Walston 5- Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISw,.,I..d) OFFICES COAST TO COAST COlNECTEC BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lEnER June 3, 1955 On increasing volume, the market has continued its advance. At the intra-week highs of 430.25 and 161. 84 both averages were approaching the April highs of 432.76 and 162.60. As anticipated, my intermediate term indicator has signalled a buy. This occurred on Thursday. All technical indications now point to a further extension of the rise and the ment of new high territory very shortly. The upside projection on the industrial average is 435-450. The rails should reach the 168-174 However, discrimination as between groups and individual issues is assum- ing increased importance and should persist as the dominant force. Tise- is being -by – Second . quarter results should better than even the excellent first quarter returns. Earnings on the Dow Jcnes industrials for the first quarter were roughly at the annual rate of 32.00. This compares with 28.05 for 1954. It is possible that earnings for the full year of 1955 might reach 33.50 to 35.00. At the present 32.00 rate, the Dow industrials are selling at 13.3 times earning. This is not an overly high ratio. In 1946, the ratio was over 20 times earnings. On the dividend side, the picture is also favorable. Cash dividends for the twelve months ended March 31st totalled 18.39. This compares with 17.47 for 1954. The annual rate for 1955 will most likely be in the 19 – 20 area. Just how much of this improved earnings and yield picture has been discounted by the rise from 255 in September 1953 to 432 earlier this year is, of course, problematical. At the present levels, the market does not appear dangerously high on an earnings or yield basis. Neither does it appear as drastically undervalued as it was during the 1949- 1953 period. The market in the past has quite often ignored earnings trends and, in fact, has moved counter to them .. That is why the tech- nical action of the market must be watched very closely over the next few weeks. A continued downtrend in volume and in the number of ad- vancing issues during a period in which the stock market averages – – reach–new andwoulC!- signal a diminishing buying urge. If this occurs, would become increasingly cautious and drastically lighten holdings, but in the meantime, the nearer term-trend favor the upside and a continuation of the traditional summer ra'ly in the selective fashion we have witnessed in the past five months. My favorite groups are chemicals, airlines, department gas, textiles, rails, lead and zinc, farm machinery, oils and liquor stocks. Allied Stores reached new high territory at 60 3/8 as did Associatro Dry Goods at 31 1/8 and Gimbel at 26 7/8. These three stocks all have exceedingly strong patterns in an exceedingly strong group. Longer term technical objectives are considerably above present levels. Black & Decker should earn over 7.00 for the November fiscal year. At a price of 62, it does not seem overvalued. The long term technical pattern suggests an eventual price objective above 100 and there is downside support at 50. The oils have been a definite disappointment so far, but I still believe they should be bought. The appear to offer only a minimum of downside risk and the upside is quite large . . One of the favorites in my list is Cities Service. -'- -.0 If you are looking for yield plus an opportunity for long term capital gains there are twenty two issues in my that yield- ing 5 or more. They are Allis Chalmers, Amerlcan Chaln, Amerlcan Radiator, Associated Dry Goods, Bucyrus Erie, Chain Belt, City Products, Continental Motors, Cornell Dubilier, Dresser Industries, Great Northern Railway, Hall Printing, Hewitt Robins, Industrial Rayon, Jaeger Machine, Joy Mfg. New York Air Brake, Raybestos Manhattan, Robertshaw Fulton, Simmons Co., United Fruit, Western Auto Supply. EDMUND vI. TABELL WALSTON & CO.

Walston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEAOING STOCI( AND COMMODITY eXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO iSw,…dd I OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER June 10, 1955 JOY MANUFACTURING CO. Statistics Twenty years ago coal mlnlng was a slow laborious process. Coal Current Market Dividend Current Yield 50 .''50 – –5-.-0 .. was mined by hand machines and dragged out of the mine tunnels by slow electric cars. Then, in 1937, introduced Funded Debt Common (shs.) 2,000,000. 893,954 and pioneered the shuttle car, the first of the three discoveries that were to revolutionize the mining of Sales, 1954 Sales, 1953 62,780,000 77,780,000 coal. This car, however, produced an uneconomical situation. Coal could be taken out of the mines Earned Per Share,1954 4.08 quickly, but with hand mining Earned Per Share,1953 5.89 methods it was impossible to dig sufficient coal to use the shuttle – 1955- 50 1/2 — 23 5/8 cars to full capacity. Ee.ven years later, in 1948, came the answer -the continuous miner – a machine which dug coal and loaded it onto shuttle cars as fast as it could be ripped from the earth. The major producer of continuous miners was Joy Manufacturing Company. One would think that the saga above had come full cycle. The intro- duction of the new machine, however, simply reversed the situation that had prevailed in pre-1937 days. Coal could now be mined faster than the shuttle cars could carry out of the tunnels. Half a shuttle operator's time was spent returning with empty cars. A great deal of a loaders time was' also -spent idle-;– these- d1.1'f1-cul tie-s .–Tfie- answer 'wa-s the extensible belt conveyor, a portable system of conveyor belts which would take coal off a continuous miner and carry it out of the mine tunnel as fast as it could be dug. The introducers Joy Manufacturing Company. The above story is told for a reason. It shows what can be done with aggressive management and product development. It is precisely this type of product development that has characterized growth companies. Instead of exploiting existing markets,such companies make their own markets. A capable team of Joy Manufacturing executives is showing its ability to do this. As an example in the decade 1945-1954, Joy acquired various companies at a cost of 8.8 million. In that same decade these companies earned, after all taxes and charges, 21.1 million or approximately two and one-half times what was paid for them. It would be hard to find a better record of astute acquisitions on the part of corporate management. Perhaps the reason many investors do not realize the growth poten- tial inherent in Joy is its identification with the coal industry. This view fails to take into account two factors. First, the competition among mine operators has practically forced installation of mechanized e-quipment For example, -a- m'ine equipped with continuous miners and ex- tensible conveyors can mine about 50 tons of coal per man per shift. The man-shift average for all mines worked during 1954 was less than 9 tons. It is easy to see the enormity of the competitive advantage which Joy equipment gives a mine operator. Secondly, only 44 of Joy's 1954 sales were in the coal mining field. Intelligent product development, as mentioned above, includes the use of a company's skills in other fields where they can develop a useful product. Joy has done precisely this. It has turned its ability to produce coal mining machinery into other mining fields – notably potash – where it has put the domestic potash industry on a par with -2- foreign competition — and copper — where it manufactures equipment used on Copper Range's huge White Pine project. 90 of the It is also interesting to note that Joy produces a comprehensive line of uranium mining equipment, now being used in Canada and Rhodesia. Fages could be consumed re'citing past examples of Joy's aggressive product development and its potential for future growth; the fact that i LpJ'.oqu;.es. ai-rcraft; its expansion into road-building equipment and, through recent acquisitions, into the oil and gas industry. All of these factors give the same impressions; a vision of future growth. Yet participation in this growth is available today at almost bargain rates. Joy Manufacturing is selling today for less than ten times ten-year average earnings. Last year's earnings of 4.08 can safely be said to constitute a floor for some time to come and the results of the past few years would have been far better had government price-fixing not held income down while costs were rising. Evidence that Joy's improving earnings is seen in the second quarter results for this year. This quarter showed per share earnings of 1.40 as compared with 1.04 last year with a gain of almost 2 million in sales. Further gains are expected for the remainder of the fiscal year and these should bring earnings close to a 5 per share level for the fiscal year ending September, 1955. Much higher earnings are expected for future years. From a technical viewpoint, the stock held in a broad trading area bounded by 43 and 24 for over eight years. The ability to break Qu,Lof a levecl-,p-f, over-100. For the nearer term, the potential is 52-55 followed by 70-75 for the intermediate term. ANTHONY W. TABELL WALSTON & CO.

., Walston &Co . ,. MEMBERS NEW YORK STOCK eXCHANGE ANO OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADElPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,',IdJr rA OFFICES COAST TO COAST CONNECTfG BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER June 17, 1955 EAGLE PICHER COMPhNY statistics It is the practice of the Eagle PicherCompany to publish Current Market Dividend Yield Funded Debt Common Stock 33 1.80 5.5 –.- 15,000,000 989,177 shs. on page of their annual report a list of the products which the company produces. A comparison oL these .back pages, for the fiscal years 1951-and 1954 proves rather instructive. Sales, 1954 Sales, 1953 Earned per sh., Earned per sh., 83,230,000 85,030,000 2.47 3.28 On the 1951 report the list of products is headed by a long enumeration of various types of painting materials. Also in a prominent position is a list of Mkt.Range 1955-51 various types of metallic products. By contrast, the back page of the 1954 annual report lists neither painting materials nor metallic products as among Eagle Picher's line. Heading the 1954 list is the company's Fabricon Products Division pro- ducing various types of automotive parts, cellophane,polyethylene food wrappers; plastics and various glass fiber parts. Another new addition to the 1954 list is the Ohio Rubber Company Division producing various molded and extruded rubber parts for use by the automobile and other in- dustries. This comparison pOints up the tremendous change which has taken place within the Eagle Picher Company over the past two years. By means of an aggressive – –m111ion,–Eag-le expansion program and has been the capital o utala-my inolfngovaenrd 30 – — smelting company to a fabricating and manufacturing company serving the building and automotive industry. The first step in this process was the acquisition in 1952 of Ohio Rubber Company which has plants in Ohio, Pennsylvania and California. The principal products of this company are molded, extruded rubber-tometal mechanical rubber products manufactured from natural, synthetic and silicone rubbers. In 1954,the company acquired Fabricon Products, a leading producer of trim foundation panels, deadener felts and other fiber products for the automobile industry. This company also manufactures wax papers, candy and food wrappers, printed cellophane and polyethylene food wrappers and molded polyester fiberglass products. Also, in the years 1952-1954 the company disposed of the unprofitable paint and metallic products divisionswhich had contributed very little to earnings prior to their sale. Other divisions, retained as a part of Eagle Picher Company, are the Insulation Division manufacturing mineral wool insulation for industry and the home and the Pigment Division producing various lead and zinc products as by-products of zinc produced by the mining division. Also operated as a part of the mining division are a-zinc smelter,three concentrating mills and a germanium plant. Germanium is the principal material used in electronic transistors which, it is believed, will eventually replace vacuum tubes in many electronic uses. It can be seen from the above that Eagle Picher, rather than being a company entirely dependent on fluctuations in metal prices, is now in a position to participate in the booming auto and building industries. It is expected that this profit will become apparent for the first time in the earnings for the fiscal year ended November 30, 1955. Earnings per share in 1954 were down to 2.47 vs. 3.28 in 1953 and 4.08 in 1952. Sales, however, were off only 2 in 1954 despite termination of war contracts and a .. -2- temporary depreciation of income due to the discontinuance of metallic products and paint division and the fact that the highly profitable Fabricon operation was in operation for only five months of the fiscal year. With Fabricon contributing a full year's earnings and with a sulphuric ..acid plant- I,S net, a substantial gain in profits is expected for this year. This is borne out by the February quarter results. During this period, the company's sales increased to 26.2 million vs. 15.1 million in the like 1954 period. Per share earnings rose to 711 vs. 321. The rise in zinc prices would also have a good effect on 1955 profit margins. With improving earnings in prospect for this year and the stock still yielding better than 5 on the recently raised dividend, the Eagle Picher shares have attraction over both the nearer and longer term. It would seem that it is logical to expect the earnings to be valued somewhat higher than in former years due to the change in the product line of the company. In summary, Eagle Picher appears to be an excellent commitment for both income and growth. From a technical standpoint the upside penetration of the broad 17-28 range is very constructive and indicates an intermediate term 61 followed by 97. For the nearer term an upside penetration of 35 would indicate 40. – Due J-oy Manu facturing was reported in last week's letter as 2,000,000. The correct figure is 20,000,000. ANTHONY VI. TABELL vIAL,sTON & CO. '-

,, Walston &- Co. t.4EMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILACELPHIA LOS ANGELES SAN FRANCISCO LUGANO Sw,'wld I OfFices COAST TO COAST COlNECTfC BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lEnER June 24, 1955 On September 2nd, 1948, with the Dow-Jones industrial average at the 184 level, I expressed the opinion that the market was greatly undervalued because of the extremely high yields and fantastically low price to earnings ratios then prevailing on better quality common stocks. I further stated, that based on my technical work, I could envision first an advance to above the 1929 high of 386 and finally to an bbjective of 450 by the mid-1950s. This opinion was received with considerable skepticism at the time, but the 450 objective was finally reached just about on schedule at the week's high of 451.49. Strangely enough, the upside objective of the recent 420-385 base area is also approximately 450 so it may be that around this level at least a temporary top may develop while the market consolidates the sharp advance that has occurred from not only the November 1954 low of 352, but also from the September 1953 low of 255. On the unfavorable side, the market appears adequately valued if not actually overvalued on the basis of projected 1955 earnings and dividends. Also, recent breadth of the market action based on VOlume, advances and declines and new highs and lows has been at least negative if not actually unfavorable despite the attaiRment of new highs by the market averages. Also, the recent sharp advance has brought my technical indicator into overbought territory and a temporary correction seems in order. On the favorable side, at least temporarily, there are only a few issues that appear to have built vulnerable distributional tops. If such tops are to form, more time will be needed. Furthermore, there are still many issues that continue to indicate higher levels over the nearer term. It would appear advisable to continue the policy recently advocated by this letter. The industrial average may hold around the 450 level for quite some time, but I would lighten holdings of individual issues if individual upside objectives are reached. I would build up some cash reserve and make new commitments only in groups that appear to be in a definite long term uptrend and appear to be not too vulnerable on the downside. In my opinion, the airlines are such a group. The industrial average has advanced 76 from the 1953 lows, but the airline group has advanced 178 and I expect this favorable relative strength action to continue over both the near term and longer term. The action of individual airline issues has been quite diverse. Over the past twenty months, Capital Airlines has shown the best price action with an advance of over 320 while United Airlines has advanced 119 for the smallest rise in the group. My favorite airline issue from a technical point of view, is PAN-AMERICAN WORLD AIRWAYS which nas shown slight1y,below average action with an advance of 150. In my opinion, it should show increasingly better price action from here on. My technical projection is 25-29 for the intermediate term and 45 for the longer term. Present price level is around 20. The technical Picture is very strong and the 19-18 level is a good support zone. The strong technical market pattern has apparently been formed because of developments that appear to be favorable for both the near and longer term (1) Traffic is in a sharply rising trend. The first quarter results showed a 26 increase over the 1954 period in passenger miles flown and commercial revenues reached a new high of 44.7 million for a 21 gain. The expanding tourist service and augmented flight capaCity through delivery of new planes indicate a continued improvement. (2) The recent reductions in air mail service payments and subsidies appears to be an unfavorable development but, in my opinion, this is DOt entirely true. A gradual elimination of subSidies and less dependence on air mail revenue would be constructive. The trend appears to be working in that direction. In 1954, mail receipts were only 18 of gross operating revenue as compared with 57 in 1940. Subsidy payments are de- ,, –,– -2- clining each year and it is possible that they can be entirely eliminated in the not too distant future. This would appeal to investors who have avoided the stock because of the subsidy stigma. It would mean that this company, although competing with highly subsidized foreign carriers, is able to stand on its own feet. (3) Pan-American and W. R. Grace Steamship each 50 of a South American airline known as Panagra. The Justice Department has brought an anti-trust suit in order to force both companies to sell their Fanagra holdings. It is possible that this suit might be settled by a consent decree and never brought to court. At the same time, the whole controversy on air service between New York and Latin America might be finally settled which would be most likely beneficial to all concerned. (4) The direct service from Chicago and Detroit to Europe via the Great Circle Route through Newfoundland was inaugurated in 1954 and has extended Pan-American service from the United States interior to foreign points. Other important applications to the C.A.B. are pending such as (a) non-stop service New York to Mexico, (b) Los Angeles to Europe via Mexico and Cuba, (c) Pacific Coast cities to Europe via the Polar route. (5) Revenues have shown steady growth since the end of World War II. In 1954, passenger revenues were almost twenty times greater than just before the war. This growth should continue. Last year for the first time, the airlines rephced the steamship as the principal medium for J overseas travel. Pan-hmerican in 1954 carried 28 of all overseas passengers who travelled by air or by sea to and from the United States. Earnings should show a gradual increase. Cash flow earnings before depreciation in 1954 were about 4.76 as compared with reported net of 1.69 which included 481 non-recurring profit from sale of planes. Fre- sent cash flow earnings are probably over 5.00. Company reports annually only, but first quarter earnings are estimated at 551 with profit from sale of planes included,but excluding subsidy. 1955 earnings could possibly total 2.25. These probabilities,together with an attractive technical pattern, suggest purchase of the stock as the outstanding airline equity. American Gilsonite, which is jOintly owned by BARBER OIL and Standard Oil of California, expects to begin construction sometime this Fall of a new 10 million plant which will produce high-test gasoline and metallurgical coke from Gilsonite deposits. Gilsonite is a form of asphalt found in a natural state in eastern Utah. Barber Oil, which is one of the issues in my recommended list, appears to be in a position to benefit from the interesting potential in Gilsonite. Estimated earnings for 1955 on two of the issues in my recommended list are being revised upward. Expect 7 – 7.50 a share earnings on Allegheny Ludlum Steel as against our previous estimate of 5.00. On Joy Manufacturing, the projection of close to 5.00 earnings for the year endin-g September 30th might be changed to c loser to 5.50. EDMUND W. TABELL WAlSTON & CO. -r

Walston &Co. t.4EMBERS NEW YORK STOCIC EXCHANGE ANO OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISw,,,,,I,,d I OFFICES COAST TO COAST CO4NECTEC BY DIRECT PRIVATE WIRE SYSTEt.4 TABELL'S MARKET LETTER july 1, -1955 The stock market, as measured by the Dow-Jones industrial average, reached new high territory during the past week at 456.11. However, the other two averages failed to confirm the advance with the rails unable to better the June 23rd high of 166.10 and the utilities still below the – high of 65.75 reached four months ago. The failure of the utility aver- age to move ahead with the industrials is particularly disturbing. In the past, the utility average has usually topped out several months before the general market. The inability of the utility average to reach new high territory, with a declining rate of volume and of ad- vatJcing issues…..in markeT; leads to-fhe'corfcluslon thatfne market may be slowly losing its upside momentum despite the attainment of new highs by the industrial average. This action has caused me to be somewhat csutious about the market over the intermediate term despite the fact that the long term outlook remains distinctly favorable. It is entirely possible, however, that some correction or consolidation may occur before the market moves much above the recent highs in the averages. – Many individual issues continue to indicate higher levels over the longer term and in some cases, for the nearer term also. A review of the issues in my recommended list follows. \le have dropped three issues from the list. BALTIMORE & OHIO, originally recommended at 23-25, -was dropped because at the recent high of 50 3/4 it had reached its 50-55 upside objective. It is suggested that profits-be taken in the other two issues. RAYTHEON, originally recommended at 10-12, is now selling at around 22 and has been as high as 25. WESTERN MARYLND, originally recommended at 18-25, has dropped sharply from 44 to 34 because of court disapproval of the re- capitalization plan designed to satisfy accumulated dividend arrears on the first preferred. This may delay the plan for a long while and .price action may. would profits on of the list should be held. They all indicate considerably higher for the longer term as noted below. In the event of a general market de- cline, they would meet support at the buy levels mentioned below. It is not at all certain that these buying levels will ever be reached before the upside objectives are attained. I'.llsl!hany c OJ'P , Lud.Steel Allied Stores Allis Chalmers Amer. Chain hmer. Encaustic T. i.mer. Potash B Amer. Radiator Amer. Tel & Tel Assoc. Dry Goods Barber Oil Black & Decker Blaw-Knox . Bucyrus Erie Burroughs Add. Calgary & Ed. Celanese Certainteed Chain Belt Cities Service City Products Coca Cola Colgate Palm. Combustion Eng. Consolo Nat'l Gas Price Recom., '3 3'/1 33-30 384548 30-33 7 40 14-16 150 26 59 3922-23 15-17 1631-37 15 30-35 38 13272 60 45 25-27 Present Price -Yield 1,0 58 61 35 4.9 75 5.3 41 6.1 14 5.0 79 2.5 27 4.7 183 4.9 3630 4.8 3.6 70 25 – 24.89 36 56 34 279 18 24 2.1 29 4.3 46 5.4 54 3.7 32 6.0 137 3.6 58 52 69 4.3 34 4.4 Advice HQld ror 12,then 17.BUY at 8. Hold for 85.Buy at 50-48. Hold for 98. Buy at 5753. Hold for 90. Buy at 6660. Hold for 587 Buy at 38-35 Hold 17-19. – Hold for 10. Buy 75-70. Hold for 45. Buy at 22.- Hold for 175-173. Hold for at 30. Hold for 80-115.Buy at 58-54. Hold. for 135. Buy 62-58 Hold for lo-ng term 52.Buy 22f- O. Hold for 47-50.Buy 35-33. Hold for long term 45.Buy 30. Hold for 36. Buy at 15. Hold for 34. Buy at 20. Hold for long term 49. Hold for long term78. Buy at 6. Hold for 81.Buy at 51-48. Buy for income. – Hold for 200. Buy at 125-r20. Hold for 73-100.Buy at 55-5C. Hold for 82-92. Buy at Hold for. 50-52. Buy at 30. 1 – Price Recom. Present Price -2- Yield ,.dvice Continental Motors 10 10 Corn Products 2J 29 Cornell Dubilier 21-22 33 Cutler Hammer 5r 72 Dow Chemical 38-40 58 ser-'OIndus-tr4.es 33—. . Eagle Picher Co. 35 Fansteel Metal. 22-24 30 General Mills 69 77 Great North.Rwy. 30 42 Greer Hydraulics 12 14 Hall Printing 1617 22 Hewitt-Robins 25-30 36 Industrial Rayon 45 58 Int. Tel & Tel 18 28 Jaeger Machine 27 32 Joy Manufacturing 47 53 Lion Oil 35 52 Magma Copper 75 84 Merck & Co. 20 24 Mission Corp. 38 42 M-K-T, pfd. 55 90 Chemical 93 142 Montana-Dakota Uti1. 26- 29 New York hir Brake 1822 25 New York Central 20-21 45 Northern .Pacific .,, 59 Otis Elevator -. 39 70 Pacific Petroleum 11 . 12 Pan-Amer.World Air. 11-13 20 23- 43 Parke-Davis 3235 44 Penn. Salt 45-48 53 Pfizer, Chas. 28-32 49 Pullman 51 64 Haybestos Man. 42 53 Robertshaw Fulton 21 33 St.Joseph Lead 40 53 Simmons Co. 36 43 Sinclair Oil 46 59 Sylvania Electric 35 48 Tungsol Electric 28 31 Union Carbide 63- 100 Union Oil of Cal. 4550 55 United Fruit 47-50 59 United Mer. & Mfgrs. 19 22 United Shoe Mach. 50- 49 o ,Vanadium 44 Warren Petroleum 25-28 48 Western Auto 25- 28 Western Pacific 55-60 69 Yale & Towne 45 70 6.0 Hold for 18. Buy 10-8.- 4.1 Hold for 447 Buy at 27-24. 6.1 Hold for 41-54. Buy at 27-25. 4.2 1.7 Hold for 120-140. Buy at 60-58. Hold for Buy at Ho Idfor . -Buy,at.,JU,-39-;- 14..37 Hold for 61 to 77. Buy-at 32-30. Hold for 49.-Buy at 26-24. 39 Hold for 110-125. Buy at 65. 572 Hold for 48. Buy at 35. Hold for speculation. Hold for 29-41. Buy at 19. Hold for 85. Buy at Hold for 79. Buy at 49-47. Hold for 31-33. Buy at 24. Hold for 4052. Buy at 30-27. Hold for 75-150. Buy at 48-4'5. Hold for 90. Buy at Hold for 200. Buy at 75-70. Hold for 34. Buy at 22. Hold for 56. Buy at 37-35. 6.6 Hold for 124. Buy at 90-85. 1.8 Hold for growth. Buy at 130-120. 3.4 Hold for 45-60. Buy at 28-25. 6.2 Hold for 34. Buy at 4.4 Hold for 70c Buy at 42-39.- 3. fo.r95;1l6…..B.uy at L7-72. 4.5- – . 0.8 Buy as long term speculation. 4.0 Hold for 27-45. Buy at-20-18. 4.7 Hold for 57.- Buy at 38-36. 3.2 Hold for 52-56. Buy at 43-40. 3.5 Hold for 69. Buy at 48-45. 2.8 Hold for Buy at 45. 6.3 Hold for Buy at 57-52. 6.6 Hold for 72-97. Buy at 5.6 Hold for 4046. Buy at 2825. 5.7 Hold for 57-95. Buy at 4944. 5.8 Hold for 7196. Buy at 4.4 Hold for 6589. Buy at 4.2 Hold for 65-68. Buy at 44-41. 4.0 Hold for 45. Buy at 28. 2.5 Hold for Buy at 9-90. 4.2 Hold for 76-95. Buy at 50-45. 5.5 4.5 Hold Hold for for 86. Buy at 26-36. Buy a5t5-529.. 5.1 Hold for 100. Buy at 45-40. 3.2 HC!ld for.,.57. 4.2 Hold for long term 70-r5.Buy 40. 5.7 Hold for 36. Buy at 26-25. 4.3 Hold for 104. Buy at 63-60. 4.3 Hold for 105. Buy at 60. EDMUND W. TABELL VlALSTON & CO.

f Walston &- Co. MEMBERS NEW YORK STOCK EXCHANGE ANO OTHER LEADING STOCK AND COMMODITY eXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISw,'wldJ OFFICES COAST TO COAST COt.4NECTfC BY DIRECT PRIVATE WIRE SYSlEt.4 TABELL'S MARKET LETTER July 1955 In a series of rather wild featuring some of the better- grade equities, the Dow-Jones industrial average moved over a wide area during the past week. At Wednesday's intra-day high of 471.15,the average showed an advance of twenty points on the week. At Friday's close of 461.18 the gain had been cut down to roughly te n points. In a continuation of the divergent action noted in last week's letter, the other two averages did little marketwise. The utilities were practically unchanged from last week's close, but the rail average was almost-four points lower at the week's closirf level of 157.65. In line with this unfavorable action my intermediate term -s1gnallea–abuy -late '1n-May— reve-dect -1tspa-ttern and gave a sell signal on Thursday. Just how far the market can decline at this juncture 1s problematical. No serious distributive tops have as yet been formed. There is an initial support level in the industrial average at the 450-445 level and another support zone at 435-430. If either of these support zones are reached, the subsequent action of the average must be watched closely for signs of a distributive pattern. rail average has held in the 163-155 zone Since mid-April. A penetration of this three-month- old trading area would indicate 170-175 on the upside and about 145 on the downside. The utility average has also held in rather narrow trading area for quite some time. A decline to 63 would indicate a probable 60-59. When, as and if a correction occurs, it will most likely be as selective as the recent advance. HEWITT-ROBINS (35) whichha-s been on our recommended list for some time has just introduced a new type of moving sidewalk that can go around corners and carry passengers in two directions. This new design promises to clear the way to increased mechanization of pedestrian traffic at airports, large shopping centers, railroad terminals and subways. Three of the new conveyors will be installed in the new 10 million air terminal to be built at Dallas-Love Field at Dallas, Texas. They will carry passengers and their baggag. -fromthe-ticket -oJ'..Lice. to-plan.es -ano-bring-ilcoming-passengeJ-s-fromthe planes into the terminal. The total length will be 1,406 feet, more than twice the combined length of all other passenger conveyors currently in operation. One of its main advantages is its ability to carry passengers in two directions. This is possible because it can turn around and travel in a continuous circuit. I continue to like Hewitt-Robins as an interesting holding for substantial long term appreciation combined with a good immediate yield of 5.7. JOY MANUFACTURING (51) is another favored recommendation. Virtually all product lines of Joy are currently experiencing good demand.This is also true of the company's foreign business,with both exports from U.S.factories and operations of foreign subsidiaries running at a volume above earlier estimates. Contributing in a major way to the increase in foreign business is heavy demand for construction equipment, conveyors, mining machinery and parts. Illustrating the firm's success in diversification is a growing backlog in oil field drilling equipment and a gratifying rise in demand for the products of the newly acquired Baash-Ross Tool Division,supplier to the oil and gas drilling field. Reflecting the development of taconite iron ore, the company is supplying special equipment to drill this hard rock for blasting. To meet the growing requirements for mineral exploration and development, Joy has increased facilities in its contract drilling department, which is operating at– record levels. Demand is strong – for the new-continuous mining machines and the accompanying new extensible belt conveyors. The long term technical pattern is most encouraging on Joy and there is near term support close to the market. BLACK & DECKER (71) originally entered our recommended list at 39. On Thursday, the directors approved a recommendation to stockholders for a two-for-one split to be effective as of October 1st. Much higher levels are indicated on my technical work on this issue. Buy on minor price declines. Recent high was 73 1/2. EDMUND W. TABELL WALSTON & CO. – —

Walston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,h.do,d) OFFICES COAST TO COAST BY DIRECT PRIVATE WIRE SYSTEM EDMUND W. TABELL INSTITUTIONAL LETTER July 11, 1955 'I have found it increasingly difficuTt- in-my weeklyletter-to-discuss investment problems and individual securities that will be of equal inte- rest to the individual investor and to the institutional investor. Since my weekly letter was originally written with the viewpoint and problems of the individual in mind, it seems wiser to continue the weekly Tabell Letter along that line and, in addition, to publish another letter directed to the needs and requirements of the institutional investor. This new letter will not be published at regular stated intervals. It will be issued as the occasion warrants with probably two or three mailings each month. It is quite evident that the stock market is no longer on the bargain counter. On the Central Value basis (average ten-year earnings on the Dow- Jones industrial average capitalized at twice the yield on AAA bonds) the industrial average has a central or normal value of 380. At last week's high of over 470,the average was 23 overvalued. This is not a radical 'overvalua- tion as compared to the 1927-1929 period, but is the highest over-valuation we have had since the 1937-1940 period. Increase in earnings will undoubted- ly carry the central value higher in 1956, but this may be offset by higher bond Undoubtedly, central or normal value will be around the 600 level or higher in the 1958-1960 period, but present price levels are more than adequately discounting this probability at the present moment. – From a technical viewpoint,the picture is not entirely clear but cer- tainly indicates a -cautionary attitude is necessary. Despite the spirited advance in the Dow-Jones industrial average, the breadth-of-the-market action is not encouraging. Both the 10-week and 25-week indices of volume and ad- vances and declines (compiled by Market Action,Inc.)are acting in a manner somewhat similar to 1946. Both advancing volume and the number of advancing issues have been declining in the face of an advancing market average. On the 10-week indices this divergent action started in Januar'y. On the more impor- tant 25-week index,the downward trend started on April 22nd.Another unfavor- able factor isthe inability of the utility average to reach a new high since March and the relatively poor action of the rail average. All of these unfa- vorable factors could be reversed of course,but this would have to happen rather shortly.There have been no signs of increasing liquidation pressure (a rise in the declining volumeand a rise in number of declining issues)but unless the loss of momentum changes very soon,such downside pressure may occur. In the past,a rather important market decline has occurred from three to six months after the 25-week volume indices turned down. Three to six months from April 22nd would be July 22nd to October 22nd. From my point and figure charts,however,it is difficult to envision an immediate decline of sizeable proportions.No important distributional tops have been formed as yet.The immediate downside potentials are a maximum of 430 in the industrials (now 460),145 in the rails (now 158)and 60-59 in the utilities (now 64).Of course,the patterns could broaden and the market must be watched closely for that possibility.For example,a decline to 430 in the near future followed by an advance that failed to reach a new high and then a decline to below 430 would indicate a clear downtrend. Until that occurs .- and a top pattern is formed,there is no way of telling how much of an inter- mediate term correction could occur.In my opinion,and this is purely guesswor I doubt if any decline in the next year would carry much below the 380 level and I would not be surprised if the 400 level held. When we look at individual issues,there is even more divergence. While a few groups appear fairly vulnerable,there are an equal number of groups and issues that indicate substantially higher levels over the longer term. Thus, it would appear that any correction will take the form of a 1951-1953 type of decline rather than 1946-1949. In 1951-1953,quite a few groups de- clined frharply at the same time that others held steady or aven advanced. In 1946-1949,particularly in the early stages, the entire market declined. Present policy for institutional investment should be extremely con- servative. Some groups and issues should be definitely avoided. In this category I would include ,defense contract issues of all types such as air- crafts,machine tools, electric manufacturing,etc. For immediate purchase would concentrate on undervalued groups with a minimum of downside risk. In this category I would include retail stores, oils, drugs, natural gas, food chains, airlines, textiles,etc, . I 'RDMUMDTh,s memo,,,ndum II not to be construed as an oHer. or sollC!tailon 0 oHeri to buy or 11 HI ad.' Frlib,; mbuayedhauvpeonaniniIQntremrellst'tQn,n bseolmieve edor reallllabotfe tbhuet sneocturnde,ceelulmlrelltlyl.ocnoemdplheetree,inis nTohte gfUolrlerlglonitneegd 115 red,..b; uS as iii & Coof or any part .nformdtIOt'1 noenr lytherIeIo f, 11 Liltllfltended to foredos!! Independent ,nqulfY

Walston &- Co. MEt.iBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Swle'I..d) OFFICES COAST TO COAST BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER July 15; 1955 After reaching new high territory last week the industrial average de- clined to reach an intra-week low of 454.82 on Thursday. Action later in the week halted the decline and the market reached an intra-day high of 463.15 on Friday. The decline,however, has not yet been of sufficient proportions to correct the overbought condition indicated by our intermediate term sell signal of last week. No serious distributive tops have yet been formed and would continue to expect any decline, if it occurs, to be extremely mild and extremely selective for the time being. Would continue to pursue policy of taking profits on strength in trading accounts, however. … . .!'' —2' For the investor who is interested in sound, long-term growth in valuE rather than day-to-day price fluctuations, the CHEMICAL INDUSTRY FACTS recently published by the Manufacturing Chemist's Association should prove interesting reading. The book attempts to trace the past growth of the chemi- cal and drug industry, describe its present operation,and examine the poten- tial for growth which seems to lie ahead. It would seem that this growth po- tential should be the direct concern of the man with capital to put to work. For instance,as the book pOints out, sales of chemicals and allied products have increased nearly five-fold in the fifteen years from 1939 to 1954, from 4,340,000 to more than 20 million. It is also pointed out that this growth has been amply reflected in the growth in market value of chemi cal company stocks. In 1939, the New York Stock Exchange listed 89 chemical issues with a total market ,value of about 6.4 million. In 1954, 125 issue, were listed, having a total value of 24.2 millions. There are reasons for the above growth. The main one is that the chem'- cal industry, like other true growth industries, does not depend on outside markets; it creates its own markets. This is accomplished by constant re- search and development which renders existing products obsolete, by creatin new products and,therefore, new demand. The following facts are quoted from the book Out of a total of 8,000 chemicals listed in the 1952 Merck index, -anaiIthllritat1ve-cannog-o-f chemrcals -prodUced-commerClaTly, -2-;9-0Dara- not- appear in the 1940 ness is attributed edition ….Between to chemicals which 80 and 90 of all were not available farm chemical ten years ago. b9u0si- of today's prescriptions are for medicines An especially dynamic example is the that case did of not titan exist 15 ium. As l yea ate rs as ag1o9.3, Funk & v As late a as gn1a9l4l9' s, Dictionary the annual defined it production as in an element the United having States no was imonployrt2a5n t USE ton, S . . Today, production is more than 5300 tons per year and new uses are constant y being found for this metal in aircraft parts, alloys, chemical processing equipment and pigments. Furthermore, according to the book, this pattern can be expected to continue. An authoritative chemical industry source expects chemical sales to more than double by 1960 and to multiply five-fold by 1975. Specific branches of the industry are expected to grow even faster as indicated by the table below which gives estimated 1960 demand for various products. It will be noted that the table is adjusted for inflation by using 1950 dollar in both columns Sales 1952 in 1950 dollars- 1960 Est. Plastics Fibers Medi-cinals – All Industrial Chemicals 1.0 10.73 8.0 2.8 2.6 1.8- 16.4 The estimates outlined above are only a few of the figures in the Facts Book which should be of interest to investors. The entire picture – pa1.nted by the book is one which should reaffirm our faith in the growth -of the chemical industry in particular and the economy in general. Perusal of this book gives ample reason to consider chemical shares as a prudent means of participating in long-term growth of a dynamic industry. ANTHONY W.TABELL WALSTON & CO. The book can be obtained for 1.00 from the Manufacturing Chemists' Assoc.,Inc.,Cafritz Bldg., 1625 Eye Street,N.W., viashington, 6, D.C. I,

Walston &Co. MEMBERS NEW YORK STOCK eXCHANGE AND OTHER LEAOING STOCI( AND COMt.40DIT'I' EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,hedd) OFFICES COAST TO COAST CO'lNECTE'C BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER July 22, 1955 During the past half month, the market has moved back and forth over a wide trading area with pronounced strength in some individual issues ac- companied by drifting weakness in others. Breadth-of-the-market action continues negative if not unfavorable but, except for a relatively few groups, no wide distributional patterns have been formed. This leads to that while the market may be in. the .pr.ocess. of forming a . top, more time 'may be -needed-before the patfe-rn is completed. Whether or not the June-July highs of 471.15 in the Dow-Jones industrial average and 164.59 in the rails are bettered during the next month or two is problema- tical, but undoubtedly individual issues will reach new high territory. Continue to advocate taking profits on strength in capital gains accounts. There is no reason to disturb long term investment holdings. Quite a large number of issues in my recommended list reached new high territory during the past week. Among the leaders was LION OIL which reached 651/8 on news that a merger with MONSANTO CHEMICAL was voted by the Board of Directors of both companies. The basis of exchange will be 1 1/2 shares of new Monsanto common for each share of Lion Oil. Since both stocks are on my recommended list, retention is advised for longer term growth holders. Lion was first recommended at 35 and Monsanto at 31 (adjusted). ALLEGHENY LUDLUM STEEL was strong on a favorable earnings report. Second quarter earnings were 2.32 per common share which compares with 447 in the second quarter of 1954. Earnings for the first six months of 1955 now total 3.69, compared to 1..01 in 1954. Provision for accelerated amor- tization for the past six months was equal to 2.06 per common share. This stock was originally recommended in the 33-30 area and has almost doubled at the recent high of 59, but I still advise retention for an objective of 8p and WESTERN MARYLAND reac hed rater reacted to 45 -1;2. In -my hlg.h territory dll.ring the week. 48 lener of July-1st I suggested taKing 3/8 profits on strength on Western Maryland because court disapproval of the re- capitalization plan might indefinitely delay plans to satisfy accumulated dividend arrears on the first preferred. However, recentsttrength indicates the possibility of some new arrangement and if not already sold would re- tain for an upside objective of 50-55 followed by a long term 63. JOY MANUFhCTURING continues to show impressive market action and reached a neVi high at 55 7/8. It appears that earnings for the first nine months of the fiscal year ending September 30th might compare favorably with the 4.08 earned for the entire 1954 fiscal year and that 1955 fiscal year earnings might be upward of 5.50. Continue to advise retention of this stock. Both intermediate and longer term indications are favorable. PAN-AMERIC,N WORLD AIRWAYS continues to be my favorite stock in the airline group despite the fact that its price action has been exceedingly slow. However, both the earnings and technical background appear favorable and I believe this issue is behind the market. Ability to break out on the upside of the 22-19 area would be a very constructive technical development. The department store group continues to show very favorable relative strength action and most issues in the group indicate higher levels. ALLIED STORES and ASSOCIATED DRY GOODS are on my recommended list and are eligible for purchase. Other issues in the group,including GIMBEL BROS., also have favorable My recommended list is quite lengthy and it might be advisable to take profits on two issues that are acting rather sluggishly on the rela- tive strength graphs. Suggest switching out of ALLIS recommended ' at 45-48 and now 74, and F'ULLMAN,INC., recommended at 51 and now selling at 66. EDMUND W. TABELL WALSTON & CO.

—– Walston 5- Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Swamld I OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM EDMUND W. TABELL INSTITUTIONAL LETTER July 26, 1955 The following comment from a recent issue of Business Week aptly ex- presses the thoughts of a growing number of financial people. There is a recent trend for stock buyers to look to the froth, and not the fUfldamentals. That is, their purchases are guided by such things as stock dividends and splits, convertible bond offerings, acquisitions and mergers, employee stock purchase plans — and by rumors, however silly — rather than by the investment essentials of earnings and dividends, new products and inventions. Investor confidence is running high and earnings and dividends are in an advancing trend. The important question is whether or not the market is overdiscoounting these favorable trends. Despite the fact that common stock yields are low and price/earnings ratios are high, the evaluation of these factors is still below the ratios that prevailed at the market tops of 1936-1937 and 1945-1946. A recent study by Investographs showed that the DowJones industrial average could reach a top of 573 if the same ratios prevailed today as did in the two past periods of market tops. The interesting study used eight different ratios and yields and was based on estimated earnings of 33 on the industrial average and a dividend payout of 21. The eight ratios used give objectives ranging from 491 to 618. The figure of 573 was an average of the eight. The technical behavior of the market also suggests that the prices of a great many securities are relatively high and also that the general market is gradually losing its upside momentum despite the fact that the averages and individual stocks are continuing to advance. However, a closer study reveals that an increasing number of issues are failing to continue their advance. All of this seems to indicate that the market may gradually be building a top pattern that may take a longer time period to complete and when completed it is possible that the averages may be at a somewhat higher level. What type of decline is probable after a distributional top is formed Will it be a sharp decline similar to 1946 in which almost every stock participated and in which the averages declined 25 Or will it be more like the 1951-1953 consolidation period when quite a large number of issues suffered sharp price declines wh1le the growth leaders held in narrow trading ranges for over two 'years The evidence at hand seems to favor the probability of a 1951-1953 type of correction. A great many growth issues appear in need of a consolidating period. I envision a trading area of roughly 500 to 400 in the industrial average over the next year or two with possibility of 40 of the individual issues declining while 40 rest and consolidate and possibly 20 advance against the general trend. If such a pattern develops there will, of course, be extreme selectivity. This is evident even today. The following groups, for example, appear high enough at the moment- Aluminum, Automobiles, Building Materials, Cement Copper, Glass, Paper, Rails, Rubber and Steel. While these groups appear high enough, they have not yet indicated a downtrend like Air-conditioning, Aircrar Manufacturers, Brass, Electrical Equipment, Electronics and some Machine Tool issues. The following groups appear to have a minimum of downside risk and a fair upside potential and appear suitable for purchase- Department Stores, Distillers, Drugs, Farm Equipment, Lead and Zinc, Natural Gas, Textiles and Tobacco, and other miscellaneous issues. The following issue appears attractive. Price Dividend Yield 1955 Range KROGER COMPANY 42 2.00 4.7 50 -39 1/4 The company is the third largest grocery chain. Dividends have been 'paid since 1902. Earnings have declined because of reduced profits incuffee operations. Acquisitions and accelerated opening of new stores should produce more favorable earnings comparison. The stock is down from a 1954 high of 52 3/4. Technically, there is strong support at the 40-38 level. The stock should be bought on minor price declines. At 40, the yield would be 5. EDMUND W.TABELL WALSTON & CO. Thh memorandum is not to be construed ,as an offer or sollcilatlon 0f offetl to buy or se II any 't U!CUri lei From timedtob times Ws aaldomnat&terCooj otnr foarnmy ahpaorntnoernlythreIIofI,i may have an Interut in lome or all of the sec uri lies menhoned herein The foreqOlng material h,1!U betn t 10 foreclose Independent Inquiry baled upon Information believed reliable but not necenarily complete, IS not guaranteed as accura e or Ina. an II n I 1,1 t. -.-