Tabell’s Market Letter – July 20, 1956

… . , NEW YORK Walston &Co. – – – – – I n c . Members New York Stock Exchange PHlLAOELPHIA LOS ANGELES SAN FRANCISCO OFFICES COAST TO COAST CONNECTED BY DIRECT PRIYATE WIRE BASLE iSw,I..d) TABELL'S MARKET LEnER July 20, 1956 The market, as has been expected, is running into a good deal of overhead resistance in the 510-520 area on the Dow-Jones industrial aver- age. Indicative of this resistance, my intermediate term technical indi- cator registered a sell signal at Wednesday'-s close. Support for any de- cline should be registered in the broad 490-480 area on the industrials and around 163-160 in the rails. As usual, action will continue to be focused on individual stocks rather than on the averages. The attention of the investor, if any weakness develops over the next few weeks, should be devoted to selecting issues for new purchase on the aforementioned '–weakness. six months continues-, –issues–which – are attractive from a fundamental and technical point of view will decline far less than the general market and any minor setbacks should be used for the purchase of recommended stocks. As noted in last week's letter, twelve stocks were added to my recommended list. In order to maintain the list at a workable size, I have found it necessary to eliminate eight issues which have advanced rather sharply since the time of their original recommendation. It is to be emphasizedthat removal from the list does not in any way constitute a sell recommendation. All of the issues eliminated have longer term objectives considerably above their current prices and may be retained in long term capital appreciation accounts. However, in most cases intermediate term objectives have been reached and the issues eliminated appear in need of some consolidation before any advance is resumed. New purchases should be selected from among the issues being retained in the list. The eight issues eliminated, together with their original Lt lslnJ&restj.ng-.t9 note that all 8000 . investment, -1000. in each one of these issues at the time of their original recommendation, would now be worth 16,557. American Potash Barber Oil Chain Belt Cities Service Cutler Hammer Dow Chemical Dresser Ind. Sinclair Oil Price Recommended 16 59 30 38 57 39 33 46 Present Price 49 78 70 71 110 79 83 69 I am also transferring two issues, SIMMONS and MONTANA-DhKOTA UTILITIES, from the regular recommended list to the income list. This list is designed for investors who in- come commensurate with quality, plus slow, long term capital apprecia- tion. The new recommended list is now as follows Present Price Alleghany Corp. 3/8 Allegheny Ludlum Amerada Petroleum 113 Black &- Decker 48 Butler Bros. 26 Calgary & Edmonton 25 Chicago Corp. 26 Colgate 56 Cornell-Dubilier 27 rice Recommended 3 3/4 16 103 19 23 16 24 60 21 Yield – 3.6 1.8 2.5 5.4 0.4 3.8 5.4 7.0 BuyHold. Support at 8. 38-7. 105-95. Buy-Hold.Support BuyHold.Support 24-23. 55-50. Buy-Hold.Support 25-24. – , —- ——————————————————- '-.1 Present Price Eagre – -42'''- Eastern Airlines 50 Food Machinery 73 General Rwy Signal 85 Hewitt-Robins 41 Internat'l Pete 36 Johns Manville 56 Joy Mfg. 58 Kaiser Alum. 65 Magma Copper 114 Masonite 48 Monsanto Chem. 42 National Dist. 26 Norfolk & West. Pacific Pete. 20 Pan-Amero World A 20 Panhandle East.Pipe 99 Pittston Co 54 Royal McBet 36 Sunray Mid-Cont. 28 Sylvania Elec. 52 Tennessee Corp -3 Western Pacific 76 West'house Air Br 36 Yale & Towne 32 -2- Price Recommended Yield Advice 47 51 59 25 34 50 23 46 75 41 31 64 11 12 45 31 25 49 50–. 73 33 18 – -4 ;3–.;.BuyHoldSuppert,4038-. 2.0 Buy-Hold. Support 2.7 Support 65-63. 3.5 Buy-Ho'ld. Support 4.9 Support 38-36. 3.6 Support 33-31. 3.8 BuyHold. Support 2.8 Buy-Hold. Support 52-50. 1.-4 Hold. Support 52-48. – BuyHold.Support 10595. 3.2 BuyHold. Support 4240. 2.4 BuyHold. Support 41-39. 3.8 BuyHold. Support at-23. 5.2 BuyHold. Support 65-62. BuyHold. Support 4.0 Support 18-17. 3.0 BuyHold. Support 2.2 BuyHold. Support 3.9 Support 4.3 Support 3.8 Support 4947. – 5. 3.9 BuyHold. Support 3.3 Support 30-27. 4.7 Buy-Hold. Support at 27. awt;amb EDMUND W. TABELL WALSTON & CO. INC. , , f ,I t I l , t J-