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TECHNICAL MARKET ACTION The most active issue in Thursday's market was Radio-Keith-Orpheum Corporation (RK) which closed at 10 1/2, up 3/4 on the day. The stock has been mentioned in this letter times over the past six months as an issue an intrinsically bullish technical pattern. RKO has done little marketwise since 1943. The present stock is the result of a reorganization in 1940 when each share of old stock received 1/6 of a share of new stock and a warrant to purchase one share of new stock at 15 through January 1, 1950. From its listing in mid- 1940 until March 1943, a period of two and one-half years, RKO held in a. narrow trading range of 2 low and 3 '7/S high. In March of 1943, PJ(Q started a sharp percentage rise which carried the stock to a high of 10 us. In the subsequent reaction in the market in late 1943, RKO sold down to 7. Since that time, fluctuation has been extremely narrow with a high of 10 3/S and a low point of 7 7/8. The trading shelf between roughly 7 and 10 appears technically to be a three year period of re-accumulation. Thursday's upside penetration on heavy volume may indicate the start of another Purchase of RKO is as a speculation with excellent prospects for a sizeable percentage rise. As for the general market; continue to expect a selective rise in special situations. Advise retention recommended issues and the purchase of the stocks below if the following technically bullish levels are reached. X American Rolling Mills X Bethlehem Steel Sharon Steel Superior Steel Underwood Corp. Closed At 22 '/a S21/2 22 3/4 31 3/4 66 Buy …AL 23 3 24 33 67 EDMUND W. TABELL SHIELDS & COMPANY August 30, 1945 Closing Dow-Jones Industrials Dow-Jones Rails 172.37 54.99 The opinions expressed in this letter are in the personal interpretation of charts by Mr. Edmund W. Tabell and are not presented as the opinions of Shields & Company.