Walston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (SwHwld) OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lETTER August 7. 1953 The marKet continued its favorable action over the past week, Earlier in the week. the pace of the advance became a bit too rapid and. at highs of' 277,19 for the Dow-Jones industrials and 106,45 .for the rails, the mar'' ket was temporarily overbought, A couple of days of mild decline and conso'- Itdation proved to be sufficient technical correction and, by the week-end, the averages were back to highs of 276,54 and 107,36, The action of the I'Iils is of particular importance at this pOint in the technical pattern, 't'he rail average has two important price barriers that must be sUI'!!Iounted, 'l'iley are the early July high of 108,34 and the May high of 109,21. Ability tc' push th'ough these levels would most likely indicate an advance to above ..the December. 1952 high of 113,94, Failure of the rails to penetrate the July and May highs oirer the next week would be discouraging technical action for this important group, JI1y thoughts on the market .remain the same, I expect the present inter- !l!.ediate teI'lll advance to continue through August and possibly into September'. '1;he industrial average will most likely advance to at least the 285 level a.nd the rails might reach new high territory, However'. I do not believe that the present advance is the start of the b!.g upward move I expect to start in 1954, More consolidation and re-adjustment similar to what we have wit- r.essed over the past two yea's is needed first,Therefore. some profit-taking will be in order when the pres.ent'intermediate term advance shows signs of sIackening, 'rhere are no signs of this yet, I have just finished a new summary of Technical Patterns on Secondary StoCKSi'. Covered .n it are th.e technical market indicaGions on some 600 ,mllmon stocks that are generally considered below investment quality, There a.re a large number of issues that have relatively unfavorable technical pat- te-rns in the sense that the;)! either indicate lower levels over t.he longer teI'!ll or else show little indication of worthw'hile pI'lce movement over the fOl'eseeable future. A numbel' of issues of thls type are listed below Price Pice Price A, C. F. Brill 5 Adas Millis 32 A.laska .Tunea1. 3 Allied Mlls 26 .ilJ.l!er,Export Lines 15 er. Locomotive 16 Argo Oil 19 ;l('tloom Carpet 8 .Ashland Oil 15 Babbitt 6 Baldwirt-Lima 10 Barium Steel 7 Be.st & Co, 26 Budd Company 14 Ce,1tral Agurre 20 Chickasha Cotton 11 Clopay 3 Consol,Copperm.ines 8 Cont,Diamond Fibre 13 Ceo Press 9 Dalfega Stores 7 Daystrom Diamond T Motor Divco Corp. Florence Stove Follansbee Steel Foster Wheeler Gimbel Bros. Gotham Hosiery Ha'bison Walker Hecht Co. Holland Furnace Holly Sugar Lehigh Yalley Coal Mack Trucks Macy. R. H, Madison Sq.Garden Missouri-Kan,Texas Nat'l Container Nat'l Malleable Nopco Chemical Packard 14 11 8 19 14 17 15 7 26 26 15 17 8 11 23 8 6 10 32 17 5 Peabody Coal 5 Pfeiffer Brewing 18 Poor &.Co, 15 Reo Motors 19 Reynolds Spring 7 Royal Typewriter 17 Seiberling Rubber 10 Simonds Saw 40 Smith & Corona 18 Spencer Kellogg 15 Std ,Railway Equip, 12 U. S. Tobacco 19 Vulcan Detinning 17 Walgreen 26 Warer Hudnut 17 Wayne Pump 10 West Virginia Pump 15 White Sewing Mach. 9 Young Spring &Wire 26 Youngstown Steel Door 13 I would sell these issues on strength and purchase issues with clearer teJhnlcal indications, In the very low-priced category. Alleghany Corp (4). Fmerican Encaustic Tiling (7), Raytheon (11). appear more attractive for capital appreciation than some of those listed in the table above. In the lLIediU!ll.-lriced group I suggest B1aw-Knox (19). Beaunit Mills (19). Elliott Co, (27). National Gypsum (21) or New York Air Brake (20) . Only a limited number of this study is printed and it is not available for public distribution. Visit your nearest Walston office. They will have a copy on file, EDMUND W. TABELL WALSTON & CO. Thh memorand.l,lm Is t to be construed as an offer or solicitation of offel's to buy or sell any seCUrities From time to time Walston & Co, or any partner thereof, may have tin rnterest In some or !III of the securities mentioned herem The foregOing matenal has been prepared by us as a matter of information only It IS base! upon Information believed reliable but not neceuardy complete, is not guaranteed as IlCcurate or final, and IS not Intended to forecl05e Independent Inquiry

, '………….,.. , . .',.', Walston &Co. !. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Swamld) OFFICES COAST TO COAST CONNECTE; BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lETTER August 14, 1953 The market continued very mixed last week with the volume dropping 'pelow 1,080,000 shares for two out of the five trading days. On Thursday, ,the Dow-Jones Industrials managed to edge ahead to a new intra-day high of '273.30 forthe summer advance. Some of the gain was lost on Friday, when the close was 275.71. , The Industrials still seem to have the potential of advancing to the ,280-285 range before the current intermediate-term rally is completed. The 1n1ermediate-term indicators are still not vulnerable. However, the rails are showing relatively poorer action and are locked in a trading range. At Frlday's low of 104.30 they were in between the June and July lows of 99.06 and 102.22 on one hand, and the July high of 108.34, as well as the May pigh of 109.21. ; Over the next few weeks, the rails must be watched very closely to uetermine whether an upside, or a downside, penetration of this important , trading range impends. ' Continuing my review of the various groups brings us to the — AUTOMOBILE PARTS & ACCESSORIES There are 49 issues listed on the New 'York Stock Exchange that fall into this broad classification. On the Auto- motive Equipment average (24 stocks American Investors Service), this group reached a high in March of 1953 at about 37 1/2. The recent low was 32. , Most stocks in the group, from a technical viewpoint, show more or less of ,a neutral pattern with no indication of a decided move in either direction. The long term patterns, in most cases, are relatively good. Of the more fa- vorable patterns, Borg Warner ,perhaps the most interesting. At around , p't'esent levels of 72, the stock yields 6.9. There is good downside support 'in the 70-65 area. On the upside, the technical pattern indicates a slow uptrend to 95-105. The 1953 high was 86 and the low was 70 1/2. Despite the lengthy strike at the Warner Gear division, only a moderate decline in earn ings is expected. 1952 earnings were 9.33 a share. ' Briggs Manufacturing is more speculative than Borg Warner, but it also has a favorable pattern. A high of 42 3/4 was reached in 1953. The 1946 high was 53 1/2. The stock held in a wide trading area between 22 and 40 for over Six years with most of the time spent in the 28-36 area. It was not until this year that the range was penetrated on the upside. The long term pat- tern indicates considerably higher levels and the 35-30 area should furnish good downside support. At 34 1/4, the stock yields over 11 on the 1.00 uarterly payment which was raised from 751 quarterly. 1953 earnings should be considerably better than the 2.93 shown in 1952 because of the steel strike last year. In addition, a non-recurring net profit of 3.40 from ' the sale of the English subsidiary is also available. Chrysler is Briggs' largest customer and there have been periodic rumors of a merger of the cwo companies, but this appears unlikely. From a technical viewpoint,Briggs appears to be an interesting price speculation. Other issues with favorable Jon3 term technical patterns include American Chain, Arvin Industries, imken-Detroit Axle, McCord Corp., Sheller Mfg., Motor Products, Motor 'Wheel, Stewart-Warner, Hayes Industries. In\the neutral classification I would now include Allen Industries, Amet'ican Bosch, American Metal Products, Bohn Aluminum, Bower Roller Bearing, Campbell Wyant, Clark Equipment, Clevite, Collins & Aikman, Dana Corp., Baton Corp., Federal Mogul, Fruehauf, Gabriel, GOUld National Battery,Hayes Mfb Houdaille-Hershey, F.L. Jacobs, Kelsey Hayes, King Seeley, Midland Steel, Murray Corp., National Automotive Fibre, Raybestos, A. O. Smith, Standard Steel Spring, Therrn,oid, Timken Roller Bearing. Most of these issues may work out favorably, but the patterns are not yet quite clear or more ti;n may be needed. . On the unfavorable side of the technical picture are Budd Mfg., Elec triG Storage Battery, Reynolds Spring and Young Spring &,Wire. I would switch these issues into the stocks listed in the favorable group. Although it Ls an excellent company, I would switch Thompson Products into Borg Warner. Thompson recently rallied from a June low of 46 3/4 to 54 and is 'near overhead supply. EDMUND W, TABELL WALSTON & CO. This memorandum i. not to be construed .1 en oR.r or solicitation of offen to buy or sell any lecurltles, From time to tim. Walston & COlor any partner thllreof, may have an Interelt In lome or aJl of the lecurltl.. mentioned herein. ThII foregoing mate,lat hal been prepared by UI as ,. matter 0 Information only It 11 boned upon information believed ,.liable but not nec.starU, complete, II not guaranteed as accurate or final, end is not Intended to foreclole independent Inquiry ' ' ……. … , …,…. ' ' ' … 3.. .,'''''.''''.' .,. . ' , ;. ' ' . . … ….. . . .;' …

I——– . ;' …. Walston &Co. 1. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Switz.rland) OFFICES COAST TO COAST CONNECTEG BY DIRECT PRIYATE WIRE SYSTEM TABELL'S MARKET LETTER August 21, 1953 The reaction at mid-week found the rails relatively softer than the .. industrials. At Wednesday's low of 101.36, the rail group broke the July . ..low by 861 but held 2.30 above the important June low of 99.06. However, the relatively stronger Dow Industrials at Wednesday's extreme low of 270.06 held 2.76 above the July bottom and a good 9.31 above the June low of 260.75. ' . A short-term buy signal was given on the close Wednesday. In regard to the whole intermediate-term advance from the June lOWS, there has been no intermediateterm sell signal given. However, the market must rally durina tho current week to avoid such a sell indication. At the moment, it seems as if the market will attempt a further rally. But, of course, the June lows' on the rails must be watChed rather carefully because the rails have now eS'ablished a rather long trading range and the direction of breakout will . have significance. Southern Pacific is Just one example in the rails. SX hail held in the 43-47 range for a long time. Ability to rise to 48 would indicate 56-57. But a decline to 42 would indicate a dip to 34. Other rails have ,similar patterns. Continuing my review of the various groups brings us to the – AIRCRAFT-ffiNUFACTURING AND ACCESSORIES – The patterns of individual lssues in the group are quite diverse. This is understandable, of course, eeause of the uncertainty surrounding the defense program. There are three '-sEllies that appear to have outstandingly favorable patterns, They are BendiX Aviation, Garrett Corp., and North American Aviation. It is interest-.. iDE; to note that all three issues are concerned with speCialty growth air- .craft manufacturing or with other growth potentials. , Bendix Aviation reached a 1953 high of 68 1/4 and a low of 54 1/8 and is now selling at 56. The yield is 6.6 based on the 1952 dividend of 3.75. From a technical paint of view, there is strong support in the 55-50 area. h' long term upside potential is 80-90. BendiX, in my opinion, is a very 'int.eresting purchase for both generous income and substantial price appre- cia.tion. 1952 earnings were 7.22 a share and net for the twelve months ended June 1953 rose to 8.30. . Garrett Corporatio is a leading manufacturer of high-altitude and high-speed aircraft equipment. It is a speCialty type company with an ex- cellent growth trend. The 1952 high was 34 3/8 and a low of 24 was reached th1s year. At present price of 29 the stock yields 5.5 on the 1.60 divi- Iiend. Just declared 10 stock dividend. Stock appears to have corrected the sharp run-up to 34 and may be forming a new reaccumulation area. This may t.ake further time but there is good support not too far below the market 'and the stock should be an excellent purchase during general market weak- ness because of its good growth potential. North American Aviation's major production item is the F-86 Sabre ;1e'c fighter. The company is also engaged in guided missile and atomic energy Qevelopment. It is more speculative than the two issues mentioned above, but nas a very interesting long term appreciation possibility. At its present price level of 17 it is near good downside support at the 16-14 level. I consider this issue outstanding among the lower-priced aircrafts. The technical patterns on other aircrafts are not too clearly defined. EeFFY Corp. has a very good long term pattern but there is a possibility l;hat it may work a bit lower first. For that reason, I am giving it a neutral rating, but it should be purchased on moderate price declines. United Aircraft and Bell Aircraft are interesting because of their helicopter divisions. There is an excellent long term growth potential in this field. his also applies to Piasecki Helicopter which is unlisted and on which I ,ave no technical work. However, the patterns on both United Aircraft and Bell do not appear complete and some further work may be needed. They both 'loo,. like interesting long term purchases. Lockheed Aircraft has an excellent upside potential, but there is no Definite indication that the pattern will turn out favorably. It is also uifficult to figure out the patterns on Boeing Airplane and on Douglas Air- frft. The patterns are too vague to arrive at a definite decision.While ad- jait t;ing that some of the other issues might also advance, I would prefer to con,entrate my commitments in this group in the three issues with the clear- est patterns, namely, Bendix Aviation and Garrett Corp. and North American vll.tion. Would also conSider Sperry Corp., United Aircraft, Bell Aircraft and Piasecki. EDMUND W. TABELL (Wr.Ltten at Banff,Canada) WALSTON & CO. Thi, r,emorandum II not to 1M construed as an off.r or loUdtatlon of offen to buy or lell any lecurltles. From time to time Walston & Co, or any partner thereof, may have an int.,est in lotne or an of the securities m.ntion.d h.r.in The for'90inQ mat.rlal hal been prepared by loll as a matter of Information only It h baled upon Information beli.ved r.liabl. but not n.cuwrlly compl.t., II not Quarantd as accurat. or final, and is not intanded 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 ISwH,I.,d) ' , – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – -; OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TA.ELL'S MARKET LETTER ..; ,…,…,., '.' September 4, 1953 .., . At the week's low of 260.32 for the Dow IndustrialS and 95.2) for the', .!'''h,iaRvaeilsa, both averages had reached initial support levels. The Industrials strong support zone at 260-250 and the Rails at 95-90. Toward the ,;.,;end of the week the Industrials recovered to as high as 265.21 and the ;-Rails to 98.02, but volume indications were not particularly favorable. r..;It appears that we may witness another testing of the support levels in . – '\,,the near future. But any mild decline over the next ten' days would bring- ' '\.;the intermediate term technical indicator into oversold territory and would ''result in a buy signal shortly afterward. ' . ,. ;;'.T While this would be of importance, would lay more stress on the ';action of individual issues. A great many of them are either at, or near, i'',.',downside objectives or support levels. A number of these issues are listed '. (,/below. Almost .t; and most oils all groups are included. However i t may ,be.'l'Roted-that rubbera t (except Phillips Pete, Pure Oil, Richfield Oil and Warren .',., bJ.Petroleum) are conspicuous by their absence. Most issues .in these two .,' ,,;1 groups indicate downside objectives below last week's lows ..Suggest switch-' .. ri ing ,lulnerable issues in these two groups into some of the .issus mentioneo; .' (jbelow. (Downside potentials shown are approximate, of course, and certain '. x stocks may go a bit below the prices indicated., Also many ,atocks may re- . .' .). quire C onsiderab Ie time to form bases) . ,,. Week's Downside (;, Week's Downside . \',),' Stock v' d .. Low Potential Stock Low Potential-'. ''',A1lbott Laboratories ',,.',,' J.\ dlll iral C; Aiiegheny Ludlum 39 3/4 23 1/2 27 1/2 40-39 25-22 32-28 Kennecott Copper 60 1/4 Marshall Field 23 3/8 Miss.Kan.Tex,pfd. 62 62-55 – ,',,' 23-22 .. ; , 65-60 .' i,''-'Allied Stores 37 36-34 Montgomery Ward 57 1/4 00-55 ,',' 'l,,Allis Chalmers .,/Al!l.erican Airlines 43 1/8 .. 47 -45 12 1/4 12-10 Motorola '31 1/8 32-30 .. Nat'lDistillers 175/8 18 , ,'.;;, ll'llerican Smelting 28 1/2 31-30 Nat'l Gypsum 17 5/8 20-16 !.',. . Armco Steel 33 3/8 34-32 Nat'l Supply 24 3/8 26-23 ,. , E' ' AYlnOUr 8 3/4 9-8 N. Y. Central' 2'1 1/8 21-20 ,,'. ,,t-13alt. & Ohio 22 1/4 23-20 N.Y.,Chic.& St.L. 31 3/8 38-35 …. i',', Bendlx' AViation 54 3/8 53-50 No .Amer .Aviation ' 16 3/8 16-14 . !'.;,, Rl aw -Knox 15 3/4 18-16 Northern Pacific 55 1/2 58-51 YE', Borg Warner 65 3/4 72-66 Otis Elevator; . '1)'7.5/8',39-37 ;'-;'i Briggs Mfg. ,t';.' BueyruB Erie 33 35-32 22 1/4 24-22 Pan-Amer.AirwaYs'; .i8' 1/2,. 8 Parain.ount Piat. ,j (fj.G!5/8J25-23 ;, Cterpillar Tractor 49 1/8 50-45 Penn-Dixie Cement 3i 1/2 33-31 '',', Chesapeake & Ohio !\Y;-;,Chic,Rock Island .'.'; Chrysler 33 1/2 36-34 65 3/8 69-65 65 5/8 65-60 Pennsylvania ,R.R. 19 3/8 ' .. 20-19 Phelpa Dodge' 30 3-29 Philco .. ,,' . 27 5/8 27 ' .. , ' , , .- Cllmax Molybdenum 33 3/4 ;,..' Coca Cola 108 3/4 ',.' ,' Colgate-Palm 41 '( ' Crane Company 27 5/8 '''. ' Dome Mines 15 5/8 , Dresser Ind. 17 3/4 ,' Eas tern Airlines 21 3/4 ',',,,,.,.' Ellc tt 22 1/2 ,' Fansteel MetaL ,. General Motors 23 55 ',', GHdden Co. 29 1/4 ''.'' Gr'ay Mfg. 14 ,' Great North Rwy,pfd. 49 1/4 '.. , Homestake Mining 35 3/4 . Inter.Harvester 25 1/2 Inter. Paper 48 1/2 Inter. Tel & Tel 14 ,Johns ManVille 57 3/4 32 110-100 41-37 29-27 18-17 18-16 22-20 27-24 27-24 55 32-29 16-14 50-45 36-32 27-23 49-47 13 60-58 Philiips'Pete 50 3/8 53-50 P1p'e;Oil ;,43.3/4 45 RadiO Corp. 21 5/8 21 Raytheon ,9 1/8 11-10 Revere Copper 34 1/2 34-32 Richfield Oil 48 1/2 55-50 Southern Rwy. 39 1/4 39 Square D 21 3/4 24-17 Studebaker 26 1/2 28 Sylvani,a Elec. 30 5/8 30-28 Thompson Prod. ,. 41'1/2 45-40 Uu.nioSn. Carbide,,, Gypsutri /,' 63 1/8 62-58 '1'04 . 10'5-95 Vanadium 33 1/4 35-30 Warren Petroieu.m 31' 33-30 Western Auto Sup. 45 34 48-45 'Westing'se Ele&. 4'1' 41-38 Youngstown Seet 35 3/4' 40-37 , (. EDMUND W. TABELL (Written in Portland,Ore.) WALSTON & CO. .. , Thit memorand,,, Is not to be conlfrued .s an offer or solicitation of off. to buy or 'eU any ,ecu,ltles, From tim. to time Waldon I Co or any partner thereol, ' rna, hollY an lnt.rest In sam. or all of th. ,ocurltle. mentioned h.r.ln, The fOfe9oln9 mat.rI.1 h b.en prepared by UI al a matt.r of'lnformatlon onl, It Is , , .., bdsed upon in'ormatlon tJ.1i…d r.liabl. but not n.cenerlly com pi …. II not 9u.rant..d es accurete or final, and is not Int.nd.d to for.clo'e Indep.ndent Inquiry ' . ' , .,' .. . . , . , ' .' ' . .-. , '.,.'.',' . , , , …,. –….-tJ1'.Q,;;0!17tf f' –.-.——- –…… …ottt!''''—–

Walston &- Co. , , MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCICO LUGANO (SwH,.d.,d) Off1CES COAST TO COAST CONNEC1Et. BY OI!lECl PRIV,ATE WI'R SYSTEM TABELL'S MARKET LETTER . .. '.' September 11, 1953 , , As anticipated, the advance from the previous lows did not carry ', very far. Volume indications on the slight recovery that did develop ,' were unfavorable. On Friday, the Dow-Jones Industrials and Rails had declined to 258.94 and 92.05, respectively, as compared with the pre- '..,' ' vious week's lows of 260.32 and 95.24 . The decline may be extended somewhat further but the 95-90 level , in the Rails and the 265-250 zone in the Industrials offer strong sup- port. Both intermediate-term indicators are now in oversold territory and are in position to give a buy signal at any time. Would use present ',, weakness to add to holdings. Believe we are near.ing a rather important ',,, intermediate-term buying pOint. , '. ,.. ' One week ago I published a list of 74 rather prominent stocks '',',j 'o'Ihich had declined to, or nearly to, downside objectives or support ' ,..i levels. This week, I am listing 56 more issues which are at, or near, ' ';heir downside objectives. However, these are secondary type stocks , and, of course, will move more slowly than the market leaders and also ',' may require more time to build up new base patterns. Furthermore, many , ' of these secondary issues may be under further tax-loss selling ,, pressure between now and the end of the year. …. Approx. Downside Price Potential .. erne Steel A.ldens ',' ' Amer .Broad -Para. , ' 4merican Distilling American Fgn.Power Ilnerican Mach .Metal American Potash ',merican Radiator ,' Amer .safety Razor ssoc.Dry Goods Austin Nichols ..' ' J,vco Mfg. Bayuk Cigars Budd Co. P,ulova Watch Byron Jackson Calgary & Edmonton , Carpenter Steel Central of Ga.Rwy. Chicago & East. Ill. Chlc.,Mil.& St.Paul , Chic.,& No. Western Colorado Fuel Consolo Engineering , Consolo Textile Continental Baking Decca Records ',' , Elastic Stop Nut 21 18 13 1/2 32 8 1/4 17 28 3/4 13 1/4 7 19 5 3/4 5 3/8 9 5/8 11 3/4 36 3/4 17 409 31 1/2 14 13 7/8 13 3/4 15 3/4 12 9 21 3/8 8 3/4 13 3/4 23-20 18-17 12 33-27 8 16 29-26 13-12 6 18 5 5 9 11 36-34 19-16 10-8 40-36 35-32 15-13 16-14 14 16-14 12-10 9-8 21-19 8 14-13 Approx. Downside Price Potential Gaylord Container General Baking General Instrument General Time Gleaner Harvester Kaiser Aluminum Lane-Wells Lees, James Liquid Carbonic Magnavox Minneapolis Moline Minn. , St.Paul,SSM Moore-McCormack Motor Products Mueller Brass Murray Corp. Nat'l Mall.Steel Oliver Corp. Pacific West.Oil Pepsi Cola Reading Co. St.Louis-San Fran. Schenley Ind. Sinclair Oil Standard Brands Stewart Warner Universal Pictures Western Maryland 22 1/4 12 11 1/4 27 3/4 11 3/8 25 19 25 16 17 11 7/8 10 7/8 13 24 1/2 22 1/4 17 3/4 24 9 1/2 32 12 27 3/4 25 20 1/2 30 1/2 25 3/4 17 3/4 15 1/2 21 3/4 24-22 12 10-9 30-27 13-12 25-22 18-17 25-23 16 17-16 16-12 13-12 15-12 28-24 22-20 19-16 26-21 12-10 34-31 12 29-27 24-23 24-20 36-32 27-25 19-17 14 23-21 (Written in San Francisco) EDMUND W. TABELL WALSTON & CO. lhh memorandum 1, not to be construed as an oHer or solicitation of offers to buy or sell ,any securities From Hmo to time Waldon & Co, r any partner thereof. may h,.,e !In Int.,est in some or ell of the securities mentioned herein The foreQolng materlal has been prepard by ,!S as a matter of Information only It I' bllsed upon Information b.II ….ed rellllble but not necenarily complete, I, not guaranteed as accur!lte or final, and IS not Intended to foreclose Independent Inqult'l'

–' -. ' . Walston 5- (;0 .. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISwitd.,d, OFFICES COAST TO COAST CONNECTEr. BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER September 18, 1953 I usually start this weekly letter with a paragraph or two about the technical action of the Dow-Jones industrial and rail averages spiced with some additional comment on the favorable or unfavorable volume indications and garnish it all off with some observations on individual stocks. However, I've just returned from a trip by car across America and part of Canada and, somehow, the fact that the stock market declined four pOints on Monday and moved up two points on Thursday doesn't seem very important. To really appreciate what is happening today I advise you to travel across the country at least once by automobile. I heartily recommend such a trip to economists who are worrying about the coming depreSSion, to short term traders who are worrying about what the market is going to do next week, and to native New Yorkers in general. It is easier and faster to travel by plane or train. I came back that way and it is amazing to realize that you can have a leisurely Scotch and soda at the Brown Palace Hotel in Denver, Colorado, at eleven thirty in the evening (230 A.M. New York time) and still arrive at La Guardia before nine o'clock the next morning. But, by traveling that way you miss a great many things. You miss seeing the small cities and towns. You miss seeing that the women at luncheon in Bemidji, Minnesota, or Minot, North Dakota, are just as well dressed and well groomed as their prototypes in New York. You miss the fact that the restaurant where you had breakfast at Coeur d'Alene, Idaho, is most likely Just as comfortable as the one where you dined out in New York. You miss the interesting municipal golf course at Grand Forks, North Dakota. You miss stopping at the motels that are far more attractively furnished than most New York City hotel rooms. You miss seeing the growth of Winnipeg, and Calgary and Williston. You miss seeing the pipel'ine being built from Superior, Wisconsin, across Michigan to Sarnia, Ontario. It will bring oil from Alberta to the East regardless of the weather. You miss seeing irrIgation that is changing the desert regions of eastern WaShington into a rich agricultural area. You miss seeing the miles and miles of wheat fields in Minnesota, North Dakota, and Montana and the modern farm equip- ment that is servicing them. You miss the well equipped retail stores that are selling the same merchandise that you see in New York shop win- dews. In short, you miss seeing that a huge demand for goods is being built up in every hamlet and town in the country and even our great in- creases in productive capaCity in recent years may not be able to meet the demands of a population that is increasing at the rate of more than 2 1/2 m,illion annually and has the money with which to buy ' what it wants. 'To return to the stock market for a moment, perhaps that is why the long term technical pattern of the market is favorable. I believe the market is less vulnerable at the moment than at any time in the past two years. To the holder of the average stock, rather than the stock market averages, we have been in a bear market since 1951. I believe we are much nearer the end of this readjustment period than the start. After it is ended, I expect a much higher level of equity prices for a nlmoer of years. The next few months may be the last opportunity to buy conrnlon stocks at the favorable price to earnings and price to dividend ratios available today. There mayor may not be some further irregularity, bu.t 'co the long term investor it will make little difference if he buys at 260 or 250 or 240 if the market, several years from now, reaches 500 or 600. I believe it will. Let's stop watching the tape and the averages and concentrate on buying selected growth equities at the favorable prices and yields available today. I promise you I will return to a more technical frame of mind next week. The atmosphere around here finally gets you. EDMUND W. TABELL WALSTON & CO, Thil memorandum It not to 1M construed al .n offu or solicitation of offe,. to buy or Mil .ny securlt,, From tim. to time WoIIbton & Co. r any artner thereof, mr ha…. an Int.,.n In 10m. or .11 of the securltl.s m.ntloned h.r.'n Th. 'or'Qol1\9 materiel he, been prepered by UI a matter of Information only It. IS baud upon Informetlon believed tenable but not neeenafHy complete, II not quatante.d al accurate or finel, and II not Intended to foreclose Independent InqUiry …. . ….. ' ' .. ,.,. . , , ,,' ',' ,'. ,,, '

– — – – – – – – – – – – – – – – – – – – – – – – – – – —- Walston Co. MfMeUS HEW YORK STOCK ECHN6E AND OTHER l.EADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA ' LOS ANGELES SAN FRANCISCO ' LUGANO (SwH,.,I.nd) OFfiCES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER September 25, 1953 The market has gradually pulled away from the early September lows of 254.36 in the Dow-Jones industrials and 90.39 in the rails. The technical . indicators became sharply oversold earlier in the month and an intermediate term buy was signalled. The rally from the lows has carried to 264.06 and 94 .30. Any further advance will meet resistance at several levels above he market. In the industrials, there are supply levels at 265-267, at 70272 and again at 275-280. The rails also have various resistance zones.The most important is the 99-102 area. Continue to believe that the better- grade, higher priced issues offer the best buying opportunities at this ttage. I was very pleased by the many favorable comments on last week's letter, Considring the sources of many of the letters I received, they served to substantiate my already firm belief that prices of good, selected common tocks are low at present levels and that, despite some possible further ir- regularity over the next six or nine months, we will witness a much higher level of equity prices over the next few years. One letter posed a very interesting question. It was from a young pro- .fessional man who was just starting to enter higher income levels. His a- vailable funds for immediate investment were relatively small and he said he was confused by the large number of issues on most recommended lists. He wanted to know what two or three growth stocks he should buy at the moment. Ee was not particularly interested in income, but rather in long term growth !n good, established companies. .. Well, it isn't an easy question to answer. There are many companies that wO'JId fit into a list of this nature. Many other issues may work out more favorably than the three stocks I am going to suggest. However, these three Stocks cover a pretty wide segment of the recognized growth industries and that is my reason for selecting them. Two are better quality issues — Union Oarulde and Eastman Kodak. The third is more speculative – Radio Corporation cf America. In Union Carbide, now selling at around 65 and yielding 3.8 based on the 501 regular quarterly dividend and the 501 year-end extra dividend paid in 1952, you have a recognized growth company. It is selling about 17 times stimated 1953 earnings of 3.90 per share. The yield may seem low and the price to earnings ratio high, but this company has an excellent growth rate tn sales and income that should continue. It is the second largest manufac- !er of plastics including the fast growing polyethlene used in squeezable, non-breakable bottles and for transparent wrapping for wires,cables and ship- ping containers. It manufactures six of the eight more important plastics 'der the Bakelite brand name. It is the largest manufacturer of petro- 11emicals. It is the largest producer of alloys and specialty metals in the world. It manufactures over 350 different chemicals. It is the manufacturer of liquid petroleum gas under the name of Pyrofax. In the synthetic fibre field, the company has Dynel which resembles wool in appearance. It manu- factures Prestone anti-freeze and all major types of batteries,electrodes and carbons. Its Eveready batteries are well known. In addition, company has large sales in industrial gases and carbides.Extensive research is being copducted on silicones, hydrogenation of coal and atomic power. Eastman Kodak is best known for its photographic division,but this accounts for little more than half of its total sales. Through the Tennessee Eastman division it has become the second largest producer of acetate yarns and cellulose fibre and is conducting extensive research activities on new acrylic fibres. It would appear that the stock has done little marketwise and has held in the 50-40 area since 1946. However, the purchaser of 100 shares in 1949 t 43 would, through stock dividends, now hold almost 150 shares worth roughly 6400. At present price of 43, the stock yields about 4.1 based on the 1.80 dividend. Radio Corporation is more speculative than the two other issues but has dsnamic growth possibilities. It is-engaged in all phases of electronics and holds many basic patents. The company has the facilities and financial re- sources to fully participate in the growth of color television and tremen- fious field of electric controls. The dividend of 1.00 provides a yield of 4.3 at 23. EDMUND W. TABELL WALSTON & CO. Thu .rfll,may memorllndum is not to b. have an .nterest In some construed or al,l of a. lin oHt or tho '.CUrltI U)hcj,.tlon of me,nholu,d h, H.n to Th,. \I 1\ wc.lnttl.., ffom time to time Wahton & Co, or any partner thereof, f\lourl.9Olfn,9d t rial hal – !ccuret. b'n prepared or finlll, end II by not loll ,u matter of Infrmatlon only It. IS Intended to foreclose Independent InquirY .t., quat… . .baled upon Information behll….d r.llabl. but not necenauly comp 110 .. .. ,.. ., , , ',' , .. .. i.-'-;….–'– – – – – – -,writ j l' Iz! n, ,.,'iU';l , , '.,. .;d'','..' ;'. …- ' '. ; ' .. ……..;r;..,…;……,… . – \- ' , 'f' U

– – – – – – —- – – – – – Walston &()o. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMOOITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Swih.d,nd I OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER October 2, 1953 The market appears to have regained its equilibrium and the past week's session was an orderly one. Both averages continued their moderate .advance followed by a consolidating period later in the week. As I have said before, I believe that the market, despite the action of the averages, has been in a re-adjustment period for two and a half years. While the industrial average only reached a high of 264 in February, 1951, many individual groups and stocks reached their highs at that time ,and have been in a downtrend ever since. At each successive high in the averages of 277 and 281, reached in 1951 and 1952, and finally 295 in Janu- ary, 1943, more groups topped and joined the downtrend so that the average group has been in a decline for two years regardless of the fact that the averages only reached their high early this year. I expect this re-adjustment to continue for a while longer — possibly well into 1954. The technical pattern of individual issues suggests that while many have reached or approached buying levels, they may have to spend considerable time in rebuilding base patterns before a long term advance is . indicated. A number of groups still indicate moderately lower levels while other groups still remain in an uptrend. This selective pattern is not new. tt has been the pattern since February, 1951 and we may have to go through more of it before the base is formed for the broad advance that I expect will occur in the last five years of the present decade. In terms of the averages, if this means anything, the present inter- mediate term advance should continue for a while longer to possibly the 275-280 level. It might top out in November or early in the next year, de- pending on the amount of tax selling and shifting. It may be followed by another decline. Whether the average will actually fall below the 254.36 low of September is problematical and not too important. Certainly, indi- vidual issues will make new lows. However, from a technical point of view, it appears that even the issues that still indicate somewhat lower levels have witnessed the larger part of their decline. What type of stocks should be bought today Should you buy the blue chip issues that have suffered only a mild decline such as Union Carbide, 'General Electric, National Lead, International Paper, Scott Paper, duPont, . General Foods, etc There is something to be said for the purchase of this type of equity. They have shown excellent technical action and still indi- cate higher levels. They are the type of issues that are being bought by institutional investors and, of course, that is why they have shown above average price action. Furthermore, they will not face the problem of year- end tax selling. Or should you buY the issues of above quality but which have suffered rather severe declines from their highs Issues like Deere & Co., American Cyanamid, Food Machinery and American Viscose come to mind. There is some- thing to be said for this procedure too. From a technical point of view many issues of this type have reached or are approaching their downside objectives. Many of them are selling at historically low levels and, at present dividends, are offering good yields. However, on the unfavorable side, they may need considerable time to build up re-accumulation patterns. It appears that they should not be bought on strength but rather during periods of market decline. They could be subject to year-end tax selling and shifting. It appears that the wiser policy may be a combination of the two. Purchase of the better-grade equities on minor weakness is recommended. Would also use a portion of available funds to slowly pick up the more cyclical issues during periods of market weakness. Would also keep a por- tion of funds liquid to take advantage of possible later buying opportunities in issues of this type. , .' EDMUND W. TABELL WALSTON & CO. This may memor1ndum is not have an int.,.d in tsoobee construed or .,1,' of as an offer or solicitation of offers to buy or sell 'Iny securitlu From time to time th. lecuritiel me.ntioMd herein The fore90lng material has been prepared by,! Wahton & Co, as a matter of orrnfarnmy aphaorntnoernlytherIet oif b,lISed upon Informotlon believed reliable but not necenolHlly comPlete, IS not guaranteed as accurate or finol, and Ii not Intended to foreclose Independent inqLmy

— 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 CONNECTEI BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER October 9, 1953 I will be away on a bUSiness trip for the remainder of October. Quoted below are excerpts from an address which I made in Los Angeles on October 8th. Printed copies of this talk will be mailed to you next week THE COMING ADVANCE IN COMMON STOCKS With the various stock market averages recently reaching new low territory for the past two years, the title 'of my talk may seem to you a bit premature. However, I am not talking about tomorrow, next week or next month. I am talking about the next few years. I believe we are very near the start of a long term advance in the price of common stocks that will bring the various stock market avenages considerably above the levels reach- ed in 1929. Before this happens, there may be some f'urther irregularity si- milar to what we have witnessed over the past two and a half years. It is possible that the average will drop a bit below 250 to maybe 240, but that means little to the long term investor if the average reaches 500 or 600 over the next few yearso I believe it will. The next six or nine months may be the last opportunity to buy common stocks ,on the very favorable price to earnings and price to dividend ratios that prevail todayo Any further weakness may be the last buying opportunity because sometime in 1954 the market will start a rise that will carry considerably above 386 high of 1929. This prediction, like my 1948 prediction 'is based on a technical approach, but there is plenty of fundamental and statistical backing for it. The coming advance, in my opinion, will continue to be selective. In the earlier stages, the leaders will be the grO\th stocks !l.nd investment issues that were the leaders of the 1949-1952 rise. I would concentrate for the time being on stocks of companies in growth industries such as banks, electric utilities and natural gas. If I could buy only one chemical stock, I would buy Union Carbide. It covers a pretty wide segment of the chemical fieJd and is the second largest company in the industry, The following better-grade growth issues seem to have appeal at present price levels, both from a fundamental and technical approach. They are Bendix AViation, International Paper, National Lead, Aluminium, Ltd., Pfizer, American Viscose and Food Machinery. Some of these issues have had a rather sizeable price correction and are near reasonable buying Jevels for long term holding. There is not much time left to discuss the newer and more speculative growth industries. Some of these could be quite dynamic. There is plenty of romance in such industries as titanium, electronics, air-conditioning, atom- ic energy, hydraulics, powdered metals, helicopters, rare metals, glass ibers, gas turbines, automatic controls, ethical drugs, alloys, aluminum, detergents, pipelines, to mention Just a few industries. To mention a few individual stocks that are all speculative but have excellent potentials, I like Beckman Instruments, Greer Hydraulics, Piasecki Helicopter, Interpro- vincial Pipe ine, North Americ&n Aviation, Fansteel, Servo-mechanisms, Virginia-Carolina Chemical, Gustin-Bacon, Tracerlab and Gray Manufacturing. The long term technical pattern of the stock market is favorable. I believe the market is less vulnerable at the moment than at any time in the past two years. To the holder of the average stock, rather than the stock market averages, we have been in a bear market since 1951. I believe we are much nearer the end of this readjustment period than the start.After it is ended, I expect a much higher level of equity prices for a number of years. The next few months may be the last opportunity to buy common stocks at the favorable price to earnings and price to dividend ratios available today. There mayor may not be some further irregularity, but to the long term investor it will make little difference if he buys at 260 or 250 or 240 if the market, several years from now, reaches 500 or 600. I believe it will. Let's stop watching the tape and the averages and concentrate on buy- ing selected growth equities at the favorable prices and yields available today. EDMUND W. TABELL , (Written in Los Angeles,Calif.) WALSTON & CO. This may memorandum is not to be have a Inhones! in lome construed or all of as an offer or solicitation of offen to the IIcurities mentionec! herell! The buy or 11111 lIny securities From time to time 'ore90in9 material has been prepared by us Wo!II11on & Co, as a matter of oInr foarnmy atpioanrtnoernlytherIet ofi; based upon InformatIon believed reliable but not necenatlly comp.ete. IS not Ciluaranteed as accurate or final, and is not Intended to foreclose Independent inqUiry

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