Tabell’s Market Letter – January 17, 1969

LE Walston &Co. – – -….-Inc – – – – – Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OVER 100 OFFICES COAST TO COAST ANO OVERSEAS TABELL'S MARKET LETTER January 17, 1969 The market slide was, at least temP9rarily, reversed last week with impressive gains being posted on Tuesday, Wednesday and Thursday. A weak start on Monday, plus profit-takingtowarcirtmnend,of,the Friday session, pared the week's gain to a modest amount in the popular average's, however. Certainly the rally was hardly surprising. It began from a point where the market was deeply oversold on a short-term basis and where most averages had reached downside objectivesfA number of questions, however, remain unanswered. These center, by and large, on tEe eventual shape of the base for the next advance. One possibility would be a d drift in perYiaps even iIiVoI Another would be a move back to around the 950 level and extension of the base that pOintJIn either case, we feel the present level constitutes an attractive buymg zone and are, accordingly, adding a number of stocks to our Re(!ommended List. They will be review ed in more detail in subsequent letters. The following issues are being added to our ,UU & Long-Term Growth section – BOSTON EDISON (44 3/8) BSE has undergone a sharp improvement in earning power in recent years, and with the outlook bright for a continuation of this trend, the share are considered attractive for income and appreciation over the longel'-term. JEWEL COMPANIES (46 1/2) Located throughout the Far West, New England and Central states, JWL is a leading supermarket chain. In addition, it operates chains of drug stores, bakery-ice cream shops and home service food routes. Projections call for impres- sive earnings gain in fiscal year ending January 1970. 0 WINN-DIXIE (36) Another leading supermarket expected to post a better-than-average earnings gain as it increases distributing tions in the fast-growing southland. JOHNS-MANVILLE (85) .. Shares of the anticipated housing able as earnings continue their untr,erftl. increasing dividend payments. NEVADA POWER (42 for Las Vegas and vicinity, NVP's longer-term outlook wo d Sing. Earnings for the next few years are ex- pected to outperform ic power companies, rising close to 10 annually. Added to t AIR PRODU section are the following issues' A leading factor in industrial gases, APD is expected to resurgence in both the steel and chemical industries. (42 1/2) . The leader in the production of light whiskey, ADC is increasing consumer demand for light spirits. CENCO INSTRUMENTS (55 8) .. In the midst of a major expansion into hospital and nursing home construction, CNC's future earnings performance could be highly favorable. DAN RIVER MILLS (25 3/8) Progress toward diversification and a more balanced product mix is expected to account for an earnings resurgence in 1969. GENERAL CIGAR (32 1/8) Continued acquisitions and an increase in cigar CU'UO,ULUpn tion could have major impact on future earnings. Meanwhile, new income peak due this year. INGERSOLL-RAND (50 3/4).. Aft er several years on plateau, IR earnings expected to record new peak this year helped by recent merger with Torrington Company SUBURBAN PROPANE Profit'margins to be helped by declining gas — costs, SPG seems to offer investors above-average growth and income prospects. The following volatile relatively high-risk issues are being added to the Speculative Price Appreciation section of our Recommended List AUTOMATIC DATA PROCESSING (693/4).. Outstanding earnings growth of last five years to be extended this year. COMPUTER SCIENCES (561/2). Demand for CSZ computer services rising as re- flected by impressive earnings gain in recent years and' favorable outlook for 1969. KYSOR INDUSTRIAL (35).. Prospective increase in air-conditioning sales to truc industry suggests attractive sales arrl earnings increases for KZ. MESA PETROLEUM (38 1/8.)1; Interest in medium-sized oil companies and rapidly rising earnings suggest attractive potential for MSA. Dow-Jones Ind. 935.54 Dow-Jones Rails 267.82 HARRY W. LAUBSCHER for ANTHONY W. TABELL WALSTON & CO. INC. This market Jetter Is published for your eonvenlence Ilnd informlltlon lind IS not lin offer to sell or a soliCitation to buy any securities I.hscussed The m- formation was obtamed from sourees we leheve to be rehable, but we do not guara.ntee Its lCeura.cy Walston & Co.. Inc. and lts officers, directors or …..,. . have interest In or purehase and sell the referred to helcm A WT nVVL WN.BOI