. . . . . .-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.

r , Walston &- Co. 'EMBERS NEW YORK STOCK EXCHANGE AND OTHEF! LEADING STOCI( AND COMt.4QDnY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,'mld) OFFICES COAST TO COAST COlNECT.C, BY OIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER April 1, 1955 Edmund W. Tabell telephones from Florida as follows As was to be expected, the advance in the Industrial i-verage was tem- porarily halted by the heavy overhead supply in the 410-420 area and the average has backed away before attempting another try at an upside penetra- tion of the over three-month-old 421-386 trading range.First quarter earn- ings, which will be issued over the coming week,should be of assistance to a possible Spring advance.My technical indicator,which signalled a sell in late February,has not yet given a buy signal, but is in a position to do so-during the next two weeks. Statistics DRESSER INDUSTRIES,INC. Current Market Current Dividend Current Yield Long Term Debt Pfd.Stock (shs. Common (shs.) 43 2.50 5.8 12,500,000 43,610 -h 1,876,000 -B Dresser Industries,first recommended in this letter at around 33,last September,as ive participation in the oil and gas industry, warrants a review at this time. Since the stock was first recommended,three im- Net Per Share,1954 5.53 portant developments have taken Net Per Share,1953 Sales, 1954 3.80 130,240,000 place.First,the company has reported earnings for the fiscal Sales, 1953 128,870,000 year ended October 31, 1954 of Market, 1951-1955 45 1/8-17 1/4 A -3.75 cum.conv.pfd.(lOO par) conver- 5.53 per share for the second best year of its history. Second, the stock has been placed on a tible into 2t shs. common through September 15, 1955. 2.50 annual dividend baSis. Third,and perhaps most important, B -Includes 576,000 shs.of common to be the company is to merge with Lane- issued in exchange for assets of Wells,in which Dresser will ex- Lane-VJells. change 576,000 new shares for substantially all of Lane-Wells' assets. At the time of the original estimate, the technical outlook was an initial objective of 44 followed by a long term 60-70. The initial objective has been reached at the February high of 45 1/8 and since then the stock has held in the 45-39 range. With the broadening of the pattern,the long-term objective has been revised upward to 70-80 and at current prices the stock still seems to present conSiderable attraction for long term appreciation. This seems to be reinforced by the new developments mentioned above. The 1954 earnings seem to bear out our optimistic outlook for the company's future.The new dividend,which is,of course,amply covered,places the stock on a close to 6 yield basis and provides an excellent cushion against further declines.Most important,however, the Lane-Wells merger would seem to make Dresser even more attractive from both a growth and stability standpoint. In September it was originally pointed out that a large 'part of Dresser' sales were in expendable goods,rather than in the heavy equipment which had formerly been the main basis for its earnings. Particular emphasis was plaCEd on Dresser's Magnet Cove Barium and Security Engineering Divisions, the for- mer one of the two major producers of drilling mud, the latter an important maker of tricone drilling bits,both expendable items. The addition of Lane- Wells,an important engineering service,connected with the drilling and main tenance of wellS, provides another division for which there is a recurrent demand.At first glance,the issuance of half a million Dresser shares for an average of 2t million annual income would seem to be a slight dilution,but it is expected that this will be offset by the operating economies to be affected by the merger. The long range effect of the consolidation will undoubtedly be to in- crease Dresser's coverage of the oil and gas industries. Due to the acqui- sition and a slight lowering of volume,Dresser's income will probably be around 4.70 or slightly lower for this year.This is borne out by the January quarter report of 1.09 Dresser continues its long-term growth trend,our earnings estimate of 7.50 to 8 for 1957-8 may prove to bE conservative.On this basis,the technicaJ projection of 70-80 seems to be a distinct likelihood. ANTHONY W.Th.BELL . ,, I

'1 Walston &Co. ;-. ''I MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISw,,,..I,d) OHleES COAST TO COAST COlNECTfC BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER April 7, 1955 In an artic Ie entitled, How High Is The Stock Market, en the J..pril 7th issue of the Commercial & Financial Chronicle, Edmund W. Tabell says that th market appears to be in a middle area, neither vulnerably high nor drastical undervalued and that each stock must be examined individually as to whether is under-priced or over-priced. He says that, from a technical Viewpoint, there is no immediate evidence of a major top in the market. His immediate attitude is conservatively bull- ish with commitments limited to less exploited situations with a minimum d)wnside ri-sk-. gradually lighten capital gains holdings on strength. Fr'om the longerterm- viewpoint, there seems to be no reason to disturb undervalued present holdings or te refra.Ln from adding to' commitments in undervalued situations. He still believes a rise to the 600 level is a possibility by 1958-1960 and does not believe the industrial average will sell below 335 in the next five yens. BARBER OIL COMPANY Statistics Current Market Current DiVidend Current Yield 59 2.00 3.9 Assuming that cash in the hands of a proven, successful management is a good investment,the shares of Barber Oil Company would Funded Debt.& Pfd.Stk. None Common Stock (shS.) 754,882 bear watching as an attractive long-term oil industry participati)r. Barber's principal asset consists 11 Earnings per share,1954 1.21 Earnings per share,1953 5.11- 375,000 shares, of-American RepubliE. The assets of this company have re cently been sold to Sinclair Oil,a Price Includes 3.35 non-recurring profits. – – – t;. will..,.shoI't ly t.ed . per share. This Mill result 'in cas for Barber of about 22 million af r capital gains taxes, or close to per Barber Added to present cash in the coffers, Barber now ha / about 35 per share in cash for investment. It is the stated intention of the management to use this cash for operations in the oil industry. Considering the successful record of Mr. T. Rieber and his associates in changing Barber from a roofing 'company with oil royalties into the major stockholder in a successful oil producer, it seems fair to conclude that this money will be used wisely. The faith of the management in the company's progress is indicated by their stated willingnes to buy the company's own stock if this can be done at advantageous prices. Since Barber is selling at a discount from probable break-up value, such prices would presumably not be too far below current levels. Barber's other assets, beside the 35 a share mentioned above, seem to give the stock real value. It has recently acquired ,160,000 shares of TXL Oil Corporation and 10,000 Texas Pacific Land Trust. Since this has a current market value of 8 per Barber share, the current buyer of Barber Oil at 59. is paying only 16. per share for all of Barber's other assets. These include a fleet of eight cocean-going tankers, all-under charter-, a 48 intel'est in tanker company, and perhaps, most interesting, a 50 interest in American Gilsonite Inc. which it owns jointly with Standard Oil of California. Gil- sonite is a hydro-carbon product now used in the manufacture of storage bat- teries, electrical insulation and other products. Research'is now under way on possible extraction of petroleum frem this mineral, and while this is still in an exploratory stage, it represents an interesting potentiality. It would thus appear that at current prices Barber represants fair value to the current purchaser. The stock is now selling close to its 58- 54 technical support level and the chart pattern indicates 75-80 followed by a long-term 105-115. Further development of the large cash position on the part of an astute management could very possibly result in substantial capital gains. ANTHONY 'II. Ti-.BELL —,,-m-,m-'–'d-om-;,-,,-.–'-'–'-,-o'-d-..-.-.–.-,–.-.,,-,,.-.,-,,-,-.'-.-fl.-,,-.-.-.,-,-..-,-,,-, 8fo fIoI1 n ,n 10m, C). II 01 '1'1, NClld ntlon.d .t.h. , …. 100;10'''9 ,.tlflal I'll' beln P,p.,d IIPO ,,,Ic,,,,.,,,,,o,, b.f,…..o ),,,11. b,,' 0' IIK.n4I,1I1I compl.t., IS 1I0f Qvet',d e. eccwet. or finel, nd , Co, or any partn.r Ih.r.oJ, \I' III ,.It'H of In',mlfIOn only It Ii ,nnd,d to IOf,do Ind,p,nd,n' ,nQuifY

Reprinted from The Commercial and Financial Chronicle Thursday April 7, 1955 – How High Is the Stock Market by Edmund W. Tabell Partner, Watson & Co. New York City Members New York Stock Exchange – Market analyst maintains recent market rise ensued from impact of past-due investor confidnce on previous undervaluation. Citing statistical differentiation from 1929 situation, holds on value criteria prices are now at only one-third of that boom level. Describes his attitude as conservatively bullish with intermediate terms commitments limited to less exploited situations with a minimum of downside risk; with a rise of the D.J. Average to 600 by 1958-1960 a distinct possibility. Differences from 1929 Technical Soundness

Walston &- Co. NEW YORK NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES PHILADELPHIA lOS ANGELES SAN FRANCISCO LUGANO rSwd,.,Id/ OFFICES COAST TO COAST BY DIRECT PRIVATE WIRE SYSTEM TAB Ell'S MARKET LEnER j,pril 22, 1955 Edmund W. Tabell phones from Richmond, Va., as follows There is no change in my current views as outlined in my Commercial & Financial Chronicle Article of last week. Would expect 435-450 in the Dow- Jones industrials and 165 in the rails to be the maximum upside objectives for the averages for the time being. Although there is no reason for distur bing long-term investment accounts at this juncture, it would be advisable to lighten commitments in capital gains accounts as individual stocks reach their objectives. COCA-COLA -C0MPANY' .. – – – Statistics Quality is usually expensive in today'E Current Price 122 stock market. Many stocks of the highest Dividend Current Yield 5.00 4.0 investment grade are selling today at as much as twice their 1946 highs and three Funded Debt & F'fd. none Common ,stock (Shs.) 4,268,078 times their 1949 lows. Yet today, the com mon stock of Coca-Cola Company is selling for 125 as against a 1946 peak of 200. In Sales,1954 – not available fact, during the unprecedented 1949-1955 Sales,1953 – 251,200,000 bull market rise, the price of Coca-Cola Earned per sh.,1954 – 6.08 Earned per sh.,1953 – 6.60 has been in a general downtrend. There is no disputing the company's in vestment quality.Over a period of years, Price Ra l1ge, 1955-46 aggressive advertising and merchandising have built Coca-Cola to a position where it commands around 50 of the total soft-drink market. The nickname Coke and the slogan The Pause That Refreshes are synonymous with se', drinks allover the world. The history of Coca-Cola is the story of one of the most successful consumer sales campaigns in merchandising history. est Since ock, there would ostensibly is hardly any dispute about the investment lie in the in earnings the. which have slciLprpo1ef)di.ngoff quality of the Tqe .'l–!1sy/eJ steadily from a record 8.76 per share in 1949 to an eight-year low of 6.08 for last year. It would appear,however, that a long-term view hardly supports the thE- Sis that this is a permanent trend.First of all,the decline in earnings tool plac hold e during to the 51a period when the parent company was steadfastly attempting to price line and the six-ounce bottle during a period when it was faced with rising costs and competition from drinks put up in larger bottles. Under the new management of Mr. H.B.Nicholson,a hard-headed execu- tive with a strong advertising and merchandising background,the company is now experimenting with a larger bottle.With most local bottlers now chargine more than 51,it seems that any further derline in earnings could be fore- stalled by a general adhercmce to the 101 price of most of Coca-Cola's com- petitors. In addition to the above factors,which seem to point to more ag- gressive competition on the part of the company,there are numerous other pOints which seem to make Coca-Cola attractive as an investment at this tim Its wide acceptance among all segments of our population would seem to in- dicate that it will continue to grow as the population increases. hn increa e in foreign trade will tend to stimulate foreign sales.And perhaps most im- portant,the large cash practically no debt,assures that any increase in earnings will ac-rue to stockholders in the form of dividends. the above factors into account, is one of the few issues of real quality available today at reasonable pric IE. It's quality and stability offer an excellent hedge against a declining mar keto (It is interesting to note that the stock could have been bought in and sold at a profit in More than this,however,the prospect of earnings offers substantial opportunity for long-term capital gain. The recent technical action of the stock seems to mirror increased investor confidence.The critical point is 126.The recent upside breakout to 127 indicates a break in the long-term downtrend andan eventual 210. There is strong support at 101. It would thus seem that Coca-Cola offers quality reasonable yield, capital gains potential and good defensive value. It truly appears to be one of the few real blue chips now available on the bargain counter. – ANTHONY vi. TABELL \IH5'f'ON & 00.

Walston &Co . '—– …. e…. BERS NEW VORK STOCK EXCHANGE ANti OTHER LEADING STOCK AND COMMODITY EXCHNGES NEW YORK PHILADElPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw;t,ld) OFFICES COAST TO COAST COl.(NECTHi BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER April 29, 1955 The Dow-Jones industrial average traveled over a wide range during the past week with a low of 420.52 on Monday followed by a new high of 432.76 on Tuesday, followed by a decline to 421.96 on Thursday. Wide price movements measured in points is to be expected at the relatively high level of the market. Fercentagewise, the price movement has not been too extreme. I do not look for any wide move in the general market at this stage. On the upside, the 435-450 area would appear to be about the expectation and would be inclined to lighten commitments if that level is reached. On the downside ,,–J There wilJ.—;–of cour's..e,,41b0e. m1Jcli wider'pri,ce-mbvements in-m.d,lvidual'- J issues with continued selectivity. Individual groups can move in both direct ions as witness the sharp decline in the aircraft issues over the past month or mere. vJarning of this was given in the March 18th letter which said; 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. — Reproduced below is my recommended list. Because some of the issues are very near upside objectives or for other reasons, I have eliminated some nineteen issues from the list. The issues eliminated are listed at the of the letter. Price resent Recom. Price Yi.eld Advice Alleghany Corp. 3 '3/4 8 Allegheny Lud. 33-30 47 Allied Stores 38 56 Allis Chalmers 4548 77 ArneI'. Chain Amer.Encaustic T 30-33 7 39 13 Amer.Potash B 40 84 ,, Amer.- Ra-dci-a,toI' ArneI'. Tel & Tel – . J.,4-1-6 h 150 , 23, 181 Assoc. Dry Goods 26- Balt . & Ohio 23-25 29 45 Barber Oil Black & Decker 59 39 58 58 Blaw-Knox 22-18 27 Bucyrus-Erie 22-23 35 BCuarlgroaurygh&s Add. Ed. 15-17 16 29 15 Celanese 31-37 23 Certain-teed 15 26 Chain Belt 30-35 46 Cities Service 38 4.8 City Products 37 37 Coca Cola 122 122 Colgate Palm. 60 53 Combustion Eng. 45 70 Consol.Natl.Gas 25-27 34 Cont'l Motors 10 12 Corn Products 70-75 88 Cornell Dubilier '21'-22' . – 33 – Cutler Hammer 57 72 Dow Chemical 38-40 49 Dresser Ind. 33 44 Eagle Picher 22 34 Fansteel 22-24 29 General Mills 69 70 Great North.Rwy. 30 41 Greer Hydraulics 12 15 Hall Printing 16-17 21 Hewitt Robins 25-30 32 – 4.3 5.4 5.2 6.4 5.4 2.4 – 5.6 5.0 . 5.5 2.2 3.5 3.4 4.4 5.7 3.4 3.3 2.2 4.8 5.4 4.1 6.8 4.1 4.7 4.3 4.0 6.7 4.4 5.8 4.2 2.0 5.7 4.4 1.7 3.6 5-.4 6.7 63 Hold for 12 then 17. Buy for 74. Hold for 78. Held for 90. Hold for income and 58. Hold for 17-19. Hold fer 110-12C. -Ho.l.d,.f.or–2B,JollQ.w,epby 45,., -;0 Buy for income and 200. Buy for 44. ' Hold for 50-55. Buy for long term gain. Hold for 135.Buy 52-50. Hold for long term 52. Hold for 47!50. Hold for long term 45. Buy for long term speculaticn. Hold for 34. , , Hold for long term 49. Hold for lcng term 78. Buy for 8l. Buy for income. Buy for long term 200. Buy for 71. Hold for 82-92. Hold for 50-52. Hold for 18. Hold for 133 Hol'd fo-r 42-'45. – ,-' Hold for 120-140. Hold for growth. Buy for 70-80. Buy for 61 then 97. Buy for 49. Buy for long term 110-125. Hold for 48. Hold for speculation. Hold income. Buy for 43 then 85. – — — – — — —- —..;–;;;..—,,' , -2- Industrial Rayon Inter. Tel & Tel Jaeger Machine Joy Mfg. Lion Oil – ,&coPcpo…r Mission Corp. M-K-T, pfd. Monsanto Chern. Mont.Dak.Util. N.Y. hir Brake N. Y. Central Northern Pac. Otis Elevator Facific Pete. Pan-Amero VI.Air Paramount Parke Davis Penn Salt. Pfizer & Co. Fullman Raybestos Man. Raytheon Robert.Fulton St. Joseph Lead SSiimnm-colnasnC-oo.rl' .. Sylvania Elec. Tungsol Elec. Union Carbide Union Oil of Cal. United Fruit United Mer.& Mfg United Shoe Vanadium Warren Pete. Western Auto Western Md. Rd. Western Pac. Yale & Towne Frice Recom. 45 18 27 47 35 -38 55 93 26 18-22 20-21 59 39 11 11-13 23 32-35 45-48 28-32 51 42 10-12 21 40 36 ,- 35 28 63 45-50 47-50 19 50 19-20 25-28 25 18-25 55-60 45 Present Frice Yield 54 5.6 27 4.4 30 6.7 48 5.2 51 3.9 -7266- ' – – 38 87 6.9 126 2.0 28 3.6 26 6.2 41 4.9 75 4.0 65 4.6 11 0.9 19 4.2 41 4.9 43 4.2 49 3.8 46 2.9 60 5.0 51 5.9 24 32 5.6 46 4.3 – 43 5.8 45 4.4 30 4.2 88 2.8 53 4.2 55 5.5 22 4.5 51 4.9 47 3.8 47 4.3 28 5.3 41 66 4.5 57 3.5 dvice Hold for long term 79. Hold for 31-33. Hold for 40 then 52. Buy for 75-100. Hold for growth. BBuuyy ffoorr '3l-o4ngT5t-eHromwedg-abiny. – // Buy for 56. W…. Hold for over 100. Hold for growth. Buy for 45-60. Hold for 34. Hold for long term 60. Hold for 100. Hold for long term 97. Buy as long term speculation. Buy 20-18 for 27 followed by 45. Hold for 57. Buy for 52-56. Buy for slow 69. Hold for long term 58-65. Buy for long term 85. Buy for 82 then 97. Hold for long term 46. Hold for 40-46. Hold for 57. BuY-ffoorr 7551-thtehrie-Sn.3;rL- .- . Buy for 65-68. Buy for 45. Buy for 86-88, for growth. Buy for 76 then 95. Buy for income then 86. Hold for 26 then 36. Buy for long term 100. Hold for 57. Hold for long term 70-75. Hold for income and 36. Hold for 46 then 53. Buy for 100. Hold for long term 105. Below are the nineteen issues eliminated. There are approximately 330 points profits in these stocks Abbott Lab., Celotex, Chicago & East. Ill., Columbia Broadcasting, Flint- kote, Garrett Hercules Motors, Hershey Chocolate, Hooker Electric, Idaho Power, Lees (Jas.), Lehman Corp., Lowenstein, Montgomery Vlard,. – Penkk & Ford,Shamrock 01l;-'Vrctor–ChemicaT, Visking'Corp.,-Vles-terrl' ., Union. EDMUND W. TABELL WALSTON & CO.

Walston &- Co. MEMBERS NEW VORl( STOCK EXCHANGE AND OTHER LEAOING STOCI( AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISwit,lend I OFFICES COAST TO COAST CO'lNECHi BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET LETTER May 6, 1955 For the past three weeks,-both averages have remained in trading shelves with the industrials in a 432-420 range and the rails in a 162-157 area. Or- dinarily, a breakout of these areas would be of considerable technical signi ficance, but under present circumstances, I question its importanee. A down- side of the industrials would meet support first at 415-410 and again at 410-400 and lastly at 400385. These are all strong support areas as the average has held in the 420-385 range or higher for over five months. The rail pattern is somewhat different (and stronger). There is good support at 155-150 and very strong support at 150-140. On the upside of the recent trading -area there is, of no -has,there of a re-accumulation area formed to indicate much higher than 435-450 on the industrials and 168-172 on the rails. In other words, from a technical viewpoint it would appear that the probabilities over the next few months favor a relatively wide trading area with extreme selectivity rather than an important general move either up down. This technical pattern appears to about coincide with the fundamental market background. Based on present earnings and dividends, the market is, in most cases, adequately valued at the present l''''ice level. Any sharp price rise would result in temporary overvaluation and a vulnerable technical pattern. On the other hand, with the rising trend in earnings and the favorable longer term outlook, any sharp decline in prices would present a favorable buying opportunity. Extreme selectivity will continue as illustrated by the recent action of the aircraft manufacturing issues. This group had been one of the market leaders with a rise of over 200 in eighteen months. The group became over- bought in February-March and in the past two weeks has declined sharply with individual issues dropping 20 to 40. The inherent strength of the general market is illustrated by the fact that the industrial average declined less than 4 despite the sharp drop in the important aircraft group. Fortunately, there are no other groups at the moment, with the possible exception of some of the machine tool issues, that appear as as did .. will be intensified over the next few months with some groups advancing at the same time that others are dpclining. It appears to be a time to be neither aggressively bullish or aggressively bearish on the general market, but to be extremely selective on individual situations. I would be inclined to avoid issues that have advanced sharply and appear to be overexploited and concentrate on issues that still appear reasonably valued Three such issues are Allegheny Ludlum, Dresser Industries and Joy Manufacturing which are all on my recommended list ALLEGHENY LUDLUM STEEL is yielding slightly over 4 at the present 'itice of around 48 and the 2.00 annual dividend. It is possible that a small stock dividend might be paid later in the year. First quarter earnings of 1.37 were sharply above 195trresults of 58/. Continued demand for special- ty steels should help the immediate picture and the long term pattern is very promising for titanium /prospects. Technically, the stock indicates 57 for the-nearer term and 74 for the longer term. There is downside sup- port at 43-39. I DRESSER INDUSTRIES is another issue that appears to have a minimum of downside risk and a very constructive long term technical pattern. At present prices of 43, the stock offers a yield of almost 6 on the 2.50 dividend. Earnings for the January quarter were,a bit below last year's results, but themerger with Lane-Wells and the consequent diversification of sales should result in a higher level of earnings over the not too distant future. The technical pattern is impressive with a long term indication of 70-80. There is downside support at 41-39. JOY MANUFACTURING at 4'9 yields over 5 on the 2.50 regular rate. Earnings for the fiscal year ended August 1954 were sharply lower at 4.08, but are slowly improving. Earnings for the March 31st quarter totalled 1.36 as compared with 1.04 the year before. Longer term prospects are favorable, both from a fundamental and technical Viewpoint. There is downside support at 45-42 and the upside indication is a nearer term 55 followed by 72 and much higher levels over the longer term. EDMUND W. TABELL '11 ArSTON & CO

Walston &- Co. t.IEMBERS NEW YORK STOCI( eXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADelPHIA LOS ANGELES SAN FRANCISCO LUGANO Sw,h.d.,d I OFFICES COAST TO COAST BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER May 13, 1955 HE\JITT-ROBINS, INC. Statistics The usual characteristic of – any growth stock is that the pricer Current Market 34 earnings ratio is high and the Dividend 2.00 yield is low. The common stock of Cu–r- rent Yield 6.0 C', – Hewitt-Robins, Inc., however,which – ..- Funded 2.62t Debt. Cum.Pfd. 5,148,000 25,000 shs. of dynamic growth, is now sellingten times the average annual earn- Common 287,051 shs. ings for the past ten years and is yielding better than 6. It Sales, 1954 Sales, 1953 35,590,000 38,490,000 to represent intrinsically sound value in these &ays of shrunken yields anfr high-priced earnings. Earned Per Share,1954 2.82 Hewitt-Robins grew out of two Earned Per Share,1953 4.29 companies. The first of these was Robins Conveyor Belt of assaic, – Mkt.Range,1955-1953 35 5/8 – 23 5/8 New Jersey, a manufacturer of con- veyor equipment serving the mining, sand and gravel, cement and steel industries. During the depression, Robins Conveyor Belt purchased a controlling interest in Hewitt-Rubber Com- pany, a tire manufacturer, and transformed it into a maker of quality indus- trial rubber goods. The two companies merged into Hewitt-Robins, Inc. in 1945. The reason for the stock market's lack of interest in Hewitt-Robins -leemso.ctolie .ito.is still dustrial machinery. This fails to take into a fact that a in–. large part of Hewitt-Robins' sales lies in the field of materials handling and foam rubber. Both these fields have excellent growth possibilities. – Materials handling, as it applies to Hewitt-Robins, means the transpor- tation of materials by a system of conveyorsand conveyor belts. The wide- spread growth of automation is necessitating ,the use of these in more and more factories. Hewitt-Robins is currently the only company in the world able to offer the factory owner a complete system including both machinery and belting. Other companies offer either one of these components, but only Hewitt-Robins is able to install a complete materials handling system with full maintenance responsibility for the entire operation. In this field, the company is also dOing extensive research on moving sidewalk, which may be commonplace in the airports, theater, and other public places of the future. Hewitt-Robins' foam rubber division also appears to have a good growth potential. The company made its entry into this line through supplying feam rubber seat cushions to automobile manufacturers. They are major suppliers to General Motors, Chrysler and Ford. The company's expansion has been the- most. dynamic field. Recent.ly they purchased assets,-,-of the Fre- mont Rubber Oompany and installed a spreader unit which produces foam rubber in belt form. At the time of its acquisition in 1954, Fremont was operating at a loss and did so through the larger part of last year, but it has now been put on a profitable basis and this year will make a substan- tial contribution to earnings. Up until this year, Hewitt-Robins' earnings while reasonably steady, have shown little or no growth. This is attributable to the fact that the management has devoted most of its energies to expansion rather than to oft.nl 'tmor.ndum is nol to b, corulrUld II ,,. off.r or i01itit.tiofl of to bioi, or lin ,n, 'Kutle' From time 10 'ime W.ldon , Co, or tny p.,'n., th.ftof m..y …… ,n '' 'rut ,n 10 or ,II of 'h, Hcyrlli flolled h.r.ln 'M ',ltl1'lai II.. b.,,, prep,r,d bitt 101 I' m.ftu of l.. only II !I.ned lipan info,m!lt,o b.hued Itbl. bllt not nec.IMrU, cOl'llpl.t., is not qUlrlnt.,d .1 ecc.'''' Ot' fin,l, nd II not ,nl,nded to for'clOIe ,ndep,nd,nt InqllV – r -2- cutting of costs and efficient development of sales of its existing products. The present year should be one of consolidation, during which time the management will be able to concentrate on cutting costs, increasing sales and reaping the benefit of the huge expansion program of the few years. Net sales. for example, have increased from less than million in 1949 to 35t million last year, and during the first quarter of this year the company operated at the rate oofperifaOtemaitl-lion apnually. expected .tMtit armual -level wiUiout further capital – cost. Last year's relatively poor earnings showing of 2.82 per share is attributable first to unusual competition in the industrial rubber field; second to the loss incurred in the Fremont operation and third, to a six-week strike at the Staten Island plant. This year first quarter earnings were increased to 881 vs. 721 last year. We would- estimate annual earnings of 3.50 to 3.75 for 1955 with further in- creases to come. It is not at-all hard to estimate an earnings level of 6 to 8 a share for Hewitt-Robins within the next several years. To realize these earnings, it would only be necessary to earn an amount on the present capital equal to-that which has been earned on much less capital in prior years. Hewitt-Robins' book value has shown an increase every year during the past ten years from 25.72 in 1945 to 41.40 at the end of 1954. Working capital has been increased from 4 million in 1945 to around 10 for the past three years and plant and properties from 3 million to over 7 million. The earnings potential inherent in this great increase in capital assets is just beginning to be realized. -1s The-tchnicar-panern on HewiURob-ins -very and implies only a minimum of downside risk as there is strong support in the 30-26 area. On the upside, the preliminary objective appeersto be 40-43 with a long term projection of 85. It would seem that a deter- mined effort to consolidate and increase earning power on the part of an aggressive management can make this projection a reality over a period of time. ANTHONY W. TABELL IALSTON & CO.

II Walston e-co. t.!EMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCI( AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,e,ld I OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER May 2-0, 1955 Both averages have broken out on the downside of month-old trading ranges b the decline has halted at initial areas. The- DowJones industrials d Dped out of the 432-420 trading shelf but met supoort in the 415-410 area reach 412.69.- By the week end, the industr-ials c had crallied back t 423.84. The rails have followed a similiar oattern. The downside breakout o the 162-157 trading shelf was halted in the uODer part of the 155-150 initiru s port area at 153.73, and the average has rallied back to 157.91. Whether tre d line reached its ultimate lows is still problematical. My technical indicat br 'w ch signalled sell in late Aoril has not yet reversed the sell Signal, but is i a oosition to do so shortly. In any event, there are successive support arss i both averages not too far below the lows and I would expect any declin a this stage of the market pattern to be extremely selective. From a technical viewpoint, it is difficult at this time to envision a Wide m e in the general market in either direction. Technically the prese m ket has a somewhat similiar pattern to that of the 1951-1953 market. During t t period, the industrial average held in a range between roughly 240 low and high, a range of a little over 20 from low to high. During this period, t e chip growth issues consolidated and held in narrow trading areas. Du Pont f example, held in the 80-100 area for twenty eight months and most other gro t e ities underwent similiar reaccumulation patterns. On the other hand B g ups had wide price fluctuations both upside and down.- So far this year the industrials have held in the 432-385 area, a range bf , r ghly only 12. I would expect this trading area to broaden somewhat, but whe I i will broaden on the upside or the downside is still problematical. On the b fsis 1-0 pr-esent earnings-alld d-ividBnds the-market wDuld seem- overvalued at about- 450 a undervalued at around 350. From a timing viewpoint, it is probable that afiEir' s e further irregularity, the market will have its traditional Memorial Day to L or Day advance. After that, it would be normal to expect a return to the p t of the 11ide tradir.g area later in the year. r This contemplated pattern suggesto a ht issues if capital appreciation is market that necessitate owning the the prime motivation. It also suggests la m ket where over-exploited issues should be avoided. In the 1951-1953 market, C anese dropped from 58 to 20 at the same time that Seaboard Air Line was a ancing from 18 to 48. Similiar divergience will undoubtedly occur in the c( templated trading shelf in which the market may hold for a considerable perid o time. the long term investor, the contemplated pattern suggests no radical chan e ir I would maintain a fully invested position in good sound growth estment My belief is that the Dow-Jones industrials will reach 6c in 1958-60. For new purchases, would stress defensive qualities rather tha aI reciation prospects. For those interested in longer term capital-gains, would be a bit on the c tious side and would lighten committments on strength into the 435-450 area o on strength in industrial issues. It is possible that this area will not be r cheq and it may be necessary to advise lightening committments at a lower le e He ever, from present technical indicationsIcontinue to expect a somewhat stronler rna during the summer months. This should allow building up partial liquidiy ir prder to be in a position to re-enter the market at the lower part of the ce trading area. I would limit new committments to issues in groups wreir'e relative strength action has been above average in recent weeks. I pc like selected rails, chemicals, natural gas, department stores, eJ tronics, airlines, utilities, oils and textiles. EDMUND W. 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,heddl OfFICES COAST TO COAST COIIINECTfC BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER May 27, 1955 At the week's high of 425.66, the Dow Jones industrial average had' recovered ,over 70 of the decline from the April high of 432.76 to the low of 412.60. The rails, at 158.90, had recovered approxi- the same percentage amount of the 8.87 point decline from 162.60 153.73. Volume has been relatively small on both the advance and dec line. – It now appears probable that the lows of mid-May will hold and that the market has already embarked on its traditional summer rise. My technical indicator has not yet reversed the sell signal of April, but -i't is almost-cert-ain that-a'buy signal It- is. – sometimes necessary to anticipate a coming signal and it might be wise to do so in this instance.- Just how far a summer rally can carry is problematical. One thing is certain, however. The advance, if it occurs, will be extremely selec- tive. Technical patterns of individual issues vary from strongly bullish almost as strongly bearish. Selection will be most important. In a market sense, I would be inclined to lighten commitments in the 435-450 area. At that level, the averages would be adequately priced on ohe basis of present earnings and dividends and it would be normal to expect at least some consolidation when that level, or its 'equivalent in individual issues, is reached. Below are some comments on individual issues on our recommended list Allegheny Corporation (9), originally recommended at 3 3/4, has moved above 9 again. The Interstate Commerce Commission has authorized the company to issue new preferred in exchange for outstanding preferred. If the exchange offer is accepted, arrears of 130 on the present preferred will be eliminated. Would continue to hold Allegheny common. Indicated objective is 11-12 for intermediate term and 17 for longer term. Allegheny Ludlum Steel (45) remains one of the most reasonably priced – . stee.l i titanium lend long term appeal. Increasing earnings indicate the possi- bility of a year-end extra. Yale & Towne (65) originally recommended at 45, has broken out on the upside of the 53-58 area. The intermediate term objective is 68-72. The recent high was 65. The longer term objective is 104. The dividend has been increased to 75 quarterly. Earnings for 1955 should be sharply above 1954 results. Pan and Am Ib e'CrlibcansinWcoerldDeAceirmwbaeyrs. (20) has h'eld in a trading shelf between 20 1/2 An upside penetration of this area to reach 21 would have considerable technical significance and indicate a possible advance to the 25-29 area. The long term indicator is above 40, but there is supply between 20 and 30 that may take time to penetrate. For new purchases the following issues have shown the best technical action and would recommend that new commitments be chosen from the list below Price Present Recom. Price Advice Stores 38 58 Buy for 78. Goods 26 30 Buy for 44. Oil Calgary & 59 16 – – 1559 Buy for long term gain. Buy -f,or long –to-erm Cities Service 38 50 Buy for long term 81. Ind. 33 44 Buy for long term 70-80. Eagle Picher 22 32 Buy for long term 61. Hewitt Robins 25-30 36 Buy for 43,then long term 85. Lion Oil 35 49 Buy for growth. Mont.Dak.Util. 26 27 Buy for long term 45-60. Penn Salt 45-48 48 Buy for slow 69. Simmons Co. 36 45 Buy for long term 71. EDMUND W. TABELL WALSTON & CO. J iI — —-