Jr; Walston &- Co. MEMBERS NEW YORK STOCI( EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,t,ldl OFFICES COAST 10 COAST BY DIRECT PRIVATE WIRE SYSTEM TAB Ell'S MARKET lEnER March 4, 1955 The near-term action of the market continues impressive. The Dow-Jones Industrials moved into new high territory at today's close of 419.68. The rails made a new high yesterday at 153.56. Still higher levels over the intermediate term would be Intermediate term objectives for the Dow-Jones averages are now in the 425-450 area for the industrials and 155-160 on the rails. Support levels are now at around 412-410 and149-l1t7. the market is subject at any time to minor cClrrections Of of aGbOou\Jt.-r9seF, — on unfavorable news. Any further advance will, of course, continue to be selective. It is interesting to note that most of the very high-grade investment stocks are already at or close to upside objectives on my technical work. It is also interesting to note that since last November Barron's low-priced stock index posted a gain of 27.5 as compared to a rise of less than 6 in the Industrial average. This is the typical pattern of a mature bull market. I would expect this type of action to continue over the next few months, with the secondary and speculative equities showing the most dynamic price action, compared to negligible rises in investment-grade securities. I have mentioned my liking for oils on several occasions. The technical patterns on most oils are quite favorable with fairly sizeable appreciation prospects over Loth the nearer and longer term and downside support not too far below present levels. The technical patterns on some favored issues are noted below; ATLANTIC REFINING-(38 5/8Y — – — .. .. The stock has formed a strong head and shoulders base at 31-25-32 wii7h a top at 36. The upside penetration indicates an eventual 59-65. Initial objective is 45. Has recently held in the 40-38 range. Upside penetration would indicate 45. A downside penetration would meet support at 36-34. .1– CITIES SERVICE (52) Has formed a strong head and shoulders base at 39-29-37 with a top of 47. The upside penetration indicates 71 followed by a possible 81. Buy on minor declines. There is support at 47. KERN COUNTY LAND (56 3/4) The upside penetration of the 38-49 base area indicates 75 followed by a possible 104. There is downside support at 49-47. MISSION CORP. (43 1/4) The upside penetration of the broad 25-36 area is very ccnstructive and 56 followed by a possible 75. There is downside support at 39-37. SINCLAIR OIL (54 718) – – – – – The head and shoulders base at 39-31-40 has been penetrated upside. The upside potential is 65 followed by 89. There is downside support at 48. UNION OIL OF CALIFORNIA (58) The upside penetration of the 36-45 base area indicates 76 followed by a longer term 95. Has recently held in the 53-59 area. An upside penetration would indicate 65. A downside penetration would meet support at 50. EDMUND vi. TABELL HAISTON & CO. -, Th m.. morand,, it not 10 be tonslnd ., .I off., 0' '01,(..1.100 01 oH,,. to buy O. ull .III, lKuflt…, From I'a 10 t,,, W.hton 1 CO. OlIy EJ.'tn.r IhufOI moly lIa.1t .In 1111 ,.,1 ,II ,ome or ..II of th,. '.(.Uflt… m.ntlon,d h.'11 Til., for.qo,nq m,.l hu b or.od bit' IIi 411 ,.'h-, of ,lIlo.m.llon 0,,1.,. It IS b,t'd IIDon 'IIIo,m'IHI bfh..d I'iSbl. but not neeenadir COlnpt.t., ,t not qu.,.ntd as aocc.,,. 0' fin, I ,nd '5 not 'nt.nded 10 lot,loie ,ndeo.nd.nt ,nqulry

Walston &Co. ,, MEMBERS NEW YORK STOCK ElCCHANGE AND OTHER LEADING STOCK AND COMMODITY ElCCHANGES 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 18, 1955 After declining to an intra-day low of 387.50 on Monday, the DowJones industrials rallied sharply and retraced about half the 34.33 point decline from the March high of 421.83. Friday's high was 408.09. The rail average has followed a very similar pattern. The rally from Monday's low most likely has gone far enough for the moment. There is overhead supply at 410 that may temporarily halt any immediate advance. The intermediate term technical indicator has not yet . reve-rsed the sell- signal .-Sdme–fiirther oaclITng filling in the area for a few weeks is most likely needed before a new buy signal is given. The industrial average now has a triple bottom at the two January lows of 387.09 and 385.69 and Monday's low of 387.50. A downside penetration of these lows would institute a downtrend and a possible indication of a decline to 370-360. I believe it unlikely that this will occur, but it cannot be disregarded. However, neither the breadth-of-the-market action or the size of the distributional tops formed indicate much further decline at this time. A further broadening of the distributional top would be needed and this would take further time. I expect extremely selective price action over the nearer term while the market consolidates prior to an attempt to push through the overhead resistance at 410-420. For example, I believe the oils, natural gas issues and retail stores should be purchased along with other recommended issues. These three groups show excellent technical action. On the other hand I would avoid and sWitch out of aircrafts and other defense issues. The technical patterns of issues in this group are becoming quite vulnerable and the upside potential does not warrant the downside risk involved. – Each time I visit Texas and thegroGwutlhf–Cpooa-sftenatrleaa1,sofI- bthecloSmve amstor-esecatnIdOn — of our country. Originally, cotton was the largest single contributing factor in the Texas economy, followed by cattle. While these are still important, petroleum is now by far the leading source of income. This is followed by cotton, cattle, gas, sulphur and grains and rice. Texas oil became of major importance with the 1901 discovery at Spindletop near Beaumont. In 1900, Texas oil production was 836,000 barrels or 1.3 of the total U. S. production. In 1953, Texas production was over a billion barrels annually or 43 1/2 of the nation's oil. The most sensational discovery recently was Canyon Reef in Scurry County, West Texas. 185 of the 254 Texas Counties are producing oil. Texas industry is well diversified. In the north, Dallas and Fort Worth about thirty-five miles apart, are the most important cities. Dallas is the financial center of the state. It is the home of the Republic National Bank, the largest in the South, and leading insurance companies like Southwestern Life and Southland Life. Fort Worth is one of the nation's largest livestock and grain markets and is called Gateway to the 1-lest. Between Dallas and Fort Worth are some leading aircraft manufacturing plants. TheConsolidated Vultee plant is one of the largest in the world. Located here also are plants of Chance-Vought, Temco and Bell Aircraft. Houston, which is south of Dallas and Fort Worth, is Texas' most populous city with 52.5 increase from 1940 to 1950. It is the fifteenth largest city in the United States and the principal manufacturing, rail and shipping center of Texas. Connected with the Gulf of Mexico by the Intracoastal Canal at Galveston, it is the second ranking port of the United States on a tonnage basis and the gateway to the fabulous Gulf coast development that stretches from Brownsville near the Mexican border all along the Gulf of Mexico to New Orleans. .. ,-2- This development has been brought about by natural gas which is an excellent fuel for use in the chemical and other manufacturing industries. Since Texas is the largest producer of natural gas and Louisiana the second largest, 'it was only natural that many companies would locate near the source of cheap natural gas. The large plants located in this area must be seen to be appreciated. Among others are the Dow Chemical at Freeport; Monsanto Chemical at Texas City; at Ora-nge; Celanese Corp' -afBlshop; Reynolds Metals at Corpus Christi. In Louisiana there is the nation's largest aluminum plant of the Kaiser Aluminum Company at Chalmette. It produces 400 million pounds of aluminum pig and ingot, more than the entire United States produced each year prior to World War II. In addition, there is the large Esso Refinery near Baton Rouge and the American Cyanamid and the Shell Oil plants in the New Orleans area. In addition to the companies mentioned above, there are many stocks that afford an opportunity to participate in the growth of this area. There are, of course, the utility companies of which quite a few, such as Texas Utilities, Houston Light & Power, Central & Southwest, Gulf States Utilities, Middle South and others, are listed. There are also the railroads. In order of mileage in Texas there are Santa Fe, Southern Pacific, Missouri Pacific, M-K-T, Texas Pacific, Burlington, Rock Island, Cotton Belt, Kansas City Southern and Frisco. In the New Orleans area, Illinois Central, Louisville & Nashville, -S-o-u!,hern ansI ,Gu.f, Mobile & .ohio , ;;;- …,..,1 Written at Fort Myers Beach,Florida EDMUND VI. TABELL WALSTON & CO.

. . . . . .-i;, Walston &- Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY eXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,'wlood) OFFICES COAST 10 COAST 8Y OIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER March 25, 1955 Edmund W. Tabell telephones from Florida as follows Last week's market action was extremely encouraging and apparently has confirmed the belief that the six-day decline of thirty-four pOints from the March 4th high of 421.83 to the March 14th low of 387.50 was merely a shakeout that has strengthened the cyclical pattern. Not only did the decline halt above the 385 level where the industrial average has met supportthree times previously, but it has also required only nine trading days for the industrials -to most completely reco\er the ground lost since the early March high. Friday's high was 416.64. The industrials continue to hold in the 385-420 area which has been the trading range since last November. Recent action implies a nearby testing of the upper level of this area. The.market background continues to remain favorable for advances in selected issues where earnings, dividends or special developments warrant higher price levels. MAGMA COPPER COMPANY – 8tatistics The investor who is patient Current Market Current Dividend Current Yield 86 enough to wait for substantial long-term capital gains and who does not require current yield will do well to consider the Long Term Debt. Preferred Stock None acquisition of Magma Copper Company in the 80-70 range,slightly Common 1,069,326 shs. below the current market. Despit – N– et p–er- Share, 1954- – — 5 . 1-8- . – tl1.' Jecen.1Jlhenominal price rise – \ from 25 to 90 over the -past Net Per Share, 1953 4 45 year, the stock, viewpoint, seems from a to have technica conside r- Sales, 1954 Sales, 1953 million 15.3 million able appreciation possibilities. A look at the basic statistics 0 the company would seem to bear Mkt. Range 1954-55 90 – 23 7/8 No cash dividends. 7 stock paid in 1954. 10 stock paid in 1953. this out. Magma is a nedium-sized copper producer whose entire earnings heretofore have come from the RFC Loan 94 million to wholly owned Magma Mine in Arizona. However, subsidiary guaranteed by Magma. since 1944 the through a wholly-owned subsidiary, has been developing the San Manuel Mine in Pinal County, Arizona. To finance this development, the subsidiary, San Manuel Copper Corporation, has borrowed 94 million from the RFC. This loan has been guaranteed by Magma which has also advanced a substantial amount of cash to San Manuel. The terms of the loan also prohibit payment of cash dividends by Magma. Under agreement, the government has guaranteed to purchase 695 million pounds of copper 'during the first years of pro- .J,uction at a minimum of 24 a pound. Co Since this agreement was made, however, the U. S. price of copper has risen to a current 33 cents a pound and further rises are in prospect. Estimating a cost of 15 cents per pound of copper mined, this constitutes an operating profit of 18 cents per pound. Taking the most pessimistic view and assuming a rise in costs to 18 cents and a decline in the copper market which would force San Manuel to sell its oUtput to the government at 24 cents, this still leaves a 6 cents per pound profit.