Walston.Hoffman &, Goodwin NEW YORK 5, N. Y. 3S Wall Street DIGBY 4-4141 PHILADELPHIA 2, PA 1420 Walnut Street PENNYPACKER 55'77 TABELL'S MARKET LETTER LOS ANGELES 13, CALIF 550 South Spring Street MADISON 9-3232 SAN FRANCISCO 4, CALIF 2bS Montgomery Street SUTTER '1700 The market underwent a week of rather erratic gyrations. After reaching a high of 227.51 on Monday, the market declined to a low of 222.00 early Wednesday. The favorable news from Korea resulted in an advance that .. reached a high of 227.69 on 'lhursday. It will be noted that at no time during the week was last week's high of 228.17 penetrated and that the week's low of 222.00 was below the previous week's low of 223.00. Wide price fluctuations after a steep advance quite often are at least a preliminary indication of a change of trend. The market as a whole has been unable to make much upside progress since the high of 222.17 reached on August 24th. From the July 14th low to August 24th the market advanced almost twenty-seven pOints. In almost the same period of time since August 24th, the market has been able to advance only six pOints, regard- less of sharp upswings in individual issues. Continue to advise caution. Below is a review of some of the issues in my recommended list,plus a few that have interesting patterns ANDERSON CLAYTON & CO. was originally recommended in July in the 55- 57 range. The recent high was 71 3/4. The stock has broken out on the up- side of the long 47-61 range in which it had held for three years. The technical objectives indicate an initial intermediate advance to 85,follow- 'ed by higher longer term levels. Would buy during periods of decline in the general market. CHICAGO, fULWAUKEE, ST. PAUL, PFD. reached a new high for the move at 45 on Friday. This issue was placed in my recommended list in July when it was selling in the low 30s.. Stock is a volatile performer and may work somewhat higher, but the upside objective was 45 and this has been reached. EVERSHARP , INC. was recommended early in the year as a low priced spequlation at 10 3/8. A high of 12 7/8 has been reached. There is some supply of stock at 13-15 which may take time to penetrate, but the longer .term accumulation pattern in the 7-11 range indicates a potential 17-20. Would purchase on moderate dips. GRAY MANUFACTURING has been mentioned several times in this letter. The company anufactures a dictating machine which seems to have caught the public fancy. Sales have increased sharply. The company recently de- clared a 251 dividend, the first since 1945. The supposition is that if earnings hold up, this payment will be continued quarterly. The stock has done little r;,arketwise. It has held in the broad 7-14 range for over three years. An upside penetration woulj indicate a level above 20. Ability to reach 12 would be an encouraging near term development. At the present price around 11, tile stock appears to be an interesting speculation with an excellent potential income. PLYMOUTH OIL, which closed at 48 3/8, is not on our recommended list but it has one of most attractive patterns in the oil group. The stock has held in the broad 37-50 range for almost two years. The recent high .. of 51 was encouraging. Due to present position of general market, would endeavor to buy on price declines. There is support at 46-44. The upside potential indicates a testing of the 1948 high of 70 followed by higher , levels. STUDEBAKER CORP. was originally recommended at 18. It reached a high of 35 3/8 in June and declined to 26. Stock has rallied back to 33. The objective is 33-37. Some further strength is indicated but the stock is approaching its objective. ' U. S. RUBBER reached a new high since 1947 on Friday at 51 3/8. This stock is not on our recommended list but it has a most interesting forma- tion. It was in a pronounced downtrer,d since the 1946 high of 80. At the June, 1949 low of 32, it appea.red to have reached its downside objective. Since then it has formed a very strong technical pattern. Would add the stock to recommended list on price declines. The potential upside ob- jective indicates the possibility of substantial price appreciation. Closing Averages Dow-Jones Industrials Dow-Jones Rails .September 29, 1950 EDlUND W. TABELL WALSTON, HOFFMAN & GOODWIN This hllYe memionrtenredsvtl'fIln is not some to or b. all construed . 611 of the s4Icuritiel oft.r Dr ,ollenaUon of mentfoned herein. The offofre.'golfnogbumyateorris11Ihaasn)'bereencurp/'feiep', rFedromby time to us as I!I timma.HeWr 0h1tonIn'fHoortmfmhao-nn o&nlyG, oIotdwISinbameady upon Information bell,'.-.d reliable but not necessarily complete, Is not guarant..d as accurate or final, and is not Intended to foreclose Independent inquiry. I I , 3' ..talill .. I ….. Iblll ,iL.'''''',II,I''''''1 .11..1111 I.

, 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 –. …. , –

. Walston.Hoffman &. Goodwin' NEW YORK 5, N. Y 35 Wall Street DIGBY 4.4141 PHILADELPHIA 2, PA. 1420 Walnut Street PENNYPACKER 5-5977 TABELL'S MARKET LETTER LOS ANGELES 13, CALIF 550 South Spring Street MADISON 93212 SAN FRANCISCO 4, CALIF 265 Montgomery Street SUTTER 1-1700 . After reaching new lows of 223.07 and 65.67, both averages rallied ; later in the week to recover a portion of the decline from the year's highs 'of 232.75 in the industrials and 71.31 in the rails. The fact that both averages penetrated on the downside of the. recent trading ranges indicates that the intermediate trend is down. As yet, neither average has retraced even a third of the advance from the July lows. The rally in the rails has been particularly disappointing. A one-third retracement would be 220.39 '. and 64.43, one-half would be 214.08 and. 61.00 and tllO-thirds would be 207.83 and 57.55. I would be inclined to favor a half to tHo-thirds retracement. The breadth-of-the-market studies continue their deteiorating pattern. Regardless of new highs in the averages during September and October, the number of advances in individual issues has been decreasing while the number of declines has been growing larger. This is also true of upside and downside volume. , The industrial average has broken belm, the intermediate term 28-day moving average line thus indicating a'downtrend of at least intermediate proportions. The present average is still above the longer term 200-day moving average. There is no change in the unfavorable implications of my technical work for the nearer term. Continue to advise partlal liquidity in investment accounts and no new purchases. POSSible strength in the next fell days should be used to further lighten accounts if not already done so, in acord ance with the advice of this letter for the past few weeks. 'However, if the averages should reach 215-210 and 61-58, I ,,;ould consider the market in a buying range. News events could cause a sharp sudden break so I am listing below recommended purchases in the event that the market reaches the levels mentioned above. These purchases should be made on weakness on a late tape — in other words, when the market looks its worst. his requires courage, but such shakeouts offer the best buying opportuni- ties as witness our buy advice in July in tbe 200-195 area and in June 1949 in 170-160 area. BETTER GRADE Allied Chemical, American Can, American Cyanamid, ArneI'. Potash B, Bethlehem Steel, Buffalo Forge, Chain Belt, Chicago Pneu.Tool, Colubian Carbon, Continental Can, Deere & Co., Distillers-Seagram, Eastman Kodak, Food Machinery, Gulf Oil,Hercules Powder,Interchemical Corp.,International Harvester, Kennecott Copper,Link Belt, Mathieson Chern. ,May Dept.Stores, Mont.Ward,National Distillers,National Lead, Otis Elevator, Phelps Dodge, Pittsburgh Plate Glass,Schenley Ind. ,Sperry Corp. ,Square D, Standard Oil of Calif.,Union Pacific,United Carbon, United Engineering,Western Auto Supply, Wrigley. MEDLJM GRA.DE American Colortype,Associated Dry Goods,Burlington Mills,Carrier Corp., Celanese Corp. ,Colorado Fuel & Iron,Combustion Eng.Super,Davison Chern., Fruehauf Trailer, General Precisio'l Equip., General Tire, Intertype Corp., Jones & Laughlin,Lambert Co. ,Lerner Stores,Lov;enstein,McGraw Hill,National Supply,Pacific Mills,Pfizer (Chas.),Plymouth Oil,Rheem Mfg. ,Tennessee Corp. ,Twentieth-Century-Fox, Vic tor Chem., Worthington Pump. SPECULATIVE Amer.Airlines,Austin Nichols,Balt.& Ohio,pfd.,Balt.& OhiO, Braniff Air., Bush Terminal ,Capital Airlines, Chic .Mil.& St ;Paul, pfd., Copperweld Steel, Dayton Rubber,Denver & R.G & W.,Eastern Airlines,Elastic Stop Nut, Fansteel Metal, Goodall-Sanford, Gray Mfg., Ill.Central, Int .''el & Tel. ,Northwest Air.,Pitts.Coke & Chem.,Pitts.Consol.Coal,Radio Keith,Raytheon,Reynolds Metals,Robbins Mills,St.Louis-San Fran.,Shamrock Oil,Spiegel Inc.,TeLas Gulf Prod. ,United Air.,Western Air. ,Western Maryland,Wyandotte Worsted. Closing Averages Dow-Jones Ind. – 228.10 Dow-Jones Rails 66.67 EDMUND W. TABELL WALSTON,HOFFMAN & GOODWIN November 3, 1950 This memorandum Is not to b. construed liS an off., or solicitation 01 offers to buy or sell ,fin., securlties From time to tim'll Wo!Iilton, Hollmen & Goodwin mey hen en Int….st In 10m. or o!IlI of the securities m.ntioned henlln. The for.going material hi been prepared by us u a mo!ltter of informetlon only, It Is besed upon inforMetlon ben….ed r.llebl. but not necessarily complete, Is not querflnte.d as o!Iccurate or final, o!Ind is not Intended to foreclose Independent InqIJ!ry III' I1, I I I Ii I, i II 'I .,

Walston.Hoffman (\ Goodwin NEW YORK S, N, Y 35 WClII Street DIGBY 44141 PHILADELPHIA 2, PA 1420 Walnut Street PENNYPACKER 55977 TABEll'S MARKET lETTER LOS'ANGELES 13, CAliF 550 Soutn Spring Street MADISON 9-3232 SAN FRANCISCO 4, ClIF 165 Montgomery Stret SUTTER 1-1700 The very favorable Election results and a temporary cessation of the Chinese Red threat resulted in a much stronger post-Election market, After reaching new lows on Monday at 220.59 and 64.00 after a sharp three-day drop brought on by the new developments in Korea, the market recovered to 229.20 and 67.4l. The ELection trend toward conservatism has very favorable long term ,implications and strengthens the conviction often expressed ,by this letter that go.od dividend paying common stocks are sound long term holdings under present conditions and that equities should constitute the much greater part of investment portfolios. However, from an intermediate term point of view, it may take some further time before the long term favorable factors offset the temporarily unfavorable short term possibilities. Despite the rally of this week, the technical picture continues to suggest considerable caution. While both averages at Monday's lows had retraced one-third of the advance from the July lows and thus fulfilled the minimum requirement of an intermediate correction, the volume indications continue unfavorable. Friday's volume was 1,640,000 shares which is considerably below the transactions of 2,575,000 shares on Monday's decline. Also, the number of advances has lessened each successive day despite the fact that the general market advanced. There were 857 advances on Wednesday, 813 on Thursday and 635 on Friday. Conversely, 'the number of declines have increased with 137 on Wednesday followed by 261 on Friday. This indicates a few issues are carry- ing the burden of the advance while the balance are under pressure. Also, the sharp swings at the top of the 37 point rise since July leads to caution. These sharp price swings usually occur at the top of an intermediate rise. Since October 25th, a period of thirteen trading days, the industrial average has traveled over an area of 33 pOints in up and down swings, or an average of 2t pOints a day. The rails have had a thirteen point swing or approximately a point a day. The important points to watch are the October highs of 232.75 and 71. 31 and Monday's lows of 220.59 and 64.00. However, most of t,he work in the recent trading range has been on the upper part of the area so a downside penetration would have more significance than upside. The tops have broadened enough to indicate 210-205 and 61-59 in the event of new lows. An upside penetration would carry to 235-237. The present pattern indicates caution on buying on strength. It appears advisable to wait until the pattern clarifies. An upside penetra- tion of the recent range would be followed by a consolidation and an opportunity to buy at approximately present levels. A downside penetra'tion would result in some very excellent buying opportunities in a great many issues with very favorable long term patterns. November 10, 1950 Closing Averages Dow-Jones Industrials Dow-Jones Rails 229.29 67.30 EDMUND W TABELL WALSTON, HOFFMAN & GOODWIN This m9morandum is not to bl! CDMtrullld III lin offer or solkita!ion of offefl to buy or sell 1'1' securiliu from time to time Wl'Ilston, Hoffman & Goodwin may havil an intered In somo or all of the securities montioned herein. The lorlllgo;og r'lalcHlIlI has been prepared by 1,1 fIS /I matter of Information only. It il balId upon Informatton belulved relible but not neceurlly compl.'e, h not quarl!lntClcd ' accurate or fhull, nd is not intended to foreclose independent inql)iry. ,, n ./

.Wolston.Hoffmon&Goodwin NEW YORK 5, N. Y. 3S WII Street DIGBY 4-4141 PHILADELPHIA 2, PA 1420 Walnut Street PENNYPACKER 5-'977 TABELL'S MARKET LETTER LOS ANGELES 13, CALIF 550 South Spring Sheet MADISON 9-3232 SAN FRANCISCO 4, CALIF 265 Montgomery Street SUTTER I 171)0 Both averages have rallied sharply from the lows reached the day before Election and on Frida; were near the year 1 s highs reached last mo. -h October High Nov.6th Low Recent High Industrials Rails 232.75 71.31 220.59 6.00 231.01 70.39 At the November 6th lows,both averages had retraced about one-third of the advance from the July lows of 195.40 and 50.66. This is the minimum requirement of a correctionary decline and seemingly places the market in 'e. position to move ahead into new high terri tory. . However, in my opinion, if new highs are made they will not be much above the highs of OGober. The sharp up and down fluc tua1io(ls of the averages and of individual issues over the two or three weeks has considerably l)roadened the trading range. If this area is a distributional top, the po, tential downside implications have been considerably enlarged. I,. ., an event, the downside objective of the 1. . lstrial average would be in the 210-205 area. As most of the work in the trading range has been in the upper side of the area, a downside penetration would be more significant than an upside penetration. In the event of new highs, the objective would not be much more than 235-237. Under the circumstances, it would appear that the purchases at this high level entail the risk twenty to twenty-five points lower as against fiVe to seven points higher. In my opinion, the possibilities of profit ,. c' not warrant the risk involved. I would rather be a buyer when the possib lities were reversed as they were in JuJ.. Still advise tak 1g profits on further strength. Below is a technical report on some of the issues ,in my recommended list Di3TILLERS-SEAGRAM closed at 26 3/4 on Friday after equalL,1g the 1950 high of 27 dlJ.ring the day. This stock was originally recolJlll.nded at 15 and again at around 17 in July.\while this stock has ,advanced sharply, the technical pattern is still strong with an initial indication of 32 and a long t,c;. 1 40. In event of a general market correc tion the stock would most likely decline but there is .. strong support at 24-23 where the stock should be bought. FRUEHAUF TRAILER closed at 32 1/8 on Friday after reaching a new high. at 32 3/8. Fruehauf was originally recommended in this letter at 19 3/4, and has been often mentioned in the 20-23 range. The stock has reI ched its initial objective a 32 but-the longer term C' c '-ive is 41-47. S, me consolidation may be needed around present levels. Stock should be an attract- ive purchrae on price declines. .. NATIONAL LEAD reached a new high on Friday at 63 3/4. This stock Has recommended around 40 in July. At present prices it has passed its intermediate term objective which was extremely vague at 50-60. Seems high enough at present. Would be inclined to take profits and await a corrective ,reaction. Long term objective is 75-80. NATIONAL marketwise for SUPPLY closed two years. It at 19 on Friday. held' in the 19-16 The rang s e t o' h L'om as la t do e ne 19 4vl euryn\. illit t l e. September of this year. The year's high was 21. Stock has a strong . C(',/1- tial technical pattern and seems behind the marlet. Is near a strong support area, and even in the event of a general market decline should react only . moderately. REYNOLDS METALS closed at 37 5/8 on Friday. The year's high was 38 3/S. This stock was ori(,inally recommended at 21 and was consistently re-reCOlJllnen- ded while it was fluctuating aimlessly in the 21-25 area for over a year. The short term indication is vague but the longer term indication at 65 is so favorable that, despite its sharp advance, I hesitate to suggest taking profits. Recently, the stock has held in the 35-38 range and a penetration out of this area should indicate the next short term move. The upside indi- .. cation would be 41-43 and the downside would be 32-30. At the latter figure, the stock would appear to be a most interesting speculation. November 17, 1950 EDMUND W. TABELL WALSTON. HOFFMAN , GOODWIN This memordndu'! II -IIot to be construed 41. n off.r !,r solicita!lon f/f off.rl to buy or. ,elf dny stlcuri1ies From time to time Walston, Hoffman & Goodwin may have n Interet 11'1 sO.me or al of the securities mentioned herein The foregOing materllll hu been prepared by us as a matter of information only It is bosed upon Information beheved reliable but not nuenerUy compl.te, Is not guarutetld as dccur.ste or final, and is not intended to foreclose indepl1lndent Inql.olry ; … …..

Walston.Hoffman &. Goodwin NEW YORK 5, N, Y 3S Wall Street DIGBY 44141 PHILADELPHIA 2, PA 1420 Walnut Street PENNYPACKER 5-5977 TABEll'S MARKET lETTER LOS ANGELES 13, CALIF 550 South Spring Street MADISON '3232 SAN FRANCISCO 4, CALIF 265 Montgomery Street SUTTER 12700 The market advanced into new high territory on Friday with the in- dustrials at a high of 236.63 compared with the October high of 232.75. The rail penetration was less decisive with a high of 71.54 against the October high of 71.31. The upside penetration'indicates that the market could work somewhat higher, but would continue to take profits as individual issues reach their objective. ' It might be expedient at this time to review the issues this letter has recommended and the present course of action. It must be remembered that all recommendations in my letter are for the intermediate term of three months to a year or for long term holding. Recommendations are not for short term trading. ' I have suggested taking profits on the following. The price in paren theSis is the approximately recommended level and the other figure is where profit taking was suggested BETTER GRADE Auminum Co.of Amer.(55) 71, American Cyanamid (38-40)70, Atchison,Top.& S.F.(109) 135, Gen'l Amer.Trans.(44) 53, General Motors (39) 54, Intertype (25) 40, National Lead (40)63, Pullman (34) 48. MEDIUM GRADE California Pack.(35) 52 Crown Zellerbach (29) 43, Northern Pacific (19) 28, Republic Steel (34) 3 to 45, Studebaker (18) 33, SPECULATIVE Chicago,Mil.,St.Paul,pfd.(32) 45, M-K-T pfd.(26) 39, Radio Carp,(11-13) 21-23, Seaboard Air Line R.R.(15-22) 39, Western Union (26) 41. Would also take profits on the following issues. Figure in parenthesis is recommended price and other figure is Friday's close BETTER GRADE Allis Chalmers (28) 43, Caterpillar Tractor (38) O, ColGate Palmolive Peet (44) 49, Deere (39) 54, Federated Dept.Stores (272) 44, .General E1etric (42) 50, Libbey-Owens-Ford (32) 37, National Dairy (39)50, Sears Roebuck (42)-'54;cStandard Oil of Calif.(64).82, Standard Oil of N.J. (70) 90, Youngstown Sheet & Tube (37) 49. . MEDIUM GRADE Celanese (32) 43 Combustion Eng.Superheater (24 7/8) 37, Firestone Tire (54) 73, General Tire (24) 32, Illinois Central (39) 55, McGraw Hill (32) 40. SPECULATIVE Boeing Air.(26) 35, Chicago ilreat Western (15) 22. The issues listed below are the remainder of the list. Would continue to hold provided intermediate term accounts have 60 liquidity and long term investment accounts have 25 liqUidity (in common stock portion).; If less than 40 invested in intermediate term accounts or 75 (in common stock portion) in investment accounts, would purchase issues in this last list BETTER GRADE Alpha Port land (35) 34, -Amer-;-Hmne Pd 30 j American '.NCCeo.wIm.sTm.(eF3r3cinia3aljn8Cc)irae3ld3i,(t 5A5(5n)3de)4r8so5,Cn0o, CluElmanybdtiioacnnotC(t5a5Jrob-5ho7nn)so(7n303(3A141PC2amn9n)oFnarirMbailnlks s(4M)bo)rs55e 50,,(41) 45,Inter.Harvester (28) 32, Kresge (36 3/4) 39, May Dept.Stores (48) 58 McCrory Stores (35) 33,Mercantile Stores (16) 18, Melville Shoe (26) 23, Montgomery Ward (57) 66, Otis El.(35)35,StndiLRd 58, eR Pae-4.-H-c-t87LlOO,United Carbon (39) 43,Western Auto Supply (..) 44, Westinghouse Elec.(30) 34 5/8). MEDIUM GRADE Allied Stores (34)42,Associated Dry Goods (17)19, Avco,pfd. ( 39 ) 44, 1luH.ar.dBtu'en-M;llJ.B.–(-2(…J/.Jt-)–25', Carrier (13) 17 , S.hlD PnatGl36,,City Stores (18 3/4)18, Cont.Baking (13)17,DiBt.gea.(15 17)28;Elec.Boat (18)17,Elliott (26)23,Fruehauf (25)31, Hewitt (17-19 )22, I.fltex .M!ll. Us )11 ,Inter .Dept .Stores (22) 29, Lambert (22 )23, 'Lerner (23)23,Lorillard (27)26,Lowenstein (19)28,McKesson (36 7/8)40,Natl. Dept.Store (15)18,Natl.Supply (19) 21Pac.Mills (30)41,Penn Dixie (22t)24, Pub.Serv.E.(25)22,Purity Bakeries (31)28,Schenley (24)39,Shamrock (31-26) 30, Smith,A. O. (29) 33, Se-rl!aG (52 )6e;-SG 6) 11 11, 20th-Cent. (22 )21 , ..;estern- Pec.O,.) 115. (SPECULATIVE grade stocks will follow in next letter.) November 211, 1950 EDMUND U. 'l'ABELL ,. This mamor,ndum is not ho!lve an infored In ome to or be 1111 COI\trued III an off.r or sohdttion of of the secuntles montioned herem The ofoffreengOtlonoburyl'loterrli.'..!n.LTht,i!''!'('ti;MeelnJ''i'aps3rt!'liit''1)mY.AU1101 e..,R'WmaGniUhi\OtfmYlridMrMii1iNo&nlyGooItd-1-5,b,m,aeyd upon information believed reliable but not nec.eSlarlly complete, 11 not guaranteed lI accurate or final, lind 1 not .nt.nded to foredoso Independent Inquiry , I I

, ,Wolston.Hoffmon& Goodwin, NEW YORK 5, N, Y 35 Wall Street DIGBY 44141 PHILADELPHIA 2, PA 1420 Walnut Street PENNYPACKER 55'77 TABEll'S MARKET lETTER LOS ANGELES 13, CALIF 550 South Spring Street MADISON 93232 SAN FRANCISCO 4, CALIF 265 Montgomery Street SUTTER 1-2700 The market moved in a'wide 'range during'the past week. From a high of 236.06 'on Monday, the industrial average aeclined to 223.82 on Wednesday and subsequently retraced about half of the decline to reach a high of 230.42 on Friday. The market has been swinging back and forth in a wide range for ovr ,'two months. Since October 1st, the market has had ten moves up or down of five pOints or more. At this week's low of 223.82, the industrial average . had almost retuned to the August high of 222.17. It is tt,(Se nervous rapid moves that l-;-'c caused me to be extremely cautious in recent letters. Since mid-Septembel' the market has been ;-.ing 'ing back and forth in a range bounded by the Novemter 26th high of 23 .63 and the November 6th low of 220.59 on the industrial average. On several composite averages, particularly on the New York Times 50-Stock Combined , ,average, the market has made a triple top at the highs of 157 reached twice in October and on November 24th. As a result, a very sizeable potential top has been formed. From a technical point of view, a downside penetration of the 147 low of November would indicate the possibility of a decline to 137 followed by 124. Translated into terms of the Dow-Jones industrials, the first figure would mean about 210-205 and the second about 195-190. The graphs of individual issues seem to indicate that the first figure is the more probable in the event of a downside penetration. The graph patterns of individual issues show quite diverse patterns. Quite a number of issues show vulnerable patterns similar to that of the averages. Other issues show only minor tops and even in the event of a general market depline should meet support not much below present levels. There are many issues of this type that we are still retaining in our recommended list published in last week's letter. Examples are National Supply, Bullard, Fruehauf, Lowenstein, Fansteel,and some of the airline issues. Most of these stocks have had only moderate advances. Other issues have had sharp advances and have reached their upside objectives. We have advised profit taking in these issues in our recommended list. Examples are General Motors at 54 and Standard Oil of New Jersey at 90. There are other issues that have advanced sharply but have not yet reached their objectives. These issues are still retained. For example, Reynolds Metals recommended at 22 and again'2t 33 reached a new high of 42 3/4 on Friday. However, it has not yet reaeLed its ultimate objective. Some consolidation may be needed in issues of this type before the advance is resumed. There is no change in the general advice of this letter. Would con- tinue to be 60 liquid in intermediate term trading accounts and 25 liquid in investment accounts. Would make no new purchases except for very short term trading purposes until the market declines or the pattern clarifies. In last week's letter we listed the better grade and medium grade issues in our recommended holdings. We did not have room to list the speculative group. This group is listed below. The figure in parenthesis is the originally re,commended level. The other. figure is Friday's close. SPECULATIVE GRADE American Air (9 3/4) ll, American Air,pfd.(68) 72, Amer.xport Line (23) 17, Amer.& Fgn Power,2nd pfd.(14) 15 3/4, pcan fWeoleng 33 1/8, BGnu\-1-um7(-) 29L Braniff Air 8) 10 3/8,-Btldd-G-G'- (9) 15, Capital Air (9 3/4) 9 7/8, Central Fdry. (lO2'l 7 7/8, Gfticagcr;- Ind& i 14 7/8Deny 16 1/8, .- las cic StoJ Nut (9 1/8) . 10L ande 2 Eversharp ( ) 10 464 3/ , 8 ) Eastern Air.(15 3/ 14, Goodall-San- 8 ford (14) 16 3/4, GruJ Mfg. ( 10-9) 10, G-1rl.-f,MeM-l 111 /iH 19 3/8, Long Bell Lumber A (27) 24, National Air.(8) 11, Northwest Air.(12 3/) 10 3/4, , Pan-Amer.(9 3/4)8 7/8,'R-K-0 (7) 7 3/4) Reynolds Metals (22-33) 42, L s- Servel (13) 8 3/4, Spiegel (9-11) 11, Sunshine Mining (10 Stores,2nd 1/8) 10 pfd.(lO 1/8 3/4) T1W0A, (17) 18, Western AiUrn.i(t8ed) Air.(14 10 3/8, 3W/4y) an18'ot7te/8,(1U4)ni1te3d. December 1, 1950 Closing Averages Dow-Jones Industrials Dow-Jones Rails 228.89 69.82 EDMUND W. TABELL WALSTON,HOFFMAN & GOODWIN Thi, memorandum Is not to b. (ostrnd a. en off., or .ollcltatlon of offers to buy or seU any secutltl. From lim. to time Waldon, Hoffmu 3 Goodwin may hue an Intarut In some or all of the lecurltio. mntioned herein. The lorego1n9 material hal been prepared by UI as a matter of information only. It is ba58d UDon information believed rellabl. but not necessarily complete, II not 9uarante.d 115 IIccurate or final. and II not Intended to lorecl08 independent Inquiry.