— Walston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Swit,l.nd) OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER March 12, 1954 It is generally accepted that the market has been selective since 1946, but I wonder if most people realize just how selective it has been. The action of the general averages doesn't even start to convey the markets within markets that have been going on since 1946. This has been mainly brought about by the growing importance of institutional buying and selling as against the declining in- fluence of purchases and sales of the short term trader. The trends of today are brought about largely by reasoned professional thought rather than emotional hopes and fears. It is a much sounder and sensible market. It is difficult to portray what has happened but possibly a breakdown of the market into three different groups will help. First, have selected twenty blue chip equities. The chOice has been based on a recent article in Trusts and Estates. These are the twenty favorite stocks of 130 Common Trust Funds of leading trust companies. The stocks are American Can American Cyanam DuPont, E. I. General Electric General Foods General Motors Gulf Oil Johns Manville Kennecott Copper National Dairy Penney, J.C. Phillips Petroleum Sears Roebuck Socony Vacuum Stand.Oil of Cal. Stand. Oil of Ind. Stand. Oil of N.J. Texas Corp. Union Carbide Westinghouse Elec. The second group I have selected myself. They are the light blue chips or businessman's risk type of eqUity. They are somewhat below the quality of the above group but all are sound companies. They include Allied Stores Allis Chalmers Babcock & Wilcox Blaw-Knox Bucyrus Erie Burroughs Chain Belt Clevite Corp. Crane Co. Distillers Sea. Elliott Co. Joy Mfg. Lowenstein Mead Corp. National Gypsum N.Y. Air Brake Penn Dixie Cement Rheem Mfg. Sylvania Elec. Yale & Towne The third list is a more or less arbitrary selection of twenty low-priced, speculative issues. It is based on the twenty most actively traded low-priced common 'stocks during 1953. It is the type of issue that the institutional buyer, in the main, would not follow. The list includes American Airlines Armour & Co. Avco Corp Balt. & Ohio Canada Dry Columbia Gas Emerson Radio Gimbel Bros. Pennsylvania R.R. Internat'l Tel & Tel Pepsi Cola Loew's Raytheon Mack Truck Rexall Drug New York Central Servel Packard Spiegel Pan-Amer.World Air. All of my calculations have been figured on the average price of May, 1946 as a base period. This is the month in which the various averages reached their 1946 highs. To make calculations easier and eliminate fractional shares, I have assumed an 100,000 investment in each group with an equal dollar investment of 5,000 in each of the twenty indiVidual stocks at the average price of May, 1946. Thus the base figure is 100 in all cases. The two averages are figured on the same basis. , .. Walston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw;t,.,Id) OFFICES COAST TO COAST CQNNECTEC. BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER -2- It must be realized that prices were very high in May, 1946 and yields and price-to-earnings ratios were very low based on 1946 earnings and dividends. For example 20 Blue Chips 20 Light Blue Chips 20 Low-Priced Yield 3.5 3.1 1.4 Price Times Earnings 6.4 7.2 5.2 Here is how a continued holding of the purchases made in May, 1946 would have worked out at various stages of the market May June Sept. Jan. Jan. March 1946 1949 1951 1953 1954 1954 20 Blue Chips 20 Light Blue Chips 20 Low-Priced Dow-Jones Industrial New York Times 50-Stock 100 100 100 100 100 81 150 56 92 38 59 80 135 74 124 162 161 169 96 90 97 62 51 54 142 138 142 135 124 133 It can be plainly seen that the investment issues have far outpaced the other two groups. There is a fundamental reason for this. For example, here is how much in earnings were behind the three groups provided the original 1946 purchases were held intact 1946 1949 1953 20 Blue Chips 20 Light Blue Chips 20 Low-Priced 6482 7175 5215 11,458 11,458 3,608 15,219 12,196 6,695 , The dividends show about the same pattern I 1946 1949 1953 20 Blue Chips 20 Light Blue Chips 20 Low-Priced 3520 3080 1462 5456 5003 1538 7912 6175 2103 Fromthe above compilations, it would appear that the light blue chips are definitely behind the market. While earnings and dividends have not increased as sharply as those in the blue chip group, they are considerably above 1946, while the group is selling slightly below the 1946 price level. It is also evident that there is no reason to expect a sharp upward move in most of the low-priced group. There will be exceptions, of course. EDMUND W. TABELL WALSTON & CO. ThIS mcl'nordndum is not to be construed as an offer or sol.eltaiton of offers to buy or sell (lny seCI,Jrot,(!s From t,me to t,me Walslon & Co. or any pilrtner thereof, mily have an Interest .n some or alt 01 the securd,e! mentioned here,n The foregOIng male,1 h(ls been prep'Ired by us as a matler 01 mfa.matlon only It IS bo.lsed upon ''Ormd/lon believed relldble but not necelscHlly comple!e, .1 no! qUiHdn1eed dl dccurd!e or flndl, dnd , not Intended to foreclole .ndependent InQUirY

– – – – – – —– ——————— Walston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,t,ldl OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lEnER March 22, 1954 AMERICAN RADIATOR & STANDARD SANITARY CORP. STATISTICS BACKGROUND purrent Market (approx.) urrent Dividend urrent Yield referred Stock rommon Stock (Shs.) Net Per Share 1953 Net Per Share 1952 Sales 1953 Sales 1952 Current Assets Current Liabilities () As of 12/31/53 Market Range (1953-54). –; – -o 16 1/2 1.25 7.6 .;; ,38(; , itoo 10,043,291 1.83 1.78 298,268,000 277,153,644 126,892,367 32,665,683 American Radiator is familiar to everyone as the world's largest manufacturer of heating plumbing-and-ventilating equipment. Other operations embrace building accessories, plastics, temperature controls, etc. In addition, the company produces fluid drives for industrial and marine use. It recently has entered the air-conditioning field and is pursuing an active development program. Plant facilities consist of 29 units in the United States operated by American Radiator and its subsidiaries, four in Canada and 13 affiliated units in Europe. Distribution is handled on an extremely broad scale; blanketing the United States and other areas served. – – COMMENT American Radiator has shown good results in the post-war period. Earnings have amounted to 1.78 a share or better in every year since 1947. In 1953, net amounted to 1.83 a share, a modest gain over 952. Operating income, however, showed a very significant improvement, ising to 37.2 million in 1953, compared with 30.2 million for the year )revious. -Current prospects are that income in 1954 will continue to be ex- ellent, based on the improving tendency shown by margins and the strength )f the residential construction market, which has been noticeably better chan economists had previously anticipated. New management is showing 5reater aggressiveness than the company's former adinjstration, indicating chat, in the future, American Radiator may be able to capitalize on its strong industry position to a greater extent than has been the case in the )ast. The company's finances are strong, with the 1953 report showing cash rPproximating total current liabilities and a current ratio of 3.9 to 1. rotal dividends of 1.25 a share are both liberal and well-protected. he combination of good construction prospects, more active management, trong financial condition and excellent earnings and dividends makes merican Radiator an interesting commitment for both income and capital in over m0l2.ths ahead. . 0 ; ; – -,r. Tabell is on vacation and the above analysis is from our Research )epartment. Mr. Tabell's technical analysis on this issue is as follows MERICAN RADIATOR BUY Stock appears to be building up a strong potential base pattern in he 12-17 area. While no immediate move is indicated, the eventual ob- ective is 27 followed by 40. There is some temporary supply in the 20-22 ange. There is support at 13-12. EDMUND W. TABELL

Walston &Co. MEMBERS NEW YORK STOCK ExCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,Id) OffiCES COAST TO COASi CONNECTE BY DIRECT PRIVATE WIRE sYSTeM TAB ELL'S MARKET LEnER March 26, 1954 BLAW-KNOX COMPANY STATISTICS BACKGROUND Current Market Current Dividend 18 1/2 1. 20 As a producer of thousands of different types of products for Current Yield 6 1/2 the major industries of the country and as an important sup- Capital Stock (shs.) 1,446,755 plier of equipment for atomic ' energy plant construction, Blaw- .Net Per .Share ,1953 –22. 8967— – ..- -Knox-appears -well-fortified to . Net Per Share 1952 meet any dip in military demand Operating a total of 10 plants, Sales 1953 120,067,563 6 in Pittsburgh area and the Sales 1952 99,941,469 rest in N.Y., Ohio and Minnesota, , , and with sales offices in all ma- Market Range (1953-54) – 15 3/8 jor cities, it is a virtual de- partment store for heavy industry. Plus 2 stk. diY. paid 1953 A broad range of fabricated prod- ucts and specialized equipment,as well as engineering and construction services, are supplied to such indus- tries as steel, automotive, chemical, food, paper, cement, metal, petroleum and gas, public utility, and road-building. COMMENT The company started 1954 with a 70 million order backlog. This is below the year-earlier figure but it should be noted that it does not include orders on hand from the Atomic Energy Commission as these are handled on a fee basis. Still to be completed is a 40 million AEC contract, awarded last year, to build the chemical processing plant at Hanford Atomic Works. Additiona1 multi-million dollar contracts have been received from the AEC for its Portsmouth plant and National Reactor Testing Station in Idaho-.It is-s,j,gnificantthata sizable-portronof the-order'backlog- represents contracts for the building and equipping of processing plants in the rapidly-expanding chemical and petrochemica1 industries. Also noteworthy is the fact that the recent acquisition of a road-building machinery company greatly extends the firm's participation in this field, so that it will be in an excellent position to benefit from the anticipated acceleration of public works activity. Sales reached an a11-time high of 120 million last year, and earnings amounted to 2.93 per share based upon the number of shares outstanding before issuance of additional stock for the 2 stock dividend paid in December. Based upon the number of shares presently outstanding, 1953 net was equal to 2.86 per share. While this year's results may be somewhat 10wer, the management looks for maintenance of sales on a high plateau and earnings wi11 be supported by elimination of excess profits taxes, which severely penalized profit in recent years. Considering that the company is a supplier to heavy industry, its earnings have been remarkably stable, having fluctuated between 2-3 during the past nine years. The record of dividend disbursements is good, only 4 years having been missed since incorporation in 1919, and the current rate of 301 quarterly appear iecure, based upon earntngs PfSpets and t company' s 'sfrong financial position. An all-common capitallzalon with no debt urther enhances the appeal of Blaw-Knox common as an lnteresting commit- ment for both income and capital gain. Mr. Tabell is on vacation and the above analysis is from our Research Department. Mr. Tabell's'technical analysis on this issue is as follows BLAW -KNOX (18) BUY Stock formed a very strong base pattern in the 11-20 range. The upside penetration indicates 28-33-followed by a long term 41-46. Buy on any price dips. An outstandingly attractive issue. There is support at 16-14. 1953 high was 23 EDMUND W. TABELL lOIATSTQN BG GO, t Walslo & Co or /lny D!IIllH 'h,,-eo bertThiS mllY mhlelmvoraannd,unmlerne1noItn toombee con\true or /111 a, an ofh. r sohcitatlon of offen to menhoned herein The b ule,un Ie ua I, tomplete 15 not buy or Stll any ,ecurill foregOing qUdr!lnteed muat erial ha, aCcur!lta e' or FrormreptlmTee,d t onb ' t ' ; 0111 cl ,ntendl!d mtoatt'o.reoli',enfo,rnmdeilDtoonndnonllytr,ouIt,tV1 \ Ina, an I b.,ed upon 1Ilformdilon believed rei'!Ib I! U no neel! rI ,

F;'i'– Walston &Co. MEMBERS NEW YORK STOCK EXCHJlNGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADElPHIA LOS ANGELES SAN FRANCISCO LUGANO ISw,twlood) OFFICES COAST TO COAST CONNECTEC BY OIREC1 PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER April 2, 1954 The Dow-Jones industrials reached new high territory during the week at 307.95. The advance has been rapid and some consolidation may be needed but the longer term trend still pOints toward higher levels. As I suggested at the beginning of the year, I believe the industrial average will reach at least 325 during 1954. However, the action of individual issues is much more important than that of the averages and I am reviewing below the technical patterns of some of the issues mentioned by me during the past six months or so. The balance will be reviewed next week. ABBOTT LABORATORIES still continues to hold in the 40-47 area. Appears to be building a base pattern and should be held and bought in the lower part of the trading area. \ ALLEGHENY LUDLUM STEEL was recommended at 28. Has recently held in the 28-33 range and appears to be under accumulation. A very interesting long term appreciation possibility. ALLIED STORES was suggested for purchase at 38. It has broken out on the upside of the long 36-40 trading area, in which it held for two years, to reach 44. There is some supply at 44-48 which may slow action, but the up- side objective is 55-65. There is support at 40. ALLIS CHALMERS was recommended in the 42-45 area and moved up to 52 and back to 47. Appears to be slowly building up an accumulation area and should be bought on weakness. ALPHA PORTLAND CEMENT appears to be in a slow uptrend with an eventual ob- jective of 60-75. Buy on minor price dips. The 46-43 area should furnish good support. ALUMINIUM,LTD. has rallied from a September low of 44 to 57. The long term objective is 60-65, but the pattern may broaden. Would hold and buy on minor weakness. AMERICAN NATURAL GAS has moved from 34 to 45. The upside objective was the 45-50 level so would be inclined to take profits on strength. AMERICAN RADIATOR has built up a very strong technical pattern. Has held in the broad 12-17 area. An upside penetration would indicate an ultimate objective of 27 or higher. There is temporary supply at 20-22. AMERICAN TEL & TEL has been my favorite investment income issue. A high of 165 was reached. The first objective was 165-167 followed by 171-179. There is support at 161-159. AMERICAN VISCOSE. This issue may require some further patience but it ap- pears to be building up a slow base pattern. Would buy in the 35-30 range. BABCOCK & WILCOX has moved up nicely from 36 to 51 but still indicates higher long term levels. Would continue to hold and buy on weakness. There is support at 47-45. BENDIX AVIATION has also shown Sizeable appreciation from 47 (after adjust- ing for stock dividend) to 70. The long term objective is 80-90, but some prior consolidation may be needed. There is support at 65-62. BLACK & DECKER was recently recommended at 39. It has broken out on the upside three-year 32-40 area to reach 43. The intermediate term objective is 45-51 followed by a long term 70-80. There is support at 40. An inte- resting technical pattern. BLAW KNOX has been very slow but has built up a very strong pattern with an upside indication of 28-33 followed by an even higher long term object- ive. Believe the present 19-20 area is a buying range. BUCYRUS ERIE seems to be in a slow uptrend to the 36-43 area. Action may be slow but the long term road building program favors this issue now selling at 24. There is nearby support. BURROUGHS has held in the 13-18 area since 1946. An upside penetration would indicate 35 over the long term. An interesting issue for patient holding. CERTAIN-TEED has rallied from 12 to 15 but is still in the confines of the broad 12-18 range. This appears to be an accumulation area with a sizable long term objective. Continue to hold and buy on weakness. CHAIN BELT. This issue, which has paid dividends since 1902, appears to be behind the market. It has a very constructive technical pattern and is suggested for income and long term patient holding. The long term object- ive is 65-80. Th, memorolndum IS not to be COluirued ,H 011'1 offer or soitCltatlon of oHers 10 buy or sell any ecuflttes From lime to lime Waldon & Co, or ilny p,utner thereof mal hay! an orileresi in some or al! of the securtiles mentioned herein The foregOing mlltenal hil5 been prepared by us as a rnltier of Inlormahon only It IS b.lled upon tnformatlon believed reliable but 1'101 necessarIly complete, 15 not garlfIleed as accr … te or final, and I not Intended to fQrecloe Independent ,nq – r. Walston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEAOING 'STOCK AND COMMODITY EXCHANGES NEW YORK PHILADElPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,',,d) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER -2- COMBUSTION ENGINEERING hs a very similar pattern to Babcock & Wilcox.From flga6regcolmmended level of 45, it has moved to 56. The pattern still indicates levels and would hold and buy on minor weakness. 'C' IThliR CORP. has rallied from 36 to 51. The upside objective was 50 so would be inclined to switch into other recommended issues. CORNELL DUBILIER has rallied very sharply from 22 to 32. Most likely needs some consolidation but would buy on declines to;the 28-26 area as the long term objective indicates above 40. CRANE CO. has advanced from 28 to 34 but still has a strong potential pattern. Ability to reach 35 would, from a technical viewpoint, indicate 4045 followed by an even higher objective for the long term. DEERE & CO. seems to be building a new accumulation pattern in the 23-29 area but there is upside resistance that may slow action. Would await correction to the 25 level before purchase. EAGLE PICHER has done little marketwise, but at present level of 20 it is near the low of 18. Seems like an interesting issue for good yield and patient holding. , ELLIOTT CO. still appears to be in a slow uptrend channel with support close to the market. The long term objective is impressive but near term action may be slow. EL PASO NATURAL GAS has moved up from 30 to 37 but is still holding in the three-year 30-38 trading range. An upside penetration would indicate 45-50. Buy on minor weakness. FLINTKOTE has done little marketwise but appears ,to be building a very strong technical pattern. Now selling at 30, the ability to reach 34 would be very constructive and indicate the probability of much higher levels. FLORIDA POWER & LIGHT was suggested at 33 and has now moved to 43. Seems high enough for the time being and would switch to other recommended issues. FOOD MACHINERY has moved from 34 to 41 and back to 39. Appears to be slowly building a base pattern and should be bought on weakness. There is support at 38-36. GENERAL RAILWAY SIGNA!, has done little marketwise and is selling neap its low. It is in a strong support area however, and appears to'be building a base in the 25-31 range. Buy for long term appreciation and income. GLIDDEN COMPANY has an irregular pattern but appears to be a purchase in the 33-30 area. HEWITT ROBINS is a recent recommendation. Ability to reach 30 1s very constructive. The technical indication is an intermediate term 37-43 and a longer term objective above 50. An interesting purchase. INDUSTRIAL RAYON has one of the stronger patternsin the textile group. It has held in the 39-45 area Since early 1953. The upside potential is 55-57. An interesting purchase at 43. INLAND STEEL has one of the stronger steel patterns. Has reversed its down- trend and appears tO,be slowly building a base. Now at 46, it should be purchased on minor weakness. INTERNATIONAL HARVESTER has rallied from 25 to the 31 resistance level. Other issues appear to have better appreciation prospects. INTERNATIONAL PAPER has moved from 45 (after adjuting for 10 stock dividend) to 63. The objective is 70-75. JOHNS MANVILLE was originally recommended at around present levels of 63. It rallied to 71 and formed a top with a downside indication of 64-61. Stock should be bought. JOY MFG. I believe this issue, at around 33, is undervalued. It has a strong technical pattern with an intermediate term objective of 45-49.1 suggest its purchase. KENNECOTT was suggested at 63. It has reached its first objective at 75 and would await a decline before purchase. There is support at 70-68. MARTIN, GLENN L. advanced from 13 to over 25. The upside objective mentioned in our February 12th letter was 25-30 so the stock has reached the lower part of its price range objective. MEAD CORP. The upside penetration of the 23-28 range indicated 32 follow- ed by 41-43. Has reached 33. May need a little consolidation but hold for higher levels. EDMUND W. TABELL WALSTON & CO. Th, m('mQf,lndum I not to be construed .H .!Hl offer or soilc,tailon of offers 10 buy or seU any seeu,,es From lime to time Wallton & Co, or o'Iny partner the'eo! m.1V hilc HI Intercs' ,n lome or all of the securities mentioned herein The foregoll'!g material !'las been prepared b'r' us a il mailer 01 Inlormahon only It 1 b,lleo upo') Info,mahon bet,,ed relIable but not neceHarlly complete, II not qua'dnleed al acc\Hatc or fll1i1I, and I no! Intended 10 foreclOI(l Independent InQV

Walston &Co. MEMBERS NEW YORK STOCK eXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,Id) OffICES COAST TO COAST CONNECTEr, BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER I! , The market continues its advance and the Dow-Jones industrials have reached a new high at 310.32. My 1954 forecast that the average would reach 325 by the end of the year may be a bit btLd actual time schedule. However, despite the sharpness of the; advance, the market has built up very few vulnerable situations and seems subject only to the normal technical corrections. A large number of individual issues still appear to indicate higher levels. . ,….. . . -…. Below is a continuation of the technical comment of recommended issues that was started last week. MOTOROLA has rallied from 30 to 37 3/4. There is overhead resi8tance at 40. Would sellon strength and await a broadening of the pattern. NATIONAL DISTILLERS has shown below average action and some further time may be needed to broaden the potential base. Other situations appear to have more attraction. NATIONAL GYPSUM has a very strong technical pattern. At the recent high of 25 5/8, the stock had reached a new peak since the 1946 high of 33. The upside penetration of the 18-23 range indicates an initial 28-31. The long term objective is much higher. The stock should be bought. NATIONAL LEAD has advanced sharply from its recommended level of 31 to a high of 46. However, the long term indication remains 50-55 .. Would continue to hold and buy on moderate declines,. NEW YORK AIR BRAKE has done little marketwise during the' past six months. However, it appears to be building a strong long term pattern. Ability to break out of the long 18-23 area would be very encouraging and would indicate much higher levels. Patience may be required . . PANHANDLE EbSTERN hasmoved from a recommended level ef 66 ,to 80. ' -, As the upside objective onomy technical work is 80-84 and there is con- siderable supply at the 80-85 level, would be inclined to take profits in this issue. ' PARKE, DAVIS. The stock has moved moderately higher from 31 to 37. Would be inclined to take profits in the 39-41 area. PENN DIXIE CEMENT has shown the best action of amy issue in the cement group. Despite its sharp adyance to 43, the,stock-continues to indi- cate higher levels. The long term objective is 5-60. ' PENNSYLVANIA SALT. Believe this issue is an interesting long term growth investment. The 1951 high was 71. Has held in the 41-47 area for over six months. An upside penetration would indicate a potential 55-60. PFIZER CORP. moved up sharpry from a recommended level of 30 to 38 and has declined back to the 34-33 support zone. Would buy for longer term holding. PHILLIPS PETROLEUM has advanced from 50 to 63. Would continue to hold. The next objective is 69 which was the 1953 high. PITTSBURGH COKE decined from a 1951 high of 39 to 19. Has held in the 19-22 area and may be building up a potential base. An interesting long term speculation. aPUBLIC SERVICE OF' COLORADO continlles itsfavor,ab,te.cbnical action, ., Has reached high of 35. There is support-at 3332-Would'add tohold ings on all minor declines. Long term objective is above 40. A good ,in- vestment growth holding. , PURE OIL has advanced from a recommended level of'4 to 58. May be high enough for the moment. Has reached upside objective and is near over- head supply at 59-62. Would await correction,before adding,to holdings. RADIO CORP. is in a supply zone at 28-29 and action may be'sow for a while but intermediate term indication is 34-38. Would contlnue to hold and buy on dips to 26-25 support level. REPUBLIC NATTRAL GAS has moved from a recommended level of 40 to 58. Will be ex-dividend a 100 stock distribution on Monday. Appears high enough for time being. I ThiS mill mh.elmCorailnndIunmtereISstnol1 Ib be some construed or all 01 f ff as an offer or solotl1abon 0 0 en to the securdles mentioned here If'! The b uy Of se foregOIf'!gd II dn / ma sec I eroa urd,es From t,me hdS ate obreefmn alprcapndrecIi to ti b\ not me us iWH alst mtended on & Co, or mtoattfeorrc0c1lo'en any parlner thc'eol lormatlon only It IS Independent ,nOUlrV b,leo upon ,nformatlon believed rel,able but not nec.cssdflly complete, IS not guarantee as attUf . 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 10 COAST CONNECTfC BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER -2- SHAMROCK OIL has been one of the better acting natural gas and oil issues. It has advanced from a recommended level of 36 to a high of 51. The upside objective is the 55-65 level. SOUTHERN NATURAL GAS has moved from 24 to 31. Appears high enough and wou-ld await correction before buying.- — SYLVANIA ELECTRIC appears to be building up an accumulation area in the broad 30-36 area. Hold and buy on minor declines. TEXAS UTILITIES has moved from the recommended level of 41 to 51. May be enough for the time being. Would switch to Idaho Power. UNION CARBIDE. Despite the fact that the stock has moved from a recommended level of 63 to 78, still consider it the outstanding long term growth stock. May hold in the 82-73 range for a while. UNITED FRUIT should be an interesting long term holding for appreciation and income. Has held in the 50-44 range. Would continue to hold and buy on minor declines. WESTERN AUTO SUPPLY appears to be building up a very strong long term pattern. Despite its recent slow performance the long term possibilities are good. An interesting issue for income and eventual appreciation. YALE & TOWNE has broken out on the upside of the reeent trading range to reach 42. There is temporary supply at 44-48 but the long term pattern suggests considerably higher levels. J To summarize both the above and last week's comments, the following issues appear either high enoughforthe moment or have shown relat-ively unfavoraole -action — -Theyshouid b-e -sold, – preferably on strength, and are being dropped from my recommended list for the time being American Natural Gas Container Corp. Deere & Co. Florida Power & Light Internat'l Harvester Martin, Glenn L. Motorola National Distillers Panhandle Eastern Pipeline Pure Oil Republic Natural Gas Southern Natural Gas The following issues appear to be interesting replacements for the above Allied Stores Black- & Decker Blaw-Knox Crane Co. Hewitt-Robins National Gypsum Public Service of Colo. Western Auto Supply Yale & Towne — — EDMUND W. TABELL WALSTON & CO. — f ff t b r ell an ecurltlu From me to time Walston & Co. or any partner thereof nttTh,s memorandum IS not to be construed al an offer or soilcltahon 0 0 ers may have an H'!teres! in some or all of Ihe securdlu mentioned h, ereln 0 fOuryeg0'nqd r; ,VauIrahlaes been prepared or f,nal arid IS by not us as a matler 01 Information only It IS intended 10 It'eCI;lse 'ndependent Inquiry b,ued IJpon ,nformation believed tollable but not necessarily comp ete, IS no qIJaran ee , /

( Walston &- Co. 11 MEtJBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND CQMtvlODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN fRANCISCO LUGANO (Swd,ld) OFFICES COAST TO eOAS; CONNECTEr. BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER April 15, 1954 The market continued its advance during the past week with the Dow- Jones industrials reaching new high territory at 314.41. The rails also showed improved action and, at the week's high of 103.91, the rail average was quite close to the February high of 104.50. There is considerable over- head supply in this section of the list, however, with rsistance in the 107-109 zone and again at the early 1953 top area of 110-113. The almost sixty-point advance of the industrial average from the September low of 254.36 has been quite steady and has had only minor interruptions or corrections. At no stage has the average had the noal minimum one-third retracement of the advance. In fact, Since September, the indus.tr.ialayerag,–,hasshown no decline of even ten points .Thefourqeclines since September were as follows From To – November 280.33 273.01 7.32 December 285.20 275.91 9.29 February 295.43 287.37 8.06 March 302.17 294.76 – 7.41 Rather than being concerned at the steepness of the advance, I am pressed by the great show of latent buying power.Of course,the market will always be subject to the type of.declines tabulated above,but my technical work shows no evidence of any Sizeable intermediate decline at this stage of the market pattern. ThiS, of course, does not mean that every issue will advance. ThA market will continue to be selective and some individual issues will continue to show below average action. I continue to advise concentra- ting on the action and outlook for individual issues. There are many that indicate substantially higher levels. The utilities still continue their slow advance. This group has been in an uptrend channel Since the 1949 level of 32. The average is now around 56 and the present outer limits of the channel are 51 and 60. The average individual issue continues to indicate moderately higher levels. The leaders of the group have been the utility companies in the rapidly- growing .South and Southwest terri tory. For examp le, Flopi-da Power -& -Light- has advanced from 18 to 44, Texas Utilities has advanced from 20 to 50 and Houston Lighting has advanced from 15 to 35. Over the longer term these issues will undoubtedly move higher but, from a technical point of view, they may require some consolidation at around present levels. West and Northwest utility companies also have a great growth poten- tial and a number of issues in thctt territory have very attractive technical patterns. The following four issues are of interest Price, 1953 Earnings Dividend Yield Idaho Power Minnesota PI' & Lt Montana Power Public Ser.of Colorado 49 23 34 34 3.35 2.04 2.62 2.34 2.20 1.20 1.60 1.60 4.6 5.2 4.7 4.7 IDAHO POWER is a hydroelectric company and prospects favor a continued growth in earnings and further dividend rises. The area served is primarily agricultural but mining, chemical, fertilizer and other industries are grow- ing. The proposed Snake River power project is pending before the F.P.C. The technical pattern indicates a long term level above 60. MINNESOTA POWER & LIGHT was split two-for-one late in 1953 and the dividend increased from the equivalent of 271 to 301 quarterly. The de- velopment oftacoQite ores and the trend of.diersification.of.industry lends long term appeal to this issue. MONTANA POltlER CO. has been helped by development of oil and gas acti- vities in thp Williston basin. Also increasing industrial activities lessen its dependence on the copper industry. The company is also developing its own source of natural gas mainly from Canada. The technical pattern is fa- vorable with a first objective of 40. PUBLIC SERVICE OF COLORADO provides electricity and natural gas in a territory that has excellent growth potentials. With earnings nd dividend prospects enhanced by recent rate increases, the stock has attraction for longer range capital appreciation. The technical pattern indicates an eventual objective of 40-45. EDMUND W. TABELL WALSTON & CO. ThiS m,) mh,c,mcofdannd'unml'leS1noItn 10 be some conslrued or ali o' f ff t as an offer o' soliCitatIon 0 0 Cf\ 0 Inc sccunhcl mel'll,oned hereIn The bI ur or toreqot,n ge II an I m(l Yrsle.IcJuh!n,lSl,Ubee1nFnr(lolpmre(lplnuddnrcc,d\ 1onboltimu,nseteCWnISdaedhdlemntolt&'!orrCecoolO,f HOInlrfo,arnnmdeaptpIeaonrndinreonrnlyt,hneq'uIcIloryrIS b,,d upon ,nfor'l1(lt,,,n beheyed rcl,ble but not necess(lrily complete, ,\ not gU(lr(ln cc d (I dc.cura C or' ,

Walston &Co. MEtJBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Switzerland J OffiCES COAST TO COAST CONNECTEr. BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER April 23, 1954 Strength in the aircrafts and steels held the industrial average in a trading area around the year's top level despite irregularity in other sections of the list. At the week's high of 314.38, the average was just a shade below the previous week's high of 314.44. The low of the week was 309.05. The technical pattern does not appear at all vulnerable despite the sharp rise from the September low of 255. Of course, the market is always subject to the type of technical correction we have witnessed four or five times since the advance started. At the present moment, a decline would meet strong support in the 304-300 level. This type of correction can be ignored -by -the'-long -term -and-intermediate term-trader- I–do -not-expec t-a decline of inermediate term proportions until the industrial averages reach the 325-330 area. The steel stocks showed very impressive technical action during the past week. Until recently, this group has shown below average action. The great majority of the issues in the group reached their highs in 1951 and their lows in 1953 1951 High 1953 -Low- Friday's Close Allegheny Ludlum Armco Steel Bethlehem Steel Inland Steel Jones & Laughlin National Steel Republic Steel U. S. Steel Youngstown S & T 52 1/8 51 3/8 60 62 1/2 31 5/8 56 49 1/2 47 3/4 59 1/4 25 1/8 30 5/8 44 3/8 35 7/8 19 40 1/8 35 3/8 33 1/2 34 33 7/8 42 62 1/4 51 3/8 23 51 51 7/8 45 7/8 42 5/8 Low was reached in late 1951 As can be seen from above, the action of this group has been extremely 'irregular. Most all issues reached their highs-in-Fetiruary, 1951-when tlie Dow-Jones industrial average was at 264. The average is now close to 314 but only two issues, Bethlehem Steel and Republic Steel, are above their 1951 highs. Because of this hitherto unfavorable pattern, I have not recommended many steel issues over the past two years. I suggested Inland Steel in September as a quality issue in the group and have mentioned Allegheny Ludlum mainly because of its .long term future in titanium. However, the recent action of this group suggests that they be added to holdings. My suggestion would be the three largest companies, Bethlehem, Republic and U. S. Ste.el. Bethlehem Steel Republic Steel u. S. Steel , Price 1953 Earn. 1953 Div. 62 1/4 13.30 4.00 51 7/8 925 4.50 45 7/8 7.56 3.00 indicated rate. Yield 6.1 8.6 6.5 It will be noted that, based on 1953 earnings, the dividend payout was small on all three issues. Of course, earnings are expected to be somewhat lower in 1954. The only company to report so far has been Republic Steel – which showed -earningsof 1.79 -for the first' quarter of 1954 as compare-d with 2.24 for the same period of last year. This is a drop of 20. Even if this pattern continues for the balance of the year, present dividends would be covered at least twice by two of the above companies. U. S. Steel will announce first quarter earnings on Tuesday, April 27th, and Bethlehem Steel on Thursday, April 29th. From a technical point of view, all three issues have been showing increasing relative strength. Bethlehem Steel and Republic have already broken out of trading ranges and U. S. Steel is close to doing so. In all three oases, downside support is not too far away from present levels. All three issues appear to be attractive purchases for long term appreciation. EDMUND W. TABELL WALSTON & CO. ih,s memorandum IS n().\ \0 be COI\\!rl,Led a\ an offer or solici.tation of offers to u oormse 11mtn!asel'uhnats'eSbeenFropmretpiamreed10blomues IWloSalIlso tomno!o&iluCo01. omroannty\\1phaorntnoenr'he11eolIS mOlt h.svc dn .nter('s/ In some or dli 01 11',(, securities menltoned herein The ,Of g t gd Cufdte or f,ndl dnd IS no! Intended to lorect;)se Independent ,nqulfY bdsed upon ,nlorlT'dllo,, believed rehable but not necessaflly complete, IS not guaran ee as ac , I

,- – 1…——— Walston &- Co. MMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,'wlaodl OFFICES COAST TO COAST CONNECTEC. BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER Aprli 30, 1954 The stock market action of the past week again illustrates the point that, since 1949, the buying and selling of the professional long term in- vestor has been a much more important price movement factor than the trading of the short term speculator. It has been the reason why the market fails to move as a unit and why, despite the sharp advance in some issues since Sep- tember, the general market is not vulnerable except for possibly the usual technical corrections that are always to be expected. The selectivity and discrimination has been based on the reasoned findings of the analyst rather than on the unreasoned hopes and fears of the short term trader. Purchases and sales have been based on the long term outlook rather than what the marketmay-donext-weekorcnext-month.o – —.-.—- Take the example of two rail stocks, Southern Railway and Pennsylvania. If you had bought Pennsylvania at the 1949 low you would have paid about 15. It is now selling at about 16. If you had bought Southern Railway at the same time you would have paid 13 (after adjusting for the 2 for 1 split in 1953). It is now selling at 50. Does this mean that Southern Railway is too high and Pennsylvania is very cheap Let us examine a few earnings fi- gures for the two railroads. If you purchased both stocks at today's appro- ximate prices of 50 and 16 you would be buying the following for each 100 invested in each issue PER 100 INVESTED SOUTHERN PENNSYLVANIA Earnings 1949-1953 Dividends 1949-1953 Re-Invested 1949-1953 1953 Earnings 1953 Dividend 76.44 21.00 55.44 23.26 5.00 71.90 32.81 39.09 16.86 9.00 GROWTH Average 1949-1953 earnings vs. 1937-1941 325 -I– average earnings — –.. ..,.– —- – – o ! . .– – – —— Except for the fact that Pennsylvania has paid a bit more in dividends, both issues are selling on-a relatively equal value basis despite the fact that Southern is at a five-year high and Pennsylvania near a five-year low. When the growth factor and a possible dividend rise are taken into consider- ation, Southern seems the more attractive. This is borne out by the techni- cal patterns of both issues. But, you may say, the market is very high. Westinghotlse Electric as an example, has advanced sharply and has reached a newall-time high. Let us take Westinghouse in 1945 when it was selling at an average price of about 33 and compare it with Westinghouse today at 72. Again this is based on 100 invested in each issue PER 100 INVESTED Book Value Fiveyear earnings Five-ear dividends Five-year re-investment Present Earnings Present Dividend 1945 76.95 26.70 15.75 10.95 6.10 3.00 TODAY 59.90 32.34 13.16 19.18 7.70 E 2.80 E Dece-m- b-er 31, 1.9-5-3- bal-an-ce- -shee-t. E — -E-s t- im a- ted-…….. — f o r 1954. With a possible dividend increase in the offing, Westinghouse is not overvalued compared with 1945, despite the fact that it has reached a new high. From a technical viewpoint, it has reached its upside objective and may be high enough for the moment. It is possibly in need of a consolidating movement for quite a period of time. However, it is not vulnerable and shoulc move higher after a new pattern has been formed. I believe the advance will continue to be selective. The leaders will continue, for a while, to be the growth issues and investment issues that are bought by institutional investors and larger individual accounts. Before the speculative cyclical issues join in the advance, a speculative public following must be built up. This usually happens at a later stage of the advance. EDMUND vi. TAJ;3ELL HArSTON & CO Tht m… mor1odum IS not to be construed as an offer or sollcltallon of offers to buy or sell any securities From t,me to me Walston & Co, or any pHlner Ihtcof md hd'l.' .1n Interest In some or all 01 the secuntles menltoned nCHCln The foregOing malerlal has been prepared by us as a mailer of In/ormation only It 1\ b.led IIPon ,n/ormat,on belIeved relIable but not neeard'f complete, IS not o;Iuaranleed as aurale or fInal, olnd IS not Intended 10 foreclose Independent l'IqUlrl – ,,-

Walston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,Id) OfFICES COAST 10 COAi CONNECTFC. BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lETTER i May 7, 1954 1 Both averages reached new high territory during the week despite the fact that in each day from 16 to 40 individual issues also dipped into new low territory and advances and declines for the week were about even. There is nothing in the technical pattern to suggest a change in this selective action. A great many issues indicate higher levelS. Others appear high enough and in need of a consolidation. Still others show no indication of animmediatmove inei ther direction. There are very few. that appear-tobe vulnerable to more than the usual technical corrections. Two weeks ago I reviewed the technical pattern of the steel group and mentioned its improving action. I suggested, in addition to Inland Steel that had been advised for purchase in the 36-40 area last year, that three other steels be added to my recommended list. They were Bethlehem Steel (621/4); Republic Steel (51 7/8) and United States Steel (45 7/8). In the table below are soe earnings and financial comparisons on these four issues. In order to make them comparable, they are stated either in percentages or in the amount of book value, etc. available if 100 of each issue were purchased at approximate present levels of 65 for Bethlehem Steel, 55 for Inland Steel and 46 for U. S. Steel. The majority of calculations are based on the December 31, 1953 reports. PER 100 INVESTED Bethlehem Book Value Working Capital Five-Year Earnings Five-Year Dividends Five-Year Re-Investment 1953 Earnings — 19'53cDlv1dend – – , – — 151.90 64.37 83.71 28.49 I 5522 20.48 ) 6.l6—r New Plant & Equip.19461953 121.10 EARNINGS TREND Inland 92.13 35.66 57.26 33.86 23.40 12.47 '-0.30- 76.56 Republic U.S.Steel 140.11 165.76 59.48 78.84 28.89 66.96 35.06 31.89 43.78 35.07 – 16.74 16.36 7 )6' ,- . – 0.51 126.70 – 174.90 1st Quarter 1954 vs. 1st quarter, 1953 TECHNICAL INDICATION Upside Potential Possible Advance Downside Support Potential Decline 89 75-85 30 58-56 14 131 65-70 27 50-47 14 78 72-78 41 48-44 20 89 60-65 41 43-40 13 Inland Steel is the quality issue in the group. It has a record of earnings and dividends that is less cyclical than the average steel company. It should be held for yield and moderate appreciation over the longer term. Bethlehem Steel also has appeal. It would appear thatfue indicated dividend rate has been increased to 5 annually to yield 7.9. Republic Steel is perhaps the most volatile of the group, but it has a very interesting upside potential. Perhaps U. S. Steel has the most interesting 'technical pattern. The huge post-war expansion program noted above has been financed from- internally generated funds.- This has resulted in a decline in working capitl and has held down earnings because of special reserves. This should result eventually in increased earning power, however. Dividends have been conservative. Most of the issues in our recommended list have Shown good action. Yale & Towne has reached new high territory at 46 5/8 and has broken out of its long trading range. Babcock & Wilcox has reacted from the recent all-time high of 52 to the 48-47 area. I believe it is in a buying range. EDMUND 1tl. TABELL WALSTON & CO. Th.s mllV mernorclndum .s not to bc have In ''''eres' In some construed or III of .,H an one, o sohcllaloon of oers to the securities ml'r',oned herein The lbouryeqOorrgellrnaan,V'suerIc'ullItaretShoHbr e enFropmreptiamreeD final dnd IS 10bvlomuse aWs'll'Istomlla not ,ntended to U&t,Coof o,rfoa.nmyat,D,d)rntnoernIlkyeealIS loreclsc Independent Inquory bscd upon ,nforl1dt''ln believed reliable but not l1eceH,Hlly complete, IS nol qu,Hdn el! d as

'Valston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AtW COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (S.,,,.,I,,d I OFFICES COAST 10 COAST CONNECTFj BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lETTER May 14, 1954 When a stock or a group of stocks is in a prolonged downtrend, it is difficult, and sometimes quite dangerous, to try to catch the bottom of the downswing. It is usually wiser to wait until there are definite signs of a reversal. The textile group is a case in point. The American Investors Ser- vice index of eleven textile stocks has dropped from a 1951 high of 45 to a 1953 low of 22 and currently is at 24. There are, from a technical viewpoint no definite indications that the downtrend has been reversed, However, tech- nical action has improved considerably during the past week and the group should be watched closely. Sales and earnings are continuing to show unfa- vorable comparisons with those of the first six months of 1953,but there is a good prospect for improvement in the later part of 1954. – The- tl'iT'ee 'stocks -listedbelow-areamong-the betfer–graaet-extHe -. issues. At recent lows; they appear to have quite adequately discounted the current unfavorable picture in the cyclical textile industry. Moderate amounts of these issues might be added to portfolios during periods of mar- ket irregularity, but I would avoid the more speculative members of the textile group Amer. Viscose Industrial Rayon Lowenstein & Sons Current Market . Current Dividend 36 2.00 43 3.00-A 33 2.20 Current Yield 5.5 7.0 6.6 Long Term Debt Preferred Stock Common Stock (shs.) None 20,645,000 4,095,918 None None 1,845,860 None 6,194,800 1,302,689 Net Per Share,1953 Net Per Share,1952 Sales, 1953 Sales, 1952 2.74 4.88 228,200,000 235,200,000 4.68 4.83 70,300,000 67,930,000 5.30 5.16 180,450,000 173,050,000 Market Range 1951-54 78 – 30 5/8 68 1/2 – 38 3/8 39 – 24 1/2 Per 100 Invested Five -year -Earnings ()8–80 Five-year Dividends 31.05 Five-year Re-investment 37.75 Book Value 141.39 Working Capital 44.01 Plant Expansion 1946-54 114.80 '60715–'—7–4' – .– 32.13 28.02 29.40 44.01 87.06 145.98 44.39 88.35 38.64 58.59 A – Also 5 stock. AMERICAN VISCOSE is the largest rayon producer and the second largest producer of cellophane. Chemstrand Corp.,jointly owned with Monsanto Chemical, has a nylon plant at Pensacola which started production in 1953. Another plant in Decatur, Alabama, has started production of Acrilan, an acrylic fiber. The Ketchikan Pulp Co.,jointly owned with Puget Sound Pulp & Timber Co., completed a plant in Alaska just this month. New Plant and equipment since 1946 are equal to more per share than the present selling price of the stock. The long term growth possibilities are excellent. Earnings for the first three months of 1954 were only 341 per share, but strong cash position indicates a maintenance of the 2 dividend. From a technical viewpoint,the pattern is not complete and considerable work is needed in the 40-30 range. Buy during periods of market irregularity. INDUSTRIAL RAYON is the third largest producer of viscose rayon filament yarns .-Two-thirds of its capacity isin-tire-yarns,demand for whichhas held up very well and accounts for its above average earnings performance. The stock has held in the 39-45 area for over a year and may be building a base. From a technical viewpoint, an upside penetration of this area would indi- cate 55-60. LOWENSTEIN (M) & SONS,INC. manufacture and merchandise low-priced and massproduced cotton and synthetic fabrics. Sales have increased each year for the last ten years. Dividend payouts have been conservative and working capital has increased materially. Technical action has been good. The stock has held in the 25-35 area for over three years. Ability to reach 36 would indicate an intermediate term 50-60 followed by eventually higher levels. EDMUND W. TABELL WALSTON & CO. fTh,s memorandum is not to be corulrued as n oHer or SOllCllatlon of oHen to buy or sell any 5ecurlh5 From time to lIme Walstorl & Co f or, any Cldner , thertol may have dn ,nle,es' ,n some or III of based upon ,nlOMallon belIeved rehable the but sneoclurniteIceesno'l!'l1rtelny'locnOe'dTlphleelree,inI The not. gfUodrreagnO'eIen,gt,m,..lHl,e'claculrahloen been prepdred or fmal, and bv not IH Int ,n end a ed mtoolthfo.rrecl0;'1,nl erma Ion on Independ …nl y ,s InquIry