r- I Technical Market Action Well, the unexpected happened and Mr. Truman was elected. This confounded not only the pollsters, but also the market and stocks were dumped on the market at the opening at concessions of from two to six pOints below Monday's close. The day's low at 179.65 on the industrials and 57.50 on the rails were 10.09 and 4.47 below Monday's closing prices. There was no indication of a distributional top at the recent highs of 190 and therefore no indication of the extent of the decline. However, no basic technical patterns were destroyed and so far, there is no change in the longer term pattern. The most disappointing angle is from a timing viewpoint. Some time may be required before the confidence necessary to again initiate an advancing phase is regained. Would expect, over the balance of the year, a trading range of ten pOints or so. The outer limits of such a range are yet to be defined. After all, there is, as yet, no change in the fundamental pattern. We have had a Democratic administration for the last sixteen years during which period there was a Democratic Congress in fourteen years. During that period, we have had bull markets and bear markets and markes that did nothing. The eventual determiners of stock prices are earnings and public psychology. The last named item has received another severe shock from which it may require some time before recovery, but stock prices are still absurdly low in relation to earnings and dividends. As long as both averages hold above the September lows of 175.84 and 57.42 there is no change in the background pattern. A penetration of the September lows would indicate a new bear market and reaction to the 160-170 range. I believe such an event extremely unlikely in view of the general market pattern and the pattern of individual issues. Still believe the steels, motors and rails offer the best profit possibilities. The retail store stocks can also be added to this group. Would buy only on periods of weakness and, from a trading viewpoint, would lighten commitments as 186-190 level is approached. November 3, 1948 EDMUND W. TABELL SHIEUlS & COMPANY Closings Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock 182.46 58.52 67.50 P.S. The sensitive technical indicator gave an oversold buying signal at Wednesday's close. The opfnfolU oxprellecl In thf, letter .re ,h. personal Interpretations of chan. by Mr. Edmund W. rabel! end are not preJentecl I. the opInion. of Shield, a Compeny. …..—

Technical Market Action Rumors of excess profits taxes, price controls, repeal of the Labor Act and all other sorts of ominous possibilities to the business world brought renewed liquidation into the market on Friday. Both averages reached new lows for the move at 178.11 for the industrials and 55.94 for the rails. The rail average penetrated the September low of 57.42 and the industrials were very close to the comparable low of 175.84. Fear liquidation in anticipation of the unknown is always more potent than because of tangible factors. The election of Mr. Truman was an entirely unexpected development that was not in any way discounted in advance. It struck as a bombshell. The liquidation which has taken place is in anticipation of things that Mr. Truman might do or say. What he actually will do or say is not yet known. The actions of a President are quite often different from the statements made in the-heat of an election campaign. From a technical viewpoint, the patterns do not indicate a further tremendous break in the market. Below Friday's prices there are strong support levels. These levels have held for over two years. For example, the 175-160 level in the industrials and the 53-45 level in the rails are areas of strong accumulation. Even if the industrials confirm the September low penetration of the rails and indicate the major trend as down, the industrial average and the rails will be close to major support levels. The market is oversold. A fear psychosis can carry it temporarily lower. However, the major pattern is not altered from the opinion expressed in this letter since September, 1946. The 170-160 range in the industrial average is a long term buying range. Whether or not it will be entered again is very problematical. EDMUND W. TABELL SHIELDS & COMPANY November 5, 1948 Closings Dow-Jones Industrials 178.38 Dow-Jones Rails 56.22 Dow-Jones 65-Stock 65.77 I \ The opinions expressed In this letter are the personal interpretations of charts by Mr. Edmund W. Tabel! end are not presented as the opinions of Shields & Company.

Technical Market Action Another wave of selling hit the market on Tuesday and both averages reached new lows. The industrial average confirmed the previous downside penetration of the rails and reached a low of 173.54 as compared with the previous September low of 175.84. The close was 173.94. The rail average also reached a new low at 53.61. The close was 53.83. Under the classic Dow Theory, the maor trend is con- firmed as down and we are now in a bear ma.rket'. In my opinion the confirmation is just about as important as the bull market signal of June when the industrial average confirmed at 188 and reached a high of only 194. -I do not believe that a confirmaon signal given in the middle 'of a two year trading range will be an important signal. This is particularly true when below the market is the strong 170-160 support area in the industrials and 53-45 in the rails. . It is difficult to state just at what point the industrial average will reach its low. However, several groups are showing signs of entering a definite buying range. The rails and the oils are two such groups. The May-July top in the rail average indicated a possible decline to 55-52. There is strong support at the 53-50 level. Thil is borne out by the pattern of individual issues. For example, Atchison, Topeka & Santa Fe indi- cates that the 102-95 area is a buying range. Buying ranges-on other rails are Baltimore & OhiO, pfd. 16-18, Chicago-Northwest 16-15, Denver Rio Grande 25-23, Gulf Mobile & Ohio 13-12, Illinois Central 30-28, Kansas City Southern 37-35, Northern Pacific 17, Reading Corp 21-19, St.Louis-San Francisco 10, Seaboard Airline 20-19, Southern Pacific 50-48 Believe the market should be bought rather than sold on further weakness; November 9, 1948 , EDMUND W. TABELL SHIELDS & COMPANY The opinio, …presse8 In this leffer are the PfH'sonal Interpretation of cherts by No. W..-…! W. labell end ore no! '001 …… opinIoN 01 Shl.lels Company.

/ ' – – – – – – – – – – – —— – —————- Technical Market Action In the letter of November 1st, the day before the election, I said – In the unlikely event of a Truman victory, the market would undoubtedly sell off. However, there would be no change in the longer term pattern. The fundamental formation is too strong. Now, fifteen days later with the Dow-Jones Industrial average, at last week's low of 172.13, approximately 18 pOints below the November 1st closing of 189.76, I see no reason to change that observation. A perusal of the graphs of over one thousand individual stocks indicates that only a relatively few issues have declined- enough to destroy the potentially bullish long term patterns that have been built up. In most of the cases of new lows, the stocks were vola- tile issues of smaller companies. The vast majority of issues have either about reached their downside objectives or are at or near im- portant support levels. This is also true of the various averages re- gardless of the bear market signal given last week. As I stated in my last letter, the fact that the bear market signal occurred in the middle of the roughly 160-190 range in which the market has fluctuated for over two years lends considerable doubt as to the validity of such a signal. The patterns of the averages and of most individual stocks are not those of a bear market. The remarks of John G. Forest, financial editor of the New York Times, are interesting and appropriate at this time. They are from the November 14th issue in Mr. Forest's column The Financial Week RThe readjustment in the market to the unexpected outcome of the elections undoubtedly is based on fears that excess-profits taxes will be restored and the Taft-Hartley Act scrapped. That the outcome was as much a shock to the Democrats as it was to the Republicans is shown by the,amount of 'loose talk' now being bantered around. If the Republicans won, they had certain definite plans for business; the Democrats were successful, and are without any definite plans, so everyone is talking about what should be done. President,Trumanis election indicates a continuance of condi- tions which have existed for sixteen years. The stock market previously moved up and down on anticipated excellent earnings and business condi- tions. Now movements are based on political considerations. The same management that ran the country before November 2nd is still in busi- ness, while production, employment and earnings are at peak levels. Even though volume is at a high level, the break-even pOint for indus- try and business is much higher. Should business drop off, profits could disappear, and a recession is possible. However, this is the last thing that President Truman would want during his administration. Stock market sentiment seems to be a reversai of 1946. At that time prices were soaring with corporations showing small earn- ings and the public imagining what earnings were going to be. Now, the reverse is true — extremely good earnings and the public con- juring up everything horrible, including confiscation of capital and corporations being wiped out because of taxes. The 'bear market' psychology is beginning to come to the fore. Historically, major bear markets spring out of a situation discounting a rosy future, whereas this market has been discounting a depression .'just around the corner!. II — — – – – — November 15; 1948 EDMUND W. TABELL SHIELDS & COMPANY Closings Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock 176.01 54.34 64.51 The opinions expressed in this letter are the personal Interpretations of cherts by Mr. Edmund W. labell and are not presented as lhe opinions of Shields &. Company. —

Technical Market Action The obvious comment to make in a market letter today is to say that the averages will continue to fluctuate in a relatively narrow range until some definite indication is given from Washington on tax legislation, price controls, etc. I sometimes wonder if perhaps too much stress is laid upon the action of the averages. The Standard-Poor 90-Stock average today, at approximately 121, is just about where it was a year ago on November 18th, 1947. In terms of the averages a stock purchased a year ago should be worth approximately the same amount of money today as it was then. This would be small solace to the purchaser of Pepsi-Cola at the closing price of 26 3/8 on November 18th, 1947. Thursday's closing price was 9. His 10,000 investment would today be worth approximately 3,400. On the other hand, it would be rather hard to convince the man who, exactly a year ago, purchased Central Railroad of New Jersey at 8 that the market hasn't moved in a year. Thursday's closing was 32 and an investment of 10,000 a year ago would be worth 40,000 today. Obviously, these are extreme examples but there are many other situations that have shown the same diverse action on a small scale. Selection will continue to be of prime importance regardless of whether the market, in terms of averages, moves up or down or sidewise. The point of this whole discussion is that, while the – averages mayor may not have hit their exact lows, there are quite a number of individual issues that appear to have reached buying ranges. Individual rail issues are an outstanding example of this type of action. Last week, I issued buying ranges on a number of individual rail issues. The list is worth repeating below – Atchison,Topeke & S.F. Baltimore & Ohio, pfd Chicago Northwest 102 95 16 – 18 16 – 15 Denver Rio Grande Gulf,Mobile & Ohio Illinois Central 25 – 23 13 – 12 30 – 28 Kansas City Southern 37 – 35 Northern Pacific Reading Corp 17 21 – 19 St.Louis-San Francisco Seaboard Airline Southern Pacific 10 20 – 19 50 – 48 It will be noted tat most all of the issues mentioned above entered teir buying ranges. Baltimore & Ohio pfd., which reached a low of 17 5/8 last week, has rallied sharply on the dividend news and closed at 22 3/4 on Thursday. November 18, 1948 EDMUND W. TABELL SHIELDS & COMPANY Closings Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-stock lht opinions expressed in lhis letter are 1M personal Interprettions of charts by Mr, Edmund W. labell lind are not presented as lhe opinions of Shiekts & CompanY.

Technical Market Action The market was reactionary on Monday and sold off from the highs of last week.' The recovery from the November lOth low of 172.13 has been compatively moderate and, at last week's high of 177.96, had recovered under one-third of the eighteen point drop from the pre-election high. Barring some development from Washing- ton would expect the market to remain in a narrow range until the picture becomes clearer. Would concentrate on the action of individual issues rather than the averages. Tax selling and tax switching will undoubtedly cause diverse,movements in individual issues. Stocks that are selling near the lows of the year are obvious targets for tax selling. When,the tax selling pressure is relaxed–some…. of these issues'; — – could rebound quite sharply. However, just because an issue is selling near its low is not sufficient reason for purchase. Even if the low has actually been reached, more often than not, a long accumulation period in a narrow range is needed before any worthwhile price advance. The ideal situation, of course, is where the downside indication has been reached and the stock has already gone through a long protracted period of backing and filling in a narrow price range. Some of the issues in the airline group meet this requirement. This group has declined sharply from the 1945-1946 highs and seems pretty thoroughly sold out. The two issues in the group with the most favorable patterns are American Airlines and Eastern Airlines. The table below shows the price range of recent years. Last Sale 1945-1946 High 1948 Range American Airlines Eastern Airlines 6 5/8 14 5/8 18 7/8 33 1/2 10 – 6 1/8 20i – 13 7/8 Believe advantage should be taken of any price weakness, due to tax sel-Jing;-to'purchase these is'suesfor substantial.long term appreciation. November 22, 1948 EDMUND W. TABELL SHIELDS & COMPANY Closings Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock 176.33 54.48 64.67 Tho opinions expressed in this lener era the penonal Interpretallon, of chart. by a.Mr Edmund W. Tebell lind are not pruented tho oplnlonl of Shields &. Company., .— –

Technical Market Action The market has drif'ted lower- t'o again test the post election lows of 172.13 and 52.78. Whether or not these lows hold is problema- tical. In any event, both averages are very close to definite support levels at 171-167 and 53-50. Would continue to concentrate on the action of individual issues rather than the averages. Buying ranges on rails and airlines have been mentioned in previous letters. 'The oils are discussed below. While the oil stocks were fluctuating in a narrow range and building a'base pattern during late 1946 to early 1948, this letter continually stressed the strong technical position of numerous issues in the group. After the sharp advance in May-July 1948, profit taking was advised. The oils'have declined-'sharply'sThce-'t'lier9'48'high-swere reached and would appear to be again at or close to a buying spot. The table below shows the originally recommended purchase level, the upside objective outlined by the'base pattern formed from late 1946 to early 1948,and the 1948 high. . Recommended At Indicated 1948 High Barnsdall 21 Cities Service 28 Houston Oil 17 – 15 Pure Oil 24 Seaboard Oil 23 – 25 Standard Oil of N.J. 67 Texas Pacific Coal & Oil 15 on split basis 41 – 45 62 – 65 40 36 – 42 42 49 90 – 100 25 27 44 5/8 66 3/4 38 3/4 42 59 1/2 92 7/8 25 These issues built up distributional tops in the flurry of buying during May to July. In most instances, the downside indications outlined by these tops have been reached. The table below shows the downside indication, the low of the week of November 9th-15th, and Wednesday I,S' close. Houston Oil and Texas Pacific-Coal & Oilohave -been omitted as the technical pattern is not clear. Plymouth Oil, which reached a 1948 high of 70 3/4 and Shell Union Oil, which reached a 1948 high of' 46 3/4, have been substituted. Barnsdall Cities Service Plymouth Oil Pure Oil Seaboard Oil Shell Union Oil Stand.Oil of N.J. Downside Indication 37 – 33 44 38 38 – 36 30 – 28 37 – 35 37 33 72 – 70 November Low 35 1/4 39 5/8 36 1/2 28 7/8 36 3/4 35 1/4 72 Last -Sa-le 37 1/2 40 5/8 39 29 3/8 38 3/4 38 1/2 72 1/4 While some further backing and filling may be needed, these issues would appear to be in a buying range when near the indicated downside objectives. EDMUND W. TABELL '– … , —- SR;r;.ELDSCQM.PAJ\l4— u ., 1948 Closings Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock 173.17 53.08 63.46 The opinions expressed in Ihls letter are Ihe personal inlerpretations 01 charts by Mr. Edmund W. label! and are not presented as the opinions 01 Shields & Company.

r''''' INVESTMENT SECURITIES SAN FRANCISCO NEW YORK LONG BEACH EUREKA FRESNO MODESTO OAKLAND STOCKTON BAKEkSFIElD RIVERSIDE LOS ANGELES. SACRAMENTO SANTA AHA VALLEJO SAN JOSE TABELL'S MARKET LETTER 35 WALL STREET, NEW YORK 5, N. Y. DI9by 44141 In my first letter for Walston, Hoffman & Goodwin, I would like to express my extreme pleasure at being associated with the many friends that.I have made on previous trips to California. It gives oe the feeling of meeting old friends again rather than making new acquaintances, At this time it is perhaps appropriate to present my views on the general market and review my past opinions. As early as April 1946, I became concerned about the possible distributional pattern built up by the market and 'suggested the probability, when the industrial averages were selling above 200, that a sufficient distributional pattern had been built up to indicate a decline to the 170-160 range. This range proved to be low in October, 1946 May 1947 and again in February 1948. Since October, 1946, I have continually stressed the 170-160 range as a major buying area. What is the present outlook for the market This question can perhaps be best answered by analyzing the three trends always present in any market, namely, the long term trend of the next year or two, the intermediate trend of the next few months and the minor trend of the next few days. I believe the major or long term trend is up. The relatively narrow trading range of the past two and a half years, in which the averages have ranged between 160 and 195, is a major accumulation area with stocks passing from weaker into stronger hands. It, will, in my opinion, eventually result in a definite upside penetration of the range and an eventual advance to the 240-250 level in the industrial average and 80-85 in the rail average. The intermediate trend is down with a possible downside objective of 171-167 in the industrial averages and 53-50 in the rail average. There are some indications of a sold out condition in the market and individual issues may have already reached their lows although the averages may work somewhat lower. The minor trend is, of course, subje'ct to rapid change. After several days of weakness last week, it would appear that at least a technical rally is in order. At this stage of the market, the action of individual issues is more important than the averages. I will endeavor to cover both the fundamental and technical pattern of individual issues in subsequent letters. EDMUND W. TABELL December 1, 1948 WALSTON, HOFFMAN & GOODWIN This memorandum t. not to be constrLted as an offer or sollcTt.flon of offen to buy or MIll any .eturTtiH. From tllTlfl to tlIM Walston\ Hoffman & Goodln mey ha. an Int.rest In some or all of the securities mefttioned herein. The foretoln9 materiel has been prepared by us a. a mathr of 'n,ormatlon only. It IS bued upon Information believed reliable but not necessarily compl.te, is ftOf Quoranteed as eCCI,Irate or final, and II not Inhtnded to fOfedoUl independent inquIry. ..'-…, -.,

lston.Hoffmon &, Goodwin INVESTMENT SECURITIES SAN fRANCISCO NEW lORK LONG BEACH EUREKA FRESNO MODESTO OAKLAND STOCKTON BAKERSFIELD RIVERSIDE LOS ANSElES SACRAMENTO SANTA ANA VAllEJO SAN JOSE TABELL'S MARKET LETTER lS WALL STREET. NEW YORK S. N. Y. Digby 44141 At the beginning of last week both the industrial average and the rail average had not only reached the upper part of their major support levels at 171-167 for the industrials and 53-50 for the rails, but also a great many individual stocks had reached their downside objectives and support points. In addition, both the short term and intermediate term indicators showed an oversold condition. While the short term trend has moved away from its oversold position due to this week's rally, the intermediate trend still appears oversold. It would appear that, subject to irregularity due to tax selling and switching, the market should work higher over the balance of the month with a possible objective of 180 in the industrial average and 56 to 58 in the rails. While a great deal of tax selling, which usually takes place at the year end, may have already occurred due to the unexpected turn in the electiOns, there will undoubtedly be further tax selling and a good portion of it will be concentrated in issues that are near their lows of the year. After the pressure of tax selling is lifted, there is usually a rather sharp rebound in the issues under pressure. Listed below are some issues which are selling very close to the lows of the year and at a 50 or more discount from their highs of 1946. I have mentioned only the issues that appear attractive technically, either because they have reached their long term downside objectives or because they have formed fairly sizeable base patterns. These issues would appear to be a purchase, on any further tax selling, for a good year end rally. – American Airlines Chicago,Mil.,St.Paul,pfd. Consolo R.R. of Cuba,pfd. Eastern Airlines General Railway Signal Gimbel Brothers Gulf,Mobile & Ohio New York Air Brake Northwest Airlines Pan American Airlines Paramount Pictures Schenley Distillers Twentieth Century-Fox Warner Bros. Warren Foundry Last Sale 7 3/8 32 3/4 22 15 1/2 19 1/8 18 14 3/8 33 1/4 9 1/2 8 1/2 21 1/8 29 1/4 18 1/2 9 3/4 24 1946 High 19 7/8 82 3/4 47 33 3/8 48 55 1/8 30 1/4 69 1/2 56 1/2 29 42 1/2 100 63 7/8 28 50 Mention might also be made of Pepsi-Cola in the 7-8 range, down from a 1946 high of 40 1/2. In this case, no base has as yet been formed. December 3, 1948 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN Closings Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock 175.00 53.38 63.91 ThI, memorandum i.'prel1'''jdhave en Int.red In upon informlltion I, not to lome or believed .b1r1eeliocafobnltehmeubesuedtcuanrsiottiaensneomtfefeesnrtlrool!rt,eyd5OchloIecmrlteapi.nttle.otneT,hoefIsfoonfrfeoegtnO.9itnuogIHbamunya.t.0e'd.,aIlaelIhI aajcsUtu'treaseneco,rItI as. From na. a fImeastoa timmaetteWr aolsftolnnoHrmoaftfmloann o&nlyG. oIotdwIsinbamseady not Intended to forecloe independent Inquiry. … – -,

INVESTMENT SECURITIES SAN FRANCISCO. NEW YORK LONG BEACH. EUREKA FRESNO .. MODESTO .. OAKLAND .. STOCKTON TABELL'S MARKET LETTER IIAKERSFIElD .. RIVERSIDE LOS ANGELES .. SACRAMENTO SANTA ANA .. VALLEJO .. SAN JOSE .r 35 WALL STREET. NEW YORK 5. N. Y. Digby 44141 The industrial average closed lower on Wednesday after a rise of six consecutive trading days in which the average moved from a low of 170.35 on November 30th to a high of 177.25 on December 7th. During the same period of time, the rail average advanced from 51.69 to 54.33. These highs of 177.25 and 54.23 compare with the November 22nd highs of 177.80 and 54.99. It thus becomes apparent that the 178 level is an area of upside resistance. The recent advance has been rather rapid and the short term technical indicator has become overbought and has given a sell signal. This downward potential may be offset by the fact that the long term indicator still appears oversold, thus possibly balancing out the temporarily bearish indications of the minor trend. Any reaction from present levels should be rather mild and might rather take the form of a consolidating period. As I have mentioned many times before, I believe the action of individual issues at this stage is of much greater importance than that of the averages. For example, individual rail issues showed signs of strength near the close on Wednesday. The stocks in the building group have dropped sharply in the last month and would appear to be at or close to important buy levels. Individual issues in this group have excellent technical patterns and should, over a period of time, sell at considerably higher levels. I am listing below several issues in the building and cement group that in my opinion have the best profit possibilities in the field. 1946 High 1948 Low Last Sale Alpha Portland Cement American Radiator Celotex Certainteed Devoe & Raynolds A Eagle Picher Lead Lehigh Portland Cement Masonite Pennsylvania DiXie Cement 39 7/8 23 38 1/8 25 7/8 39 1/2 30 1/8 55 3/4 75 30 3/4 25 12 1/2 22 3/4 12 1/8 20 3/4 18 1/4 30 3/8 47 1/2 15 1/4 26 1/2 14 26 1/2 12 7/8 20 3/4 19 38 1/2 55 3/4 18 These stocks are of varying quality but they all have attractive technical patterns. Purchase is advised near the lows of the year. December 8, 1948 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN Thl. memorudum is not to b. construed as an offer or .olicltatlon of off to buy or Jell any lecurltlet. From tim. to time Walston. Hoffman & Goodwin may have an ihlrest In 10m. or all of the securities mentioned herein. The 0901; material hoi. been preparlld by u matter of information only. It is billed upon information beti.ed r.Uable but not neee.wrily complete, j. lIot 9uar.nt.ed ., ucur.ste or illdlnd iJ not intended to forec/oJ. indepertdent ittquiry.