. -,-; — …' , \'Toiston.lloffmon &Goodin , ,I NEW YORK 5, N, Y , 35 Wt!l1I Strollt PHILADELPHIA 2, PA 1420 Walnut Street LOS ANGELES 13, CALIF SAN FRANCISCO 4, CALIF 550 South Spring Street 2b5 Montgomery Street ,,,;,, DIGBY 4-4141 PENNYPACKER 5 'n7 ,,, TABELL'S MARKET LETTER '. ,,' MADISON '3232 SUTTER 12700 RISTENSON DIGBY 4,4141 hll, ; The market moved in a fairly narrow range over the past week. De- clining tendencies were in force during the early part of the week and the Dow-Jones industrials reacted to a low of 272.28. At the low, the average d reacted 9019 pOints from the early August high of 281.47 or a retrace- ' nient of approximately one-third of the 26.77 point advance from the May low of 254.70. This is the normal minimum technical correction of an advance. , trhe rails, at last week's low of 100.94,had lost 4.64 pOints from the August, – , -hgh–Gi'-l-O .-9,.,-'r-hj.ssonlybout a 20 retracement ofthe 23.04 pOint ad- )lance from the February low of 82.51. The market rallied in the ratterpart ,, of the week and reached a high of 275.93 in the industrials andl03.49 in the ' tail average. Another attempt may have started to reach the 285-295 area in the industrials and 105-110 in the rails. It would appear that volume must increase before these objectives are achieved. On the downside, the 274-273 , level and 102-101 are the important points to watch. 1,' , , LONG TERM INVESTMENT I;continue to advise a 100 invested position n accounts concerned mainly with income and longer term appreciation re- gardless of intermediate term fluctuations. However, at this stage of the market pattern, would cuncentrate holdings in undervalued issues with de- ;' offensive characteristics. AMERICAN TELEPHONE (155t) is an excellent vehicle ', this type. The stock will be ex-dividend the p2.25 payment on September 10. ;' CAPITAL APPRECIATION In risk accounts concerned mainly with capital ' ppreciation over a six months period, I continue to advise a 50 to 75 liquid position. While the market may move somewhat higher over the nearer t'erm, it would appear that lower levels will be reached before the expira- ;'/ t,ion of the six months long term gain tax period. Therefore, it appears pru- ', dent to have a cash reserve in capital appreciation accounts to take advan- '- tage of possible buying opportunities. ,.-,' Like the industrials, the rails have had selective action despite the' ..act that they have bee,p ,iPca steap-y uptrenQ,from the ,June 1951low of 71.78 ,,, t'o the August high of 105.55. The diverse action of the group is shown in ,,c, the two tables below ',' 1951 1951-52 1952 1951 1951-52 1952 '; Price Atchison 92 Hh gw Hh Balt.& O. Pgce Hh 16oW Hh , Atl.Coast 109 82 64 118 Chic.E.Ill. 19 25 14 20 Chic .R. I. 68 61 44 69 Chic.Gt.W. 23 33 18 23 Denver R.G. 77 69 49 82 Chic.Mil.SP 21 30 18 24 Qt.No.,pfd. 54 tn.Cent. 73 57 75 46 52 56 Chic.No.W. 17 28 15 76 Minn.St.Pa 17 21 14 20 19 Kan .City S. 81 tghigh v. 18 75 15 57 9 84 N.Y.Central 19 26 16 20 N.Y.Chic.SL 43 47 35 21 1l;' ' Seat-oard 103 68 47 103 Penn. R.R. 19 26 17 20 Texas Pac. 105 103 77 108 West.Mary!d 21 29 18 24 , I The stocks in the first column are mainly better grade rails. They ', !,'eached their 1951 highs in February 1951 when t1e rail average topped out , , at 90.82. After a subsequent reaction to the 1951 low, this group ,led;the' , rail average to recent highs. In most cases, the recent highs are consider- ' ably above the 1951 highs. The more speculative issues in the second column r' have not fared as well. In most cases they are selling well below the Februa-i',,' iy, 1951 highs despite the fact that the rail average is 16 .above lt9511l1.igh ., J\' These secondary rails may ,be behind the market, and, in the event of ert,futher rail strength, may show better percentage appreciation than the high-' grade issues. With this thought in mind, I have included in my recommen- ded capital appreciation list two secondarY rails. They are Minneapolis, St.Paul & S.S.Marie (Soo Line) and Western aryland. To these two may be added Chicago Eastern Illinois and also Chicago,Great Western. Chicago,East- ern Illinois will benefit from thcreased ceal shipments to steam generating plants for power for atomic energy plants at Paducah, Ky. The other rail, ';', Chicago,Great West.is completing an extensive modernization program and earn-' ing power should improve sharply. Both issues have excellent technical ;patt,rni ;, A switch out of New York Central and Pennsylvania into these four issues sould work out profitably over the longer term because of their better growth, lii,cssibil1ties and technical patteJt!r.ts. , I,;' ,, Au f, vl'i, haye upon em dtm an Interes' In some or tnformtion beheved be illI rel construed ill an offer or solicitation of the securities mentioned here.n iable but not nlclnartl., complete, To,hfseonfffooetrresgutololtrnb!gully.'meeoiArt!i'iuI'aScaMcnuyNraesteelcnuo1r…hlie.ts;itF, rao.mnntutimNne.otnto&,nttiemnnQdef'deW';r\'Ial'oh.I.l.io.tJnrec'tiHTro;tffflemtaInnndoe&pnelyGndoeoItndtwISiJnnbq,umnleraydy. P'J t.,/!, .,..f. '''/'' '''''', ',' ''', ',.,',' ,'f' , ' , ,' ,–,';,' ', .. ,,;',,–,',', ,'

r\, I o l s ion.lIoffmon &- Goodwin NEW YORK 5, N, Y , , 35 Wall Street , '- DIGBY 4414\ PHILADELPHIA 2, PA 1420 Walnut Street PENNYPACKER 55'm ' TABELL'S MARKET LETTER LOS ANGELES 13, CALIF 550 South Spring Street MADISON 93232 SAN FRANCISCO 4, CALIF 265 Montgomery Street SUTTER 12700 ,- , ' — '-, The action of the market over the next week or two should furnish ,-' '/a pretty definite clue as to what to expect from now untiLElection Day. – ,to,The Dow-Jones industrial average is in an almost perfect technical position-' give a decisive indication as to the direction of the next twenty or , 'thirty point move. The industrials, at the August 26th low of 272.28, had ; retraced almost exactly one-third of the 26.77 advance from the May low of -51t. 70 to the early August high of 281.47. This one-third retracement is ,-, 'the minimum amount required for a normal correction of an intermediate move As to the next step, the average then regained the normal two-thirds of 9.19 ',dec line to reach a high of 278.16 on September 3rd. It has now spent two days in consolidation with a low of 275.18. Ability to move acove the nor -'mal two-third retracement high of 278.16 would indicate a continuation of – the main advance and a topping of the early August high of 281047. The up- . side objective would be somewhere in the 285-295 area. However, if the — August 26th low of 272.28 is broken, the indications would point to at leas a two-thirds retracement of the advance from the May lows. This would bring '-the average back to the 265-263 level. But a decline below 272 would also ,' ,break the uptrend line from the May low and the pattern of individual issueS' -suggest that the decline could carry down to a testing of the May low in th '-255-254 area. In any event, a breakout of the 272-278 range could be of con'– siderable importance marketwise. – ' Volume action continues indecisive. It has been several months since 'volume has reached the 1,500,000 share mark. The direction of the market on ',the day that figure is topped may also furnish a clue as to the next inter– tnediate term move. Moving averages of advancing volume continue below the I Levels reached at the February 1951, September 1951 and January 1952 highs.;– This is also true of advances and new highs. A recent compilation showed ' ''that in the twenty-month period since January 1st, 1951, 40 of the stocks 'listed on the New York Stock Exchange made their highs before March 31st, )951 or seventeen months ago. 70 made their highs in 1951 and only 30 — reach new high territory in 1952. For the same period, 30 of the listed ; , ,stocks reached their lows in 1952. In other words, the most profitable posi— tion marketwise over recent months would have been 50 long of stocks and -' – '50 short, provided the selections were correct. A study of individual issues and groups indicates that this select- ,- ive action will continue, but considerably more issues – are potentiallr -unfavorable than favorable. There are many issues that indicate either a possible ten-point advance or a possible twenty-point decline. That is \ hardly favorable odds. On the other hand, there are a relatively few like American Telephone that indicate a possible 25 or 40 point advance against -,- 8. possible 5 or 10 point drop. Several groups have vulnerable patterns. The oils are an example. 'ost stocks in this group reached their highs in January or February and their lows in April and May. In the August rally they failed to reach new ;high territory despite the fact that the averages reached new highs. If they break the April-May lows, a definite downtrend would be indicated. This has already occurred in some of the smaller issues such as Amerada and Texas & Pacific Land which have declined 20 to 25 from their highs. 'If the larger oils follow this pattern it would be 65-70 on Standard Oil -6f New Jersey, 48-45 on Texas Company and 32-30 on Socony Vacuum. Other groups with vulnerable patterns include the chemicals, metals and rubbers -and, to a lesser extent, the paper issues. On the defensive side, utilities 'and food stockS appear attractive. Other groups such as electronics, office I 'quipment, aviation, building supplies and rails might work temporarily — ,iower, but have excellent long term patterns. — ;September 5, 1952 Dow-Jones Ind. 276.50 EDMUND v. TABELL WALSTON, HOFFMAN & GOODWIN , ' Dow-Jones Rails – 102.48 Z. f ,- Th,s have menmIonrtarnldl!udmin 15 nol some to be construed olU lin offer or lol,citation or all of the ,.curities mentioned herein Tohfeofffoerresgotoingbuymtoerrlse1ll any ,.cunties From time hu been prepared by us atso.timmettWerahotfo!,,n.forHmofafrtl'C!nn & Goodwin may only It 1 bliled ; , upon information believed reliable but ot neclluarlly complete, IS ot gUllranleed as accurate or final, and IS not Intended to foreclose Idependent InquIry -;1'-; ,- ';– , , – ,- ,— , , , ,'-' ,' ,\.1,'-,' – – — '– -..Y -. — — -.– – .!.. ;-,a…..i ;;;i.-,…..iZ-1-.;.-il-i.-,-i.ifi&iO,ii.'-..,ha..w….,.; .-I

'Olstoll.11offmon &- Goodwin NEW YORK 5. N Y 35 Wall Streef DIGBY '14141 PHILADELPHIA 2. PA 1420 Walnut Streef PENNYPACKER 5-5977 ' TAB ELL'S MARKET LETTER LOS ANGELES 13. CALIF 550 South Spring Street MADISON 93232 SAN FRANCISCO 4. CALIF 265 Montgomery Street SUTTER 12100 In last week's letter we expressed the opinion that the market was in a technlcal position to give a definite indication as to the direct- , ', ion of the next twenty or thirty-point move in the Dow-Jones industrial i average. The signal has been given and the indications are that the market is in at least an intermediate downtrend. The signal seems quite con- ' clusive because (1) the August lows of 272.28 and 100.94 on the DowJones industrials and rails were both decisively penetrated to reach 269.56 and 97.35. (2) the volume increased to over 1,500,000 shares on the decline, (3) the uptrend lines from the May-June lows on both averages were decisively penetrated on the downside. t Wednesday's low, the short term technical indicator temporarily reached oversold territory and gave a buy signal. I would consider this signal only as an indication of a technical correction of the sharp decline and would not expect the industrials to rally much above 273-275 area. Thursday's high was 273.25. If the market follows a normal technical pattern, the proc,edure would be a continuation of the decline to about 265-263 in the indus- ,. trials and 95-93 in the rails. This would be followed by a technical rally back to 269-270 and 99-100 and then a testing of the lows reach- ed on the previous decline. However, it should be borne in mind that the selective action of individual issues witnessed in the summer rally will also continue during any decline. Despite the action of the averages, many stocks have been in downtrends since February, 1951 and have already declined 25 to 40. Some of these issues may e near buying levels regardless of the action of the averages. Other issues and groups are vulnerable to further decline, particu- larly oils, chemicals, and other issues that have risen sharply over the past year. LONG TERM INVESTME Despite the fact that the intermediate term trend may be down, I continue to advise a 100 invested position in accounts concerned mainly with income and longer term appreciation. Holdings of sound, gooe quality, dividend paying issues should be retained, particularly when bought at considerably lower price levels. The longer term trend indicates ultimately higher price levels and good grade issues should continue dividend payments at approximately present rates. Further weakness should present buying opportunities in selected issues. For immediate purchase would suggest American Telephone (153 7/8). Also suggest the following in the price ranes mentioned Abbott Laboratories (46-44), American Seating (20-18), Armstrong Cork (50-48), Burrouhs (17), Celanese (40-35l Lone Star Cement (27-25),Owens Illinois (70), Pacific Mills (31-28), Parke Davis (40), Western Auto Supply (49-46). CAPITAL APPRECIATION The recent sell-off in individual issues, and more recently in the averages, confirms my policy of having a goodly portion of funds liquid in risk accounts concerned mainly ,;' with capital appreciation over a six months period. If funds are entirely tied up in a 100 invested position, there is no opportunity of purchasing issues at bargain levels. A list of issues that are near buying levels will be issued ' shortly. EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN , September 12, 1952 Dow-Jones Industrials Dow-Jones Rails 271.02 98.50 7- – .,, , , ' , ThIS memorHldum is not to be conlitrued 0111 an offer or ohcitlltion of offers to buy or sell any securities From time to time W .. lston, Hoffman & GoodWin may hay. an Interest in lome or 1111 of the leCurities mentioned herein The foregOing materllli has been prepared by UJ a! ill matter of mformation only It if b'lied upon ,nformatlon believed rellflb/e but not nece!sflniy complete, n not jUlIrilinteed aJ ac.curate or final, and is not Intended to foreclose independent inquiry 1(' ,' ,.

l\Tolstol1.noffl11on &Goodnin , .' . r . – ''- -, NEW YORK 5, N, Y 3S Wall Street DIGBY 44141 PHILADELPHIA 2, PA 1420 Walnut Street PENNYPACKER 5-59n TABELL'S MARKET LETTER LOS ANGELES 13, CAliF 550 South Spring Street MADISON ,,)2)2 SAN FRANCISCO 4, CALIF 265 Montgomery Street SUTTER 1-27DO , The market rallied on Friday afternoon led by the televisions. The Dow-Jones industrials closed at 270.55 and the rails at 99.15 after sell- ing down to extreme lows of 267.08 and 96.87 on Tuesday. At this moment, there is overhead supply at 273-275 in the industrials and at 101 in the , , , rail average. ', ' Despite the fact that the intermediate trend has been downward, I ex- Z .! pect the same selective action in individual issues that was part of the recent advance. Individual issues may be near or at their lows at present , ,'.. levels even though the averages work lower. I am listing below my recommen-;- ', ded list of investment and capital appreciation issues together with new recommendations to be bOught only on weakness, in the buying ranges specifid. ,,' LONG TERM INVESTMENT Despite the fact that ,the intermediate term trena' ;,' may be down, I continue to advise a 100 invested position in accounts con- cerned mainly with income and longer-term appreciation. Holdings of sound, c,c , ., good quality, dividend paying issues shoUld be retained, particularly when' , I, bought at considerably lower price levels. The longer term trend indicates ' . ultimately higher price levels and good grade issues should continue divi- ' , dend payments at approximately present rates. Further weakness should pre- , sent buying opportunities in selected issues Price BUin flange Price Buying Range , i Abbott Lab. (A) 45 6- 3 Hall Printing 16 16-15 ,,' , Allis Chal. C' -Arner.Chain ' ' Arner. Rad. 50 48-45 28 27-25 14 14-13 Joy Mfg. Lone Star C. Lowenstein 33 27 32 33-30 27-25 30-28 F,- ;,, -Arner. Seat. 21 ;, Arner. Tel. (A) 153 20-18 Mkt. Mont. Ward OWens lIl.G. 60 71 60-57 70-65 ,,' ;; ' lE-Armstrong Cork 52 50-48 Pacific Mills 31 31-29 '; -Babcock & Wil. 34 35-33 Parke Davis 44 42-40 ;' Blaw Knox 16 ' Bucyrus-Erie 24 -Burlington Mills 17 17-15 23-22 16-14 Penn.Salt (A) Pfizer Phillips Pete 51 33 56 50-45 32-28 53-50 ,-r ' ; Burroughs Add. 18 17 -16 Shamrock Oil 39 36-34 Celanese 41 40-35 Smith (A.O.) 35 34-32 -Chain Belt (A) 36 35-33 Sylvania El. 37 32-30 , Columbia Gas (A) 13 13-12 U.S.Gypsum 115 110-105 Elliott Co. 28 27-25 Western Auto S. 49 49-46 CAPITAL APPRECIATION I have advised a 75 to 50 liquid pOSition in risk accounts concerned mainly with capital appreciation over a six months ' period. The recent sell-off confirms the advisability of this course of ac–' , tion. However, on further weakness would bring accounts up to 60 invested .;, Buy only on weakness to the buying ranges specified Admiral (Al All. Ludlum Balt.& Ohio Price 31 35 21 Buying Range 27-25 Hercules Motors 33-28 Interchemical 20-18 Inter.Tel & Tel Price 18 i – Buying Range ', 18-16 ;, 20-18 17-15 Beaunit Mills ..' Briggs Mfg. Canadian Brew. Carrier (Al Certainteed '(,lic .E.lIL Chic.Gt.West. , Climax Molyb. , Col.Broad. ,! Denver Rio G. ,', ,Ell.st .Airlines Fansteel ,,' Ferro Corp.(A) 20 36 18 29 14 17 21 36 n36 22 25 28 21-19 35-34 18-16 27-25 14-13 17-16 20-18 33-30 33-30 70-65 22-20 24-22 28-26 Mo.-Kan.Tex.pfd. 63 Minn.St.P.& SSM 16 Natl.Distillers 22 N.Y.Air Brake (Al 20 Paramount 24 Pittston Co. 29 Southern Rwy. 64' Universal Pic. 13 Vanadium Corp. 40 Warren Petroleum 29 Western Air. (Al 11 Western Md. 20 Western Pac. 51 58-55 17-15 23-21 20-18 23-21 27-25 60-56 12-11 40-37 28-25 11-10 20-18 50-46 , -\ ' \ ,, , , Gray Mfg. 14 14-12 Previously in recommended list. A-Offered by prospectus only. ,', 8eptember 19, 1952 EDMUND W. TABELL WALSTON. HOFFMAN & GOODWIN , Thh memorandum IS nol to be comtru.d liS an offer or soluitlltion of offers to buy or Sell lIny securities from time to me Walston, Hoffman & GoodWin may hllve an intered in so,. or all of the leeurltlel mentioned herein The foregOing mateTlel has been prepared by U as a matter of information only It 1 baled lf'–''- i r ,o if,r.n Iv,e \ie u nt nelIriIY ompee I' t ;Mante&d as aeeurat r ia';d i,nt,-i'nedOS n,-en; Ulry ,,,

NEW YORK 5, N, Y 35 W… II 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 322 SAN FRANCISCO 4, CALIF 2b5 Montgomery Street SUTTER 12100 … ' , ,I ,I '\ \1 I The market,at the week's highs of 273.74 in the Dow-Jones industrials ,and 102.92 in the rails, had rallied back to the first overhead resistance ,,', 'reas of 273-275 and 101-103. The diverse action of recent months continued ,during the five-day rally with some groups like the electronics and rails ,,' ,advancing sharply while other groups like the oils, metals and chemicals -', rallied feebly and appeared to be under selling pressure. There was even ';' , diverse action within the same groups with American Cyanamid selling around' , the year's high at the same time that Monsanto Chemical was selling near '', 'the year's low. I expect this selective action to continue despite the fact' ,that the averages appear to be in at least an intermediate downtrend. Woul' ,continue the policy of liquidating issues with vulnerable technical patterns, ,during periods of strength and acquiring issues with favorable, long term' 'patterns only during periods of general markt weakness. LONG TERM INVESTMENT Despite the fact that the intermediate term trend may be down, I continue to advise a 100 invested position in accounts' , concerned mainly with income and longer-term appreCiation. Holdings of sound, ,.good quality, dividend paying issues should be retained, particularly when ,' ,'bought at considerably lower price levels. The longer term trend indicates, ,'ultimately higher price levels and good grade issues should continue divi- ,,' dend payments at approximately present rates. Further weakness should pre- ', , sent buying opportunities in selected issues ;,' ;' ALLIS CHALMERS (50) The stock is in a slow uptrend channel from the;;,;' ; 1949 low of 26. The outer limits are now 57 and 36. Stock br9ke out of the ' ',four-year old 26-40 range and indicated 50-55 followed by a longer term , ,65-75. The trading range formed in the 40-47 range indicated 53-57. The '1951 high was 54. Stock has held recently in the 54-48 range. An upside ; penetration would indicate 60-62. ', , JOY MANUFACTURING (32) has formed a head and shoulders bottom at ' 31-24-28 with a top at 40. A breakout on the upside of this range would inr dicate 60. Would buy on all price dips. February high was 38. There is 'strong support in the 33-30 range. PHILLIPS PETROLEUM (57) Stock is in an uptrend channel from the '1949 low of 27. The outer limits of the channel are now at 53 and 70. ; The upside objectives of the 27-32 base were 51 and 67. First objective ,- was reached at 1951 high of 54. The upside penetration of the 47-54 range ;' indicated 60-67. Recent high was 62. The minor top at 62-60 suggests a I' 1- t ',decline to 54-52 where the stock should be bought. CAPITAL APPRECIATION I have advised a 75 to 50 liquid position -;, in risk accounts concerned mainly'with capital appreciation over a six i ,IDonths period. The recent sell-off' confirms the advisability of this course;, ','of action. However, on further weakness would bring accounts up to 60 ' 'invested. ALLEGHENY LUDLUM STEEL (35) The re-accumulation area in the 37-43 ;,,, i,,range indicated 46 to 52. A high of 52 was reached in 1951. Stock held in the 52-37 area since late 1950. The downside penetration indicates 33-28. '), Would buy in the 33-28 area where there is good support. , , , rally ,c'ation t BEAUNIT MILLS (20) A higho 32 formed a trading range was 21 which is a strong su powpf oh3ri7ct hawwraesaas r. epaAecnpheretidrla. ltoeTwdhewddoaewscn1lsi9ind. eeM. tooTreh2e7tiimnadneid-I0''.', , IDay be needed to build up a base but the stock appears to be a purchase , , in the 19-21 range. , VANADIUM CORP. (41) A very wide potential base has been built up i, 'with an upside possibility of 60. The stock broke out of the seven-month ,', trading range between 34 and 40. The upside penetration indicates 50. The r Y',;recent high was 45. Buy on dips to 40-38. ,September 26, 1952 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN Dow-Jones Industrials – 27195 Dow-Jones Rails – 101.59 ThIS memorandum il not to b. construed al an offer or ,elldtation of offers to buy or ,.11 tiny 5ecuriti From time to time Wahto. Hoffman & GoodWin may Itve In Interest in fom. or Ill of the ccmhel mentioned hltrein T foreqoinq matarial hlf been prepr&d by us 1 I m.aUer of In'Otmllh11I only It If. based upon mformtltion beheyed reliable but not neceutlrily tomplete, it not ulITanteed al atcurat. or fln,,'. and is not Intehded to foretlose Indepelldent ,nqulry. r, ,,' .., ' — / , '' ',,,' , )','',,';',',,, ,i,' ,,'''''\ .. ,Gi' lllli.,t 1,1i i a.ai. li

NEW YORK 5, N Y 3S WH Street DIGBY 4-4\41 ro lsion.lloffnl0n &- Good,,'in &/-'''',.J4N.eHt' ckct'ot'u.e' PHILADELPHIA 2, PA 1420 W!Ilnut Street PENNYPACKER 55917 LOS ANGELES 13, CALlF 550 South Spring Street MADISON. 93232 SAN FRANCISCO 4, CALIF 265 Montgomery Street SUTTER 12700 TAB ELL'S MARKET LETTER The market has failed to rally above last week's highs and the inter mediate term trend still remains down. From a near term technical point of view, there are two series of pOints to watch. The first series are last ', week's highs of 273.74 on the Dow-Jones industrials and 102.92 on the rails' Ability of the market to move above these levels would indicate that the i'..- probabilities favor a reversal of the downtrend from the August highs of ; 281.47 and 105.55. The second series to watch are the September lows of ;', 267.08 and 96.87. If these levels are penetrated, the technical pattern — ', would take on a rather ominous appearance,particularly if volume increased, sharply pattern on the downside penetration. If that would bear a striking resemblance to occurs the the 1946 ma present rket patt technic ern. Up atl ' now, the industrial average has followed the 1946 pattern quite closely. At' the moment the correlation has carried to a pOint, both in pattern and , timing, comparable to the point reached in 1946 about ten days before the ,', sharp break of some thirty-five points in the industrial average. Regardless of the action of the averages, this letter continues to – stress the extreme selectivity of the market. This action will continue re- ' gardless of whether the averages move up or down. It is difficult for many;; investors and speculators to realize that the motivation behind the market ','-, movements has changed considerably over the years. In the past, the stock market moved more or less as a unit. Today this is not true. A great deal of the buying and selling is concentrated in institutions such as invest- ment trusts, mutual funds, insurance companies, pension funds and larger individual accounts that are handled by investment counsellors. This type 1';–'.. of buying and selling is not motivated by tips, hunches or emotions. Their !l; ,; judgement may not always be correct, but it is arrived at after consider- S'-, , able research and thought by competent professional analysts. Action is ,', not taken until there is some valid reason for it. That is why many of the -; , erstwhile speculative favorites of the past show little market action. Issue, –, like Pepsi-Cola have done nothing marketWise for the good and sufficient ' ' reason that nothing has happened to cause any great change in the outlook and price. In the past, these issues moved up and down with the gyrations — in the general market. That is why it was possible for the tobacco stocks, for example, to move sharply lower during a period in which the industrial — average advanced from 160 to 280. In the future, it may enable many issues ,', to move ahead despite the fact that the averages may be in a declining or consolidating phase. .,-,' LONG TERM INVESTMENT Despite'the fact tt.at the intermediate term ;, ',-, trend may be down, I continue to advise a 100 invested position in accounts, – concerned mainly with income and longer-term appreciation .Holdings of sound, good quality, dividend paying issues should be retained, particularly when bought at considerably lower price levels. The longer term trend indicates i ultimately higher price levels and good grade issues should continue divi- , dend payments at approximately present rates. Further weakness should pre- ',,' sent buying opportunities in selected issues. r, , At present price levels,AMERICAN TELEPHONE & TELEGRAPH represents an i , interesting investment .At 153, the stock yields 5. 8. The pressure of bond !,' conversions has held down the price of the stock but there appears to be a l,i,' , minimum of risk on the downside. The upside potential is good. The stock Iia , ',sold on a 5 yield basis several times in the past. On the present dividendjk, , the stock would yield 5 at 180. In the utility field,PUBLIC SERVICE ELEC- ';;, ,', TflIC & GAS also has attraction. At 26, the stock yields slightly over 6 on t th-e 1.60 dividend. Here again the pressure of conversion of the preferred stock acts as a drag. However, the territory served has experienced consi- ,' ' derable industrial growth and the technical pattern of the stock is attract; e. CAPITAL APPRECIATION I have advised a 75 to 50 liquid position in '' , risk accounts concerned mainly with capital appreciation over a six months \. period. The recent sell-off confirms the advisability of this course of act. ;'ion. However, on further weakness would bring accounts up to 60 invested. ' Consult my list of September 19th. EDMUND W. TABELL Oct-cber 3, 1952 WALSTON, HOFFMAN & GOODWIN

, l\To l s ton.lIoffnl0n f. Goodwin' ,—-' ,'–,,, —-'c —7 Z/6'd6;UNZ& CJ,kct-'rbe4 ,( NEW YORK 5, N, Y — 35 WII Street PHILADELPHIA 2, PA 1420 Walnut Street r -', DIGBY 44141 PENNYPACKER 5-5977 , 'I TABELL'S MARKET LETTER LOS ANGELES 13, CALif 550 South Spring Street MADISON 9-3232 SAN fRANCISCO 4, CALIF, 2b5 Montgomery Street SUTTER I 1700 .- '7 , , , I The market, as measured by the averages, continues to hold in the ,-', 'trading territory outlined by the September 12 lows of 267.08 in the Dow 'c-'industrials and 96.87 in the rails, and the late September highs of 273.74 ' ',land 102.92. The lows of 268.97 and 99.26 reached earlier this week were , substantially above the support levels and the volume on the decline was ;;,small. This relatively favorable action resulted in a rally that carried , ,to highs of 272.36 and 101.56 on Thursday. The comeback has not been strong ,, '''enough to alter the intermediate downtrend signal i'rom the early August ' ',high of 281.47 and 105.55. The first encouraging signal would be the abil- ,-, ;'ity of the averages to rally above 273.74 and 102.92. This, together with I ;,a pick-up in volume and a reversal of the downtrend signal now in effect Hon the intermediate term indicator, would indicate a reversal of the trend , , ,and a testing c the August highs. None of these three things have happened 'c,' 'as yet.On the bearish side, a decline below 267.08 and 96.87 would confirm , the downtrend already in effect. This would be particularly discouraging c )-1' volume increased sharply on the downside penetration. /, The various averages, more than any time in the past, do not convey', ,'a true picture of what is happening in the market today. Take the Dow-Jones , I 'industrials, for example. At Friday's close of 270.61 they were down only'; ','3.6 from the 281.47 high,- an infinitesimal amount. The same is true of the -, ,various other averages,as noted in the table below ;1 c New York Times Industrials High 1951-192 304.9 Oct.9th Close LOS 294.93 3.2 ,New York Herald-Tribune 100-Stock 152.19 148.10 2.8 ' 'Standard & Poor 90-Stock ,' 202.86 195.10 3.7 ' Of course, the New York Herald-Tribune and Standard & Poor I s aver- , ages are combined averages and include rails also, but the four averages ;,,'all convey the impression that the Market is selling at a price level ',only slightly more than 3 below the highs of 1951-1952. A quite different impression is obtained when the action of indi- i,;vidual issues is observed. Listed below are the twenty-five stocks which head the list of the 50 most popular 1952 mid-year holdings of the invest- ment trusts All of these issues are industrials. Five stocks, two rails ' and three utilities, are left out of the list and the next five indus- ',trials added 1951-52 High 'Amerada 235 ' Std. Oil N. J 85 ,Cont . Oil , \ulf Oil 75 58 Int.Paper ,– Goodrich 56 72 ,Texas Co. 60 ;'Std.Oil Cal. 64 –Gen' 1 Elec. 64 Kennecott , Phillips 92 62 Union Carbide 68 Close 10/10/52 194 75 59 48 49 65 52 53 63 73 55 64 De- crease Hit1951-52 17.4516 Dow Chem.2 11.76 Gen'l Mot. 61 21.33 Std.Ind. 92 17.24 DuPont 102 12.50 Monsanto 109 18.05 West.El. 42 13.33 Mont.Ward 75 17.18 Sears Roe. 60 1.56 Beth Steel 60 20.65 Alum.Ltd. 62 11.02 Skelly 99 16.00 Chrysler 86 Humble 86 Close 10/10/52 41 60 85 87 87 42 57 57 48 49 82 84 68 De- crease , ' 2.38 ;'-', 1.63 ', 18.48 , 14.70 20.18 ,,',' -0- 24.00 5.00 20.00 20.96 17.17 2.32 20.93 –' ,, Remember, this is not just a handpicked list. It is the 25 most popu-' ,lar industrial stocks held by investment trusts on June 30, 1952. Yet, only' ,'six have acted in accordance with the averages. The other 19 have declined 'from 11 to 24. The average decline of the 25 stocks is 13.8 as compared ' ',with slightly more than 3 in the various averages. A 13.8 decline from the, 281.47 high in Dow-Jones industrials would bring the average down to about –', ',243. It appears that 243 would convey a more accurate picture of where the ',';market sta.nds today than 270.67. I have stated in the past that I expected the market to reach 235-220 before the market resunies its broad advance to ,,' much higher levels. In terms of individual stocks, the market is nearer its 0, duwnside objective than would appear from the 270.67 clese in the industrial, a' verage. The 50 most popular stocks is EDMUND W. TABELL ,' I

Wolston.Hoffluon &- .\'.' ,, , '- ,. , ',,,'- ,,,'. ' , ' , Goodwin,',,'', ' ' ..,', ''0. /' , NEW YORK S, N. Y. 35 Wall Street DIGBY 44141 PHILADELPHIA 2, PA 1420 Walnut Street PENNYPACKER 55977 ' TABEll'S MARKET lETTER LOS ANGELES 13. CALIF. SAN FRANCISCO 4, CALIF. 550 South Spring Street 265 Montgomery Street MADISON 93232 SUTTER 1,2700 The Dow-Jones industrials broke down below the September 12th support' level of 267.08 to reach a low of 263.33 on Thursday. The rails showed bet-, ter action and, at the week's low of 97.21, succeeded in holding above the September 12th low of 96.87. The sharp decline in the industrials brought ' the short term technical indicator into oversold territory and a buy signal as indicated early Friday. This, of course, applies only to the shorter ' term trend. The intermediate trend indicator has not yet reversed the down-, ward signal given at the August highs. However, as we have noted many times the averages have not shown a true picture of the market. The action of in',' dividual groups and issues is much more important. From a technical view- ' point, there are still quite a few groups that, despite the already sharp ,c' decline, indicate lower levels. Steels, oils, metals, chemicals and possib1y, rubbers, are in this classification and should be avoided. Other groups show much better technical action and should be bought during periods of weakness. , LONG TERM INVESTMENT Despite the fact that the intermediate term trend may be down, I continue to advise a 100 invested position in account concerned mainly with income and longer term appreciation. Holdings of sourid,- , , good quality, dividend paying issues should be retained, particularly when, ,', bought at considerably lower price levels. The longer term trend indicates' ultimately higher price levels and good grade issues should continue divi- , dend payments at approximately present rates. Further weakness should pre- , sent buying opportunities in selected issues , Abbott Lab. (A) Price Bin Range 435- 0 Hall Print. .. 'Allis Chalmers 50 48-45 Joy Mfg. I'Price 16 Bup6n-rRange i 33 33-30 ric; ',, Amer. Chain 28 27-25 Lone Star C. 27 27-25 .. ,' ; ;Amer. Rad. 14 14-13 Lowenstein' 31 30-28 ' , Amer. Seating 20 ',.Amer. Te1ephone(A) 153 20-18 Mkt. Mont. Ward Owens Ill.G. 56 71 60-56 70-65 ' Armstrong Cork Babcock & Wilcox , B1aw Knox ,,'Bucyrus Erie 49 32 16 23 50-48 34-32 17-15 23-22 Pacific Mills Parke Davis Penn.Salt (A) Pfizer 29 42 51 32 31-29 42-40 50-45 32-28 , , BUrlington Mills ,Burroughs Add. ',Celanese , Chain Belt (A) CoL Gas (A) Elliott 15 17 37 33 13 26 16-14 17-16 40-35 35-33 13-12 27-25 Phillips Pete. Shamrock Oil Smith (A.p.) Sylvania El. u.S.Gypsum Western Auto 54 38 33 38 112 50 53-50 36-34 34-32 32-30 110-105 49-46 ', ; CAPITAL APPRECIATION I had advised an invested position of only i– ',' 25 to 50 in accounts concerned mainly with capital appreciation over a ,, , six months period. My letter of September 19th advised raising invested ; , positions to 60 on further weakness into buying ranges in selected issues.-;, Some of these buying ranges were reached during recent weakness. Continue , 40 liquid awaiting further opportunities. Price Buying Range Price Admiral (A) 31 27-25 Hercules Mot. 17 Allegheny Lud. 33 33-28 Interchem. 19 BaIt. & Ohio cuit Mills , ;!.ggs Mfg. 21 20-18 Int. Tel. 18 17 21-19 Mo.Kan.Tex.pf. 66 35 35-34 Minn. St.P. SSM 16 ''0anadian Brew. 17 18-16 Natl.Dist. 20 Carrier (A) 29 27-25 N.Y.Air. (A) 19 Certainteed 13 14-13 Paramount 23 'fChic. East . Ill. 18 17-16 Pittston 27 Chic. Gt.West. 21 20-18 So.Rwy. 68 ,;C1imax Molyb. 36 33-30 Univ. Pict. 13 Col. Broad. 37 33-30 Vanadium 37 ; Dmver Rio Clrande 74 70-65 Warren Petrol. 29 i,Eastern Airlines 23 22-20 Western Air. (A) 10 ,) li''tnsteel 25 24-22 Western Md. 19 Buying Range 18-16 20-18 17-15 58-55 17-15 23-21 20-18 23-21 27-25 60-56 12-11 40-37 28-25 11-10 20-18 'F'erroCorp.(A) 26 28-26 Western Pac. 54 50-46 ',Gr'r';JJS1Y in recoended ltt2 (A) Offered by prospectus only. ' 0 T.hlrvIJlO.lld nol-f ,.epnstrued as an offer or 5Olidtafion of off.rs to buy OIJJlMJlT,ri ftlf'll\ ToTtiml! W.e.hton, Hoffman & Goodwin may f, , ChlWiJlLMfnIbrel.l.il r'melo)fiJll4f the securities mentioned herein. Th. foregoing mate'HJIlW pftredLtJ-dP.N-h' matter of informoStion only. It is based I'- upon Information b.lieyed reliable but not necenarily complete, 1, not ;uaranteeASTOMinaHeFFM'AN'en&d (!tOOOWWependent inqUiry. 1',' /,,,;',' -',.. '''.''-''''''''''' .. C,,', ,,', ','', ,,' –'C, ,- ' c,- ',C', '-', ''C' ',,-,\.

NEW YORK 5. N. y, 35 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 922 SAN FRANCISCO 4. CALIF. 265 Montgomery Street SUTTER 12700 ;;;, The Dow-Jones industrials continued the downtrend to reach a new low ;for the move at 262.60, but the rails held above the September low of 96. , t is about the only favorable technical factor in evidence. The rails in a position to shortly furnish an indication of the nearby trend.If average can rally to 101, it would indicate a probabiLe testing of 105 igh. This would probably mean a rally in the industrial average also, but I Ci.oubt if it can carry above the heavy overhead supply at 270-272. On the' '.;;, r hand a downside penetration of the rail low of September 12th, 96.87, ; ould indicate a further decline to 92.90 and a testing of the 255 support ,level in the industrials. From a technical point of view, the steel stocks have turned in a ther discouraging market performance. In most cases, the stocks in this 8'n,, reached their highs in February, 1951 or over twenty months ago.Sinc time, they have been in a slow downtrend with each successive high be low the preceding high. On ;;;y technical work, the group still indicates erately lower levels. The table below presents this picture. Present 1951 Downside Price High Objective Allegheny Ludlum Armco Steel Bethlehem Steel 32 36 47 52 33-28 51 34-32 60 40-38 Granite City Steel Inland Steel Jones & Laughlin 19 42 21 31 19-16 62 38-35 31 20 National Steel ,.' ',' Republic Steel ;;)nron Steel 44 38 34 56 37-33 49 33-30 50 31 U. S. Steel Vanadium Wheeling Steel Youngstown ';'. 38 47 36 45 34 46 40 59 Reached in 1952 33-30 31-25 40-37 While some of these issues are close to downside objectives,that is part of the story. After these downside objectives have been reached, considerable period of time may be needed to form new base or accumulaion patterns. For example, U.S.Steel spent almost four years in the 21-29 in building up the base pattern that indicated the advance to 47.That why I consider the group relatively unattractive for appreCiation. There are exceptiDns, of course. Vanadium Corp. has an entirely — pattern than the other issues. Actually, this is a specialty 8'bv'''-alloy company. Together with its vanadium mine in Peru,the company a.nd leases uranium ore deposits in Utah and Colorado which are being loped. The technical pattern is good and, in speculative accounts conerned mainly with capital appreciation, I would advise switching out of of the steels in the table above into Vanadium Corporation at present Is. A possible exception to this switching recommendation is Allegheny . The stock is in its downside objective range and has, in the past, up base patterns rather rapidly. Its interest in titanium lends long speculative appeal. For long term investment accounts holding steel stocks, I suggest itching into Allis Chalmers, now around 50. The yield is close to 8 and ings for this farm machinery and electrical equipment stock are holding; well as witness the 5.99 per share for the nine months ended September as compared with 5.85 for the same period last year. Technically,the has already formed a strong base pattern with indications of higher Is. There is strong downside support at' 15. In summary, for capital appreciation accounts, would switch all other teels into Vanadium Corporation or Allegheny Ludlum. In investment accoun switch steels into Allis Chalmers. tober 24, 1952 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN This memorandum is not to be construed a lin offer or solicitation of offers to buy or sell any securities. From time to time Walllo Hoff,!an ,& Good,! may have an interest in lome or ell of the leeurities mentioned herein. The foreqoing mll'erial luIS bun pr!piued by. us as ,of! matter of Informa only. It . ba!ed upon information belleyed reHable but not necenaril, complete, h not 'iJuaranleed a accufllt. or final, and IS not Intended to foreclose Independent Inquiry.

r, ..—- I NEW YORK 5, N. Y. PHILADELPHIA 2, PA. 35 Wo!IlI Street 1420 Walnut Street DIGBY -4414/ PENNYPACKER 5-5977 TABELL'S MARKET LETTER ';'-' LOS ANGELES 13. CALIF. 550 South Spring Street MADISON 93232 SAN FRANCISCO 4. CAIF. 2bS Montgomery St;eet\ fSUTTER 1-2700 'The market 'rallied sharply on 'FI'lLday; based.on hopes of a Repub.,. . .icah vlct.brYinlTu'eeday,' s, balloting; . However, except for a possible two r three day flurry, I do not believe that the intermediate trend of the arket will be much changed by the election of either Eisenhower or Steven- en Censidering the present demestic and werld-wide situatien,beth candi- ates will prebably be ferced to pursue appreximately the same pelie'ies ver the next; six months .or a year. During this peried, I expect the market to undergo a slew re-,accumulatien peried in preparatien fer a leng term ad- ance starti.ng prebably in 1954. During this conselidatien .or adjustment . er'l..ed, there will be wide meves in beth directiens in individual stecks nd gl'eups. This peried will present an eppertunity te rearrange pertfelies .n preparatien fer the next advancing phase .of the leng term uptrend. ,In ,;y epinien, a Republican victery next week weuld prebably mean that this dvance weuld be en a seunder and'saner basis beth here and abread. Inci- entally, unlIke 1948, there is a curieus reluctance en the part .of mest . emmentatel's te st!. ck eu.t their necks and definitely predict Tuesday s J results. Here is my persenal epinien – fer what it is werth. I expect isenhewer te be elected by a landsll..de greater than anything since 1936. Among the better grade greups that have declined the mest in recent arkets have been the eth1.cal drugs, metals, e1.ls and chemicals. This has een ferecast fer a leng while en my technical werk. Fer example, in my etter .of February 1, 1952 we said — 'rhe leaders .of the market rise since the July 1951 lew .of 240 .72 have. een the chem1.cals, ethical drugs, metals, .oils and rubbers.. It. weuld ap- . ear that twe ef'these greups, the chemicals and eth1.cal drugs, have reach- d the!r .objectives. They have been unable te meveabeve the September- Octe'ber 1951 highs. The actien .of the rubbers has been uncertain. Seme individual issues Indicate the pessibility .of higher levelS, but mest .of he gre'up have' been unable te meve ahead recently. The .oils and metals have, centirn.ii.d te advance te new highs, but are appreaching their, upside ebject- . lve. All .of these greups are classed as vulnerable. Other vulnerable groups include autemebiles, paper and steels. . It mtgb.t be interestIng te nete the prices .of seme .of the leading' issues in each greup en February 1st, and where these .same issues are sell- ing nine menths later . Dew-Jenes Ind. Ab'bett L2b. Allied Chemical erican Cyanamjd American Smelting er-Ican Zlrc Anacenda erre de Pasce HIes Service ,1iJnax Melybdenum Dow Chemical DuPont ulf Oil ennecett Feb.lst. Oct.3lst 271.68 269.23 64 45 1/2 72 71 1/4 60 53 1/2 50 3/4 40 3/8 24 3/4 17 1/2 52 7/8 39 3/4 56 7/8 36 7/8 108 1/2 92 3/4 34 3/4 34 1/2 36 3/4 38 1/2 88 3/4 85 3/8 . 56 1/2 50 l/4 89 3/8 71 5/8 Feb .lst Oct. 31st !eegehem. ; ii V Mid-Cent.Pete 77 3/4 61 1/2 Mensante Chem. 102 1/4 84 5/8 Parke Davis 54 3/8 41 3/4 Pfizer 40 3/8 32 Phelps Dedge 39 7/8 35 Phillips Pete Pure on St . Jeseph\Lead 52 3/4. 55 65 3/8 61 7/8 50 1/2 36 3//8 Soceny Vacuum 39 3/4 34 1 2 Stand.Oil .of N.J.82 3/8 75 5/8 Unien Carbide 60 1/4 63 3/4 olE, Adjusted for .split. The metals have had the mest severe decline. This greup ceuld still erk semewhat lower, hewever; and censiderable time will be needed te ferm ases. The same applies to steels. Where tax lesses can be taken advanta- eously, weuld switch steels into Vanadium Cerp . .or Allegheny Ludlum. In etals, weuld take tax lesses and switch inte Climax Melybdenum. The .oils lse have declined sharply but indicate 10 or 15 lewer ever theinterme- late term. The .oils with the best technical patterns are Phillips Petre- J&Jl1!l. (54) and Pure Oil (59). Weuld .swltch other .oils inte these two issues. he chemicals still appear vulnerable and would aveid mest .of this greup at resent levels.The paper issues are in the same categery.The rubbers, at resent prices, are the most vulnerable .of all the greups mentlened and Ol.'.ld take preflts on all issues in this greup. The autemebile issues are nly .ones .of the seven greups mentlened thatllave meved .' l;;e;' They appear high en;ugh;but-have net yet fermed distributionaL.teps. Octeber 31',1952 '—– ' E D M l J N D W. TABELL WALSTON, HOFFMAN & GOODWIN – – –.. -.—''''''-'''' .–'– .–. – – i