TABELL'S MARKET LETTER 35 WALL STREET, NEW YORK 5, N. Y. Digby 4-4141 The following is Jules I. Bogen's Journal of Commerce Newsletter in the issue of October 11th. Because it coincides with my opinion, I am reprinting it below Advancing stock prices in the face of dec.lining corporate earn- ings indicate a basic change may be taking place in the public attitude toward stock investment. Interest in the stock market on the part of both investors and speculators has been at low ebb during the past three years. The jump in corporate earnings to record totals in 1947 and 1948 was practically ignored by investors, stock prices remaining well below the high level reached in the spring of 1946. The price-earnings ratio for all listed stocks dropped last year to about 81, the lowest on record and comparing with about 161 in 1939. Industrial stocks early this year sold on an average yield basis of over 7 But the stock market has been moving up in recent weeks to a 3 years' h5,gh point in the face of serious strikes and expectations in many quarters of a further business recession next year. Does this advance not point to changing investor psychology High taxes have been blamed as the chief reason for investors' in- difference to increased earnings and dividends. This view applies parti- cularly to the investor in the middle and upper income brackets. However, high taxes do not discourage investment by persons in the lower income brackets and there are evidences that the purchase of equities by the lower in,come groups is, on the increase. There is a pers istent ex- cess of odd-lot purchases over sales of stocks reported by the Securities and Exchange Commission. And open-end investment trusts, which appeal es- pecially to the lower and middle income investors, have enjoyed a great increase in sales during the past few years. The public is undoubtedly becoming more yield conscious. This is shown by the fact that savings and loan associations, which pay their Shareholders a higher rate of return, have made greater percentage gains in assets than savings banks in the past few years. Mutual savings banks; most of which pay 2 to depositors in this State, in turn have gained deposits at a considerably faster rate than have commercial banks, gener- ally paying 1. ' With yields of 6-7 available from the general run of common stocks, there has been growing interest in equity investment among smaller investors. Public utility stocks in particular, because of the relative stability of the return they afford, have enjoyed an extraordinarily favor- able market despite heavy new equity financing and occasional distributions by holding companies in process of dissolution. Even among high bracket investors, the purchase of stocks is attractive where capital gains can be secured. A broader market for stocks among low-income buyers, with consequent advances in quotations, tends to encourage the purchase of shares by wealthier investors in quest of capital gains. Lack of faith in the future stability of dividend yields has de- terred many investors from purchasing common stocks in recent years, des- pite the relatively high yields available. But memories of the severe depression of the '30s are becoming dimmer. There are more and more present-day investors who were too young in the '30s to have actually experienced losses. Moreover, the belief is gaining in many quarters that Government intervention, through deficit spending and otherWise, makes another such major depression unlikely for the future. It is also widely recognized that corporations have built up large liquid resources that will help them to stabilize dividends in future periods of reduced earnings. A change in popular psychology makes established yardsticks in- applicable in judging stock values. Such a change caused the stock market to decline in 1946 and 1947, when earnings were on the increase but in- vestors found stocks unattractive. The current marke advance in the face of declining corporate earnings may mean that another change in popular psychology, involving a more optimistic appraisal of stock values, is under way. , EDMUND W. TABELL October 14, 1949 WALSTON, HOFFMAN & GOODWIN This memorndum Is not to be condrued al an offer or solicitation of offe, to buy or lell any securities. From time to time WIIIsfon, Hoffman & GoodwIn may have an ntered In lome or all of the Sl'IctJrlties mentioned horeln. The foregoln9 m.!lterial hu been prepared by us .!II II militer of !nformetron only. It Is blued upon tnformlltlon bt'llieved reliable but not necenllrlly complete, is not c;lUllfllnteed liS accurate or finlll, lind I nof Intended to foreclose Independent Inquiry. – ..—.

TABELL'S MARKET LETTER 35 WALL STREET, NEW YORK 5, N. Y. Digby 4-4141 The increasing investor confidence of which we have written about in several recent letters continues to be an important factor in market action. Te techn5r,al behavior and supply and demand factors continue to favor the better grade, dividend paying issues. rany issues of this type have built up strong base patterns over the past three years and have broken out or appear to be on the verge of breaking out of these accumulation areas. This formation iil also pre'3ent in numerous special situations. The run-of-the-mill speculative issues appear in need of a longer period of accumulation and consolidation before any worthwhile move is indicated. I would be cautious about following strength on this type of issue and would confine purchases to reactionary periods. It appears that we have reached a phase of the market Ihere individual issues must be followed closely. 'file averages will most likely remain in a relatively narrow trading range but there will be excellent opportunity for profit in individual situations. We have graphs on almost every listed,issue on the New York Stock Exchange and New York Curb and welcome inouiries s to the technical status of in- dividual issues. . A recommended list of issues is given below Better Grade 1SSUt'il Allis Chalmers American Cyanamid Amer.Home Products American News Borg Warner C. I. T. Financ ial Commercial Credit Crown Zellerbach Endicott Johnson Federated Dept.Stores General Amer. Trans. Hewitt Robins 1ntertype Kresge S.S. McKesson & Robbins Otis Elevator Phelps Dodge Shell Union 011 —S.tad tee-lilig Last Price' 31 3/8 46 27 7/8 33 3/8 52 5/8 55 3/8 54 1/4 28 5/8 333/8 28 1/2 44 17 1/2 30 40 5/8 40 35 43 7/8 39 3/8 li3-lj8- Speculative Issues Last Price American Airlines American Power & Lt Avco Budd Company Carrier Corp Chic.Rock 1s.& Pac Combustion Eng. r,ontinental Baking Denver 8; Rio Grande j)istillers Seagram Eastern Air Lines Illinois Central ;.fi-t-erI'h-&;hem- Lowenstein !It-ag-a-i'a-Huds o n – P r – Penn-Dixie Cement Pressed Steel Car Radio Corp Reynolds Metals St.Regis Paper Schenley Shamrock Oil & Gas Studebaker Sunshine Mining United Mer.& Mfgrs 9 7/8 12 5/8 5 7/8 11 1/8 15 34 25 15 3/8 27 5/8 17 1/8 15 3/4 29 1/2 3/.lj.. 23 1/4 14…..;i)8 23 7 12 7/8 20 1/8 7 3/4 29 28 1/2 24 1/2 11 12 1/8 October 21, 1949 EDMUND W. TABELL 1IALSTON, HOFFMAN & GOODWIN / This memorandum Is not to be construed .!II an offer or solicitation of offers to buy or sell any securities. From tIme to ttme Welston, Ho!,n;an & Goodwin may have u Interest In some or .!III of the securities mentioned herein. The fo(ogolng mllterial has beon prepllred by us al a matter of Information only. It II based upon Information believed reliable but not necenarlly complete, j, not guaranteed as accurate or final, lind II not Intended to foreclo,e Independent Inquiry.

TABELL'S MARKET LETTER 35 WALL STREET, NEW YORK 5. N. Y Digby 4,4141 It is rather trite to say that a correctionary decline in the market is overdue. The market has advanced approximately thirtythree pOints Since the June lows without any reaction of consequence. There have been periods of consolidation, where the market rested and then resumed its advance. Last week a questionable overbought signal was registered on the short term gauge when the market reached 191.44. This was the first overbought signal registered on this gauge Since the advance started in June. This week the market moved into new high territory at 193.63. The signal did not prove valid but may be an indication of caution for the short term. The longer term pattern remains favorable. It seems wise to pursue a cautious attitude toward new buying in speculative issues. The higher grade investment issues still show favorable patterns.Subject to moderate correctionary de- . clines, they indicate higher prices. i ! . There are many individuals whose only concept of invest- ment in the market is through the purchase of speculative-type securi- ties for capital appreciation. What the individual often fails to realize is that this type of investment usually pays no dividends or, at the best, very small dividends. If, as in some cases, high dividends are paid on a low-priced stock, it is usually on a very irregular basis due to an erratiC earnings record. We should like to point out, therefore, the high yields currently available in many of the sounder common stocks. Over 200 stocks listed on the New York Stock Exchange have been paying continuous divi- dends for the past 25 years and, in many cases, for as much as 50 to 100 years. The decline in the market plus the good earnings of many of these leading issues have placed the yields at exceptionally high levels. Many of the issues providing 6 and 7 return on one1s investment, normally' provide yields in the 5 to 5 1/2 range. As these issues again return to their more normal yields, they will provide appreciation and still maintain the good yields'on'one1s'original investment. As an example, May Department'Stores,paying continuous'dividends Since 1911, is current- lyon a 3'annual rate and'selling at approximately '45, which gives a yield of 6.7.' If this st6ck'were'to'sellat 'even a 5 1/2 yield, which would not be out of line for a stock of this quality, it would then have a market value of 54 1/2, an appreciation of 9 1/2 points or over 21. While this is only one of many ways of projecting possible market values, it does point out that current price levels of many high grade equities seem very modest considered from the long term standpoint. A roster of 196 common stocks on the New York Stock Exchange that have paid cash dividends for 25 to 101 years, and are yielding from 3 to 12, was recently published in a special edition of he Exchange, a monthly publication of the New York Stock Exchange. Consult your registered representative for this list. November 4, 1949 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN i i This memorandum is not to be construed .n an offer ot solicitation of offers to buy or, sell any seeurlhes. From time to time Wain, Hoffmlln & Goodwln may have an interest in some or all of the securities mentioned herein. The foregoing material has been pepared by. us as./J matter of Inlormlltion only It Is. blled upon Information believed reliable but not necessarily complete, II not gUllranteJd as accurate or final, and IS not Intended to foredose Independent InqulI'Y.

TABELL'S MARKET LETTER 35 WALL STREET. NEW YORK 5. N. Y. Digby 4-4141 At some point along the line it would be normal to expect a more drastic correction of the thirty-three point advance from the June lows. So far the corrections have taken the form of consolidations fJllowed by a resumption of the advance. At the moment, there are no signs of either an overbought long or intermediate trend. The short term pattern is uncertain. I would be cautious as far as nw buying is concerned, particularly in speculative issues. ,. However, t lere seems no need to disturb long term holdings, except in cases where issues have advanced to a point where they have reached their approximate intermediate term objectives. Profit taking is suggested in four issues in our recommended list Borg \lTarner Inter.Min. & Chern. Niagara Hudson Pro Standard Steel Sp. Last Sale 51 3/1 32 3/4 15 1/8 18 3/8 Originally Recommended At 48 25 1/8 9 14 1/2 .. The balance of the list follows Better Grade Issues Last Price -Allis Chalmers American Cyanamid Amer.Home Products American News C1. '1'. Finane ial Commercial Credit Crown Zellerbach Endicott Johnson Federated Dept.Stores General Amer.Trans. Hewitt Robins Intertype Kresge S.S. McKesson & Robbins OtiS Elevator Phelps Dodge Shell 011 31 45 1/8 29 5/8 33 1/2 55 3/4 55 3/4 28 1/4 34 30 44 3/4 16 1/2 32 1/4 41 1/4 '39 1/2 36 1/2 46 3/4 39 3/8 Speculative Issues Last Price American Airlines American Pr & Lt Avco Corp Budd Company Carrier Corp Chic .Rock Is & P Combustion Eng Continental Baking Denver & Rio Grande Distillers Seagram Eastern Air Lines Illinois Central Lowenstein Penn-Dixie-Cement Pressed Steel Car RadioCorp Reynolds letals St. Regis Paper Schenley Shamrock Oil & Gas Studebaker Sunshine Mining United Mer. & Mfgrs 9 1/2 13 1/8 5 3/4 11 15 3/4 35 3/8 25 1/2 16 1/8 27 1/4 16 1/2 15 29 5/8 24 1/8 22 7/8 7 12 5/8 20 7 1/2 28 28 1/4 26 10 5/8 12 1/4 .. November 10, 1949 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN This memorllndum is not to b conltrued as an offer or solicitation of offers ,to buy or, sell any securities. From time to time Waist, Hofman & Good;o'iin may I'.have .'In into rest in some or all of the securities mentioned herein The foregOing matenal has been prepared by. us lIS a matter of information only It ba!ed upon information believed reliable but not necessarily complete, Is not guaranteed as accurate or final, and IS not Intended to foredose Independent mqulry.

SAN FRANCISCO, CALIF. NEW YORK, N. Y. BAKER.SFIELD BEVERLY HILLS EAST ORANGE, N. J. LONG BEACH . MODESTO OAKLAND SAN DIEGO SAN JOSE TABELL'S MARKET LETTER PHILADELPHIA, PA. LOS ANGELES, CALIF. EUREKA. FRESNO HAGERSTOWN, MD. HARRISBURG, PA PASADENA RIVERSI DE SACRAMENTO SANTA ANA STOCKTON VALLEJO 35 WAll STREET. NEW YORK 5. N. Y. Digby 4-'1141 After reacting to 186.98 on Tuesday, a new low since the recovery high of 193.63 reached on November .2nd, the industrial average turned around sharply and by Friday had rtraced almost the entire ten-day decline of six and a half pOints in three days. The intra-day high on ,. Friday was 193.97, a new high since the June low. The quick recovery ha weakened the technical pattern. The short term indicator gauge was quite close to reaching an overbought condition at Friday's close. Further strength or even continued holding above 192 would give a short term sell signal within the next few days. The advance may carry a bit further- but would be extremely cautious of following strength at this point. Would be inclined to capture trading profits and await a more favorable opportunitv for repurchase. This advice,of course, applies only to trading accounts willing to try to take advantage of the 5 up and down minor trends of the market. The long term trend cf the -r.arket is definitely higher in my opinion and I expect a penetration of the 1946 high of 213.36 some time in 1950. In the meantime, the market Jould work somewhat lower during the next month. I would not expect the possible decline to be severe. I doubt,even, if it more than approaches the strong 184-180 support level. In fact, the expected action might be more aptly described as an irregular market. This period of the year of late November and early December usually results in markets of that type wjth various cross-currents of tax selling, profit-taking, and switching. 110uld take advantage of such possible irregularity or weakness to add to holdings in recommended issues, but would be cautious of following trength. ,. A word should be said Qbout the rails. The industrials closed at 193.41 and the raUs at 48.75. The last time the industrial average ., was at this point, j II mid-1948, the rail average IaS approximately tWelve or thirteen points hIgher at 62-63. The rail aVErage has not even been able to reach the early 1949 hIgh of 54. '3. This, of course, has been exceedingly bad technical action. However, te rail pattern is slowly irrroving. A long head and shoulders bottom appears to be forming with a left shoulder in t 11e ;'7-52 rcnge and a head at the June low of 41. The right shoulder apears to be formine now. Such a formation should result in substantially higher levels when the pattern is completed. Some individual rajl issues, such as chicago,Rock Island and Illinois Central, seem to be 1.1 a more advanced phase of the pattern than oth,ers. Vlould not be surprised 'co see he ra ,ls take bver the leadership at some time in the not too distant futUre. In fact, selected rails could move '.head while industrials undergo an irregular consolidation . l November 18, 1949 EDMUND W. TABELL WALSTON, HCFFMAN &; GOODWIN .. 'Xafri!iThis memorandum Is not haye lin interest in lome to or be construed as ,lin all,of the socurities f omfefenrh,oo,rnesdolhiCeritea,ti,o' nT0e 0ffofeeng,otrbnteed liS IIahccsunYrbateeGuor'TrfeiPnslallreFd/rlnobmdy time to time Walston, Hoffman & Goodwin may us as a matter of information only. It is based is not Intended to foreclose independent Inquiry upon Information believed rehllble but not nocnarJ V cemp e e, I no gu ' . . / .\ ., !

TABEll'S MARKET LETTER 35 WALL STREET. NEW YORK 5. N. Y. Digby 4-4141 Despite the fact that the market reached a new high of 194.35 on Wednesday, the market shows increasing signs of technical deterioration. I mentioned in last week's letter that the short term indicator i, , gauge had registered an overbought condition and was very close to in dicating a short term sell signal. This signal was given on I'1onday. It must be stressed that this action applies to the shorter term gauge. The intermediate and longer term gauges continue favorable. Rather than a sharp correction at this time, would expect the usual early December irregularity caused by the various' cross-currents of tax-selling and switching. Would expect the lows to be reached near the middle of the month. Would take advantage of such possible irregu- larity or weakness to add to holdings in recommended issues. The airlines are one group that will probably be targets for some year-end tax loss selling as these issues have had severe declines from the 1945-1946 highs. I definitely like the airline issues. Their action may continue to be slow for a while but they are building up very strong technical patterns. From an earnings viewpoint, they appear to have turned the corner as witness the earnings for nine months ending September 30, 1949, as compared with the same period last year … , ' , ,, , Alaska Airlines AlTIer.Airlines, 3-t pf AlTIer. Airlines Braniff Airways Capital Airlines Eastern Airlines No.West Air, pfd No.West Airlines Pan Amer. Air United Air 4t pf United Airlines Western Airlines Last Sale 4 3/4 65 1/4 9 1/8 8 1/4 8 1/4 14 1/4 17 5/8 9 7/8 8 1/4 81 13 1/2 7. High 1945 – 1946 16 1/2 98 19 7/8 37 1/2 49 3/4 33 1/2 27 1/4 63 1/2 29 120 7/8 62 1/2 40 1/2 Earn.per sh.9 Months ended Se)2t.30 1949 1948 .39 14.84 .76 .02-d 2,77 .57 5.09 2.01 N.A. 28.60 1.16 .66 .42-d 8.54-d .69-d .01 .19 .32 5.44-d 2.99-d N.A. 2.52-d .27-d .75-d -1948 High d-deficit – 8 months ended June 30. – 6 months ended June 30. – includes non-recurring profit from purchase of debentu.re!-s-..—;7' ., ; . One service has calculated that earnings of all airlines in,the . September quarter increased 324 over the same period in 1948. This isi the largest percentage increase of any group. For the last year, or longer, individual issues in this group have /' been holding in a relatively narrow range. The chart patterns indicate persistent accumulation. I recommend the airline issues. for long-term , capital gains. The potential base patterns indicate the possibility of at least 100 appreciation in most issues over a period of time. They ,J should be bought on all price dips. . I believe they present greater long term price appreciation possi- bilities than such issues as Curtiss-Wright, flew York Central,Pepsi-Cola, j….. Lackawanna, St.Paul common, Kaiser-Frazer,Bldwin, Packard, Glenn Martin, and other depressed issues. A switch from Assues of thls type into alr- lines is recommended for tax-loss purposes. November 25, 1949 EDMUND W. TABELL WALSTON, HOFFMru & GOODWDI This memorandum Is not have an Interest In 50me to or be all construed III an of the securities offer or lolicitation of mentioned herein, The o'oHreer9l0tion9bumy atoernalelUhaasnybeseencurpirtieepsareFdrobmy.tuiJmell5 to time Walstn, Hof!man & Good;w,n may maHer of Information only. It IS based upon information believed reliable but not necessarily complete, Is not c;luarilnteed as accurilte or flnill, and u not Intended to foredole Independent Inquiry . . '. . . . . .., ….–.' .. . .'…. .. c…… – 1

Tabell Market Letter 3S WALL STREET, NEW YORK 5, N Y. the fact 'l!l.114ffi.e rail average was considerably behind the industrials. The letter concluded with the following Would not be surprised to see the rails take over the leadership at some time in the not too distant future. In fact, selected rails could move ahead while industrials undergo an irregular consOlidation. The rails started their move from the noon hour price of 47.98 on Thursday and closed at 50.29 on Friday. The intra-day high was 50.42 which was just about equal to the October high of 50.40. A long head and shoulders bottom appears to be forming with a left shoulder in the 47-52 range and a head at the June low of 41. The right shoulder appears to be forming now. Such a formation should result in substantially higher levels when the pattern is completed. The present advance should continue to about the 52 level. After a consolidation for a time, the really im- portant move could start. Before this happens I believe some of the poorer acting rails must broaden their potential base patterns. The industrial average reached an intra-day high of 194.16 which is just a shade below the November 23rd high of 194.35. The strength of the past few days may carry somewhat further but I would be cautious regarding new purchases at this level. I believe a better buying opportunity may be available later in the month. Long term positions should be retained. While the rails could work somewhat higher, I believe shorter term traders are justified in taking profits on further strength. Also suggest , profit-taking on several other issues in our recommended list. '. '. American Power & Light Chicago, Rock Island Denver & Rio Grande Illinois Central Phelps Dodge Shell Oil Last Sale 14 40 29 7/8 34 48 40 3/8 Approximate Originally Recommended Level 9 3/4 33 1/2 24 – 27 26 42-38 37-34 There are certain other issues in our recommended list that have shown poor action. We would take the small losses on these issues and switch into either the airline issues or wait for a correctionary move when I will list some new recommended issues. Would switch out of the following – Last ,S-al-e Approximate Originally Recommended Level Avco Corp Pressed Steel Car Reyno1.ds Metals St. Regis Paper United Mer.& Mfgrs. 5 3/8 7 3/8 19 3/4 7 1/2 12 7 6 1/2 21 7 3/4 12 1/2 The balance of the list follows – Better Grade Issues Speculative Issues Last Price Last Price Allis Chalmers American Cyanamid Amer. Home Products American News 31 1/2 47 5/8 30 34 7/8 American Airlines Budd Company Carrier Corp. Combustion Eng. Continental Baking 9 3;8 11 5,/8 16 1/8 26 1/4 17 C.I.T.Financial Comm.Credit 58 5/8 56 1/4 i4Distillers Seagram Eastern Air Lines 3/8 Crown Zellerbach 29 5/8 Lowenstein 23 7/8 Endicott Johnson 34 I/,2 Penn-Dixie Cement 22 1/2 ,. .. Federated Dept.Stores Genl.Amer.Trans. 33 1;8 47 Radio Corp Schenley 12 3/4 31 1/4 Hewitt Robins' KInretesgrteype McKesson & Robbins 15 1/2 03 311;24 lj. /. 40 1/2 .Shamrock Oil & Gas Studebaker Sunshine Mining 27 1/4 24 1/2 10 1/8 Otis EJel'ator 38 hTuahpviosenmaIennmfoiofnrmt1al\dtfiJofJnpittbHbhe..\oli&.ecJvdOe.fdt,.QeJr1ell.leiaoabfgl.tenlJsebtuJrteubnqioitllneYocmfeQisnseatrriiolyonrecdsoomhliecprilteeaitntei.,onTishoenfofotofrfgeeugrasorintaogntbemeudyateoarrsiala01c1hcausar eIRntMtfJMtr.UfrIinrlaNlfQD-'.e'FiH.wtb,..ll.jtt'.\i1\;l ..AlAfnS'fEMiL'IWr! a1l'f1Jr5'j,lofintici'\Ht6OolhfIIfSml'aUnJn'(,h&lip!eNGndoeIontdtwisIinnbqaumlireaydy. ., '—

TABELL'S MARKET LETTER 35 WALL STREET, NEW YORK 5, N. Y. Digby 4-4141 The market contilmes its churning action In the 190-195 range. While indiVidual issues 'lave moved ahead, the ind\strial average has made little progress for over a nonth. The November 2pd high was 193.63 and the December 5th high was 195.54. That the market Should meet resistance in the 190-195 area is not unexpected. It must be remembered that there was terrific turnover of stock at this level at the May-July 1;,,48 riglls. vihether the market will overcome this heavy resistance and break into new high territory in the 1mmediate future is not certain. Technical work indicates that eventually the overhead reSistance will be penetrated but that may require more time and a moderate te!hnical c(',rr3ction first. If the upslde penetration should occur shortly, it must be remembered that here is also very hetwy supply from 200 to 210, at which level the market topped out in 1946. ' While this reSistance I more than three Jears old, it will still have some effect. While the rise in the geneal avel'a.ges rna be somewhat labored fr'om here on, tht.l.t dCrGS not &pp ly to indi',ldual issues. The technical patterns indicate extreme selectlv;,.'y. If stock A advances three points while stocks, B,C,D and E f',dvance only half a point, the ' average advance would be only one point. Regardless of this small aver- j, age advance, the price enhancement in stck A we.s very satisfactory. expect this type of acti.;n t continue for some til'!e to come. I i I am listing below two columns of better grade stocks. The first , \ column includes issues with above avera'!,;G teChlltcal patterns. '.i'his group ! should move higher over the next !lear. The 8eco.d column inc ludes issues with below average patterns. While these issues have most Jikely reached t''leir lows, any advance ''lVer the in cer,neiiate terro should be limited. Suggest tax switching frsm these issues into the first column Above Average Approx.Price Allied Stores Alpha Port Cement Amer.Ho'1le Prod. 35 35 31 American Stores 30 ,.l j Armstrong Cork Atlantic Refining 48 40 Beechnut Packing 32 Best Foods 32 California Packing 36 Caterpillar Tractor 34 Champion Paper 29 Cincinnati Gas 31 C. I. T. Financ ial Columbian Carbon Combustion Eng.Super. 59 31 26 Commercial Credit Consol.Natural Gas 59 40 Continental Baking 17 Continental Oil 61 Cutler Hammer 23 Deere Diana Stores 39 8 Doehler Jarvis 36 El Paso Natural Gas 27 Elliott Company 27 Endicott Johnson 34 ExcellO 54 Federated Dept.Stores First National Stores g Food Fair 13 General Amer. Trans. General Foods General Port.Cement 45 43'47 General Shoe 32 Hael Atlas Glass 2; Uncertain Approx .Price Acme Steel 20 Allegheny Ludlum 2 fUller .Crystal 'lug',r 19 Affier.Steel Fdries 24 I\nac 'D1l 28 Armco, Steel 28 Baldwin 10 Barker oros. 18 Bige lo; Sanford 25 Briggs Mfg 30 Brunswick-Balke 18 Can;lpbell Wyant 18 Carpenter Steel 31 Central Aguirre 15 Cerro de Pasco 18 Chesapeake & Ohio 28 Clark Equipment 25 Clev.Graphlte Bronze 27 Cluett ('c'abody 24 Ccnmercial Solvents 19 Ccntalner Corp 40 Crar,,, Co , 28 Dav j SOl' Chemical 22 DJ.a1!lOnd Matich General Refrac. 35 24 Glen Alden 17 Grl''lt,. W. T. 27 GI'oat ,orth .Paper Great ltTest . Sugar 39 18 Harbison \Talker 20 Heinz, H.J. 35 Helme (George) 30 Hercules II10tors 15 He'den Chemical 16 Interchenical Corp 18 DeCember 9, 1949 ELII1UED W.'TABELL WAT.STON,rrOFFMAN & GQQDWTN This memorandum Is not hllve 'In 1nterest In lome to or be all construed liS ,!II'J of the securities offer or solicitation of mentioned herein. The offen to buv or sell any secuTlties From foregoing materitil has been prepared by tuims easto time WalsttI, Hof!man & matter of .nformatlon only GooItd,wIinbam!eady upon Information believed reliable but not necessarily complete, Is not r;juarllnteed as lIccurate or final, and I' not Intended to foreclole Independent mqulry. ,U , …………. .. -.- At

TABELL'S MARKET LETTER 35 WALL STREET, NEW YORK 5, N. Y Digby 44141 The industrial average has now penetrated the 190-195 resistance area in which it has held for more than a month. This week's high was 199.13 and the high on the r'ails was 52.05. The high on the industrial average is a new high Since 1946. The. rail average, however, is still below the high of 54.93 reached in January of this year. What is the outlook from here on The answer to this question I ,; believe can be found in the action of individual issues rather than in the averages. The industrial average, for example, is wedged in between the overhead resistance of che 1946 distributional top at 200-210 and a ,… support area below the market in the broad 195-185 area. On the other hand, individual issues shol, varying patterns. While some issues seem to have temporarily reached their upside objectives, others have just started their upswing. Still other2 appear to need more time in backing and filling to form a base area. As we have mentioned since the start of this rise in June, the higher grade stocks and special situations seem to offer the best appreciation possibilities. The secondary speculative issues in most cases appear to need more work in building up accumulation areas. It is obvious that after an advance of 39 points in less than six months, a corrective technical act-inn appears overdue. It could very well start from around this level. In my opinion any such correction would be mild. Very few individual issues have built up worthwhile distributional tops. From a trading vieWpoint I have B'Jggested taking profits in indi- vidual issues. I have not disturbed long term holdings as in my opinion the market in 1950 will at least test the 1946 top. I am continuing my compila.ion of last week. Listed below are two columns of better grade stocles. The first column includes issues with above average technical patcerns. This group should move higher over the next year. The second coln includes issues with below average patterns. While these issues have most likely reached their lows, any ad- 'lance over the intermediate term shculd be limited. Suggest tax switching from these issues into the first column Above Average Appr,,x, P.'ice Holland Furnace Howe Sound Inter.Min. & Chern. International Salt International Shoe 2'7 1 13 I 41 1/2 33 3/4 56 5 Intertype Jewel Tea Kern County Land Kresge 33 56 5/8 47 42 Kroger Lehman Corp. Lerner Stores Libbey-Owens-Ford 60 '3/8 56 3/8 23 ,)/8 61 5/8 McCrory Stores McGraw Hill Publ. McKesson & Robbins kLellan Stores MelVille Shoe Mercantile Stores Mid-Continent Petroleum National Biscuit National Dairy Naional Distillers 36 5/8 33 40 23 5/8 25 7/8 14 5/8 4; 3' 1/2 38 3/8 22 1/4 National Tea Newberry, J.J. 38 '18 5/8 December 16, 1949 Uncertain Approx.Price Jones & Laughlin 27 3/4 Joy Manufacturing 30 5/8 Link Belt 65 1/4 Liquid CarboniC 17 1/4 Louisville & Nash. 33 1/2 Lukens Steel 19 1/8 Mack Truck 12 3/8 Marshall Field McCall Corp. 23 5/8 22 1/2 Mead Corp. 15 1/8 Mesca Machine 38 1/2 Minn.Honeywell Mohawk Carpet Motor Wheel 60 3/8 32 7/8 22 7/8 Mueller Brass Myers (F.E.) 15 44 Nash Kelvinator 15 3/4 National Malleable National Steel Nopco Chemical 19 91 3/4 29 1/2 Not'folk & Western 49 1/2 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN , This have manemiontrellrnedtumin is not lome to or be all construed as an of the securities offer or solkltetion of mentioned herein The offers to foregoing buy or sell !Iny securities. From mate filii has been prepared by time to os as a 1ime Walston, Hoffman & Goodwin may matter of lnformlltlon only. It Is based upon information belillvBd relillble but not necBsUlflly compleie, is not quaranteed al atc.urate or final, and is not Intended to foreclole independent Inquiry. .'-. '——A- — J

TABELL'S MARKET LETTER lS WALL SlREEr, NEW YORK S, N. Y DIgby 4-4141 FORECAST FOR 1950 This is the time of the year for everybody even remotely connect- ed with stock market analysis to issue a prediction for the year to come. This becomes quite a burden on the poor investing public who could not possibly rrenaddealalyl inthgesthee forecasts issuance even if they wanted to. of my forecast until later in the month, I have gained the dubious advantage of perusing a great many forecasts that have already been issued. It is somewhat disconcerting to note that they are very predominantely bullish with only a very few predicting a dowmlard market. This is in direct contrast to last year when the market sentiment was predominately bearish with many predictions of 140 to 120 in the Dow- Jones industrials. Only a few hardy souls predicted a higher market. According to the accepted formula, the first part of a forecast must consist of a review of last year's pre'diction and an explanation of how accurately these predictions worked out. Sometimes this requires quite a facile pen. My forecast for the general pattern for 1949 was thet the aver- ages would reach their low point for the year in the first three months and that the low would be not much, if any, below the November 1948 low of 171, and certainly above 160. I stated that the market during the latter part of 1949 would approach or pass the 1946 highs of 213. The ultimate objective for the upward move was 240-250 in the Dow-Jones in- dustrial averages. This objective might be reached in 1950. The forecast was off a bit in timing as the low of the year was reached in the second quarter at 160.35. I Also it was a bit too optimistic as the high, at the present writing, has been 199.15. ' / . ML5;edic t iO,l\j.r 1950 is that llie illtsJ;.r.l;iayer,.a.gewill,at.tain .a high 0 f 3eaB.L225 wltha–';QQ.cLp..l.Q..1ab il ityj;Jtat-the.J;'lLO..;25LJ,e)l.el 1tl1Lll.e….le.a..9J1EW.D I also be lieve ther'.aiJ.sW'DJ.–teflJthe3;;'6lili!yel… Just when these figures wirl be reached is problematical. Most fore- casters expect the highs to be reached in mid-year. I doubt if the low of theebe.low185.., . In my opinion, tlemark..tJsLadeLil at leasJ;inJJl,e earlier l!!g; ) will continue to be the higheg,longivdend Py1ng issthat are Yielding 5-ro-8. The present wide spread between high grade bond . yields and higher grade stock yields will be sharply narrowed. la .. The market in 1950 will be featured by investment situations and such special situations as American Seating, Cities Service and Standard Gas, preferred, which we recommended in 1949. lhoepu situations maY,requiI'emoretimetodeve.lop,. —nowever, there-are some speculative groups that have already built up strong base patterns and could show substantial price appre,,!i eiation during the year. My first choice is the airlines and my second choice is the moving picture group. Both of these groups are sUbstan- tially below the 1946 highs and appear thoroughly sold. They could be the speculative leaders of 1950. December 23, 1949 A VERY MERRY CHRISTMAS TO ALL EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN \. hae amorafldum rn Interost in is lo not me to Of be ,II conltrued !15 an of the securities offer or lollcltation mentioned herein. of The offers to buy or sell MY securitiOS. From foregoing material h!ls been prepo!Ired by tuims e!ISto time matt DWf aoltstoinnf,orHmoaftflmonanon&ly.GoIotdw1,inbameayd upon information believed reliable br.rt not neeeuarily complete, Is not gUi!ranfeed as accurate or final, and IS not Intended to foretlose Independent InquirY I ,/