Wol s ton. Horell &- Goodwin.-f !.. 'i.-r-…,.,Jt'!.'–;'.!;– 7-i 'i.-f, all 'f;t–,,'r';—icJ,'Fr;,;c'',,' ,)i'I. '; ,i ' ,', NEW YORK S, N. Y. ,,.,, 35 Wall Street DIGBY 44141 t,', PHILADELPHIA 2, PA PENNYPACKER 5597'1 '( TABELL'S MARKET LEnER LOS ANGELES 13, CALIF 550 South Spring Street MADISON '132 SAN FRANCISCO 4, CALIF 265 Montgomery Street SUTTER 12700 '.t\ I';' 1f' '1;,;-,-. E' (.- t (t'f I trials,Thaenmd a8r0k.e1t has 2 on rallied from the rails to last week's lows of 242.06 on the indusreach intra-day highs of 251. 57 and 82. 48 )'1t i;j ei'on 'Thursda'. 'I'he averages are now entering the heavy overhead resistance i,'at 2')0-2')'( and 4-86. Volume on the ,advance has been Loderate. , ;,, Still advlse caution in accounts concerned mainly with longer tern capital appreciation. Would employ only 40 of available funds and would ;'', LL' concentrate such holdings in groups with good defensive qualities. The E' ;,;'following groups have good technical patterns. ,, !&fnd I The AIRLINES were still continue to my favorite group believe they will for price appreciation in work higher despite their 1950, recent I'' ; rise. Strong base patterns were built up in the 1947-1950 period, and they ;\ ;' ,have had only half of their potential advance. As an example, Eastern air- r' lines has rallied 10 points from 14 to 24. The pattern suggests an ultimate i ;'34, or a pOSSible further 10 point appreciation. Some consolidation may be ;, .-,required, but the group appe2rs attractive on all minor price declines. ,;, it I like the BUILDING SlIfPLY Group. Issues in this group are forming a very strong' base pattern. They may not do too much marketwise over the near ! , term, but be one of eventually the market they indicate substantially higher leaders of the 1952-1957 rise. levels. They could ;', , , , The DRUG group is selling considerably below the 1946 highs and is (', ,,'much less vulnerable than many other groups. It may be in a long term accu- ;, ; ,mulation area. It is a good defensive group with longer term possibilities. t FINANCE CO!YIPANIES have reacted quite sharply since Korea, but at 7' recent lows, they were at strong support levels. Regardless of popular .,,, opinion, this group appears reasonably priced and should be bought on price l'. r; 'dips. It might be of interest to observe the price pattern of this group ' in the war period of 1942 to 1945. During this period, the finance group ,,', )3,dvanced over 100, and greatly outperformed such war groups as aircrafts, i; ';'metals and steels. ;, The !YlACHINERY group is composed of many different types of companies ,trt, ,so it is difficult to predict a general pattern. There are a great many ;J,' ';individual issues in this group that have attractive technical patterns, E ','so I am classifying the group as one that should be bought on minor price declines. ,.' The NATURAL GAS group reacted quite sharply after Korea, but at the 1,,;' ' July lows were at strong support levels. I believe this group is forming ,'-'c a reaccumulation area. The action may be slow, but purchases should be ; ' ,made on weakness. This shOUld be a relatively stable group. ; If LB.!Yl. is eliminated from the OFFICE EQUIP!YlENT group, the rest ;;; d c of the issues have done little marketwise for a long period 0 Substantial ,.';, ',base patterns have been formed, and the group occupiea a good defensive , position. I would suggest buying on declines in anticipation of above ti, i,e , average and long term price appreciation. ,,, PRINTING AND PUBLISHING stocks have been backward, but they have ' formed fairly good base patterns. The group appears attractive on declines. , 'The issues are not vulnerable and offer moderate appreciation possibilities /' ',,over the longer term. ,Y' , The RETAIL TRADE group has built up good base patterns and the up- o;, side objectives have not yet been reached. I would buy on all minor price , ' -dips. ).- THEATRE AND MOTION PICTURE stocks have held in a narrow range near ,.-!.- the lows for over three years. The long term upside potentials are very large percentagewise and the group appears oversold. A very interesting ;appreciation opportunity is possible for the longer term. i; TOBACCO issues are selling close to five year lows and appear to be in a good defensive position. Appreciation possibilities, however, are . ',limited . The UTILITY group has done little marketwise since the Korean break. ', ; In contrast with new highs in industrials and rails, the utility average is slightly below its 1946 and 1950 highs. Moderate base patterns have ,'formed and the group possesses appreciation possibilities plus Ciefensive ,'qualities and good yields, ,,!Ylarch 22, 1951 ED!YlUND W. TABELL WALSTON, HOFF!YlAN & GOODWIN I – r n'Gwlqan(heSs nR!feI lIstlu,d lan or solidtation of off,rl to buy or sell any securities From time to time Waldon, Hoffman & Goodwif! ,a.,. .! 1'.,v. u '(nn-rib In lome or arrOf th IIcuri'fls-1rrlntioned her.in. Th. foregoill; mat.nal has bun prepared by us 11 a matt.r of information only It il based ' upon information b.Ii…..d r.llabl. but not .cessarily complete, is not ;uarantnd as accurate or final, and is not intended to for.close independent inquiry

— — -.-..– PHILADELPHIA 2, PA 35 Wall Street 1420 Walnut Street DIGBY 44141 L PENNYPACKER 55'm '0 -TA-B-E-LL-'S-M-A-R-KE-T-L-E-n-ER—— LOS ANGELES 13, CALIF, SAN FRANCISCO 4, CALIF, 550 South Sprin9 Street 265 Mont90mery Street MADISON '3212 sunER 17OD After reaching lows on of 245.34 on the industrials and r 78.65 on the rails; the market rallied moderately to 249.25 and 80.97 on Friday. I do not expect the rally' to carry very far. Volume indica- ,tions continue unfavorable with 1,770,000 shares traded on Wednesday's ,'', decli n e as The against 1,150,000 on Friday'S advance. rails will most likely continue to give a clew as to the near ',; ;,;S term trend of the market. The rails have spearheaded almost every advance , ' and decline Since June, 1949. This is particularly true since the Korean- iY ; ,lows, Wednesday's downside penetration by the rails will most likely be ;0; followed by a new low on the industrial average. , 'The rails have reacted 13 from the high of 90.82 while the indus- ;,,; ;'. trials, at the March 14th lows, had reacted less than 6 from the high .;' ; .- of 257,06, It would ap'1ear that the rails are nearer their lows for this ;' ,'phase of the decline than the industrials. Would expect the rail average r,to make its low during the next few days in the 78-76 area. This should / ;, be followed by a mild technical comeback. On the following minor decline, ,;' ,; the rails might hold above their previous low while the industrials might ,0' ;,' reach their low in the 236-240 area. This is largely guesswork but P ' appears to be a probable pattern. 1''– , , After both averages reach their lows for this phase of the decline, , ,-(in presumably the 240-236 and 78-76 range) technical action must be -, , watched very closely, A rally with weak characteristics might substantially broaden the distributional pattern and indicate considerably lower levels. , ,' The alternative would be a co.structive re-accumulation pattern. It will ti , take time, possibly a couple of months or more, before the new technical !- pattern is complete. , This letter has been advising 60 liquidity in accounts whose main ';, ,'objective is intermediate term capital gains. If the market reacts to ,.. the 240-236 and 78-76 area WOUld advise using one-third of liquid funds 7 t;, ' in pUrchasing selected issues, thus bringing liquid position down to '40. Would buy only on weakness. Suggest the following issues at the , ;', prices mentioned , BETTER GRADE MEDIUM GRADE SPECULATIVE , . ' Commercial Credit (rO) Fairbanks Morse (44 Montgomery Ward (66 Otis Elevator (35) Vester '.uto Supply (42) Carrier Corp.(20) Balt.& Ohio (18) Fruehauf Trailer (25) Chic.& No.West(21) Lowenstein (30) Goodall Sanford (18) Nat'l Supply (21) Inter.Tel (15) Sylvania Elec.(26) Spiegel (11) ,' Bal timore & Ohio, Chicago & Northwestern Railway and International .',,, Telephone are new additions to my recommended list. Lowenstein was ,, originally recommended at 19 and profit taking was advised at 36. The balance of the issues are on the present recommended list. Downside objectives on some leading issues follow ,', , ' 1951 H!h Allied Stores ; Allis Chalmers 47 ' AlTIer.Smelting 80 , Assoc.Dry Goods 25 , Bethlehem Steel 60 Canadian Pacific 29 , Case, J.L 64 ,Celanese 56 , Denver Rio Gr. 65 Gulf Oil 91 Illinois Central 75 ' Int'l Paper 56 Price Now 43 43 71 20 53 25 55 48 54 85 62 50 Downside 1951 Price Goal 41 Kennecott Hfgh 9 Now 40 Monsanto 84 76 65 Nat'l Lead 76 70 18 N.Y,Central 26 19 48-45 Phelps Dodge 69 61 23 Schenley 41 34 50 So.Pacific 74 65 49-47 So.Railway 64 51 46 Texas Co. 94 89 81 U.S.Rubber 59 53 57-54 U.S.Steel 47 42 47-43 West.Maryland 29 23 Youngstown S. 59 52 Downside Goal 64 72-69 60 19-17 58 30 60-59 48-46 86-83 50-47 40 23-21 49-47 '. ' March 30, 1951 Closings Dow-Jones Ind. Dow-Jones Rails 248.53 80.61 EDMUND W. TABELL ,wALSTON, HOFFMAN & GOODWIN ' This memorandum is not to be construed as ./In offer or solIcitation of offers to buy or Sell any seCUrltiel from tIme to time Walston, Hoffman GoodWIn may have an intered in some or all of the securities mentioned herein. The foregoing materIal has been prepared by us as a matter of informatIon only It is based upon informatIon believed reliable but nol neceuarlly complete, is lIot ;uaranteed .u accurate or fInal, and is not intended to foreclose independent inquiry ,, ……' ,'/' .' -'' ' ,-. ',' , …. ',' ' ' ,, ' \

'– -' -, —…r;T7 I' -. -,,-'. – '-'-,'- jr..,. t;' ;1;1,,; fAil 'I NEW YORK 5, N. Y. PHILADELPHIA 2, PA P', 35 WaU Street t DIGBY 414141 1420 Walnut Street PENNYPACKER S-5977 i'';' – – – . , . – – – – – – – – – – LOS ANGELES 13, CALIF, 550 South Spring Street MADISON 9-322 SAN FRANCISCO 4, CALIF, 265 Montgomery Street SUTTER ''700 I;;;, TABELL'S MARKET LEnER , !' '- '; , '!'I ,.,I' ;' VI II'q',,!!,,1I,i \\-,'\ ;-\ During the early part of the past week, the market drifted slowly ''iLower on small volume. The industrials, at the early Wednesday price of ;,,244 .98, were at the lowest level since the March ,14th low of 242.06. But ,,;, '-;the rails, at Wednesday's low of 79.23, held above the previous week's L I,' rt',,',' ,;, -,,, 'l'; 1(78.65 bottom.. In line with their barometric action of the past two years, iI ii,t,'the firmness in the rails waf a signal for a sharp rally that started in ' ',the last hour Wednesday. By Friday, the industrials had rallied to a high !of 252.22 and the rails to 83.53. At Friday's highs, both averages were ,plose to very heavy overhead resistance. There is considerable supply at f t,;,253-255 in the industrials and at 84-86 in the rails. It ma require some hews development of major importance to enable the market to penetrate the ' ;1',pverhanging stock. \; '; The longer the market remains in a trading area Similar to the , ;','257.06-242.06 range of the Dow-Jones industrials, the more dynamic will be ,,'; ;ithe move in either direction. 4t the moment, an upside penetration of this' I'trading area in the industrial average would indicate a potential of about ;',;260. A downside penetration would indicate a potential of about 236-232 , ';' 'This last objective is somewhat lower than the previous objective of 240- ',;, ;,,236 because the recent rally may result in the broadening of the possible ;,top. There are Similar patterns to the above in the other averages and ,'ln individual issues. !I The direction of the next near term mdve is uncertain but my work ;j', 'iipontinues to favor the probability 1tional top pattern. Both averages that we are slowly building a distriburemain in an overall downtrend Since 1, (' ,the February high of 257.06 and 90.82. Even a mild upside penetrat1'on by , !-;,one of the averages would not destroy this potential top formation. Sharply ( , 1''increased volume apparently would be needed to penetrate the overhead ,,,,7 i,iresistance. Volume indications remain relatively unfavorable up to the , '(present. Thursday's volume of 1,790,000 shares on the sharp upswing was below the 2,330,000 share trading of March 12th on the decline. I., ,' At Friday's close, the market gave some indications of losing its ', 'momentum on the short term upside move. While both averages reached new highS, volume dec lined from the previous day and there were 601 advances if 'l'in individual issues against 840 on Thursday. A-lso, declines increased to 273 on Friday as against 133 on Thursday. This action coupled with the ', ,f'indications that the market is near overhead supply and that the short ;, term indicator is now in overbought territory, suggests caution. ','; ',; I still advise 60 liquidity in intermediate term trading accounts ,;; Las t week, I suggested fifteen issues for purchase at specified prices and t; ;',;;an increase to a 60 invested position if the industrial average reached ;'the 240-236 area. I would not ,follow this procedure at the present ti(lle ;because the rally may have broadened the potential tops. I would remove ;;,the buying advice on the f'ifteen issues mentioned in last week's letter ,!,u n t i l the pattern clarifies. Only one issue of the fifteen, Lowenstein, reached its indicated ,,' ;;', ' , ';' '' !',','purchase price. Lowenstein, Which was originally recommended at 19 and y;i;,the sale recommended at 36, reacted to slightly below the indicated 30 ' ,,, ',cbuyiilg level and is now included in my recommended list 0 ,0, f , 6, 1951 EDMUND W TABELL WALSTON, HOFFMAN & GOODWIN – J ,, , Closings Dow-Jones Industrials 250.83 Dow-Jones Rails 83.02 , i' ThIS memorendl,lm Jt'J\ot to 'b. construed as an offer or solicitation of Offeu to buy or sell any secur.lull frm time to lime Waldon, Hoffman & Good….. mell' have an Interest in some or all of the securities menticrUld here.n. The ,fore90,ng ml!lhmr has been preparfd by IJI as II matter of information only It h bued upon Informl!ltion tfeved reliable but not neuuar.I, complete, is -kot ;uaranleed ./IS, accurate orfinal; IS not intenged to foreclose independent inquiry. – ';7;.I'. –'1;, -,1 — -, – ,.-, . .– – I ;';T,;-,-\ ,-! I/– – –7'- – –

f-' ,-,'1 -I,';J;'-',; ,'-!'–,; Walston.Hoffman c,. Goodwin ' , –,-;—'– c,– -''-r- 1'11 ff /' ,-, ! cy;4mned U/eoe i ,- '1' '-, NEW YORK 5, N, Y PHILADELPHIA 2. PA LOS ANGELES 13. CALlF SAN FRANCISCO 4. CALIf, ';- ! ''-, 1- I 35 Wall Street r DIGBY 44104' ,Z–z, 1420 Walnut Street PENNYPACKER 55977 550 South Spring Street MADISON '31)2 265 Montgomery Street SUTTER 12700 ,.! 1l'! 'Ii./..-, \ TABELL'S MARKET LETTER k ;I – '.-, ,. I n,,-,1 , .;. r ;.,;ol Nervousness over MacArthur's ouster and a fear of a nearby end Z f'to hostilities brought selling into the market early Wednesday and the in- , cdustrial average reacted to a low of 247.70 and the rails to 80.99. The , ;. market steadied after the first hour selling. At the lows, the uptrend ;; tfrom the March bottoms of 242.06 and 78.65 still remained intact. As the tweek wore on, fears of peace appeared to dissipate and, aided by short i covering, the market rallied moderately on Thursday and sharply on Friday i! ';; to attain highs of 255.31 and 83.63. ;';;;, ;'f. At Friday's highs, the industrial average was less than two poin(iS (', away from the February high while the rails were more than seven pOints be— ( low the comparable top. Considering that the industrial average sells fOUIL t; times ,higher than the rails, and moves over ,a much wider range in terms of 'I;, ;,-,- points; this is a considerable divergence. It would appear that the indus –' trial average has enough momentum to test and possibly carry above the !c' 'February highs to reach 260-265. However, it appears doubtful at the mo- –, '-ment that the rail average will be able to penetrate the February high of ;c-; 90.82. ;- .- It still appears to me that, from a teqhnical viewpoint, we are –, ; -in a broad distribution area that may cQntinue to form for some further ; cc time. In some respects the pattern is 31-ping up somewhat like the 1946 ,- – '-, top. It will be recalled that the industrial average reached a high of – . around 207 in February and the rails 68. A sharp sell-off followed. The '-' industrial average rallied to a new high at 213 in late May but the rail '-average could do no better than reach its former high of 68. This was -'c followed by some further distribution at slightly lower levels and the .,.-September break. .' .'' The action of the market must be watched closely on the preseilt L– ',– rally. New highs accompanied by a weakening internal market pattern such , .- as fewer new highs and adva'ces in individual issues and declining volume 1 as compared with the previous advancing phase is usually a pretty reliable i- –indication of a deteriorating technical pattern. As yet, the present phas; ,– of the advance is too young to draw any definite conclusions. It may be , ;,-noted, however, that Friday'S volume of 2,120,000 shares was less than the i– , last heavy day of downside volume of 2,330,000 shares on March 12th. It , -was also well below the average volume of 4,500,000 shares in December and;- r 3,500,000 shares in January when the rally from 220 was starting. ' – From a short term point of view, the advance could carry some- -i;- wha t further. From a timing viewpoint, the advance is just entering over- i- bought territory and several more trading hours will be required before a ;-' short term selling signal can be given. .'-'.,. ' However, this letter concerns itself with the intermediate term ,– .;- of several months rather than short daily and weekly fluctuations. From r i atn inttermdeddiattehtelrdmi pOintAof vdiew, thtiS hard21Y;oaPiPeatrhs tiodbetthiealPSrWopeUrld i; i me 0 a 0 0 ngs. n a vance 0 even ( n e n us r 0 ' be only 6. iHth most individual issues at or near their indicated ob- ''- tjectives, a percentage advance of such a small amount is not worth follow- -ing,considering the risks involved. On the contrary, would rather lighten ; holdings on further strength and build up a buying reserve of 75 in inter…;,,- – mediate term trading accounts. — Large capital gains are made by buying stocks on \'ieak;eas after t– — sharp declines and not by following strength after an already st0ep ad- , ,-' vance. This requires conSiderable patience and ability to ignore the illusion of a perpetual advance. I still believe that a worthwhile buying i; ;- opportunity will present itself before the start of my expected advance to !– —; a level above the 1929 highs of 386. r,, April 13, 1951 Closings -'- – Dow-Jones Industrials Dow-Jones Rails 254.75 83.44 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN ,– '- '- ' ,- , Thh memorandum it not to b. tOndrl/.d a. an off.r or solicitation han an Int.r.st In some or all 01 the Itlel/rltil. mentioned h.,.ln. of off.rs to bur or s.1I lhe 'oreQoln; material any s.turltiu, from tim. hIS been pr!pared by til to tim. Wahton, Hoffman IS ,a matt.r of Information o&nlyGooItdwIsinbameildy ,,' !t upon information beneved ,enabl' but not necessatil,. tompl,t Is not u.,anleed a, accurate or fInal, and Is not Intended to for.tlose Independent InqUIry, !4 f- r';; ';I,,,!JI,';r7, ,i,; ;''7;/,,71';'; I,';,,; -I ;t',;'dtl't;',;'5' I'; ,;,1,;7' ;, ; 1/';, ;',;'Y '; ,;' ,- ',', –'\ ..

— Walston. Hoffnton 6- Goodwin ,0 ,' ''.'' , ',' tfmed a/ece 't't '- NEW YORK 5, N. Y. PHILADELPHIA 2, PA. 7,,,..'1 35 Wall Stroot 1420 Walnut Street ,,;', DIGBY' 4.4141 PENNY'PACKER 5-5977 ————– ,t TABELL'S MARKET LmER LOS ANGELES 13, CALIF 550 South Spring Shent MADISON '-31)2 SAN FRANCISCO 4, CALIF 265 Montgomery Street sunER 1-2700 i.,I, .,-'',-.,t ; Under the leadership of the oils and chemicals, the industrial l average reached new high territory on Friday at 259.95, and appears headed \'1 for the 260-265 area mentioned in last week's letter. While volume picked 'C, ; i/ up on Friday to reach 2,120,000 shares, it still remains well below the average turnover of the January-February rise when the industrials topped ;,' ; out at 257.06 and the rails at 90.82. ,- The rails, which have been an accurate barometer of market action ,' in the past, continue to act badly in comparison with the industrials. With, ', the industrial average above the February high, the rails are approximately'' i', seven pOints below their comparable high. At Friday's high of 84.07, they'- 'i, are still below last week's high of 84.83. ', ' An increasing number of advisory services and market letters are ,,,, advising the purchase of airline stocks. United Airlines is perhaps the \, most widely mentioned. As our older readers know, the airlines have been ' consistently recommended in this letter since 1949. In January, 1950, the ,',airlines were nominated as our favorite group for price appreciation in ,1950. At that time United Airlines was selling at 14. I had previously , , 5mentioned it at 10 1/2. Then the airline stocks had few friends. They were c, ',– considered extremely speculative and without appeal. Few trusts included ,airlines in their portfolios. However, throughout the 1949-1950 period the , airlines were building up strong technical patterns although they did ,, ' little marketwise. Now United Airlines is selling at 30 and is extremely ,' ' popular. I concur in the thought that United Airlines will eventually ;, sell at a price considerably above present levels but it is interesting to if; ,, note the potential difference in percentage appreciation from present levelii' '' as compared with that fro', the early 1950 price. Suppose United Airlines !' iequals the fifteen-point rise from our recommended level of approximately E,; 15. The technical pattern indicates that a rise to 45 is entirely possible';'; over the longer term. If this occurs, the purchaser of the stock at a price; ,; of 30 would show a percentage appreciation of 50,but the purchaser at 15 ''' 'would have 300 appreciation or six times as much if he had originally in- ',.c; f',' vested the same amount of money. ,' This illustrates the point that large capital gains are made by t' ,,, buying undervalued situations at low levels before these issues have gained' – public popularity. This sometimes requires considerable patience. Quite , ! often there will be a period of prolonged backing an6 filling before the ' advance starts. Patience was required with Reynolds Metals at 20 and Sea- ,-' board Airline at 15 to 18, to mention only two of our recommended issues, V but the ultimate advance was extremely rewarding. Even at today' s high levels of the general market, there are 1 numerous candidates for eventual long term appreciation for the patient holder. They will be mentioned in this letter as conditions warrant. One such situation previously mentioned is the motion picture ,' group. There is no doubt that these issues are currently unpopular and the ' ,,reason is, of course, not hard to find. Television has caused a sharp drop' , in movie attendance and the future of the industry is in conSiderable doubt,' ,However, current pessimism may be greatly exaggerated. It is entirely possi;-' ; ,'ble that the television and motion picture industries will eventually be -' ;7allied instead of competitive. It would seem a logical development over a ',; period of time. The technical pattern of individual issues indicates the 'i, ,,,possibility of such a development. These stocks have held in narrow trading; ,; ranges for over three years and have formed substantial potential accumula-', I' tion bases. They appear thoroughly oversold. ', For the patient holder, I recommend the following issues. , Stock Price 190 Earn. 150 Div. Yield ,;;-' ''- lColumbia Pictures 13 2.58 .75 5.7 ', ParailOunt Pic tures ;20th Century-Fox 23 21 2 .67 3.16 2 .00 2.00 8'.7 9.5 , , ,!Universal Pictures 10 1.14 , Warner Brothers 13 1.46 1.00 7.7 ,' Again I repeat that these issues are suitable only for the patient ; long term holder interested in substantial percentage appreciation. For ,-,those interested in trading turns there are undoubtedly scores of more in- teresting 1SSlIes if yOll can fjno them '; 1 n! -, !'\ A Pl Iblt em .,dum iaileln In upon Information 'l' it. beleved b. con.trued as an olfer or solidtalion of the securitie. mentioned her.ln, reliable but not necessarily complete, Toihfseonffoofetrne;guotoainrbgaunymteaeotdrer.,ienalllahd.J,ll.! \!.Ie!'iJ)..tRl.)ltel..J!i9!1tFelJ'odnmd1,.'(tt.t.i..1.110p. PJaHJ..3&t,l..Mi..r..m.i!iPon.llHtWilratlos&ftfonlon.rfoHrmoflflDmtlWoannfo'&n6l,(IGe.o.no11dtwI,iinnqbUlmli!reaydy , ' '; ', ,..',' , '-' ' ' ',' .. i X;ft,-f,7/tl'7t.,'/f,Bf!fYT9il\f'J,7IE ;t '/ ,I'., ' ', ' ',7,- ,!,;, ,i.f!.;,'!'; '; ,9;,';!; ;,'' '', — , ',– '..

, Hoff &- Goodwin -'t;-,''',,'',,0;,'' !,,-''''''''''!,'''-'',''''', ''''r'''''''','',',,' '.W1O,I StOl ,1 l . 01011 ,,',''''''','''' 0,, ,.''b,,,',,'-I,II-,,-', i.n &4mU!-Jz& OU f.-i TA'AET L;''';j; NEW YORK S, N, Y, PHILADELPHIA 2, PA. ., ;'''' . . '.;.. ILOS ANGELES '13, CALIF. SAN FRANCISCO 4, CALIF, i'ij ! The advance of average has continued into the an- f ticipated 260-265 area. The average reached a high of 264.44 011 Friday 1' ;Tle ra11G succeeded in betterirg the April high of 84.83 but, at Friday' s ! high of 86.51, were still cor;siderably beow the February high of 90.82. ,,' i'; The present advance into new high territory by the industrial i,, aver82;e, gii.'es us an opportunity to compare the internal technical strength; if',' of. the Jr.arket at present with that of the January-February rise. ;; ' So far, the 2vicenc s at hand is unfavorable on a nUlaber of CQu;ltsi, ;';;', Of the fifty-two group averages that I chart, only some eighteen or nine- — teen have bet cered the February highs. The balance of thirty or so are I still below the previous highs. This indicates that the breadth of the ;', V ;-',market actio,l is not strong and that a relatively small nUl'ber of groups , ,;are responsible for the rise en the average. , ', Volume indications are also unfavorable. The volur.le on the L' present advance is cO;lsiderabl,' below that of the January-February rise. ', ,'; In Ja1.uary there were seven days during which volume topped the three , tmilli()n share mark and nine days in January-February during which volurae c',' \'las f'lore than two nillion shares. On the present advance there has been ,.- ' only three days in which volume was slightly more than two million shares. ,,, k, The same unfavorable action is noted when new highs and lows and ;nuwber of advancing and declining issues are compared with the totals of the ,Januapy-February rise. ' ,, All of these unfavorable comparisons suggest extreme caution .The market must be given more time to prove itself, but the evidence at hand ;,i'iat the moment confirrs my thoughts that the market is in the process of ;' forming a broad distributional top. r I'', The growth stocks have been among the leaders in the recent rally 2rhis type of security is eagerly sought by wealthy long term investors aDd ; ; institutions and trusts. 'rhe r.lain characteristic of growth stocks is, of i' ;'' course the continued growth in earnings and price over a period of years ,,' ;,regaodless of gene,'al economic conditions. MONSANTO CHEMICAL is '.,1 / ,, ,'example. In 1929, the company earned 481 and sold at a high of 13 3 4. ,' ;' vii th only slight i1!terruptions, earnings have steadily increased each year. ;! ;;; 1950 earnings were 5.7 and the recent high was 89 1/2. This is in con- ; '' trast to cyclical stocks such as U. S. Steel with widely fluc tua ting earnings' deper.ding on general business. 1929 earnings were 7.06 on the present f; capitalization. There was a defic it of 1. 26 in 1938 and 1950 earnings 1'Ieret' 1 7 .23. c'' ,', The fear of the possible effect of excess profits taxes held back,.;, 'the growth stocks until recently, but the release of first quarter earnings ,- ,showd that, despite a much heavier tax burden, the growth characteristics ,were still dominant. This has been the reason for recent strength. ',' '; On the unfavorable Side, the great demand for this type of issue ;,; , ,has resulted in their selling at high price-to-earnings ratios and at 10Vi , , , yields. j101rSANTO, at the present price of 88, sells at 16 times 1950 earn- , fings of 5.37 to yield 2.9 on the 1950 dividend of 2.62-/,. Most of the demand for growth issues has been in the field of ,' ,. chemicals like ronsanto and Rohm & Haas, ethical drugs like Pfizer and ;' !,,,'Merck, and specialties such as Minnesota Mining & Manufacturing.Neverthe- ,less, not all the growth issues are in these few obvious industries. r ' ; one is willing to seek out Situations, there are issues in less select ;; -conpany .' greater that are obtainable at greater yields with the possibility of eveD price appreciation if one is willing to have patience until the ;'t ;.' general investing public realizes the grovlth, potentials. ' , Some of these issues are in industries not usually associated with ,.., long term growth but rather with cyclical characteristics. For example, in V, i,'; the rail field there is Min,leapolis, St .Paul & Sault Ste Marie (Soo Line) ; j,.selling at 15 to yield almost 7. This road taps the rich Alberta oil and ,)gas fields where there should be tremendous growth in industry and popula- '' '.' tiOI1. The growth of the south and west has already resulted in sharp price / increases in railroads in those territories while eastern rails have done ;', ,' little marketwise. Even a feast or famine industry like steel has developed,' ;' ;grovlth s.tuations like Ganite City SteeL Utility operating companies in f ;'grO\';th territories alsc have interesting, if less spectacular, price appre-;.;, ciation possibilities. EmmND W. TABELL ' ! ; TVl -. 't–. '-jl -. 11 m,lttor d not to b, conltrued III a offer or solicitation of offen to buy or II m al n, edWin may -; t- hive olin 1nt.r,,' 1 loml or all of the Ilcu,I,111 merdionld hr,l th. forlQoinQ meterial hal b.. prepared by 1,11 a, I matt.r of Information only. It is bued -. t)7Jfuipton7!In;f'or'mfIa!ttilon't4b1i,l1I,eiv'eId;At;7liab;'l1e,,butfn;ot7Tn-ecelWftirily'ico-mZp-l,t.,-Ist..n/otS;.uariaJn…5d-alr'a2ccuroa.t.forffiinal,/linSdi'snotintenld;e'dtofo!rf.clao;s3eR;Itndr,p,endren1t'inquir,y;.; … .' .. '

, –,-, a l s t O l l . H o f f r n a l l Goodwlon!.J',-',;I;b'''4l'i,I\'Ii.,.,lr''l'j'l' ,,'.,-r-',-, ri1; ' .l l,T, '. 'c.'.. &'&J4;t.e-;d o/eo 'c.''-.''..'''' ,''',–,-', '-'C,'-'–'I','',,,,(2-/-'.., J , I.' fi'1;i NEW YORK 5, N, y, PHILADELPHIA 2, PA LOS ANGELES 13, CALIF, SAN FRANCISCO 4, CALIF, f tiVJ, W;; 35 Wall Street DIGBY 44141 1420 Walnut Street PENNYPACKER 5S977 550 South Spring Street MADISON '232 265 Montgomery Street SUTTER 12700 f!J!. v TABELL'S MARKET LEnER 0 t\'i 8I,' itliff! o;;,;,', This weekend I am leaving on a four-week trip to visit the Calif1'i ;'' ornia, Oregon and Washington offices of my firm. During that period, my e,' q letter will continue to be issued although it will be written on the West iifi. I,ICoast . ;j, Virc';; op i n It . ht be appropriate at this time to restate my general marketi;', I i For the longer term my thoughts have changed but little from my I' I; orecast of 1948. At that time, I stated that the stock market appeared to ;5 i;,; be in a long uptrend similar to the war and post-war period of 1914 to 1929'-; r' The present uptrend started in 1942 and, if the same time span were used, fit, ', would continue to 1957. Such long term moves obviously have their inter- '! , ruptions. Usually they consist of five phases – three of advance and two t, fi'';. of decline. The first phase was the advance from 95 L1 the Dow-Jones in- p',If dustrials in June 1942 to 213 in May 1946. The next phase was the decline r,' from 213 to 160. This low point was tested each year from 1946 to 1949 , ,;. In my 1948 forecast I expressed the opinion that the next advancing phase ;; (; w0uld carry from a low of 160 to about the 250 level with 5 leeway either ;, ti side. The advance would be followed by a decline to about the 200 leveL ,c J, After that, tnere would' be the final dynamic advance phase that would carrI.; ,;; the average well above the 1929 high of 386 to probably 450 or higher. I;;; seet,';,;J no reason to change the broad outllne of this patter1. '-1';C ;; l'tHLPLeDt aQ,;l1ill.j,so,iU-lIlY-2pJ,,lIliQJ;;,,near.,ingitsendc.Whetl1ec; 1 ;'\ / ti) wut hnhegerteihdneidcr tuatshbter-i'Iraeal'siaTnwas piwllriTmlaf'lrnladylrT-sys.o!mgsole1mw1eXhwalht.2'aBa'tb-olallvc5te9ivs,elafi'sl;t.ie;wFee,JekthiIeSPiar0t.noYgphti-ogefrhm2'6o-1ftt-.rglfOeJ-f.l,lo.i2ri3iss l Ct, ';!;''ii on,ed,–ll),-lll(()Ri, the markeis, only.n…E!ieearlY3tagesofform- ln a dJs.1L-r,i'!111tlR!aU0jl,.rCr5ayrequire conlderbletimeMandl!ide , ,fYuctuations in a broad twenty-flve-point'range in the.. industrialav,erage r; bore-TnetQJlJ-compieted,–The downside-GilpEcat1Oris of such a pattern h,i ; it! I!;, ; are not-predictable until the formation is more complete but, in my opinio., ,', the decline will be relatively mild as compared with the 1946 or 1937 de- ;'.; I cline, both as to price and as to time. The 1942-1946 advance lasted four ( -' years and was 123. The 1949-1951 market has advanced 67 in a two-year (,' ,; period. The next decline will most likely be about in the same ratio \';;1e;-, -' compared to the 1946 decline of 25. That would mean a decline of about ;, , 15 or 20, or about forty or fifty pOints to approximately 225-215, Of K ,', course, a broadening of the top may occur later but that appears to be all (7 ' that r but, is indicated at the moment. The duration of such a move is guessHork as a guess, I would say it would occupy a time period of six months f/ , ' to a year. ;' , ' This does not mean that all securities will decline 15. Many, ', stocks have had little price advance during the past two years and are not ', ;' overbought. Their decline would be comparatively moderate. There are other i.,' 'I issnes that could even advance moderately during such a period of re-ad- ,' ',' justment. The most vulnerable issues would be those that have advanced iI ;;; sharply from the 1949 lows and are in need of consclidation and re-accumu- ;',,- ,' lation at Imler levels. 'c\ 't'o the longer term investor such a decline as ewisaged should ' ;' be of no great significance and hardly warrants disturbing sound holdingc. l' ,'; New funds, however, should be invested only in defensive-type issues. For ;;/, those interested in intermediate term capital gains of six months or so, ,\CI ;'';, the pattern has much greater significance. While some tssues may work ; ,( ', temporarily higher, it would appear that most will be lower six months ', ,, from now and, therefore, the greater part of funds should be liquid await- ' J ing buying opportunities. For the short term tradel', it would appear that , . the market is no longer a one-way street and a great 6eal more caution is , ;,'c, necessary ..\ /,,' ,,1',' ,',i; May 11, 1951 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN , Closing Averages Dow-Jones Industrials Doy/-Jones Rails -. ,, ' ' .7' Thh mlmot.lldum is not to b. conshUld III an offlr or solIcitation of offlrs to buy or sell any Slcur,tiu from tlml to time Walston. Hoffman & Goodwin may havi .n Inflrut j sam. or all of the slcuritils mlntlOld hlrlin Thl foreqoinq materIal h.ll been preparld by us as a matter of informaholl only It is basld , ', upon information belllvid rillabil but of IIlcessarily compllte. is not ;ua,anteed .!IS accur..t. or filial, and is IIOt i'ellded to foreclose Indlpendlnt inqUiry , , '!';'-'! ;'\,,'J((I) ;K-';,',; -;t,,, , ,N ,. -,', , ', , –' ''–,,' ;-; '' – ,' – ,' , -;.- ','.,, ' ,-' i'- ',;'-

NEW YORK 5, N. Y. 3S Wall Street OIGSY 014141 PHILADELPHIA 2, PA '420 Walnut Street PENNYPACKER ssm LOS ANGELES 13, CALIF. SAN FRANCISCO 4, CALIF. SSO South Spring Streot 26S Montgomery Street MAOISON '22 SUTTER '2700 , Last vleek the market action gave added evidence to the thought .; that the market is building up a pote;otial top patter!. As yet, the , pattern butional is incomplete and more Hork may be needed to enlarge the distritop. lli th the exceptio', of steels and motors, comparatively ;;/ f-; S (,;1 few issues have formed broad top patterns and continued backing and fill- ',,,;,, ' ',,' 'i.'.i.1is ),' a broad trading ra;1ge bounded roughly by 245-255 action should present very favorable opportunities appears indicat2d. to switch out of 1 issues with unfavorable patterns into those with excellent long term potentials. ',,' ; A few issues of this type are noted below CARRIER CORPORATION was origi;,ally recommended in this letter ,'at an equivalent price of 10-11 for the preset stock. It is presently ' selling at 22 1/4. O the basis of the indicated 25Ji quarterly rate, it , is yielding 4.5. The divide!1d appears conservative 1'i'e compared to earn- .. ings of 4.54 in 1950. The stock has tremendous growth possibilities. ,'It is the leading indeper,dent cOffipany in the air-conditioning field. ' Its products range from self-contained units for individual rooms to – industrial units of 1200 tons. While its 101lg terrl growth potentkl is ,' based on a peace economy, it will do very well under the present defense ' ;' econo;ny. If large air-raid shel'ers or undergroud plants were necessary, the denand for company 's produc s would be tre!1endous. Finances have ' been gradually inproving. Net 1'iorking capital has increased from 4012 ; in 1941 to 18.12 in 1950. This stock has formed a very strong base , pattern in the 12-19 area. The upside ) tration indicates an initi2.1 ',; 23-25, which has been 1' -Jo.ed, to be followed by a eve;tual 45. Would -, buy on all mip..or price c.ips. ! ,; COLUMBIA GAS SYSTEM, at 13 3/8, is an excellent natural gas growth situation in addition to being a good defensive vehicle in the ,-, prese ; o –;10mic uncertainty. The corr,pany is one of' the nation 's ,' , ' large ,stural gas systems. It serves, directly or throgh sales to ; independent distributors, over two and a half milliop.. cu, tomers 0 It , operates in Pennsylvania, OhiO, West Virginia, Maryland and Kentucky. . It serves such populatior; centers as Wasr.ington, Baltimore, Cincinnati, ;', Dayton, Richmond, Columbus, Toledo, and Harrisburg. Income in 1950 in- ,t r ' , creased to 1.18 per share from 84Ji in 1949. Profit for the 12 months ended March 191 improved further to 1.28 a share. And net for the , season211 – ooC. March quarter of 1951 rose to 68Ji vs. 58Ji in the March ,; 1950 quarcer. The dividend was increased to 20Ji quarterly in the first ; c quarter of 1951. With the demand for natural gas increasing, further ; 'earnings expansion is indicated. The company has spent 200 million in ;, expansion over the past five years. The technical pattern is good 0 The f,;' stock has held in the 9-14 range for 3 years 0 An upside pe e';ration ; would indicate an initial objective of 20. The stock may be slol'l but '– it has a very strong potential pattern. Buy on all minor price declines. , ,' ,t LAr-iBERT COMPAl\'Y lias origir,ally placed in my recommended list '' at 22. It is now selling at 25 1/2 and yields 7.8 on the rate indicated ;' by the latest quarterly payment of 50;1. 1950 earnings were 2.94. j,et '; for larch quarter of 1951 rose; to 1.14 vs. 83Ji i;1 the Jllar,,!'\ quarter r', of 1950. Stock has a good tax base. Major produc t is still Listerine , but company has diversified by entering into moulded plastics, etlHcal ,;, drugs and toothpaste and brushes. The stock sold at a high of 68 in ;'; 1946. Technically, it has built up a strong base pattern in the 17-23 ,; range. The upside ;Je!tration indicates an initial 28 followed by a , long term 400 There is no heavy supply of stock until the 40 level is I, reached. f' ,– – . ,, Buy — on — – minor p r i c e d i p s .- -.- — …. – ——–;;;;. ', May 13, 1951 ;,. Closing Averages Ther e- i s good–. — sportat'.5-2 – – …-. —, – 0 EDMUND W, TABELL VJALSTO!', HOFFMAN & GOODWIlJ 7-'- ,, V; Dow-Jones Industrials 250.10 Dow Jones Rails 70 .l'l / Thll memorandum il 1I0t to b. construed III' en off.r or solicltllltion of offer, to bu, or HII any IIcurltl., From 11m. to tim. Wallton, Hoffman I Goodwin mllly ,', hn'. an lnt.rest In som, or ell of the Hcuriti., mentioned herein, Th foregoing material ha, b..n prepared by u, a, a maUar of Information onl,. It Is baHd ;. l. , , upon information belJe…ed relleble but not nl(lIllIrlly complet., i, not ;uII,ant..d a. accurate or final, and I, not intended to for.clos. 1ndependent Inquiry. , lff;'t';,,,'f(t,!7/l..!m!i,!5i!/1rJ3b,,t'I, ,' f.','-..' ,'' ,'.' ' l.'…,,', '','.', r ,!,, jJI'f,'Vj';F(';j;..;'\!L''.-,';', ''''.J. ''

— —-. – – .I—————— . , .. &-,I Walston.Hoffnlant;;..,;c',,.,.-,,,,-..' .' …c., … ,., Goodwin, ',' .,'cc, .—.. –'i\ ,'.!., ..! ,',I NEW YORK 5, N. Y 46;u-d (/;c PHILADELPHIA 2, PA LOS ANGELES 13, CALIF SAN FRANCISCO 4, CALIF, ,;;,\ 35 Wall Street , DIGBY 44141 1420 Walnut Street PENNYPACKER 55977 I'',It')l 550 South Spring Shellt MADISON ,.22 265 Montgomery Street SUTTER 12700 ;l',, TABELL'S MARKET LEnER ;– , fc;( 'i',e l'ails pene'Jra'ed the lViarc 1, 1951 low cf 78.G5 on 'lay 21 \Del I,-then (ecl.ined vO an nr2.-d3.y leN of 75.03 '.n IVIar 24. T'lis seels .. 0 con,,.f'ir t-le sCand previousl;' taken bf his letter th2.- 17'2 are i11. an in,er.e la.e dcrn1rend. The indstrial average fell co a low point of 241.S cn i,,;,'he S8 e day, \lhere it jus t abou L held at the Marc \1 19'',1 bO'cte of 242.06. ,)l'he f2.ct ccat 'he wee'.'s decline stopped a aoout ,-le '-arc', 10 lor l;e ;,,''nC.usr21s no.ic….;es -..re pcssibll that there -.aT oe 2.. s;lor te;' —11j; . of se,. e i1a cure. 'I';le aru;.lent in f2.vor of a short cer; ra.lly is basecl cn ;-…;he ;c1i;3.1 cbservc. ion th2. so.e stoc!S have nc. /e.. fCl'fed ver-;,;- broad ;..'p f r' 'a c.l.ons. or exa.ple, sO;'e furt' .er '.'lark appears to be needed ',c , ,,''. t5 \,.br,;C'den out tcp pa'cte'ns 'n s,ech ;roups as oils acyl c.e.1-icals. On ,he .er hind, groups such as steels, o'cors and papers bave already b'lt ,,1-,p rG.Ci1er subSvanClla t cps., ,' ,c. There is a probability, 'chen, that the rlarlcet ;i'l1t h01d for so;' e ',,, '!f'!.rTt'11eI' tir.1e in the 2'f2-250 range. However-, I believe '. hat even cta 1 1' the 'T.'h rCl lCjs l'L11 be broken en tle d01'lnside rherefc'e, \'Jou1c s.cvise t,;'n ,c.UvQ.lt,.f)e of 2ny strenst-l to lishten hold;ns 2nc. b'lila. Ep purchasLr, )'p ,er 80 as t talce ldvntage of future sell-oft's in t;le .J.rket. Lcol2.n2 P.I e.l., 1..p8rtant slpport points lc …ld be 235-232 f-r the !..ndustr'Lls ..ild ,.,..I. , -I,'-U- f vr 'Cj .-Ie ral'1 s. , ,l ,,, L.s'ced beL-,vl ..re additicnal stac's 1li'011 e,;ccellent lcng ce'.' 'po- ',; y'c''.ls ;,;; .' , RADIO CORPORATION OF AMERICA is the leade' 'n the elec trcnics i'-!.f.eld. I originallj' reco.1Lended its purchase in' the 10-12 ran;e .nd advised profj.t-t&.lins a)c 21-23. Since -that ti;(e tle stcc reacted t'e 15 2nd '1rcllied bacl' tc 21. The current price 's nO'J IS l/S. The f!..rs o..arter i. .,'' ;',e'.rnillEs for 1;'51 l'ere Lhe best for that period ,-n the histcr…- of tle COl.'- ,.. iP2,T. Earnins -Jere eqtal to 30 cents a co,',on 3hare cc.pared 'iLch 75 )ntE last year. Erninss ;or all of lS50 totale 13.10 and 1.50 !n divl- .l,lencs 'os paid. ''e ccp2.nT \'Iill be able ;;0 ear, 1.50 to 't'1-2.00 il si'la'e ; , ;,; ef'cr'e ecess pr0f'J.ts ta;es apply. It is iJelieved t'lat ul-;i.,.,tel; the RCA , 1,,1i-,, 'ste . (f' colr.., television iLll be sed. T-Ie co; ,p8.lJ.. ene,aE,es .Ln ' all ph..ses .;' ;, 'rJ YaC'. v, teevLsi -n and related fielcis an-. 't is ccnt.Ji'Ltosll' addine; ne1 . ;,, ,;.proG.'J.cts in tole electronics fielc'. In addition, of cCLrse, '-t owns 'ce 'c (i.u;ional BrcacJ.Gast Ln.' Co;pany. I believe -chat the stcc is nildin6 'jpa- ;! r(,\el';' strGn2; re-acru.ulation pattern. It is posoible t-,at it j',iay be 3.vail- i;ble at sliGhtly lO\'ler levels. I Vlould. Cl2(aiE add it tG r..- r2co;,ended list ;,'; ',i'.f i t i.s available in the 15-17 area. of!''; I'l0C;OPOL.4, H!C (45) for;,erly G&lvin M2EufE.cturin;, is one I,;, the;-.', U;f'ciur lartest television producers in adcJ.ition to beip6 the ost i1 portant ,,'Cactor in aute..otile radios and tl'lO-way cor.w.nicati.cI! syst0,c,S for police 'ri;'ars, rJil,'ays, etc. Also r.anufactures electroYic equipr;,ent vlhich allei'is (;e. 'ote c;or,crol cf ,.eters and valves. This can be ,sed by pipelines, ,i.,t ili'c ies, etc. Earnings f0r 1950 ',Jere 14.56 a COJon share on the hCOj O!JC shares of con;-lon stock now outstanding. For the Marh qlearter of , ,- QS5l oer-share net ca',1e to 2.92 after heavy taxes againflt 3.21 in the i,;nrst' quarter of 1950. Motorola has esti!1ated its EP'I' exe;-.1ption ,t 7 .50 '-'2 sl- 2.'e after ncri..al and s''rtax, based on the present tax 12ViS. D,-vidends ('bf ;J.f.09 \Jere paid in 1950 and the stoc' is preser'ltl' on a regular' 2.00 ,', '\J.ivic.nd basis. Over the past year and a '.1111' the ste-c! has had c'ide ;lra,bicns 'in price tetween approi,atel-' 31 and 57. It has re entlc' opoen c.t , !.A.m r, dOllnside of the 52-47 trac1in,; range and there is possible dOl1Dside Ln6ic.3.tion of 0. return to the lLO-35 rane. If tIle s)cocl is availab'le ac this-, ,;level I 110uld advise its purchase. The LmC 'Ger;-; techn'ccl patte'rn is good .;.; i;and sJ.ggests much higher prices over the longer ter;l, It is one of the i';fdore inportant cOll'panies in the elec tron1cs and television groc.,p 1'lhich, in ,. fJ1 c! inion, Wic0..th,,eadi'EUPD,'.1eTnABeJE'LoLlarlet,se. ' rt-t' . 'I'- …. .U1U.J W rna'i, C .3, 1S'51 viALS' 0;.-, OFFiIlAN & GOOman , l'b ,I 'losi.l. ,…J es i;.. DOI-Jenes Industrials 245.27 iJ ,–……D…C…….\-J.,.-on…es,–R..,a-l-l..,S–;–. .7-.-L- .;-.'—;—-'–;;—–;;;;;—;-;;;;;;-;;;;;;; T l,;I/,;h Thh memorandum Is not to b. hll…. an Int.rest ill some or all condruld al lin oH.r or solicitation of the ..curiti., m.tio.d heteln of offen to buy or 1111 Th. foregoing material any hal b'eIecnuriptiresparFerdombyt.imUIe to time Wallton, Hoffiln .111,11 matt.r of Informatl & Goodwin may only 11 IS. b,ued ,,I UPOII Infotmatloll believed rellabl. but not neulSarily complete, II not uaratllGd III accutate or final, and Ii not Inteded to foredose Independent Inquiry f.\7hf,(;,'' ..'t,'Y\;7,'i'T',1.(-';.'—-.- .' / ';'i, 'L .. J.;' .', L . ',,'';.,'''(,-'t'-'- '.' '.'/', /

— ——————– Walston Hofflllan c… Goodwin.–,,,',',,,,,-,-,.' '-,',,,, ,',''' '-,-,– ..; ',,',,,–'–,'co,' .! I, r( , ' 7,,-,, 1,,1,' , ,',', , ,!';,'ji; o-p,r4t!UN2 c/eo ., Ii,,;; b;;-t NEW YORK S, N. Y l t I 35 Well Street PHILADELPHIA 2, PA 1420 Walnut Street LOS ANGELES 13, CALIF. SAN FRANCISCO 4, CALIF. 550 South Spring Street 265 Montgomery Street ' – ,01 ' '\ DIGBY 44141 ;''\(, PENNYPACKER 5S'n7 ;l5; TABELL'S MARKET LETTER MADISON 9232 SUTTER 1-2700 I t' , , '- . ii,; At Thursday's high of 251.68, the industrial average had recovered f',', kpproximately ten po;ints of the tllenty-two point dec line frol'1 the year's , i' ;'high. This should be a sufficient technical rebound. The very heavy supply !,,,ar\elaeari-tertmh e 250-255 advance. ra,;e most likely will prove to be a barrier to further If the market spends some time in tLi range, it Hill ',i i, ('9roaden the potential top formations in individual issues and in the general,', nlverages. VThen this pattern is completed, a clearer idea of the downside , l)jeC'Gi ves and buying ranges will be available. ,; f, At the moment, the next important downside resistance levels are at ;(235-232 in the inQustrial average and at 72-70 in the rails. ItIould not , 'irollovi strength but, as the decline will be extra selective and some stocks – jTill most likely reach their lows before the Generai–market j.iould-use pe- 1;' h(Piods 'of weakness to buy selected issues lith good longer term patterns. i';\ fevl issues of this type are noted below. ;X, ,/ k; 7RUEHAUF TRAILER is the \'Jorld' s largest builder of truck trailers, J.950 earnins totaled 5.59 a common share. 14arch 1951 quarter profit in,i,treased to 1. 57 against 1. 03 a year ago. The common stock has paid con- f,i, ,t',, ;'''secutive dividends since 1934 and last year the company paid 2 a share (-plus 20. in stock. At present price of 27 this affords a yield of 7.4. , 'Xhe stocle was originally recommended at the equivalent of 20. Fruehauf .;jeached a high of 31 late in 1950. The issue has an attractive technical d,'ipattern and indicates higher levels over the longer tern. Would buy on ,,,I,-,'- 'L1inor price declines, Our Research partner, lIr. H. J Soher, recently \1risited this company and copy of his report is available. h,l'', HALL PRINTING (17) has held in a narrow trading range for the last !'four years. It is priced eight pOints below the 1946 high of 25. Earnings ,; ,or the fiscal year which ended 1arch 31, 1951 have not yet been issued 'tlUt are expected to be around 2.50 a share. Hall earned 2.70 in th'e fis- )ical year ending 1948, 2.88 in 1949 and 2.43' in 1950 fiscal year. 'rhe ,, l'tor'lpany's 17 million modernization program is nearing completion and ;,',!Jhould result in increased profit margins. Hall is one of the leading ;/ (tJrinters in the nation, printing catalogues, magazines and pocket-sized ;' ioolS. The volume of this last item increased 115 ,from 1946 to 1949. Stocle , ),1s forming a very strong accumulation pattern in the 12-19 area. An upside Denetration lIould indicate 28-30. Would add it to my recommended list on ' ,,'minor p;'ice dips 0 There is good support at 15-16. A few days ago the ,',' !;'quarterly dividend rate Has increased to 32 1/21 from 251 paid in preceding i9.ue.r'ccrs. The stock will sell ex-dividend the 32 1/21 just voted on Jun 5. ;;;,Yield is over 7 1/2. Our research staff issued an excellent three-page ;;,, 'report on Hall in February. ; INTERNATIONAL TEL & TEL, (15 3/8) is a speculative issue but offers . ;-the possibility of wide percentage apprec iation, 1950 earnings were 2.38 i', e'''' share on a consolidated basis, the best level since 1929 when the stock 1,, i'sold at the totally unustified level of 149. It is selling at little HOre ,', n.than one-third of its 42.72 book value and about half its 1945 .high of 33. large proportion of its earnings are derived from foreign countries and ),'re not subj ect to excess profits taxes. It is a holding company contrcilljl; ,' tl) telephone units in South America, the West Indies and Shanhai, (2) ; radio and cable circuits mostly in Central and South America, l3) equipment, ' !,companies in U.S. (Federal Telephone), South Ar,lerica and Europe. It also ,controls Farnsworth-Capehart television and radio. Backlog of manufacturing ',',orders in the United States alone recently stood at '160 million and 85 tof this was Government business. Foreign orders ilere substantial also. iConsolidated earnings for March quarter of 1951 rose to 321iilli0n,.,or-a-bout581 a shaI'ee-aga;inst a ,share, in, the an estimated 4 first period, of, ,-.,' t;1950. Stock is a speculation on peace but also has defense economy poten- t'c' ,tials. Technically, the stock appears attractive on price dips. The ability , /to reach 17 was constructive. The stock could react to the 15-14 level ' Ilhere I would add it to my recommended list. There is an upside p,,'cential of 20-25 i!1 the pattern followed by a later testing of the 1946 high of 33. 'r, !;,June 1, 1951 EDlIJUND W, TABELL ;;, Closing Ind.Average 249.33 WALSTOiJ,HOFFMAN & GOODWIN C '' , ;J;;QJt1ijgduaaUtoVeeJf,aa;fi an o(fl'Jit&Cltation of offers to buy or SIll any I.Cuntiu From t.me to lime Wablen, Hoff,,, & GoodWin may han an Int.relt In 10m. or ,II of the (urme, mentioned her.in. The forlgolg material has b.en prepared by us 'I II maHer of information only It is baled J..i.!J, upon In'ormation believed reliable but not nlcen.,ll, complet., Is not guaranteed al accurate or final, and IS not Intended to foredose independent inquiry ;';J,;,,/,'!,,'.., -''';,\;J–;—..'// -,'-'J',,',!-,–,-, , 2J -..- , — ,- ,'-'–'—..-..'–;'– ',.r-, –, ';\\