'I I i J;;L! ' Walston &- Co. – – – – – I n c . – – Members New York Stock EXchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE Sw,,,.,,d I OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET LETTER 15, 1957 Further patience will be required,but the stock market is slowly grind- . ing out the pattern that I suggested over a year in my article publish- ed in the Commercal & Financial Chronicle dated December 29, 1955. To quote in part – Certainly, it seems highly improbable to expect in 1956, the same rate increase in activity that was witnessed in 1955 or to expect the s rate of advance in the stock market that was experienced in 1954 and r955. The rate of business increase in 1955 was two or three times the long-term- rate while the stock market has advanced almost 100 in 27 months. A conti- nuation of the present rate of-advance in the stock market would mean a pri level of about 1500 in the Dow-Jones Industrials by 1960 which seems a bit fantastic even to a confirmed bull like myself.Breadth-of-the- market action indicates that the market shows signs of waning upside momen- tum despite the fact that the averages are advancing to new highs. This div gence usually indicates either. a decline or a long consolidating period.The action of the various averages also tends toward a somewhat cautionary atti tude after the turn of the year. Actually, the market as a whole has made – little headway since July 1955 (high 490). A few stocks have had sharp ad- vances while the bulk of the market has moved sideways.All of the varied technical approaches confirm the fundamental findings that the bull market has reached a mature stage. If this turns out to be the case, the market will follow one of two possible correctionary patterns before the long-term advance is resumed. One possible-pattern could be a sharp 1946- type of 25 or so followed by a re-accumulation area. This could carry the industrial average back to the 400-360 area. The other possible pattern could be a 1951-1953 type of consolidation with the average hold- ing in a broad trading area while individuaJ issues and groups adjust piece meal with some groups declining while at the same time other issues and groups are advancing but eventually the whole market correcting any tempo- rary overvaluations. A study of the graphs of over 1,200 individual issues suggests that the 1951-1953 pattern is the more probable one. At the present moment,many individual issues indicate the possibility that they are forming distribu- tional tops that may need some more time to complete. In most instances, these issues are ones which have advanced-very sharply in the last year or two and are selling at very high'price-to-earnings ratios and extremely low yields that are based on possible future earnings and d'.vidends rather than on the present. They could be quite vulnerable in the event of a change in the high investor confidence prevailing today. On the other hand,there are also quite a few issues today that have been more or less neglected marketwise and are still selling at fairly rea- sonable price-to-earnings ratios. Issues of this type would suffer little marketwise in the event of a general decline and might even move against the trend if fundamentals favored their group. The broad economic pattern and the more intelligent approach to invest- ing that has prevailed in recent years, favors a possible piecemeal read- justment over a period of a year or so rather than a sharp decline. – I believe the 1956 range will be 520 high and 430-420 low as against a pre- sent price level of 485. 1956 should be a year of extreme selectivity. In the of present conditions, it is hardly necessary to change the above fourteen-months-old forecast except in timing. The range in the Dow- Jones Industrial since July 1955 has been 524.37 high,reached in – April 1956. The low was the Eisenhower heart attack low of 433.19 in Octo- ber, 1955. The most recent low was 453.07 reached last month. . Friday's close was 474.28. This is a relatively narrow twenty-month tradin range of 17. It compares with similar consolidating periods like the 18 trading area of-thirty-six months duration in 1946-1949 and the 18 trading range of twenty-eight months duration in 1951-1953. If the time element of the two previous consolidating periods is applied to the present market,the averages could continue to hold in roughly the 524-433 range until October 1957 or July 1958. ThiS, from a technical viewpoint, would be a very cons- tructive development. It would set up a long resting and re-accumulation area with the possibility of an upside breakout to a new and higher price plateau. usThll, market letter IS not and under no circumstance., IS to he construed as, an offer to sell or a solicitatIOn to buy any referred to herem. The mformatlOn herem IS not to accuracy or cumpletenes& and the furm'hlnl thereof ll not, and under nu Clrcumstames IS to be as, a representatIOn hy Wal;tun & Co, Inc All expressiuns of opmlOn are subJect to change Without notLce Walston & Co. Inc., or any OfflCer, DLtcctor ur Stucl..holJer thereof, may an mterest m the seeuLltLe. mentIoned herem ThIs market letter 10. mtended dnd presented merel a general, mformdl commentary on ddY to day market news .md nut as a complete anahsls. AddltlOnal mformatlOn WIth respect to any seeulltles referred to herem WIll be furmo.hed upon request 'VN 301 e – — .- -2- It is entirely possible that, during this period, the market might work moderately lower to further correct the segments of the market that advanced too rapidly over the past twenty months. However, most of the vulnerable situations have been pretty thoroughly corrected as witness the 20-30 decline in various blue chip growth issues. Any further weakness, when, as and if itoccurs, should not be disturbing to the long term investor. It should be welcomed as presenting an excellent buying opportunity because the fundamental economic pattern is extremely favorable over the longer term. As I have continually stated, individual issues will continue to outpace the general market. Reprinted below is my complete recommended list. These issues have been discussed in previous letters. They are recommended for substantial long term capital appreciation and not necessarily for near-term price movement. Present Price Allegheny Ludlum 62 Amerada Petrol. 112 Amer.Cyanamid 76 Bell & Howell 38 Bristol-Myers 47 Calgary & Edmonton 27 Carborundum Corp 43 Carrier Corp. 58 Champlin Oil 26 Columbian Carbon 45 Copperweld Steel Crucible Steel 30 Eagle Picher 45 -Eastern Airlines 40 Fansteel Metal. 48 Food Machinery 58 Dynamics 60 'General Electric 56 I General Rwy Signal 30 Gulf 120 Hewitt-Robins 40 Intern11 Nickel 105 Petrol. 49 Johns Manville 48 Joy Mfg. 64 Kansas City South. 68 Kennecott eopper 109 Magma Copper 76 Martin, Glenn L. 41 Masonite 30 MN aitn1e1r aDl si s&t iCl lhee mr s. 27 28 North.Natural Gas 55 Northern Pacific 42 Petroleums 20 Pan-American World 16 Panhandle East Pipe 51 Penn Dixie Cement 36 Pittston Company 64 Rayonier 29 Richfield Oil 66 Royal McBee 33 Sperry Rand 21 Sunray Mid-Cont. 24 Sylvania Elec. 41 Tennessee Corp. 52 Timken Roller Bear. 92 United Airlines 31 U.S. Steel 59 WYaelsete&rnToPwanceific 56 29 Price Recom. 16 103 67 42 37-35 16 60-58 24 50 31 30-29 24r2 45-44 51 50-48 56 19 107 25 90 34 50 23 85-83 130 75 38 46 32-30 48–47 40-39 11 12 46 39-37 45 4038 75-74 31 25-24 25 49 50 96 40-38 65 73 18 Yield 3.2 1.7 3.9 2.6 3.4 0.4 3.7 4.1 3.8 5.3 6.2 5.3 4.9 2.5 2.1 3.4 3.3 3.6 4.5 2.1 5.0 3.5 2.9 4.7 4.4 5.9 6.4 4.0 5.7 0.7 3.6 4.7 4.5 5.0 3.5 3.3 1.9 4.8 5.3 4.2 3.8 5.0 4.9 4.7 15..46 5.1 5.3 5.2 Comment Buy-Holdfor substantial appreciation. Buy-Hold.Long term potential 180. attractive issue in chem.group. Buy-Hold for substantial appreciation. Recently made new high.Continue hold. Hold for objective of 35-38. Continued retention is advised. Excellent vehicle for long term growth. Buy-Hold.Intermediate objective 37. Price action slow.Hold for income. Excellent for both yield & cap.gain. for substantial appreciation. Buy-Hold .Selling at -only 8 times' e-rnings Price action slow.Patience required. Continued retention is advised. Excellent lit growth.Buy on weakness. Hold for intermediate object.of 70 Hold for long term growth. Buy-Hold.Excellent lit pattern. Continue to hold for long term gain. Buy-Hold for substantial appreciation. Continue to hold for long term Hold for intermediate objective of 60. Hold for income and appreciation. Hold for intermediate object.of 75-80. Price ation may be slow.Hold -for income. sharply.Near support.Good yield. Buy-Hold for substantial lit appreciaticn Near support. Lit pattern very strong. Underpriced at present levels. Lit pattern gaod.patience required. Hold for long-term growth. Buy-Hold.Very strong lit pattern. One of the better rail patterns. Hold for intermediate object.of 25. Price action slow.Patience required. Buy-Hold for very stl' on g l!t pattern. Continue to hold for long term gain. Long term objective over 100. Price action slow.Patience required. Hold for income. Buy-Hold. Excellent l,ang term pattern. Price action slow. Patience required. Hold for long term gain. Buy-Hold.Near strong support level. Excellent long term growth pattern. Buy-Hold.Excellent long term pattern. Price action slow.Patience required. Continue to hold for long term gain. Has reacted sharply.Near support level. Near support level.Continue to hold. EDMUND W.TABELL vJALSTON & CO. INC.

r' J. 1' Wdlston &Co. Inc. Members New Y01'k Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Sw,ed.,dl OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM MARKET LEnER March 22, 1957 The tradipg area in which the stock market has held since 1955 is pe haps best illustrated by the price action of the new Standard & Poor's ind of 500 Common St … cks which is now issued on an hourly basis. This average composed of 425 industrial issues, 25 railroads and 50 utilities. The ind is based on more than 90 of the total market value of all common stocks listed on the New York Stock Exchange and, therefore, is the most complet I average available on an hourly and daily basis. The price range of this average for roughly the past fifteen months (since January 1st, 195n) has been 49.74 high (reached on August 2nd) and 42.39 low (reached .last rr.onth rn.February 12th). If we include the last twenty-one months range (from is-not muc-h-w1der ;''The41'1gh-was -tlTesame749. 7ir;-infd ' the low was 40.80 reached on October 11th, 1955 after the Eisenhower heart attack decline. Today's closing price on the Standard.& Poor's 500-Stock Index was 44.06. Perhaps a few more figures on the price ranges of the various compo- nents of the Standard & Poor's Index mig,.ht be interesting July 1955 July 1955 Jan'. 1, 1956 Today's to date high to date low to date low Close 425 Industrials 25 Rails 50 Utilities 53.28 37.57 33.93 43.04 28.93 3v.57 44.86 28.93 31.15 46.92 29.34 32.46 The earnings on these indices are also interesting. On the tasis of earnings for the twelve months ended October 31st (complete December 31st earnings are not yet have the following data 425 Industrials 25 Rails 50 Utilities iEarned 12 mos.Oct.31. 3.58 3.94 2.22 Price Today 4E.92 29.34 32.46 PiE Ratio 13.1 7.4 14.6 The dividends for 1956 and yields based , – – – , – Dividend-1956 -, 425 Industrials 25 Rails 50 Utilities 1.95 1.87 1.54 46.92 29.34 32.46 4 .4 6.4 4.9 These indices appear to be the most scientifically constructed of thE various stock averages. By using electronic equipment, an index of hourly fluctuations of 500 stocks comprising over 90 of the market value of all common stocks listed on the New York Stock Exchange is quickly compiled. Each stock is weighted for the number of shares outstanding and the index reflects the influence of each company represented' and makes it relatively simple to adjust for splits, stock dlvidends,etc. As the indices are close approximations of the actual average prtces of listed issues,they do away with the confusion in the minds of the public caused by the statement that the market is up or down eight pOints while a perusal of the list of indivi dual issue fluctuations on the same day shows a much lower rate of advance or decline. For the above reasons,this letter from now on will refer to the gener market in terms of the new Standard & Poor's indices.Hourly revisions of these indices are distributed on a nationwide basis on the American Stock Exchange,Commcdity News Service and Cotton'J.'icker York, the daily range is-published in-the N.Y.Times, N.Y.Herald-Tribune and Journal of Commerce in the morning and in the N.Y. World-Telegram in the afternoon. The range is also published in many out-of-town newspapers. It is my opinion that the S & P 500-Stock average will remain in the 21-month range of roughly 50-40 for 6 months to a year longer prior to an upside breakout to a higher price plateau. In the meantime,individual issues will continue to show above average action.In our list of Special Recommendations in our quarterly The Techni- cal Outlook (available at your nearest Walston office) we list 12 issues , (plus 1 in registration)that I believe are currently They are Allegheny Lud.Steel,Bristol-Myers,Carrier,Champlin Oil,Copperweld Steel,Eag Picher,Hewitt-Robins. Glenp Nat' Ga ,Sy'van1a and T;;lmkminnnRCl cOlltmm,fneletn lW(, IS ofTelMartip Northern n'l \'ccurllcy or to construed as, completeness and the faUnh'mshmtgo sell or n s to buy uny Flee Director or Stockholder thereof, may hy & Co, Inc All C'I(preSSlons of Opl111on nrc subJect to chnllge Wit hnnevwes nanndInnteorteasst Imi ctohmepaleectcut Ittes menAtidodnIetdIOhnearleminioTrmhinStlmOanrk…..eItthlertetsepreIcSt mtoteanny SCnCnlir I In1WtH' commentllry on dny to day market s)ted upon request WN 301 ,,

-W–a–lsIntocn.-&-Co..; Membe,'s New YOTk Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Swa,I.d) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER March 29, 1957 There was a better undertone in the past week's market with up- side volume tending increase slightly. Volume indications on our long term breadth-of-the-market gauges are slowly beginning to show improving action. It appears that the market is beginning to show de- finite signs of waning downside momentum. Many stocks that formerly had vulnerable patterns have suffered severe price declines over the past year and the number of issues that need further substantial cor- – -rectiM- is ainlin1Sfllng. dB'eTnotmean'ari- immediate-Droad all advance, but rather a further continuation of the broad trading area in which the general market has already held since July, 1955. Some stocks are still in need of further correction and others– need further time to consolidate. There are, however, a growing num- ber of issues that are beginning to break out on the upside of long trading areas. Issues of this type will show the best action over the next six months or year while the remainder of the market corrects and consolidates. HOUDAILLE INDUSTRIES, INC. Statistics Diversification has teen a Current Market Current Dividend Current Yield 18 1.00 5.6 popular policy in many companies over the past few years. Too often, however, corporate Funded Debt 12,954,000 diversification has been pushed too fast, coupled with a rise- 2.25 Cum.Pfd.Stk. 190,000 shs. in common stock prices far be- – – -C0mmon- S-tock- ,-337 -normal– expect-a-t-i-ons c of — Sales, 1956 75,423,565 Earned per Sh.-1956 2.02 earning power. Many times, however, a company can be found where a diversification program Mkt.Range 1957-53 18 3/4 – 12 has been carried forward on a sound, intelligent basis and plus 5 stock dividend. where the common stock is most moderately priced relative to potential earning power. Such a company, we believe, is Houdaille Industries, Inc. Houdaille started its corporate existence as a major supplier of a wide line of auto parts. As it became evident that this line lacked growth potential and was becoming increasingly unprofitable, a concentrated effort was made to do two things (1) to drop unprofitable lines, and (2) to expand to new fields where capital could be put to more profitable use. This program has been carried forward over the past few years and the results have been truly impressive. At current levels, however, the market price of the stock apparently fails t. reflect the changed complexion of the company. Most of this diversification has been carried on under the aegis of Mr.-RalpI1F. Peo and a capable young executive team.- Mr; Peo hadbeen president of Houdaille until 1946 when he left the company to form Frontier Industries, Inc. In 1955, Houdaille and Frontier were merged and Mr. Peo and his assistants returned to Houdaille, which later changed its name from Houdaille Hershey Corporation to the present title. Without going into th2 history of all the various acquisitions and mergers which made Houdaille what it is today, it to break the company's sales into three major fields. They are auto bumpers and bumper hangers, (2) construction materials and aggregates and (3) air- craft parts. Other divisions which do not fall within these three classi- fications have been added and while many of them have a significant growth potential, they do not now bulk large in , sales or earnings. i market letter IS not, and under no cIrcumstances is to be construed as, an offer to or a SOhcltntlOn to buy any referred to herein The mformation conuuned herem IS not guarnnt('cd us to accuracy or completeness and the (urm;hmv thereof l'l not, and under no circumstancc;'! /8 tobcconlltrucd as, II rCprCllcntntJO) hy Wnlston & Co. Inc All expressIOns of opinIOn are subject to change wLthout nobee W …lston & Co, Jnc, (lr OULcer, Director or Stockholder thereof, may have nn Interest In the securities mentIOned herein ThiS market letter 18 Intended and pre!.entcd merely as a general, Informal commentary on day to day marhet ,,,,news lind not as a complete analysLs AdditIOnal informatIOn wIth respect to any aecuntles referred to herem wilFbe furlllshcd upon request WN 301 – io -2- The most interesting field in which Houdaille is now engaged is the construction materials field. Few people realize either the profitability or growth potential of this field. In many cases, due to a depletion allowance and other favorable factors, a profit margin as high as 10 after taxes is obtaiLable on construction sales. The Federal road building program and the expanding highway network will entail a terrific increase in new road construction and in repairs to existing roads. Houdaille appears in an excellent position to participate in the above mentioned trends. Houdaille's construction materials division produces crushed stone, gravel, sand and concrete. These products are utilized mainly in road building, but are also used in the commercial and residential construction fields. The first construction materials company to become a part of Houdaille – was Bu-fGalo Crushed .s-t0ne .. Thre ,..mone com– panies in this field were acquired during 1956, including one company in upstate New York and two in northern New Jersey. Houdaille now has thirty- two construction materials operating units located mainly in upper New York state, northern New Jersey and eastern Pennsylvania. All of these units are in excellent condition to benefit from extensive turnpike repairs in the areas served. million has recently been put into expansion of this division with more slated to be spent. It is felt that ultimately the construction materials business will become by far the most important facet of Houdaille's operations from a profitability standpoint. The second major portion of Houdaille's business is the production of auto bumpers and bumper hangers. This is now the only auto equipment item which constitutes a major part of Houdaille's sales, and it has many qualities which make it superior to the average auto parts supply tion. Among these is the fact that bumpers 'ire constantly becoming larger and more complex units, thus allowing for full capacity production even when over-all aut0 production declines. It is felt that Houdaille will maintain its sh'l.re of this market over a period of time,and thatsales should grow at a faster rate than auto production due to the increasing size of bumpers. –'A third maJor product-nne in 1;118 HoudaHle pic-rure hydraulic components which the company sub-contracts for major aircraft producers. This line appears relatively attractive in view of an expanding defense program. In 1956, Houdaille earned 2.02 per common share, an increase from 1.79 in 1955. Profit margins increased substantially as unprofitable lines were eliminated, and net after taxes was up 11 with sales down 11. Subtracted from earnings were more than 800,000 in nonrecurring items in connection with the disposal of machinery and a change in depreciation practice. This amounted to 63f per share. 1956earnings, it will be noted, included results on a large part of the pro fitable construction business for only part of the year,since three com- were acquired during the period. On this basis, 1957 earnings should reach at least 2.50 per share on a greater number of shares outstanding and could well substantially exceed this figure. Thus, current prices mark the stock at only nine times 1956 earnings and 6-7 times anticipated 1957 earnings. Dividends will probably continue at 1.00 per share, affording a yield of 5 that may be supplemented by stock dividends. Over a period of time, earnings should continue to increase as a result of growth in the present construction division and aided by fur- ther acquisitions in this profitable field. — – From a technical point of view, the initial upside objective over the intermediate term is 33 with a much hgher objective over the longer term. Strong support is encountered at 16-15. The stock is as an excellent speculation on the ability of an astute management t9 substantially increase earnings over a period of time. EDMUND W. TABELL II AWTamb WALSTON & CO. INC. I ft /f !, i' . at.

II i Walston &- Co. Inc, Members New York Stock EXchange V/' NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Swih.d..d) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lmER April 5, 1957 The Standard & Poor's 500-Stock Index made a fractional upside gain f the week to close at 44.42 after reaching an intra-week high of 44.B3. Thi compares with the February low of 42.39 and the August, 1956 top of 49.74. There is considerable overhead supply Qetween 45 and 47, but near term tech nical action has been good and I would expect the index to move a bit furth into the overhead supply. My technical gauge gave a buy signal at 43.04 on February 13th. If the 500-Stock Index reaches 46-47 in the next two or three weeks, the technical gauge would most likely be in overbought terri- tory. range I continue to believe that f,orprobably six months. the Index will r-em-ain in the broad 50-40 This letter has constantly stressed the thought that the price action of individual issues can be entirely divorced from the price action of any stock market average. During the past several days, for nine of th issues in my recommended list reached new highs for the 1955-57 period and approximately the same number were just a bit below their former highs. The nine issues are ALLEGHENY LUDLUM STEEL, originally recommended at 16, reached new ter tory at 65 3/8.1 continue to like this issue for both the intermediate and longer term despite its-sharp advance in price. The growth outlook for stai less steel, steel alloys and titanium remains excellent. Continue to hold and add to holdings on any possible temporary dip to the 60-55 support leve BRISTOL-MYERS COMPANY entered our list in June, 1956 when the stock was selling in the 33-31 area. A new high at 49 was reached during the past week. The stock has a nearer term objective of 50-55 and a longer term pric objective of B5. There is downside support at 45-43. See letter of February Bth 1957 for most recent analysis. C0PPERvIELD STEEL was only recently added to my recommended list (see February 21,1957 letter) at a price level of 31. A new high at 34 1/4 was reached during the past week. At present prices, the stock yields close to 6 and sells at only about eight times 1956 earnings of 4.0B. This special ty steel-issue has -a poss1.ble ob-j'ectlve cof-44-48,- I GENERAL DYNAMICS was originally recommended in August, 1956 in the 50-48 area. A new high was reached during the past week at-63 l/B. The stocl has an intermediate term objective of 70 and support at 60-55. HOUDAILLE INDUSTRIES was recommended in last week's letter.(March ' 29th), The stock reached a new high this week at 18 5/B. Excellent manage- ment is engaged in a program of diversifying into numerous new fields in addition to the automobile accessory field. From a technical point of view, the stock has an intermediate term objective of 33 and support at 16. INTERNATIONAL PETROLEUM entered my recommended list in June, 1956 at 34. This issue, listed on the American Stock Exchange, has reached a high of 55. The long term objective is Bo, but the stock is close to its inter- mediate term objective of 56-60. NORTHERN NATURAL GAS recently reached a new high at 56 3/8. It ori- ginally was recommended at 47-4B in August, 1956. The nearer term objective on this issue is not clear but the longer term potential is 80. There is support at 54-52. PACIFIC PETROLEUM is listed on the American stock Exchange. It has been on my recommended list for a long time, being originally recommended at a price of 11 a little over two years ago in February, 1955. The stock has more than doubled in price at this week's high of 23 3/4. The interme- diate term objective-is 25-27 -the .'. ' ROYAL McBEE CORP. moved into new high territory recently at 37 3/8 after being rather dormant since my original recommendation at 31 in June, 1956. The stock-has a long term objective of 55-65 and an intermediate term objective of 43-46. There is now downside support at 34-33. Unfortunately, not all of the issues in my recommended list have showr the same good price action as the nine issues noted above. The three airlinE issues in my list (Eastern Airlines, Pan-American and United Airlines) have been particularly disappointing. I still have not lost faith in the exceller long term potentials for this group but, with a squeeze in profit margins anc an application for a fare increase before the C.A.B.the picture does not ap pear very promising for the near term. I still counsel retention of these 10Q,0 hf– hnl,Yo of- h, . . This market contained he lette rem r IS InS not, and under no circumstances ot J(unrantccd as to accuracy or c 19 to ompl he eten es s and the an to se!.or . a .tany referr,e! The Ulformahon thereof IS not, ariilli'rMirTNlCtrcwnstarilfl'il1n1tlV11LclO.nstrued as, a representatIOn by Walston & Co Inc All c(prl!!BiOnS of opinIOn are subJect to change Without notice Walston & Stockholder thereof, may an mtcrcst the sccurltles mentioned herein ThiS market letter IS Intended and presented meklA ' JOfotih l on day to day market ne…. s and not us a complete analysls AddltlOnal mformatlOJl With respcct to any secuntlcs referred td'iier WN 301 I

Walston &Co. Inc. Members New York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN 8ASLE ISw,\ml.nd) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER April 12, 1957 With volume of trading increasing, the general market made additional upside progress during the past week. Standard & Poorls 500-Stock Index, at Friday1s close of 45.04had recovered approximately 60 of the decline from the January 4th high of 46.66 to the February 12th low of 42.39. From here on, the going may be a bit tougher as there is considerable overhead supply in the 45-47 area. However, my intemediate term technical gauge, whi gave a buy signal on February 13th at 43.04, is still quite a distance away from entering overbought territory. ' This Index would have to reach the , 46t-47 area in the near future to become technically vulnerable. Would expect the advance- to carry sOmewhat-furtherr'-but- stFll-be;iieve– the-Inde'X– – – will remain within the of the 49.74-40.80 range in which it has held for the past twenty-two months. ' NORTHERN PACIFIC sold off sharply on the announcement of a U.S. Supreme Court decision concerning land grant righi-s of w'ay. Tfie Courtls ruling was confined only to the right of way – a 400-foot strip – and did not affect other land grants. I believe current weakness in Northern Pacific offers a buying opportunity for substantial long term appreciation. Earnings — record is better than in most roads and oil, gas and lumber provide additional growth potentials. TIMKEN ROLLER BEARING broke out on the upside of the 88-94 trading area in which it had been holding for the past two months and reached a new 1957 high at 101t. Both the intermediate term and long term potentials on this issue are extremely interesting from a capital appreciation viewpOint. Earnings could be around the 12 level for 1957. Continued retention of Timken is advised. FANSTEEL METALLURGICAL, another issue on our recommended list, reached new high territory at 57 3/8. This producer and refiner of rare metals, princi- pally tantalum and columbium, has excellent long term possibilities due to probable substantial growth in the use of these metals. Despite its low ypireiclde,atchteionisssuteHrs-tiinldl ilcoaotkess ahtitgrhaecrtilveveelasn-d.- a projection o.f — it-s- tec-hn-i-ca–l – CHAMPLIN OIL & REFINING continues to hover around the all-time high of This issue has a very constructive technical pattern with an ultimate price objective considerably above present levels. It is backed by some 26 a share of oil and gas reserves. With earnings in an uptrend and with an active exploration program, Champlin should continue to advance into new high territory. While most growth stocks are selling on a very low yield basis, there are still many other issues that have interesting long term pros- – pects and are available at prices to show an above average yield. This let- ter has a recommended list of issues of this type to which issues from our regular recommended list are occasionally transferred. I have called this list Income and Long Term Appreciation recommendations. All the twenty issues have about the same characteristics of (1) an above average yield- when quality is considered, (2) defensive patterns with a seemingly rela- tively small downside potential, and (3) attractive long term appreciation prospects although patience may be required over the intermediate term as no immediate move of importance is indicated. Price Yield Price Allied Stores – – American Can American Chain Associated Dry Goods Butler Bros. Coca-Cola Colgate Palmolive Columbian Carbon Cornell Dubilier Hall Printing 4'4 – – 44 51 3251 102 45 45 23 21 4.5 4.9 6.4 6.4 4.9 6.7 5.3 5.2 6.7 Kansas City S5utn- 70 Masonite 29 Montana Dakota Util. 25 Norfolk & Western 69 Raybestos-Manhattan 54 Rayonier 28 Richfield Oil 67 Simmons Co 46 United Fruit 47 Western Auto Supply 16 Transferred from recommended list for Capital Appreciation. Yield 7 45..90 5.4 6.2 5.0 5.2 6.7 6.3 6.3 – ThiS market letter IS not, and under no circumstances IS to be construed as, an 0ffer t 0 seII or a soI t scontamed herem 15 not !!,uarantccd as to accurD..cY or completeness and the IS nolh.f. any CI tOff to hereinas TahreepmrefsoernmtaattIiOonn or Stockholder thereof, may loy Walston & Co Inc All expreS9lOn; of opiniOn are subJect to change without notice a stan 4.oW.\Mc.tnry on day to day mnrket huvc fln Interest the &eeUTltlC'l mentIOned herem ThiS market letter IS mtended and presented ra In t WN 301 Ilew'l and not as a complete ano.lysls Additional mformation With respect to any SecUrltles referred to herein Will be furnished upon rcques –

If ,,1' . ,, NEW YORK Walston &Co. – – – – – – – – – I n c . – – Membe,.s New Yo,.k Stock Exchange PHILADELPHIA' LOS ANGELES SAN FRANCISCO BASLE (Swlhedd) OFFices COAST TO COAST CONNECTED BY DIRECT PR1VATE WIRE SYSTEM TABELL'S MARKET LEnER April 18,1957 The market continues to inch forward and has reached new high terri tory since the February low. The advance has been orderly and there are, as yet, no signs. of technical deterioration. My intermediate term techni- cal gauge, which signalled a buy on February 13th, has not yet entered over- bought territory and volume indications remain favorable. Individual iSSUES will dominate upside price action, but the overall pattern still indicates somewhat higher price levels over the near term. of the most common questions which is asked of the market a1llirup.s as follows XYZ- is down from 85 to 37 in the past Do-youthiiiR–the stoc\iS-rea-dy'to bUYyetY–Such aquestionis a–; fairly natural one. After any stock has declined sharply in price, the normal tendency on the part of the public is to feel that it must be a bar- gain. Unfortunately,,,such is seldom the case. As Harold XQSchreder has often pointed out, much confused thinking concerning securities results from the fact that they are considered in terms only of level. Few people that a stock is a moving object and, as such, has two other qualities in addition to level — namely direction and momentum. The airplane, also a moving object, is often used for purposes of comparison. Two airplanes, one in a steep climb and one in a power dive may, at a given instant, be at the same level. It appears obvious that one would feel much safer in the former than the latter. The airplane comparison may be carried a step further. An airplane that has just landed must spend a good deal of time taxiing along a runway, refueling, and then taxiing back for a takeoff. A stock alsc, after a sharp decline,will almost invariably spend a long time in a sidewise trading area backing and filling before any major advance takes place. For this precise reason it is practically never wise to purchase stock immediately after a sharp price decline. In fact, in most cases, thfs practice leaves the investor vulnerable to serious losses…;) This . can ,be history. .- – ,In the year 1955, forty-two issues listed on tne New York Stock Ex- change declined 20 or more, from December close to December close. How – ..did bargain hunters fare in these issues Of the forty-two stocks. thirty- three declined further in 1956 with the declines ranging up to 4e. Ten of the forty-two declined 30 or more in 1950, and only one showed a profit of more than 30. The average decline was over 13. These figures pretty'well that it is rather senseless to consider stocks for purchase simply because they have had a sharp de- cline. It is almost equally senseless to worry about stocks which have had a sharp rise if technical and fundamental work proves that the stocks are suitable for purchase. Indeed, strange as it may seem, a stock is often a better buy while it is making new highs, or after it has moven up sharply after a long period of sidewise movement. This fact can also be proved statistically. There were forty stocks which constituted a market elite in 1956 by advancing 50 Had these stocks been down sharply in 1955 Not at all. Thirty-four out of the forty had also advanced in 1955 by amounts ranging up to 70. Indeed, not one of the forty issues had posted more than a 14 decline prior to the year in which they advanced 50 or more. – Thus, in a sidewise market like the present market,1 it is almost always to .buy.a stock–whichis at or- cl-ose 'new- – highs than it is to buy one at the bottom of a decline before it has formed a base. This is due to those elusive qualities, direction and momentum, which are all too seldom considered in making capital appreciation de- cisions EDMUND W. TABELL vfALSTON & CO. INC. AWTamb \\ \ \

Walston &- Co. / – – – – I n c , – , M embeTS New Y07'k Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Sw,h.d,ndl OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER April 26, 1957 Near term technical pattern continues to suggest higher levels in individual stocks, although the general market is entering an area of heavy overhead supply. My technical gauge has not yet entered overbought territory and has not reversed the intermediate term buy signal given on February 13th. Four issues in my recommended list have reached or approached interme- diate term objectives and are therefore dropped from my list until-a new pattern forms. They are General Dynamics, first recommended at 48-50 in August, 1956, which is approaching its first objective of 70. Recent high is – 68 reaching near term tJtic rec)mmended overhead supply at the week's high of 64 5/8. 56, Also International Petroleum which, at the week's high of 60 1/8, reached 60 objective mentioned in our last list resume. It was originally recom- mended at 34 in June 1956. Also Pacific Petroleum, which was originally trheceomremceenndetdhaigth11of in27F3eb/8ru. ary 1955, more than reached its 25 objective at The balance of the list follows Present Price Price Recom. Allegheny Ludlum 60 Amerada Petroleum 117 Amer. Cyanamid Bell & Howell Bristol-Myers Calgary & Edmonton Carborundum Corp Carrier Corp. Champlin Oil Copperweld Steel ECar gulcei bPle-ic hS-teer-e l — 79 38 48 33 43 58 30 33 Eastern Airlines 39 Fansteel Metallur. 56 Food Machinery 60 Gen'l Rwy Signal 30 Gulf Ol 129 Hewitt-Robins Intern'l Nickel 36 112 Johns Manville 47 Joy Manufacturing 68 Kennecott Copper 118 Magma Copper Martin,Glenn L. Minerals & Chem 76 39 29 Nat'l Distillers 27 Northern Nat.Gas Pacific 57 42 Pan-Amer.\lJorld 16 Panhandle East.Pipe 53 PPeinttns-tDoinxie Cement -6338- Royal McBee 36 Sperry Rand 23 Sunray Mid-Cont. 26 Sylvania Electric 45 Tennessee Corp. 56 , rimken Roller Bear.lOO United Airlines 29 U.S. Steel 63 vlestern Pacific Yale & Towne 59 29 16 103 67 42 164240 60-58 24 3 3.202–29 – 47 4551-44 19 107 25 90 50 23 130 75 38 23J0t 48-47 40-39 12 46 3r 25-24 25 49 50 90- 40-38 65 7138 Buy-Hold for long term appreciation. Buy-HOld. Long term potential 180. One of most attractive chemicals. BuyHold for long term appreciation. Buy-HOld. Support at 48-46. Hold for intermediate retention is advised. BuyHold for substantial appreciatior BUY-Hold.Intermediate object. 37. Excellent holding for yield & t ion. -In buying range.Support at 40-38. Price action may be slow,but long term outlook good. Continued retention is advised. Excellent lit growth.Buy on weakness. Buy-Hold for long term appreciation. retention is advised. Buy-HOld for long term appreciation. Continue to hold for long term gaiD. Hold for income and long term apprec. Hold for intermediate object.of 80. Hold for yield and long term apprec. Long term potentiality very favorable. Near support.L/t pattern very strong. Lit pattern good.Patience required. Hold for long term growth. Very strong long term pattern. One of the better rail patterns. Prie-e action slow.Patience r,equired. BuyHold for long term gain. support – Longterm objective over 100. Buy-Hold.Excellent long term pattern. Patience required.L/t prospects good. Hold for long term gain. Buy-Hold.Near strong support level. Excellent long term growth pattern. Buy-Hold.Excellent long term pattern. Patience required.L/t outlook good. Continue to hold for lit gain. Has reacted sharply.Near support leve Continued retention advised. I ' hf \ Thl'l market letter IS not, and under no cucumsta.nces IS to be construed 3S, nn 0IT to B..II orr ;().h,tAYAI)-,.1,\bUH be cotnosthruereedma.s,TahreepmrelosernmtaattIiOonn hod lnf hcontamed herem IS not Ilu.!.ranteed a'l to nccuracy or completeness the t & Co loe (If any Officer, Irector or Stockholder thereof, may 'Valston & Co, Inc All expresslOns.of opmlOn …. 1\neWII nnnndInntoetreasst nInctohmepSlCetCe\alnntaleisysml'e! ntAIOddnietdIOhnearlemm,.OrmISntlOn Weitherespec It0 any CCu as; general, mformal commentary on day to day market referred to herem ,ill be furnished upon re(IUcSt WN 301

…- r. Walston &- Co. – -…………… Inc………………… Members New York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE ISwit,..I,od) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM —- TABELL'S MARKET LEnER May 3, 1957 The market has continued ta push ahead into the overhead supply at 47-49 in the Standarp & Poor 500-Stock average.My intermediate term tech- nical indicator has not yet entered overbought territory, although it is closer than it has been in some weeks. \'Jould continue to hold selected issues.as long…as current st.r.ength prevails. Statistics CARRIER CORPORATION , Current Market Current Dividend Current Yield Long Term Debt 4t Cum.Pfd.Stk. 528.40 4.1 48,701,000 208,869 shs. Many forecasts have been published on projected changes in American living patterns over the next twent years. One thing that most of these forecasts have in common is the pre diction that year-round air condi- (50 par) tioning will become more and more a Common Stock 1,692,798 shs. part of our daily life. From Earned Per Share-1956 5.26 Sales-1956 193,194,000 cally nothing in 1946,the air-condi tioning industry expanded sales ta 3 billion in 1956. Further expan- Mkt.Range 1957-54 65 1/4 – 46 3/4 sion to 5 billion is expected in 1 As a participation in this rapid growth,Carrier Corp.appears to be attractive. HUh almost 200 mil-lion of sales in fiscal 1956,u is by far the largest manufacturer of air-conditioning equipment.Through a number ef divisions it is firmly entrenched in all branches of the heating and air conditioning fields, and also manufactures additional types refrigera- tion,cooling and electronic equipment. It is a leader in air-conditioning research and development and has a strong foothold in the export market with a large foreign sales division. Hith an eye to future growth, Carrier has budgeted some 30 million fo expansion over the next three years. Some 10 million of this figure will b spent on research and development. A large part of these funds were raised from a recent offering of 18 million of convertible debentures. Potential dilution involved in this issue -17 on the equity currently outstanding – is small in relation to the return to be realized. The remainder of funds for expansion will probably come out of cash flow and retained earnings. In the fiscal year ended October 31, 1956,Carrier earned 9,369,000 after taxes on sales of 193,194,000. This amounted to 5.26 per share.The fairly low profit margin level stems from highly competitive conditions within the industry which attracted a good number of small producers shortl after the war. This situation is slowly alleviating itself as marginal firm drop out of the business. For example, only 50 firms are now offering room air-conditioners as opposed to over 100 two years ago. As this trend conti- nues,it will make for a more stable price structure. Meanwhile, Carrier is making continued efforts to reduce costs and integrate suppliers. A recent major step in this direction was the proposed merger with Elliott Co., a major supplier to Carrier and a profitable manufacturer in its own right, of steam turbines,diesel and electrical equipment.Based on 1956 earnings, the mergErwhich exchanges 65/100ths O'f a share of Carrier for each outstand ing share of Elliott,would give pro-forma results about equal to those shown by Carrier alone.This,however,does not reflect benefits accrued from acquisition of a major producer of parts used in Carrier products. For 1957,Carrier is budgeting a 20 increase in sales.On this baSiS, with maintained profit margins, earnings for the year ending October 31st could approach the 6.60-6.50 per share level. As of January 31,1957' back- log had reached an all-time high of 89,881,000 and new orders booked are still running ahead of sales.Although need for cash funds will remain large a moderate increase in the 2.40.annual dividend is a possibility. The technical pattern on the stock is outstanding with a possible long term objective of 110 followed by higher levels. Strong support is encountered just -under the current market. The stock is recommended for purchase in long-term growth accounts. EDMUND H. TABELL 1 This mnrkot letter IS not and under no circumstanccs iB to be construed as, un offer to AO!! or a sohcitatiOn to buy any securities rcfcbred to therdn The herein IS not g'uarantcC'd as to accuracy or completeness and the !urnlshmJ1; thcreo! IS not, and undcr no Clrcum;tances IS 0 econr, rue as,11 re resen by ,,alston & Co Inc All e,-preSSiOns of opInion are lIubJect to change without notice Vt'alston & Co, Inc, or any Officer, Director or 61have dn mterest the securltlcs mentIOned herem. Thl'l market letter IS mtended and presented merely as a general, Informal commentary on ay 0 ny Tar news and not as a complete analYSIS Addllional mformatlOn With respect to any Se.IIr1tle'l referred to herem wlil be furnished upon request Vt N 3 \/

r , Wdlston &- Co. Inc. Members New Y01'k Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Sw;t,Id) OFFICE COASI TO COAST CONNECTEO BY OIP-E.el WIRE. SYSTE.M TABELL'S MARKET LETTER May 10, 1957 The action of the stock market since the February lows strengthens the convictions I have held since December, 1955. In my 1956 outlook predic- tion I expressed the opinion that the market would hold in a long sidewise consolidation area for a long time period with extremely selective action within the market with some issues moving sharply higher and others suffer- ing sharp price declines. I envrsioned this trading area would hold within the-confines of 520 high and 430-420 low in the Dow-Jones Industrial averag / (50-40 in the Standard & Poor 500-Stock Index.) The range since January 1956 to date, a period of over sixteen months, has been 524.37 reached in April, 1956 and the low has been 453.07 reached in February of this year. Today's closing level was 498.30. (S & P 500-Stock range – 49.74 August 1956 and 42.39 February 1957. Today's close 46.59). I continue to believe that the market will remain in a trading area for some further period. I believe we are in a consolidating period similar to 1951-1953 which will be followed by an upside breakout that will carry substantially above the 1956 highs. However, the 1951-1953 consolidation area lasted for two years and if we take April, 1956 for the high, (the August,1956 top was practi- cally at the same level in both averages) this market has spent only a year in a consolidating veriod. This hardly seems long enough to justify a rise similar to the 1953-1956 upswing that followed the 1951-1953 consolidation. I believe the chances favor a continuation of this consolidating area at least until early 1958 and possibly early 1959. However, I would change – the outer limits of the range I predicted sixteen months ago. I would raise the lower limit to 450-440 low S & P 500-Stock Index) and the upper limit to 530-540 (50-51 S & P 500-Stock Index). – The action of the since February has been quite impressive, par- ticularly on my breadth-of-the-market studies. Downside volume on my 10- week moving total is at the lowest level since mid-1954 and the longer term 25-week moving total is at the lowest level since early 1956. Advancing volume has not been quite as impressive, but the overall pattern suggestfr that the odds favor the possibility that the lows of the broad consolida- ting area were reached in February. As to the advance that started in February, it would appear that the advance should carry somewhat further. My technical indicator, which gave a buy Signal the day after the February low, has not yet reversed itself. In fact it has not as yet even entered overbought territory. If the advance remains orderly it might be some time before an overbought condition occurs It must be remembered that we are near the period of the traditional summer rise that usually occurs between Memorial Day and labor Day. If it happens this year, it is possible that the averages might vush through the heavy overhead supply and reach a modest new high at 530-540 f50-51 in S & P 500-Stock Index). This type action occurred in the 1951-1953 consolidation. After holding between 254 and 277 from mid-1951, the Dow-Jones Industrials moved to a modest new high at 295.06 early in 1953. (The S & P Index showed a similar pattern. After ranging between 20.69 low and 25.55 high it moved to a new high of 26.99 in early 1953). After this advance, both averages returned to the lower part of the range and completed the consolidating period. It is possible that this action could again take place over the next year or so. It would result in broad widening -of the base area and an advance to VQssibly 800-1000 in the Dow-Jones and 80-90 S & p 500-Stock Index in 1960-1962. – There is one other alternative that the present technical pattern sug- The vattern formed since April, 1956 has an-upside potential of 600-620 Dow-Jones and about 55-59 on the S & P 500-Stock Index. This couId occur if earnings over the next year increase more sharply than now anti- Cipated and the present advance continues without returning to the lower area of the trading range. Internal action of the market must be observed closely when, as and if the market approaches the 1956 highs for a confir- mation of this At the moment, I favor the probability of a further continuation of the 16-month trading range. EDMUND W. TABELL WALSTON & CO. INC. h hlnf 8.ThiS mark LUntllllled et letter herem IS IS n not, Rnd under no Clrcumatnnces ot Iuaranteed ao; to nccurflcy or c IS to ompl be cons eteness trlnuli d t ff fan 0 c r to sell or n soliCitatIOn to buy any securitIes referred to herclIl. The mformllt!on th r r IS not and under TIn CLI cumstunceo; is to be construed no., tI representntlOll e I t n Co Ine or flny Officer Director or Stockholder thereof. may h) hntel Wnlston & C wy es aann dl l lnt eorteasst oai.ncItnohcme. psAleelctlcu(na'ntI(laperlesysSimIlSoenn!AtlodondfeltOdlOplhnnc1urO,CnI!nII, o rm1a'1t mar IOn ' n l WI melei; I-\cnernl, commentary on day to day erecspr elt Ifl) any Se(.l.Ill.tl\!S rd\!rred to herem Will he furnished upon request W -.- J

1\ ,, Walston &Co.—–Inc. Memben New York Stock Exchange NEW YORK PHILADElPHIA LOS ANGELES SAN FRANCISCO BASLE (Switwlood) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET LEnER May 17, 1957 BRITISH PETROLEUM CO. LTD. Statistics Current Price Current Dividend Current Yield 21 0.399 (1) 1.9 With the Suez crisis over, for the time being, at least, it is perhaps time for the growthminded investor to examine the Funded Debt. Pfd. Stock (;,l Ordinary Stock Units) possibilities in Middle Eastern ;,18,697,400 oil. When these possibilities 12,706,252 s hs. are looked at closely, the result 101,025,568 shs.(2) can be staggerIng. For example, Sales – 1956 '721,633000 Earned Per Share-1956 1.5Q 60 of the world's kr.own oil re serves are now located in the Middle East. These reserves, Mkt. Range 1957-1956 (A.D.R's) 25 3/8 – 13 1/2 three times as extensive as those in the United States, serve a European market which, it is (1) Paid in 1956 in U.S.Funds on A.D.R's Free of British Tax (2) American Depositary Receipts representing 1 share traded on ASE generally agreed, is growing at a rate twice as fast as in the United States market. Furthermor the time may well arrive when th United States itself will be substantially dependent on Middl Brewster Jennings, Board Chairman of SoconyEMasot bcilruOdiel,prpoodiunctetidono.ut Ains Ba. recent speech – The odds against finding another oil province on this earth comparable to that around the Persian Gulf are too great to make such a hope a sound basis for the free world's long range planning. He also pOinted out that oil reserves in the United States and Venezuela were being drawn on five to seven times as fast as those of the Middle East. developmMenidtsd,lebEutasttheernbcarSuidcegwroiwllth, poof tceonutriasel, inahlwearyesntbeinsuthbijsecgt igtoanptiocliptiocoal of oil in the ground cannot be overlooked by the investor. As a participation in Middle Eastern oil growth, the American Depositary Receipts for thE common stock of the British Petroleum Co. Ltd. appear to offer considerable merit. This huge oil enterprise ranks second only to Standard Oil of New Jersey in terms of overall size and is unique among oil investments in that practically all of its production is located in the Middle East. Its Middle Eastern reserves have been estimated to be as high as 30 billion boaurtsrtealnsdoinfgo. il or nearly 300 barrels for each share of common stock now British Petroleum itself is a holding company with the larger part of its production, refining and marketing operations being carried on through subsidiaries. 101 million shares are outstanding with about 58 million shares owned by the British government and 27 million shares owned by Burmah Oil, Ltd. Thus, floating supply is only some 16 million shares. Some 2! million of these shares are represented by American Depositary Receipts traded on the American Stock Exchange. The major part of British Petroleum's prodUction comes from three sources. The first of these is a 50 interest (jointly with Gulf Oil) in the Kuwait Oil Co. Ltd. Kuwait production amounted to 54 million tons of oil in 1956. A 40 interest is owned in the so-called Iranian Consortium which now operates the Iran oil properties since denationalization in 1954. In addition to its interest, British Petroleum also receives a royalty of 10 cents per barrel on all oil produced for the account of other partners and is scheduled to receive some 70 million from the Iranian government over the next ten years in settlement of its claims due to nationalization. The Consortium produced almost 26 million tons of oil in 1956. British Petroleum's third major producing interest is in the Iraq Petroleum Co. Ltd. Its share holding is 23 3/4 and the company produced 21 million tons of oil in 1956. In addition to the above, British Petroleum has numerous producing interests in other parts of the Middle East, in Trinidad, the United Kingdom and Canada. hn tThl!; TYlllrket letter 1'1 not, nnd unller no clrcum'ltnnces IS to he con')trllid LOTlt.nlned hereIn IS not KUdTl,ntcc,j 11; to accurncy or t. e n ofl'hel to thble,.lll oodrfJba1'1tn'nlnOo'lh&tc- lntCantorLl.,ounInndtcoe,rbonuory cuLnrycu8mc,cltlnnnhccc5s IrSeftoerbreedcotnosthreureedmfi.b,T1Ihreepmrcf!o.rcmntaahtwonn nny Officer, DIrector or, Stockhdlder by Wnltnn & C nhUe.H… !'! nIiIllldmnteolt(a'st o. Inc All eprCl!BIOOS of ImI luthm('pletc mcntAlUdnd(i'tui o nearlemm , o 'Jec k rmIaStImOanr WeI t hc1ere!.pec t to any and SecUIltIC merell' liS a J.('neral, Informal comment,lry referre,l to herem \\ III be rut nlshed upon rCCJ\lcst on ay t 0 a'VNraUl '. 1– – -2- The company is also active in refining with ,a total through- put in 1956 of 32.6 million tons, 3 million tons more than 'in 1955. Re- fineries are operated both in the Middle East, the Jnited KingGoOC and on the European Continent. The B. P. Tanker Company, a wtY.'lly I)wned subsidiary, now owns 143 ships totaling more than 2 million dead weight tons and have about 3 million tons of tanker shipping under charter. This has been siad to represent about 10 of the world's tanker tonnage. Products are marketed throughout almost all of Europe, Africa, India and Australia. In 1956, British Petroleum earned roughly 1.54 per ordinary share, up from 1.24 in 1955. Earnings for the first half of 1957 will, of course, be adversely affected by the Suez closing, but should resume their strong growth trend in the latter half of this year. Divi- d3eSn.9ds received cents per by U. S. holders, after British income tax, amounted share. The relatively small yield is due first to to .British income tax payments and, second, to the company's policy of retainin capital g funds investm fo ent r inex1p9a5n6s.ion. A total of 240 million was spent on Due to its dynamic Middle Eastern position, this huge enter- prise is felt to have the best opportunity to partiCipate in the huge growth of world-wine petroleum consumption which is expected to double over the next ten years. These excellent long term growth pros- pects are pa at t1te9r.n w re-enforced with an ou ith an upside objective tostfan2d6i-n3g0. intermediate term There is strong technical support With the addition of British Petroleum to our recommended list, we are recommending the acceptance of profits in Calgary & Edmonton CLaanldgar(y34&), origina Edmonton lly has recommended just about at a price of 16 on February 18,1955. reached its intermediate term object- ive and funds realized from this sale may be invested in British Petroleum. NOTE All dollar figures assume a value of 2.80 for the Pound Sterling. EDMUND W. TABELL WALSTON & CO.INC. AWTamb