Walston &Co. Inc t.4EMBE-RS NEw YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO Sw,,,.d.,d I OFHCES COAST TO COAST BY PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER March 2, 1956 President Eisenhower's decision was followed by a sharp increase in volume and heavy profit-taking by short term traders with the result that the averages were unable to decisively penetrate the overhead resistance around 490 in the Dow-Jones industrial average and 165-168 in the rails. Ability to penetrate the heavy overhead resistance would be a favorable technical development and would indicate the probability of a further advance to the 525-530 level. The upside potential on the rail average is not quite as clear. As mentioned many times before in this letter, I consider the action of individual issues of muchmore importance thanthanQf the- averages There'are a considera1ile -number orl13sues- snowirig reasonaole price action regardless of the averages. In checking over my recommended list, I find that nine of the thirty- six issues all have about the same characteristics of (1) an above average yield when quality is considered, (2) defensive patterns with a seemingly relatively small downside potential,and (3), attractive long term apprecia- tion prospects. I have therefore decidedw separate them from the remainder of the list and review them separately as Income and Long Term Appreciation recommendations. The nine are- Approx. Indicated Price Dividend Yield Allied Stores American Can American Chain Associated Dry Goods Coca Cola Hall Printing Raybestos-Manhattan United Fruit Western Auto Supply 41 32 131 22 55 54 33 3.00 2.00 2.50 1.80 5.00 1.40 3.40 3.00 1.60 5.7 4.3 6.1 5.6 3.8 6.4 6.2 5.5 4.8 lL . for purcohase at .preseQt . —– The balance of my recommended list, which will be named the Long Term Capital Appreciation list, will be reviewed in next week's letter. In the meantime, I am adding three issues reviewed below; namely, BUTLER BROS. (22 3,4) MASONITE CORP.( 41) and WESTINGHOUSE AIR BRAKE (32 5/8). These last two will be reviewed in subsequent bulletins together with CHICAGO CORP.( 24 3/4) and FOOD MACHINERY ( 58 1/4)which were added during the January decline. At this time, I am also eliminating Celanese Corp.(20 1/8).It has been showing below average price action and should be switched into recommended issues. BUTLER BROS. appears to be an interesting vehicle for longer term capital appreciation. Most of the company's real estate holdings were recently spun off as Canal-Randolph Corporation which is now selling at around 6. New management is in control of Butler Bros. and, if present contemplated plans work out, over the next several months the company should have cash of about 19-20 a share plus an earning power of 2.00 to 2.50 from the Ben Franklin Stores division and other smaller units. Present dividend rate is 35/ quarterly so the stock offers a yield of 6.1. Eventually, management expects to invest the expected 19-20 a share of cash in a manner which should .wQrk out to the stockholders. stock appears an interesting price speculation over a period pf time. The technical pattern, while somewhat distorted by the recent spin-off of Canal-Randolph Corp., shows the potential of a sizeable per- pentage advance. EDMUND W. TABELL WALSTON & CO. INC

Walston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISwHml ..d) OfFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM EDMUND W. TABELL INSTITUTIONAL LETTER March 5, 1956 The major cause of near-term stock market uncertainty has now been re- by President Eisenhower's decision to seek re-election and market ana- lysis can now return to the more basic elements of earnings, dividends and money rates in appraising the future outlook for security prices. This does not imply that all chance of a change in the high investor confidence pre- vailing today has been removed. The charges and counter charges of a poli- tical campaign and the still uneasy foreign situation are still with us, but none of these elements seem to have the potential of lowering investor con- fidence that a refusal to run for re-election by the President would have had. The factor of investor confidence has been possibly the most important element in the present general level of stock prices. Our oft quoted Central Value Line of Ben Graham now stands at about 410 in the Dow-Jones industrial average. At the present actual level of around 490, the market is at maximum valuation of 20 above normal allowed for in a period of high investor confi- dence. A further sharp rise in the industrial average would place the market at a rather high level in relation to this historical indicator despite the fact that Central Value is slowly rising and should reach the 500 level by 1959 even if the earnings on the industrial average just remain more or less stationary over the next four years. Obviously, this is an extremely conser- vative earnings projection. It is expected that earnings should increase substantially over the next four years. – Consensus of opinion on the business outlook for 1956 appears to envi- sage an average level for the entire year of around 140 in the F.R.B. Index of Industrial Production, as compared with 144 at the latest reading. Of course, it is expected that the index will move above and below the average at various times of the year, but the entire 1956 picture should not show much change from that now prevailing. This would also seem to indicate not change in the 36.50 earnings on the industrial average estimated for 1955. Dividends may increase somewhat, however, as the 1955 payout rate a bit below average. If the business and earnings pattern works out as an- ticipated, it would seem that the industrial average has little reason to very far in either direction, provided investor confidence remains close to the present high level. The technical pattern appears to bear out the above conclusion.Since the early part of 1955, the volume on the New York Stock Exchange on a 25- week moving total basis has shown a slow but steady decline. This decline in total volume has been brought about almost entirely by a decrease in up- side volume. This action implies that the investor has become increaSingly cautious as the market advanced and his buying interest has declined. As a result, there has been extremely diverse market action with just as many issues declining as advancing and with a smaller number of individual issues reaching new highs despite a rise in the averages. This same pat- tern prevailed in both 1946 and in 1951-1953. The basic difference between the two patterns was that in 1946 the downside volume started to increase ffter a few months and finally reached new high territory. This did not rappen inthe 1951-1953 marketj'buying interest waned but selling pressure rever reached new highs. The thing has happened so far in the present which leads to the conclUSion that the market may follow the 1951 1953 pattern of a long consolidating phase with diverse action by indivi- issues. This phase could last for six months or a year longer and be followed by a broad extension of the advance. As I outlined in my 1956 forecast, it is probable that the industrial will again contact the uptrend line connecting the July high of the September high of 489.94. This uptrend line will be around 525-535 level during the month of March. When this is reached it is possible that the market will have reached its high for quite some time. This high should be followed by a broad trading range between approximately 530 and 450 in preparation for the next long term advancing phase. EDMUND W. TABELL WALSTON & CO.INC. Th memorandum is not 10 be construed as an offer or , soliCitation 'ff 0 0 et' to b uy or se II 'fly SteUf. t !fll From medtobliImae Ws aaldomnat&terCooi oInrfoarmnyollptlolnrlnoenr lythtrIetofIS, bet ,m!lY have 'In mterest In some or at' of the seCUrities mentioned herem The foregOing maler,,1 hH to foredole .ndependent mqulry based upon Information behe … ed retl1bte but not neteUoIInty complete, IS not gU1ranteed 0111 accuroll e or Ina, an n

.. r, Walst.on 8- Co. Inc MEMBERS NEw YORK STOCK EXCHA.NGE ANO OTHER lEADING STOCK ANO COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISwa..,Id) OFFICES COAST TO COAST CO …. NECTEt BY OIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER March 9, 1956 With investor confidence at least temporarily restored by the Presi- dent's decision to run for a second term the market, as measured by the Dow-Jones Industrials broke into new high territory, reaching 499.09 on Friday. indicated in last week's letter, the ability to penetrate the overhead indicates the possibility of a further rise to the 525-530 area. i.s this lettl' has repeatedly emphasized, however, it is pointless to talk about the averages. The market will continue to be dominated by th action of individual stocks and groups. It is entirely possible to visual- ize certain stocks doing little or nothing while the averages move ahead and other stocks acting strong while the market, as measured by the aver- ages, declines. As an example of this type of action, it is only necessary to look at the action of the market since February 29th, the day of the President' announcement. In this period, th the averages up about 16.00, General Motors has been unable to gain a point while Dresser Industries, to draw an example from our recommended list, closed today at 62 1/2 versus a February 29th close of 56 5/8. Repeated below is my recommended list, showing technical objectives and support levels for each issue. These issues would be eligible for pur- chase at or around the support levels mentioned, regardless of the action of the market. ;'.s mentioned in last week's letter, the primary objectivE of issues in this list will be long-term capital appreciation. My income- .defensive list was reviewed in last week's letter – Present Price Price Recom. Yield i.dvice Alleghany Corp. Allegheny Ludlum hmer.Potash B 9 35 116 Barber Oil 61 Black & Decker 39 Butler Bros. 24 Calgary & Edmonton 28 Chain Belt 65 Chicago Corp. 25 Cities &ervice 62 Co l g a t e – F a l m . 60 Cornell Dubilier 40 Cutler-Hammer 89 Dow Ohemical 68 Dresser Ind. 62 Eagle Picher 42 Food Machinery 62 Gen'l Rwy.Signal, 71 Hewitt-Robins Joy Mfg. 43 42 Masonite 40 Monsanto Chern. 48 Mont.Dakota Util. 27 Pacific Petrol. 16 Pan ..c.mer. vi orld 20 Simmons Co. 50 Sinclair Oil 62 Westinghouse Yale & Towne B 33 69 Magma Copper 131 3 3/4 16-15 40 59 19 23 16 30-35 24 38 6c 21-22 57 38-40 33 22 51 59 25-30 23 41 31 26 11 – 11-13 36 46 33 45 75 4.6 2.2 4.1 2.6 5.8 0.4 4.6 4.0 3.9 5.0 5.3 4.C 1.5 4.05 4.3 3.2 4.2 4.7 4.4 4.3 2.1 3-.7 4.0 6.0 4.8 3.6 4.3 Objective 12-17.Support 8-7. Objective r5.Support at Object.120-15C.Support 105-10C. Object.80-115.Support 6c-59. at 32-30. Hold for long-term growth. Buy for long term speculation. Object.78.0upport at 56-54. Object. 44. Support 23-20. Object.81.Support at 58-56. Object.10C.Support at 56-54. Object.54.Support at 36-34. Object.120-140.Support at 80-70. Hold for growth.Support 60-50. Object.85.Support at 54-50- at 38-37 Object.76-87.Support 55-53. Object.14o-150.Support 65-62. Object.85.Support at 39-37. Object.75.Support at 38-36. Objective 86.Support 39-37. Hold for growth.Support 42-40. Object.45-60.Support at 25-24. Buy as long term speculation. Object.27-45.Support at 19-17. at 49-47. Object.65-89.Support at 58-56. Objective 45.Support 29-27 Object.105.Support at 67-65. Object.200.Support 115-11e. r.I'JT/amb EDMUND 1,/. TJ,BELL 1'I;,LS1'ON & CO.INC. Th'… ma.rket letter 1 not. and no Clteum'lt.ances ' to be- eonatrued as, aD offer to or …ohcltatlon to buy -ny to herem The Inf….rmallon- COT herein 1.. not Ituarant.eed as to aecurary or ernnplet.enem and the (Ilrnist'llnlt thereof 15 not. and under no ClI'cumstanee!l 19 to &s. a repreentatlOn by Wal'\t,un & ('0. Inr. AU eltpre!l!llOn!'l of OtHnian are to ehanae Wlthout Wal.Jton A Co., Inc, or any QfflCer, Dlreetl)r or StDekholder thereof mka,. hnve fln IntRre't In the mentioned herem This mullet letter is intended …nd presented merely M lleneraI, In(ormal commentary on day to day JN,r news Ilnd nutl. a analYSIS. AddttJo1'l.al InIormatlOn With rnpeet to referred to herein WlII be !urnlshed upon request. ' —- ——- ——-

'f'J'''I'.'I!''''JP!,I7-' ''''''''''''!I!!I'lDp' IIJ! '!lnl'11 !!!lI!'W'I.,I, .,r, 11 m n'I IP,, -'I!nml!' 'flll'!!'!1 ' ,1111 1'1'111 '!lrr,,'I' 9 '., ./ ,- Walston &Co. – – – – I n c NEw lORI( STOCI( EXCHANGE ANO OTHER LEADING STOCI( AND COMt.oIODITV EXCHANGES NEW YORK PHILACELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Switml.,dl OFFICES COAST TO COAST COt..lNECTEC BY DIRECT PRIVATE WIRE TABELL'S MARKET LEnER March 16, 1956 Mr,SONITE CORPORATION Statistics Current Price Current Dividend Current Yield' 42 1.70 4.05 the issues recently added to this letter's recommended list Vias Masonite Corp.This addition was made for a number of reasons. They are 1. A product for which a terrific growt Funded Debt 6,236,805 in demand is foreseen. Minority Int. 101,680 2. A future apparently unmarred by oper Common Stock 1,377,563 shs. ting and external difficulties which hav Earned per Sh.1955 5.08 Earned per 3.16 plagued the company in the past. 3. 11 very constructive technical patt n with a price potential of 80 over long t PJim. 3ales, 1955 56,600,000 Masonite is by far the largest producer Sales, 1954 47,800,000 hardboard in the U.S.,accounting for Mkt.Range 1956-53 – of total domestic production.This materi , 12 mos.ended Nov.30th which Masonite sells under a number of t demarks is a cellulose product made from VI d chips and other saw mill Vlaste by a proc s involving chemistry,heat and pressure.It can be produced in thicknesses ran ng from 1/10 of an inch to Six inches and in an almost unlimited variety of sh es and finishes. It can be sawed,nailed and finished exactly like wood. It is stronger than plywood and does not warp. It is eaSier to install than plast interior walls. It makes excellent weather resistant siding. And it is find g new uses each day in TV cabinets and other types of furniture. Masonite can also compete costwise with other products.Now,for the fib t time,it is cheaper than plywood,in addition to affording numerous structura advantages. Total U.S. plywood sales in 1956 probably exceeded 600 million Since Masonite's sales were only 60 million a gigantic potential market re mains to be tapped. I.n additional reason for buying Masonite can be found ill the improved operating picture which the company shows.Masonite earnings in prior years have been erratic and,in the period 1951-54,unimpressive. This record can be attributed to the former dependence on residential building which now accounts for only 50 of sales.Recent poor results stemmed from a number of operating problems which have since been solved or' eliminated.The first of these was the problem of the chronically unprofitable Ukiah, Calif. plant, which currently accounts for about 30 of output and was built as a supplement to the main plant at Laurel,Miss. In 1955, for the first time, this plant was placed on a profitable basis.A second deterrent to the compa ny's development was chronic labor difficulty, a factor which should cause no trouble over the nearer term at least.Thirdly,the hardboard market had, until recently, been plagued with below-cost dumping of Scandinavian surplus. This difficulty has also been rectified. Progress made in coping with these problems Vias reflected in the ings for the fiscal year ended August 31,1955; 4.42 per share vs. 2.67 a year earlier. Aided by quarter results of 1.40 against 797 in 1954, for the 12 months ended November 30, rose to 5.08. Since best results are usually shown in the second half, it would not be unreasonable to expect earnings in the 5.50 -6.00 range for the fiscal year ending August, 1956. Dividends, now at 307 quarterly will undoubtedly be supplemented by another extra, and may be as high as 2.00. Assuredly, the future for Masonite appears bright. This is reflected in the technical pattern. The stock Since 1952 has been building up a large head-and-shoulders base in the 17-33 range. The upside penetration of this base indicates a long term 80. Good support is encountered at 39-36, and any weakness into this area should be used to make purchases for long-term capital gain. ANTHCKY W. TABELL \,iALSTON & CO.INC. Tnt.. market letter I not and under no 115 to be … an offft to Hif or a aoilCltatlon to buy any Heurltte5 referred to herem The Informat'on contelneol hereIn 15 not R'u.art.nt.eed u to accuracy or and the thereof 13 not. and under no eircun'Ultanee 1!1 to Me.onstrued &.. a representatiOn by Wal..ton Co. Inc. All UpreslilOn! or opinIon are aub)ect, to ehanee without Walston II Co… Inc. or any OftlCer. Director or Stoekholtler there-of. may have an tntere-t In the ment,oned het'em ThIll market letter b Intended and presented merely U a general, Informal commentary on day to day market new'\ nnd not a complete ,nalpl! !ntonnauoD With respect to any ,unties Will M turnl.'!!hed upon request. WN 311t

-W—a–l-s-tloncn–&—C–o-. MEM8ERS NEw tORK STOCK EXCHANGE AND OTHER LEADING STOCK AND' COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISw ..d) OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM PliU,1;j 13, J 9196 telephones from Florida as follows After reaching new intra-day highs of 514.69 and 170.66 earlier in the week,both the Dow- Jones industrials and rails underwent a technical correction that brought the averages back to 505.85 and 168.25. Today's strength brought both aver- ages to highs at 515.15 and 173.36. I still expect the industrials to reach about the 530 level and the rails about 182 before the phase of the advance is completed. There is strong downside support at 490 in the industrials and at 165-162 in the rails that should halt any near term de- cline. However, there are some technical signals that indicate that further strength to the levels mentioned above mitments. Our technical indicator gave should a sell be used to lighten trading co signal during the past week b 1- , in technical patterns like the present,there are usually two such signals b fore the market tops out. The second sell signal could be at a higher level As usual,individual issues will act entirely independent of the general mar t.lI WESTINGHOUSE AIR BRAKE COMPANY Current Price Current Dividend Current Yield Funded Debt Common Stock 32 1.20 3.8 35,000,000 4,141,633 shs. Very often favorable investment oppo tunities may be fOI-'nd in companies t p, t are diversifying and expanding into rc profitable fields of operation. Vlestl, g- house Air Brake, recently added to recommended list, may be an excellen Net per Share1955 2.02 Net per Share-1954 0.85 Sales1955 172,502,277 example of this type of operation. Westinghouse Air Brake has a long re rd as a supplier of rail equipment with n unbroken dividend record going back Mkt .Range-1956-55 33 1'8 – 25 1/8 years. Since 1951, an aggressive sal minded management has made a number Excluding non-recurring items. astute acquisitions in other lines, complishing this with no dilution of common equity. ks a result, of antic pated sales of 200 million for 1956, only 40 will be in the rail equipmerr field. Of this, approximately, one-third will comprise sales of the wholly- owned subsidiary, Union Switch & Signal, producer of centralized traffic co trol equipment and rail signalling devices repeatedly described by this let r with reference to General Railway Signal. These two companies divide the ra' signal equipm&nt field. The non-rail business of Westinghouse covers a wide variety of fields many with assured growth potentials. These include road building equipment, electronics,oil well drilling, mining and nuclear reactor construction. The fields are frerved through a number of acquired divisions. They incllde, Le Tourneau-Westinghouse, producer of earth-moving equipment for constructiJl and road buildingj Le Roi Division, maker of portable compressors and tic tools, Melpar, Inc., producing a variety of important military electron' – devicesj Cleveland Rock-Drill Division,serving the construction and mining il dustriesj and the George F. Failing Co., producers of oil and water well dr' – ling equipment. vlestinghouse has also established an Atomic Energy group rying on research and development in the field of atomic reactors. Earnings from these divisions are just be5inning to be evident. Excluj- ing non-recurring profit,1954 results hit a ten-year low at 851 per share, r,- flecting heavy initial expense of some of the newly acquired divisions and e low rate of rail equipment orders. 1955 results improved to 2.02,but these must be examined more closely to a true idea of the company1s currer earning capacity.During the last quarter Vlestinghouse operated at a sales vp – ume of better than 50 million and earned 821 per share. Profit margin for t. e quarter also improved sharply. With order backlogs in many of the divisions at new' highs,and with the air brake bUfriness bolstered by 1955 rail earnings 1956 should show earnings in the 3.00-3.50 range,perhaps even better if margins can be improved during the latter quarters. Dividends may well be liberalized as these earnings materialize. Supporting this excellent fundamental picture is an excellent pattern with an upside indication of at least 45 followed by possibTe levels.The stock would appear to be eligible for purchase in the 30-27 where there is excellent support. ANTHONY 1'1. TABELL contained h by Walltun e.Irierin(). not pUAranteel as to aceuracy or In.. All exprr.!.uons or opinion are and the !urnJ.Shing thel'eof La not, and under no Clreumlltanees III tll beeon!ltrued as, a reprl!!SentatJon to ehanlre without notlee Walaton. Co.. Inc. or any Officer, DlreetGr or Stockholder thereof, may have an mtere..t In the mentIOned heTeln TIllS market letter bI Ultended and merely u a I!ennal. mrormal on ,jay to day market new.'! and nc)t a .. a Addlb()nal InformatlOn with respect to any Jecuntle!l referred to herein WlJJ furnished upon request Vr N 3'Jl

rl W—-a–l-s-tIoncn–&—-C–o-. MEMBERS NEw rORK STOCK EXCHANGE AND OTHER LEADING STOCK AND' COMMODITV EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw;t,Id) OFFICES COAST TO COAST COfNECTf; BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET LEnER March 29, 1956 Among the leading stocks in the market rise which began last January have been the Oils, with leading equities having posted gains up to 20 from 1956 lows. This poses a number of questions for the investor committed to oil securities. What has caused this drastically improved market action Can it be expected to continue And are oil stocks still good buys at or arcund current levels The cause of the rise is not overly difficult to determine. Oil 'has, since its inceptJon, been a growth industry. Indeed, accordinr to Chase lianha ttan Bank economists, -,- US. oil-consump t'fon, has', over/the – 23 grown at an annual rate of 5.8. Free foreign demand has recently grown at the even more astounding rate of 11 annually and the 1954-55 increase was even more startling with U.S. consumption posting close to an 8 increase. Percentage growth in consumption may not be so striking in 1956, but most economists expect the long term growth trend to continue. The recent rise' in oil stock prices has been based then, at least to some extent on fun- damentals. As to the probable continuance of the recent rise, most oils have, during recent months, built up conSiderable accumulation patterns which, in most cases, appear to indicate higher levels. In many stocks good tech- nical support is found just below present levels. While, in certain cases, near term correction or consolidation appears necessary, weakness could profitably be used to add to commitments. It would seem, therefore, that profitable opportunities can still be found in some oil securities, for the reasons mentioned above, plus a number of others. A general rise in the price of crude oil, considered highly probable by mfmy authorities, would add to potential earning power of the oil companies. hnother industry characteristic which points to , 'long term '-growth' 1s ctl1e increasing use—of p-e-tr-oc'hemicals. factors taken together tend to create a.favorable long term investment picture for the industry. What stocks, then, offer the best potential It is important for the investor to differentiate between the many different types of compa-nies within-the industry. To do this, two factors must be taken into consideration – (1) the extent of the company's production compared with its refining and marketing operations and (2) the location of its reserves. A short glance at price-earnings ratios will demonstrate the impor- tance of the production factor. J, company like Amerada, exclusively a producer, or Continental, which produces more oil than it refines, tends to sell at a much higher pie ratiO, (often more than 20 times) than a company heavily committed to refining and marketing. Among the for this tendency are the favorable tax treatment given to producing com- panies by means of the depletion allowance, the heavy fixed costs invol- ved in the building of huge refineries, and the heavy competition which obtains in field. These and other factors comtine to create a higher price-earnings ratio for most producers. second factor of importance is tne.location of reserves. Present middle-East reserves amount to just short barrels-er'f oil — or roughly three times present U.S. reserves. Furthermore, middle-East re- serves are in most cases easier of recovery and closer to foreign markets which are expanding at a swifter rate than U.S. markets. These favorable factors tend to offset the danger of losing middle-East reserves due to political development and explain the premium which has been commanded by the international oil companies, such as Standard Oil of New Jersey, Texas Company, etc. market letter IS not. anrlunder no rs to be conatrued … an otrt'l' to II or .. 6Ohdtabon to bUT any I&eeluitte8 rderl't.'d to hereIn The n'lformatlolt contame.i hereIn 19 not as to aeuracy or eomplet.enesa and the farnishmg is not. and under no eU'eum!!ltanee5 IS ttl .'\, a repregentatlon by Waltt,om Ii Co lnl' All CIprr.l'lLons of opinIon are to dlange- without nabet. WaJ..tnn Ii C(I.., Ine. or any Ortlcer, DIrector or St.oekhnlrler thereof. rna,. have an Int..re\t In the !lUtille'!!l mf!ntlOned herem Thl. market letter b lDunded and meTel,. aJ!I .. general, mformal commentary on day to day .market news and not a complete analYSIS Additional ,ntormauon 'lJIth rnped. to aD,. .untles referred to bll!reln WIll bot furnbhed upon request. —– – – – WN 301 -2- If the above-mentioned considerations are taken into account, suitfrble purchases of all types may be found; producers, integrated companies, refiners, domestic and international oils. Reviewed below are a few oil equities which should commend themselves to the investor, with varying appreciation potentialities. RICHFIELD OIL (80 ), which would seem to be worth close to its present price based on indicated earning power alone, appears to have in- terestrng speculative potential due to exploratory work being done in the middle-East. -Together with CITIES SERVICE (68 ), Richfield has taken a 30,000 square-mile concession in the Province of Dhofar. Joint ventures with Cities ServicE; are -815'0 1reing- under'l5ake-rl varying interests are held in a large Egyptian concession. It is thus highly probable that future developments may uncover reserves of major- importance to while defensive value is provided by good cur- rent earnings,-an 7.75 for 1956. —.,——' The long-term technical projection on the is 150 with an in- termediate term 110. There is good support at 75-70. Cities Service, which first entered our recommended list at 38, wll, of course, also be in a position to benefit from any possible joint concession discoveries. Objective from a technical point of view is 85. ATLANTIC REFINING (41 ) and SINCLAIR OIL (65 ) are two companies- with roughly analogous situations. Both appear cheap in relation to earn- ings and to other oils, ostensibly because of weak reserve pictures and- heavy marketing competition. Both these companies are embarking on for- ward-looking programs to improve the marketing picture and increase oil reserves. Indicative of this is Atlantic's recent purchase of the assets- of Houston Oil. Since this purchase is being financed by outside institu- tions with repayment as the oil is taken out of the ground, Atlantic is – ac q-ulrlng -large future tp sive action of this type can be expected to improve the operating picture on both Atlantic and Sinclair. Atlantic has held in the 40-35 range for over a year with the upside penetration indicating a possible 60. There is good support just under cur-rent levels. Long term indication on Sincla-ir is 89 with support at 60-58. AMERADA PETROLEUM (119) has long enjoyed a premier record among oil producers, due principally to its spectacular discoveries in the WillistonBasin and in Sturgeon Lake in Canada. Due to the fact that intangible dril- ling costs are charged directly against earnings instead of capitalized, earnings tend to be somewhat understated and are therefore capitalized at a high ratio. Based on the record and on earnings improvement foreseen,the shares still appear to be fairly valued. Long term indication is 150- 160 with possible higher levels as pattern broadens. Support at 110. CHICAGO CORP. (25 ) has an excellent technical pattern with an ob- jective of 44. There is support just under the current market. Chicago- is a producer on balance with an excellent reserve picture and good ex- ploration potentialities.Thelarger part natural- – gas and ,the company will benefit from growth in this field also. 1956 should approach 2.25 with cash flow double this figure. NOTE Edmund W. Tabell is still on vacation in Florida. He will return to New York on Monday, April 9th. ANTHONY W. TABELL WALSTON & CO.INC.