Tabell’s Market Letter – November 13, 1959

Walston &Co. Inc fiLE COP1 Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lEnER November 13,1959 General weakness in the averages dominated the week's market action. After brea ing out of the trading range in which it has held for some time, the Dow-Jones Industrial average returned to the top of the range, reaching a low of 640 .01 on Friday. This is norm 1 technical action and current levels should constitute a fairly strong support area. In orde to confirm the upside penetration, some recovery should take place from these levels. As has previously been noted, the keynote of the market will still be selectivity. In this connection, we are reprinting below our entire recommended list. Again it is divided into two parts – the regular list, and a package recommendation of low-priced issues. on this listas co.uldbe expected.in ,anirreg)JlarmareJ, . poorly and are selling below recommended prices. Of these, six are in the oil group whic has, of course, been under considerable pressure due to heavy tax-loss selling. Retention of these stocks is recommended for the time being, although they could be candidates for sale when tax-loss pressure abates after the 1st of the year. Two other issues selling be- low their recommended levels are in the aircraft group,.Northrop Corp. and Rohr Aircraf This group has begun to act better and it is believed that the current rally could carry bo h stocks close to or above their recommended levels. Rohr was reviewed in our letter of last week. Northrop runs into heavy supply at around 35 and might be disposed of on stre into that area. Other stocks selling below their originally recommended price such as American Viscose, Great Northern Paper, Newport News Shipbuilding, Northwest Airline and Schenley, are close to support and would appear to be attractive purchases on any further weakness. Other stocks in the list, despite substantial advances, attractive. Coca-Col advanced to a high of 169 early last week, but new it appear attractive even at current levels. The meat packing group t g, Wilson & Co. des pite the fact that it has almost tripled since the or' I' ation, still seems in- teresting. Other stocks which seem especiall attr 'e at time areCluett Peabody, Electric Storage Battery,National Distille 'er f and International Packers American Viscose R4 National Distillers 27 32 Butler Bros. Chic. Mil. St. Pa Cluett Peabody Coca-Cola Consolidation Coal Dayton Rubber Elec.Storage Battery Fansteel Metallur. Getty Oil Great North. Paper Heinz, H.J. 4 36 32 54 60 28 57 56 7 56 165 41 32 56 67 18 50 85 Newport News Ship. Northrop Aircraft Northwest Airlines Pan ArneI'. World Air Pennsalt Chemical Rohr Aircraft Royal Dutch Schenley Industries Shell Transport Singer Mfg. Union Oil of Calif. 47 33 38 12 23 24 48 43 22 48 50 38 31 34 22 29 19 40 35 20 49 44 Intern'l Min. & Chern. Kaiser Aluminum Magnavox Monsanto 29 41 40 38 Rec, Price Avco 9 Chemway Curtis Publishing Decca Records 11 15 18 Divco- Wayne Fedders Corp. Freuhauf Trailer Home Oil A and B 17 19 17 20 30 U.S.Foil B 49 West Virginia Pulp 69 Westinghouse Elec. 50 Wilson & Co. L O . W – P R I C–E D – L- IST 33 49 88 15 Current Price 14 12 12 18 22 18 28 12 Hotel Corp. Intern'l Packers Kaiser Industries National Can Oliver Corp. Pacific Petroleum Publicker Ind. Rayonier United Industrial Rec. Price 7 15 15 14 19 18 11 19 13 39 56 98 43 CPurrirceen 7 23 15 9 23 12 9 24 16 15 mnr\et etter IS not. and under no circumstances is to be construed as, sWqu\lAJa'Elau seeunbe! referred to herem. The mformatlOn fMf of or eompleteness opinion are nnd thtoe fchua'WriYr' WiN,neot;, pircumsatnandces is to beDcIorencsttorurse,d Satso,cakhroelpdreerssenatnad p 11 &,e an interest in the securities mentIOned hereIn. This market letter Is intended and presented ml!rcly as a general, day marW news not as a complete analYBIB AdditIonal Information with respect to any securities referrC!d. to herein will be furmshed upon request WN 301