Walston &- Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Swawlood) OFFICES COAST TO COAST CONNECTEIj BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER December 3, 1954 The industrial average reached a newall-time high at 391.21 on Tuesday, reacted to 381.81 on Wednesday and was back to 391.74 on Friday. This is more or less the usual seasonal pattern with irregularity in the early part of December and strength in the later part of the month. I believe there is a good chance that the market will have a similar price pattern this year. On my technical work, the market appears to have gene- rated enough upside momentum to work higher into the early months of 1955 with a possible price objective of around 425. In the event of near term irregularity, there is support at 380-375. However, as I have continually mentioned, the technical action of individual issues is much more impor- tant than that of averages. Below is, a continuation of the review of issues mentioned in my letters over the past two years or so. The analysis is based on the technical action of the graphs of each individual issue. These recommendations, as always, are based on longer term holding and not for shorter term movements. ' BLACK & DECKER (50) was originally recommended at 39. The long term ob- jective is 70-80. Over the intermediate term, the objective appears to be 55-60. There is support at 47-45. Buy on all minor declines. BLAW-KNOX (29) has been -in a slow uptrend from the 1953 low of 16. The initial objective is 30-35 followed by a long term 45-50. A very strong long term pattern. Buy on all minor price declines. BORG WARNER (104) was originally recommended at the 70 level. It has reach- ed the intermediate term objective of 100105 at the recent high of 106. The longer term objective is probably 135-145. There is downside support at 92-90 where the stock should be bought. Intermediate term holders might take profits on further strength. Long term holders should await longer term objective. BUCYRUS ERIE (33) has moved up to 33 from the 22-23 recommended level.Its nearer term objective is 36-38 followed by a possible 42-44. There is down- side ,support at 31-29. BURROUGHS CORP. (24) has long been a part of my recommended list. It has advanced slowly from 17-15 to the recent high of 25. Stock does not move rapidly, but there is an upside objective of 35-37. CALIFORNIA FACKING (33) has worked up from the 26-25 recommended area to 33 which is its first objective and where there is some overhead supply. However, the issue appears capable of reaching its next objective' of 40. I would continue to hold, but some patience may be required., CANADIAN BREilING (26) was originally recommended at 19 ith an upside ob- jective of 27 followed by a longer term 37. The first objective was reach- ed earlier this year and the stock has held in the 27-25 area. For those with patience, would advise holding for the longer term objective. CELANESE (23) was badly timed for purchase. My work indicated that the downside objective was either 37-31 or 19 and I thought the stock would hold at its first downside objective. However, the stock appears to be forming an accumulation base in the broad 17-24 area with an upside poten- tial of 31-34. Would continue to hold and buy on minor price declines. CELOTEX CORP. (25) was first mentioned at around the 20 level. It has broken out of the long 14-21 accumulation base and indicates 29-31 follow- ed by a longer term 38. Recent high was 26. There is support at 24-22. CERTAIN-TEED (24) originally came into the listat 15. 'It has broken out of the long 10-20 range in which it held for over seven yarsto reach a high of 25. The initial upside objective is 28-29 followea by a longer term 41. Would continue to hold and buy on minor price declines. CHAIN BELT (40) is a better grade issue with a good yield and indicates considerably higher levels over the longer term. Its price action has been slow so far, but the,intermediate term objective is 65 followed by a longer term objective of 80. CHICAGO & EASTERN ILLINOIS (19)- appears to be building up a potentially – strong pattern in the broad 12-23 range. The upside potential is 32 fol- lowed by higher levels, but considerable patience may be needed before these objectives are achieved. CraHnICgAeGOad GREAT now WESTERN has an u (35) pside has broken out of the long 17-28 accumulation objective of 37 followed by 47-50. There is downside support at 29-30. Th.s memoralldum is nol to btt construed .. an oH., or ,ol'c.lation of oHIf' to buy or s,lI an., tCUrl'. From t,m. 10 time WlIlston & Co. or any Jl!.rtfl.r III.reol, ,.y httye 1111'1 .nternt H. some or aU of Ihe loeuI,H mentioned hlrein. the 10'9'9 trWt.,ial h., IM.n preJNId UI III ., m.tt., of .n',mahon onl., It Ii b,ned upon ,nlo,m,o belteved rehbl. but not nKtI5H1rll., compl,te, II not qua,ant.ed K. or finel. and 11 n. Intended 10 foreclo'e Indep,nd.nt ,nqulTY —- -2- . CHICAGO, ROCK ISLAND & PACIFlC (84) was recommended at the 66-64 level.It has broken out of the broad 60-76 re-accumulation area and has an intermediate term objective of 90-100 followed by a longer term 125-130. Buy on minor declines. Recent high was 85. There is support at 80-76. CITIES SERVICE (125)is a relatively recent addition to the list at 95. It has a very strong technical pattern and ,indicates an intermediate term 140-150 followed by a higher longer term objective. Ability to penetrate the 1951 high of 120 is very encouraging. Stock should be bought on all minor price declines. CITY FRODUCTS (36) was recommended as an investment holding for income (6.8 yield) and long term price appreciation. The stock has an interesting upside potential. Purchase is advised for patient incGme holders. CLIMAX MOLYBDENUM (55) was originally mentioned at the 35-30 level. The recent breakout of the 49-56 re-accumulation range has a projection of 62-68. Would be inclined to sellon strength into that area. COLGATE-PALMOLIVE (60) is another recent recommendation. The recent high was 63. While the intermediate term pattern suggests only 60-70, the longer term pattern is strong. Would suggest purchase on minor price declines. There is support in the 57-55 area. COLLINS & AIKMP.N (17) has done little marketwise for a long time. The technical pattern suggests no dynamic move and I would switch into other issues with more interesting upside potentials. COLUMBIA BROADCASTING (80)has long been a part of my list and was originally mentioned in the 33-30 zone. The recent high was 85 before the 2t stock dividend. The long term price objective appears to be around 100. Time may be required to form a new near term pattern. There is support at 75-70. COLUMBIA GAS (15) was recommended for yield and long term capital appreciation. Would continue to hold on that baSis. Longer term objective is 19-20. COLUMBIA PICTURES (31) was originally mentioned in 14-15 area. The upside penetration of the 8-15 trading area indicated an objective of 35. The recent high was 33. Numerous stock dividends have been paid and at present levels it would appear that the stock has reached its objective. Would switch into other issues with more interesting upside potentials. COMBUSTION ENGINEERING '(57) was recommended at 45. It has held in the 48-58 area since earlier in the year. An upside penetration would indicate 68-72. The long term objective is 80; Continue to hold and buy on minor declines. CONSOLIDATED NATURAL GAS (70) was mentioned in the 50-55 area. The long term pattern continues favorable with an objective of 80-90 followed by a higher long term objective. Continue to hold. CONTINENTAL MOTORS (10) was recently recommended as a long term speculation. The stock has done nothing marketwise for a long period of time.There is heavy overhead supply at 11-12 that may take time to penetrate, but there is very little suply between 12 and 18. Buy for patient holding only. CORN PRODUCTS (90) has an intermediate term potential of 95 followed by a long term 115. The stock moves slowly but is of good investment quality. There is downside support at 85. CORNELL DUBILIER (34) originally entered my list at 22-21. The long term objective is 41. Would hold for that potential. CRANE CO. (38) has been in my list for a long time. It is now near the upper part of the long 26-42 range in which it has held for over three years. Would be inclined to sell in hope of buying back again in the lower portion of the long trading area. DECCA RECORDS (17) reached its initial objective at the recent high of 18. The long term objective is 25, but more time may be needed for consolidation before the longer term objective is reached. DENVER, RIO GRANDE & WESTERN (96) was originally recommended at 46 on the basis of the present stock. The three-for-two split has distorted the technical pattern somewhat, but the stock still remains in a long term uptrend. The objective is not clear. DE VILBISS (24) was recommended as an income issue with long term appreciation prospects. Has recently reached new high territory. Objective is 27 followed by a long term 34. DOME MINES (17) has been a very disappointing recommendation. See no signs of an immediate move. vlould switch into other issues. EDMUND 11. TABELL WALSTON & CO.

IF,.;)'.. , Walston &- Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO Sw;twl..d) OFFICES COAST TO COAST CO'lNECTEC BY DIRECT PRIVATE WIRE SYSTEM TAB Ell'S MARKET lEnER December 10,1954 Both averages reached new high territory during the week with the Dow-Jones Industrials at 395 . 67 and the rails at 137.90. My intermediate term technical indicator, which has been in overbought territory for some time, gave a sell signal at Hednesday's close but, in my opinion, this is not an important signal at this stage of the market. It may result in the usual seasonal irregularity which is common at this time of tye year.There is support at 385-380 in the industrials and 135-132 in the rail average. From the present technical action it would appear that a buy signal will again be given later in the month at a price level not too far away from present prices. I believe the market has enough momentum to carry forward , rails'tofhe -425 level fi1the-industri'al'sanci-1'50-155' ih the'- during il1e – , early months of 1955 with speculative issues leading the advance. DOVI CHEMICAL (44) is my first choice for a long term growth issue. No im- mediate price action of importance is indicated, but the long term trend is very favorable. Vlould hold and add to holdings at the originally recommended level in the 40-38 zone. DRESSER INDUSTRIES (35) is a comparatively recent addition to my recommended list. It has pushed through the heavy reSistance in the 30-33 area. The intermediate objective is 40-45 followed by a long term 60-70. There is downside support at 33-31. Hold and buy on minor price declines. EAGLE PICHER (28) originally entered the list in the 22 area. At the recent high of 29, the stock had almost reached the 1946 high of 30. Long term pattern is favorable and would continue to hold for higher levels. EASTERN AIRLINES (39) has advanced sharply from its originally recommended level of 23. The long term objective is 41. At the recent high of 40, this objective has almost been reached and some consolidation may be needed. Vlould switch into Pan American World Airways which appears to be behind the market. EASTMAN KODAK (69) was originally recommended at 43. The recent high was 72. The stock has reached its intermedte term objective, but the long term' pattern stil'lndicateE -higherlev'ets;However -scinie-cOOscllida't-ion ' may be needed and would be inclined to take profits on further strength. ELECTRIC AUTOLITE (37) has been one of the poorer acting issues in the list. There is overhead supply at 40-45 and I would be inclined to switch into other issues with more favorable capital appreciation prospects. ELLIOTT CO. (26) has been a poor performer and has done little marketwise during the general market advance. There is no indication of any immediate move, but the long term pattern is still favorable and I would consel retention for patient 'holders. EL PASO NATURAL GAS (39) has a favorable long term pattern, but there is no important immediate indication. Hould be inclined to transfer into issues with more pronounced upside potentials. FANSTEEL METALLURGICAL (27) has a very interesting technical pattern.It held in the 21-,26 area from mid-1953 until recently. The upside penetration indicates 31-33 forthe intermediate term followed by a higher long term objective. Purchase is advised. FERRO CORP. (31) is nearing the 32-35 overhead resistance and some consolidation may be needed. Vlould take profits and switch into issues with a better upside potential. FLINTKOTE (40) has roken out on the upBide of the long 33-22 accumulation area. The intermediate term objective is 45-50, followed by a higher long term indication. Hould hold and buy on minor declines. There is'sup- port at 37-35. FRUEHAUF TRAILER (34) has broken out of the 22-27 accumulation area and has reached a high of 35. The objective is 41-43. \IIould hold until that level is reached. GARRETT CORP. (36) reached its upside objective at the 1954 high of 41. Iould take profits on strength. c lengtr.y consolidation area appears needed. GENERAL MILLS (74) is a recent addition to the list. It was recommended early in November at 69 and has reached a high of 78. This is an investment issue for long term holding. The long term objective is 90-105.There is downside support at 70-68 where additional purchases should be made. r. './' . — '''-7'' '',.. r..,,,,…,,1! II IP' 1,,''' ,'9,. 'WI' ''ll , -2- GENERAL RAILWAY SIGNAL (39) reached its intermediate term objective at the recent high of 41. While higher levels are indicated over the longer term,some consolidation may be needed first. Would take profits on strength. GLIDDEN CO. -(42) originally entered the list in the 34-33 range. The long term pattern suggests higher price levels, but there is heavy overhead supply at 42-46 that may slow action. Would take profits. GRAY MFG. (14) has done little marketwise recently. It appears to be building up a slow accumulation area in the 13-16 range and it would appear that a return to the 20-21 area is a possibility. hbility to move above the 1953 high of 21 would indicate substantially higher levels. GREAT NORTHERN RAILWAY (34) has broken out of the long 23-29 accumulation area and indicates an advance to the 40-47 area. Buy on minor price declines. There is support at 33-31. GREER HYDRAULICS (17) This stock has done little marketwise for a long time. While there is no indication of an immediate move, a strong tech- nical pattern appears to be forming in the 16-19 area. An upside penetration would 0 indicate 28- 33. An interesting-specul-a'tion o– – – – – GULF, MOBILE & OHIO (35) The upside penetration of the 27-31 base indi- cated a possible advance to 40-45. A high of 35 was reached in August, but the overhead supply at 35-37 held back a further advance. Enough consolidation has occurred to warrant the belief that the stock will push through the supply to reach the indicated objective. Would continue to hold. HALL PRINTING (19) Would continue to hold for generous yield (7.3) and slow long term price appreciation. HERCULES MOTORS (18) is an interesting speculation. The stock has held in the broad 14-23 area since late 1946. Patience may be required, but an upside breakout would indicate substantially higher levels. At the 1953 year-end, the stock had a book value of over 35 a share and working capital of 26 a share. HERSHEY CHOCOLATE (40) has held in the 38-44 area Since 1951. An upside penetration would indicate considerably higher levels. Recommended for long term 'wIding in investment accounts. HEWITT ROBINS (33) The upside penetration of the long 14-29 range indicates an advance to the 50-60 level. Patience may be required, but the stock has a strong technical pattern. Hold and buy on minor dips. There is support at 30. . HOOKER ELECTROCHEMICAL (28) This recently split stock is in a slow uptrend channel. The initial objective is- 32-34 foIl-owed –by a long term–4-0; An -. attractive purchase. There is support at 28-26. IDAHO POVIER (53) is an interesting growth utility. While mJst utilities have reached their upside objectives and appear in need of consolidation, Idaho Fower still has an objective of 68. Recent high was 57. There is downSide support at 50-49. – INDUSTRIAL RAYON (49) has broken out of the 39-45 accumulat.ion area with an upside objective of 58-63. Recent high was 52. Buy on moderate price declines. There is support at 47-45. INTERCHEMICAL CORP. (38) was first mentioned in the letter in the 20 area. It reached its intermediate term objective at the recent high of 40. How- ever, the longer term objective appears to be 48-53 so I would continue to hold. INTERNATIONAL TEL & TEL (25) has reached its first objective at the re- cent high of 26, but would continue to hold as the next objective of 31 appears likely to be reached. JAEGER Mt.CHINE (28) is another recent recommendation. The stock has broken out of the long 19-26 range in which it has held since 1951. The upside objective is 34 followed by a later 42. Buy on moderate declines.There is support at 28-26. JOHNS MANVILLE (86) recently reached a high of 91. The long term objective is 95-105. Would sell on strength into that area. – – -,- JOY MANUFACTURING (40) has shown improving price action recently.The stOck has held in the broad 25-43 area since 1948. An upside penetration would indicate substantially higher levels. Ability to reach 41 would be ini- tially constructive. KENNECOTT COPPER (9'71 entered the list at 63. The upside objective appears to be around 110. WOUld continue to hold and buy on declines. There is support at 90-85. LEES (JAMES T.) (30) has reached a -new high at 30. Would continue to hold. The initial upside objective is 35-37 followed by a possible higher ob- jective at a later date. – LEHMAN CORP. (45) is in slow uptrend.lnitial objective is 46-48,but longer term pattern suggests an even higher level. Would continue to hold. LION OIL (47) haspushed through the heavy supply at 41-46. Intermediate term ObJective appears to be 55-60. Continue to hold and buy on minor price declines. EDMUND W.TABELL WALSTON & CO. – , ,- .

, ,' I Walston &Co. — MEMBERS NEW YORK STOCI( EXCHANGe AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISw,Id) ,OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER December 17, 1954 After declining to lows of 385.03 on the industrials and 134.36 on the rails, the market rebounded sharply in the final part of the week. The rail average led the advance and decisively penetrated the previous high of 137.90 to reach a new high at 143.38 . The industrials, at the week's high of 396.34 , just about equalled last week's high of 395.67. There may be some further irregularity before the year-end, but I would expect a continuation of the advance to the 425 level in the industrials and to the 150-155 level in the rails in early 1955. LONE STAR CEMENT (58) has reached all upside objectives at the recent high of 64 and has advanced sharplyJrom its originally recommended level of 0 28. Time may be needed to form a-new pattern. On strengTh,-'woUld switch .,. ' into other issues with better appreciation prospects. LOUISVILLE & NASlNILLE (86) recently reached a high of 86. The upside potential appears to be 88-90. Would take profits in that area. LOWENSTEIN & SONS (44) has been one of the better acting textile issues. It originally -entered my list in the 28-30 area. The eventual upside ob- jective is 55-60. I would continue to hold and buy on minor price declines. MASONITE CORP. (25) has shown improving action recently after a poor performance since 1951. It has pushed through considerable upside resistance to reach a recant high of 27. The immediate pattern is not clear, but a constructive pattern appears to be forming and retention is advised. MERCK & CO. (20) is a recent addition to the list. The stock appears to be building up a strong potential base in the 17-22 area. An upside penetration would indicate 26 followed by 34. Stock appears to be a purchase at around present levels. MINNEAPOLIS, ST. PAUL & SLT. STE. MARIE (16) Soo Line has been a very poor recommendation. It has formed a small base but there is heavy overhead resistance at 17-19 and I believe it advisable to sell or strength and transfer funds into issues with a better upside potential. MINNESOTl, POWER & LIGHT ( 23JJhestockisinaslow\'\Iltrend channel. No immediate move is indicated but stock can 'be bought'for'above 'average – – utility yield. MISSOURI-KANSAS-TEXAS,PFD. (72) entered the list at 55. It has shown very little price action recently, but the technical pattern is very strong. The intermediate term indication is 85-90 followed by a longer term 104. There is suport at 70-67. Hold and buy on minor declines. MONSANTO CHEMICAL (103) is another recent recommendation at 93. The intermediate term indication appears to be 120 followed by a higher long term potential. \ould continue to hold. MONTANA POVIER (38) has recently held in the 35-38 range. An upside pene- tration would indicate a possible further advance to the 43 level. Would continue to hold. MONTGOMERY WARD (77) has been on my 11st for quite some time. The pro- – jected intermediate term objective appears to be 85-90 with higher potentials over the longer term. Would continue to hold. MULLINS MFG. (23)iS another recent recommendation. It has done little marketwise for quite some time, but appears to be slowly forming a strong technical pattern. Ability to reach 26 would be constructive and indicate an intermediate term 34-38. There is some suppl at 26-29 that may temporarily slow the potential advance. NATIONAL AIRLINES (22) was recentlyrecommended at19. It-has moved up to a high of 23 but the upside potential appears to be 27-30. Would continue to hold. NATIONAL GYPSUM (47) entered the list in the 20-22 area. It recently reached a high of 49. The upside potential appears to be 50-55 so I would advise taking profits on further strength. NEW YORK AIR BRAKE (25) until recently was one of my most disappointing recommendations. However, it recen,tly has broken out of the broad 13-23 range in which it has held for eight years to reach a high of 27. The initial objective appears to be 29-34 followed by a higher projection over the longer term. Would continue to hold and buy in the 23-22 support level. Thl memorllftdum is not to be construed oil an offer or sol.clt.tion of oH,., to bur or II ,n, ncur.tics FrOiTl tim. to time W4lhton & Co i lff, …r ftllrtner t fh.rlo!. may hlit..!! an 'nl,r, ,n lome or all CIt the ,curie, mentioned h.in Th, for.qo,; m4lterial h.u baell prepa,ed b' I at 41 matte' 0 III 'I,ma Oil o 'I or It b..d UPOII ;1I'Ot'411ooli believed rehable by! 1I0t lIecena'lly complete, If 1I0t ;yatallteed as accu'at, or filial, and 1I0t ,nt,nd,d to Imedole Ind,p,nd, '''Ciu Y – -' r -2- NEVI YORK CENTRAL (30) was recently recommended in the 20-21 area. The intermediate term objective appears to be 35-39 with higher levels projected over the longer term. The 28-27 area should furnish support. Hold and buy on minor price declines. NEVI YORK, CHIChGO & ST. LOUIS (48) has rallied to 48 and is in its up- side objective zone at 46-52. Vlould be inclined to take profits on further strength and switch into issues with better appreciation prospects. NORTHERN PACIFIC (71) was recently recommended at 59. The upside penetration of the year-old 52-64 area was very constructive and breaks the downtrend from the 1952 high of 94. There is some overhead supply that may slow action but the long term potential is 95-105. NORTHVIEST AIRLINES (16) At the recent high of 17 was near the overhead resistance at 18-21. ould switch commitments into Pan c.merican World Airways. OTIS ELEVATOR (68) entered the list at 39. It has reached its intermediate term objective of 67-7SJ,. but the longterm obtectie is80-90. Would continue to hold and buy- in the 62-60 support level – – OI.JENS ILLINOIS GLASS (98) reached a recent high of 101. The intermediate term objective is 108-112 but the long term potential is very impressive. vlould continue to hold. PAN AMERICAN WORLD AIRVIAYS (18) continues to be my favorite airline selection. There is some minor supply at 21-23 but 26-30 appears to be the intermediate term indication followed by 35-40 for the long term. Would switch other airlines into Pan merican. PARAMOUNT PICTURES (36) has been in my list for a long time. It was originally mentioned at 23, The intermediate term objective is the 41-48 zone. Continue to hold and buy on minor price declines. PARKE DAVIS (36) is forming a similar pattern to the other ethical drugs. It has broken out of the long 31-37 range to reach a high of 38. There is some overhead supply at 42-46 that may slow action, but the ultimate objective appears to be 50-52. PENICK & FORD (46) is another recent recommendation. ThiS better grade issue moves slowly but it has an ultimate objective of 63-72. Buy on minor price declines. PENN-DIXIE CEMENT (78) was originally recommended in the 34-33 range. Its upside objective was 73-80 and this was reached at the recent high of 80. Time may be needed to form a new pattern and would take profits arid switch-into issues With-ii-more iniinediate–upside poteiit1al-.———- PENNSYLVANIA SALT (50) has done little marketwise but the upside pene- tration of 41-46 accumulation area indicates 59-65. The 1951 high was 71. Vlould continue to hold and buy in the 48-45 support zone. FFIZER (CHAS.) & CO.(35) appears to be slowly forming a strong accu- muation pattern. Ability to reach 39 would be constructive and indicate a longer term 55-60. PILLSBURY MILLS (53) originally entered the list at 35. Its technical action has been good. Vlould continue to hold. The long term indication is 60-70. PITTSTON COMPANY (30) has a rather irregular pattern, but the upside potential is quite substantial. There is overhead supply at 30-32 that appears to be slowing the advance but would continue to hold. PUBLIC SERVICE OF COLORADO (44) appears to have reached its first upside objective at the recent high of 46. Time may be required to form a new pattern. Vlould switch into Idaho Power or Montana Power. PULLMAN CORP. (64) has moved up to a high of 66 from the recommended level of 51. Vlould continue to hold as the intermediate term objective is 70 and the long term objective is 85. RADIO CORP. (38) entered the list at 22. The upside objective is 43, which could be, reached early in 1955 followed by the formation .of a new pattern. Vlould sellon strength. RAYBESTOS-MANEATTAN (50)has broken out of the broad 368 range to reach a high of 53. The objective is 80-90. Continue to hold and buy on the 48-46 support area. RAYTHEON MFG. (18) has a very strong technical pattern and indicates a possible 30-35. There is some overhead supply at 19-23, but would continue to hold and buy on moderate price declines. REFUBLIC STEEL (72) has advanced nicely from its recommended level of 52. The upside potential is 72-78. There is also a possible 84 in the pattern. Would sellon strength. ROBERTSHAW-FULTON (32) was originally rec,ommended at 21. The upside objective is 40-45. Continue to hold and buy on minor price declines.There is s-Jpport at 30-28. EDMUND W. Tf.,BELL WALSTON & CO.

..-'\. ., – ,, , I Walston &Co. MEM8ERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMOOITY EXCHANGES ' NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO IS.;hld) OFFICES COAST TO COAST CONECTH;' BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lEnER December 23,1954 Statistics JOY MANUFACTURING CO. Joy Manufacturing appears to be en- Current Market Current Dividend Current Yield Long Term Debt Freferred Stock Common (Shares) Net Fer Share, 1954 Net Fer Share, 1953 Sales, 1954 Sales, 1955 47 2.50 5.3 4,759,000 893,894 -4.08 5.89 62,775,196 77,776,125 tering a new cycle of growth. The President, J .D.le.Morrow, who has been a very large factor in the suc cess of the company,and the Directo 'E decided several years ago to develo new top level executives from the very promising young men that were a menthe col,rlgup in theorgq.Dization and add few highly capable re cruited from the outside. The job has been done and the new team is or the field. The organization is pre- dominantly young and aggressive, but Mkt. Range -1951-1954 48 5/8-29 1/8 steadied by a sufficient number of veteran executives like Mr. Morrow and Harold R. vlheeler, Vice President in charge of Export Sales and Foreign Operations, John Lawrence, Executive Vice President is 43. William L. Wearly, General Sales Vice Fresident is 39. Other key executives range in age from 32 to 37. Joy is the pioneer and leading company in a relatively new segment of the labor sa'!ing field – the ,mechanization of mining. While Joy's products mainly serve the coal industry, the company is dOing a thorough-going and energetic job in undertaking to di-lersify its sales and build up its busi- ness outside of coal as it has done and is doing in coal. Joy is continu- ing to drive aggressively for business in other markets. In the broad mar- kets available in fields other than coal, the company has been successful in the past seven or eight years in tripling business. In the 1948 fiscal year, a breakdown of Joy's sales by major markets showed 68 contributed .. by coal ..In the-194 f.iscal-year-, this -had-been- cut to- 2..- – The company has definite goals. They are entrenching temselves more solidly in metal and hard rock mining, general industry, oil and gas fields and heavy construction. They are moving more strongly into aircraft and electronics with a variety of products for those industries. Joy has help- ed the coal industry get out of red ink into black. It has done the same with other industries. There is the multimillion dollar and highly profit- able potash industry in Carlsbad, New Mexico. In 1939, potash mining was a small hand operation trying to compete with foreign mined potash. Today ninety percent of this industry uses Joy equipment and, through mechani- zation, hmerican produced potaSh is the lowest ost potash produced any- where in the world. In another type of mining, Joy also is of tremendous assistance. The White Pine Copper roject in the upper peninsula of Michi- gan, into which the Government put in a lot of money, is a low-grade ore project. It is producing ore so cheaply today that it is actually compe- titive with much higher grade ores produced in other parts of the country. Better than ninety percent of the equipment at White Fine is Joy. They chose Joy air compressor, Joy drills, Joy loading machinery, conveyors and loading equipment. In the heavy construction field, Joy's new pneu- matic drilling machine, the largest of its type ever built, is being used in the tremendous rock fill dam project in the San Joaquin Valley of California. In. thehighwayconstruction f-ield,Joyequipmenti.s being used in the construction of the New York State Thruway. The aircraft in- dustry also offers Joy a substantial market potential. For many years Joy has been designing and manufacturing huge mine ventilating fans up to 12 feet in diameter. Because of the mine fan business,Joy had developed a good Fan Engineering Department staffed with good technicians. From this beginning, Joy has gone into the design and manufacture of many types cf specialized fans and blowers requiring high performance. Today, approxi- mately eighty percent of the cabin pressurizing and ventilating blowers for the aircraft industry are built by Joy. The company has also entered the growing hydraulics industry with a hydraulic hose and special fitting. Such hose and fittings are used in mining machinery, in construction equip- ment and by tractor companies. Practically everyone who builds heavy ma- chinery uses hydraulics and they need hudraulic hoses and fittings. -2- Just this one product could result in annual sales of 2 million in two years and 5 million annually or more in the next three or four years. In the mining field, Joy has developed an interesting and productive sideline business which involves geological exploration for ores and minerals by means of a Contract Drill Division. Exploratory work, by contract, is done for mining companies, land companies, etc., anywhere in the United States. These explorations keep Joy informed in advance of future mining developments in zinc, iron ore, copper ore, uranium and other metallic mineral deposits. Then the Engineering and Sales Department can plan to meet the special needs of the future customer when he is ready to open his mine. Joy is prominent in the coal mining field and intends to maintain that position. It is notandoning the coal mining field. They believe coal has a great future. The booming electric power industry is creating new demands for coal every year. lso the day may not be too remote when coal may be gasified and fed into the natural gas pipelines of the country. In spite of the serious competition which coal has been getting from other fuels during the past- few years, new mechanizationdceveloped,,,byJoyis offering such positive cost saings that coal may move into a better competitive position. In 1954, it is estimated, the average output per man per shift in the coal mines of the United States will be about 8 tons. Mines mechanized with latest and most productive Joy equipment are averaging anywhere from 25 to 50 tons and before 1955 is ended there will be numerous mines producing still higher tonnages per man per shift with the new Model l-CM Joy Continuous Miners and Joy Extensible Belts. Much of the present mechanization is obsolete and will have to be replaced with later and more efficient machines. This new equipment assures Joy of a continuing profitable base load of coal machinery for many years to come. The positive plan for Joy's future growth falls into three divisions. The first is to engineer and develop new products. The second method is by acting as a sales outlet, a channel for distribution for other companies. The third method by which the company will grow is by the acquisition of other companies. This has worked out well in the past. Companies acquired since 1945 for a cost of 8.8 million have earned for Joy sine that time, after all taxes and charges, about 21.1 or approximately two and one-half times what was paid for them. An increasing amount has been expended for Engineering and Research activities. In 1951 for every 100 people on the payroll there were 5.9 -personSin engneering-and -re-s-earch;- Last —yearTthe–frgure—wa-s–T'-;-5for- every 100 and it is expected that shortly the ratio will be 10 for 100. In 1948,Joy spent 1.3 million on engineering.Last year,2.5 million was spent. The growth and prospects for foreign business are very encouraging. The total business Joy did outside the borders of the United States in 1954 ran between 27 and 28 million. This has grown from 2 million in 1939 or an increase of 1,250. Joy operates in 72 countries with nine wholly owned foreign subsidiary companies. In addition, the company has manufacturing arrangements with five independent foreign licensees. Foreign sales are highly diversified in regards to types of customers served as well as geographic location. Coal is of secondary importance. For instance in France, the largest foreign customer, only 8 of the sales volume is in coal. Joy machinery is used to mine iron ore in Lapland, phosphate, manganese, zinc and cobalt in Morocco, tin in Malaya and Bolivia, copper in Rhodesia and Chile, potash in France and Germany, gold and uranium in Canada and South Africa. Joy sells to the petroleum industry of Saudi-Arabia, Burma and Venezuela. Joy's equipment is playing an important part in the development of hydroelectric power in India, Switzerland and France. A new factory is operating in Johannesburg, South hfrica, to build Joy machines for diamond, gold and uranium mines. In 1954, the total profits from foreign business'-were equivalent to 1.57 a share of the parent company's stock. About two-thirds of this amount is included in the parent company's earnings of 4.08 a share for 1954. The balance was not remitted. Joy sales were lower in 1954 chiefly because of depressed conditions in the mining industry, especially coal. Higher sales and profits are expected in 1955. 1954's earnings of 4.08 should be a floor. From a technical viewpoint,the stock has built up a very strong pattern. hfter reaching a high of 43 in 1948, the stock declined to a low of 23 5/8 in 1950. For over four years it held in trading area between roughly 30 and 40.The recent upside penetration of this long accumulation area to a recent high of 48 5/8 presents some interesting potentials. The intermediate term objective appears to be 53-56,but the long term potential appears to be in the 75-100 area. The stock has advanced sharply recently, but the 45-40 area should now be a support zone and the upside potential over the longer term is large. EDMUND \'J TABELL WAlSTON& CO … -.1

Waston &- Co. I MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY' EXCHANGES NEW YORK PHILADELPHIA LOS NGELES SAN FRANCISCO LUGANO (Sw;twlaod) TABELL'S MARKET LEnER 1OFFICES COAST TO COAS CONNECTED BY DIRECT PRIVATE WIRE SYSTEM December 31,1954 Both averages moved ahead't new high territory during the past week. The industrials reached 404.20 ad the rails were at 146.00. On Wednesday, transactions four years. totale There d i s 4,43 no 0,000 change insares my which was the largest volume in over opinion. I continue to believe the market has enough momentum to moJve somewhat higher and to reach at least my projected goals of 425 on the inudstrials and 154-156 on the rails. I continue to think that secondary issues may move more rapidly than the higher grade issues in the next hase of the advance. ST.JOSEPH LEAD (44) now has an upide objective of 51-56 and appears behind the market. vlould buy at a ound present levels. SERVEL (8) has been a'very poor Jerformer, but would continue to hold as a long term price speculation. Fatience will be required. SHAMROCK OIL (61) entered my lis at 36-34. Reent high was 68. The up- side objective is 65-75 'so ould advise profit-taking on strength. The stock will shortly go exdividend 50 so the comparable upside object- ive will be 44-50. ,. SIMMONS CO. (42) appear; to be an attractive purchase. The nearer term indication-is 47-52 and the ,long oerm indication is 70-80. There is support at 37-35. SINCLAIR OIL (52) is a recent addtion to the list at 46. Continue to hold. There is a potential 58-64 n the pattern. SMFrH, A.O. (40) has an irregular pattern but the upside potential is 60-70 over the longer term. Contnue to hold. STANDARD PACKAGING (27) was OrigihallY recommended at 13-14. The re- .. cenLlligh was 31.DE!sp1t. Jb-.e shatP aciyan….,w9uld conUJg!.ELt9h91d., The' eventual obje'cnve is 36-'45. -. . SYLVANI, ELECTRIC (47) has moved p from the originally recommended level of 35, ut the objective islhigher. The intermediate term projection is 60-64 followed by a p06sible 75-80. Continue to hold. TUNGSOL ELECTRIC (28) is a recent! recommendation that has done little marketWise. Has been holding in is 39. Would add to holdings. thIe 27-30 area. The upside potential UNION BAG & PAPER (70) recently rached a high of 75. The upside ob- jective is 70-80 so would be inclined to take profits on strength. UNION CARBIDE (87) is one of a slowly is ris a in glontrgentedrmp1ngcrotwuatthedissbuyes. mTahlel entire pattern trading plateaus. Would take advantage of minor deciines to add to holdings. UNION OIL (56) has a near term inJication of 60-62 followed by a long term 75-85. There minor declines. is support at 5I-50. An excellent purchase on all UNITED FRUIT (55) is a slow moving issue but the long term indication is 70-75. A good investment type issue with a good yield; UNITED MERCHJ,.NTS(19) isOa-re'cent irecommenctat'iOn—- It 'ha's hown little price action until recently. The objective appears to be 29. UNITED SHOE MACHINERY (51) is anoher recent recommendation. This stock appears to have reversed its long downtrend. The first ob- jective is 55-65 followed by a long term 85. Continue to hold and buy on minor price delines. ! U.S. GYPSUM (228) originally enteed the recommended list in the 105110 area. At the recent high of 233, the stock had almost reached the long term upside objective of 1240. A lengthy consolidation period may be needed. Would transfer intc situations with better near term appreciation prospects. ,- -2- U. S. STEEL (74) was recommended for purchase last Spring at 46. Ha reached its long term upside objective and the small base at 67-71 indicates 74. \llould take profits and transfer funds into recommen,ded oil issues. VANADJ-UM CORP .40) has-'-been a part –of theli-st-for 'a-rang 'trine. Originally recommended at 20-19, it has reached new high territory at 40. Viould continue to hold as the intermediate term objective appears to be 44-48. VICK CHEMICAL (54) has advanced from a recommended level of 23-24 to the recent high of 57. It has now reached its upside objective. Viould transfer into situations with better appreciation prospects. VICTOR CHEMICAL (36) has a-n initial upside objective of 42-44 followed by a longer tArm 48-52. Viould add to holdings in this bettergrade issue on moderate price declines. VISKING CORF. (68) has a long term indication of 95. Has held in the 62-71 area since early 1954. An upside penetration would indicate 85. Stock appears to be in a buying area. WAR-REN FETROLEUM (51) has moved up from its recommended level of 28-25 to reach its intermediate term objective at the recent high of 52. \'Iould continue to hold as the longer term objective is 70-75. WESTERN AUTO SUPFLY (50) has done nothing marketwise, but is good , hold-ing-for- yieJd -and- gradual -appre-c-iati-on—- -, – – – WESTERN MARYLAND (34) has broken out of the 20-27-accumulation area and now indicates an intermediae objective of 42-46. The longer term objective is a possible 55-60. WESTERN PACIFIC (65) has a very strong technical pattern. Some patience may be required, but the formation suggests 100 followed by even higher levels. Hold and buy on all minor price declines. WESTERN UNION (76) has advanced sharply. from. It was recommended not so long ago at 50. It reached its intermediate term objective at the r';ent high of 82, but it appears to be consolidating. Next object is 110. Continue to hold and buy on minor declines. YLE & TOWNE (51) has a very avorable long term pattern. The inter- mediate term indication is 61-65 followed by a long term 80-90. Continue to hold. I ZENITH RADIO (91) also has a very favorable long term indication. Its objective is 130. Buy on all minor declines. T – EDMUND w. TABELL vlALSTON & CO. 1-. VERY HAPPY AND FROSPEROUS NEVI YEAR TO i,LL.