NEW YORK 5, N, y, 35 Wall Street DIGBY 44141 PHILADELPHIA 2, PA 1420 Walnut Street PENNYPACKER 55977 TABELL'S MARKET LETTER LOS ANGELES 13, CALIF, 550 South Spring Street MADISON 93212 SAN FRANCISCO 4, CALIF, 265 Montgomery Street SUTTER 12700 , ,,' The 'Eisenhower landslide resulted in a strong opening on Wednesday with, ',volume for the opening hour at 820,000 shares, the highest since early 1951. Wednesday's highs of 274.77 on the Dow-Jones industrials and 102.24 on the , rails were followed by a decline to 268.89 and 99.15 on Thursday but the mar; ket recovered to 274.77 and 102.49 on Friday. Except for a fractional pene- ,' 'tration by the rails, Friday's rally failed to carry above the initial rally;, highs. There is quite heavy overhead supply in both averages.' ,;, I continue to believe that the beneficial effects of the election will ; be felt over the longer term rather than the near term. I look for a conti-'' nuation of the diverse action of the past year while the market ,unc,ergoes a,,; ',re-accumulation and re-adjustment area prior to a resumption of the long term uptrend. –i LONG TERM INVESTMENT 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, particular;' iy when bought at considerably lower price levels. The longer term trend in – , dicates ultimately higher price levels and good grade issues should continue''; dividend payments at approximately present rates. Weakness should present 'buying opportunities in oelected issues Price Buying Range Price Buying Range Abbott Lab. (A) Allis Chal. ,Amer. Chain ,Amer. Rad. Amer. Seat. 'Amer. Tel (A) ,Armstrong Cork Babcock & Wilcox Blaw Knox ,ucyrus Erie 'Burlington Mills Burroughs Add. Celanese 9hain Belt (A) ,Oolumbia Gas (A) Elliott Co. 45 54 27 14 20 154 47 34 17 23 15 17 35 35 13 28 45-42 52-50 27-25 14-13 20-18 Mkt. Mkt. Mkt. 17-16 23-22 15-14 17-16 37-33 35-33 13-12 27-25 Hall Print. 16 Joy Mfg. 33 Lone Star C. 28 Lowenstein 30 Mont.Ward 60 Owens Ill.G. 71 Parke Davis 42 Penn. Salt (A) 49 Pfizer 31 Phillips Pete 58 Shamrock Oil 39 Smith,A.O. 35 Sylvania Elec. 37 U.S.Gypsum 109 Western Auto 50 16-15 33-30 27-25 30-28 60-57 70-65 42-40 50-45 32-28 53-50 38-35 34-32 35-33 110-105 49-46 , ,' , CAPITAL APPRECIATION During recent weakness to 262.01 in the Dow-Jones,' ,industrials and 96.87 in the rails, I advised increasing invested positions -'' ,in risk accounts concerned mainly with capital appreciation over a six months.',' period from 25-50 to 60. Would maintain this ratio leaving 40 liquid ' until further notice. Recommended issues follovl ', Price Buying Range Price Buying Range', idmiral (A) 'Allegheny Ludlum BaIt. & Ohio eaunit Mills Briggs Mfg. Canadian Brew. Carrier (A) Certainteed Chic.East.Ill. Chic.Gt.West. Climax Molyb Columbia Broad. Denver,Rio Grande Eastern Airlines Fansteel Ferro (A) Gen'l Rwy.Signal Gray Mfg. 30 34 22 17 34 18 31 14 17 21 34 36 73 24 24 26 32 14 29-27 33-28 21-19 19-17 35-34 18-16 29-27 14-13 17-16 20-18 33-30 33-30 70-65 22-20 24-22 28-26 32-30 14-12 Hercules Motors 18 Interchemical 19 Inter. Tel 18 Missouri K.T.pf. 60 Minn.St.P & SSM 17 Nat1. Dist. 21 N.Y.Airbrake (A) 19 Pacific Mills 25 Paramount 23 Pittston 27 Southern Rwy. 72 Universal Pic. 13 Vanadium 40 Warren Petroleum 30 Western Air.(A) 10 Western Md. 20 Western Pac. 59 18-16' 20-18 ' 17-15, 58-55 ' 17-15 21-20 20-18 25-24 23-21 !, 27-25 65-60 12-11 40-37 28-25 11-10 20-18 55-50 A – Offered by prospectus only. — , November 7, 1952 EDMUND W. TABELL , WAL!roN GOODWIN ',' ,&' HOFFIJAN This memorandum is not to be con1frued as an offer or ,olidt,ation of offers to buy or sell any lecurities From time to time Waillon, Hoffman & Goodwin may ,; , – havo upon an int(lrest In some or information beHoved all of the .ecuritllfll mentioned her.ln. The reliable but not neCl1uarily complete, Is nfoorteC)uoainrganlmeaetderia.sll has been prepared by us III accurate or final, and Is not II matter of Information only It is bued Intended to foreclole Independent inquiry 1; ,-l r.(.c ';r 1-.;,, ……1-,j,W '–'171,-' . -!… -. f..1;; ….–..' .. – .- …. . -; .. – – -cc;-7!.-S '…… ;;… '-.'; 7,,. r.,J…;' .; ,….-…, .. ..X I

r —'- – —- \,., '. ———- . –.—– Wolston.Hoffnl0n & Goodwin – -' -, NEW YORK 5, N Y )5 Wall Streef DIGBY 4-4141 PHILADELPHIA 2, PA 1420 Walnut Street PENNYPACKER s-sm LOS ANGELES 13, CALIF. 550 South Spring Street MADISON 9-3232 SAN FRANCISCO 4, CALIF 265 Montgomery Street sunER 12700 , '' -; TABELL'S MARKET LETTER , -,, t't,! I have been studying the technical action of the stock market for some twenty years and at no time during that long period has the outlook ';;;, i for the market had less meaning than in the past year. 1952 started ' with the Dow-Jones industrial average about ten points below present levelS,;; – – Yet there are a large number of investment and growth issues that are to- -4, day selling 20 to 25 lower and also a great number that are substantially above the price level of the start of the year. selling This type ),,f;o ' of action has also prevailed within the same industry. Witness the diverse';; ,' action of Seaboard Air- Line and Pennsylvania in the rail group. Seaboard ;\ , has advanced motionless. from 67 1/ Countless 2 to 109, while other examples Pennsylvania has been pra are; of course, available. c ti cal l y ;;' I!. In such a Situation, it is rather fruitless to even attempt to pro- ,,/ ject the averages. For 1951, the high was 277 and the low was 236. In ,,, — 1952, the range so far has been 281 and 255. The 1952 low was less than ,, ', 10 above the 1951 low and the highs were about the same. Yet during this ', , two-year period, the action of individual industrial issues bore little ' or no relationship to the movement of the averages. This is equally true 'j,',' '–, of the rail average and the action of individual rail issues. The only , ,possible exeption are the utilities which more or less moved with the utility average. ; It appears that this type of diverse technical action will continue — over the foreseeable future. Some issues continue to appear vulnerable .- ; 'while others have failed to show any signs of important distribution. 'Co , Other issues have declined sharply and appear to be near downside object, ives, but will need considerable time to undergo re-accumulation. Still .! , , other groups and issues have failed to move very much in either direction ',' and still indicate no signs of immediate change. I would venture the ; ' opinion that this period of consolidation, adjustmentandreaccumulation, ' ,,' will continuit wen into -19'53 and -possibly into 1954. During this time, I ..,- — doubt if the Dow-Jones industrial average will move out of an area bounded '- , , roughly by 300 and 230. As a closer approximation, I would guess 290 and -, — 240. I would also venture the opinion that the issues nioving lower will t,– outnumber the issues moving higher. Also, in the case of some unexpected -' news developments, ,the odds would favor a downward move rather than a –, sharp upswing. ' — , r All of this suggests watching the action of individual issues rather ,;'i – than the market as a whole. Proper selection could payoff rather hand- ,somely over the next two years in investment accounts as well as in specu- ' , lative accounts, but continued vigilance will be required. f.;-, I believe the action of the next six months to two years will be a ,;J prelude to a substantially higher level of stocle prices over the next four ,- to eight years. ,, ft LONG TERM INVESTMENT I continue to advise a 100 invested position ',',,'it ,in accounts concerned mainly with income and 10ng8r-term appreciation. , Holdings of sound, good quality, dividend paying issues should be retained,t- partiCL larly when bought at considerably lower price levels. The longer , term trend indicates ultimately higher price levels and good grade, issues ';.c, should continue dividend pac;;,lents at approximately present rates. Weakness ,,' ' should present buying opportunities in selected issues. ', CAPITAL APPRECIATION During the October decline to 262.01 in the Dow-Jones industrials and 96.87 in the rails, I advised increaSing in'vested positions in risk accounts concerned mainly with capital apprecia,tion over a six months period from 25-00 to 60. Would maintain this 'ratio leaving 40 liquid until further notice. '-\November 21, 1952 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN i.I'

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,-, '- – –, , Wolston.1Joffnl0n &Goodwin' , /, ,-, r' . NEW YORK 5, N, Y PHILADELPHIA 2, PA LOS ANGELES 13, CALIF SAN FRANCISCO 4, CALIF ,''t.'', 35 Wall Street '. DIGBY 44141 1420 Walnut Street PENNYPACKER 5-S'77 , TABELL'S MARKET LETTER 550 South Spring Street MADISON 9 3232 265 Montgomery Street SUTTER 127(1(1 ' In the last two years, the Dow-Jones industrial average has had , 'eleven moves of more than 5. Six have been on the upside and five have , been on the downside. Their approximate scope and dates are listed below , , ADVANCES Low Date High Date 223 Dec.1950 257 Feb.1951 plus 44 242 March,1951 264 May, 1951 plus 22 241 June, 1951 277 Sept.1951 plus 36 255 Nov. 1951 276 Jan. 1952 plus 21 255 May, 1952 281 Aug. 1952 plus 26 263 Oct. 1952 283 Nov.1952 plus 20 DECLINES High Date Low Date ;, 257 Feb.1951 242 264 May, 1951 241 March,1951 minus 13 June, 1951 minus 23 277 Sept. 1951 255 Nov. 1951 minus 22 276 Jan. 1952 255 May, 1952 minus 21 281 Aug. 1952 263 Oct. 1952 minus 18 , ;; hfr. ,j' ,,', 1 ,!-, I ,.,i..' '-''- ,;'J fJ ;it,'!!,k 7 ''.', 'f. ')' II,' )1(;,' ,,'!r , ! i ''0'' '/1 I -I,!J!, ' ',-… ',', , 0; , …. To Date. '- ,' , The rail average has had a similar series of swings although the scope , and dates have been somewhat different than that of the industrials ',' However, the action of individual issues has been quite different ';'-, ' from that of the averages. The steels, for example, re8ched their highs in ' February, 1951 when the average was only 254. The chemicals and textiles 7' , reached their highs in September, 1951 and the oils and metals in January, ' ,1952. Numerous other examples could be cited. Despite the fact that the ;; ,' avera!;es are at a new high, the groups mentioned above are still below''' theL previous highs. The leaders of the present rise to new high territory;', are different groups, such as televisions, utili ties, electrical equipment /- foods, etc. ' I expect this selective action to cor;tinue with price swings in both ;, ;',the averages and in individual issues comparable to what we have witnessed ,- , over the past two years. However, it will be noted flOOLl the table above ;,' 'that the present advance could carry somewhat further in order to reach the;, 'average time and price amplitude of the five previous advances. This is -'about in line with the technical pattern. My intermediate term technical, , indicator has reached overbought territory, but the pattern suggests that ,-' some time may be needed to build up a top and give an actual sell signal. ;' During this time, individual issues could advance, but increasing caution is indicated on new purchases. The larger part of the current rise may al- ,) 'ready have been witnessed. LONG TERM INVESTMENT I continue to advise a 100 invested position ,; 'in accounts concerned mainly with income and longer-term appreciation.Hold- , ings of sound, good quality, dividend paying issues should be retained, par;, ',ticularly when bought at considerably lower price l,','cls. The longer term f– , trend indicates ultimately higher price levels and good grade issues ShOUld!;, ' continue dividend payments at approximately present rates. c';' Present pOSitions should be held but would wait for weakness to pur- ,,,,' , chase issues in our recommended list that have advanced sharply above the ,' buying levels suggested in my letter of November 7th. CAPITAL APPRECIATION During the October decline to 262.01 in the Dow1'', Jones industrials and 96,87 in the rails, I advised increasing invested r' ,positions in risk accounts concerned mainly with capital appreciation over', a six months pericJd from 25-50 to 60. Would maintain this ratiO, leaving' 40 liquid until lrther notice. J,' For accounts that still have buying,power above 40 of funds, suggest,; the purchase of issues in my list of November 7th that have not advanced to',' .t.;',,'rapidly from levels prevailing on that date. ELLIOTT COMPANY. (29) is a case in point. It is near an upside breakout of a long potentlal accumulatl f', EDMUND W. TABELL NOhd' 1''I'd lkit,HD b'''''' 'Hm'DIHffm' GDDd; jDI ' Dff D' Df Dff. ID mo, have an interest In 10m. or all of the securities mentioned herein The foreQoing materLlIl hIlS been prepued by us at a matter of information only It IS bated upon Information b.n…..d reliable but not necuumly complete, 15 not ;uarantud as accurate or final, and is not Intended to foreclose independent InqUiry t , .. — -, il !i 1 ,1 I I i I I 1 1 I i I, ;1 1 !

HOWARD F. SCHROLL DIGBY 44141 \\Toiston.lIoffnl0n &- Goodwin;— —'— —'-;')7 NEW YORK 5, N, Y 35 Wall Street DIGBY 44141 PHILADELPHIA 2, PA 1420 Walnut Street PENNYPACKER 55977 LOS ANGELES 13, CALIF 550 South Spring Street MADISON 93232 SAN FRANCISCO 4, CALIF, 265 Montgomery Street SUTTER 1-2700 . ,,,; TABELL'S MARKET LETTER I';.- The Dow-Jones industrials have advanced some twenty-two points in .1 about a month and a half and the rails and utilities have shown even a ,., greater percentage adyailce. It would be perfectly normal technical action -' I to have some sort of a -consolidating move at this stage of the advance, if ); not a sharp correction. My intermediate term technical indicator has reach– ' – ed overbought territory but has not yet given an actual sell signal. How- ;- ',' ever, the technical formation of the averages suggests that such a signal -, may be k;iven in the next week.. – — '- -,. — – – ,,' —. ,',- '\ bONG TERM INVESTMENT I continue to advise a 100 invested position in accounts concerned mainly with income and longer term appreciation. Pre- , ,rlsent holdings of recommended issues should be retained, butloUld withhold ;'; new purchases until some consolidation or correction occurs The following ,' , issues in my recommended list can be added to holdings in t e buying ranges-' spectified. I have moved up General Railway Signal to the long term invest- '. ,, men list. Price Buying Range Price Buying Range .' Abbott Lab. (A) 48 , Allis Chalmers 57 .' American Chain 31 ; American Radiator 14 '' American Seatin 20 .'.' American Tel (AJ 160 ,; Armstrong Cork 52 ;Babcock & Wilcox 39 i Blaw Knox 18 ; Bucyru.s Erie 24 Burlington Mills 16 ,; Burroughs Add. ,,' Celanese ';, ChainBelt (A) ;. Columbia Gas (A) '-,,, Elliott Co. 16 35 34 15 29 45-42 54-52 30-28 14-13 20-18 158-156 51-49 37-35 18-17 25-23 15 17-16 36-34 Mkt. 14-13 29-28 Gen I. Rwy. Signal 33 Hall Printing 16 Joy Mfg. 33 Lone Star Cement 30 Lowenstein 31 Mont. Ward 61 Owens Ill. G. 72 Parke Davis 45 Penn. Salt (A) 50 Pfizer 34 Phillips Pete 58 Shamrock Oil Smith,A.O. 43 35 – Sylvania Elec. 41 U.S. Gypsum 113 Western Auto 53 32-30 16-15 33-32 28-27 31-30 60-57 72-70 44-42 48-45 32-30 53-50 39-37 35-33 39-37 110-105 50-47 — 1', CAPITAL APPRECIATION During the October weakness, I advised in- , -, creasing invested pOSitions iIi. risk accounts concerned mainly with capital , , appreciation over six months period to 60 invested. Would be inclined to -.-. – take a few profits and cut invested positions to 50. Remember purchases ' -, -';\ in this account are to be held for a minimum period of siX months so the F -, outlook for that period must be considered rather than the near term trading ', outlook. See the daily Walston Letter for trading advice. We are removing ;– .,; from the list Carrier Corporation which was originally recommended at 15 ,- -,; and again at 23-20 and more recently at '(27-29. At 36, the stock still looks — ,'I higher for the long term, but other issues that have not advanced so sharply.- I '-'Imay offer more attractiotl.. On the same reasoning, we are removing Southern– \ -Railway, now 79, and originally recommended in the 50-55 level. The list beY ; low should be bought on declines to the buying ranges specified. ;-.; .. – Admiral, (A) Price Buying Range Price B4'nfRange, 31 29-27 Hercules Motors 20 8- 6 ,– – Allegheny Ludlum 37 34-30 Interchemical 22 20-'-18 , BaIt. & Ohio 25 23-22 '-,;Beaunit Mil-ls- – 11' -. 19-17 Inter. Tel 20 18-17 ;- MissKan-Tex.pfd.-'62 – – . 58-55- —,—,. ; Erggs-M-fg 38 35-34 Minn.St.Pl.SSM 18 17-16 '.' Canadian Brew. 18 18-17 Nat' 1 Dist. 22 22-20 Certainteed 14 14-13 N.Y.Airbrake (A) 19 20-18 -' Chic. East.Ill. 19 18-17 Pacific Mills 26 26-25 J, Chic. Gt. West. 26 23-22 Paramount 27 25-24 ' .. Climax Molyb. 38 35-33 Pittston 36 27-25 ;;Columbia Broad. 40 37-34 Universal Pic. 13 13-12 ', Denver,Rio Grande 76 74-72 Vanadium 42 40-37 ,iEastern Airlines ';Fansteel -, Ferro (A) c Gray Mfg. 24 27 27 14 23-22 26-23 28-26 14-13 Warren Petro. Western Air (A) Western Maryland Western Pacific 33 11 22 62 30-28 11-10 21-19 57-55 ,,- '- -…….. .

Wolston.Hoffl110n &- Goodwin ',' , NEW-Y01lS N Y 35 Wall Stroet DIGBY 4..4141 PHILADELPHIA '2, PA 1420 Walnut Street PENNYPACKER 55977 LOS ANGELES 13, CALIF 550 South Spring Street MADISON 9)212 SAN FRANCISCO 4, CALIF 2b5 Montgomery Street SUTTER 1-2700 ; TAB Ell'S MARKET lETTER , .F…' l , Strength in individual issues rather than in the averages was the ', ';,feature of last week's market. The Averages were firm, however, and reached; ,',fractional new highs of 286.32 on the Dow-Jones industrials and 109.62 on ,,' ,the rails. My intermediate term technical indicator still remains in over- ',bought territory but has refused to give a definite sell signal as yet. It , -'is possible that such a signal will be given next week. Whether the result ' ,will be a correction or Simply a consolidating phase, is still open to ,question. Like the industrials, the rails have had selective action despite the ' 'fact that they have been in a steady uptrend from the June 1951 low of 7l. 78, ,,to this week's high of 109.62. The diverse action of the group is shown in ,' the two tables be10w- ,,' , ,I' ;,/ Price , Atchison 101 -'AChtli.cC.Ro.ars.t 117 69 ','iDenvel' RG 78 ,;Gt .No.pfd 'fIll. Cent. 55 82 Kan.City S. 89 Lehigh V,' 21 Seaboard 112 ,Texas Pac. 124 , 1951 1951-52 Hi, Low 69 82 64 61 44 69 49 57 46 75 52 75 57 15 9 68 47 103 77 1952 118 71 82 56 83 89 21 114 124 Price Balt.& Ohio 25 Chic.E. Ill. 20 Ch.Gt.West. 28 Chic .Mil.SP 20 Chic.No.West 18 Minn.St.Paul 19 N. Y.Central 22 N.Y.Chic.SL 49 Penn R.R. 21 West.Mary'd. 24 1951 25 33 30 28 21 26 47 26 29 1951-52 Low 16 14 18 18 15 14 16 35 17 18 The stocks in the first column are mainly better grade rails. They ,,t'eached their 1951 highs in February 1951 when the rail average topped out 'fit 90.82. After a subsequent reaction to the 1951 low, this group led the -'t'ai1 average to recent highs. In most cases, the recent ,highs are consider- ,' ,'ably above the 1951 highs. The more speculative issues in the second cO,umn ,, ,have not fared as well. In most cases they are selling below the Febaary 1951 hlghs despite the fact that the rail average is 20 above 1951 high. 1 believe the lower priced rails are behind the market and could show 'excellent percentage appreciation over the intermediate term. There are ,',several issues in my recommended list. They are – , BALTIMORE & OHIO. The upside penetration of the long trading range indicates 28 followed by a longer term 34. CHICAGO & EASTERN ILLINOIS. This issue appears to be behind the market. The technical pattern suggests 24 followed by a later 32. CHICAGO & GREAT WESTERN. This issue has already moved ahead rather ;'sharply. Its initial indication is 31 followed by 38. MINNEAPOLIS,ST.PAUL & S.STE.MARIE (SOO LINE) This issue also appears – '/ ,t;o be behind the market.lntermediate term objective is 23 and a later 29. WESTERN MARYLAND has held in the 18-24 range since 1951. An upside penetration would indicate 30 for the nearer term and 39 later. i These are all, secondary issues but believe they will show better 'percentage appreciation than the heavy capitalized low-priced Eastern ,rails. Higher priced rail issues in my recommended list are Denver, Rio )lrande & Western, now at 78, Missouri-Kansas-Texas,Preferred, now at 61, ,and Western Pacific now at 63. , '.- EDMUND W. TABELL ,December 12, 1952 WALSTON, HOFFMAN & GOODWIN -,…I -'Dow-Jones Ind. – 285.20 pow-Jones Rails – 109.37 ,,' , Thts memorandum IS not to be comtrued as all offer or ,oll citation 01 offen to buy or sell ally securltiel From time to time Wahlon, Hoffman & Goodwin may , have all interelt In some or all of the secunti mentioned herein The foregOing material has bun prepared by UI II a matter of Inlormahon only It is bued f,.,, upon Illformation believed reliable but not neceuanly complete, is not uaranteed as accurate or fln!ll, and is not intended to foreclose independent inquiry i;' CO,' ,,, ' ''''''''\, ,;' ',, ',i, ',,- ,,',',' ,,-,' , ' , ;'' ,' ,,.,;, '''''' , ,''

c– NEW YORK 5. N. Y 3S Willi Street DIGBY 44141 PHILADELPHIA 2. PAc 1420 Walnut Street PENNYPACKER 55977 '.. TABELL'S MARKET LETTER LOS ANGELES 13. CALIF 550 South Spring Street MADISON '1212 SAN FRANCISCO 4. CALIF. 2b5 Montgomery Street SUTTER I 1700 ,- ,…. Both averages again reached new high territory this week. The rails '.'.. '.;were the leaders and this average reached a new high of 111.79,as compared ',5 fwith last week's peak of 109.62. The rise in industrials was comparatively I; /'modest. This average advanced slightly above last week's high of 286.32 to ;' ;;'.reach 287.58. While the market advanced during the week, the upside momen- ;..; . tum was reduced and my intermediate term technical indicator gave a sell f' …. 'signal at Thursday's close. This does not necessarily mean that the market ',will turn down immediately, but it suggests caution and taking some profits '''.' 'in intermediate term trading accounts on strength. This, of course, does .,' not apply to long term investment holdings. '. The result of the sell signal could either be a decline or a lengthY;,,1 .. consolidation period to correct the weakened technical pattern. In the event'. 'of a decline at this stage, the next support level would be at 280-277 in ' r'i.the Dow Jones. From that point, the logical technical sequence should be a 'ally back to whatever highs are made on the present move. At that point, ; .market action should be watched closely. Inability to reach new high terri- , . 'tory, would be, of course, discouraging for the longer term. The ability to . penetrate the highs would indicate a continued advance to ap.proximately the '.' .295 area. At the moment, this appears to be the probable market pattern over,.. ,;the next two months, but circumstances may alter it. If such is the pattern; 'it is probable that the February 1953 high may be a rather important top. . .' LONG TERM INVESTMENT I continue to advise a 100 invested position k., in accounts concerned mainly with income and longer term appreciation. pre-l' .ent holdings of recommended issues should be retained, but would withhold hew purchases until some consolidation or correction occurs. f' – AMERICAN TELEPHONE & TELEGRAPH has been rather heavy recently despite; a generally rising market. The stock sold at a high of 161 3/8 earlier in i' c /the month before it sold ex-dividend the 2.25 payment. Friday's low was …. 156t. The reason for the heaviness has been profit-taking in Telephone con- .. ..vertible bonds which have advanced sharply. The convertible 2 3/4s of 1961, .. , '.for example, have advanced from a low of 106 to a recent high of 115 5/8. .., .13ecause of their investment rating, these bonds command a high loan value , –and a nine-point appreciation is substantial. Telephone securities reached , '; ..their lows early in June so holders who purchased at that time can now take ,.,. advantage of the six months holding period and take long term capital gains '.- . profit rather than the higher taxed short term profits. This profit-taking I .' weakness gives the investor an opportunity to buy American Telephone & Tele-'.- graph at a very favorable price level. At 157, the stock is selling at abou. .- .its average price of the last ten years. The yield of over 5.7 is consider-.- ia'bly above that obtainable in other utilities of comparable quality. Tech- . 'nically, for the past five years the stock has held in a narrow trading range between 138 and 163. The present pattern has an initial upside potential of ;'..' ,173 followed by a possible objective of over 200. On the downside, there is .,-. 'good support at 150. The 1952 low was 150 7/8. The stock ha reached the up-;. side potential several times in the past while paying the 9 dividend. The ,.. ;)929 high was 310. The 1937 high was 190 and the 1946 high was 200. It ;C' .woula appear reasonable to expect that A.T.& T.could sell closer to 5 yield.. ' basis. The stock would yield 5 at 180. Despite the numerous denials, it is I;. possible that the stock might be split in the future. The fact that there . are over 1 million shareholders with the vast majority holding small lots of' stock would appear to make this a feasible operation. A 4 for 1 split with 'the possibility of a 2.25 to 2.50 dividend could move the stock to the 20 .level. There is also the possibility of a distribution to stockholders of ;',. .the Western Electric subsidiary. American Telephone common stock appears to 'offer fair appreciation possibilities together with excellent defensive qual iities and good yield.It is an interesting purchase at this stage of the mar-;, ' ket pattern. .. . A number of issues in my long term investment list have reached new …- high territory recently. These include ALLIS CHALMERS, BABCOCK & WILCOX, BLAW( ; KNOX, ELLIOTT CO., GENERAL RAILWAY SIGNAL, LONE STAR CEMENT, PHILLIPS PETRO- ; LEUM, SHAMROCK OlL, SYLVANIA ELECTRIC and WESTERN AUTO SUPPLY. All of these t. ,.1ssues continue in uptrends and should be boUght on minor price concessions. .. ;,')ec ember 19, 1952 EDMUND W. TABELL i r -t, – Thh memorandum is not to b. construed al an offer or solicitation of offers to buy or F at, GoodWIn may 'f'- -;- – have an int.rest In some or 01111 of th securltllll mentiolllld hrein The foregoing matenal has been prepared by us as 0/1 matter of information only 1t IS based -xr-;- u;;f;,);;..;;;;,,-u; o,,; mPle. il ,not ;;raed rt o ';, S, ;t /oo let- ,

.',,;,; , ',' '',c;' '',''-c'y, C' Wolsion.Hoffl110n &Goodwin ' 0.,\ ,, , ' ,i-I ' -NEW 'f.QRl–S,-.N. ,'– -, –PHILADELPHIA-l PA LOS ANGELES 13, CALif, SAN fRANCISCO 4, CALIf, 35 Wo!!IlI Street 1420 Wo!!Ilnut Street 550 South Spring Street 265 Montgomery Street , DIGBY 4-4141 PENNYPACKER 55977 ,', -7' , TABELL'S MARKET LETTER MADISON 93232 SUnER 1'2700 ; i The rails pushed ahead to ,new high territory on Tuesday to reach an -; ,intra-day.peak of 113.94. This was'2.15 points above the previous week's ''high of '1,11.79. Profit taking cut down gains at the weekend. The advance l'tn the' 'industrial average, was more modest at a high of 289.18 as compared , ; Y;-ith 287.58 the previous week .. Would be inc lined to be cautious about fol- ; lowing strength at this' stage of the twenty-six point advance from the '' Octoberlciws; Some consolidation or correction may be needed to strengthen ,the marKet's technical pattern. This is evidenced by the warning sell sig- l nal given', last week by the intermediate term technical indicator. ' . Ampng the leaders in last week's rail advance were two issues in my ,';, ;recommended list — Bi).ltimore & Ohio, which reached a new high at 29 3/8, , Land Chicago & Eastern Illinois which reached a new high at 23 5/8. Baltl- ,; (more & Ohio was originally recommended at 18 and Chicago & Eastern Illinois ' iat 17. Both have approximately reached their initial objectives of 28 and ,– ',24. Both. have been held for over six months and they are possible candi- 'dates for' profit -taking. However, both issues have higher longer term po- ; (tentials of 34-35 in the case' of Baltimore & Ohio and 32 in the case of ihicago & Eastern Illinois. Some consolidation or correction may take plac,' fbefore these ,longer term objectives are reached. , Business Week recently published some interesting comparisons of the price action of Standard & Poor's various group averages. I have brought ',' ;,the data, up to date as of December 17th in the following observations. ;',-' i' It' 'is interesting to note that the index of high grade common stocks f.;; ;,has advanced ,6.7 from the preeiection level and is at a new bull market ;;' high. In comparison, the, index 0.1' low-priced common stocks has advanced ;-6.1 in,the same time period. However, the low-priced index at 188.5 is it.a l most 20 Of a below ll the its bull market high reached in 1951. groups, the following have reached new 1949-1952 highs ,' ,since 'Election Day ' ' Aircraft Manuf. Metal – Containers t, Automobiles Metal – Fabricating 5 Auto Parts Natural Gas ;',' Bituminous Coal Office Equipment ' ' Electrical Equip. Paper /' Fin1 a' nce Companies Rails 'V, Food Companies Food Chains Shipbuildi1'J.g Tires , High' Grade Commons Television – Electronics 7, ,' Machinery Utilities i, f, The fol,lowing groups failed to reach new high territory despite the ;',new highs in the averages ,',' r;j\.griCUltural Machinery, Air Transport, Auto Trucks, Building Materials, i'Carpet & Rugs, Chemicals, Confectionery, Copper, Department Stores, Dis;',tillers, ..Drugs-Ethical, Drugs-Proprietary, Fertilizers, 5 & 10 Chains, iinass . Containers, Gold MiningJ Lead-,Zinc, Leather, Low-Priced Commons, 1'.Machine ToolS, Mail Order', Mining & Smelting, Motion Pictures, Oil;)roducers, Oil-Integrated Printing & Publishing, Railroad Equipment, ',Rayon, Shipping', Shoes, Soft Drinks, Steel, Sugar, Textile Weavers, , 'Tobacco, , Vegetable Oils. )' From, my technical work, the groups in the first classification con- '',tinue to 'have interesting patterns and should be bought on price declines. i,possible exceptions ,aTe Bttumlnous Coal, Paper and Tires. ',.. Some' of the groups in the second claSSification appear to be slowly i',;building. up accumulation patterns. They are Air Transport, Building Mate- 'rials,' Dep'artnient S,tores, D'istillers, Drugs-Ethical, Gold Mining, Printing i;p.nd Publishing, Rayon 'and Textile Weavers. Would avoid the others until '. 'the pa'tterns clarify. 'I, , EDMUND W. TABELL '!Jecember' 26, 1952 WALSTON, HOFFMAN & GOODWIN ;' ',' I ',I' ' r,I', ThiS mamoro!!lndum il not to be construed o!!IS an offer or solicitation of offen to buy or sell any securities From time to time Walston, Hoffman & Goodln may 0.', have an interest in lome or all of the IIcuriti85 mentioned herein. The fore90in9 material hal been prepo!!lred by us as a matter of Information only. It is bued I. 7 upon information believed reliable but not neeenarily complete, Is not ;uo!!lro!!lnteed as accurat. or final, and il not Intended to foredose independent InqUiry. , ,,–, ,,-',, J ,.'' ' ',, , \1'- ',,o.-;;,, ,o. -Jl-t,;';' ),' 0.,- '.l,'0.'.' -, ',.-'.' ,,- ,o. 'p ;. '0..' 0. ,',' .– '( ,-J ' ,', -.,.., ,- '–(. ' '