Tabell’s Market Letter – September 23, 1955
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Walston &- Co. NEW YORK NEW YORK STOCK EXCHANGE ANO OTHER LEADING STOCK AND PHILADELPHIA LOS ANGELES SAN FRANCISCO OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE wIRe EXCHANGES LUGANO ISw,t..,IdJ TABELL'S MARKET LEnER September-23, 1955 The rails, after failing in last week's attempt to decisively penetrate the June high of 164.59, are again in the process of attempting an upside breakthrough. Friday's high was 164.65. Ability to decisively penetrate the over five-month trading area in the rail average would indicate an upside possibility of 172-179. The Dow-Jones industrial average reached its short term upside objective of 490 at the week' high of 489.94 and while there is no indication of an immediate top, some consolidation may be needed. The 470 level is a strong support level. The rails, if they penetrate upside, would seem to offer better near term profit possibilities than the indus- 'is -possible that–the–rndustrial- average-mi'ght hord-in' roughry – – the 490-470 range for a time while the backward rails catch up. The over-all pattern after that possible occurrence would then give some indication of the direction of the next move. Of course, all discussion of averages is academic. Particularly in short-term trends, individual stocks even in the same group will have diverse price action. The intermediate pattern remains the same. While there is no indication of immediate vulnerability, many individual issues have reached upside ob- jectives and I would continue a policy of lightening capital appreciation accounts on strength when upside objectives are reached. Below is a summary of my recommended list. While some of these issues have advanced sharply since our last compilation, I suggest continued hold- ing as the ultimate upside objectives are considerably above current levels and there are support points not too far below the market. In cases where two objectives are mentioned, the lower objective is the nearer term poten- tial followed by a resting period and possible attainment of the higher ob- jective over the longer term. Present Price Price Recom. Yield Aevice Alleghany Corp. 10 – A-n-e-gheny-Lutnum—-5-S— Allied Stores 61 American Chain 46 Amer.Potash B 98 Assoc.Dry Goods 35 Barber Oil Black & Decker Calgary & Edmonton 55 77 17 Celanese 24 Chain Belt 55 Cities Service 62 Coca-Cola 135 Colgate Palm. 58 Cornell Dubilier 33 Cutler Hammer 72 Dow Chemical 57 Dresser Ind. 48 Eagle Picher 38 Gen'l Rwy.Signal 62 Hall Printing 24 Hewitt-Robins Joy Mfg. — 39 – 61 Magma Copper 115 Monsanto Chern. 48 Montana-Dakota Util. 29 Pacific Petroleum 12 Pan-Amero World Air 19 Raybestos Man. 58 Robertshaw-Fulton 30 Simmons Co. 47 Sinclair Oil 58 United Fruit 56 Western Auto Yale & Towne 29 68 3 3/4 38 30-33 40 26 59 39 16 31-37 30-35 38 122 60 21-22 57 38-40 33 22 59 16-17 25-30 47 75 31 26 11 11-13 42 21 36 46 47-50 25 45 – -HH(oilrda-fCfo5rI'11J2s.-1S7u. ppS-uoprtp-oartt aSTt '850. . 5.0 Hold for 98. Support at 57-55. 5.4 Hold for income. Support at 41-39 2.2 Hold for 120-150.Support at 88-85 5.1 Hold for 45-65.Support at 33-31. 3.6 Hold for 80-115. Buy at market. 2.6 Hold for 135. Support at 68-64. – Buy for long term speculation. 2.2 Hold for 34.Support at 22-20. 4.6 Hold for long term 78. Support at 3.2 Hold for 81. Support at 55. 3.7 Hold for 200. Support at 130-125. 4.3 Hold for 73-100.Support at 54-50. 6.1 Hold for income.Support at 30-27. 4.2 Hold for 120-140.Support at 65-60 1.8 Hold for growth.Support at 54-50. 5.2 Hold for 70-85.Support,at 43-41. 4.7 Hold for 61 to 77.Support at 33-3 4.0 Hold for 140-150.SuPP9rt at 50-48 5.0 Hold for income.Support at 20. 5.1 Hold for 85.Support at 35-33. 4.1 –Hold -for 75150Support at 55-50. – Hold for 200.Support at 100-90. 2.1 Hold for growth.Buy at 43-40. 3.5 Hold for 45-60.Support at 28-25. 0.8 Buy as long term speculation. 4.2 Hold for 27-45.Support at 18-17. 5.2 Hold for income.Suppprt at 53-51. 5.0 Hold for 40-46.Suppo'rt at 28-26. 6.3 Hold for 71-96.Suppqrt at 43-40. 4.5 Hold for 65-89.Suppdrt at 55-52. 5.3 Hold for 86.supportfat 55-52. 5.5 Hold for income.Support at 28-27. 4.4 Hold for 105.Support at 60. ED/lUff') 'oN. 'f1'!rELL J – I \, J