NEW YORK Walston &Co. – – – – I n c . Members New York Stock Exchange PHILADELPHIA' LOS ANGELES SAN FRANCISCO BASLE (Swawld) OFFICES COA.ST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET LEnER May 24, 1957 After turning somewhat reactionary during the middle of the week, the Standard & Poor 500-Stock Index strengthened on Friday and closed the week at 47.21, a slight gain over the prior week's closing. The market appears to be encountering some difficulty in pushing through the overhead supply which exists at the 47-49 level in the Standard & Poor Index. With little or no change in the market level, my intermediate term technical indicator is still well below overbought territory. At this point two possibilities exist . The first of these is a continued advance which would test the 1956 highs and would carry the oscillator into overbought territory. Based on technical patterns of individual stocks, this action is more probable. a posB1bi'lity-, 0 tion arour.dcurrent or slightly lower levels could result in a center line sell signal. In any case, the resultant signal would be given at a higher level than the buy indication given in February at 43.04 in the Standard & Poor Index. Numerous stocks in our recommended list have acted well since the buy signal was given. AMERICAN CYANAMID (86) reached a high on Friday of 86 5/8, after being recommended on March 1, I957 at a price of 71. Shareholders have recently approved the two-for-one split and the split stock is now trading on a when-issued basis. The original recommendation of American Cyanamid was made on the statistical basis that it was demonstrably cheaper than any of the other major chemical companies. Despite the sharp rise, the stock is still fairly priced in relation to other major chemical equities. The 1957 outlook also appears to be as good or better than that of the other companies in the group. A large part of this is based on ACY's commitment to the profitable ethical drug field. Most drug stocks have, as a matter of fact, performed well in re- cent weeks. In the proprietary drug field, BRISTOL-MYERS (49 1/2), which has been on our recommended list for some time,has shown improved earnings ill the ofirst quarter witoh.l.l vs .,.J\l.O,lilL the 1956 period .-The company is understood' tobe having-good results wHh its new proprietary products in the dandruff removal and laxative fields and sales of Ban, a new deodorant, are surpassing expectations. Earnings for 1957 could reach a minimum of 4.00 and possibly better this figure. Most steel stocks have acted fairly well since the February lows and selected steels continue to be among our favorite media for capital appreciation. CRUCIBLE STEEL (34 3/8) moved ahead last week after being behind the market generally. Part of the market interest in Crucibre stems from its commitment to titanium field. Its subsidiary, Ren- Cru Titanium, jOintly owned with Remington Arms, should show much im- proved earning power in 1957 as compared with a breakeven year in 1956 when the company was affected by E60s1timpeartesshoarfe Crucible's equity in of Crucible. ThiS, strike 1957 s and mechani earnings have cal dif run as fhiciguhltiaess5. 51 of course, is in addition to an esti- – mated 4.00 net from operations this year. dend GENERAL RAILWAY in addition to th eSIGrNeAgLula3r12511/4q) uraercteenrltyly, declared a indicating 251 extra divi- a payout of at least 1.25 this year. Another extra Will, in all probability,be declared later on in the year and full-year payout should reach at least 1.50 on which basis the stock wouldyield for well reach the 3.50 4.00 range and growth will continue with increasing railroad spending on modernization. April HwEiStThER5N1tPaACsIhFIaCre (56 3/4) being e released excellent arned before funds, operating figures for vs. 651 in the like 1956 period. This makes a total of 2.19 earned thus far this year as against 1.81 in 1956. Operating prospects for the balance of the year appear favorable and technical action has recently been improving notice- ably. EDMUND W. TABELL AvlT amb vJALSTON & CO.INC. This market letter l'l not. nnr! under no cIrcumstances IS to he construed ns, an olIer to I\cll or n soliCitation to buy any SCCUTlhcs referred to herem The conlnl11oU herem IB not a to accuracy or and the furnishIng thereof l'l nnt, and under on cIrcumstance' '.8 to I, Vvnlston & Co Inc All of opmlOn nrc subJect to change Without notIce & Co, Inc, or Ilny Officer, Director or toe 0 er CTCO, an mwrcst the SecUrttlC' mentIOned herem ThiS market letter IS mtended and presented merely liS a mfolmnl commentary on day to news und not as n Lompletc analYSIS AdditIOnal information With respect to any sec\lllhes referred to herem will be furnished upon requCt kY –

Walston &- Co. Inc. Members New YOj'k Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Sw,hecld) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lEnER May 31, 1957 There is, as yet, no indication of an overbought condition in the general market pattern. My technical gauge which signalled a buy on Februarv 13, the day after the year's low in the averages, has been close to over- pought territory on several occasions, but technical corrections like that earlier in the week have kept the market within bounds. A techni- cal sell signal could be given in either one of two ways. FiIrst, by a sharp advance that would result in an overbought condition. To, accomplish this, the advance would have to carry to at least Poor's 500-Stock Index. Friday'S close was t4h7e.4439.-50Thelev19e5l 6 in Standard & high was 49.74. The second alternative would be a loss of upside momentum which probably would be signalled by a drop below this week's low of i6.29. C49!.42 — The of signal wo'uld have-more sig– nificance than the second. Any generalization about the market is mainly of academic interest, however. The action of individual issues is,of course, much more important. My recommended list for long term appreciation is given below Present Price Price Recom. !Allegheny Ludlum 62 !Amerada Petroleum 139 Bell &CHyaonwaemlild 43 40 Bristol-Myers 51 British Petroleum 22 Corp. 42 Corp. 58 Oil 29 Steel 35 Steel 35 Picher 42 Airlines 39 IF'ane-tBel-Me.ta.llur 59 Wood Machinery 62 pen'l Rwy Signal 32 pulf Oil 148 Hewitt-Robins 37 Ind. 22 'I Nickel Toy Mfg. 112 72 Kennecott Copper 113 )'Jagma Copper 76 )'Jartin, Glenn L. 38 Minerals & Chem.o 29 rat'l Distillers' 28 Natl Gas 56 rorthern Pacific 49 Pan-Amer. World A 15 Panhandle East. 53 Penn-Dixie Cement 34 Pittston Co. 77 oyal McBee 39 perry Rand 22 unraY.Midcont. pylvania Elec. 42 rennessee Corp. 53 Roll Bear 99 nited Airlines 29 IT.S. Steel 66 laelsete&rnTPowanceific 57 28 16 Buy-Hold for long term appreciation. 103 Buy-Hold for 180 potential. 33 Buy-Hold for 54 potential. 42 Is at buying level. Support at 39-37. 33 Hold for long term appreciation. 21 Excellent long term technical pattern. 41 Continued retention is advised 59 24 Buy-Hold for Potential is substanti 37 with p al appreciat ossible lit i4o5n. . 31 Excellent holding for capital gainF.nd yi 29 Buy-Hold for long term appreciation. 22 In buying range. Support at 40-39. 47 Patience required.L/t outlook good. – 51 Hold for long term appreciation. 19 Buy-Hold. Potential 50 for long term. 107 Potential is 160-165 for intermediate tel 25 Is near good support level. 18 BUY-Hold.Excellent long term potential. 90 Buy-Hold. Long term 170 indicated. 23 Has intermediate objective of 80-85. 130 Hold for yield and lit appreciation. 75 Long term potential excellent. 38 Good long term pattern. Support 38-36. 30 Long term pattern good.Patience required. 24 Hold for long term growth. 47 Very good long term pattern. 39 Long term potential of 75. 12 Price action slow.Patience required. 46 Buy-Hold for long term gain. 38 Buy-Hold. At strong support level. 45 Long term objective over 100. 31 Buy-Hold. Excellent lit potential. 24 Patience required.L/t prospects good. . of 34-36. 49 May be slow but lit potential good. 50 Near good support level. Lit growth. 90 BUY-Hold.Excellent near and lit outlook. 39 Patience required.L/t outlook good. 65 Long term potential 90-95. 73 Has reacted sharply.Near support level. 18 Near good support level at 28-27. EDMUND VI. TABELL vlAlSTON & CO. INC. d

— –.-r—- – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – , Walston &Co. Inc. Members New York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Swaml.ndl OffiCES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER June 7, 1957 The technical correction of early this week held well above the late May lows, and the advance was resumed on Thursday and Friday. My technical gauge is well below overbought territory and it would require quite a sharp advance for the market to become technically vulnerable in the near future. Meanwhile, as the advance resumes, it is well to examine the internal character of the market. The Standard & Poor 500-Stock Index reached its on February 12, 1956 and since then has advanced rather steadily. The ad- vance from 43.04 on February 13, 1956, the day after the low, to 47.37 last Wednesday, had an amplitude of 10.1. As has been pOinted out often, however, it is impossible to purchase an averaIgte-,haasnbde, as en i the results of many portncreasingl'Y-dffflcan'-t'o select a list of stocks which would perform as well as the average. This is shown by a tabulation of the action of 62 Standard & Poor group indices in the period February 13 to June 5, 1956. During this period, when the advanced about 10, only 16 of the 62 group indices (about 1 in 4) performed as well as or better than the market. Indeed, no less than ten of the group indices were lower on June 5th than they were in the depths of the February decline. This only serves to underscore the fact that the market remains most selective, and that careful analysis is necessary in order to pick stocks that will act well even in an advancing market. In- most cases, companies showing the best performance exhibited sound funda- mentals and good technical patterns. New investments at this time should be confined to companies which show the same characteristics. A complete list of the percentage of advance or decline since Feb- ruary, 1956 in each of the 62 group indices follows Group Drugs Publishing 011 Advance or Decline 24.4 23.7 22.6 Electrical Equip. 22.1 Office Equipment 21.4 Electronics 20.8 Gold Aluminium 17.5 13.8 Metal Fabricating 13.8 Motion Picture Tires 13.7 12.0 Finance 11.6 Radio-TV Mfgrs. 11.4 Natural Gas Pipelines Chemical 11.3 10.3 500 STOCK COMP. 10.1 Steel Alloy Liquor' 9.7 9.6 Radio-TV Broadcasting Auto Parts Rayon Beer 9.4 8.9 8.4 8.3 Soft Drinks- — — .- 8.0 Steel Fertilizer Railroad Equipment 7.5 7.3 7.0 Confectionery Mining & Smelting 6.7 6.5 Printing 6.0 Electric utilities 5.5 — Group Advance or Decline Metal & Glass Cont. 5.4 Natural Gas Dist. . 5.4 Auto – .p-55;.'1i Sulphur 5.0 Textile Weavers 4.8 Paper Containers 4.2 Soap 4.2 Retail stores 4.0 Food 3.1 Copper 2.9 Rugs ' 2.7 Textile Apparel 2.7 Shoe 2.4 Telephone 2.4 Agricultural Machinery 2.2 Cigars 2.2 Sugar 2.1 Railroads 1.7 Paper 1.2 Coal – 1.0 Machine Tools . – 0.2 Shipbuilding – 0.4 –S-hCitpgpairnetgtes .– 0.6 – 01' c – Vegetable Oil 2.3 Hard Sur.Floor Cover.– 2.4 Auto Trucks .- 2.6 Aircraft Mfg. – 4.8 Air Transport – 7.8 Lead & Zinc – 12.1 AWTamb EDMUND W. TABELL WALSTON & CO. INC This market letter IS not. and under no Circumstances IS to he construed a8, an offer to Bell or a sohcltation to buy any securities contmnCtl herem IS not guaranteed as to aCcuracy or completeness and the furnlshmg thereof IS not, and under no totve to terdlfl The may by nll.ton & Co Inc All expressIOns of OPIniOn are subject to change without nohce Walston & Co. Inc, or any 0 cer, Irec r or 0 er er . k t have nn mterest the SecUrities mentIOned herem This market letter IS mtended and presented merely as a general, mformal on day to daYv..rr;/SOl news and not as a complete analysIs Additional mformntlOn with respect to any S!!eurltles referred to herem wlil be furnished upon reques

Walston &Co. Inc. Members New York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Swawlaod) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER June 14, 1957 After the sharp one-day correction on Monday, which held well above the late May lows, the market rebounded to reach the highest level since the 1956 highs. 1956 High – Feb.12th Low – Friday's High Standard & Poor's 500-Stock Index 49.74 Dow-Jones Industrials 524.37 Cloiing prices. 42.39 453.07 48.15 511.79 Despite the sharp five-month advance, my technical indicator, which signalled a buy on February 13th, has not yet entered overbought territory. Thi-s a-necessary-,,-prelim'inary before a It- ap- – pears that an advance to or above the 1956 highs is required before the market becomes technically vulnerable. It is also possible to receive a sell signal by a loss of upside momentum but, at the moment, that appears unlik surpa ely. ss the I 1 still 956 hi believe ghs dur that ing th the mark e summer et will months , p robably followed r ebaychcoonrtinmuoadteiorantelJ of the fourteen-month trading range in which it has held since April, 1956. It must be borne in mind, however, that the base already formed during the past fourteen months has a much higher potental if a really decisive upside breakout-occurs. There s a potential 55-59 on the Standard & Poor's Index and 580-620 on the Dow-Jones Industrials, if the area already formed turns out to be an accumulation base. It would seem more logical to ex- pect a further broadening of the base followed by a decisive upside break- out in 1958, but the possibility of a more immediate move cannot be ruled out. The technical action of the market, when, as and if the 1956 highs are reached, must be watched closely at that time in order to evaluate the probabilities of a further extension of the advance. Both the Aircrafts and Airlines are showing below average relative strength and there are no indications of an upward move of importance. Aluminum issues appear to be in need of further consolidation, but are in a buying range on moderate weakness for long term holding. The Automobile group- has diverse -patt-erns-.Chrysler (78-) has 'a-very inte-r-esting upside 'potential. It appears to be the most interesting stock in the group. The Automobile Equipment group has some very interesting patterns. My favorite is Timken Roller Bearing (53). The Building group is in the very early stages and there is no need to hurry purchases. Chem-icals appear to need more time to base patterns, but are buys on moderate weakness. American Cyanamid (83) has been my favorite in the group and it still indicates higher levels. The Coppers need more time to form broad bases, but a moderate short term rally is possible. I like Kennecott (115) and Magma Copper (77). The,Drugs have been of the better acting groups and still indicate higher levels. Bristol-Myers (53) has had a sharp advance since my original recommendation at 33, but it still indicates higher levels over the longer term. The Machinery group has diverse pat- terns, but several issues have possibilities. Joy Mfg. (73) has a potential of 88-87. Ingersoll-Rand (83) also has a constructive technical pattern. American Smelting (62) in the Metal group has a muct higher long term Ite-Office Equipment group has had a sharp advance and some issues have reached their first upside objectives, but Royal McBee (39) still has a nearer term objective of 48 and higher for the longer term. The Oils have been the best acting group in the advance, but still indicate higher levels. The producers have excellent patterns. Amerada- (-l39)-has a -nearer term ahd Ohio Oil appears – , to be forming an excellent accumulation base. The international oils may need a period but higher levels are indicated over the longer term. Champlin Oil (30) appears attractive in the domestic oils as do others in the group. The Paper stocks need a further accumulation period. Railroad Equipment issues have good patterns with General Rwy Signal (32) my There are no signs of immediate action in Retail Store group. The Shipbuilding and Shipping Line groups have very favorable long term patterns.Steels alSO have very strong long term patterns.For near term,AlleghenY(59) appears attractive at current levels.Rails show signs of improving action and select issues could move higher.I like Northern Pac. (47),Western Pac. (59) (and Great Northern (43).Rail average could reach 158-162 level on this move. c …d under no circumstances I' to he construed as, an offer to sell or bCltUhnoto buy any IS not guaranteed as to accuracy or completeness and the furnishlnp; thereof I b)' W81'ton & Co. Inc All exprC'SlOns of opInion arc subJect to change Wal hnoevwesalnindInntoert eusst amctohmepsleectue raintiaelYs SmIsentAIOddnietdiohnearleiinnfoTrhmiSatmioanrwkeitthlertetespr eIcSt mtoteanny sefciunritpiersesree errc 0 crCnR1in'1t'.'W;'IiN bee'1lu)rlI or Stockhol'der thereof may on day to daY rrarket srequest WN 301

— .Walston &- Co. Inc.— Members New York Stock Exc!uLnge NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (SwH,.dMd) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER June 21, 1957 After reaching new high territory for the move on Monday at 48.24 on – the Standard & Poor's 500-Stock Index (516.81 intra-day on Dow-Jones Indus- trials ), the market declined for the balance of the week. In fact,declines outnumbered advances on each five days of the week despite the fact that – the averages closed higher' on Monday. This is the first time since the ad- vance started on February 13th that my breadth-of-the-market studies have shown an unfavorable trend. My technical indicator has not yet signalled a sell but could do so shortly unless the market holds or rallies over the next This signal,if it is given, would be a loss of momentum or se- condary type signal rather than a primary type signal resulting from an overbought or oversold condition. Secondary signals are sometimes quickly reversed while primary signals usually require a greater length of time. The last buy signal given on February 13th at 43.04 on the Standard & Poor 500-Stock Index (453.07 on Dow-Jones Industrials) was a primary type signal resulting from an oversold If a sell signal is given,it might result in a one-third tor one-half correction of the advance from the February lows. This would mean a possible decline to 46.50 – 45.64 in the Standard & Poor Index (495-485 on Dow-Jones Industrials). Friday's close was 47.15 on the Standard & Poor Index (500.00 on the Dow-Jones Indus- trials). Such a correction would not have a great effect on individual isaues with strong technical patterns. Some of the issues on our recom- mended list are reviewed below. ALLEGHENY LUDLUM (58 ) originally recommended at 16 early in 1954, has been in a long trading shelf between 65 and 53 for almost nine months and appears to be under slow re-accumulation. Earnings for the first quar- ter were 1.25 per share vs. 1.23 in 1956, but second quarter results may be below last year's 1.21 per-share. However, for the full 1957 period, would expect a possible 4.50 – 4.75 as against 4.04 in 1956. Earnings from Allegheny Ludlum's 50 interest in Titanium Corp.(jointly owned with National Lead) should be about equal to 1.50 a share on Allegheny Ludlum. 1958 results in both divisions should be much better. Continue to recommend Allegheny Ludlum for long term growth holding and believe that the eventual emergence from the present trading area will be on the upside. BRISTOL-MYERS(57 ) entered our recommended list just about a year ago when it was selling in the 33-31 range. The stock has already reached its initial objective of 50-55 and has moved ahead to today's high of 58. The longer term objective is 85. The announcement that the subsidiary, Bristol Laboratories, had been granted a patent on Tetrex, an improved and more potent form of tetracycline, an antibiotic, has been partially responsible for the price advance but improved sales on Bufferin and Ban have also helped. 1957 earnings could be 4.25 vs. 3.55 in 1956. GENERAL RAILWAY SIGNAL (31 ) was originally recommended in September 1955 at a price level corresponding to 19 on the present stock. GRS has held in the 27-35 range for the past six months and appears to be in a re- accumulation phase with an eventual upside breakout. Earnings for 1957 should reach 4.00 as against 3.10 in 1956. Growth elements in this situation include electronics as well as increasing railroad spending on modernization. HOUDAILLE INDUSTRIES (22 ) became part of my recommended list on March 29 of this year when the stock was selling at 18. The stock has an exceedingly interesting technical pattern. The upside breakout of the long 12-16 range indicates, from a technical viewpoint, an initial potential of. 33 followed by a higher potential over the longer term. Earnings for the first quarter were 231 per share vs. 31i in the like 1956 period, but four months earnings caught up with the 195b figure. Earnings for the first half are expected to show a good increase. There are several issues that I have been watching for possible inclusion in my recommended list in the event of weakness in the general market. Some of these are listed below Stock Friday's Close Buying Level American Smelting Chrysler Corp 59 57-55 76 75-73 31 . 3132 . ed.ii TJ.\JJU\I ffw!aSaJIuClo3oGA1esC nc J.!l underans otociarcccuumrsatctylnocrescaISmtpo,beteeness ij,apresslons of opinion I1re subJect to mentIOned herem ThIS market ttt13e AddltIonli1 lllformatlon o.ffhf UfnlS to ts ellreoarf a 1; no . 0 – '8'iQ t Stockholder thereof may notice Walston & COl' Inc, or anYn on day to day -i'i;'.B mtended and presented mere y as a et to any secuntleo; referred to hereIn wIll be . t eques WN 301 —

—- Walston &Co. Inc. Members New York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Sw;hed.,d) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER June 28, 1957 Market action has followed a normal technical pattern. The five day correction from the June 17th high retraced over a third of the entire advance from the February lows and the market now appears to be in a position to resume the traditional summer rally usually experienced in July and August. My technical indicator which gave a secondary sell signal is new-in a position to reverse itself and re-affirm the primary buy sig- nal giveR- near the February lows. Seten stocks were mentioned in last weeks at prices telow the then mar- ket. Six reached suggested buying levels and are now part of my recommend- ed list. They will be reviewed in this letter shortly. Stock Buying level Fridays close American Smelting 57 57 5/8 Chrysler Corp. 75 76 1/2 Consolidated Electronics 31-30 30 Ingersol Rand 80 80 7/8 Newmont Mining 110 110 1/4 Tung Sol Electric 35 34 5/8 BELL AND HOvlELL Statistics How many pictures have'You taken Current Price 40 1/4 lately If you are a typical Amer- Current Dividend 1.00 ican family, you've probably taken Current Yield 2.5 quite a few. You've got more spare money and more spare time than ever Long term debt 7,400,000 before. Besides this you've prob- Pfd Stock(lOO par) 37,243 ably recently had a new child Common Stock 634,340 grandchild. All these things– higher purchasing power, more leisure Sales 1956 45,579,000 time and a high birth rate–have Earned per share 1956 3.84 combined to make the photographic industry one of the fastest growing Market range 1957-55 50 7/8-28 1/4 industries in the United States. Including 4 million 4 3/4 There is no reason not to suppose that this trend will cont- subordinated notes convertible inue, and, as a participation in into common stock at 46 this growth, the common stock of Bell and Howell continues to be On 534,340 shares outstanding at end of period. one of our favorite media. The sales of this important manufacturer of home motion picture cameras have conSistently grown at a rate faster than the industry average. Despite this fact, the stock is priced at 10-11 times anticipated 1957 earnings, making full allowance for the uilution recently caused by sale of 100,000 new common shares. Bell and Howell has long enjoyed a reputation as the Tiffany of movie cameras and its high-priced line of precision equipment has en- joyed an excellent reputation. Recent sales efforts, however, have been directed toward lower-priced, easy-to-operate cameras aimed at the novice market. Band H cameras now sell for as little as 39.95. A comprehen- sive research program has enabled the company to develop new cameras and products which would appeal to the vast legions of new photographers. Typical of these new products was the l6mm Electric Eye movie camera, introduced last Christmas and hailed as the most important advance in movie photography in a generation. With this revolutionary new device, all the photographer has to do is aim his camera, and press the button. A photo-electric cell mounted within the camera makes all the necessary adjustments of lens aperture depending on, light conditions. Undoubtedly future cameras, in a wide variety of sizes and price ranges will incorporate this principle, but Bell and Howell's leadership in the field will give it important competitive advantage. In addition to its amateur line, Bell and Howell also manufactures numerous other products which appear to have a significant growth pot- ential. It is the country's largest manufacturer of sound projectors t h theThis murket letter IS not, Ilnt! under no Circumstances 1'1 tolhe constrUrths, n 0if r t 0 coot-mned herem IS jh h Iby Wal'lon & Co, not Inc J.Cunrnntecd DS to a All expresSIOns of c curmncoyn or corn etencssn e II cOorc nIS snoolit&C.intCantorIlOunInndtcoerbonuroy uny any securlhes irsetfoerbreecdotnosthruereedmas,'Tnhreepmrefosernmtnathioonn Offlccr DJrector or Stockholder thereof, may e,cntcd merely liS gcnernl. commentnry on day to hIICaVv.cS uanndmnteortcasHt aIncuthmepsiccetucraltnlCal'Yl SIS. A Itlonearlmn,orma,mIOanrWI ereespect to any sccurltleS referred to herem \\111 he fUlnished upon request '—- -2- for schools, and sales of this line should continue to rise sharply as new schools are built and the trend toward audio-visual education continues. The company also supplies equipment to the armed services, in- cluding photographic equipment used in the guided missle program. Another highly significant product appears to be microfilm and re- lated machines which are distributed through Burroughs Corporation. Sales here should benefit from the trend toward office automation. Meanwhile expenditures on research continue, enabling Bell and Howell to maintain its leadership, not only in movie cameras but in all its other fields of endeavor. Significant in the research program is a recent licensing with Haloid Corp. involving the xerography or dry photography' process. This process for fast reproduction of photographic images is expected to have application in many fields. In order to finance sharply expanding sales, Bell and Howell recently found it necessary to sell 100,000 shares of new common stock, together with a privately placed 4 million convertible note. This, of course, will mask a large part of any gain in 1957 net. It is possible however that 1957 per-share earnings will come close to equalling last year's 3.84. This would mean a rise in net after taxes to 2.4 million versus 2.0 million in 1956. to be accomplished on A the sli5g0hmt iglaliionninsaplerso fit be margins would ing projected en for able this this year. First half earnings are expected to be lower than last year, but this means very little due to the company's policy of writing off development costs as incurred, while sales of new products do usually not show up until the second half. The conservative 1.00 dividend rate will probably be main- tained as Bell and Howell follows the growth company policy of financing as much expansion as possible through retained earnings. There is still another possible futUre development which, although now uncertain, could measurably alter the Bell and Howell picture. Acc- ording to the recent prospectus, the company is considering submitting a bid for the stock of General Aniline and Film Corp., now held by the Alien Property Custodian. This acquisition would undoubtedly require a good deal of additional financing. It would, however, give Band H an entry into the highly profitable film and expendable item business Which would complement Bell and Howell's sales and give it major stature in the photographic industry. Bell and Howell's favorable fundamental outlook in re-inforced by a favorable technical pattern with a long term objective of 90. Support is encountered just under current levels. The stock is recommended for pur- chasing growth accounts. AWT/wgs EDMUND W. TABELL WALSTON AND CO. INC.

r—————————————————————————– — — Walston &Co. Inc. Members New York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Sw;t,,,I40d) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER July 5, 1957 As was expected, my technical indicator reversed.the sell-signal on Monday and reaffirmed the primary buy-slgnal. 0ince that time the Standard and Poor 500-Stock index has advanced from a Monday close of 47.43 to 48.69 while the Dow-Jones Industrials have moved from 503.29 to 516.89. Technical factors at this point appear to indicate that the advance in the averages should carry to around the 1956 highs. At that point, probabilities will have to be re-examined in order to dis- cover the future course of the market. – ——-. – . Current Price Current Dividend Current Yield 59 3/4 58 It is an investment axiom that the best time to buy a company with an excellent long term future is when Funded Debt 7 Cum Pfd Stock Common Stock none 500,000 shrs. 5,443,377 shrs. the near term outlook appears the blackest. This axiom appears to apply perfectly to American Smelting and Refining. Earned per share 1956 Sales 1956 6.67 592,900,000 The world's largest custom smelter and refiner, American Smelting's fortunes are heavily committed to Market Range 1957-55 63 3/4-40 5/8 copper, lead and zinc. As every reader of the financial page knows, the prices of these metals have been under heavy pressure of late in world markets. For this reason, American Smelting's earnings will probably be down sharply this year, perhaps to around 4 per share vs 6.67 shown in 1956. This relatively unfavorable near term outlook, however, is probably the only reason the price of the stock, while it has held up well, has not been more dynamic, for the current price, seems to ignore the sharply improving earnings -owuh1tl.cono' karfeo–rsum19n5r8ariaznedd beyond. This outlook is based on a number of factors – -. -L (l)American Smelting holds a 57t stock interest in Southern Peru Copper Corp. This company is developing the Toquepala mine in Peru, and potentials of this mine stagger the imagination. Development costs are estimated at 200 million and the mine is expected to be in initial prod- uction by 1961 at a rate of 120,000 tons annually and possible eventual capacity of 300,000 tons. This would make it the largest copper producer in the world. (2)American Smelting is spending some 32 million on development of properties of Lake Asbestos of Quebec Ltd. This will give American Smelt- ing an important stake in the Asbestos field. Initial output is to be 100,000 tons of asbestos'annually with production commencing in mid-1958. (3)The company owns 52 of Mount Isa Mines Ltd. of Australia which is actively developing lead, zinc and copper properties. A five-year program is expected to triple output here by 1961. ' (4)As a background to the above, the long term outlook for the world copper price appears considerably better than does the shorter term out- look. Over the next five years world output is expected to increase 20. Wopld demand is expected to double over the same period. It seems hard to foresee continued declining prices against this background. As may be seen from the above, American Smelting's long-range future appears extremely bright. It is,- in addition-,fairlywell insulated against further near term copper price weakness by its large commitment to custom smelting which is less affected by price levels than operations. Other plus items in the picture include a favorable balance sheet position and heavy investments in other companies, including 35 of Revere Copper, 34 of General Cable, 14 of Cerro de Pasco and hold- ings of Kennecott and United Park City Mines. Technical extremely good with a long range potential of 90-110 and support just under the current market. An ample yield is afforded on the 3 dividend and the stock is recommended for purchase in growth accounts. AViT/wgs EDMUliD W. TABELL vlAlSTON AND CO. nc.

NEW YORK Wdlston &Co. – – – – – I n c . – Members New Y01'k Stock Exchange PHILADELPHIA' LOS ANGELES SAN FRANCISCO BASLE (Sw,he,ld) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER July 12, 1957 The stock market reached new hlghs for the move during the past week with the Stan ard & Poor 500-Stock Index at a closmg high of 49. 0'8as against a 1956 high of 49.74. Dov Jones Industrials reached an intra-day high of 522. 20 as compared with the 1956 high of 524.37. It has been my opinion for some time that the various industrial and combined av ages would test the 1956 highs some time during the Summer and probably exceed them by a small percentage. It appears probable that these objectives will be reached shortly. Despite the sharp advance of the past two weeks, my technical indicator has not reached overbought territory. Market action must be watched closely over the next several weeks forJ!te possilJiJity thatthe advance may carrye\CenJurtherabove highs than originally anticipated. ';t -, \ Statlstics One of the most persuasive reasons for the pur- Current Price 115 chase of common stocks is as a hedge against Current Dividend 3.50 long term inflation. In this connection, among the Current Yield 3.0 best inflation hedges are stocks of companies Funded Debt none who control sizeable natural resources. This Common Stock 2,791,142 shs. approach, however, presents many difficulties Earned Per Sh. -1956 6.12 for the investor. Mining and oil stocks are among Mkt. Range 1957 -56 1301/2-887/8 the most difficult of analysis and many promisin! equities must be analyzed as much in geological as in financial terms. Thus, the average investor, and even the trained security analyst, experiences a good deal of difficulty in selecting promising oil and mining equities. For the above reasons, one of the best approaches to the purchase. of natural re- sources could well be the purchase of Newmont Mining Corp. Newmont is a holding com- pany which has long enjoyed a top reputation in locating and developing large mining ven- oftures. Its current net assets are conservatively valued argund 320rnillion .. Iioldmgs number fisted plus for which there is no market, which Newmont owns entirely or jointly with others. Newmont continues to maintain an active managerial interest in many of its holdings and continues to search the world for promlsing properties in which it can assist in developing. Current net asset value is approximately the same as the current market price of 115.00 per share, but this in- cludes a large number of closely held securities whlch are carried on the balance sheet at falr value, a figure which in many cases may be ridiculously low. Perhaps the best guide to Newmont's ability to develop new ventures is furnished by its past record. The company's dividend income in 1956 was 6.12 per common share vs. 1. 14 in 1947. Investments and advan(!es are now carried on the books at a cost of 67,450,000 vs. a current market or fair value of 310,916,000. It is eVldent from this record that Newmont's investment acumen and ability to develop new products has been of the highest. It would take much more space than is available here to fully des- cribe all of Newmont's holdings. The largest single holding consists of more than a million shares of Continental Oil Co. ,one of the most promising of America's integra- ted oil companies. The next largest holding is 575,000 shs. of O'okiep Copper, one of the largest South African copper producers. 259,000 shs. of Magma Copper are also as are some 4.3 million shs. Sherritt Gordon, the fast growing Canadian nickel pro- ducer. Newmont also shares in a number of ventures for-wliiCh there is no listed or un- isted market. Largest commitment among these is the wholly-owned subsidiary, Newmont Oil Co. which is engaged in extensive exploration of Louisiana and California off shore !oil lands. Newmont also owns 10 of Southern Peru Copper, mentioned in last week's on American Smelting & Refining Co. Numerous interests in other mining and oil IProperties are held all over the world. Net dividend income in 1956 amounted to 6.12 a share. While, due to the large commitment to copper producers,net will probably be off in 1957 ,it should cover the 3.50 annual Newmont dividend. 5 stock was also paid by Newmont in 1956. The stock .s recommended for purchase by investors seeking long term growth in the mining and oil fields. The technical pattern of the stock is pood. There; ,(T ' . ats,Q!Jc1iatl.l2n to buy any securItles referrea to herelll The mformahon ro hbyavWe aanlstIonnte&reCstoin. Inc the All c,,prlffiSlOn'st'ooaf'to!'Ptditnttion are BubJect. W Itfo1;Schangc WIthout notice SecUrltle1 m(!ntioned herem Th1!1 market letter IS mtendcd and Wa ,stOll PI c'ellted C0, Inc., no 0 meleb 1,8 D go cIrcumstances IS to be con'ltrucd as, Dr..tetphreerseeonmft,aarmtikonenyt WN 301 INC .nC\\,S not DB tl complete onolYllls Additional informatIOn \\,ith respect to any secUrities referred to hercln r'giueto. .-'

,…..10N rrtof. iLe,la,J1a1.;1J' dT ;-, U.Wi Inc. Members New York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Sw;t,IdJ OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER July 19, 1957 The market failed to penetrate the 1956 highs and appears to be consolidating in order to try again. Last week's high was 49.13 on the Standard & Poor 500-Stock Index as compared with a 1956 high closing of 49.74 while the Dow-Jones industrials reached an intra-day high of 522.91 as compared with the 1956 top of 524.37. The market conti- nues to act well and, from a technical viewpoint, refuses to become overbought. Each time an overbought condition is about to be reached, the market quiets down and consoli- dates as it is doing now. As long as this type action continues, the market is not subject to more than the usual technical corrections. of-cwhetheI',or -notthe-averages reach new high-territory, individual,issues undoubtedly will. Below is a review of my Recommended List with technical com- ments. I have taken American Can from the Income List and added it below and have re- moved Kennecott to the Income List. I have dropped Minerals & Chemical and National Distillers from the list below to make room for recent additions. Present Price Price Recomm. Advice Allegheny Ludlum 53 16 Buy on dips. Support at 53-49. Arne rada 136 – 103 Buy on moderate dIpS. Very strong pattern. American Can 44 – 44 Buy-Hold. Very constructive pat. for lit. American Cyanamid 45 -.. 33 Hold for obJective of 53. American Smelting 59 57 Buy-Hold. Very strong pattern. Support 57-55. Bell & Howell 46 ..,… 42 Buy-Hold. Excellent long term pattern. British Petroleum 21- 21 Buy-Hold for long term appreciation. Carborundum Carrier Champlin Oil 48 55 27 41 59 24 Buy-Hold. Support at 46-44. Buy-Hold. Stock is at strong support level. Buy-Hold. Support at 26. Chrysler Consol. Copperweld Steel Crucible Steel 79 – 3832 75 Buy-Hold. Short term 90. Long term 110. 30 ., Buy-Hold. ,In,.broad.ac,cl.lIl'lulationar,ea. 31 Buy-Hold for intermedIate and long term. 29 Buy-Hold. Good support at 32-30. ', Eagle Picher 39 Eastern Airlines 40 Fansteel Met. 63 Food MaChinery 63 Gen'l Rwy Signal 33 Gulf Oil 147 Hewitt Robins Houdaille Ind. -36 21 Ingersoll-Rand 82 lnternational Nickel 100 Joy Manufacturing 69 Magma Copper 73 Martin Co. 33 -' Newmont Mining 113 North. Nat. Gas 55 Northern Pacific 47 Pan-Amero Worla 16' Panhandle East. 51 Penn-Dixie Cement 34 Pittston Co. 77 Royal McBee 37 Sperry Rand Sunray Mid-Cont. Sylvania Elec. Tennessee Corp. Timken Roller B 26 28 …. 42 48 50 .. Tungsol Elec. United Airlines U. S. Steel 32 -30 70 22 47 44 51 19 107 25 18 80 90 23 75 38 110 47 39 46 38 45 31 24 25 49 50 45 35 39 65 Buy-Hold. In strong support zone. Hold for long term appreciation. Hold for long term 85-90. Buy-Hold for intermediate and long term. Buy-Hold. Inter. term 40. Near support. Hold for 165-175. Buy-Hold. At good support level. Buy-Hold. Excellent long term pattern. Buy-Hold. Excellent long term pattern. Buy-Hold. Strong support at 100-95. Buy on dips. Support at 65-60. Very interesting long term potential. Hold for rally to 36-39 area. Buy-Hold for intermediate and long term. Buy-Hold. Support at 53-51. Buy-Hold for 70-75. Hold for long term appreciation Buy-Hold. Very strong pattern. Hold for long termappreciation. Hold for 90-95. Buy-Hold. Support at 37-35. Excellent long term pattern. Hold for 34 obJective May be slow but long term pattern good. Buy-Hold. In good support area. Buy-Hold for intermediate and long term. Excellent long term potential. Hold for long term appreciation. Buy-Hold. Support at 68-65. . .' VV.M.L;iTU1' &. cu. ll'l

Walston &- Co. Inc,—- Membe1'S New YQ'k Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BA5LE (5w,t…ld OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE. WIRE SYSTEM TABELL'S MARKET LEnER July 26, 1957 There is evidently still quite a supply of stock at the 1956 highs, despite the fact that these levels were reached fifteen and eleven months ago. Probably some further consolidation is needed before another attempt is made. However, the market does not appear vulnerable to more than a normal retracement of less than two-thirds of the ad- vance from the June lows. If this occurs, the Standard & Poor 500-Stock Index should hold above 47.50 (Friday's close 48.45) and the Dow-J ones Industrials should hold above 502 (Friday's close 514.59). However, as continually noted in this letter, the action of individual issues is mu-ch-moreimportant than-the long term holding AMERICAN BRAKE SHOE CO. (53) The common stock appears to be an attractive situation for all types of inves- tors. On the anticipated dividend of 2.40 regular and extra, the yield is over 5 1/2 and it is possible that a slightly higher extra might be paid at the yearend. Earnings for 1956 were 6.64 'per common share based on the 1,295,948 shares then outstanding. However, the company has an issue of 4.00 Cumulative Convertible Preferred which is convertible into common at a rate of 40. 15 per common share. The conversion privi- lege expires on September 30th of this year and, as the common is selling well above the conversion price, it is expected that the entire issue will be converted. This would mcrease the common stock outstanding to 1,611, 927 shares, plus 20,400,000 in Funded Debt. Adjusting per share earnings to reflect full conversion of the preferred would re- sult m 6.00 per share earnings in 1956 on sales of 186 million, a new high. For 1957, sales volume could reach 200 million and, allowing for an increase in the pre-tax profit margin to 11 as compared with 10.3 in 1956 might result in earnings of about 6.55 per share in 1957, after allowing for full conversion. Thus the stock is selling at nine times 1956 earnings and at slightly over eight times anticipated 1957 earnings. Conver- preferred is expected to remove-cons-iderable-ma-rket-pressure-f-rom the common. American Brake Shoe has been an important manufacturer of railway parts and equipment for the past half century but, unlike most railway equipment companies, has consistently operated at a profit. The only exception was in 1932. Dividends have been paid in every year since the company's founding in 1902. Until recently, railroad parts constituted the company's only product line. Although it is still important in this field, cent years have seen a concerted effort at diversification on the part of managem ent, and today rail equipment accounts for only 40 of total sales. The most important items are brake shoes,journal bearings and cast steel and cast iron wheels for rolling stock. It will be noted that these items continually require replacement and their sales are largely de- termined by railroad revenue ton miles rather than railroad capital expenditures and the are less subject to wide cyclical fluctuations than are sales of manufacturers who prU'UUICtl primarily capital equipment. In addition to sales to railroads, sales to the machinery, auto motive and farm equipment industries constitute the major part of current output. The company has an active research program and a number of new products coming out of the metallurgical laboratories have an interesting future growth potential. Typical of these are manganese steel castings which are used where high stress and impact resistance is requirEEd. other and high temperature ar,e produced and a large part of future expansion will be devoted to the specialty ca,sting field. Sales have shown a generally rising trend from 1947 to date and have risen in the .last three years as products outside the rail line became important. Much more im portant,however, is that profit margins have risen steadily since 1947 with the exception of a slight drop in 1954. 1956 before -tax'margin of 10.3 is the highest in recent years outside the Korean war bulge. Technical pattern is very strong. After reaching high of 58 in 1946, stock declined to 31 and held in the 31-45 range for ten years until it broke out on the upside in 1956. Thi suggests, from a technical viewpoint, a long reaccumulation area and an upside potential considerably higher over longer term. Further expansion into lines .,.. –