r, MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Swdaodl OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TAB ELL'S MARKET LETTER The Dow-J-ones iilaustrials were unable to penetrate the overhead re- ,oj ilta.;,ce and, in five successive days of decline, lost most of the gains Lrcm the April low of 269.25. The week's low was 270.65. The rails put in better performance and, at the week's low of 104.53, were more than three , point B above 'i;he April low of 101.02. , Tre marlet' s inability to move ahead is a bit discouraging, but the volume on t08 decline was small. The market picture has not changed. In- . di vl1\l!3.I iseues will continue to have their own individual bull and bear ma-r'ke-cs tnciependently of the general trend. A group that still appears to be in a downtrend is the oils. Readers of ttis letter are familiar with my reiterated advices since late 1951 to sell this rou1;l. Some of the declines have been substantial since that time a Hitr!,2'3 – 1951-19x Hi.b. Recent Low Decline Amerada 235 161 3l;b Clties 3ervice 120 1/2 -Jid-Co;-l'i;inent ecroleum 81 3/4 80 5/8 57 5/8 30 30 Sta.nc; . Oil of' Indiana S' t an-I. Oil of rr.J. 92 85 69 7/C 68 I 24 20/a!. .Some of the declines have already been of bear market proportions,but .'rom a technical viel-lpoint, many of the oil and petroleum issues still look 1 ower. 8,uotec below are a number of examples frol11 my Technical Analysis of' the Price Action of 400 Common Stocks. Approx. DOI1nside Upside Possible Possible Price Yield Poten. Poten. Advance Decline !V,Co1tinental Pete. 60 6.7 50-45 65-66 Stanc1.01l of rr. J. 71 6.0 67-58 72-75 25 18 The diocouraging part of the technical patterns of this group is that f.'1;e1' the declines occur, it may require considerable time to build up new base )2.tterns. This has often happened in the past. For example, Socony i.;ac;uum held for almost five years between 1945 and 1950 in an area bounded ',clUg'.-J;f by 14 and 20 in building up the base necessary for the rise to 40. 1\ l('!lg 'eaccumulation period may occur again after the stock reaches its low. t;'h,re i'3 also heavy overhead supply above the market in most oils so it 1Olld 8.ppear that any near term advance would be limited to 6 to 10 in r,0f't, cass. This does not necessarily mean that all oil stocks are going to -,)(1111. ,special 13ituations like Pacific lestern Oil could move higher on 0e\'clopnent in its new field. Other discovery situations both in Canada and be' could rie in price on news developments. However, it appears that the 1ol'gc) ojl companies still have unfavorable patterns and should either be .0Jd o stregth or switched into other situations with more favorable pros- )ec t;. 'or example, the two issues below appear to have better appreciation por.'3'bi.lities and defensive Qualities than the two issues listed above ,.pprox. Downside 'Jps.de Possible Possible tJ,;,dh Aviation -P-ric-e Yield 60 6.3 Poten. Poten. Advance Decline 55-52 80-90 50 13 Jobns r8,nville 63 6.6 63-59 85-100 59 7 Other possible slitches include Price Yield j\tlantic Refining CO'1clnental Oil (;J1 f on Ll;r.bla n…,-lL, 01'0 on -UJ.; IJt 1 Shell Oil )tand.Cil of Ind. 30ony Vacuum Sunr'ay Oil Texae Company Unicn on of Cal. 29 57 46 66 54 55 69 70 34 19 54 40 69 4.4 4.3 3.3 5.6 if, 5 4.4 3.5 5.8 6.2 5.4 5.0 IL'I'G lue Yl'US J 1I'1e -P-rzicre- Allis Chalmers 53 Vanadium 40 Great North.pfd. 55 Alpha Port.C. 48 Armstrong Cork 54 Louis & Nash. 61 Chic.Rock Island 74 Crane Company 31 Blaw Knox 20 Elec.Auto Lite 46 Babcock & Wil. 39 Yield 7.4- 7.5 6.0 7.3 6.3 5.7 7.4 5.4 7.3 6.3 6.5 5.1 EDMUND W. TABELL hay 29, 1953 WALSTON & CO. This book is not for general distribution, but is available for PQ'saJ at ymlr nearest Walston Office ThiS memor.. ndum IS not to be condrUCId as !In offer or solicihtion of oHers to buy or sell !Iny securIties. From time fo time W!Ilston & Co. or !Iny partner thereof, may have an mterut In some or III of the securities mentioned herein The foragomg matenoal has bllen prepared by us 4S a matter of Information only It I blsed upon information believed reliable but not necessarily complete, is nof guaranteed as accurate or final, lind IS nof intended to foreclose Independent inqUiry

— – – – – – – – – – – – – – – – – – – – – – – – – – – – – Walston &- Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISwI.d..dl OFFICES COAST TO COAST CONNECTEG BY DIRECT PRIVATE WIRE SYSTEM TAB ELL'S MARKET LETTER I I, During the past week, the Dow-Jones Industrial Average broke below the April low of 269.25 to reach 266.17 on Thursday. The rail average, at the weeks low of 101.70 managed to hold above its April low of 101.02. This action is discouraging in thesense that the potential base patt- ern in the industrials between 270 and 280 has been destroyed and it would appear that the base must be formed at a slightly lower level. At just what area the base will be formed is not yet clear. The whole area from 270 to 250 s a strong support zone. From 1951 to date, the market has had six advances and six declines of intermediate-term proportions. The present decline is another phase of the broad area of adjustment and consolidation that the market has been uncter- going for two years. During this process, many groups and issues have had declines of bear market proportions while other groups have advanced to new high territory. These alternate advances and declines, while probably aot yet completed, are slowly strengthening the general market pattern des- pite the fact that the various averages have had only a mild decline. Al- though a number of issues still have vulnerable technical patterns, the num- ber is much less than in 1951. A large number of the situations that were vulnerable at that time have already suffered severe declines and have eahed or are approaching their downside objectives. While the process may not yet be completed, the stock market has undergone a considerable correc- tion in individual issues, during the past two years despite the seemingly Small decline in the various averages. The adjustment has been in a piece- meal fashion and individual stocks have reached their lows at different times. In the 1951 to 1953 period, if all the stocks in the Dow-Jones Indus- trial Average reached their lows on the same day, the average would have reached a low of about 225 in comparison with the present price level of 268. . Severe declines have also occurred in the other two basic price areas of our economy. The commodity market has had a severe decline from the 1951 higns and the average price of 22 basic commodities has declined over 35 from the 1951 high and is now below the pre-Korean level. Bond prices have also dropped sharply from the 1951 highs. There is no certainty that these adjustments are completed, but certainly it would appear t,hat commodity priees and bond prices are much leas vulnerable at pr-esent levels than they were in 1951. Going back to the stock market, the general technical pattern appears to .lndicate.that we are not on the verge of a roaring bull market but neither are we near a bear market catacylism. In my 1953 forecast, I suggested that the range for 1953 would be roughly between 300 and 250 in the Dew-Jones Industrials. I thinkwe can safely extend this range for another six months to mid 1954. The series of alternate advances and declines will continue untll the entire stock market pattern has consolidated and adjusted to new conditions. There will, be bull markets in some individual issues and bear markets in others. Before 1953 is over many issues will reach new low terri- tory for the year but many others will reach new highs, My advice for the moment is forget about the averages and concentrate on individual issues. Every declining phase of the past two years has been an opportunity to aguire the stocks with favorable technical patterns at modest price concessions. Every advancing phase has been an opportunity to liquidate issues with un- favorable technical patterns on rallies. For example, Carrier Corporation, ilhieh has been in an uptrend since early 1952, has had successive moves of 21,;'7,25,36,34,39,37,44,40,44,40. On the other hand, Cerro de Pasco, which reaehed its upside objective in late 1951, has had successive moves of 58, 51,58,46,48,40,45,35,38,26,28,24. For immediate purchase, I favor the issues in my recommended list that are in the light blue chips category. They are the issues slightly below top quality that have advanced only moderately in price over the past two yeal's but have sizeable long term price all'reciation potent'ialities and are avaLlable at prices to yield 6 to 8. They have suffered only mild declines in the recent price correction. Regular readers of this letter are familiar with these issues. I suggest that others visit the hearest Walston office for my latest recommended list. ' EDMUND W, TABELL June 5, 1953 WALSTON & CO. ' This memor.. ,dum i not to be COnltrued /IS /In oHer or solICItation of offers to buy or sell any StlCUrltl(!S From time to time Waldon & Co, or ny prtner therllof, mollV havll an rntllret In !lome or III of the securitres mentioned herein The foregOing material ha!l been prepared by us I!I a mattllT of IOformalron only It 1 bened upon rnformaiFon believed reliable but not necessarrly comDlete, is not guardoteed as CCUIltc or finat, clod IS not mtended to forllcloe Independent Inqurry

Walston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,'wld) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TAB ELL'S MARKET LETTER – – -,..- —– i Both the Dow-Jones Industrials and the rails broke to new lows for th IIr.nove during the past week. The industrials, at the weeks low of 260.89, had declined below the October 1952 low of 262.01 but were still above the Nov,, ember 1951 and May 1952 lows of 254.91 and254.70. The rail average at I the weeks low of 99.82 was still above the October, 1952 low of 6.7. The question of the week has been Are we in a bear market To the owners of stocks in textiles, ethical drugs, metals, distillers, Oils, Elugars, farm machinery, coal, carpets and other groups this is an easy questioTl to answer. These groups reached their highs anywhere from nine months to more than two years ago and have since suffered declines of bear market proportions. When the innumerable issues that have done little or nothing marketwise are added to the groups listed above, it would seem that it is a little late to talk about a bear market As I have suggested many times before, it would appear advisable to forget about the market and the averages and concentrate on the action of individual stocks. There have been individual bear markets and indivi- dual bull markets occurring simultaneously for over two years and I expect this action to continue for at least another year. During that period, I doubt if the averages move out of the 300-250 range. The only average that makes much sense today is the utility average The stocks in this average act much more as a unit than the industrials or rails. The utility average reached a high of 5414 in March and has declined to a low of 47.90 during the week. The weakness has been due al- most entirely to the major change in interest rates and the declines in income securities. From a technical point of view, it would appear that the- utilities are quite close to major support levels and should be bought on further weakness. In terms of the utility average, I would expect strong support in the 47-45 area. The downside potential of a number of utilities ape noted below. DOWNSIDE 1953 – -PRICE YlLD OBJECTIVE HIGH Carolina Power & Light (p) Central Illinois Light Columbus & Southern Ohio (p) 35 5.7 35-33 43 36 6.1 35-33 42 1/4 24 5.8 23-22 26 7/8 Commonwealth Edison 33 5.4 33-31 37 3/8 Consolidated Edison 36 6.1 35 40 5/8 Consolidated Gas of Baltimore 24 5.8 24-22 28 Dayton Power & Light 34 5.9 34-31 38 1/8 Houston Lightin, 23 4.3 22-21 26 1/4 Idaho Power (p 42 4.7 40-3 48 1/4 Lllinois Power Iowa-Illinois Gas & Electric 65.'4 36-3 27 41 3/4 31 7/8 Iowa Power & Light 23 6.1 23-20 26 5/8 Mtnnesota Power 35 6.3 35-32 40 1/4 Montana Power 27 5.9 27-24 32 1/4 Ohio Edison (p) 35 6.3 35 39 3/4 . mlahoma Gas 24 6.3 24-21 28 ; Pacific Gas & Electric 36 5.6 36-33 40 Pennsylvania Power & Light 31 6.5 31-29 35 7/8 Public Service of Colorado 27 52 27-25 33 Public Service of Indiana (p) 32 5.6 31-30 36 1/4 . Southern California Edjson (p) Texas Utilities P) 34 38 59 5.0 35-33 40-38 3497 35 8 Ut.ah Power & Ligh Vjrginia Electric 4 6.2 5.8 29-26 23-22 34 5/8 27 3/8 i Wisconsin Electric 25 5.6 24 29 3/8 These issues should be of interest to those investors concerned mainly with income return rather than capital appreciation. However, even a return over a period of time to the highs of early 1953 would be a worthwhile price move. June 12, 1953 (p) Prospectus available on request. EDMUND W. TABELL WALSTON & COMPANY 1 I ) my memor''ldum IS not have an inter-O! In to'be 50'me construEd as an offer or or all -of – the feCl..lrlfie's ollcilahon mentioned of offers to herein The f buy or slIlI any oregoing mater sIiei IcuhralshesbeenFropmreptlilmree.dtobyhmulsl Wahton & Co, a5 I matter -of olrnfanHymatplaorntnoenr tyh-e-rHeo.fs, ' based upon Information believed rehable but not necessarily tomolete, IS not gUIHanfeed as iltcurate or fmal, ilnd IS not,. Intended to foretlose Independent inquiry d

Walston &- Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,t,ld) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM UBELL'S MARKET LETTER June 19, 1953 The lows of the past week, 260.75 on the Dow-Jones Industrials and '99.06 on the rails reached on Tuesday, were approximately the same as those of the previous week when 260.89 and 99.22 were the intra-day lows. 'This, in effect, creates a minor double bottom. To strengthen this pos- sibility is the fact that the breadth of the market data has turned more faorable. On June 9h, the volume totalled 2,200,000 shares and there were 1,006 declines and 470 new lows. On last Tuesdays drop, the volume was only 1,370,000 shares with 577 declines and 253 new lows. Thus it wO'.lld appear that liquidating pressure is waning. The drop to 890,000 shares traded on Friday indicates that the market is at least temporarily oversold. Stocks that turn in a good market performance during declining phases of the market are usually the first to recover when the trend is reversed. The Dow-Jones Industrials reached a low of 269.25 late in April. This was followed by a decline to 260.75 last week. Yet despite this 8.50 decline there were over 300 stocks listed on the New York Stock Exchange that suc- ceeded in holding above their April lows or lows reached ealier in the year. It might be interesting to see what some of these stocks are . First, there were 29 issues in my recommended list that followed this faorable pattern. There were a great many others that reached new lows by only a small fraction but these were the ones that actually held above .previous lows. LONG TERM INVESTMENT Alpha Portland Cement American News 'Armstrong Cork Babcock & Wilcox Bucyrus Erie Burlington Mills Chain Belt Chicago, Rock Island Cornell Dubilier 47 33 54 38 26 12-) 31 171 21 Corn Products Refining Great Northern, Pfd. Hall Printing Hewitt Robins Louisville & Nashville Lowenstein Shamrock Oil Vick Chemical 69 54 17 26 64 33 39 25 CAPITAL APPRECIATION Beaunit Mills 19 Greer Hydraullcs Bell & Howell 20 Interchemical Canadian Brewing 19 Minn,St.Paul & SSM Columbia Broad. A 42 New York Central Denver, Rio Grande Fansteel 78 28 Penn Dixie Cement Standard Packaging () – Listed on the American Stock Exchange 17 23 13 23 33 14 These issues should continue to show above average action when the advance is resumed. Possibly the most favorable group action was in the tobacco products goup. Of fifteen issues charted, ten held above previous lows. Food stocks also held very well. There are many sub-classifications in this group in'cluding soft drinks and confectionary, but of a total of 54 issues, 26 held 'above previous lows and the downside penetrations on the many of the remaining issues was only fractional. Excellent action was also shown by retail store groups – both department stores and food chains. 9 out of 16 ,department store stocks held as did 7 out of 9 food chains. Other favorable groups were brewing issues, can stocks, cement, shoes,telephone & telegraph., Most of the above groups are defensive in nature. However, some of the more dynamic groups also kept their trend intact. This is true of a number 'of rail issues. The following are among those that held above previous lows ,in addition to those in my recommended list above.- Central of Georgia, 'Chicago & Northwest, Lackawana, Gulf Mobile & OhiO, Illinois Central, Min- .neapolis & St. Louis, Northern Pacific, Reading, Frisco and Southern Railwy. Other favorable groups include floor coverings, glass, machinery, metal products, printing & publishing and motion pictures. Also some sugars1 'metals and textiles appear oversold. EDMUND W. TABELL WALSTON & COMPANY Thl memorAndum IS not to be construed as an offer or solicittion of offers to buy or sell ony sec UTI ties From time to lime Wahlon & Co , or any partner thereof, m,IY have an Intor!!st In some or all -of tile securities mentioned lIereln The foregOing material lIa5 been prepared by us as II mattor of information only It is based upon information beheved rehable but not necessarily complete, IS not guaranteed as accurate or final, and is not Int&nded to foreclose independent InqUiry

Walston &Uo. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISw;,I.,d) OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM 1'ABELL'S MARKET LETTER – . ……- June 26, 1953 The stock market during the past week continued its advance from the June lows. At the week's high of 270.31, the Dow Jones Industrials had regained approximately 28 of the decline from the January high of 295.06 to the recent June low of 260.75. The rail average, at 106.32, showed a better recovery with a retracement of roughly 46 of the decline from 113.94 to 99.06. A normal technical recovery in an intermediate trend can r'etrace from one third to two thirds of the previous move without changing the trend. In the present situation, the indllstrials could recover to the 27)-283 level and the rails to the 104-109 area without changing the down'crend that has been in effect since January. Market action, as far as the aVE'rages are concerned, should be watched closely over the coming ,weeks. On the industrial average, there is moderate upside resistance, at the 275 -2EiO area and very heavy supply at 280 to 290. There is heavy supply in thE' rails in the 108-113 range. These areas more or less coincide with the onE'-third to two-thirds retracement objectives. These areas must be penebra.ted before the long term advance can be resumed. Whether they can be penetrated in the near future Qr' whether a longer perlod of consolidation is needed is, of course, problematical. ,When the price action of individual stocks and groups is observed, the pattern is quite different from that of the various averages. While the averages reached their highs less than six months ago, many groups have been in downtrends for over two years. For example, the steels reached their highs early in 1951 as did the sugars,railway equipments and auto trucks. Other groups like the textiles and farm machinery issues topped out in late 1951. The oils and metals reached their'highs in early 1952. Some of these groups have declined to long term support levels and have most likely reached their lows. Others appear to need further adjustment. This selective action of the past two years more or less coincides 'with the attitude adopted by this letter. I have been more or less cautious since 1951. My technical work at that time indicated that a great many issues had vulnerable patterns. One by one, and at various times, many of these patterns have worked out and the issues have reached or are close to downside objectives. Others still have further to go. That is why, in my Forecast for 1953, I expected the consolidating and re-adjustment phase that started overtwo years ago to continue into 1953 with a price range between 300 and 250. (for 1953 to date the range has been 295 and 260). I expect this action to continue into mid-1954 with some groups moving moderately – higher and others moderately lower. As noted in last weeks letter, this selective action continued during the June decline. Despite the fact that the averages broke ten pOints below the April low, over three hundred individual isslles held above their earlier 1953 lows. These issues mainly are the tobacco, food, soft drink, retail stores, food chains, cement, shoes, communications etc. Most of these groups are defenSive in nature but other issues tin the ratl, machin- ery, aluminum, glass and motion picture groups also held above previous lows. On the unfavorable side only fourteen out of fifty oils held above pre,ious lows. Most of the issues that held were spec1.al situations. UnfalOrable action was shown also by the t1.re and rubber stocks. Only one out of nine issues charted held above previous lows. EDMUND W0 TABELL WALSTON & COMPANY ThIS emorandum is not to be construed as an offer or solicitation of offers to buy or sell any securities From time to time Walston & Co, or any partner thereo!, , may have an Interest In some or all of the lecuflties mentioned herem The foregOing matenal has been prepared by s as matter of Inf)Tmatlon only It IS based upon information believed reliable but not necenarily complete, h not gu.!!ranteed as accur.!!te or fin.!!l, and Is not Intended to foreclose mdependent InqUlTy I \ 1-

Walston &- Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,t,ld I OFFICES COAST TO COAST CONNECTEG BY DIRECT PRIVATE WIRE SYSTEM l'ABELLT'She MmAaRrKkEeTt LcEonntEiRnued its creeping advance during the week on small trading. On only one day did the volume of transactions reach the million share mark. At the week's high, the industrial average was approaching a one-third retracement of the thirty-five point decline from the January hi.ghs. The rails, of course, have already recovered half of tlJeir compar- al)le losses. I would expect a mild continuation of the advance over the 'lear term with, as usual, extreme selectivity. The building supply stocks have done little marketwise for over four years, despite the fact that the building industry has been experiencing a Gerrific boom both in the residential and industrial sectors and 1953 volume 1B expected to top that of 1952. The fear of an anticipated decline in con- st;ruction has held back building supply issues to the point where they cer- tainly do not appear overvalued. From a technical viewpoint, quite a number of building issues appear relatively attractive. They have done little marketwise since we included them in my recommended list over two years ago, but, on the other hand, they have acted very well defensively and the yields have been excellent. The present technical patterns are still constructive. Sizeable potential accu- mulation areas have been formed and most issues appear to be not too vul- nerable in case of a general market decline. The table below illustrates I;he present technical patterns of a number of selected building supply iEsues. The upside potentials and percentage advances are obviously for the long term and not for immediate act jon – Downside Upside Possible Possible Price Yield Support Potential Advance Decline 'American Radiator 14 7.1 13-12 22-25 78 14 Crane Co. Johns Manville 29 6.8 29-27 60 6.6 60-55 50-60 85-100 100 66 10 10 Na.tional Gypsum 21 6.6 1918 35-42 100 15 Otis Elevator U. S. Gypsum 40 6.2 39-37 45-65 106 7.0 100-96 170-180 62 70 10 10 Ya.le & Towne 36 6.9 33-32 60-66 82 10 These issues are recommended for patient long term holding and for good yield. A technical synopsis of these issues are outlined below. AMERICAN RADIATOR (14) This stock appears to be building up a strong potenlal base pattern in the 10-17 area. While no immediate move is indicated, the eventual objective is 25 foJlowed by 35. There is some temporary supply i1' the 20-22 range. Would buy on all price declines. Action may be very slow. Tbere is support at 13-12. eoCRANE COMPANY (29) The upside objective was attained at the high of 42 reach in 195. Stock held in 38-42 area. Downside penetration indicated 29. 1952 low was 29. Buy on all dips. Stock appears to be forming wide head and shoulders bottom with upside objective of 60 or better. The 29..34 potential base indicates a possible 38-43. There is support at 29-27. 7JO8H-7N3S MANVILLE (60'Stock reached its first objective at 78 in 1952. Held in area. The downside penetration indicates 63-58 where stock should be taught. Recent low was 60. Would buy on price declines as long term object- ive is 85 to 100. NATIONAL GYPSUM (21) While there is no indication of an immediate move, stock appears to have formed a strong base pattern in 12-25 area. There is an i!'1'itial objective of 32-35 followed by a later 42. Buy on all price dips. Tbere is support at 19-18. 01'IS ELEVATOR (40) Stock has been in a slow uptrend since 1950. Held in the 3539 range. The upside penetration indicates 45-49. Long term objective is 60-65. 1953 high was 45. Buy on dips. There is support at 39-37. U. S. GYPSUM (106) Stock appears to be building a strong potential base pattern in the broad 90-135 area. Upside implications are not clear,but are Substantial. Would buy on declines to 107-101 area. Recent low was 106. YALE & TOWNE (36) At 1951 high of 48 stock had about reached objective. Th cp formed indicated 36-34. 1952 low was 33. There is possibility of a broad head and shoulders bottom pattern at 33-20-33, with an indication'of 66 fo1 lowed by 82. Recently held in 33-40 area. An upside penetration would indi- cae 45-51 over the intermediate term. EDMUND W. TABELL Jl11y 3. 1953 WALSTON & CO. Thl memorandum IS not 10 be construed as an offer or 50 licitation of offers to buy or sell any SeCUrities From time to time Wahlon & Co, r any artner thereof, may have an Interest ,n !orne or all of the securities mentioned herein The foregOing material has been prepo!Ired by U as a matler of Information, only II IS boned upon ,nformatlon believed reliable but not necessarily complete, n not guaranteed as accurate or final, and IS not Intended to foreclose Hldepenoent Inq\nry

i——— — ————– Walston &- Co. — MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISwH,Id) OfFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM -rABELL'S MARKET LETTER At the week's high of 272.83, the Dow-Jones industrials had regained .approximately one-third of the roughly 35-point decline from the January bigh of 295.06 to the June low of 260.75. This is the minimum normal retra- ac e mb ee nt tt eirn gaa i nd oawnndt rhe na vde. The rails, at the week's high of retraced 61 of their comparable 108.34, have shown 15-point decline. his is near the maximum two-thirds retracement of the previous decline. Thus, both averages are in a position to furnish a clue to near term action .. Strength in the rails that could carry to 110 would probably indicate at least a testing of the January high of 113.94. Failure of the industrials to- pU8h above the one-third minimum retracement would indicate definite weak- ne8S that would most likely carry over to the rails. Neither the short term or the intermediate term indicator is near overbought territory, so the mar- .ket could advance further without either index becoming vulnerable. Both in- dicators signalled a buy in June. At the moment, a sell signal would be given only by a decline or an inability to move ahead over the next two or three weeks. It would appear that news developments are needed to break the resent stalemate. Despite the fact that the averages are at historically high levels, a -gre,;.t many individual stocks are selling lower than in May, 1946 when the DOI-Jones industrial average was at 213 as compared with 270 at the present 1;ime. Out of 941 of the more activily traded issues on both the New York Stock Exchange and the American Stock Exchange, only 327 or 35 were selling above their 1946 highs. 65 are selling lower. Furthermore, 41 are selling l)eow their 1951 lows when the industrial average reached a low of 240. Only 26 of the total, or 27, show they are in a long term uptrend by holding above both the 1946 highs and the 1951 lows. A partial list of these issues is appended below. This is not necessarily a recommendation for purchase, despite the fact that several of these issues are in my recommended list. However, issues in this list have shown above average long term action and should be watched closely during periods of general market weakness for ad- vantageous buying levels. The partial list follows .Alpha Port .Cement Admiral Corp. Allied Chemical Aluminium,Dtd. Aluminum Co.Amer. Amerada AmErican Can Amer.Gas & Elec. Amer.Hawaiian S.S. ArneI'. Republics Arvin Industries ilteh.Top. & S.F. Atlantic Coast L. l3abcock & Wilcox l3arber Oil Bell Aircraft Bendix Aviation Bethlehem Steel Boden Borg Warner Brldgeport Brass B'Lwyrus Erie Buffalo Forge Carrier Corp. CaterpJllar Central & So.W. Champion Paper ChLcago Corp. Chic .East Ill. Chic.Pneu. Tool Cht'ysler Cincinnati Gas C .LT.Financial Clark Equipment Clevite Corp. Combustion Eng. Commercial Credit Consolo Edison Continental Can Continental Ins. Corning Glass Crown Zellerbach Denver & R.G.West. Dow Chemical DuPont Eaton Mfg. El Paso Natl.Gas Ex-Cell-O Corp. Federated Dept.S. Fidelity-Phenix Firestone Tire First -Natl.Stores Florida Power Food Fair Stores Gamewell Garrett Corp. General Electric GenerarMotors Gillette Co. Goodrich Gulf,Mobile & O. Hazeltine Corp. Hershey Chocolate Houston Lighting Illinois Central Ingersoll-Rand Radio Corp . I ns. Co. 0 f NA . Republic Steel LB.M. Revere Copper Intern'l Paper Safeway Stores Johns Manville St. Regis Paper Joy Mfg. Scott Paper Kansas City So. Seaboard Airline Kroger Co. Sears Roebuck Libbey-Owens F. Shamrock Oil Lone Star Gas So. Natural Gas Louisiana Gas So. Pacific R.R. McGraw Hill Pub. Southern Rwy. Mead Corp. Sperry Corp. Minn.-Honeywell Stand.Oil Calif. Minn. Mining Stand.Oil N. J. Mission Corp. Superior Oil M-K-T, pfd. Texas Pac.Coal & O. Motorola Texas Pac. Rwy. Nat'l Cash Reg. Transamerica Nat'l Dairy Union Bag Nat'l Lead, Union Pac. Rwy. New Mex.& Ariz. Union Carbide N.Y.,Chic.& St.L. United Aircrat No.Amer.Aviation United Biscuit North.Nat'l Gas United Gas Corp. Otis Elevator U. S. Steel Panhandle E.Pipe Warren Petroleum Penn- Dixie C. Western Mar;y-land Phelps Dodge Western Paclfic Philco Corp. Westinghouse Elec.' Phillips Pete. Worthington Corp. Pitts.Con.Coal Zenith Radio Pitts.Plate G. July la, 1953 EDMUND W. TABELL WALSTON & CO. ThIS memorandum IS not to be construed as an offer or solicihtion of offefs to buy or sell any securities From time to time Walston & Co. or any partner Thereof, m,)y have … n Hlterut in some Of all of the secuflties mentioned herein The foregOing material has been prepared by us as a m…tter of information only It Ii bUed upon information believed reliable but not lIecessarily complete, is not guaranteed as accurate or filial, and IS not intended to foreclose independent Inquiry .

— -….. – – Walston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY eXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,hed) OfFICES COAST TO COAST CONNECTEr; BY OIRECT PRIVATE WIRE SYSTEM 'rABELL'S MARKET LETTER July 17, 1953 In my opinion, last week's market action was quite impressive despite the lack of volume. From the July 8th highs of 272083 in the Dow-Jones industrials and 108.34 in the rails, the averages declined to 266096 and .103069. This was a loss of about half of the advance from the June lows. At the week's lows, selling dried up and the market was able to recover a good portion of the losses by the end of the weeko The Friday intra-day highs were 271059 and 106026. Both the short-term and intermediate-term teGhnical indicators are showing favorable action and I would expect the ..advance to be resumed next week 0 Just how far it will continue is problematical. The industrials will run into heavy supply around 280 and it would seem unlikely that the January highs will be bettered by this average. The rails, however, could very easily work into new high territory above th December, 1952 high of 113.94. The action of individual issues and groups, however, is much more important than that of the averages. Starting with this letter T propose to review,in alphabetical order, the technical outlook for the various groups and some of the individual issues in each groupo AGRICULTURAL IMPLEMENTS. This group reached its high in late 1951 and has been in a slow. downtrend ever since. The' decline has been quite severe i'1 scme instances. J.lo Case has dropped from 39 to a low of 17 and Deere & Co. declined from 36 to a low of 240 International Harvester, the 'qua.lity issue in the group, dropped from 37 to 270 These issues,at the June IONS, were close to their downside objectives and near strong support levels, IoNever, they will need considerable time to form new base patterns and the('e is heavy supply not too far above the market. The same thing applies to the smaller companies such as Gleane…. Harvester, Minneapolis Moline and 9l1ver cOkRoration. These issues should be bought only during periods of pr.lce wea eSs1iy patient holdel's 0 Would not follcw strength. The one ex- )eption is Allis Chalmers. This company is a leading maker of farm ma- chtnery, but this division accounts for only 60 of sales. The remainder is in electrical, metallurgical and heavy industial machinerx. Unlike the other companies mentioned above, it reached its high of 59 1/2 early this year rather than in 1951 ..'I'he stock has declined but, at present levels aound 48, the stock is in a strong support level. The other farm issues all J'eached their long term upside objectives late in 1951 but Allis Chalmers hal a pattern that still indicates considerably higher levels. Allis Chal- meJS pays a 4 annual dividend which was amply covered by the 7098 earned jn 1952. The president recently stated that 1953 earnings might be 10 to J.5j lower in 1953, out the 4 dividend would still be well covered in such an event. The yield of 8.3 and the attractive technical pattern suggests 'that other farm implement issues might well be switched into Allis Chalmers 0 AIR CONDITIONING. There are only two issues in this group – Carrier SQrporation and York Corporation. Carrier has long been one of my favoritee. LC was originally recommended in the 12-15 area and later at around 22-25. It had an upside objective of 45 which was reached at the early 1953 high of 45 1/4. Since that time the stock has been resting and has held in the 40,,44 area. From a technical viewpoint, ability to break out on the upside 'of this trading shelf would indicate a further advance to 50-52. A downside br'eakout to 39 would presumably indicate a decline to the 36-34 support area. may take some further time for this pattern to clarifyo York Corporation has a slightly different pattern than Carrier. It has been iD a slow uptrend from the 1949 low of 8. The early 1953 high was .230 A small top was formed with a downside indication of a possible 18. 'rl1e June low was around 18 1/2. There is strong support in the 19-17 area. Stock should be bought on dips as the long term indication is for higher levels 0 EDMUND W. TABELL WALSTON & CO. Thi. memorandum is not to be construed ,fit lin offer or solicitation of offers to buy or sell any securities From time to time Walston & Co, or any p.!lrtner Thereot, mat have an interest in 50me or all of the securities mentioned herel The foregoing material has been prepared by us as a matter of infrmatlon only It IS bllled upon Information believed reliable but not neeenanly complete, is not guaranteed lIS accurate or final, and IS not intended to foreclose Independent IIUjuiry

Walston &- Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw;t,ld) OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lETTER July 24, 1953 I still feel that the market will continue its selective uptrend. Last week's lows of 267.95 on the Dow-Jones industrials and 104.57 on the 'rails were above the previous week's lows of 266.96 and 103.69 which, in turn, were above the June lows of 260.75 and 99.06. Of course, a decline below 266.96 and 103.69 would destroy the constructive pattern of rising correction lows. On the bullish side, ability to move above the rally highs of 272.83 and 108.34 would be of considerable importance. The week's highs ,were 271.14 and 106.10. None of my other technical indicators show parti- cularly vulnerable patterns at the moment. Continuing my review of the various groups brings us to the AMUSEMENTS & AMUSEMENTS SUPPLIES. This is a grollp of diversified tec/1nical patterns. ihe out8tandllig quality issue in the group is, of course, Eastman Kodak. A quick glance at its graph would indicate that it appears to have done little marketwise. Its range from 1946 to date has 'been 54 and 38. However, if the graph is adjusted for the various 5 and 10 stock dividends, the graph shows a slow uptrend from about 20 to the present price of around 42. I would expect this slow growth trend to conti- 'nue and the stock appears to be a pllrchase for long term holding despite the low cash dividend payments. Other issues'in this group are of lower quality. General Precision Equipment, however, has a very interesting technical pattern. It has a long term upside potential considerably above the present level of 22. The stock reached a high of 27 both in 1951 and 1953. The 1.00 dividend is attractive to those in the higher income 'brackets because of its tax-free status. There is good support at the 22-20 level and the stock appears to be an interesting speculation. Decca Records at the current price level around 9, also pears to have speculative attraction. The stock has 801d as high as 12 l/ this year but has been depressed by the recent issue of rights. The company owns a 48 interest in Universal Pictures. From a technical point of view, the pattern on Decca shows considerably higher levels over the longer term. Bell & Howell, manufactQers of high quality photographic eqUipment, also 'has a constructive Jong term technical pattern. The stock, now around 20, sold as high as 37 in 1946 and 28 in 1952. No immediate move is indicated, 'but the stock should prove to be a worthwhile long term holding. Lionel ,op has reacted from 27 to 22 and meets support at 22-20. Some time may 'be needed to form a new base, however. The stock has been in an uptrend 'since 1948 and may need a little I'esting spelL Other issues in the group ,are Brunswick Balke at 18, Madison Square Garden at around 8, and U. S. , .Playing Card at 6L None of these issues show particularly outstanding patterns. APPAREL-CLOTHING & HOSIERY. There are very few outstanding issues in chis group. Some appear to be building up potential base patterns but, in the main, more work appears needed. Possibly the most interesting issue is Cluett, Peabody & Co. This stock appears to be slowly forming a strong technical pattern. It has advanced from a 1952 low of 25 to recent levels around 32. The 1951 high was 36 and the stock sold above 60 in 1946. Would advise purchase on minor price dips. Hart, Schaffner & Marx, now around 23 3/4, has an interesting upside potential and yields 6.6. There is no indication of an immediate move. Another interesting situation in the group is Manhattan Shirt Company now at 23. The stock has held in the 20-25 area . for a considerable period of time and appears to be under slow accumUlation. Reliance Mfg. at 11 also appears relatively attractive but slow. GoodallSanford, now at around 13, has most likely reached its low at 12, but may need considerable time to form a new pattern. In the hosiery group, MoJud Hosiery (13 1/2), Real Silk Hosiery (21) and Wayne Knitting Mills, (22), have potentially interesting patterns and should be held . Would switch AdamS-Millis, Gotham HOSiery and Phoenix. HOSiery into issues with more favorable patterns. Next week, Automobile and Truck issues will be reviewed. EDMUND W. TABELL WALSTON &, CO. Prospectus available on request. Tmhiys memorandum Is not to be have an Intered In some construed or all of III 4n, oHr or solic!tatton of oHers to buy or sell any securities From time to time the securities mentioned herein The fore!jlolng mtlteritll htls been prepared by us Wahton & Co, tiS tI mtltter of or any partner thereof, Information only It is btl sed upon Inform4tlon believed reliable but not necessarily complete, h not guartlnteed as accurtlte or !intll, tlnd is not Intended to foreclose indep&ndent Inquiry

r MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY .EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISwihed.,dj OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER July 31, 1953 , On increasing volume. the Dow-Jones industrial average attained new , 'high territory since the low of 260.75 on June 15th. Friday's high was ,' '2(5.85 on vo,ume of 1,320,000 shares. The industrials have now retrac;!u approximately 43 of the decline from the January high of 295.06. A two- 'J;hird recovery would be about 283. There is considerable supply in the in- 'dlstrial average between 280 and 285. ' , The rail average, while it also has advanced during the past week, was still below the July recovery high of 108.34 which was a two-third re- , i;;acement of the decline from the December 1952 highs. Friday's high on tile rails was 106.23, , The intermediate term technical indicators, which gave a buy signal .., on June 23rd, are still not in a vulnerable position so it would appear ,hat the advance can carry f'urther. The objectives on my work indicate the , ;,'()babili ty of an advance to 280-285 in the industrial average. Ability to ,.'.''nach 109 in the rail aversge would indicate at least a testing of the high ,.)1' 113.94. ., …,.,.', AUTOMOBILES – PASSENGER – TRUCK AND BUS. There has been considerable 'Ja!'isi'mess voiced recently on the outlook for automobile production for '-,he balance of 1953. Reports are that the used car market has backed up ,,,and that production would be curtailed sharply in the new-car field. Of '()LlrSe, these reports are not new and have been present at recurring inter- .. '''hIs for t.he last three years. That is why it has been possible to buy , '-eneral Motors and Chrysler at, the generous yields and ,price-times-earnings ,'c,ios prevailing Since 1949. Both these stocks, particularly Chrysler, l'ave had severe declines from the 1953 highs. Chrysler, at last week's ,lew 0 f 69 1/8, had suffered a 28 dec line from 96 3/4 and General Mot ors, .. a the week's low of around 58, had declined 16 from 69 3/4., From a tech,' ,',Lcal viewpoint, neither of these issues appear particularly vulnerable at ,a'01md prese'1t levels. Chc'sler meets strong support in the 69-65 area .' 1,;'JDeral Motors l'1'!d a downside objective, of about 58 which has been reached 8'10. there is also very strong 'support in the 58-55 area. On the other hand, 'nE!lther issue has built up a sufficient base to indicate very much of ari upward move. This may take some further time. Of the two issues, General 'lVi()';o'!'s appears the more attractive for 'investment portfolios. The best ' 'p,asible upside objective-a't the moment-.on' Chrysler appears to be about the ',7tl–80'level and would be inclined to reduce 'commitments in this issue if .., ',rlut level were reached. . , Two of the secondary motor stocks, Studebaker' and Nash Kelvinator, cc'LS appear to have reached strong support levels at last week's lows of 'c9 3/8 for Nash and 28 5/8 for Studebaker. /.i-,reo'e.-, of the two issues I PH, fer Nash Kelvlnator as the upside objective seems to be greater .than in , S ,'.lebaker. Studebaker will run into a heavy supply of s.tock at 34-35 and w\.I.cld advise lightening commitments at that level. In fact, a switch from ,sh in';o Studebaker would appear advisable in accounts concerned mainly w'L'r capital appreciation. The other automobile issues, namely Hudson r;,!,'rs, Kaiser Mfg., and Packard, have mediocre technical patterns and in my ;)p!Lnicn should be avoidedo ,,', a goup, the truck stocks also appear unattractive. They appear ') offer little chance of price appreciation. ACF Brill, Diamond T, Divco, ,der'al Fawlck and Mack Truck have all suffered severe declines and are iiii)s-t likely near their lows. However, this also appl'les to Twin Coach. !,;wever, there are no indications of any im!nediate muves and better opporc'.l,nities for price appreciation are available in other groups. The long tErll' patterns also are not particularly favorable. ,White Motors, Which has hEld up bette'r than the average truck issue, has a pottmtially vulnerable p',ti;ern and would advise switching out of it into such situations as Blaw- Rcx, Bucyrus, Ell '-ott, etc, 'Rea Motors, which is heavy in defense orders, ,i.E! a speculative issue and here also there is a technical pattern that is p,tentially vulnerable and switching appears advisable. St.Regis Paper, for pT.mp!e, appears more attractive technically. EDMUND W. TABELL WALSTO!i & CO. This memorandum h not to b. construed as an offer or solicitation of offers to buy or 14!!1I oIIny seCUrltl1ll From time to time W.,lston & Co. or any partner thereof, mlly hav, an interest in some or all of the securities mentioned herein Thill foregOing material hu been prepared by us as a matter of information only It is bued upon information believed reliable but not necenarlly comDlete, is not guaranteed as accurate or final, and IS not intended to foreclose Independent InqulfY