAST TO COAST COl.(NECTHi BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER April 29, 1955 The Dow-Jones industrial average traveled over a wide range during the past week with a low of 420.52 on Monday followed by a new high of 432.76 on Tuesday, followed by a decline to 421.96 on Thursday. Wide price movements measured in points is to be expected at the relatively high level of the market. Fercentagewise, the price movement has not been too extreme. I do not look for any wide move in the general market at this stage. On the upside, the 435-450 area would appear to be about the expectation and would be inclined to lighten commitments if that level is reached. On the downside ,,–J There wilJ.—;–of cour's..e,,41b0e. m1Jcli wider'pri,ce-mbvements in-m.d,lvidual'- J issues with continued selectivity. Individual groups can move in both direct ions as witness the sharp decline in the aircraft issues over the past month or mere. vJarning of this was given in the March 18th letter which said; I would avoid and switch out of aircrafts and other defense issues. The technical patterns of issues in this group are becoming quite vulnerable and the upside potential does not warrant the downside risk involved. — Reproduced below is my recommended list. Because some of the issues are very near upside objectives or for other reasons, I have eliminated some nineteen issues from the list. The issues eliminated are listed at the of the letter. Price resent Recom. Price Yi.eld Advice Alleghany Corp. 3 '3/4 8 Allegheny Lud. 33-30 47 Allied Stores 38 56 Allis Chalmers 4548 77 ArneI'. Chain Amer.Encaustic T 30-33 7 39 13 Amer.Potash B 40 84 ,, Amer.- Ra-dci-a,toI' ArneI'. Tel & Tel – . J.,4-1-6 h 150 , 23, 181 Assoc. Dry Goods 26- Balt . & Ohio 23-25 29 45 Barber Oil Black & Decker 59 39 58 58 Blaw-Knox 22-18 27 Bucyrus-Erie 22-23 35 BCuarlgroaurygh&s Add. Ed. 15-17 16 29 15 Celanese 31-37 23 Certain-teed 15 26 Chain Belt 30-35 46 Cities Service 38 4.8 City Products 37 37 Coca Cola 122 122 Colgate Palm. 60 53 Combustion Eng. 45 70 Consol.Natl.Gas 25-27 34 Cont'l Motors 10 12 Corn Products 70-75 88 Cornell Dubilier '21'-22' . – 33 – Cutler Hammer 57 72 Dow Chemical 38-40 49 Dresser Ind. 33 44 Eagle Picher 22 34 Fansteel 22-24 29 General Mills 69 70 Great North.Rwy. 30 41 Greer Hydraulics 12 15 Hall Printing 16-17 21 Hewitt Robins 25-30 32 – 4.3 5.4 5.2 6.4 5.4 2.4 – 5.6 5.0 . 5.5 2.2 3.5 3.4 4.4 5.7 3.4 3.3 2.2 4.8 5.4 4.1 6.8 4.1 4.7 4.3 4.0 6.7 4.4 5.8 4.2 2.0 5.7 4.4 1.7 3.6 5-.4 6.7 63 Hold for 12 then 17. Buy for 74. Hold for 78. Held for 90. Hold for income and 58. Hold for 17-19. Hold fer 110-12C. -Ho.l.d,.f.or–2B,JollQ.w,epby 45,., -;0 Buy for income and 200. Buy for 44. ' Hold for 50-55. Buy for long term gain. Hold for 135.Buy 52-50. Hold for long term 52. Hold for 47!50. Hold for long term 45. Buy for long term speculaticn. Hold for 34. , , Hold for long term 49. Hold for lcng term 78. Buy for 8l. Buy for income. Buy for long term 200. Buy for 71. Hold for 82-92. Hold for 50-52. Hold for 18. Hold for 133 Hol'd fo-r 42-'45. – ,-' Hold for 120-140. Hold for growth. Buy for 70-80. Buy for 61 then 97. Buy for 49. Buy for long term 110-125. Hold for 48. Hold for speculation. Hold income. Buy for 43 then 85. – — — – — — —- —..;–;;;..—,,' , -2- Industrial Rayon Inter. Tel & Tel Jaeger Machine Joy Mfg. Lion Oil – ,&coPcpo…r Mission Corp. M-K-T, pfd. Monsanto Chern. Mont.Dak.Util. N.Y. hir Brake N. Y. Central Northern Pac. Otis Elevator Facific Pete. Pan-Amero VI.Air Paramount Parke Davis Penn Salt. Pfizer & Co. Fullman Raybestos Man. Raytheon Robert.Fulton St. Joseph Lead SSiimnm-colnasnC-oo.rl' .. Sylvania Elec. Tungsol Elec. Union Carbide Union Oil of Cal. United Fruit United Mer.& Mfg United Shoe Vanadium Warren Pete. Western Auto Western Md. Rd. Western Pac. Yale & Towne Frice Recom. 45 18 27 47 35 -38 55 93 26 18-22 20-21 59 39 11 11-13 23 32-35 45-48 28-32 51 42 10-12 21 40 36 ,- 35 28 63 45-50 47-50 19 50 19-20 25-28 25 18-25 55-60 45 Present Frice Yield 54 5.6 27 4.4 30 6.7 48 5.2 51 3.9 -7266- ' – – 38 87 6.9 126 2.0 28 3.6 26 6.2 41 4.9 75 4.0 65 4.6 11 0.9 19 4.2 41 4.9 43 4.2 49 3.8 46 2.9 60 5.0 51 5.9 24 32 5.6 46 4.3 – 43 5.8 45 4.4 30 4.2 88 2.8 53 4.2 55 5.5 22 4.5 51 4.9 47 3.8 47 4.3 28 5.3 41 66 4.5 57 3.5 dvice Hold for long term 79. Hold for 31-33. Hold for 40 then 52. Buy for 75-100. Hold for growth. BBuuyy ffoorr '3l-o4ngT5t-eHromwedg-abiny. – // Buy for 56. W…. Hold for over 100. Hold for growth. Buy for 45-60. Hold for 34. Hold for long term 60. Hold for 100. Hold for long term 97. Buy as long term speculation. Buy 20-18 for 27 followed by 45. Hold for 57. Buy for 52-56. Buy for slow 69. Hold for long term 58-65. Buy for long term 85. Buy for 82 then 97. Hold for long term 46. Hold for 40-46. Hold for 57. BuY-ffoorr 7551-thtehrie-Sn.3;rL- .- . Buy for 65-68. Buy for 45. Buy for 86-88, for growth. Buy for 76 then 95. Buy for income then 86. Hold for 26 then 36. Buy for long term 100. Hold for 57. Hold for long term 70-75. Hold for income and 36. Hold for 46 then 53. Buy for 100. Hold for long term 105. Below are the nineteen issues eliminated. There are approximately 330 points profits in these stocks Abbott Lab., Celotex, Chicago & East. Ill., Columbia Broadcasting, Flint- kote, Garrett Hercules Motors, Hershey Chocolate, Hooker Electric, Idaho Power, Lees (Jas.), Lehman Corp., Lowenstein, Montgomery Vlard,. – Penkk & Ford,Shamrock 01l;-'Vrctor–ChemicaT, Visking'Corp.,-Vles-terrl' ., Union. EDMUND W. TABELL WALSTON & CO.