– – – – – – – – – – – – – – – – – – – – – ——– ' ; I ''' -i I I .!- NEW YORK 5, N, Y 35 Willi Street DIGBY 44141 PHILADELPHIA 2, PA 1420 Walnut Street PENNYPACKER 5-5977 ;–, ,— TABELL'S MARKET LETTER f,' LOS ANGELES 13, CALIF 550 South Spring Street MADISON '3232 ,,'c,' cc' , , -I ,, -I ;r,'-, ' -; -…. SAN FRANCISCO 4, CALIF f,,', 2bS Montgomery Street SUTTER 12700 ;-' ,',2 c'; 5 1'- r-; ,;'-, ,It has been my belief for a considerable period of time, and it is still my belief, that we are in a long term war and postwar upward cycle ' in prices similar to that of 1914 to 1929. I believe the advance started in 1942 from 95 in the Dow-Jones average and is still headed upward The World War I advance lasted for fifteen years. Considering that, the present advance started from a relatively low level of stock prices,and after ten years of a low level ofibusiness and economic conditions,it appears reasonable to expect that the present long term advance may last some' what longer than the 1914-1929 mafket. I project it forward to approximately' 1960-1962. It also appears reasonable to expect that the 1929 high of 386 ,, will be substantially surpassed. An advance of only 40 from present levels ' would bring the industrials to thEl 1929 highs. This does not appear to be ;'' an unreasonable expectation over a period of the next eight years. Many;' ', issues are now selling considerably above 1929 levels. Quite obviously – such an advance will not be in a straight line. ;\; c' ,' eleven In the moves o f last more two years, than 5. StihxElIhDavoew-bJeoennesonintdhuesturpiasildeavaenradgefivheashhavade , been on the downside. However, the action of individual issues has been , quite different from that of the averages. The steels, for example, reached '-, their highs in February, 1951 wherl the average was only 254. The chemicals .-' c and textiles reached their 'in January, 1952. I expect highs in September, 1951 this selective action to and the oils and continue in 1953 metals with r, Fmoves in both directions by both the averages and by individual stocks. I do not expect 1953 to be a bull of a bear year, but rather a combination ofr 'both with private bull and bear markets in individual securities. ,' I, Since 1949, I have stated Ititat the market leaders would be the high grade blue chip issues with the speculative issues doing little or nothing This has been the pattern up to now. I believe the market leaders on advan-, cing phases over the next two yearl.s will be the light blue chips — the ,,, issues slightly below the quality lof the blue chips. These are issues with t, good dividend records, good growth prospects and high yields. There are a / ',great many that have just started Ito move. I do not believe the very specu- '-; –,lative, low-priced issues are reaqy to move ahead on a broad scale. They ,;; will come into the picture at a l!j-ter date after the consolidating and re- i ' adjusting phase is completed. Group action in 1953 will be extremely diverse, 'and selection will be all important. ,c Listed below are a number !of issues that I believe fit into the 5 ,– light blue chip or speculative investment category I 12 Mos. , ;-;; American Chain & Cable 'I Price Div. 30 2.50 Yield 8.3 ; ;–, Armstrong Cork Babcock & Wilcox Bendix Aviation Blaw Knox Briggs Mfg. Bucyrus Erie Crane Company General Railway Signal Hall Printing Joy Manufacturing Lowenstein Penn-Dixie Cement Smith, A.O. Vanadium 53 3.10 5.8 37 2.00 A 5.3 A 61 3.75 6.1 18 1.25 7.0 37 3.00 8.1 25 2.00 8.0 31 2.25 7.3 35 2.50 7.1 16 1.30 8.1 36 3.12 8.7 33 2.00 6.0 32 2.00 6.1 35 2.00 5.7 43 2.40 5.6 I, ,' Western Auto Supply 56 3.75 6.7 ,, , II ' I January 2, 1953 A Plus stock dividend. EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN , , .- ' '',–,- ,; '-, Thh memorandum II not to b. construed as an offer or solicitation of offers to buy or sell any securities from time to time Walston, Hoffman & Goodwin may hav an 1ntrst in lome or all of the securities menhoned hrein. The foreQoing matrlal has been prepared by us as a matter of Information only It is baled , . . ,-. 1 …,. ';; ,,,,, . . '. …'''';. ',. '''''', ;. –

-. \ ; ,' ,, , 'c NEW YORK 5, N. Y PHILADELPHIA 2, PA 35 Wall Street .. ; ; DIGBY 4-4141 ,; f 1420 Walnut Street PENNYPACKER S 5977 0- . TABELL'S MARKET LETTER — -,- ,''.,'./';,,I' ,. LOS ANGELES I J, CALIF. SAN FRANCISCO 4, CALIF 550 South Spring Street 2b5 Montgomery Street MADISON 9 3232 SUTTER 12700 '' The market declined sharp on Friday with the Dow-Jones industrials ,'.' reaching a low of 286.09 and rails falling to 108.47. This is a de' f cline of almost nlne points froml the recent 295.06 high in the industrials; 'and a drop of six points from t;h'e 113.94 high on the rails. At the lows, ;., ! the industrials had lost only a , 25 of the thirty-two pOint rise from ;'' the October lows. The rails retraced about 30 of their seventeen point , ' ,rise. Normal technical correctionSusually retrace a third to a half of the I advance so the decline could carry down to 284-280 and 108-105. However, !', ;', no important tops have been formed as yet. This would require more time. Action of the market should be watched closely on the next rally. \,- LONG TERM INVESTMENT I cohtinue to advise a 100 invested position . ; in accounts concerned mainly withl income and longer term appreciation. Pre-';;, sent holdings of recommended iSsuys should be retained, but would add to , -', holdings only during periods of market weakness. The following issues appea, I 'attractive around present levels , , OTIS ELEVATOR (39) appears to be an attractive issue for longer term, ,,',holding. 'Ehe 1950 low was 30. Sinpe then the stock has been in a slow up- .', r'-'i,utrpesnidde. For almost two penetration to years the stock held in the 41 1/2 indipates a probable 35-39 range. The recent move to the 45-55 area. \ ,There is downside support at 38-31. The' stock yields 6.4 on the 2.50 f,; ';dividend. Earnings for 1952 are estimated at Slightly above 4.00 a share. ') . In risk accounts concerned ainly with CAPITAL APPRECIATIOH over a F' . ,', six months period, I advised in December that invested positons be cut .' ; from 60 to 50. Remember purchass in this account are to be held for a'.;.! tminimum period of six months so that the outlook for that period must be ;;. ). considered rather than the near term trading outlook. On advances to the ; 295-300 area in the Dow-Jones industrials, would be inclined to further i; ; cut invested pOSition to 33 1/3.1 ,., '-i ; The WESTERN MARYLAND(28 1/2) was recommended in the 21-19 buying area. stock has been strong recently and reached a high of 29 1/2 on Friday. ,.-i- –lOn my technical work, the upside penetration of 18-24 base indicates a ,., .;potential of 30 followed by 38. Whether it will be necessary for the stock ', ;. to consolidate before attempting to reach 38 is problematicaL The stock '' 'would meet strong support on the downside at 25. The longer'term objective , of this issue is considerabl;r higher. ( ) ., NORTHWEST AIRLINES (14) has I been a laggard issue for a long time. '/ ,,', Like all the airlines, it declined sharply from the 1945-1946 highs. In '; the case of Northwestern, the decline was from 63 1/2 to 7 in 1949. The ,.; I, ,stock shows signs of forming a base pattern of considerable size. It has ',held in an area bounded roughly by 12 and 16 since 1951. There is consi- derable overhead supply at 20-22 hat would undoubtedly temporarily halt 'any advance but the potential base suggests a long term possibility of higher levels. The issue presentsian intersting speculation long term capital appreciation. The stock pays no dividend so if income is of im- portance, suggest Northwest Airlines preferred which is convertible into ,1 1/2 shares of common. The prefrred is selling at 23 3/4 as against a value of 21 for 1 1/2 shares of common. The preferred has paid divi',dends intermittently but is cumulative. Quarerly dividends are 28 3/4 .or 1.15 annually to yield approximately 4.8. It should advance 1 1/2 ;'points for every 1 point advance in the common. .I I EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN January 9, 1953 ' -I ',0 . , ;- – /! This memorandum is not to be construed as an offer or solicitation of offefs to buy or sell any seCUrities From t.me to time Waldon, Hoffman & Good…. n may ,'( have an Interest in lome or aJl of the ,ecuritles mentioned herein. The fore90ln9 mllter..,r has been prepared by UI III II mtltter of informllhon only. It IS bllsed l,, ;. upon Informlltlon believed reliable but not neuutlflly complete, is not ;Iuaranteed al accurate or final, lind is not .ntended to foreclose Independent InqUiry /f., -',,- , ' ',' -,' ','2',!,'' ',',,!';.,i.,,t) ',,tJ ' ',',,' , , '''- ,-.. -.,. . '-, ;' -','-'.,. -,',,- ,''- ,',, -'-.,.', ,',;-!'' ,,-,' I

Walstoll.Hofflll011. &- Goodwin 4'W-N.c a/dcerUetl -….. -., ..7, i ' NEW YORK 5, N, Y. ,', 35 Wall Street ' DIGBY -4141 PHILADELPHIA 2, PA 1420 Walnut Street PENNYPACKER 5-5m '1 ! TABELL'S MARKET LETTER ,; ,, I, LOS ANGELES 13, CALIF 550 Sopth Spring Street MADISON '3232 SAN FRANCISCO 4, CALIF 265 Montgomery Street SUTTER 12700 ..h,…, ., 'J ,\ , ' At Monday's lows of 284.29 n the Dow-Jones industrials and 108.42 in.; ,;the rails, both averages had ret ed about one-third of the advance from ,, ,'late October. Both averages also Id above the support levels mentioned in ;';last week I s letter. These support ranges are at 284-280 in the industrials '. – and at 108-105 in the rails. So ,the technical action has been good, but ' ,,;the market mU2!; be watched close I on the next rally. Inability to push ,;,. ;.,through the 290-295 area on the se,cond attempt would indicate the need of ' . . a larger correction than the recent relatively mild decline. ;. ,i The light blue chips mentined in my 1953 market outlook have shown .,; , ,above average action recently. Not only have they advanced moderately with,. ;,, several reaching new high territorIy, but they have also shown excellent ' . . 'downside resistance during periodS of market weakness. This favorable actioiL-. ,;'should continue. Many of the highr grade blue chips have reached levels , I',that have amply discounted the pre1 sent favorable earnings and growth possi-'' , ,,bilities. Yields on issues of this type are down to 2-4 level. The light'.. (plue chips, while of lesser investment quality, are available to yield ,.' , .from 5 1/2 to 8. However, these 'light blue chips are also of good invest-,,, ment quality. Elliott Company, foJ example, has paid some dividend each ,year since 1905. It also has grOl'lth as witness an increase of sales from .;.' J5.20 million in 1940 to 40.32 mllion in 1951. Also its research projects.; !,en gas tm'bines could result in a !considerable increase in sales in the ;,future., j , I am listing below a number of isses that are in the light blue f, L dhip category. The upside objectLves are from my technical graphs and are, 7,,' ;bf course, for the very long term !of the next several years. However, some ., ';'of the issues like General Railway, Signal, that show a relatively moderate price advance, may achieve their 0lbjectives over the intermediate term. ,,. hFitch iRating \..; BB B ,, B BB BB BB , BB ,, B ',; B /, B ' BB ;'; B \. BB B BI,' .. BB ,. B ;'; B ; B B 'I BB ,'- B , 13;-' ,iii B ,! BB Allis Chalmers Alpha Port ,Cement, Amer1can Chain American Radiator Armstrong Cork Babcock & IHlcox Bendix Aviation Blaw Knox Briggs Mfg. Bucyrus Erie Crane Company Eagle Picher Lead Electric Autolite' Elliott Company GeniI Rwy.Signal Hall Printing Joy Mfg. Lowenstein National Gypsum New York Airbrake Otis Elevator penn-D.(Lie clement Smith A.O. Vanadium West Auto Supply ; 1952-53 Upside Esti. .yo Price Range Pro,L.. 52 Earn. Div. Yield 578 ,6 \ 5/386146t 60 90 . 2400 4 .00 7 , O ,;, 4 49y- – 75 't. 3 0 0 6.2 ' 32 822-27 1/8 50-60 4.05 2. 50 .8 -.. 15 ;t6 341.6-1331'-!80250-35 10705 1025 .4 L. 52 57- 2 -;' 5.3 3.10 5.9 ,. 37 39t-3lt 55-65 6.00 A-2.00 5.3-A.'.. 61 64-45 1/8 0-90 6.50 19 9 y1t-157;8 40-45 2.75 3.75 6.1 .' 1025 6.6 . 39 39 3/4-33 70-80 5.00 3.00 7.9 25 27 5/8-22t 35-40 31 38t-28 5/8 60-65 3.00 3,75 h.2.00 8.0 ,., 2.25 67 . 3 22 25-19 32-3'; 3.00 1050.9, 54 t6t-443/4 63-70 6.75 3.00 5.5 31 1325;8-245,13 50-60 5.50 2.10 6.8 37 37 3/4-25 45-50 4.50 2.50 7.1 17 17t-15t 25-30 3 7 B'8 VIi -3l11 70-8 0 32 33 7/8-2't 55-60 22 23t-18t 35-40 2.47 5. 40 5.75 3,20 L30 7.6 3.122' 8 .5 2.00 6 1 1.40 6 3 \Ii;,',.;,, ;'; 21 2218 35-50 39 326 3413 ;2 2- 33 5 3f 65-70 55-60 3 38y-32;yv 6 0,-70 2.60 4,70 4.25 5.00 1.60 2.50 2.00 2,00 7.6 6.5 6.1 5.5 .t 'J, , 42 45r34 55-60 3.60 2,40 5.7 (c,; 54 562 -46 3;13 80-90 6 50 3075 6.9 A – Pls Stock Dividend. EDMUND W. TABELL WALS'I'ON, HOFFMAN & GOODWIN , ,… 'I' ,,'\, '., L-;;t; This memorandum is not to b, cOnJlrued liS /In offer or solultaflon of offrs to buy or sell /Iny lecuTHill' From time to trme W/llsto. HoHman & Good!,'n may 1, .\.,',-' o. nl, ; hu L1pon an int.rest in information some or bell.ud .al.lIoaf',t'h,e..securitt.ienseamsentrioInY edoher.e'in.The forego/iIngmell.te.riual, hur.beeenpfre/pIa'r-;e;d/1by,1u1s,noa's, ,/,ItmnadtetedrtofOInfoCrmIlltlonly.eItt 15,. bua!red ''''''t-'''',-,.'7'—d–' -\j—, ,-, 4

f — Wolsion.Hoffnl0n &- Goodwin, NEWyO-RK 5, N\', nV/,,''M/,M'C cYecmn'ed .. . ..-..– -' – PHILADELPHIA 2, PA LOS ANGELES 13, CALIf, SAN fRANCISCO 4, CALIf 35 Willi Street 1420 Walnut Street 550 South Spring Street 265 Montgomery Street DIGBY 4.4141 i'-''''r'' PENNYPACKER 55977 ', TAB Ell'S MARKET lETTER MADISON '232 SUTTER '2700 , 'i' t',I', I, The averages have held in ther narrow trading areas after reach- – — ring January highs of 295.06 and 113'.94. News developments may cause a move – !in either direction, but do not believe the industrial averages will move much more than ten points or the ails five pOints in either direction over, ithe near future. A mixed market i in prospect and individual issues should ;'be watched rather than the averages. -, ,,, LONG TER1 INVESTMENT I continue to advise a 100 invested position ', ;;in accounts concerned mainly, withl income and longer term appreciation, Pre- ,sent holdings of recommended issues should be retained but would withhold ,'neVI purchases until the buyng raJjlgs noted below are reached I, Buying Buying ' , Price Range Price Range 'Abbott Lab.(P) 46 45-42 Elliott Co. 32 32-30 !;Allis Chalmers 58 55'53 General Rwy.Signal 36 34-33 fAlpha Port .Cement 48 46-44 Hall Printing 17 17-16 ;,l'l.mer.Chain ' Cable ,American Radiator American Seating 33 15 23 30-28 14-13 20-18 Joy Mfg. Lone Star Cement Lowenstein 37 30 36-34 29-28 ,- 32 31-30 American Tel 160 lS!2-156i Montgomery Ward 63 61-60 ,il.rmstrong Cork 53 51'49\ National Gypsum 22 21-20 'i3abcock & Wilcox 36 35-33 New York Airbrake (p) 21 20-19 I31aw Knox 19 19-18 I Otis Elevator 40 39-38 ,Briggs Mfg. '-Bucyrus Erie 39 38''36 Owens Ill.Glas's 25 2523 Parke Davis 80 77-75 42 42-40 LBu;'lington Mills 16 16.,.15 Pennsylvania Salt (p) 50 50-48 ,Burroughs Add. ')Celanese i-Chain Belt (p) 17 36 17-16 3634 Pfizer (Chas.) Phillips Petroleum 30 61 31-28 58-55 ,- 35 3533 t Shamrock Oil 39 37-36 ;,Columbia Gas (p) 15 14-131 Smith, A . 0 . 3 6 36-34 \' '/CI'aneCo. (.-'Eagle Picher f'IElec'CYiC Auto Lite 31 22 55 31-291 21-20 53 ll Sylvania Elec. U,S . Gypsum 38 119 Western Auto Supply 54 38-36 115-112 ,;— 53-11 i'- ' CAPITAL APPRECIATION In riSk accounts concerned mainly with capital -,,-,appreciation over a six-month period, I advise a 50 invested pOSition with– ;,the remaining 50 kept liquid to a,wait buying opportunities. On further ' strength to the 295-300 area would further lighten accounts to 33 1/3 in- i— tvested Buying Buying — /, t'Admil'al (p) Price Range I 31 30–29 I Interchemical VPrice Range ;' 23 21-20 ('Allegheny LudL1n 37 34-30 I Inter. Tel 19 ,'Dc,c.&;Ohio 28 25-241 Minn.St.Paul&SSM 18 18-17 I 18-17\ ;Bealnit Mills 19 18-17 I Miss-Kan-Tex,pfd. 65 63-60 '— , Canadian Brewing 19 Mkt National Distillers 23 22-20 '1 Certainteed ,-CChhiicc .East. .Great Illinois Western i''Climax Molybdenum iCoi.umbia Broad. 14 22 25 37 40 14-13 ' 21-19 25-231 36 -34 38-36 N9rthwest Airlines Pacific Mills Paramount Pictures Penn-Dixie Cement Pittston Co 14 27 27 34 30 14-13 L,27 -25 26-25 \o ,;,' 32-30 29-27 t– /'Collins & Aikman 21 20'18 1 Universal Pictures 15 14-13 1' ;.. Den,;er, Rio Grande ,,Eas,ern Airlines ;'-Fansteel -,',Ferro Corp. (p), 80 26 28 28 78–76 25-24 28-27 28-26 Vanadium Corp. Warren Petroleum Western Airlines (p) Western Maryland 42 34 12 28 42-40 ), 33-31 1,-' 11-10 26-25 hri–'- r,Gray Mfg. 19 18-17 Western Pacific 62 57-55 k, ;Hercules Motors 18 18-17 (p) .- ,Offered by prosp/,ctus only, copy of which ;,,,', is available' by '\ir'equest. t' ;i EDMUND W. TABELL ', 'Janllary 23, 1953 WALSTON! HOFFMAN & GOODWIN j-I This memorandum 11 not to be construed 0/1, an offer or solicitation of offrs to buy or sell any securities. from 'Ime to time Waldon, Hoffman & GoodWin may -F,', l ( have In interest In lome or all of the securities mentioned herein. The foregOing materllil hIlS been prepo/lred by us o!IS lI mlltter of Information only I' IS based , ;. upon Information believed reliable but not necelsarily complete, Is no uiUanteed 0111 accurate or final, and b not Intended to foreclose independent inquiry. I, t'-, -', ,- '' – -7'' -'- Iy!;,t. -, -'.1,',1 ', 7' I ',' ''- , 1,' ,', -,' ,,' – ' , ',- . , 7' '.f' 0-0' , — ',) – — – ' ' ,,-.f

, ,\',' ;;,; — ,- – – ' '- ' ,-!.,,I',!t' ,I NEW YORK 5. N. Y , 35 WlI Street PHILADELPHIA 2, PA 1420 Walnut Street ' DIGBY 44141 PENNYPACKER 55977 f. ' -,. TABELL'S MARKET LETTER LOS ANGELES 13, CALIF. 550 South Spring Street MADISON 9-3232 SAN FRANCISCO 4. CALIF. 265 Montgomery Street SUTTER I 2700 !- i (' The market has broken out 'i, since early January and appears ;of 295.06 in the Dow-Jones indusVlJ,a.O shelf in which it has held a probable testing of the highs 113.94 in the rails. However, , – ,the advance has been selective must continuously be stressed that ithe action of individual issues i much more important than that of the /- averages. , ,-,'-…..-' , The leaders in the e 1949 have mainly been the blue '' – chip investment issues. These issues' have been showing excellent ;;, 1- price advances but are reaching \ rat.her low as, for example – t Present point where the yields obtainable are Present ,); ,, – ' , Allied Chemical Price Yie , 74 4.05 Goodrich Price 79 Yield 3.35 ,, -, ,'-Aluminum Co.Amer. 94 3.19' Minnesota Mining 46 2.11 – AmE'rican Can 34 4.12 Monsanto Chemical 94 2.66 ,, ' ' i Corning Glass -Dow Chemical 77 41 2.60 2.44, Owens Ill. Glass 79 Pitts.Plate Glass 53 5.06 3.77 ,,-'- ;–DuP'ont 100 3.55 Procter & Gamble 67 3.88 , Ger,eral Electric 69 4. 351 Union Carbide 72 3.47 ,estill In contrast there are available on a 5 1/2 a to re7lalYilt2iveylyie lar ld ge number of basis. These issues issues that are are not of .- the same highgrade investment quality as the issues noted. They are a i ;grade or so below and might be caled the light blue chips. From a tech- (' nical point of view, they have formed potential accumulation patterns that ' indicate the possibility of substartial percentage advance over the longer ,, Lterm. Also, it would appear that these issues are not too vulnerable in ' the event of a market decline. Thy have not advanced too sharply and ' there are support levels not far brlOW present market. The table below' ;-indicates the long term upside potential and support levels on a number , of issues of this type. 'I , ,- FITCH SUPPORT UPSIDE POSSIBLE POSSIBLE !- RATING PRICE YIElD ; B B Allis Chalmers 58 6JB B Alpha Port. C. 48 6.2 AREA OBJECT. ADVANCE 54-50 90 35 45-40 65-75 53 DEC1LI5NE' 18 i- B American Chain 33 7.5 27-25 50-60 90 25 BB Amer.Radiator 15 8.5 14-12 25-35 L BB Armstrong Cork 54 5.7 50-46 85-95 BB Babcock & Wil. 38 5.3-A 37-33 55-65 130 74 40 20 15 13 t,,—– BB Bendix B Blaw Knox 63 6.1 90 50-45 19 6.1 17-15 30-45 48 136 27 21 . -,' I , B Briggs Mfg. 42 7.1 35-32 70-80 95 24 B Bucyrus Erie 26 7.8 23-20 40-35 58 22 BB Crane Co. 32 7.0 30-28 50-60 90 12 B Eagle Picher 22 6.8 21-19 32-39 '\ BB Electric Auto. 55 5.4 50-45 63-70 B Elliott Co. 32 6.1, 30-28 50-60 77 27 87 12 10 12 , ,' B Gen'l Rwy.Sig. 34 7. 32-28 45-50 47 17 , BB Ha1i Printing 16 8.1 16-14 30-36 125 12 B Joy'Mfg. 38 8.2 33-30 60-70 84 21 B Lowenstein 33 5.9 30-25 55 67 23 .B Nat'l Gypsum 22 6.3 20-18 35-40 82 18 B N.Y. Airbrake 21 7.8 19-17 33-48 154 19 BB Otis Elevator 40 6.3 37-35 60 50 12 B Penn-Dixie C. 33 6.0 30-26 39-58 75 21 BB Smith, (A.O) , B Vanadium 36 5.6 32-28 60-70 42 5. 37 – 35 55-60 94 42 19 16 BB West'Auto Sup. 54 6.8 50-45 80-90 62 16 .– January 30, 1953 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN A – Plus Stock. P – Offered b,y prospectus only, copy of which is available, by request. ,- r , lhls memorandum is not to be construed as an oller or solicitation of off.f. to buy or Jell any securities From time to time Wahton, Hoffan & Good!'ln may oIIYa an int.red In lome or 0lil11 of the securities mentioned herein The foregoing material hal been preparCld by UI al a m4tter of Information only It II b!lsed j' . ;;;;;.-.;;.. ' .t' 'JI'';..,';\; . ,,; '';,.'''' —…….,…. — – –

, I Walston Hofflll011 c.. Goodwln ',- , ,,-''' ,–,',-,)….- ,I,', ',' H' ',,-;', ',' ,,, ,,,,, , – ,;.'. , , ' . , '…. ', i –'F',,-'0.', ;,,- ',,;',,p.. ,',-'-''0,, oIeoprdeed — , NEW YORK 5, N, Y 3S Wall Street PHILADELPHIA Z, PA 1420 Walnut Street DIGBY 44141 ( PENNYPACKER 5-5977 I1'- ABELL'S MARKET LETTER ; LOS ANGELES 'l, CALIF 550 South Spring Street MADISON 93232 SAN FRANCISCO 4, CALIF 265 Montgomery Street SUTTER 12700 ,,' The market declined to lows 282.14 on the Dow-Jones industrials and 107.58 on the rails and penetrat d the January lows of 284.29 and 108.42. ;,' his confirms that the intermed te trend has been down since the January -' highs of 295.06 and 113,94. Supp should be met not too far below present-' levels. In the industrial a I, I would expect 277-275 to be the next ;, ,' support level. This would be an I oximate two-thirds correction of the c;' thirty-two point rise from the October lows. The down count indications on;' my graphs also point to about ths level. In addition, this area is a good\; support pOint as it is just about the level of the October, 1951 high of ,',' 277.51, the January 1952 high of1276.26 and the August 1952 high of 281.47,,, The decline might halt at 281, but 277-275 appears more logical. On the i;; rails, it would appear that 105-103 would be the support level. ' However, as I have mentioned many times before, the action of the aver- ;;, 'sm; idiCri1rmeOe;htpesi; i;; ' Would concentrate on individual issues and suggest the purchase of issues ; in my recommended list at the buYing levels outlined in recent letters. , WARNER BROTHERS, now selling at 13 3/8, appears to' be an interesting ' issue for long term capital appreciation. There are already three moving , ptcture issues in our recommended list for capital appreciation over a pe- ;,- rlod of six months or longer. TheI se issues are Columbia Pictures, Paramount-,' P tctures and Universal Pictures. 1I believe Warner Bros. can also be added to the list of recommended issue. ;;. f– i' Stockholders of Warner plan of reorganization to Bros. split whiel l be asked on company into February 17th to ratify a two units. One unit will iT- ' be called Warner Bros. Pictures and will take over the production and dis- F'' tribution of the company's domestic film business and all the foreign as- i' ; sets. The other unit will be the IStanley Corp. which will control all the f , ' theatres and miscellaneous assets of the old company. Each holder of pre- ,,' slmt stock will receive, for each share held, one-half of one share of ,', each of the new companies. Therefore, a holder of 100 shares of present k'' , Warner Bros. will have 50 shares lof Warner Bros. Pictures and 50 shares of; – Stanley Warner Corp, If the stockholders ratify the plan, the reorganiza- '; tLon will be effective as of February 28th. — Some idea of the value of the Inew securities can be gathered from the ii,,,;- sale of the personal holdings of 'the Warner brothers in Stanley Warner 1' Corp. The brothers were obliged o sell their interests in either of their ;; t10 holdings by a Consent Decree Igoverning They chose to retain Warner Bros.1 Pictures the and break-up sold the o ir f s the tock c ompany, in Stanle y ii'-'' '- Warner Corp. for 11.12 a share t,o the Fabian interests. Based on the pric,;, oJ'13 for the old stock, this would indicate avaluation of about 15 for i-, the new Warner Bros. Pictures. nhs would appe-ar to be a very reasonable – ', price. Most of the earnings of Wa!rner Bros. in recent years have been ' C ontri but e d by the picture clompany. The pro-forma earnings statements ', recently released for the two new, companies indicate that the picture com- –,,' ', pany earned 2.86 a a share in the same share in 1952 while the theatre period. When !dividend action is company e taken on arne the dnewonplyic6-Ji,,-i ture comany, it is possible that, the dividend may be increased from the ' c,- present for the ljil paid theatre on the old company. The price company appears nigh based on paid by the earnings of 6FJaibaianshianrete. r ests How- Y,fft ever, the balance sheet shows that Stanley Warner has a book value of ap- ; proximately 30 a share representd largely by cash or by real estate 1J, h;;.ving a market value very close o depreciated book value. ;i. From a technical Viewpoint, there is no way of telling the indicated , ',- ps,ttern of each of the two new companies. However, the technical formation i', of' the old stock is favorable. Th'e indication is 28-32 if the long poten- ,' t1al accumulation area between 10'1 and 16 is penetrated on the upside. ,; Based on the improved outlook ,for new television films and the sale and ;-; rE'ntal to TV of' old films, the new Warner Bros, Pictures should be an inte, !I-' resting holding for long term appeciatlon and income. The Stanley Warner 1\ Corp., at approximately one-third the realization value, should also prove ,- , – interesting for long term capital gains. Advise purchase of old Warner ,'- BI'OS. at present market of 13. EDMUND W. TABELL ,', E.e'brua ry 6, 1953 WA rsTON & CO. ii, , his memorandum is not to b. construed in 'In offer Dr solicitation of offr' to buy or selt lInY securities From time to lime Wahlen, HoHman & Goodwin may I/k – tlave u Interast In some or all of the securities mentioned herein. The foregOing material has bean prepoIIfed by us ,51 II matter of Information only It is based il, upon information believd reliablfl but not neceu4rily complet., IS nol ;uaranfd as accurate or fiMI, .and is not intended to foreclose lndependel'1t inqUiry, — l , ' – ', ', ,'-' —jj,,,i!'i;;c,-,–,'''—';'''-'-''';',i'''''''''' -,,,–, '''-,' ,,'—-,'- ' '– ,-, , '; -' ,, — ,, ,,'-,,- ,e;';' ,- ,-',e,', -,,,,,;,, , I

—————————————– —— WJIston &- Co. ,– LMtJllnt DeC(vu/teJ.; j ,. 'MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS\ANGELES SAN FRANCISCO LUGANO (Sw,.,Id) OFFICES COAST TO COAST CONNECTEr;; BY OIRECT PRIVATE WIRE SYSTEM I TABELL'S MARKET LETTER , ) In observing the action of individual issues during the decline,it becomes quite evident that the sebondary issues are showing better market performance than the higher gradej issues. The sharp price advance in the blue chips, and the resulting low yields,have made these issues somewhat ,vulnerable. The light blue chips, selling at six or seven times earnings 'and yielding 6 to 8, appear less vulnerable. ERMLONG INVESTMENT In\accounts concerned mainly with income and' longer term price appreciation, would advise a 75 invested position in 'common stocks and 25 in short te governments in order to take advantage 'of possible buying opportunities uring the year. I Buying Buying Price Range Price Range Abbott Lab. 42 42-40 Elliott Co. 32 32-30 Allis Chalmers 'Alpha Port.Cement Am,r. Chain & Cable 56 57-50 45 46-44 32 30-28 General RwY.Signal 34 Hall Printing 16 Joy Mfg. 38 34-33 17-16 36-34 American Radiator American Seating' 15 14-i3 22 20-i8 Lone Star Cement Lowenstein 30 31 29-28 31-30 Am,r. Tel '& Tel. Armstr.ong Cork 'Babcock & Wilcox Blaw Knox Brlggs Mfg. Bueyrus Erie Burlington Mills BUJroughs Add. 160 158';156 Mont. Ward 60 49 51-9 National Gypsum 21 39 35-33 19 19-18 N,Y. Air Brake (p) 20 Otis Elevator 41 41 39-37 Owens Ill.Glass 79 25 25-23 Parke Davis 40 14 15-ll4 Penn. Salt (p) 48 17 17-ll6 Pfizer (Chas.) 30 60-55 21-20 20-19 39-38 77-75 42-40 48-46 30-28 Celanese Chain Belt (p) Columbia Gas 33 34-32 34 35-33 14 14-3 Phillips Petroleum 62 Shamrock Oil 38 Smith, A.O. 36 58-55 37-36 35-33 Crane Company Eagle Picher Elec. Auto Lite 30 31-2'9 23 22-21 54 53-511 I Sylvania Elec.(P) 36 37-36 U,S. Gypsum .' 116 115-112 Western Auto Supply 56 53-51 CAPITAL APPRECIATION In risk accounts concerned mainly with capital appreciation over a six-month period,I advise a 50 invested position with the remaining 50 kept liquid to await buying opportunities. On further strength to invested the 290-300 area wouldI further lighten accounts to 33 1/3 Buyi,ng Price Range Buying Price Range Admiral (p) 29 29-28 Interchemical 22 21-20 Allegheny Ludlum BaH. 'c; Ohio 35 34-30 27 25-24 Int. Tel & Tel Minn.St.Pl & SSM 18 18 18-17 18-17 Beaunit Mills 18 18-17 Miss.Kan.Texas,pfd. 64 63-60 Canadian Brewing 20 Mkt! National Distillers 20 21-20 Certain-teed 14 14-J13 Northwest Airlines 13 14-13 Chlc .East Illinois 20 20-9 Pacific Mills 25 26-25 Chic,Great Western 23 24-22 Paramount Pictures 28 26-25 CHmax Molybdenum 38 36-34 'Penn Dixie Cement 33 32-30 Columbia Broad 40 38-36 Pittston Company 29 29-27 Collins & Aikman 21 20-8 Universal Pictures 15 14-13 Denver;Rio Grande 80 78-i Vanadium Corp. 40 40-38 Eantern Airlines 26 25-24 Warren Petroleum 35 33-31 Fansteel Metal. 26 28-2;7 Western Airlines (p) 12 11-10 Ferro Corp. 26 27-2,5 Western Maryland 30 26-25 'Gray Mfg. 20 18-107 Western Pacific 61 57-55 Hercules Motors 18 18-17 February 13, 1953 I EDMUND W. TABELL WALSTON & CO. I offer-;;-;;lemorandum is not to be construed as an offer or solie'lation of to buy or seU .!Iny securities From time to time Waldon & Co, or !Iny partner thereof, may haye an Interest in some or !III of the securilles mentioned herein The foregoing m'lterial has been prepared by us .15 matter of Information only It, based upon information believed reli!lble but not neceu!ITlly complete, is n'of guaranteed as accur'lte or final, !Ind h not intended to foreclose independent InqulTy

( Walston &- Co. .- – ,- – 1e4)7lent I DutvwuJ-. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES .— — NEW YORK PHILADELPHIA LOS IANGELES SAN FRANCISCO LUGANO ISwihed.nd) OFFICES COAST TO COAS1 CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER As far as the Dow-Jones Industrial Average is concerned, volume indications suggest that the marketlmay remain in the 285-275 trading area for a considerable period of time. However, the technical patterns of individual issues and groups are quite diverse and I would expect worthwhile moves in both directions in various indiviual issues during the waiting period. BLAW-KNOX (19 3/4). saleslin 1952 reached the largest dollar volume of business in its history. Shipments and billings should total about 168 million. Profits too will Feach alnear high record despite the shutdown of five plants during part of the steel strike and the inability to obtain comensating price increases to offset higher costs. Net in 1952 rose to about 2.75. Backlog about 150 millioni , Blaw-Knox is a virtual department store for heavy industry. The company designs and builds plantsifor the chemical, petroleum and gas in,dustries; it manufactures castings for the steel, automotive, oil refining, cement, paper and other industrie; it designs and manufactures radio and TV towers and prefab steel buildings and construction machinery; it produce3 equipment for rolling mills; it manufactures food processing equipment, evaporators, dryers, distillation!and solvent recovery equipment. It is also 'an important factor in atomic plant construction. , The company paid quarterly dividends of 25i for a total of 1.25. Reeently the 9-uarterly dividend was raised to 30i thus placing the company on a regular j\1.20 basis. Whether lor not this will be augmented by an extra will depend on earnings at the year-end. On the 1.20 rate, the yield is C'oughly 6 at the present price o 19 3/4. The technical pattern is excellent. The stock appears to be forming a very strong potential base pattern. An upside breakout to 21 would indica1;e 28-33 followed by a long teI'lI\ 41-46. From a technical viewpoint, this 'is an outstandingly attractive iss,ue. ELLIOTT COMPANY (32) was organized in 1901 and is an established manufacturer of steam turbines, el'ectric generators, and electric motors; is the leading manufacturer in thel United States of turbo-charges used to supercharge four-cycle diesel engihes; and also manufactures a variety of related products such as'deaerating heaters, steam condensers, steam jet ejectors, centrifugal blowers, strf3.iners, tube cleaners and accessory and ot)er equipment. Its products are ),lsed principally in the production of 'Power in stationary installations and in locomotive and marine use. Its maln competition is from General EClectric and Westinghouse. Even though thls competition is formidable, thr company has held its own. Net sales have increased from 5.2 million in 1940 to an estimated 50mlllion in 1952. Although company is small, it haS paid some dividend every year since 1905. I The comparison between Ellott and its two chief competitors is in- teresting I Price Dividend Yield Est.1952 Earnings General Electric Westinghouse Elec. Elliott Company 68 45 32 3.00 2.00 2.10 4.4 4.4 6.5 5.10 4.35 5.25 Despite the better investment quality of General Electric and West- inghouse, it would appear that the! price spread over Elliott Company is not entirely justified. 'I From a technical viewpoint, Elliott has a strong pattern. The stock appears to be in a slow uptrend channel. The outer limits are now 28 and 38. The intermediate term objectiv is 42 and the longer term objective is , 50-60. The long term upside potential is 80 above the present price of 33 '.. and the downside risk appears to b 15. \I EDMUND W. TABELL February 20, 1953 WALSTON & CO. \ This memorandum is not to be construed liS an offer or solie tation of offefs to buy or sell any securities from time to time Walston & Co, or any partner thereof, may have an Interest In some or all of the securities mentioned herein iThe foregoing material has been prepared by us as iI matter of infrmatlon only It. is belled upon information believed reliable but not necessrily comDlete, 15 not guaranteed as accurate or final, and IS not Intended to forecloe Independent InqUiry 1

, …. .- '' i Walston &- Co. ' – – , —…….'.-(hl;';!–N'iC',;—–….–'-,—-,,-….,.–,' ,– I ,MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw;t..,lond I COS,TOFFICES COAST TO CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM , TABELL'S MARKET LETTER .. After giving a good performance most of the past week, the market ,,appears to be meeting the expectd resistance at about 285 in the Dow-Jones , , industrials. Ability to push thr,ough this area on volume would indicate a ,',further advance to the 290-295 overhead resistance. The alternative would '-,,'be' a decline to the 277-275 area.1 If this latter level is reached in the he'xt two weeks, the market would be in oversold territory. However, continue , to stress watching action of indiividual issues rather than the averages. ' ' Would buy recommended issues durihg periods of market weakness and sell un- , fa,vorable issues , of' strength. with long term pIatterns such as the coppers during periods , T' NEW YORK AIR BRAKE (20 1/2) was incorporated in 1890 and is one of the two major domestic suppliers 6f air brakes and replacement parts to the ,nation 1 s railroads. The company abcounts for 25 to 30 of such equipment 'produced. However, the company isi no longer entirely dependent on this ex- , tremely cyclical railroad equipmeht business. In recent years it has pur- sued a policy of diversification and its air brake business now is a minor 'part of total output. Since 1949,1 it has purchased four companies in the field of hydraulic, vacuum and liquids handling pumps and accessories and , the sales of this division are now approximately 65 of the total. This greatly expands the earnings posslbilities of the company. The field of hydraulic transroission and control of power has hardly been scratched and has tremendous growth prospects. These pumps are used in one or more appli- ,,cations on 95 of the cOlmtry' s military aircraft. The use of high vacuums ,– 'also has enormous possibilities nbt only in electronics but also in the pharmaceutical, 'fields. chemical, metalluIrgical, food processing and atomic energy All in all, the company hs a much more interesting potential than the old railroad equipment company which, nevertheless, had an above aver- 'age record in its industry. Theseinew deve20pments do not appear to be reflected in the present price of 20 1/2 and the generous yield of 7.8 'based on 1.60 dividend payment wfuich appears well covered by the 2.85 eat'ned for 1952. The stock is also attractive from a technical point of view. A lery strong potential head and shoulders bottom has been formed over the –,past five years at the lows of 17113-17. An upside penetration of the 1951 , -top of 23 would indicate an intermediate term 28-33 followed by a long term, ',' 45-50. The stock appears to be an linteresting high yield capital apprecia- tion issue I ,', , WESTERN AUTO SUPPLY (55). isales reached new peak levels in 1952 and , alL indications pOint to a continuation of this growth in 1953. As a result , of aggressive management, the company has shown one of the strongest sales ','; and earnings growth trends in the Iretail field. 1952 sales were fifteen , times as great as in 1927 and net lincome increased seven times despite sharply higher corporate taxes. The company is a large auto accessory, home appliance and sporting oods retailer. It owns 276 compariy stores and has 2,740 associate stores 11 tindependently owned, franchised units). The company also operates whole- sale houses. Western Auto Supply stores cover the entire country with the ., exeeption of eleven far western states. Sporting goods and toys account for 2596 of sales, auto-accessories and tires contribute 20. Another 25 of ' ', sai.es ,from are in household garden tools and eqa.pupiplimaenncte. s)I TV and electrical equipment, and 10 are ' Funded debt is 12.75 milion and is followed by 751,368 shares of CODon. Earnings for 1952 were 6.131 a share. Dividend payments totalled 3.75 and the stock yields about 71. Elimination of EPT would help earnings. 19;2 EPT tax liability was 331 a s'hare. The technical pattern is favorable. The stock reached a high of 90 1/2 in 1946. In recent years, t!he stock has formed a potental accutnU'la- ',tion area with an upside objective of 80-90. There is 'strongdownside sup- port in 50-45 area. EDMUND W. TABELL February 27, 1953 WALSTON & CO. I- Thil memorandum II not to b. construed as an, offer or lolldtlltlon of offe to buy or S(!I! any securities From lim to time Walston & Co. or any partner thereof, .. . may have an lnternt In some or aU of the .ecuritles mentioMd herein The 10r&goll1g material has been prcpured by IU as a miHtcr of information only It is -,t … .. b.ued upon information believed reliable but not necessarily comDlete, Is not guaranteed as accurate or final, 'Ind is not .ntended to h. dose independent Inquiry c . . . . . . . . . . . . . -. , , . ' , 1 . .. . …… ;…. . ..;…… .. ,- '-'- .. – – . … , '.., ,,.

Walston &Co. ,dl..jI71nt c5ec((/uEte.J.. MEMBERS NEW YORK STOCK EXCHA-N…G.- EIANOOTH-ER LEADING. STOCK AND C-OMMODITY EXCHANGES – NEW YORK PHILADELPHIA LOS /ANGELES SAN FRANCISCO LUGANO (Sw,t,.,I.,dl OFfiCES COAST TO COAST CONNECTE BY DIRECT PRIVATE WIRE SYSTEM I TABELL'S MARKET LETTER ,-. – MISSOURI-KANSAS-TEXAS,PREFERRED (69) with its high accumulation of back dividends, is practically a 'common stock. As of the end of 1952, back dividends totalled 147 1/2 per share of preferred. Thus the prefer- red has a claim of 247 1/2 ahead! of the present common stock. The road managed to keep out of receivership in the 1930s and has gradually impl'oved its financial position. TH,e back interest on the adjustment bonds was finally cleared away last year by cash payments. As the preferred stock is cumulative, the net earnings now all accrue to preferred stockholders. With accumulations totalling over 147.50 and the preferred en' ti.tled to a 7.00 annual dividend, this places the common stock in a very unfavorable position. There have been various plans submitted to clear awqy- these arrearages, but no plan can be adopted without the majority approval of the corrunon stockholders. Unless they assent to a recapitalization plan, all net earnings will accrue to the senior shareholders. This places the preferre'd stock in a very favorable position as compared with the common. EarniJgs for 1952 equalled 11.32. An initial dLvidend of 1.25, the first in rriore than twenty years, was paid on January 5, 1953 and another 1.25 will go ex March 11, payable April 1. It appears that this will be a re'gular quarterly rate and, at the present pl'ice of 69, the stock yields 7.2. With earnings prospects good, the pl'obability of the full 7.00 diviidend is not entirely remote. – The territory served shows excellent Igrowth. The road runs south from St. Louis and Kansas City to Dallas, ,Fort Worth, Houston and San Antonio. The technical pattern is fvorable. The longer term objective is 95-105 with a nearer term possiblity of 75-80. The 60-50 area should fmnish good support and would bel an excellent buying range. SMITH (A.O.)CORP. (34) has!a diversified line of products. Its principal customers are automobile manufacturers, petroleum drillers and dlstrlbutors, hydro-electric plants and public utilities, construction contractors and farmers and consumers. Among its products are auto frames and parts; petroleum pipeS, casings and gauges; fabricated parts; centrifugal and turbine pumps; elech'ic motors; large volume gas water heate's and agricultural storage lunits, Smith's growth has been abqve average in the auto accessory field. It has pursued an aggressive polilcy of new product development and because of this, dividends have beEin modest in relation to earnings. The company has conducted a large eansion program also with plant account rising from 10.2 million in 1945 to 29.8 million in 1952. The expanston program will be completed bi the end of 1953, after which shareholders may look for larger dividends. Both sales and earnings fot the fiscal year ended July 31st, 1952 declined from the previous year. I'This was due largely to the steel strike. Also, CMF restrictions held down sales to the civilian automotive industries. While first half earnings jof 1.21 were poor due to conditions noted above, this should be made lup during the balance of the year. 1953 earnings are estimated at 4.50-5.00 as compared with 5.02 in 1952. Dividends of 2.00 a share were paid in 1952 to yield 5.9 at the present p'rice of 34. Book value is about 63. The technical pattern is good. A high of 48 was reached in 1946 and a low of 19 in 1947 and 1949. The stock has recently held in the 39-33 area. An upside penetration would indicate 46-53 for the intermediate It'I'Ill. The long term obj ec tive is i60-70. There is very good downside support at 32-28. EDMUND W. TABELL WALSTON & CO. March 6, 1953 Til s memorandum is not to bE! construed as an offer or soll!;'tation of o'ffers to buy or sell any securities From time to time Waldon & Co, or any partner thereof, mll, live an Interest til some or … 11 of the securities mentioned herein The foregOing matenal has been preplired by us as a matter of information only. It IS b.ned upon Informahon believed reliilble but not necessarily tomplete, lIS not gUllfllnteed as lIccurate or fin.,l, and is not Intended to foreclose independent inqUiry I c