Tabell’s Market Letter – March 17, 1961

r -…..,.-.-'– copyI filE Walston &Co. tnc. – – – – – Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CI-\ICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER March 17,1961 After backing and filling during the early part of the week, the general market turned strong late Wednesday afternoon and the Dow-Jones Industrials reached an intra- day high of 681. 63 on Friday, considerably exceeding the March 3rd high of 676.14. This letter continues to belleve that a constructlve attitude toward the market is still warranted, despite the sharp advance, and the upside objective for the Dow continue to be in the 700-750 range. Whether or not this level will be reached in a straight-line advance is problematical. Obviously, a correction of some nature is possible at this sta e of the game, but, as has been previously pointed out, most bull markets in recent years have tended to run their course wlthout any substantial correction until the top, or. some- thing very close to the top, is reached. Thus, It is far more lmportant to seek out secu- rities at levels which seem to represent attractive values and make immediate purchase rather than wait, perhaps in vain, for probable short-term reactions. In this connection, we are again publishing our recommended list of some 114 securities. Of these 114, 58 are rated as suitable for new buying at this time. The re- mainder consist of previously-recommended stocks where retention is still advised. Two stocks have been removed from the lIst as they have reached previously stated technical objectives. These are Northrop, which has reached its objective of 52, and Universal Oil Products which has attained its potential of 45. Northrop was originally recommende at 33 and Universal Oil at 31 3/8. The complete list can be obtained from your V,lalston repre sentative. A close analysis of the market action of the stocks on our list reveals that their performance has been satisfactory. As stated above, there are 114 stocks in the list, in addition to 5 which have been removed since the 1st of all but 5 are selling above their originally recommJr6ded 60 these 119 securitie , 49 of the 119 are sell ing 20 or more above their originally f t , 7 have advanced more than 50 with the largest advance being almoN; si he original recommend – tjol.l. The most serious.decline has been Hon of the performance of these ere originally suggested for purchase. 500/0 7 300;0 – 49 Is v ed 10 – 19 s es anced less than 100/0 s s declined 42 37 28 5 119 EYen more interesting is a tabulation of recent performance, since the various stocks in the list were recommended at different times. The list was largely expanded and revised at the end of 1960 at which time the Dow-Jones Industrial average was sell- ing at 615.89. To Thursday's close it had advanced to 670.38, or some 8.1. Of the 109 issues that were suggested as suitable for new buying on December 30, 1960, 75 have advanced more than has the Dow. Thirteen are now selling more than 30 above their levels of two and one-half months ago, and 30 are selling 20 or more above those levels. Only 7 issues have declined since the end of the year with the most serious de- cline being 10. A complete tabulation of the performance of these stocks since De- cember 30th follows Issues advanced 300/0 or more 13 Issues advanced 20 – 29 17 Issues advanced 10 – 190/0 43 Issues advanced less than 100/0 29 Issues declined 7 109 Obviously, after a performance of this nature many stocks are close to upside objectives and will become candidates for profit-taking as the market advances. We are, however, reluctant to remove stocks from the list until six months after the ori- ginal recommendation, or unless the market pattern deteriorates markedly. As the ad- vance continues,acceptance of profits in various issues will be suggested in this letter. D lbl,ij. m.rrrlult.letter ./lot. and he18 to bc conetrued as, an ff to 11 A or completeness Rnd the furnJshmlf t eroo tlon by. Walston 4…,Co All expressIOns of opinion are subJect to. c;hange '1fY I ..J .Mtonh8etrrueemd aTsh, ea inrefoprrmesaetnIOtan d Qi.t; Dlrectors Stockholders and m'erely as a general. informatIOn WIth respect to an'y secunlles referred to herem ———- .———– — lI i ' f!…. Cfl RECOMMENDED LIST OF STOCKS Edmund W. Tabell I March 17, 19 61 SELLING ABOVE 1 Walston &Co. Inc. ! A SHARE Close 3/16/61 American Broad. Para. 47 3/4 American Chicle 88 3/4 Amer. Metal Climax 27 1/8 Amer. Optical 64 1/2 Amer. Potash & Chern. Amer. Smelt. & Ref. 53 60 1/2 1 Amer. Stores 81 1/2 American Viscose 47 1/8 Anderson Clayton 39 3/4 Arkansas Louis. Gas 40 3/4 Audio Devices 28 1/2 Barber Oil 70 Bestwall Gypsum 48 Boeing Airplane 47 CIT Financial 75 1/8 Carnation Co 84 Caterpillar Tractor 35 7/8 Central & So. West 41 Chicago Pneumatic Tool 36 1/4 City Produ cts 52 3/4 Cluett Peabody 71 1/2 Columbia Pictures 30 1/2 Columbian Carbon 55 3/4 Consolo Mining & Smelt. 23 5/8 Consolo Natural Gas 56 1/4 Crown Cork & Seal 65 3/4 Daystrom 29 3/8 Deere & Co 55 1/4 Diamond National 46 1/2 Dome Mines 21 7/8 Eastern Gas & Fuel 35 5/8 Electric Storage Battery 61 5/8 El Paso Natural Gas 27 7/8 Ex-Cell-O 39 1/8 Fansteel Metallurgical 53 1/2 First Charter Financial 39 1/8 Food Machine Chern. 73 3/4 Ford Motor 77 1/4 Freeport Sulphur 32 Garrett Corp. 55 5/8 General Amer. Transport. 83 1/4 General Mills 33 1/4 General Precision Equip. 74 1/8 Georgia Pacific Plywood 65 Gerber Products 84 Granite City Steel 43 Great Northern Paper 65 Great Western Financial 45 Great Western Sugar 31 1/2 Haveg Industries Hercules Powder 107 3/4 95 Hertz Corp. 64 1/2 Heyden Newport 25 1/2 Holly Sugar 31 1/2 Ideal Cement 29 7/8 Original Recom. Price 45 3/4 76 24 5/8 54-50 42 7/8 55 1/8 77 3/4 52 3/8 36 3/4 35 3/4 26 3/8 70 41 36 3/4 67 66 1/4 30 1/2 40 1/4 28 3/8. 443/4 56 3/4 21 7/8 52 1/2 20 3/8 51 1/8 43 1/8 45-43 52 3/4 35 1/2 25 1/8 29 3/4 54 28 35 3/4 45-44 29 1/8 60 3/4 69 1/2 24 7/8 51 7/8 79 3/4 32 3/8 56 49 56 37 1/2 57 31 1/4 29 86 5/8 80 1/4 65 1/8 23 7/8 30 1/2 26 7/8 &P Rating B A B B B B A B B ABB A A A B B B B B B A BB B B B B B B A B A B A AA A B B A B B B B A A B B Comment fBuY-Hold Hold for 95-100 ' Buy-Hold I Buy-Hold i Buy-Hold Buy-Hold I Buy-Hold Buy-Hold f Buy-Hold ' Buy-Hold II Buy-Hold Buy-Hold , Buy-Hold Buy-Hold Buy-Hold Hold for 107 Hold for 45 Hold for 54 Hold for 47 Buy-Hold Hold Buy-Hold Buy'Hold Buy-Hold Buy-Hold Hold for 75-80 Buy-Hold Hold for 80-85 Buy-Hold Hold Buy-Hold Buy-Hold Buy-Hold Hold for 50 Hold for 58 Hold Hold for 90 Buy-Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold Hold Hold for 90 Buy-Hold Buy-Hold Hold Buy-Hold Hold Hold for 115-125 Buy-Hold Buy-Hold Buy-Hold Buy-Hold Close 3/16/61 Insurance Co. ,N.A. 893/4 Intern'l Mm. & Chern. 42 1/8 Intern'l Tel & Tel 58 3/4 Jewel,'re,a 57 3/4 Johns Manville 71 Johnson &l.J'lOhnson 'h Kennecott' Copper 102 85 Kern C04nty'Land 64 5/8 Lone Star'Gas 23 3/4 Louisiana Land Explor. 71 Magnavox Co 65 7/8 Marquette Cement 63 1/2 Martin Co 35 7/8 McCall Corp. 51 1/4 McIntyre Porcupine 29 3/4 Mesabi Iron 115 Microwave Associates 54 3/8 Miss.River Fuel 38 1/4 National Aviation 28 1/8 Newm9nt 'Miiling' 70 1/2 North Amer.Aviation 49 1/2 Northern Natural Gas 33 7/8 Northern Pacific R.R. 47 1/2 Oklahoma Gas & Elec. 38 7/8 Pacific Gas & Elec. 83 Panhandle Eastern Pipe 51 1/2 Penney, J.C. 41 1/2 Phillips Petroleum 59 1/2 Pillsbury Mills 49 3/8 Pitney Bowes 45 3/4 Pittsburgh Plate Glass 76 1/4 Reeves Bros. 23 1/2 Richfield Oil 99 Royal Dutch 41 7/8 Seaboard Airline R.R. 31 7/8 Seaboard Finance 28 5/8 Singer Manufacturing 73 1/4 Southern Calif. Edison 74 1/8 Southern Natural Gas 42 1/2 Standard Oil of Kentucky 74 Sterling Drug 83 Swift & Co 45 7/8 Tennessee Corp. 55 7/8 Texas Gulf Sulphur Thompson Ramo Wool. Twentieth Century-Fox 23 1/8 75 3/4 53 3/4 United Air Lines 40 1/2 United Artists 38 3/4 United Biscuit United Shoe Machinery U .S.Borax U.S. Foil B U. S. Vitamin Varian Associates 41 3/4 71 42 1/2 39 3/4 44 3/8 63 Warner Bros. Pictures Winn-Dixie Stores Woolworth, F. W. Wrigley, Wm., Jr. 67 29 5/8 70 5/8 105 3/4 Zenith Radio 119 1/8 -2- Original Recom. Price 78 32 48 50 1/4 60 74 3/4 74 1/8 53 23 5/8 50 1/2 19 53 1/4 26 29 7/8 27 3/4 86 1/2 33 1/8 34 1/8 27 3/4 62 1/2 41 1/2 30 3/8 42 1/8 35 1/4 75 3/4 47 7/8 41 1/2 53 7/8 44 5/8 41 69 3/4 24 5/8 84 42 32 3/8 22 1/4 48 66 38 3/8 70 1/2 69 3/4 44 1/2 50 19 1/8 57 3/4 36 3/4 30 3/4 32 1/2 37 3/4 59 37 3/4 50 1/4 37 40 3/4 52 7/8 22 1/2 69 99 99 1/4 S&P Rating B B A A A B A A B A B B – A AB AA AA A A A A BA A B B A AA A B A B A B B B B B B B A B A AB A Comment Hold JBUY-HOld Hold Buy-Hold, , ' 'Hold IBuy-Hold IHold for 80-85 Buy-Hold Hold Hold for 75 Hold for 70-86 Hold Hold I, Buy-Hold Hold Hold for 65-75 Hold for 50 Buy-Hold I Buy-Hold Hold I Buy-Hold Buy-Hold Hold for 54 Hold for 90-100 Buy-Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold for 90-95 Buy-Hold Hold for 120-130 Hold for 45-50 Buy-Hold Hold for 34 Hold Hold for 80-90 Buy-Hold Buy-Hold Hold for 98 Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold , Hold for 56 Hold for 45 Buy-Hold Hold for 80-100 Buy-Hold Hold Buy-Hold Hold Hold for 75 Hold for 32-34 Buy-Hold Hold Hold for 150-170