, Walston.Hoffman &, Goodwin NEW YORK 5, N, Y 35 WlIli Street DIGBY 44141 PHILADELPHIA 2, PA 1420 Walnut Street PENNYPACKER 55977 TABELL'S MARKET LETTER LOS ANGELES 13, CALIF, 550 South Spring Street MADISON 9322 SAN FRANCISCO 4, CALIF 265 Montgomery Street SUTTER 12100 The September 22nd high of 228.17 was penetrated early last week and, after some slight hesitation, the industrials moved into the next objective area of 230-235. Some resistance was being met as witness the highs of 232.31 on Wednesday, 232.17 on Thursday and 232.47 on'Friday. The rail average was also meeting resistance above 70. In my opinion, the market is in a rather vulnerable technical position after a thirty-seven point undigested rise from the July lows. The news, both from the business and from the war front, has been goodUnfavorable developments would find the market in an overbought position. I advised the purchase of a selected list of stocks in July in the 205-195 area. Would continue the policy of taking sizeable profits as each individual issue reaches its objective. Below is a review of more issues in my recommended list. ATCHISON,TOPEKA & SANTA FE was recommended for purchase in the 109- 112 area. At the week's high of 135 5/8 it had about reached its intermediate upside objective of 136. CATERPILLAR TRACTOR was recommended in July in the 38-39 area. The stock has upside potential of 48-53. Ability to reach 45 would be a confirmation of the advancing pattern. GENERAL MOTORS was originally advised for purchase at around 60 for the old stock. Profit taking was advised in the 95-100 range in June. We again recommended purchase in July at around 77-79 for 'the old stock on the equivalent of 39 for the new split stock. At present levels of 54 it appears high enough., NATIONAL LEAD was recommended around 40 in July. A high of 53 has been reached. The intermediate term objective is rather vague at 50-60. The long term pattern on this issue indicates an eventual 75-80. Would advise profit taking on further strength only for shorter term traders REPUBLIC STEEL was advised for purchase around 34 in July. At the high of 41 3/8, it is approaching its 43-45 objective. SMITH, (A.O.) was recommended for purchase in July at around 29. It has rallied to 35 and closed at 34 1/4. Appears to be behind the market. It has an initial objective of 40-42 followed by a higher long term ob- jective. WESTERN PACIFIC was recommended for purchase around 34. The stock reached a new high on Friday at 44. The first objective is 51. In intermediate t.erm trading accounts; continue to advise taking profits even if it results in bringing accounts down to less than 50 invested. 'Advise new trading purchases only in accounts that are very heavy in cash. Advise retention of long term investment holdings but , ' no new purchases. Cash may come in very handy during periods of correct- ion. Closing Averages Dow-Jones Industrials Dow-Jones Rails 231. 74 69.65 EDMUND Wo TABELL WALSTON, HOFFMAN & GOODWIN October 6, 1950 Thb memorandum Is not to b. eonstrued III .an offer or lollclt.,tton of off.n to buy or .ell MY Slcur!tl(Js From tim. to time Waldon, Hoffman & Goodwin may hay. an Int.r.st In some or all of the securities mentioned herein, The forlgoing material hal been prlp('Ir.d by 1,11 as .II m.attef of information only. It ii, bas.d upon Information beHind reliable blrf not nlcluarlly c;omplet., Is not qu,antHd at accurate or final, and i not Intln-dld to forlciOte Indep.ndent InquIry. ,

Walston.Hoffman &, Goodwin' \ NEW YORK 5. N, Y 35 Wall Street DIGBY 4.4141 PHILADELPHIA 2. PA 1420 Walnut Street PENNYPACKER 55977 TABEll'S MARKET lETTER LOS ANGELES 13. CALIF 550 South Spring Street MADISON 93232 SAN FRANCISCO 4. CALIF 2bS Montgomery Street SUnER 12700 Recently,the market has ly volatile. SharD run-UDS in individuRl issues give the market is a short term trader's paradise. The market appears to be honeycombed with spec ial situ- ,'ations. All that needs to be done is to buy an issue that is going to be split, increase the dividend or declare an extra and, when the news is 'announced, sell it out at four or five pOints profit to some individual who 'believes that the stock is going to move even higher. There have been a great many such situations available recently and there may be more. This is the usual pattern when the market enters the be- ginning of a possible distributive phase. Erratic fluctuations are necessary both at the top aDd bottom of the market. From a technical viewpoint, in no other way can a distributional top or an accumulation base be formed. 'An agile operator is justified in attempting to profit by these quick short , term moves provided he realizes the risks involved after a thirty-seven 'point advance in the industrial average in three months and does not become ,overextended. For the'intermediate trend speculator or the long term in- vestor, this type of operation is hazardous in the extreme. The advance from the July 13th low of 195. 1fO to the recent high of 232.50 can be divided into two phases. The first phase consisted of a rally ,from 195.40 to the August 24th high of 222.17, an advance of 26.77 points, , or roughly 14 in forty-one days. This letter strongly dvised the purchase of stocks in the 195-205 area and at that time recommendd a special list of purchases. Since the August high, I have been increasl1g1y cautious and have advised selling each recommended issue when its individual upside ob- jective was reached. From August 24th to now, this has resulted in sizeable profits in a great many of these recommended issues. The second phase of the advance consisted of an advance from the Aug- ust 24th high of 222.17 to the October 6th high'of 232.50, an advance of , 10.33 pOints, or less than 5. In addition, a considerable part of the re- cent rise in the average has been due to sharp run-ups in individual issues such as Chrysler and General Motors. It appears to me to be rather trite to say that a discussion of the ,averages is academic because one cannot buy the averages and regardless of their movement,profits can be made in individual issues. This is plausible ,When the averages move in a narrow range. It is not plausible, in my opi- nion, when the average moves decisively in either direction.This pre- . supposes an ability to select the 5 or less of the issues that will move counter to the general market. I do not pretend to claim such omnipotence. That is why I suggest following the general trend. The various averages are, I admit, far from a perfect gauge of the general market. However,until some better indicator is found,they are the best available. I believe the long range outlook is decidedly inflationary. However, ,from a short term point of view, the outlook may be deflationary because ;(1) regardless of the outcome of Korea, we are definitely going ahead with Iii long range defense program of huge proportions, (2) a continued rise in prices and wages,and demand for non-essentials would result in a much lar- ger cost for the defense program,(3) therefore, the government will do ,everything in its power through higher taxes, excess profits taxes,credit restrictions,increased reserve reqUirements, higher margins,allocations, , ,price roll-backs,etc., to hold down the inflationary potential, (4)tremendous ,buying of consumer's goods after Korea was stepped up so abruptly that it may have caused some saturation due to lessening of tension since our vic- ,tory in Korea,(5) as the effect of our defense spending will not be felt until mid-1951,this could result in a rather sharp temporary drop in busi- 'ness in the next few months. For roughly the next 2 years,it will be a tug- of-war between inflation and deflation.This will result,in my opinion,in a trading range not more than roughly 5 above the July high of 229.20 (or approximately 240l or more than roughly 5 below the July low of 195.40 (or approximately 185 . As the market approaches the upper part of the range,as now,I would be cautious.As the market approaches the lower part of range,I would be optimistic. Believe inflationary potentials will definitely out- weigh the deflationary efforts over the longer term.Therefore,lower part of range may not be too closely approached.However,it will be a trading market 'for a long period of time and not a one-way street. October 13, 1950 EDMUND W. TABELL Thil mClmorudum Is not to b. conltn…d a. an off.r or solicitation of off…. to buy or lell any .ecuritie. From time to time Walston, Hoffman & Goodwin may have an Interest in lome or all of the lecurltles mention.d herein, The foregoing material hal been prepared by u. a. a matter of information only It is baled upon informlltlon belieyed reliable but not n.cenarll., complete, Is not guuanteed al aCCurate or flnlll, and II not lnt.nded to forecl05e indClpendent lnqlliry. . .. ,,../…….. -,. , f, ….

. Walston.Hoffman &, Goodwin NEW YORK 5, N, y, 35 WaH Street DIGBY 44141 PHILADelPHIA 2, PA. 1420 Walnut Street PENNYPACKER 55'77 TAB ELL'S MARKET LETTER LOS ANGELES 13, CALIF 550 South Spring Street MADISON '3232 SAN FRANCISCO 4, CALIF 2bS Montgomery Street sunER 12700 The market moved in a rather wide range during the past week. The industrial average reached a low of 225.39 and a high of 232.01 IIhile the rails ranged between 68.57 and 71.31. While the rails fractionally penetrated the early October high, the industrial average has as yet been un- able to move above the 232.50 high oCOctober 6th. If this average fails to confirm the rail strength, the week's low of 225.39 will become an i1,portant downside point to watch. I believe the market is in the process of forming an intermediate top. Some more time may be spent in the 235-225 range but would continue to take profits as individual issues reach their upside objectives. Below is a report on some of the issues in my recommended list CELANESE CORP. closed at 39t on Friday. The recent high was 40. The stock was recommended in July at around 32. The stock is in a long term uptrend. Some consolidation appears needed and in the event of a general market decline the stock might move lower. Would buy on all dips as the longer term pattern indicates substantially higher levels. CROWN ZELLERBACH was recommended at 3 earlier in the year and at around 32 in July. The recent high was 432 . The upside objective is 45. At present levels, the stock is close to this objective. DElTER,RIO GRANDE & WESTERN ViaS recommended for purchase at around 28 in July. The stock reached a high of 38 on Thursday. The short term indi- cation was 37 which has been slightly overreached. However ability to pene- trate the 1948 high and reach 39 would indicate a further extension of the rally to the 47-56 area. Agile traders might take profits and re-purchase on a decline or on ability to reach 39. DISTILLERS-SEAGRAM was originally recommended at 15 and again at around 17 in July. The stock reached a new high on Thursday at 26 3/4. Some consolidation may be needed,but the first indication is 32 followed by a later 40. Would take advantage of price declines to purchase this issue. There is good support at 23-24. GOODALL-SANFORD was recommended in July at around 14. A high of 19t 'was reached on Wednesday. This stock has been building up a strong poten- . tial base pattern in the 14-19 range. Ability to reach 20 would indicate an ,uptreQd to 24 followed by a later 31. Before an upside penetration occurs, '/' a general market decline might carry the stock 10Vier and broaden the base. / Would ;bUy on declines or on ability to penetrate upside. , NORTHERN PACIFIC was recommended for purchase in July at around 19. A high/of' 28 was reached during the past week. As the intermediate term ob- ject1ve is 28, advise taking profits. / PULLMAN CORP. was originally recorrended at 34 in July and again re- cently when the stock broke out on the upside of the accumulation range to ., reach 40. The upside objective of the base pattern is 48-52. A high of 48 was reached on Wednesday. ' As the upside objective has been practically ,'reached, would take profits on further strength . ., ST. LOUIS & SAN FRANC ISCO was recommended at around 12 in July. A high 'of 18 was reached recently. Ability to penetrate the 17 resistance indi- cates higher levels for this issue with a longer term objective of 23 to 26. Some consolidation may be needed after the recent advance. Would buy the stock on weakness. 15-14 should be a good support level. Closing Averages Dow-Jones Industrials – 230.33 Dow-Jones Rails 69.93 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN October 20, 1950 This mltmordndum Is not to b. construed a. an oHe, -or solicitation of offers to buy or sell any 'ecurltles From time to tim. Walston, Hoflman & Goodwin may hue an Inte…1f in some or /!Ill of Ih. securities mentioned herein. lh. lore901n9 material has be.n prepared by us as a matter of information only. It is based upon Information beli.ved reliable but not necenatlly compl.te, 11 not QU/!Irant..d /!IS accurate at final, and Is not Intended to forecloso Independent Inquiry, .. , .. . . .. ., —

! Walston.Hoffman &, Goodwin I NEW YORK 5, N, Y 3S Wall Streof DIGBY 4-4141 PHILADELPHIA 2, PA 1420 Wo!!Ilnut Street PENNYPACKER 5S977 TABELL'S MARKET LETTER LOS ANGELES 13, CALIF 550 South Spring Street MADISON '32)2 SAN FRANCISCO 4, CALIF 265 Montgomery Street SUTTER 11700 When one attempts to evaluate the various economic and business fact- .ors both favorable and unfavorable and both long term and short term, that are currently influencing stock market values, it is difficult to arrive at a conclusion as to what immediate effect these conflicting factors will have on the price structure. c The main bullish factors are long term. They are substantially the same as those which influenced this letter to conSistently recommend the purchase of stocks in the 160-170 range between October 1946 and June 1949. The events since Korea have increased the power of these long term bullish factors and influenced this letter to again advise purchases in the 195-205 range three mor.ths ago in July. These long term influences should eventually, four or five years from now, result in a price level above the 1929 highs , in the industrial average. These factors have been enumerated many times in these letters. Briefly, they are (1), the inflationary forces in effect since 1940 and earlier. This means eventually a lower dollar. (2) The spread- lng income base and incresed consumer spending power, (3) population in- crease, (4) large savings in the hands of individuals; (5) the bond-stock . price ratio is favorable. The short term favorable factors are,(l) high 1950 earnings, (2) higher dividends and stock splits. Arrayed against these favorable factors are some rather important un- favorable elements. Most of these are of a short term nature. The main long term uncertainty is, of course, the international situation. TLe shorter term uncertainties are (1) the possibility of a drop in business before the defense program really takes hold due to advance buying after Korea and a temporary filling of immediate needs. (2) The effect of credit controls on automobile and building trades. (3) Higher taxes and possible excess profits taxes. (4) Further deflationary moves such as higher reserve reqUirements, price controls and wage freezing. (5) Higher money rates. It is difficult to arrive at a definite conclusion from these diverse fundamental factors. Perhaps the technical pattern will furnish some en- lightenment. My interpretation of the technical pattern has been on the bearish side. recently. The advance from the July low has been rapid and the market has . shown signs of the formation of a distributional top. The point and figure charts of the averages show only moderate tops at the moment. The clearest pattern is in the New York Times average. The top ,n this average indicates a possible 40 correction of the advance from the July lows. In terms of the Dow-Jones industrials, this would be about 218215. This pattern may, of course, broaden. The indication above is the ob- jective of the moment. The point and figure charts of individual issues fall roughly into .three groups. The first group consists of issues that show moderately higher. levels. The second group consists of issues that have reached or just about reached their upside objectives but have formed no distributional tops. The ; third group consists of issues that have reached their upside objectives 'and ha'Te also started to build distributional patterns. At the moment, the 'largest number of issues are in the second group. This would seem to imply that some further time may be spent in the 235-225 area in order to broaden the distributional tops. During such a period, sharp run-ups in individual issues could continue to occur while the rest of the market is undergoing distribution. The short term indicator is reaching oversold territory and a tempo- rary rally could occur. This would broaden the possible distributional top. The industrial average would have to sell well below 220 level before the intermediate term indicator reached oversold territory. The technical pattern indicates caution. I have been advising sales on strength. I continue that advice. October 27, 1950 EDMUND W. T ABELL WALSTON, HOFFMAN & GOODWIN Dow-Jones Industrials – 228.28 Dow-Jones Rails 67.35 This momotllndum II not to b. construed o. on offer 0,. lollcitatlon of off.,., to buy or lell any ,ecurltles. From tim. to time Walston, Hoffman & GoodwIn may ha. an Int.rest in lome Of all of the SflcurI1i mentioned herein. The for.qojng mClterial has been prepared by UI ,fI, .. m,atter of information only. It is b,ned upon Information believed reliable but not necenar!!, complete, is not Quarante.d as acct,lrate or IInlll, and IS not intended to foredose Independent inqt,liry –. …. , –