Technical Market Action The steel group average has reached new high territory for the st twenty months and has confirmed a bull market in its group. Some ividual issues in the group, however, have as yet failed to pene- rate the 1947 highs as shown in the following tabulation of the ten steel companies. Rif.; 12!1 Hih l2ill Last Sale Armco Steel Bethlehem Steel Inland Steel Jones & Laughlin National Steel Republic Steel Sharon Steel u. S. Steel Wheeling Steel Youngstown Sheet 32 … 35 1/8 42 39 95 30 r/8 40 3/8 80 53 1/8 83 32 3/8 37 1/8 45 1/4 37 5/8 99 1/4 30 3/8 39 1/2 81 50 7/8 82 3/8 … Adjusted for 20 stock dividend. 31 0/8 36 3/8 43 3/4 36 1/8 98 29 5/8 39 1/8 79 1/4 50 1/2 79 3/4 It will be noted that the two most conservative issues in the group, Inland Steel and National Steel, have shown the best market action. It is also interesting to note that some of the more specu- lative issues not included in the above tabulation, such as Granite City Steel and Lukens Steel, have also shown better than average action, Believe the steel group will become more active in the comparatively near future and move ahead while other groups are temporarily resting. There are a number of steels in my recommended list. In the better grade group, I like Youngstown Sheet & Tube (originally recommended at the 62-60 level). In the medium grade group, Sharon Steel (originally recommended at 31) and Wheeling Steel (originally recommended at 43 1/2) are in my list. As an outright speculation, Eastern Stainless Steel (originally recommended at 17 3/4) appears to offer possibilities. It closed at 19 5/8 on Monday. The 1947 high was 51. After reachtng an intra-day high of 192.31 on the industrial averag last Thursday, the market failed to carry through to our expected 195-200 area and reacted back to 189.49. Another attempt to rally on Tuesday met resistance at 192.00 and the market backed off in the final hour to close at 191.18. The rails also seem to hit resis tance at 62 in the rail average. The market appears a bit tired and may have to back down a little before pushing through into new territory. The 187,185 area should furnish excellent support on any technical correction. A dip at this point, if it occurs, might raise the next upside indication to the 205-210 level rather than 195-200. The jportant thing to remember is that the main trend is up and technical corrections should be welcomed as an opportunity to add to holdings. Believe there are too many people waiting for a reaction to buy stock. Under such cir0umstances, any decline should be expected to be of only minor proportions. June 1, 1948 EDMUND Wj TABELL SHIELDS & COMPANY Closings Dow-Jones Industrials Dow-Jones Rails Dow-JOnes 65-Stock 191.18 60.88 70.48 The opinions exprossed in this letter ete .he persol1st imerpretation of charts by Mr. Edmund W. labell and lara not preSented. as the opinloM of Shiekis & Company.

Technical Market Action There is quite a bit of nervousness about and quite a bit of bearishnes. The reason for the current uncertainty appears to be founded on the fact that the market has made little or no headway since the sharp run-up of mid-May when the industrial average confirmed the previous bull msrket signal of the rail average. Since May 15th, a mstter of seventeen trading days, the industrial average has held in a narrow line formation with a high of 192.31 and a low of 187.46 I continue to believe that this area is a consolidation area rather than distribution. Individual issues and the averages have not built up top patterns. In fact, while the general market has been consolidating, numerous individual issues have continued to advance. Even in the event of a temporary downside penetration of the range, I doubt if any reaction would carry below the 187-185 support area. On the upside I believe the next upward phase will carry above my original prediction of 195-200 for the first upward swing. This objective was based on the thought that the first advancing phase would carry to that level in a short period .of time and that, technically, the market would need a broad corrective reaction. I now believe that the consolidation of the past seventeen days has cancelled the necessity of a correction at this time, particularly as the msrket did not become heavily over bought by a quick runup to 195-200. After some possible further irre- gularity, I expect a continuation of the rise to above the 200 level, with chances favoring-about 205 before a real correction takes place. It must not be forgotten that we are in a major uptrend with considerably higher prices indicated over the longer term. Obviously, such an advance will not bein a straight line. It never has been. The msrket will have periods of consolidation and correction. These periods should be welcomed as opportunities to add to holdings. At some pOint there will be a worthwhile correction of the advance. However, in my opinion, it will come from a higher level of prices than that obtaining at the moment. Our recommended list of issues continues to show better than msrket action. A number, however, have had pretty good technical corrections from their recent highs. I am listing some of these below. I believe they can be purchased around present levels. Recent High Last Sale Atlas Corp Baltimore & Ohio Bigelow Sanford . Byers (A.M.) Carrier Corp Consol.Rwys of Cuba,pfd Deere & Co Foster Wheeler General Rwy Signal Gimbel Bros Gulf,Mobile & Ohio Illinois Central Kansas City Southern Phelps Dodge Rheem Mfg Schenley Dist United Merchants & Mfgrs U.S.Plywood Wheeling Steel Worthington Pump 25 1/8 16 1/2 37 1/4 25 3/4 19 3/4 27 3/4 46 1/8 38 1/2 29 25 19 1/4 39 7/8 43 1/2 57 5/S 24 1/2 35 5/S 21 1/2 37 3/IS 50 7 S 25 5/S 23 14 1/4 33 23 1/8 17 1/4 24 1/4 41 35 26 3/S 21 5/S 17 36 3S 1/2 52 5/S 22 5/S 31 1/2 19 1/4 34S5 31//S4 22 112 June 7, 1945 EDMUND W. TABELL SHIELDS & COMPANY The opinions expressed in rhls letter lira lhe personal interpretation of charts by Mr. Edmund W. Tabel! and are not presented as the opinions of Shields a. Company, ,-

Technical Market Action The industrlal average moved into new high territory on Wednesday to reach an intra-day high of 193054. The rail average, at the intra-day high of 61.70, was still below the May 15th high of 63.07. As suggested in Monday-1 s letter, it appears that the long trading range, in which the averages had held for over three weeks, was a consolidating period and has obviated the necessity of a broad technical correction at this stage. It may mean that the industrial average can carry somewhat above the 195-200 area, wh1c h was my original projection for the first phase of the upward swing. The rail average may find the going a bit more difficult as the area between 63 and 68 is one of heavy congestion. However, individual rails appear to be behind the market. Despite the advance of the last four months, with stocks selling at their highs for the past twenty months, the market is still abnormally cheap on the basis of ratiO of bond to stock yields, on the basis of price to earnings and on the basis of dividends paid. In the last case this is particularly true when it is possible that many com- panies, with the completion of expansion, may be more liberal in their dividend policies. – There are a great many issues in our recommended list that are still available at a yield of over &,t or at a price of less than five or six times earnings. A few of these are listed below. American Radiator Bigelow Sanford Chrc.MiloSt.Paul,pfd Devoe & Raynolds Eagle-Picher Hewitt-Robbins Holland Furnace Northern Pacific Pittsburgh Coke Rheem Mfg United Merchants Western Pacific Rwy ungstown Sheet & T Approx. Price Div. 16 1.00 33 2.00 33 4 000 28 1.60 24 1.80 26 2.00 29 2.50 25 1.00 14 .60 23 1.60 20 1.60 33 3.00 84 5.00 Yield 6.2 6.0 12.0 5,7 7.5 7.6 8.6 4.0 4.2 6.9 8.0 9.0 5.9 1947 EarniB,gs 1.90 5.32 5,93 5 062 4005 4.39 4010 5.39 4.69 3048 5.36 4.01 13.31 Price to Earnings 801 6.1 5.5 5.0 5.9 6.0 7.0 4.6 2.9 6.6 3.7 8.2 6.3 June 9, 1948 EDMUND W. TABELL SHIELDS & COMPANY ClosiB,gs Dow-Jones Industrial DOW-Jones Rails Dow-Jones 65-Stock 192.56 61.25 70 091 The opinions expressed in this letter are the personal interpretation of cham by Mr. Edmund W. Tabell end ere not presented as the opinions af Shields & Company.

Technical Market Action On February 11th, when the industrial average was around 165, I issued a special letter entitled Stocks With Favorable Technical Patterns. It was my thought. at the time, that the market was at an important buying point and, after checking over the technical patterns of over 1200 listed issues, a selection of 250 stocks was made. All of these issues were mentioned in the letter and then narrowed down to 30 issues. The 30 issues finally selected as the outstanding purchases from a technical viewpoint, included both medium-grade issues and speculative issues. These issues are re-listed below together with their potential long-term price objectives. Approximate Price Recent Approx.Potential February 11th Price Long Term Object. Addre ssograph Bigelow Sanford Bliss, E.W. Borg Warner Chicago North Western Col1lunbia Gas Doehler Jarvis Electric Power & Light Elliot Company Fansteel Flintkote Gulf,Mobile & Ohio Hewitt-Robbins Illinois Central Industrial Rayon Inter.Minerals & Chem Kansas City Southern Mesta Machine Montgomery -Ward National Supply New York Air Brake Phelps Dodge Radio Corp.of Amer Seaboard Airline Sharon Steel Southern Pacific Square D U.S. & Foreign Wheeling Steel Youngstown Sheet & Tube 29 28 24 44 15 10 30 13 15 11 31 13 21 28 39 23 24 38 49 19 36 41 8 14 30 44 15 17 39 67 39 7/8 35 1/8 32 1/2 64 1/4 19 5/8 14 1/2 39 22 3/8 27 13 3/8 41 1/2 18 5/8 26 1/4 39 54 1/4 38 42 43 3/4 64 23 1/2 43 56 14 24 1/2 40 1/4 58 7/8 22 3/8 31 7/8 52 86 3/8 70 100 50 85 35 20 75 43 60 32 60 29 50 60 85 45 60 75 90 36 80 90 20 ,/ 36 65 100' 40 45 100 140 \ My purpose in reprinting the list is to draw attention to the fact that while all the issues have advanced sharply,they are still quite a distance away from the ultimate long term objectives. To those who shared the general fear psychosis of early 1948 and late 1947 and missed the opportunity to buy the market at bargain levels, it means that there is still an opportunity to buy good issues at attractive price levels. Obviously, the rise to the levels mentioned above will be interrupted many times by technical corrections. With the market indicating a major uptrend, such corrective periods should be welcomed as an opportunity to acquire attractive issues. At the moment, it appears that any worthwhile correction will come from higher levels and that only relatively minor dips will occur until the market gets heavily overbought. For trading accounts, the following issues are relatively near'the lows of the year and appear attractive technically 0 They have formed large potential base areas They are Fansteel Metallurgical (13 3/8), Rheem Mfg. (22 3/4); Reading Company (21) Chicago, Milwaukee & St. Paul pfd (33 1/8), Western Union (23 3/4) and Consolidated Vultee (ll 1/8). eDMUND W. TABELL June 11, 1948 SHIELDS & COMPANY The opinions. exprened in Ihil loner are tc personal interpretation of charts by Mr. Edmund W. Taben and are, not prtlsented as the opinIons of Shields & Company.

Technical Market Action In addition to the thirty issues speciall recommended in our letter of February 11th, I have drawn your attention, at various times, to issues that appeared to have attractive technical patterns. It has been the policy of this letter to follow through on each of these issues until sale is advised. At the moment, there are over a hundred issues in the list including the thirty issues of February 11th. Ninety percent of these issues have continued to show excellent action but a few have been laggard. I am rRviewing these disappointing issues blow. American Cyanamid (39 1/4). This issue has been a very dis- appointing market performer After reaching a low of 33 1/4 in the year. the stock rallied to 41 1/4. Very little base has been built up. Would not advise new purchases and would liquidate when either 45 is reached or when the averages reach 200205. Chicago ,Milwaukee St Paul & Pacific 5 f. (33 3/8). This issue was recen ly recommended at 32 3 and so far has done little marketwise. However, it has built up a tremendous potential base pattern and purchase and retention is advised. A penetration to 37 would have considerable bullish sinificance. Chicago & North West Rwy. (19 1/4).' While N0rth West has moved up from its low of 14 3!4,.it is a laggard in the rail group. Earnings have been disappointing but the road usually losses money in the early part of the year with the 'bulk of its earnings in the latter part. The stock has considerable leverage due to the relatively large amount of preferred ahead of it. It has a large potenti.al base pattern. Purchase and retention is advised . . Consolidated Railways of Cuba, pfd (23 1/2). This is an ex- tremely speculative situation but with dynamic possibilities. It was recently recommended at 23 1/4 and rallied to 27 3/4. It is now back to the originally recommended level. Advise purchase as a radical speculation. . Dome Mines (15 3/8). Stock has reacted on dividend news. Does not indicate much lower but it is liable to be dull for a long while. More attractive situat ons available. Pepsi-Cola (16) Has been one of the worst performers on the board However, top indicated 15 with outside chance of 11. Low was 15 5/8 A small base has been built up in the 16-19 area with the possibilit of a rally to 22-24. Would liquidate on strength. Schenley (31 1/8). Purchase was adVised in 31-33 area. The stock appears to be building up a base in the broad 2639 area. No indication of a near term move but pattern warrants retention. Western Pacific (33). Purchase was recently advised at 34 3/8. Stock has done nothing in an up market. A large potential base pattern has been built up and the stock yields 9 at present prices. Purchase and retention is advised. The oils were strong on Tuesday, but the rest of the market failed to move ahead In fact, the general market sold off in the final hour while the Oils were advancing. At Monday's high of 194.49, the industrials practically reached the lower part of my first rally objective of 195-200. However, can see the possibility of 200 205 before any important correction. Would like to see the rails confirm the recent upswing by penetrating the May high of 63.07. June 15. 1948 EDMUND W. TABELL SHIELDS & COMPANY The opinions expressed in this leHer are the personal interpretalien 01 ch.rts by MI. Edmund W. labell and are not presented as the opinions of Shields &. Company,

Technical Market Action The rails have turned stronger but, as yet, have failed to penerate the May intra-day high of 63.07 and the May closing high of 6.27. cent strength carried to a high of 61.91 on Thursday and 61.54 on y. The rail average, for the last twenty-seven trading days, has in a relatively narrow trading range bounded by a high of 63.07 a low of 59.10. The strength of the last two days has brought some the relatively laggard issues into the picture. One such issue is Chica 0 Milwaukee St. 'Paul & Pacific fd. ch was recently recommended at )2 7 The stock turned active on y and reached a high of 35 3/4 and closed at 35 3/8. Western PacifiC, another laggard issue in our recommended list, a bit more active and reached 34 1/2. Would like to see the May highs in the rail average penetrated ly. In that event, would expect the secondary rails to attempt catch 'up some lost ground. The industrial average continues to hold around the highs with vidual issues showing diverse action. As yet, regardless of the of upside progress, no distributional tops of importance have been ilt up. Until that occurs, there seems to be no indication of other minor corrections. I still am of the opinion that any worthwhile orrection will come from a somewhat higher level. Individual issues in our recommended list continue to show exellent market action. Radio Corp.of America, which this letter has een consistently recommending in the 8-9 range, reached a high of 15 Friday. From the February low of 7 7/8, this issue has shown almost 00 appreciation. The ultimate objective is above 20. The advance s been rapid however, and some consolidation may be needed. Zenith RadiO, which was recommended at 24 3/8 in our letter of 10th, has been acting nicely and reached a high of 30 5/8. The ssue still looks attractive technically with first resistance levels t 35-37. Copperweld Steel, recommended on the same date at 15 5/8, a new high at 28 3/8 on Friday. The technical pattern continues attractive.' For new purchases, there are two issues that appear to have tively attractive patterns. One is a better grade issue and the r a speculative situation. The first issue is Commercial Solventso The stock recently sold s high as 29 3/8 and, at Fiday's close of 27, seems to have had sufficient correction. The 1946 high was 32 1/4. 'Since the September 946 break, the stock has built up a good base pattern in the 19-26 This area was recently penetrated on the upside. Purchase is ed. The other issue is Raytheon Manufacturing, listed on the New Curb. Friday's close was 9 1/4. The stock is seculative as ness the 1946-1948 price range of 30 high and 5 5/8 low. The high since the'September 1946 break was 13 1/2. Raytheon has built up a potential base pattern between 6 and 10. Purchase is advised on a speculative basis. EDMUND W. TABELL June 18, 1948 SHIELDS & COMPANY Closings Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock 191.65 61.n 70.75 The opinions expressed In 'his leHer are the personal interpretation of charh by Mr. Edmund W. labell and are no' presented as the opinions of Shields & Company. — , I –

Teehnical- Market -Action .. 'U The rails rallied sharply in the final hour of Tuesday's lrket and closed 1.20 higher at 61.76. The industtal average recovered most of the day's earlier losses and closed only 5 cents lower at 189.66. . The weakness of l9 early Tuesday had brought both averages near the lower part of te trading range of the past five weeks. In the industrial average, the market has held between the June 14th high of 194.49 and the May 19th low of 187.46. Tuesday'S low was 188.41. The range of the rail average has been the May 15th high of 63.07 and the June 7th low of 59.10. Tue sday,ts low was 188.41. The range of the rail average has been the May 15th high of 63.07 and the June 7th low of 59.10. Tuesday's low was 60.35. I consider Tuesday's action very encouraging for the nearer term. The rails seem to have again assumed the leadership of the market. This is important. The rails were the leaders in every important advancing phase of the 1942-1946 bull market. Their im- pressive action in the.early part of this year also signalled the twenty-point rally and the bull market confirmation. The rails,at Tuesday's intra-day high of 62.00 had penetrated last week's high of 61.91 and were close to the May high of 63.07. Tuesday's closing of 61.76 was even closer to the May clOSing high of 62.27. A penetration of the May highs would inicate a renewal of the intermediate uptrend in the industrials to our anticipated 200-205 rally objective. While the rail average did not penetrate the May high, individual rail issues reached new high territory. Prominent in this category was Reading Company which was recommended only ten days ago at 21. On news of a dividend increase the stock reached a high of 26 3/4 and closed at that price. Two other issues in our recommended list, Chicago,Milwaukee,St.Paul & Pacific pfd. and Denver & Rio Grande Western, also made new highs for the past twenty months or more. – The complte list of recommended rail issues is reprinted below. The stocks were recommended at various times. The list includes speculative as well as better grade issues. Recommended At Last Sale Alleghany Corp Alleghany Corp,pfd Atchison,Topeka & Santa Fe Baltimore & Ohio , Chicago, Mil.St.Paul & Pac.pfd Chicago North West Denver & Rio Grande Western Gulf,MQbile & Ohio Illinois Central Kansas City Southern Minn.St.Paul & S.S.Marie Northern Pacific Reading Company St.Louis & San Francisco Seaboard Air Line Southern Pacific Western Pacific 3 41 1/2 84 1/4 12 5/8 32 7/8 18 3/8 18 12 3/8 22-20 23 1/8 12 1/2 19 3/8 . 21 9 3/4 23 1/2 44 3.1-4 34 3/8 3 5/8 49 1/4 113 15 3/4 36 1/2' 19 5/8 33 1/2 20 llli\.8 40 3/4 43 12 3/4 26 26 3/4 14 5/8 24 5/8 59 1/2 34 All of these issues have attractive technical patterns and indicate higher levels. In addition,would add Delaware,Lackawanna & Western. to the list. It closed at lIon Tuesday. June 22, 1948 EDMUND W. TABELL SHIELDS & COMPANY The opinions expressed in thIS letter er.fl the pel'Onal interpretation of cherts by Mr. Edmund W. Tabell and are not presented u the opinions of hields & Company.

Technical Market Action The market turned reactionary on Monday, presumably on ner- vousness over the European situation. The weakness carried the in- ,dustrials below the May 19th low of 187.46 but the rails held above the JUne 7th low of 59.10. The respective intra-day lows were 186.56 and 61.07. The market closed on a firmer tone with the, industrials at 187.90 and the rails at 61.52. Monday's action was another example of divergence. This phenomena has been present at almost every turning point in the market over the past two years. This divergence has occurred at important tops and bottoms, as well as at minor turns. Last week, we witnessed a new high by the rail average at 63.48 and the failure of the indus- trial average to confirm the upward penetration of the rails. This week, three days later, we have witnessed a downside penetration of the same trading range by the industrial average with the rails fail ing to confirm and holding two points above the previous low. I believe the trading range of the last five weeks is a con- solidating period rather than a distributional area prior to a serious technical correction. This consolidating phase is a substitute for a correction of the 28 point advance from the February lows. The longer term indications point to much higher levels over the Summer and Fall. Believe the 187-185 area in the industrial average and 61 and 59 in the rails -to be buy areas. My favorite groups at this time are the rails, building com- anies and steels. , In the rail group, the following issues appear attractive technically – Atchison,Topeka & Santa Fe (112 3/4), Baltimore & Ohio (15), Chicago Milwaukee & St. Western (11 1/2), Gulf, Mobile Paul pfd (36'1/8 & Ohio (18 7/8), )I, llDienloawisareC,Lenactrkaalwa(n3n9a) & , Northern Pacific (26i), St,Louis & San Francisco (14!), Southern Pacific (58i) and Western Pacific 33i) In the building group are included American Radiator (15 3/4), Celotex (33t), Certain-Teed (18), Devoe & Raynolds (26!), Holland Furnace (27) and Otis Elevator (36). In the, steels, I prefer Copperweld (18t), Eastern Stainless (18t) , Sharon Steel (39t), Wheeling Steel (53) and Youngstown Sheet & Tube (82i), – . This list of three favored groups include very speculative issues as well as better grade issues. Other selections in other groups include Commercial Solvents (26), Electric Power & Light (22t), Radio Corp (13!), and Raytheon (8i)l , Continue to believe the rise will be' selective with individual issues showing independent strength. Witness Mullins Mfg., an issue in our recommended list that moved up two pOints to a new high while the market sold sharply lower. EDMUND W. TABELL June 28, 1948 SHIELDS & COMPANY The opinion, exPressed in this letter are the personal interpretation of cherts by Mr. Edmund W. leben and lire nol presented as the opinions of Shields & Company.

I Technical Market Action Below are some comments on the technical patterns of a few of the issues in my recommended list. Adams Express – originally mentioned at 14 7/8. Last sale 21. Has broken out of long 14-18 trading range. Reached a May high of 23 3/8. Intermediate indication is 26 followed by an eventual 32-34. Would appear that the 21-19 area is a buying range for new purchases. Has only average leverage as compared with such investment company issues as U.S. & Foreign and Tri-Continental. Addressograph-Multigraph – mentioned originally at 29. Last sale 40. Ability to reach 41 would be constructive technically and indicate an intermediate term objective of 48. Stock is relatively inactive but has an excellent technical pattern with a long term objective in the 65-70 range. Alleghany Corp. pfd. was originally drawn to your attention at 41. The last sale was 50. The recent upside penetration of the 43-44 resistance was encouraging. Longer term indications point to an eventual objective above the 1946 high of 69. However, there is some resistance at the 55-59 level that may cause some hesitation. Atchison.Topeka & Santa Fe was first mentioned in this letter at 84k. The last sale was 113 374.The first resistance level was 115- 120. The stock reached a high of 115i in May and has held in a trading range between roughly 115 and Ill. An upside penetration of the range would indicate an extension of the advance to the 125-130 level. A downside penetration would indicate 105-100. I favor an upside pene- tration. The ultimate indications point to considerably higher leveis. Santa Fe has one of the most favorable patterns in the high grade rail group. Baltimore & Ohio was added to the recommended list in April at 12j. The last sale was 15t., The stock is one of the more speculative rail issues. It appears to be behind the rail market.and the inter- mediate term indication is 20. Longer term indications point to a level above the 1946 high of 30k. Byers. (A.M.) was recommended in May at 23. The last sale was 26. The stock has been holding in the 23-26 zone since the favorable upside penetration of the eighteen-month 15-22 trading range. The in- termediate term objective is 29-31. The technical pattern indicates the possibility of an ultimate 40-45. Celotex originally entered our recommended list at 28. Last sale was 34. This stock has an excellent technical pattern, one of the best of the building group. The recent upside penetration of the 20-32 trading range,in which the stock had held since September 1946 is a very favorable technical development. The pattern suggests a much higher price level over the longer term. Intermediate term objective is 45. Certain-Teed originally entered my list at 16 3/4 last month. It also has a very favorable technical pattern. The last sale was 18. Some upside resistance may be encountered in the 23-25 area but much higher levels are ultimately indicated. . Chica 0 Milwaukee St.Paul & Pacific fd. was recently recommende at 32 3 Last sale was 37. Penetration of the 28-36 trading range was favorable. No important near-term resistance until the 43-46 level is reached. Technically, the stock looks considerably higher. The 1946 high was 76 7/8. June 30, 1948 EDMOND W. TABELL SHIELDS & COMPANY The opinions expressed In thIS letter Brl! the personal interpretation of cherts by Mr. Edmund W. label! and are not Prolanteel as the opinions of Shields & Comptlny.