Walston &- Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Swiherland! OFFICES COAS) TO COAST CONNECHJ BY DIRECT PRlVATE WIRE SYSTEM TAB ELL'S MARKET LETTER May 21, 1954 I wrote an article for the January 7th issue of The Commercial and Financial Chronicle entitled 1954-The Beginning of a New Bull Market. At that time, the Dow-Jones Industrial Average was around 280 and I offered the opinion that the Average would reach a minimum of 325 by the end of 1954. It appears that my timing was a bit conservative. It is now only the middle of May and the Industrial Average has already reached a high of 327.43. The index has advanced 72 pOints from the September low of 255. This amounts to a rise of over 25 in eight months. Has the risebeen too rapid and is the market vulnerable I do not believe so. Of course, the market is not going to continue to advance without interruption. At some stage, we will witness a reaction of more than minor importance. However, at the moment, the market appears to be subject to no more than the normal technical correction similiar totht lict has occured several times since the advance started in September. There are now support levels at 315-310 in the industrials and 105-104 in the rails. It is possible that both averages will advance somewhat further before such a technical correction occurs. Of course, a discussion of the averages is more or less of only academic interest. This has been true since 1951. One could have fore- casted the moves of the averages with 100 accuracy and still have fared very badly if the wrong stocks were selected. I have just made a rapid survey of more than a hundred representative listed issues — all starting with A. Over half of them are below their 1946 highs despite the fct the Industrial Average is now selling over 100 points above the 1946 high of 213. ThiS, so far, has been a much more selective and intelligent stock market than any we have ever witnessed. It has been dominated mainly by the professional buying and selling of institutional accounts. In addition, the short-term trader of the '20s and '30s is gradually being replaced by a younger generation of investors who buy their stocks outright and are more interested in income and growth than in short-termurn9ver. As a resun; the -market has not be-en- subjectto'i;he Wild, -'speculative excesses of the past. This does not imply that speculation and risk taking are dead. There is a definite need in our economic pattern for the risk taker rather than the gambler. There is plenty of speculation in present markets but it is being conducted, in the main, on a much more intelligent basis by those who make studied appraisals of the gain potentials as compared with the risks involved. To return to the technical market pattern, while many issues have reached their upside objectives, there are others that still indicate higher levels. ThUS, it appears that the market will continue not to move as a unit. Many of the blue chip growth issues appear to be at or near objectives. The action of National Lead over the past five years may be used as an example. This excellent growth issue advanced from a low of 9 (after adjusting for stock splits) in 1949 to a high cf 33 in late 1951. This was approximately its upside objective. It had amply discounted its increased earnings and diVidends and was in need of rest and consolidation. It held in a trading area between 26 and 33 until '1953 when it again resumed its advance. Its upside objective is now approximately 52. The recent high was 48. After seme possihle furthRr rise, the stock may Le in need of a consolidating perlcd in some yet undetermined price range for some undetermined time period before the advance is again resumed. While this is going on, other 'issues of good but somewhat lower quality may con- tinue to advance in order to narrow the Wide price discrepancy between the blue chips and the light blue chips. During this period, I still see no indication of an important move in the majority of lower priced speculative issues. There will be exceptions, of course. In terms of the averages, I envisage a consolidation period in a range of roughly 335 high and 300 low for the balance of 1954 followed by higher prices in 1955. However, there will be many issues that will show above average action during this resting period. I hope, in my technical interpretations over the coming weekS, to draw them to your attention. EDMUND W. TABELL l-IALSTON & CO. ThIS rnemorilrldum .s no! la be (on'rlJed as an offer or sot,cllatlon 01 offers fo buy or sell any sccu.ill()S Flom time tOb tIme Wahlon Co i 0', any i'Hlne, lhefloS ma have an mlcres' In some or … 11 of bsed IIpon 1'110rmolhon b()lleved relIable the bul S!leocturnitcIeteslSmaerlnivtlonocmdplehlce,em's The not foregOIng guaranteed molSateariaulrahtaes been prepared or IlnCil, and IS If not us as /I mdo In'-ended to H 0 In foredole o.rnmdeapcIonneon 1'1 r I qUI l'

Walston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY eXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO lUGANO (Swih,dd) OffiCES COASl TO COAST CONNECTEC. BY DIRECT PRIVATE WIRE SYSTEM TAELL'S MARKET LETTER May 28, 1954 It has become increasingly evident over the past week that the character of the market is slowly changing. The advance has broadened out and the blue chip investment issues are being replaced as market leaders, by issues of good but slightly lower investment quality. This, of course, was to be expected. The higher-grade investment issues have been in the foreground of the eight-month rise from the September lows. They have ad- vanced, in some cases, as much as 50 to 75 as witness General Electric from 69 to 124, Minneapolis Honeywell from 56 to 92, and Westinghouse from 40 to 73. These advances compare with a 28.rise in the Dow-Jones Industrial Average. Many of the higher-grade' issues-have reacned their immediate upside objectives and, from a technical point of view, are in need of a period of rest or consolidation. While this is taking place, the leadership of the market may be taken over by some of the light blue chip issues that still offer good value and relatively high yields. J'. few of these issues have already scored good advances since the first of the year but issues lik Bullard, that rallied from 26 to 49, Cornell Dubilier from 22 to 32, Cutler Hammer from 39 to 58, Illinois Central from 66 to 98, National Gypsum from 21 to 30, North American AViation from 20 to 34 and Sperry Corp. from 44 to 63 have been in the minority. Most of the secondary issues have not kept pace with the high-grade investment favorites of the institutional investor. However, there are still a large number of secondary issues that still indicate the possibility of higher levels over the intermediate term. Some of these issues have already had a fair advance but still indicate, from a technical viewpoint, a further. rise. Others are still holding in, or have just emerged from long trading areas, and have less downside risk in the event of a normal technical correction. I am listing a few issues below together with their intermediate term upside objectives and near-term downside support levels. They are of varying investment quality but all q,PRar tQ. b .inafE-vorablefundamentaLposition. , .- -. STOCK Allegheny Ludlum …………. . Allied Stores ………. American Potash B.. '.' …….. . Babcock & Wilcox …………. . Blaw-Knox …….. Celotex ………………. Flintkote ………………. Fruehauf Trailer …………. . Gulf Mobile & Ohio ……….. Hewitt Robins …………… Industrial Rayon ………. Lehman Corp ………' ……. Lowenstein M.) ………… Missouri Kansas & Texas Pfd .. Pennsylvania Salt ………… Pullman ……….. Robertshaw-Fulton ……….. Sto Joseph Lead ………….. . Simmons Company ………….. . Union Bag & Paper ……….. Union Oil ……………. United Fruit …………….. . U.S. Steel ………………. . Victor Chemical ………….. PRICE 33 44 44 52 20 20 31 25 30 30 45 39 35 65 47 51 21 39 35 53 49 46 49 33 UPSIDE POTENTIAL 40-44 55-60 55-60 60-65 26-28 30-32 40-45 34-36 40-45 37-38 58-61 46-48 45-50 85-90 57-64 65-70 28-35 48-50 47-52 65-70 60-65 57 -60 60-65 – 39-43 DOVINSIDE SUPPORT .. 30 40-39 40-39 48-47 19-18 18 29-28 24 28-27 28 42-41 36 32 62-60 45 48 20-19 37-36 34-33 50-48 46-45 44-43 44 30 Very few of these stocks are in the Averages so it would be possible for issues of this type to score worthwhile advances without having much effect on the Averages. That is why I have prOjected a trading range of only 335-300 in Dow-Jones Industrials for the balance of the year. EDMUND vi. TABELL WA.LSTON & CO. This may memorandum IS not 10 be hdve '111 onterest In some contrued or all of a 'HI offer or solkdailon of offers to buy or set! any 5eculle5 From I!mc 10 lime the H!(lir,toe5 mentioned herein The foreqoHlg mlerlal h.H been prepared bv us Wdlsion & Co. as a matter of oInr foarnmy atpiaorntnoenr lyther1et ofI, b,Hed upon ,nlorma!oon belleyed relllble but not necessarily complete, is not guaranteed .n accurate or 'lnal, lnd I not Intendd to 'orecloe Indepennl InqUlrv

r Walston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,t,laod) OFFICES CQASr TO COAST CONNECTEr. BY DIRECT PRIVATE WIRE SYSTEM TAB Ell'S MARKET lEnER . June 4, 1954 / As one looks at the general market pattern, it becomes very evident hat the action of the averages bear no relationship to individual stock. he Dow-Jones industrial average has advanced'from approximately 255 in/ eptember, 1953 to approximately 330 today. This is an advance of seventyfive pOints, or roughly 30 in a period of a little over eight months. everal high grade investment issues have bettered this advance. For example, General Electric has advanced over 75 during this same time eriod. On the other hand, a great many issues have done little marketwise during the same period . .It would appear evident that some issues have advanced substantially to discount the over-pessimism of mid-1953. Probably issues of the type of General Electric, Union Carbide, Minneapolis Honeywell, DuPont, etc.,are in need of a resting or consolidating period. This may result in very little price movement in the general averages over the next six months or so. I have stated in a previous letter that it is probable that the Dow-Jones industrial average will fluctuate in a trading area between, roughly, 335 and 300 for the next six months or longer. However, this statement taken by itself is no more a picture of what may happen in the market than the statement that the market has advanced sharply from 255 to 330. It is quite possible that some of the issues of slightly lower quality than the blue chip leaders of the last eight months may stage a fairly grod advance. There is too wide a discrepancy at the moment between Grade A and Grade B issues. It would appear more likely that the spread between these groups will be narrowed by an advance in the light blue chips rather than a sharp decline in the h'gh-grade issues. An advance in light blue chips T.ight result in little change in the averages as most issues of this type are not part of the various averages. As far as the low grade, speculative issues are concerned, I see no great evidence in my work of an immediate worthwhile market move. There will be exceptions, of course, but I believe holdings should be concentrated in medium quality issues. TherJ are. ,al1llmb.e.ro.fissuesil1my r.e.cDmmended..,.l.ist thathave about reached their upside objectives and in capital appreciation accounts could be switched into other situations with better profit potentials. They are BENDIX AVIATION which has advanced sharply from its recommended level of 47 (after adjusting for stock dividend) to 80 1/2. The upside objective for this issue on my technical work is 80-90, so I would be inclined to take profits on further strength. INLAND STEEL was my original recommendation in the steel group and has advanced from the 36-40 level to a high of'59 1/8. My upside objective on this issue was the 60-65 area. I believe U. S. Steel at around 48 offers better price appreciation possibilities and I would be inclined to switch from Inland into U.S. Steel. INTERNATIONAL PAPER has moved from 45 (after adjusting for 10 stock Ldividend) to a high of 71 3/4. My upside objective on this issue was the 70-75 area and I believe the stock may have to 'undergo a consolidating period. Here also I would be inclined to t&ke profits on strength. NORTH AMERICAN AVIATION was originally recommended in my letter between 17 and 20. The stock has advanced quite sharply to a high of 35 1/4. For the longer term this very excellent company indicates higher levels,but for the time being it appears high enough. My technical work suggests an intermediate term objective of 36 which has almost been reached. Here again I would sell on. strength and shift. into situations that appear more under- valued. PHILLIPS PETROLEUM also appears high enough for the time being. This issue has advanced from a recommended level of 50 to 67 1/2.The intermediate term objective is 69 and I would be inclined to take profits on further strength. The following issues appear to be interesting replacements for those mentioned above. In most cases the quality is a bit lower, but they are all better grade companies Allied Stores, Celotex, Flintkote, Hewitt-Robins, Lowenstein, Pennsylvania Salt, Pullman, St.Joseph Lead, Simmons, United Fruit, U. S. Steel. These issues will be reviewed in my next bulletin, together with the remaining issues in my recommended list. EDMUND 1'1. TABELL I'IALSTON & CO Thl may memordndum have an Inl .. 'f('tno,tn 10 be lome contrued or 311 of bMed upon InforlT'i1!lon believed rel'db'e tb'IhIuelanneOcoIfufrndre'ceeolrlmoroellnlly(tdIoc'nloelmidpoln htoeerf ,eionf,fsernT' ohtieo buy or sell /lny IE-curd,es foregoong qu,Fonteed moaledoccdul r hilS ate b or From lime een prepdred final, dnd II to !.me Walston & Co, or 'Iny partner ther('of, by us ,H a maller of ,nlormail0'd only 11., not Intended 10 lore close Indepen ent 1IlQUy

h ,— Walston &- Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA lOS ANGELES SAN FRANCISCO LUGANO (S.,hedaod) OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER June 11, 1954 The market had its long overdue technical correction and the Dow-Jones industrials declined to a low of 315.66 and the rails to 105.23. At the lows, both averages were near the strong support points of 315-310 on the indus- trials and 105-103 on the rails. As I have stated in previous letters, I do not believe that the market is vulnerable to a sharp decline of intermediate term proportions. The mar- ket, as measured by the Dow-Jones industrial average, has advanced 75 points in eight months. This steep advance can be corrected technically in one of two ways. One way would be a one-third to two-thirds retracement of the 75point advance. This would mean ,a declineto 305280. The, oXher way would be- a- long consolidating period'before the market continues its advance. I favor the latter. I believe the market will hold in a broad trading area bounded roughly by 335 and 300 for an extended period of time, perhaps as long as six months or a year. During this period, individual issues will act indenpendently of the averages with many issues staging worthwhile advances. This consolidation period will be followed by the next stage of the broad advance with the Dow-Jones industrial average certainly reaching the 1929 high of 386 and probably advancing considerably above that old landmark. Below is the start of a review of the issues in my recommended list. It will be continued in next week's letter. ABBOTT LABORATORIES (47) continues to hold in the broad 40-49 range. More time may be needed to broaden the pattern. Would buy in the lower part of the trading area. ALLEGHENY LUDLUM STEEL (33) was recommended at 28. The stock appears to be in a slow uptrend. The recent high was 34. The potential base indicates 40-45, but the pattern may broaden. ALLIED STORES (45) 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 over two years, to reach 46 1/2. There is some supply at 44-46 that has slowed ac,tion but the-upside obj-etive is -55-65.'—' – — – – – , – – ALLIS CHALMERS (55) was recommended in the 42-45 area. It has moved up to 59 and reacted to 54. The stock appears to be in a slow uptrend channel. The outer limits of the channel are now 67 and 51. Would add to holdings on moderate price declines. ALPHA PORTLAND CEMENT (52) The stock has moved from a 1953 low of 40 to a recent new high of 54 5/8. Would continue to hold this issue. The long term indication is 65-75. ALUMINIUM, LTD. (58) This issue has advanced sharply and may be in need of some technical correction, but the long term pattern remains excellent. Would hold and add to holdings if the 55-50 level is reached. AMERICAN POTASH & CHEMICAL (44) This issue will be reviewed in a later letter. AMERICAN RADIATOR (17) This stock has formed a very strong long term techni- cal pattern. It held in the broad 12-17 area for over four years. The upside penetration indicates an intermediate term 27 followed by higher levels later. There is some supplyat 20-22 that may slow action. Recent high was 18 5/8. Stock appears to be a purchase on minor declines. AMERICAN TELEPHONE & TELEGRAPH (166) This stock has been my favorite in- vestment income issue. It has reached its first objective at the high of 170 but the next objective is the 171-179 area. There is support at.lo5. AMERICAN VISCOSE (34/ This stock may require some further patience. Appears t be building 10lp a base in the -broad- 30'38range–;- Buy on-weakness. BABCOCK & WILCOX (49) Has moved up nicely te, 53 but still indicates high- er levels over the longer term. The intermediate objective is 58-68. BETHLEHEM STEEL (68) Has advanced sharply from the 1953 low of 45 to 71. It was recommended recently at 62 1/4. There is near term support left at 65. The long term objective is 80-85. The stock should be held and bought on price weakness. BLACK & DECKER (44) has broken out of the long term 32-40 accumulation area. Itsrecent high was 46. The intermediate term objective is 45-51, but the long term objective is 70-80. Would add to holdings on minor price weakness. LAW KNOX (20) This issue has been extremely slow but has a strong base pat- tern with an upside indication of 28-33 followed by even higher long term objectives. Patience may be required, but the present 19-20 area is a buying range. EDMUlffi '.1. 5'ABfLL iThh mflmorandum 15 not to bll C0n51rued maV have an Intllrest In some or 'III of b,ned upon Informallon beheYed reliable IH an offer or soliCitation of offllrs 10 thll SIICUrities mllntloned herein The bul nOI necenar,lv complete, u nol fbouryegoOrinsgellmaatneYT.\!MjI'tC-JJblliiUEf!l.tnl1ln/11lrVe,!eIe.t;I.!A.!Jimsc Wahton as a rna gua'lInteed a5 accurate or 'Ina I, .tInd IS not Infended 10 tfoerrCeoc0losoIenrfoIarnnmdvellpr1ea0n1r'1tneoenr I the'lof y IS InquirY

– r ,,I 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 COAsr TO COAST CONNECTE; BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER June 18, 1954 The Dow-Jones industrials have regained almost all of the decline from the early June high of 330.45 to last week's low of 315.66. The week's high was 329.49. The rail average did even better and advanced from a low of 105.23 to reach a new 1954 high of 112.68. This is just a shade below the late 1952 high of 113.94. The technical pattern suggests that the averages are no longer on a one-way street. \-Ie have witnessed a seventy-five point advance in the industrial average over a period of eight months with, until last week, hardly any worthwhile corrections. I believe that over the next six to nine months or more we will witness several sharp moves in both directions. These moves — – will be contained-in, roughly, the broad 335-300 area. — The action of the individual groups and issues will continue to be selective and probably even more selective than over the past months. Some issues appear high enough, others are behind the market and could advance. Still others show no indication of any important move. There will be plenty of opportunities for advantageous switches in portfolios. After this resting, consolidating and adjustingphase is ended, I expect a continuation of the advance. Below is a continuation of the review of my recommended issues BUCYRUS ERIE (27) appears to be in a slow uptrend to the 36-43 range. Action may be slow but the dividend return is good and there is a nearby support level at 25-24. BURROUGHS (20) has finally broken out on the upside of the long 13-18 area in which it held since 1946. The stock has a very interesting technical pattern and indicates a long term price objective of 34-37. There is support at 18. CELOTEX CORP. (22) has broken out of the long 14-21 base and has a long term price objective of 31-38. Would add to h61dings on minor declines. CERTAIN-TEED (17) is still in the confines of the broad 12-18 range. This appears to be an accumulation area with a sizeable long term objective. -C-ontinueto ho'lti-and-buyon–we-a'kness.— -.—. — — CHAIN BELT (38) 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 patient holding. The long term objective is 65-80. COMBUSTION ENGINEERING (51) has advanced from a recommended level of 45 to reach a high of 56 and has declined to present levels.Would continue to hold and add to holdings on moderate declines. Next upside objective is 65. CORNELL DUBILIER (28) rallied very sharply from 22 to 32 and appears to be in a consolidating phase between 29 and 26. viould continue to hold and buy on weakness. The long term objective is above 40. CRANE CO. (32) has a strong otential pattern with an intermediate term in- dication of 40-45 and considerably higher levels over the longer term. It is near a strong support level. EAGLE PICHER (22) has done little marketwise but is an interesting issue for good yield and patient holding. ELLIOTT CO. (26) still appears to be in a slow uptrend channel with sup- port close to the market. The long term objective is impressive but near term action may be slow. EL PASO NATURL GAS (41) has advanced quite sharply from the recommended level of 30 but the technical pattern suggests a further advance to about the 50 level. There is downside support cit- 4D38. – – – FLINTKOTE \34) has broken out of the long 22-33 tradlng range and indicates an initial objective of 41-45 followed by ultimately higher levels. Jm interesting holding. FOOD MACHINERY (43) has moved from a recommended level of 34 to 44. Some consolidation may be needed but there is an objective of 45-49. FRUEHAUF TRAILER (26) has held in the 22-27 area since 1952. jen upside penetration would indicate 36-42. An interesting speculation but patience may be needed. GENERhL RAILVIAY SIGNAL (29) has done little marketwise. 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. EDMUND W. TABELL IALSTON & CO. Th, memorandum ,s not to be contrued a an offer or soliCItation of offers to buy or sell any sccurdle5 From time to lime Walston & Co, or any partner thereof, mlly hi!e all Interest In some or ilil of the securd,es mentioned herein The foregOing mter'I1 has been prep'lred bly U as a mtter of .nformat,,)n only It I based UPOfl Inform'lilon belIeved reh1ble but nol necessarily complete, II not qUdr1'11eed as accuraie or final, and not Intended to foreclole Independent Inqulrv

, ; Walston E,- Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,,d) OFFICES COASl TO COAST CONNECTfC BY OIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lETTER June 25, 1954 Both averages reached new high territory for the move during the past week. The Dow-Jones industrial average reached the highest level since Octo- ber,1929 at the weekls high of 335.09. The rail average, at 114.59,reached a new high since October 1930 and also penetrated the late 1952 high of 113.94. The market has shown excellent action in its recovery from the mid-June dip and still appears headed higher over the near term. The rail average appears headed for the 120-122 area and, while there is no definite count indication on the industrial average, some individual industrial issues still indicate higher levels. – As' readers of this letter know,' I 'have been extreme'ly-bullish 'on- the stock market since September,1953 and I still continue to feel that, over the longer term, the market will move much higher. However, a wofd of caution must be injected at this point on the intermediate term outlook. The industrials have advanced almost eighty points or over 30 in nine months with no correction of as much as 5. While a great many stocks have had only nominal moves and others still indicate moderately higher levels, an increasing number are reaching the upside objectives outlined by my work. On the favorable side, very few issues have as yet built up vulnerable top patterns. This will take some further time. The technical pattprn,as it looks today, indicates some further strength followed by a long consolidation period before the advance is resumed. During this consolidation or adjusting phase I do not expect the industrial average to sell much below 300. For intermediate term traders, the pattern suggests some profit taking on strength. For long term investors' in good, sound equities, there is no reason to change position. After a consolidating phase, the market should move much higher. Below is'a write-up on American Potash & Chemical B. This stock was first suggested in the low 30s, but it still looks attractive for long term holding. —- Statistics A/olERICAN pOTASH &. C.HEMICAL,B….,- I believe this issue is an excellent Current Market Current Dividend Current Yield 49 2.00 4.1 vehicle for long term capital appreciation. It combines a steady earning power in low profit-margin fertilizer chemicals with exceTIent growth poten- Long Term Debt Preferred Stock Common (shares) 2,700,000 9,200,000 431,227 tials in higher profit fine chemicals and rare metals. The management appears to be embarked on a long 'ange program to transfer the emphasis on the com- Net per Share,1953 Net per Share,1952 Sales – 1953 Sales – 1952 4.01 3.26 22,500,000 18,100,000 pany's output from lower grade and lower profit margin products such as potash into higher quality chemicals. In 1953, the company devoted approximately 3 of its sales to research and Market Range 1951-1954 49 3/4 – 28 1/4 it appears that research outlays have been stepped up this year. Until 1930, the bulk of the potash used in this country had been imported principally from Germany. The only known domestic deposits were American Potash at Trona, California, on Searles Lake in the northern part of the Mojave Desert. At that ,time, these d,posit,s, were largely untapped because of-inadequate refining facilities. In'the last twenty-five years, the situation has radically changed. Discovery of large deposits near Carlsbad, New Mexico, and improved facilities have enabled the industry to reach a point where it is now able to meet virtually full do– mestic requirements. In addition to the American Potash operation, about 85 of the present industry output is contributed by three companies operating in New Mexico. American Potash is the only producer of potash on the West Coast and sppiies substantially all the potash requirements for that area. Unlike ts competitors that operate in New Mexico, it recovers potash and other valuable minerals from salt brines pumd up from wells in Searles Lake. j -l -2- There are no miners and no mine shafts and no ore mined. Huge pumps lift the brine through insulated pipe to the refining plant at Trona where,after a complicated refinery process, the minerals are extracted one by one. The principal products recovered are potash,borax,soda ash, salt cake and less- ,er quantities of bromine and lithium carbonate. These products are used in the manufacture of industrial chemicals, glass,soaps,detergents,kraft paper and board, pharmaceuticals,dyestuffs,porcelain enamels and for processing xtiles,leather and oils and,of course, for agricultural purposes as ferti- lizer components and for the correction of soil deficiencies. American Potash owns in fee 2,560 acres and holds,under long term leases from the United States, an additional 5,960 acres with rights of mineral re- moval. Reserves in the upper deposit,from which the company has extracted 1Jr1,ne frol1)j;;I1beginning of operations in 1913,are estimatedto be sufficient for about 35 years of operation at the present annual pumping rate. The new- ly developed lower deposit is believed sufficient to meet estimated annual requirements of the new plant for over a hundred years. American Potash's cost per ton of potash produced have remained high and will continue to remain above several other producers because of high fuel oil costs involved in the Searles Lake unit.This situation cannot be altered nor does it appear that natural gaa will ultimately be a solution to lower costs. The management has,of course, recognized the cost problem and is at- tempting to upgrade the quality of its production by moving into higher priced chemicals where it can obtain the benefits of potentially higher margins. The initial step in this program was the acquisition of Eston Chemicals, Inc.in 1952. Eston's products complement those of Amer.Potash as many of them are derived from the raw materials produced by the company. The company has expanded its research program. A new laboratory was opened in 1953 at Whittier, California, which supplements the Trona laboratory and pilot plant. Research has been developing along several lines, but principally in chemi- cals based on boron and lithium. Boron is chemically related to selicon and may have complementary usages in the silicon field. Research in boron com- pounds has developed a refrigerant,a new chemical for fire extinguishing that is indicated to be vastly superior to carbon tetrachloride,a possible hlgh energy jetfueLand a water-.based withpaint -fireproofingqualities. Extensive rese-arch has also been done on lithium compounds. In order to increase the small by-product output of lithium,American Potash,along with American Metal Co.Ltd.and Selection Trust,Ltd., is participating in the development of a large lithium-beryllium property in Southern Rhodesia.Ore is now being marketed and the construction of a chemical plant for lithium salts is a probable near term development. While not an immediate addition to earning power, the lithium operations hold definite long term promise to- -ward a helpful influence on earnings. Prospects for 1954 are favorable. Net for 1953 equalled 4.01 a share.For the first quarter of 1954, American Potash earned 1.01 as compared with 961 a year earlier.Earnings of at least 4.50 a share for 1954 appear to be a reasonable estimate. Dividends will remain conservative for some time to come.Average earnings for the past decade have been approximately a 3.20 average with average rate of dividends of 1.75.Company has operated at a profit every year since incorporation in 1926 and has missed only a few dividend payments. These omissions occurred in 1927,the first year of opera- tion as a corporation,and during the depression period of 1932-1935.Since then,payments of at least 1.50 have been made annually and in recent years have been at the rate of 2.00 annually. Book Value as of December 31,1953 was 44.15. The stock sold at a high of 109 in 1940 and at 59 in 1945. The stock has an exceedingly strong technical pattern for the long term. My projections indicate an intermediate term objective of 75 followed by much higher levels over the longer term. There is downside support around the 40 level in the event of a general market decline. The stock has appeal as an equity in a company with a sound base in fer- tilizer chemicals.It has a stable earning power of 3 to 4 which nearly supports the current price of 49.In addition it offers the romance of poten- tial growth in rare metals and fine chemicals. The small amount of shares outstanding is a favorable factor.The stock is available at a reasonable price to earnings ratio as compared with other chemical shares selling at a high multiple of earnings representing optimistic distant forecasts. EDMUND W.TABELL WALSTON & CO. ,Ia. in.

Walston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Swlt,.,ld) OHleES COA51 TO COAST CONNECTEr. BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lETTER July 2, 1954 The market moved over a wide range during the past week with the Dow-Jones industrials advancing to a high of 338.78 on Tuesday and declining to a low of 330.68 on Thursday. At present writing, the in- dustrial average has regained most of the week's decline. I expect the market to continue to move in a wide trading area for some time to come. Many issues have reached upside objectives and are in need of consolidation, but there are also many issues that still indicate higher levels. . Below is a brief report on Yale & Towne. This stock has been on my recommended list for some time. It has advanced from a September 1953 low of 31 to a recent high of 49, but has, in my opinion, excellent longer term appreciation potentials. YALE & TOWNE MANUFACTURING CO. Statistics Yale & Towne was founded in 1868 Current Market 45 and has paip a dividend each year Current Dividend 2.50 -A since 1899. While better known to Current Yield 5.5 the general public for its old es- tablished line of Yale locks and Long Term Debt 20,000,000 builders of hardware, it is one of Preferred Stock None the three leading manufacturers of Common (shares) 628,586 industrial fork lift trucks. Because of high labor costs, materials hand- Net Per Share,1953 4.61 ling equipment has been in demand in Net Per Share,1952 4.77 recent years and continued growth in Sales, 1953 109,630,000 this field is expected not only in Sales, 1952 89,010,000 – this country but also abroad. Yale & 1arkeCRanie, 1951-19'54-4-9' 31 – Sowne bas .Bxit.ish, . m'an – subsidiaries. Canadian and GerCompletion of the modernization program will aid in in- A – Including 501 extra which has creasing profit margins and a higher been paid since 1951. level of earnings is anticipated. Prior to 1939, the lock and hardware business was the main source of revenue, but in the past fifteen years the materials 'handling division has become of increasing importance. It now accounts for 65 of volume and is largely responsible for the growth of sales from 17 million in 1939 to 109 million in 1953. The company is the largest factor in the electric lift truck field. These units are powered by electric motors driven by storage batteries. The gas powered truck was introduced in 1949 and the company now handles a complete line of electric, gasoline, diesel and propane powered industrial trucks and hoists. They vary in price from a hand hoist costing 22 to 65,000 ram trucks carrying 100,000 pound loads. They are marketed under the trade names of Yale', manufactured at the larger Yale Materials Handling Division at Philadelphia, and AutomatiC, manufactured at the Automatic Transporta- tion Division at Chicago. The company is one of the three leading manu- facturers of industrial fork lift trucks. Its main competitors are Tow- motor and Clark Equipment. Buda Company (now owned by Allis Chalmers) is also an important factor.. .. The manpower- shortage -during World War II gave impetus to the use of industrial lift trucks and high labor costs and the declining pool of young manpower over the next few years should be an additional growth factor in the materials handling industry. The potential demand for thiS type of labor-saving equipment is far from filled and should continue to expand. This is also true in Europe where the German and British sub- sidiaries are now manufacturing complete trucks. These two divisions, along with Canada, now account for 10 of sales. iThl memorandum I not to bl! construed mlly have an ,nteresl In some or all of based upon ,nformatlon believed relo/lbte IS iln offer or soliCitation of offers to the securities mentioned herein The but not necenarlly complete, 's not buy or sel! any see.,HI',el From me foregOing malenal has been prepMed guaranteed en ,!;,urate or f,al, and IS tonbcyttimUI5enteaWn daelasdtomntoat&tfeorCreo0closoIeIrIfoIarRnmdyeaptpieconHnlenenortnllyhIle,QrluoorfvIS . ,.. -2- The lock and hardware division should also add to earnings. A drastic reorganization in this division has taken place. Most of the high cost operations at Stamford, Connecticut, have been elimiated and two new plants are in operation at Lenoir City and Gallatin, Tennessee, and the plant at Salem, Virginia, has been enlarged. Ex- traordinary expenses incident-to this,moving programwere-over 1 million dollars in 1953. Locks and building hardware account for about 33 of sales. Another division, powdered metals, is now small (2 of sales) but could be of increasing importance. This division is concentrated at Franklin Park, Illinois, and has an interesting growth potential in a new field. Despite capital expenditures of over 24 million (38 per share) since 1947, financial position is good. Ratio of current assets to liabilities was 3.7 to 1 at the 1953 year-end and book value was 65.20 a share. ' Considering its growth prospects, the stock, which sold at a high of 62 in 1937 when sales were 18 million and at 61 in 1946 when sales were 40 million, does not appear overpriced at 45 with 1953 sales of 109 million. Due to decreased government purchases, first quarter earnings were only 71 compared with 1.14 in 1953. However, there should be some pick-ups in the final half. Improvement in profit margins ,in- creased efficlcncy due to modernization program and elimination of non-recurring expenses ,COUld result in earnings of 8 to 10 in the 1955-1956 period. The st-ock-has -a-strong technical pattern. 'The-ups-i(le p'otential – c, of the long 31-40 trading range of 1952-1953, plus the bettering of the 1951 high of 48, indicates a long term uptrend. There is some supply at 50-60 that may temporarily slow the advance, but the long term objective on my technical work is considerably above the 1946 high of 61. There is strong downside support at around the 40 level in the event of a general market decline. EDMUND W. TABELL' WALSTON & CO. –

't Walston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,h.dd) OFFICES CQASl TO COAST CONNECTEr. BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lETTER July 9,1954 The Dow-Jones industrial average during the past week ranged between a high of 343.20 and a low of 337.64. The rails also reached a new high at 115.26 as did the 65-stock average at 127.51 As I have mentioned before, I believe the market may be in need of a consolidation period and the averages may hold in a rather wide trading area. During this resting period, individual issues will most likely show extremely diverse action. While some of the recent leaders are consolidating, many other issues may continue to advance. Other issues may decline quite sharply but the number of such vulnerable patterns is extremely small. ,- ,- – Below is a- continuation of the review -of issues hI-my recommended-list GLIDDEN COMPANY (34) The stock has done comparatively little marketwise for a long time but appears to be slowly forming a base in the broad 38-28 range. Would continue to hold and buy on weakness for patient long term holding. HEWITT ROBINS (30) The upside penetration of the 14-29 trading range indi- cates a possible long term objective of 53-58. There is support at 28-26. An interesting long term holding with a high yield. IDAHO POWER (48) has a long term objective of 65-70 on my technical work. Its purchase is recommended for long term growth and gradually increased dividend payments. INLAND STEEL (..60-J was my original recommendation in );-t.l.e stee4rouR and has jec tiavdevainsce6d6ff-r6o5m, 'tt'hhe3,s6t-o4c0k alepv'ee'afr\sto, haighhi/genh;bJU.gfh,6. 0I1f (m4y. \Ai,'stmteyrUoPfS\iJdukn\ eob4- th BI esluiegvgeesttheds/ switching is still aI'nlaondd Sw'tieteclh.('ther/59) into/U. S. St,e'el (thn 48J. INTERNATIONAL PF-Ef\ (75) wa-s..lsugg,e-sted fpJ' purchase a4 (after adjusting for and the oih 10t,ock er issues d-Zider;P1'-JynasVeht-s'Uhside appeaTo offer better immediate-ro i 0 t p'e6ctyervn-te io.H..O.-'f'5'\ JOHNS MANVILLE (76) was originally recommended in the 63-60 area. The in- termediate term objective is 83 and the long term objective is 95. Advise continued retention. . – – –… ——– – – – – – – – – -.. -.& — – — JOY MANUFACTURING (33) has shown very poor market action recently. However, the long term pattern is interesting. See no signs of any immediate move but the yield is good and would continue to hold but considerable patience may be needed. KENNECOTT COPPER (85) was suggested for purchase at 63. At the present level of 85, the stock appears high enough. Would continue to hold but await a decline to the 80-75 level for additional purchases. LEHMAN CORP (30) . The upside penetration of the 32-36 range indicates a probable intermediate term 48-50. Buy on minor price declines. There is support at 38-36. MEAD CORP. (37) has advanced from the 23-28 range to the recent high of 37 3/4. Technical pattern suggests a further rise to 39-43. Would take profits in that area. MINNESOTA POWER & LIGHT (23) Price action may be slow but the stock should be held for long term growth and income. MONTANA POWER (35) The present upside potential is 38-40. There is support at 33-32. Buy on minor price declines for long term holding. NATIONAL GYPSUM (32) was originally recommended at around the 20 level. It has about reached its initial objective of 32-35 but the technical pattern suggests considerably higher levels over the longer term. i'Jould continue to hold and addto holdings on minor-price declines. – – NATIONAL LED (5J hasdvanced shply fm a recommended;lvel of 31 ttoime5'31m.ay\T',hbe ' upside obj,Bc'tivf\ Ike'cled\t91 fot.m/a Of 5'0-55 ha's h.w pattefn. beS.efng1g'es'lfcqseW9li.tCl'qinngsJlp-neptoiibt,hJ,e!,/'\ other/issues with better near term profit potentals. NEW YORK AIR BRAKE (19) has done little marketwise for the past year and there is no indication of any immediate move. May be retained for income by patient holders. EDMUND J. 'rABELL WALSTON & CO. — Next week you will receive a reprint of my article in the July 8th issue of the Commercial & Financial Chronicle entitled Stock Market at Mid-Year Coming Pause that Refreshes, instead of the regular letter. EViT

a sharp decline despite the rapid long-term advancing phase. From advance we have witnessed over a techmcal approach, there seems the past nine months. I do believe, little likelihood of a major de however, that some pause or 00- cline in stock prices In 1954 For solidation is needed and that the the long-term Investor, I advise straight line advance In the av- retention of common stock equierages will be replaced by a wide ties that will ultImately benefit trading area in which mdividual from the continued long-term lssues will show extreme selec- growth of the country, ThiS, as tiVlty. I would expect that for the always, will require careful selecnext 6 to 18 months the Dow- tion not only as to quality but as Jones mdustrial averages will hold to price level. After the consohIn an area bounded roughly by datmg period has been completed, 350 and,300. DurIng this period, I expect a renewal of the advance many Issues could continue their WIth an ulhmate objective, III advance while others consolidate about 1960, of 450 to 500 under and form re-accumulatIon areas. normal market conditions and 600 ThIS in no way changes my or higher In a period of specula- thoughts that the market is in a tlve excess '., ,- 4 , f (USED AS MARKET LETTER ON JULY 16,1954) Reprinted Irom 17u1 COMMERCIAL and FINANCIAL CHRONICLE Thursday, July 8. 1954 Siock Markel at Mid-Year- Coming Paase That Refreshes By EDMUND w. TABELL General Partner, Walston & Co. Members N. Y. S. E. Market analyst, on criteria of earnings, dividends, comparative bond yields, and technical factors, maintains market is not vulnerable, despite recent advance. Mr. Tabell traces past divergent course of several groups of designated issues and predicts intensification of selectivity. Concludes while some period of pause and consolidation is required, the D-J Industrial Average even under normal speculative conditions will advance to the 450-500 level by 1960. My article entitled 1954-The seems to be little hkehhood of a Beginnmg of a New Bull Mar- major declme III the stock market ket/' published in the Jan 7, III 1954 The chances rather favor 1954 Issue of the Commercial a rise of about 25 from current and FInancial levels by the end of the year. ChronIcle, This will be the start of an ad- ended WIth vance that wIll gradually broaden the followmg out to include a larger segment paragraph of the market In the At the hme the artIcle was m a i n, 1954 written, the Dow-Jones IndustrIal should be a Average was around 280 At last good year for week's high of 338, the average the InvestOr had almost reached the 2;) ad- who contmues vance mark of 350 and had sur- to hold, and passed the mInImUm objectIve of buy, the com- 325 mentIoned ear 1 i e r m the mon stock Jan 7 artIcle. Also, thIS advance eqUIties that has been accomphshed by mid- WIll ulti- year rather than the end of 1954 mately bene- Has thiS sharp 83-pomt advance fIt from the Edmund W. Tabell from the September 1953 low of continued long-term growth ot 255 placed the market m a vul- the country. ThiS, as always, Will nerable pOSItion reqUIre careful selectIOn not only Admittedly the advance has as to quality but as to-pllce level been steep, but let us see how It FlOm a techmcal dPproach, there compares wIth the two other in- termediate term advances in the past five years For S1 of Earnings 1929 1930 For SI of Same Income Dividends S10 In Bonds 2990 1560 The Five-Year Pattern 1937 1660 1946 1680 22,20 2840 1075 90 00 The first rise started at 160 in Today 11 50 18,75 6,50 June, 1949 and carried to 230 in From a technical viewpoint, the June, 1950 before it was Inter- market does not appear vulnerrupted by the Korean outbreak able despite the sharp flse of the ThIS was a nse of 31 In 12 last nine months. However, it has months. The subsequent COrrec- gone a long way toward correcttion carried back to 195 or about ing the undervaluation that pre- 15. vailed in September, 1953 and The second rise started m July, may be in need of a rest or con- 1950 at 195 and by January, 1953 solidation before the advance is had reached 295. ThIS was a rise resumed. This applies particu- of about 51 in 30 months. The larly to mdivldual stocks, Many subsequent correction carried back have advanced sharply and have to 255 or 13. reached their upslde objectives. The present rise started in Sep- They do not appear too vulnerable tember, 1953 at 255 and has ad- but rather need a period of con- vanced to 338 or 32 in mne solidation or re-accumulation be- months. A 14 correctlOn would fore resuming the long-term up- bring the market back to 300 trend While this is occurring, Here is ho'w they compare many other issues that have not yet reached their upside objec- Subsequent tives may continue their advance. Datc- Advance Time Decline Shll other issues may continue to June t949-Junc 1950 31 12 mos 15 do little or nothing marketwise July 1950-Jan 1953 51 Sept 1953July 1954 32 30 mos 13 9 mos and still another group might decline sharply, although the num- It would appear that the present ber in this group appears rela- nse is out of line only in respect tively small. In other words, it to the time element. This could appears that the one way mar- be corrected by a consolidating ket of the past nine months may penod. be replaced by a wide tradmg Whlle the averages have nsen range with even more selectivity sharply, this does not apply to the than that witnessed in the recent general list of stocks A recent selective advance compilation showed that 65 of the listed stocks were still below Price Diversion Again theIr 1946 highs despite the fact that the industrIal average reached 338 as compared with a 1946 high of 213 As compared with previous high penods, the market, even at present advanced levels, does not appear vulnerable. The table below shows how much you paid for 1 of earnings and 1 of dIvidends in three perIods of stock market The market pattern I envision over the next year or, so may be very similar to that of the period between September, 1951 and September, 1953 when the averages held in roughly a 13 range between 295 and 255 but during which period individual issues followed extremely diverse price patterns. highs as compared with the pres- The price action during that ent and also how much you had Deriod could have been roughly to pay to get the same income broken down into four categories from common stocks as compared or groups and price action over with high-grade bonds Today's the foreseeable future may fol- figures are approximate; low about the same pattern. 2 I Group A mcluded many of examples of issues that advanced the growth issues that advanced during the 1951-1953 consolidat- sharply from 1949 to 1951 or 1952 mg period would include Boemg and then underwent a long period Bullard, C LT. Fmancial, Com' of consolidation before resuming merclal Credit, Flonda Power & their advance and reaching new LIght, Gillette, Gulf States Utili- high territory. Manv of the lead- tIes, Houston .Light & Powe'r, ers of the recent advance were in McGraw ElectrIC, NatIonal Dairy, this group. For ex.ample, duPont Seaboard Airline, Southern Rail- rose from a 1949 low of 42 to a way and Te)as Utilities. 1951 high of 102 and then spent approximately 28 months in the Issues Declining to New Lows 102-79 range in preparatIon for Group C would include those the recent rise to 143lh. As an- issues that declmed during the other example, Mmneapolis Hon- 1951-1953 penod and reached new eywell advanced from a 1949 low lows in 1954 Some have shown of 22 (adjusted) to a 1951 high certam signs of a possible change of 57 and then spent 16 months m trend recently. Just a few of in the 46-57 area before resuming these issues are American VIscose its advance to the recent high of from 78 to 31, Case from 36 to 15, 99;2 Mmnesota Mining advanced Celanese from 58 to 17, Electric from 17 (adjusted) in 1949 to 54 Storage Battery from 46 to 24, Na- m 1951 and spent some 16 months in the 39-49 range before resum- tIonal Distillers from Masonite from 36 to 17 3a6ndtoNe1\7 ing its uptrend to 70. National Jersey Zinc from 82 to 38. At the Lead advanced from a 1949 low of present moment, there are only a 9 (adjusted) to a 1951 high of 33 few issues with vulnerable patand then spent two years in the terns as compared with a rela33-26 area before resuming its tively large number in 1951-1952 uptrend to the recent high of 51th. Some Do-Nothing Issues Many other examples could be cited of issues that spent long 'Group D would include. those consolidating suming theIr periods before readvance. To men- issues that did little or nothing marketwise in the 1951-1953 pe- tion a few-International Paper riod and in some cases since 1949. National cash Register, Scott Some of the issues in the light Paper, Westinghouse Electric blue chip category have shown much better action since Septem- Continually Advancing Issues ber, 1953 and some have advanced Group B mcludes issues that to new high territory. To mentIon continued to advance While other a few-American Potash, Babcock Issues were consolidating during & Wilcox, Black & Decker, Cor- the 1951-1953 period For example, Carner Corp. advanced from nell Mead Dubilier, Cutler Corporation, Nati oHnaalmGmyper a 1951 low of 22 to a 1953 high of sum, Penn-Dixie Cement, Sham- 45 and has since continued its rock OIl, Sperry Corp. and Yale advance to the 1954 high of 62 & Towne. Other issues have done Continental Can advanced from little since reaching theIr 1951-, a 1951 low of 32 to a 1953 high of 1952 highs. Some of the chemicals 56 and has continued its advance lIke Dow and Monsanto and many to a recent hIgh of 71. Douglas of the oils are in this category advanced from a 1951 high of 36 Some of the potentIal advanCing and has continued its advance Issues of the next year or so may to 78. General Electric advanced be found in this group and in '.from a 1951 low of 18 (adjusted) Group C. to a 1953 high of 25 and has con- In conclusion, I do not belIeve tinued its advance to 48;2 Other that the market is vulnerable to

Walston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADJNG STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Swot,ldl OFFICES COASl TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER , , July 23,1954 The market, as measured by the averages, moved over a wide range during the past week. However, it must be plain to almost every investor that the action of the averages means little or nothing except as a very broad measuring rOd. There are many issues that indicate considerably higher levels over the longer term and there are also a large number of issues that appear to be high enough. These indicated moves will undoubtedly takeplaceregardless of whether-the averages move up or'down–' ten points over the next two weeks. Attention should be concentrated on the action of individual stocks and not on the more or less meaningless moves of an average. Below is the completion of the review of the issues in my recommen .. ded list including a few that were inadvertently left out of alphabetical rotation. Also included is a new recommendation, Pan-American World Airways. I have mentioned this issue before in some of my wires and am now adding it to the recommended list due to its recent excellent technical action. GULF,MOBlLE & OHIO (33) was originally recommended in late May at around the 30 level. It has broken out of the long 27-31 range and has an up- side objective of 40-45. This may take considerable time as there is heavy supply at 33-37 that must be penetrated first. Continueto hold and buy on minor dips. INDUSTRIAL RAYON (48) has broken out of the 39-45 accumulation base to reach 49. The upside objective is'53 followed by a later 60-65. Continue to hold and buy on minor price dips. LOWENSTEIN (M) SONS (39) has been on my list for a long time. It was originally recommended in the 28-30 area and hasmoved up to a high of 40. Would'continue to hold as the objective is 45followed by a long term 55-60. MISSOURI-KANSAS-TEXAS,PFD.(65) has held in the 58-70 range since mid- 1952. The pattern suggests an ultimate upside breakout ,with a potential of O-IOO. PAN-AMERICAN WORLD AIRWAYS (14) has broken out of the seven-year old 8-13 trading range. The first upside objectiveis 17-19 followed by a long term 27-30. A very interesting long term purchase. PARKE, DAVIS & CO. (31) has done little marketwise. It may be building a base in the 31-37 range. It has an upside potential of 40-45 and downside support at 30-25. Action may be slow. PENN DIXIE CEMENT (55) has advanced over 100 since its original recom- mendation. It has reached its intermediate term objective, buttl1e long term indication is 73-80. Would continue to hold and buy on minor dips. PENNSYLVANIA SALT (49) is a long term growth investment. The 1951 high was 71. Has recently broken out of the 41-47 area to reach 50. The upside otential is 57-65. PFIZER (CRAS.) (32) appears to be forming a slow base pattern and pur- chases are suggested for patient holding. PITTSBURGH COKE & CHEMICAL (19) is an interesting low-priced specula- tion in the chemical field. The stock sold at 39 in 1951. Appears to 'be forming a hew base but patienc-e- maY-be-reqU1.red-. – – – . . ., PUBLIC SERVICE OF COLORADO (39) has moved up nicely and has reached its first upside objective but the long term indication is 46-48. Hold and buy on minor dec lines. . PULLMAN COMPANY (54) has 'a long term objective of 70-75 but there is some supply., that may slow action. Continue to hold and buy on minor declines. There is support at 50-48. RADIO CORP. (3 li 3/4) has moved into new high territory but still conti- nues to indicate higher levels over the longer term. The first upside objective is 35-36 followed by a later 43. TIm memorandum 11 not to be COMtrued as an offer or solicitation of offen to buy or set! any H!c.uhrltle From timedlo.lme Walston f fraf;tn!therloi may have an In teres! In some or all of the securities mentioned herem The foreqo,ng material as een prepare …,. us as a rna e d based upon InformatIOn believed reltable but not necessarily compleh!, IS not guranteea as accur;lle or final, and IS nol tntended to foreclose Indepenent Inquiry !' -2- REPUBLIC STEEL (61) was originally recommended at around 52 in April. It has reached a high of 61 1/2. The longer,term objective is 72-78 so would continue holdin and buy on minor price declines. ROBERTSHAW FULTON (26) was recommended at 21 in May. It has broken- out of the long 17-23 area in which it had held since 1950. A high of 27 has been reached. The upside objective is 35-40. Hold and buy on minor price –decines — -c.- , — – -. – – – – – —'c'— ST. JOSEPH LEAD (38) has a good support area at 37-35 and the upside potential appears to be 47-50 .. Buy on dips. . ' SHAMROCK OIL (46) has reacted from a high of 51. There is good support at 44-42. Long term upside potential is 65-75. Would add to holdings on minor dips. SIMMONS CO. (36) has built up a potentially strong base pattern. The upside penetration of the 28-35 range indicates an intermediate term 47-52 with a much higher long term objective. There is some supply at 37-40 that may temporarily slow action. , SYLVANIA ELECTRIC (37) recently reached a new high for the move at 40. The next hurdle is the 1952 high of 41. Continue to hold and buy on minor corrections. The upside potential is 60-64 followed by higher levels later. UNION BAG & PAPER (58) appears to be behind the other paper issues. The recent upside penetration of the 38-50 range indicates a long term 70-80. Buy on minor price dips. UNION CARBIDE (83) Despite the fact that the stock has moved from a recommended level of 63 to 89, still consider it an outstanding growth stock. May need some consolidation but would continue to hold and buy on minor price dips. – UNION OIL-( 45) wasat avery' strong support level at the r-ecent low of 43. Consider the stock outstandingly attractive. The long term poten- tial is 60-62 followed by a possible 70-75. . UNITED FRUIT (50) appears to be building a very strong potential base pattern and should be an interesting long term holding for price appreciation and income. Hold and buy on minor price declines. U. S. STEEL (55) was recommended at the 45-46 level in May. Its upside objective is 60-65. Would continue to hold and buy on minor price de- clines. ' VICTOR CHEMICAL (34) has an excellent long term growth pattern. Has broken out of the long 24-32 range to reach a high of 35. The first objective is 42-44 followed by a possible 48-52. WESTERN AUTO SUPPLY (52) is an exce11ent holding for yield and gradual price appreciation. The 1946 high was 90. There is strong support around 45. YALE & TOWNE (47) has a most intersting long term pattern. Recently reached a high of 49. There is some supply at around present levels that may slow action, but there is strong support not far below the market. Buy on all minor dips. The long term potential is 65 followed by a possible 90. – – -, — – – —–. —;.- — —- I am leaving on a short vacation so there will be no letter next week. Publication will be resumed on August 6th. EDMUND W. TABELL WALSTON & CO.