' Walston.Hoffman &, Goodwin SAN FRANCISCO, CALIF. NEW YORK, N. Y. PHILADELPHIA, PA. LOS ANGELES, CALIF. BAKERSfiELD BEVERLY HILLS EAST ORANGE, N. J. LONG BEACH MODESTO OAKLAND PASADENA SACRAMENTO SAN DIEGO SAN JOSE EUREKA FRESNO HAGERSTOWN, MD, HARRISBURG, PA. PEBBLE BEACH PITTSBURGH, PA. RIVERSIDE SANTA ANA STOCKTON VALLEJO TABELL'S MARKET LETTER 35 WALL STREET. NEW YORK 5. N. Y. Digby 4.4141 HOTEL WALDORFASTORIA PLaza 9-6860 While the industrial average continues to meet resistance in the middle of this 200-213 area, individual stocks which have-worked out of their base patterns continue to reach new highs. The rails as a group have for some time appeared ready to take over the leadership of any possible advance from these levels. Today's closing figure in the rail . average of 56.42 constitutes another new high and its favorable indications ,are backed up by the general excellent action of the rails despite the un'favorable coal strike situation. Long term optimism is still justified by the market's technical position at these relatively high average levels. Generally speaking, top formations are not being built and the strong long term trend conti;nues with increasing 'force. Purchases of well situated stocks are ad'vised and aggresssive short term buying on weakness appears to be a very safe course. list. Below are further comments on some issues in the recommended ARMSTRONG CORK – The stock has been showing improving actiono The June low held at the 1947 low of 39. Most of the top formations indicated a decline to about 39. Ability to penetrate the 1948 high of 56 wouid indicate a long term uptrend. A drop below 39 would indicate a downtrend but there is strong support at that level and such a develop- ment appears doubtful. Would buy in 50-40 range. BOEING – The recent action of the stock has greatly improved the pattern. The stock has formed a good base in the 18-25 range and 'penetrated upsideo The initial objective is 33. Would buy on all dips. CROWN ZELLERBACH – The 1947-1948 top of 35-32 indicated a decline to 21. The June, 1949 low was 20. The stock rebounded sharply into the overhead pattern, spent some time working in the 25-30 range and has recently broken out sharply above 30. This action has improved ,the basic pattern. Would now advtse purchase between 30-35. GENERAL AMERICAN TRANSPORTATION – This stock built an ex- cellent base in the 41-46 area during 1948-19490 It broke out clearly at 48 two or three months ago and the last few days has risen in a relatively stagnant market to 53. Its near tArm indication seems to be roughly 52-57 and it now appears to be a candidate for profit taking on strength as some reaccumulation in the 50-55 area seems likely. Eventual higher levels may be indicated in the future but at t'1is time other situations could show larger appreciation. Armstrong Cork Approx. Price 50 1949 Div. 3.00 Yield 6.0 1946 High 65 1949 Estimated Earnings 6.57 a Boeing 28 2.00 7.0 35 3.50 – Crown Zellerbach 33 2.00 6.1 40i- 6.20 b Gen'l Amer.Trans. 52 300 5.7 71 550 a – Actual earnings b – Fiscal year to end April 30, 1950 March 3, 1950 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN This memoralldum Is 1I0t to be cORstrued as o!In offer or sollcito!ltlon of offers to buy or sell lillY securities, From time to tIme Walston, Hoffman Golodrl'b maJ hilve an intered In some or all of the securitIes montlORed hareill. The foregoln9 material has beeR prepared b'l us as a matter of Information on y t lase upon information baU.ved reliable but not necenarlly complete, It not guaranteed as accurate or final, and Is not intended to foreclose indepeRdent InQuiry.

Ir—- — Wolston.Hoffmon &. Goodwin' SAN FRANCISCO, CALIF. NEW YORK, N. Y. PHILADELPHIA, PA. LOS ANGELES, CALIF. BAKERSFIELD BEVERLY HILLS EAST ORANGE, N. J. LONG BEACH ., MODf5.TO..,. ….OAKLAND PASADENA. SACRAMENTO SAN DIEGO SAN JOSE EUREKA FRESNO HAGERSTOWN, MD. HARRISBURG, PA. PEBBLE BEACH PITTSBURGH, PA RIVERSIDE SANTA ANA STOCKTON VALLEJO TABELL'S MARKET LETTER 35 WALL STREET, NEW YORK 5, N, y, Digby 44141 HOTEL WALDORF,ASTORIA Plaza 9-6860 The area of heavy supply between the 200 and 213 Dow-Jones in- austrial average, which we have repeatedly emphasized for many weeks past, continues as an effective barrier to any general market advance. The long term impetus which has developed during the rise in the June, 1949 lows has seemingly spent at least its first upward drive. During the last few days some of the trend indicators have given the first real warning of an intermediate correction, although individual stocks have in many cases been correcting themselves independently during the last two months. Also, during these last two months the market has been characterized by a slowly increasing amount of selling accompanied by a drop in what can be termed short term buying. Simultaneously, however, and serving as a steadying factor, has been a continuing high level of investment buying. This general Situation still remains. As stated pre- viously, no general top formations have as yet been built on the point and figure charts and we continue to feel that any intermediate correction from these levels would be both moderate and selective — its eventual' downside objective not exceeding 190-195 in the industrial average. During such a selective correction there is no need for 'disturbing or changing one's long term optimistic viewpoint. Technically, the rails still appear very definitely stronger' than the industrials as a general group. For trading accounts we would continue to advise purchases on weakness but again emphasize the main- tenance of at least 50 liquidity in periods of strength. Below are reviews of four rails on our recommended list ATCHISON,TOPEKA & SANTA FE The stock appears headed for a testing of the 110-120 reSistance area. The long term objective is difficult to figure but the stock appears to be a purchase on all dips. GULF, MOBILE & OHIO – The stock has shown aboveaverage action inasmuch as the June low of 9 held considerably above the May, 1947 low of 6. A base has formed in the 10-14 range. The present upside ob- jective is 17-19 followed by an eventual 23. Action may be slow but would buy on all dips. MISSOURI, KANSAS-TEXAS,PFD. – The stock has a very interesting pattern. The 1948 top at 34-20 indicated a decline to 19. The June, 1949 low was 16 which held at the February low. The strong potential base pattern formed in the 16-25 range has been penetrated upside. I The intermediate objective is 31-34. Would buy on all dips. I SEABOARD AIR LINE R.R. – The stock has broken out of the 14-17 range on the upside and indicates an intermediate term rally to 24-28. The longer term pattern is also favorable. The stock has held in the broad 12-26 range for over three years. An upside penetration would indicate 38-40. Atchison, Top. & S.S. Gulf,Mobile & Ohio Approx. Price 108 15 1949 Div. 8.00 .50 Yield 7.3 3.3 1946 High 121 30t 1949 Earninss 18.06 2.52 Missouri-Kan-Tex-pfd 24 none none 52 7.30 Seaboard Air Line .24 2.00a 8.1 37 3/4 5.16 a Dividend just increased to 501 a quarter. . Carries accumulated back dividends of 128 a share. March 10, 1950 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN Thh memorandum Is not to be construed as an aUgr or sollcitatTon of oHan to bllY or sell any sec.urities. From lima to time Wallton, Hofman & Goodwin may have an Interest In some or all of the securities mentioned herein. The foreqolng material has been prepared by us as a matter of Informatton only. It Is based upon Information believed reliable but not necessarily complete. is not glltHonteed as accurote or finol, and is not Intended to foreclose Independent Inquiry. .. i,

—— … —————————————— Walston-Hoffman &, Goodwin SAN FRANCISCO, CALIF. NEW YORK, N. Y. PHILADELPHIA, PA. LOS ANGELES, CALIF. BAKERSFiElD BEVERLY HILLS EAST ORANGE, N. J. LONG BEACH MODESTO OAKLAND PASADENA SACRAMENTO SAN 01 EGO SAN JOSE EUREKA FRESNO HAGERSTOWN, MD. HARRISBURG, PA. PEBBLE BEACH PITTSBURGH, PA. RIVERSIDE SANTA ANA STOCKTON VALLEJO TABELL'S MARKET LETTER 35 WALL STREET. NEW YORK 5. N. Y. Digby 4-4141 HOTEL WALDORFASTORIA PLaza 9-6860 The market weakness which carried down to the closing low in the Dow industrials of 202.33 on March 9th, was the strongest attempt we have witnessed to break through the resistance line that has furnished downside support since June of last year. From the March 9th low point, investment buying, demonstrated by the high quality of the market leadership, again firmed the entire list, carrying the industrial averages to new highs. As this is written, the short term market measurement is again overbought, as it was on February 3rd at 205.03. As we said at that time these minor overbought conditions within the framework of the strong long term uptrend are not necessarily serious but often serve as a limiting factor in the rate of advance. These waves of strength should be utilized for taking short term profits, maintaining liquidity for aggressive buying on weakness. The long term investor should continue to maintain a highly invested position and further purchases are advisable in well situated stocks. Additional reviews of stocks on the recommended list follow ALLIS CHALMERS – A very strong pattern has been built up in the 26-30 range and penetrated upside. The first objective is 39. Would buy on all dips. 1949 earnings of 6.99 a share set a new record. three y e aErLsE. CTARICst BOAT rong – The stock pattern has held been in the formed 11-17 range for over with the June low at 13 holdIng above the 1947 and 1948 lows of 11. The recent up- side penetration to 19 7/8 indicates 25 followed by an eventual 35. Would buy on all dips. ELLIOTT COMPANY – The stock has been in an uptrend since the October, 1946 low of 15. The 1948 low was 16 and the June low was 18. A new three-year high of 28t was recently reached. An initial objective of 36-37 is indicated. Would buy on all dips. PENN-DIXIE CEMENT – The stock has penetrated the strong head and shoulders base pattern formed at 18-14-16 over a threeyear period. The initial objective is 39 followed by a possible eventual 53. Approx. Price Dividend Yield 1946 High 1949 Earnings Allis Chalmers 34 2.00 5.9 62 3/4 6.99 Electric Boat 18 1/4 1.50 8.2 35 3/4 N.A. Elliott Company 25 1/2 1.75 6.8 39 1/2 6.85 Penn-Dixie Cement 27 1. 75 6.4 30 3/4 4.37 N.A. – Not available as yet. Will be below 2.49 of 1948 due to non-operating writeoffs. Backlog of 45,780,000. March 17,1950 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN Thls memorandum Is not to be construed a. an offer or .olicltation of offerl to buy or .ell any securities. From time to time Walston, Hoffman & Goodwin may have !In 1ntere.t In lome or ell of the securities mentioned hereIn. The foreQolnQ m.!lterial hat been prepllred by us as .!I m.!ltter of Information only. It Is b.!lsed upon InformatIon belhllved ,ell.,ble but not necess'lrl1y complete, 15 not gunntead liS IIccur.!lte r flnlll, and Is not Intanded to foreclose independent InquIry, '- — – — ,–, I' r .(';.. – – – — – – , , – –

– Wolston.Hoffmon &, Goodwin' SAN FRANCISCO, CALIF. NEW YORK, N. Y. BAKERSFIELD BEVERLY HILLS EASTORANGE, N. J. LONG BEACH MODESTO OAKLAND PASADENA SACRAMENTO SAN DIEGO SAN JOSE ,. PHILADELPHIA, PA. . -, – , -, LOS ANGELES, CALIF. EUREKA FRESNO HAGERSTOWN, MD HARRISBURG, PA PEBBLE BEACH PITTSBURGH, PA. RIVERSIDE SANTA ANA STOCKTON VAllEJO – TABELL'S MARKET LETTER 35 WALL STREET. NEW YORK 5. N. Y. Digby 44141 HOTEL WALDORFASTORIA Plaza 9-6860 , The Dow-Jones industrial average reached a new high on Thursday at '210.67. This is the highest level since June 1946 and less than three pOints below the 1946 intra-day high of 213.36. Of course, the action of the averages is somewhat deceptive. This has been primarily an investment market and has been led by the better .grade stocks such as those contained in the various stock market averages. While these averages are close to the 1946 high, the great majority of stocks are well below not only their 1946 highs but 'also their 194e highs. 'The action of these stocks, of course, is not reflected in the majority of the averages. Investment grade stocks continue to show much better action than the more speculative issues, and I would expect this type of action to conti- , .nue until such a time when'the abnormal spread of approximately 6 on better jgrade common stocks and the yield of 2 3/4 on highgrade bonds is narrowed .. !There is no change in the longer term favorable outlook. There are as yet 'no signs of high volume climactic buying which is usually present at a major top. . From a shorte term point of view the action of the market in breaking out of the five-week trading shelf between roughly 200 and 205 was ,constructive. The Dow-Jones industrial average reached an intra-day high Iof 210.67 on Thursday. A nearby penetration and confirmation by the rail ;average would imply that the long trading shelf of the last five weeks took the place of a correctionary decline and that any near term weakness will meet support at the top of the trading shelf in the 206-205 area. However, failure of the rails to confirm within the next few days would be a warning sign. Additional reviews of stocks on the recommended list follow CENTRAL FOUNDRY – This is a new addition to our list. The 1946 top at 17-14 indicated a decline to 9-5. A low of 7 was reached in February, 1948. A sizeable potential base has been formed in the 7-11 range with a near term objective of 14 foll0l1ed by much higher prices eventually if the 7-11 range is penetrated upside. Would buy on' all price dips .. ELLIOTT COMPANY – This stock has declined a point or more since our re-recommendation last week at 25 1/2. This stock has been on our recommended list for a long time. There is good support underneath the market and we would buy the stock on all dips. GENERAL TIRE – This is also a new addition to the list. The tire and rubber stocks have been showing increasingly favorable action recently, and while this stock is one of the more speculative issues in the group, it appears to be an interesting speculation. It has been in a long downtrend from the 1946 high of 60. The June 1949 low was 16. The fair base formed in the 16-21 range has been penetrated upside and appears to indicate an initial rally to 26-28, but the pattern forming has a very strong long term formation. Would buy on all dips. SIDUOCK OIL & GAS – This stock has been on our recommended list for a long time and while it has not shown very much price appreciation 'it has strengthened its pattern. The stock reached a high of 36 in'1948 and the November 1948 low at around 25 was tested again in June, 1949. A strong pattern seems to be building up in the 25-30 range and an up-' side penetration would be very constructive. The stock appears attract- ive for purchase around current levels. 'Central Foundry Elliott Company General Tire Approx. Price 10 1/2 24 3/8 23 3/8 1949 Div. .60 1.75 2.00 Yield 5.7 7.1 8.5 1946 17 3/4 39 1/2 60 1949 Earnings 1.59 6.85 .94 Shamrock Oil 27 1/2 1.60 5.8 32 1/2 3.63 Std.& Poors estimates General Tire will earn at least 5 in 1950. March 24 '950 This memoranum b not to be construed as an offer or solicitation of offen to buy or sell any EDMUND W securities. From time to TAREI.T, time Walstnt Hoff.man & Goodwin mav have an Interest In some or all of the securities mentioned herein. Tho foregoing materllil has been prepared bV us as a matter of InformatIon on IV It Is based upon Information believed reliable but not necessarily complete, Is not ejluarllnteed as accurate or final, and i, not Intended to foroclose Independent Inquiry. i

-',,,,, Walston.Hoffman &, Goodwin SAN FRANCISCO, CALIF, NEW YORK, N. Y. PHILADELPHIA, PA. LOS ANGELES, CALIF. BAKERSFIELD BEVERLY HillS EAST ORANGE. N. J. LONG BEACH MODESTO OAKLAND PASADENA SACRAMENTO SAN DIEGO SAN JOSE EUREKA FRESNO HAGERSTOWN, MD. HARRISBURG, PA. PEBBLE BEACH PITTSBURGH, PA. RIVERSIDE SANTA ANA STOCKTON VALLEJO lABELL'S MARKEl LETTER 35 WALL STREET. NEW YORK 5. N. Y. Digby 4.4141 HOTEL WALDORF.ASTORIA PLlIla 9-6860 The shar'p selling wave on Thursday, with heavy VOlume, brought the industrial average back to the top of the trading shelf between 205 and 200 in which the average had previously held for the month and a half period between late January and mid-March. The rail average reacted also but still held within the even longer trading shelf between 57000 and 53.52. The rail average has thus far failed to confirm the upside pene- tration by the industrials in mid-March. Thursday's intra-day lows were 205.53 on the industrials and 54.05 on the rails. So far, action has been normal and has held within the bounds of a minor technical correction. However, from here on, the pOints of 205 and 53.50 become rather important. If both averages should penetrate these levels it would indicate, from a technical viewpoint, that some further correction of an intermediate importance is probable. There are two very strong support levels below the market in the industrials. One is at the 200-202 level and the other is at 195-190. On the rail average there is comparable support at the 50-49 level. Such a decline to these levels, if it occurred, would not be abnormal considering the fact that the market has advanced 'for' nine months without any correction of even intermediate importance. It is obvious that at some time along the line a correction will occur. Whether it will occur at this point,or after the industrials have penetrated the 1946 highs of 213.36, is problematical. The rail average may give the clue to the next important near term move. Ability of the rails to penetrate 57.00 and confirm the pre- vious advance by the industrials would undoubtedly bring new strength into the market. Whether or not this can happen is problematical. Some of our internal market gauges are beginning to show signs of unfavorable action. Selling pressure has been increaSing and buying power has been ' diminishing. Even though the market has met support so far at the first support levels, more time is needed fo see whether or not the market is ;. strong enough to hold at 205 and 53.50, or whether it may be necessary to work to somewhat lower levels before the market becomes oversold. As yet, neither the short term nor the intermediate term gauges have'yet indicated an oversold condition. In any event, the long term uptrend remains intact and any fur- ther weakness into either the 202-200 support level or the 195-190 support level should be used to add to long term holdings. At the moment would confine purchases to issues with attractive technical patterns but which have not yet had any sharp rise and which appear to be less vulnerable to any sharp drop even in the event of a further sell-off in the averages. There are many such issues available. One excellent example is Twentieth Century-Fox. It is still holding within the 18-25 range which it has occupied for over two years. With earnings of over 4 and a 2 dividend, it appears attractive in the low 20s. Other issues in the same category are Allied Stores, Columbian Carbon, Distillers-Seagram, Lerner Stores, Lowenstein, Montgomery Ward, Schenley and Shamrock Oil & Gas. A second group which also appears attractive are stocks which have broken out of the accumulation ranges and have had a temprary reaction back to strong support levels. In this group might be mentioned American Export Lines, Electric Boat, Elliott, Penn-Dixie-Cement. Another group that has formed a strong base pattern but has had only a moderate upswing is the airlines. The strongest stocks in this group appear to be American Airlines, Eastern, TWA and United. Western Airlines also appears to have speculative promise for long term capital gains. March 31, 1950 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN Thl, memorandum Is not to be construed, an offer or solldtatlon of offers to buy Of sell any securitIes. from time to time Walston, Hoffman & GoodwIn may hlIve an Interest In some or all of the securities mentIoned herein. The foregoIng material has been prepared by us as a matter of Information only. It I, based upon Information believed reliable but not necessarily complete, Is not ljIuaranteed as accurate or flIla, and is not Intended to foreclose Independent Inquiry.

Walston-Hoffman &. Goodwin SAN FRANCISCO, CALIF. NEW YORK, N. Y. PHILADELPHIA, PA. LOS ANGELES, CALIF. BAKERSfiELD BEVERLY HILLS EAST ORANGE, N. J. LONG EACH MODESTO OAKLAND PASADENA SAN DIEGO SAN JOSE . SANTA ANA EUREKA FRESNO HAGERSTOWN, MD. HARRISBURG, PA. PITTSBURGH, PA .0. RlVERSIDe' SACRAMeNTO SEATTLE, WASH. STOCKTON VALLEJO TABELL'S MARKET LETTER 35 WALL STREET. NEW YORK 5. N. y, Digby 4-4141 HOTEL WALDORF.ASTORIA PL. 96860 At Thursday's close of 212.13 and the intra-day high of 212.67, the Dow-Jones industrial average was very close to the 1946 closing high of 212.50 and the intra-day high of 213.36. The 1946 high, in turn, was the highest price since the 1929 high of 386.10. The rail average remains backward. At Thursday's close of 56.23, it was considerably below the 1946 high of 68.31 and had even failed to penetrae the March 4th intra-day high of 57.00. However, I expect the rail average to penetrate the March high Shortly and to reach at least the 60-62 level. The release of March earnings later in the month should help the rails in their repeated attempts to reach new high territory. , SinCe June, 1949, I have conSistently stressed the fact that the marKet leaders would be the better grade, dividend paying issues and cer- tain special situations and that one of the main motivating forces behind this market was.the abnormal spread between the yields on high grade common stocks and high grade bonds. This spread must be narrowed. The nine months advance from the June lows has partially corrected the spread but I still b.elieve it will be narrowed further. High grade common stocks with long records of uninterrupted dividends are still available at an average yield of 2 5!oBnly s to l ig 2 htly 3/4. under 6 in I believe contrast with yields. on high grade bonds of the average yield on high grade common stocks will drop to an average of 4t to 5. At the 1946 high, the average yield was about 3.3. In terms of the three market leaders, this should mean p,rices of – American Telephone 170-175 General Motors 95-100 U. S. Steel 40 I believe these prices will be reached before the market reaches an important top. I continue to believe that high grade issues are underpriced. In contrast to the buoyant action of the better grade stocks, many speculative favorites of 1946 are still languishing near their lows of the past three years. Many of these issues are undoubtedly undervalued but until a larger number of speculatively minded buyers enter the market, they may spend considerable time in building. up base patterns. One group of sp.eculative issues, however, appears to have completed its accumulation and is ready to move ahead. This group is the airlines. We oiginally recommended this group over a year ago. The group has had a fair advance since that time but still indicates higher'levels. In the field of special situations, we were fortunate last year in recommending such issues a American Seating, Brooklyn Union Gas, Cities Service, Standard Gas 4 preferred, and White Sewing Machine, among others. I believe there will be similar situations in the market during the corning year. American Export Lines, Central Foundry, Electric Boat, General Tire, Miss6uri-Kansas-Texas,pfd., Penn-Dixie-Cement, and Shamrock Oil & Gas are candidates. , In the field of backward issues that are selling near the lows of the past three years, but showing substantial yields, are Allied Stores, , Allis Chalmers, ,Columbian Carbon, Fairbanks Morse, Montgomery Ward, Schenley. i 'and Twentieth Century-Fox. These issues have all built up substantial po- . tential accumulation patterns but as yet have given no indication of when they are going to mov,e. Aprii 6, 1950 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN This memorandum is not to be construed as an offer or solicito!ltion of offan to buy or sell any sec.urltlel. From time to time Walsto,n, Hoffman & Goodln may have an interest In lome or all of the lecunhes mentioned herein The foregoing material hal been prpar.d by us al !I matter of Informafln only. It IS based upon information believed reliable but not necessarily complete, is not guaranteed as accurate or final, and Is not Intended to foreclose Independent Inquiry. . '- … ….. — – —

, Walston-Hoffmon &. Goodwin SAN FRANCISCO, CALIF. NEW YORK, N. Y. r' … 'BAKERSF1EU) ….u;… BEVERLY H'ILls'l-TE'AST dUNGE. N' LONG BEACH MODESTO OAKLAND PASADENA SAN DIEGO SAN JOSE SANTA ANA PHILADELPHIA, PA. LOS ANGELES, CALIF. —'- …..EUREKA fR..E..S…N. O HAGERSTOWN, MD-.- ..H.A. RRISBURG, PA.., PITTSBURGH, PA RIVERSIDE SACRAMENTO SEAnlE, WASH. STOCKTON VALLEJO TABELL'S MARKET LETTER 35 WALL STREET. NEW YORK 5. N. Y. Digby 4-4141 HOTEL WALDORFASTORIA PLna -b8bO In a mixed market on Friday the Dow-Jones industrial average, aided by a thirteen-point run-up in Allied Chemical, reached a new intraday high at 216.17 and a new high closing at 215.31. In addition to Allied Chemical, television issues were again strong on publication of very favor- able earnings statements. The balance of the market did little or sold off fractionally. 322 issues advanced while 573 declined. The rails for the past week have again put in a disappointi',g perform.l.nce and still remain in the long 53-57 range in which they have held since early 'February. Up until today, recent leadership has been confined to the better grade issues. Strength in the television shares on Friday, together with some low-priced issues, has caused nervousness in market cirCles. However, recent earnings statements issued by some of the television companies have been quite astounding and, despite sharp run-ups, most teleVision stocks are selling on a very low price-to-earnings ratio reflecting the possible temporary nature of the earnings. There are only two happenings that 'would Signal extreme caution. One would be too sharp a continuation of the advance with volume of climactic proportions. The other would be a downside penetration of the recent trading range by the rail average. As yet, neither of these two things have happened. While the higher grade investment stocks and some special situations have moved ahead sharply, the main bulk of the market has done little or nothing marketwise and a great many issues are selling considerably below their 1937 and 1946 highs. I am listing below a group of fifteen issues in this category. Some are dividend payers – others are not. Most all of them are speculative, some of them to a very great degree. They, however, like the airlines which we have been consistently recommending, have one thing in common. They have all built up large potential base areas and could eventually signal wide percentage moves. At the moment ,there is no indication when such a move will take place. These potentially bullish patterns have been present for a long time and these stocks may continue in their trading ranges for quite a while. However, if the potentially bullish patterns work out they could eventually have a sizeable move. 20,000 invested in equal number of shares of these stocks would have been worth 51,200 at 1937-1946 highs, or Slightly more than 2 times present prices. This does not imply that these highs will again be reached but these stocks could show wide percentage appreciation. AP12rox .Price 1242 Div. 1937-1246 High American Radiator Baltimore & Ohio Central Foundry Elastic stop Nut Electric Boat Eversharp Gray Manufacturing R-K-O Spiegel, Inc. Sunshine Mining Union Asbestos & Rubber U.S.Foil B United Stores, 2nd pfd. Wayne Pump Wyandotte Worsted 15 3/4 11 1/2 10 3/4 9 18 1/4 10 7/8 10 1/2 7 3/4 9 3/4 10 3/8 12 1/2 17 5/8 11 15 1/4 11 1/2 1.25 nil .60 .70 1.50 .25 nil .45 nii .66 1.50 .60 1.10 .25 1.50 29 1/2 40 1/2 17 3/4 18 35 3/4 57 3/8 24 1/2 28 1/2 39 7/8 24 23 3/8 30 1/2 20 3/8 50 3/4 25 3/8 Eversharp paid nothing in 1949,but will pay 251 in May, 1950. , April 14, 1950 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN ThhulsemaenmiontrearnedSu'!minIfsenmot to Oor be all coofnsttbruesdecausrmani omffenrtoiroMlodl1hceitraetu!.o\.n I T0e offers t.o b foregolnq uy m, doern.aIel IIhiIlIInybleneurpIrtlefeisalrFe'daoimb'lltIIsumsneoattloiIInttimemnaedteteWdr atOlosoftofInenr'feodHremosfaeftmloIannndeo&pnteyGn.doeIotndtwIsiinnbqaumlieraydy. upon information believed reliable but not necessarily complete, IS not qua ran ee as accura e o r . …

Walston.Hoffman &, Goodwin SAN FRANCISCO, CALIF. NEW YORK, N. Y. PHILADELPHIA, PA. LOS ANGELES, CALIF. BAKERSFIELD BEVERLY HIl!LS EAsT ORANGE, N. J. – LONG BEACH MODESTO OAKLAND PASADENA SAN DIEGO SAN JOSE SANTA ANA EUREKA .4. FRESd 'f-RAGERSTOWN, MD. HARRISBURG, PA. PITTSBURGH, PA. RIVERSIDE SACRAMENTO SEATTLE, WASH. STOCKTON VAllEJO TABELL'S MARKET LETTER 35 WALL STREET, NEW YORK 5, N. Y. Digby 4-4141 HOTEL WALDORFASTORIA PLaza 96860 Regardless of the fact that the industrial average reached a new high on Wednesday at 216.32, there is considerable nervousness and bear'. ishness about the Street. The sharp run-up in the television shares has worried a great many people, It has been likened to the sharp run-up in the airlines in late 1945 when this group also broke through previous highsinto new uncharted territory. However, there is one rather important difference. In the case of the airlines in late 1945 and 1946 these stocks were bid up on the baSis of an anticipated increase in earnings that never materialized. In the case of the television stocks the situation is somewhat different. Even though some of these issues have doubled and trebled in price in recent months, they are still selling at only 3 to 4 times the rate of their first quarter earnings. Of course, just how stable these earnings are is very questionable, but the sharp increases have caught the fancy of speculators and there has been tremendous activity in this type of issue. This has caused increasing nervousness among those more conservatively inclined. However, I believe that it is important at this stage not to lose sight of the main motivating force behind'the market. In my opinion, the most important reason why the market should work higher is the abnormal spread between the yield on high grade common stocks and bonds, High grade bonds are yielding 2 5/8 to 2 3/4 and there is little prospect of yields advancing. On the other hand, high grade common stocks are still available at yields of from 5 to 6, or more, The Dow-Jones industrials are yielding roughly 6 at present prices, This spread is wider than at any period in the last fifty years with the exception of 1917-1918 and 1942, which were years in which our war fortunes were at their lowest ebbs, and in 1931-1932 at the bottom of the depression. At the 1946 top the yield was 3,3 on the Dow-Jones industrials and stocks were selling at 17 and 18 times earnings. Today stocks in the Dow-Jones industrial average are selling at less than ten times earnings. Thus, the market, while it is historically high, is statistically cheap, This may sound like an old story. This letter has been reiterating it for the last year. However, it seems wise to mention it again in the face of current nervous- ness and uncertainty. I do not believe that this market will reach an important top until the better grade common stocks are selling at prices to yield at least the normal ratio of 4 to 5. Obviously, there will be corrections as a market that has advanced roughly 56 points is subject to correctionary declines. So far, the advance has been orderly and con- solidating phases have taken the place of technical corrections. In spite of the fact that the averages are selling at new highs since 1930, there are many stocks that have had little or no price advance from the June lows and are selling considerably below their 1946 and 1937 highs. Not all of these stocks are attractive purchases. Some may continue to move in relatively narrow trading ranges, in order to build bases, but others have already built up potentially strong base patterns and are in a position to move ahead. Some patience may be required in issues of this type but many of them are dividend payers and selling at extremely high yields. It is this type of issue, together with the high yielding investment-type issues,that offer the best and safest purchases at this stage of the market. Subject to technical corrections,I believe that this market should continue to work higher and that the minimum objective on the industrial average is 225 with a more likely objective of 250-260. At 260 the Dow- Jones industrial averages would be selling at prices to yield around 5 and at about 13 times earnings. This would appear to be a fairly normal ratio. EDMUND W, TABELL April 21, 1950 WALSTON, HOFFMAN & GOODWIN This memorandum I, not to be construed liS an offer or solicitation of offers to buy or sell any securities. From time to time Walston, Hoffr;olln & Good;in may have o!In Interest In some or all of the ,ecuritiel mentioned herein. The foregoing mllterial hal been prepared by us as a matter of Information only. It IS. based upon lnformlltlon believed reliable but not neceuo!Irily complete, is not guaranteed as o!Iccurate or final, end Is not Intended to foreclose Independent Inquiry.

Walston-Hoffman &, Goodwin SAN FRANCISCO, CALIF. NEW YORK, N. Y. PHILADELPHIA, PA. LOS ANGELES, CALIF. BAKERSFIELD BEVERLY HILLS EAST ORANGE, N. J. LONG BEACH MODESTO OAKLAND PASADENA SAN 01 EGO SAN JOSE SANTA ANA EUREKA FRESNO HAGERSTOWN, MD. HARRISBURG, PA. PITTSBURGH, PA. RIVERSIDE SACRAMENTO SEATTLE, WASH. STOCKTON VAllEJO TABELL'S MARKET LEnER 35 WALL STREET. NEW YORK 5, N. Y. Digby 0\-4141 HOTEL WALDORFASTORIA PLata 96860 This past week saw the market, apparently successfuly, withstand another testing of the intermediate resistance level which presently stands between 210 and 212 in the Dow-Jones industrials. Time and again over the past months the market has presented a very uneasy appearance on the tape accompanied by expectations of a sizeable reaction among traders. However, as we have often stated, this is primarily an investment bull market, accompanied by relatively little speculation – at least to date. Markets of this tyPe avoid excesses both on the upside and downside. The industrial average this past week penetrated down into the 210-212 res- istance and the wave of investment buying in high priced motors, steels, chemicals, etc., was very impressive. The natural selectivity of a major rising market is very much in evidence and it would perhaps be worthwhile at this point to reduce or eliminate investments in certain stocks that have reached important objectives. These issues can at best be expected to spend some time in reaccumulation and the funds obtained perhaps employed in other I'lell situated stocks that have not yet made major moves. Three stocks on our recommended list that are candidates for profit-taking at this time are AffiRICAN CYANAMID. This has had one of the most spectacular rises during the past year. We originally recommended its purchase in the 38-40 range and the stock closed tonight at 70. It has exceeded what seemed its probable objective – 64 – and may possibly work somewhat higher. However, percentagewise it seems unquestionable that the major part of its present uptrend has been completed. INTERTYPE. We originally recommended this around 25 and it has fully realized its first objective of 43-45. It has reacted somewhat from its high around 45 down to tonight's closing at 40 3/4. Would expect it to at best remain in this 40-45 area for some tie to come. EASTERN STAINLESS STEEL Was originally recommended around II. It has reached its first objective at 17-18. Tonight's closing is 16. There appears to be heavy resistance in the 17-21 area which would prob- ably retard its further progress for some time to come. Would suggest for reinvestment or additional investment at this time certain stocks on our recommended list which are still at attractive buying levels. Among these, SOUTHERN RAILWAY, which closed tonight at 37 1/8, and recently showed an excellent earnings statement, should eventually sell at much higher prices. The second railroad is SEABOARD AIR LINE which closed tonight at 26. Seaboard also is showing excellent. earnings and paying a 50 cent quarterly dividend. Its recent ability to reach 26 indicates the possibility of an eventual 38-40 for the stock. Also on our list is DISTILLERS-SEAGRAM which closed tonight at 21 and now indicates 23 followed by an eventual 32. The fourth candidate for purchase here is WESTERN AUTO SUPPLY. This has moved up somewhat recent- ly to tonight's clOSing of 50t. Its recent ability to penetrate the 47 level promises an eventual price in the 60-70 area. April 28, 1950 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN This memorandum Is not hayo an interest in some to or be all condrued as an of the securities offer or solicitation mentioned herein. of The offers to buy or sell any seurltte1. From time to foregoing material has been prepared by. us al a timmaetteWr lioisftolnn,foHromfaff'Yl'ann o&nlyGooIdt IS.inbameady upon informa.tion beileyed reliable but not necellarily complete, is not guaranteed as accurate or final, and IS not Intended to foreciol mdependent Inquiry. ,. .,,,-' d

Wolston.Hoffmon &. Goodwin SAN FRANCISCO, CALIF. NEW YORK, N. Y. PHILADELPHIA, PA. LOS ANGELES, CALIF. BAKERSfiELD BEVERLY HILLS EAST ORANGE, N. J. LONG BEACH MODESTO OAKLAND PASADENA SAN DIEGO SAN JOSE SANTA ANA EUREKA FRESNO HAGERSTOWN, MD. HARRISBURG, PA. PITTSBURGH, PA. RIVERSIDE SACRAMENTO SEATTLE, WASH. STOCKTON VALLEJO TABELL'S MARKET LETTER 35 WALL STREET. NEW YORK 5. N. Y. Digby 4-4141 HOTEL WALDORFASTORIA PLata 9-6860 After both averages reached n,ew high territory for the move at 217.13 for the industrials and 57.58 ';for the railS, weakness in the tele- vision group created uncertainty in the general list and the averages re- acted to lows of 214.14 and 55.75. Considering the sharp decline in some of the television stocks, the comparably moderate decline in the averages attests to the underlying strength of the market. The weakness in the television issues was to be expected. After advancing since early January, the pace of the advance increased sharply in the past five or six weeks,'accompanied by heavy volume. Sharp gyrations in price built up fairly substantial distributional tops in a comparatively short period of time. At the week's lows, most of the individual issues were near the downside objectives indicated by the distributional tops. However, conSiderable consolidation may be needed until the next move is indicated. The action of the general market has, in the main been quite differ- ,ent from that of the television group. The fifty-seven point advance from' 'the June, 1949 lows has been quite orderly and the leadership has been good. The better grade issues have led the advance. Every advance has been follow-' ed by a consolidation before the uptrend has been resumed. As a result, our intermediate and longer term gauges have never registered an overbought condition. Until the general market follows the recent action of the tele- vision group, with volume of climactic proportions and inferior leadership, we see no indication of' other than the normal technical corrections. It would appear that the general market has not even started the explosive phase of the advance. I continue to expect a minimum of 225 in the indus- trial average and a maximum of 250-260 before a full fledged intermediate correction occurs, and continue to advise the purchase of recommended issues during periods of irregularity. Some groups of stocks have partiCipated in the advance to only a very small extent and are actually selling at the same price level as they were when the industrial average was in the 170-180 range. One such group is the retail store stocks. Individual issues have fluctuated in narrow trading ranges Since early 1948 when most issues made their lows. As a result, these stocks have built up substantial potential base patterns. If these areas are penetrated upside, some of these issues would indicate a 'return to close to the 1946 highs which are considerably above present L '.. levels. A list of some of these issues is compilea below, together with the trading range in which these stocks have held for more than two years and the possible price objective if the area is penetrated upside. May Depart- ment Stores, which we originally recommended at 40, is the only issue which has broken out of the range. Approx. Approx. 1949 Price Div. 1946 High Trading Range POSSible Indication Allied Stores Assoc.Dry Goods Best & CompanY City Stores Interstate Dept. May Dept. Stores Mercantile Stores National Dept.Stores 34 16 26 17 22 49 15 15 3.00 1.60 2.00 1.20 2.00 3.00 1.00 1.50 63 3/8 36 1/4 52 1/2 38 1/4 50 70 35 39 25 37 12 19 24 30 13 – 21 18 – 26 36 48 13 – 18 14 22 50 55 29 33 48 35 – 40 36 70 25 32 (' May 5, 1950 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN – ,7If,0–',\ \ /Co This memorandum is not to be construed illS an offer or solicitation of offen; to buy or sell any seturities. From time to time IWahton, Hoffmlln & Goodwin may have an interest in some or 1111 of the securitilt. mentioned herein, The foregoing material has been prepared by, us as matt,er of infCrmation only It 11. based upon information believed reliable but not necessarily complete, II not guaranteed as accurate or final, and IS not Intended to foreclose Independent Inquiry. … r..' .- . ……. ,.ij