— NEW YORK Wdlston &Co. ———lnc——— Membel's New YOI'k Stock EXchange SAN FRANCISCO LOS ANGELES PHILADELPHIA OffiCES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO TABELL'S MARKET LETTER March 21, 1958 After dropping off sharply on Monday, the market recovered most of its gain later in the week with the Dow-Jones Industrial average closing at 452.49. There is no chang in the outlook for the general market and probabilities favor a mild advance in the aver- ages with selected groups outperforming the general list. tatistics CONTAINER CORP. OF AMERICA Current Price Current Dividend Current Yield 19 1. 00 5. 3 One of the best times to buy a true -growth.secut'ity.is-when ,advel'se develop- – ' ments have temporarily placed a damper on the price action. Such an opportunity, we be Long Term Debt Pfd. Stock 100 par Common Stock Sales, 1957 Earn.per Sh.1957 35,550,000 73,000 shs. 10,508,892 shs. 256,115,744 1. 36 lieve, is now afforded for the purchase of Container Corp. of America. Container Corp. has one of the best Ion term growth records of any common stock. Earnings more than doubled in the period 1949-1956 and in the same period, the price Mkt.Range 1958-57 20 7/8 – 16 1/2 of the common stock appreciated some 650. This growth has come about because of the trend toward packaging a wider and wider range of consumer items. The use of paper- board has grown from 10 1/2 pounds per capita in 1899 to 186 pounds per capita in 1955, a growth of 1,673, while population has grown only 1200/0. cOi'ner Corp. manufacture corrugated and solid shipping containers, folding cartons i r c s9 flexible packages and other packaging items. These are used for pa g d s ip . oceries, frozen foods, canned goods, soaps, beverages, electronic me lIes, drugs and many other items. The company is completely inf i eted t ill to the finished product, ,!cJually shipping a slightly greater board produced in its own mills. f . n to tha the tonnage of pape net purchaser 01 finished paperboa As every investor is especially stringent as ew c . s paper industry during 1957 became and demand increased at a less than norm I rate. Container Co 0 the rest of the industry, felt the pinch and sales declined to 256 illion in the prior year. Earnings per share of common stock drop ecord highcf 1.71 to 1.36. The earnings decline was aggro.\'atcd ty exlraordi y experscs arising from a heavy program of capital expendi- tures inaugurated in te 1955. During this period some 72 million was spent on new facilities. In 1957, start up expenditures on new plants amounted to close to 40 cents per share before taxes and thus accounted for almost half of the decline in earnings in the 1956-1957 period. For the first half of 1958, pressure on both sales and margins is expected to contin e and start up costs will continue to bulk large in the company's picture. However, the capi tal expenditure program is about completed so that only 15 million will be required for new expenditures vs. some 38 million spent in 1957. This included 22 million spent for completion of a new bleached sulphate and pulp mill at Brewton, Alabama. This move will make for further integration in the food board, the fastest growing 'paper product. Industry sources expect the downtrend in demand for paperboard to level off in early 1958 and turn upward at the end of the year. With most of its capital e'Kpenditures completed, Container Corp. will be in excellent position to benefit from increased deman and to resume its long term upward trend of sales. While working capital has been de- pleted by recent spending on new plant and equipment, the 1 dividend can probably be maintained if margins improve as expected in late 1958. At current levels, this divi- dend affords a generous 5. 3 yield – unusually high for a growth equity of this quality. Earnings for 1958 should approximate the 1.36 earned in 1957 with a pickup in the second half. From a technical point of view, ability to reach 21 would indicate 28-30 and any weakness caused by temporarily unfavorable earnings should provide outstand- ing opportunity to make long term investment purchases. IS not, nnd under no circumstances 15 to be construed us. an offer to s('ll or .\ so lei IOn 0 U) any slenr, re errc( herem The Hlformnbon ,,,nt.J.tncfl herem IS nut flS to hCCtllll(.Y or ami the lUI !l.lshmJ,! thereof I nu1'i.MriJ. us, a repres(!ntn Hun bv \'y nlston & Co, Inc All expresSIOns of ollinlon 81 e subject to without notice Wufs'tdn't lTlrbtors, Stockholders and Emll\oV( thereof I)urchase, ell nnd mny have an InterE';t In the ecurltles mentioned hel un ThiS mnrket letter IS mtended and presented merely as a g-eliCI aJ. 111fvlmlll rommentlLry on rlny t …. nllY mnrkd new lind not liS a c…. mplcte 1I11nlYIII'o AddltlOn,ll tlfolmatlOn '\11h respect to any 'Iecur111CS refelred to herem will be fill nlt.h('11 upon request \\, Jot

I' NEW YORK Walston &Co. —–lnc —– Membe,-s New Yo,-k Stock SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER March 28, 1958 INTERNATIONAL MINERALS & CHEMICAL Statistics Current Price Current Dividend 28 1.60 Excellent yield, defensive value and good growth prospects seem to be combined at this point in the common Current Yield 5. 70/0 stock of International Minerals & Chemic 1 Long Term Debt .Pfg,–,StoCk .1.QQ . Common Stock The stock cur rently returns 5.70/0 on a we 1 27,100,000 (1) covered 1. 60 annual dividend which has . 33Q shs been.majl;ttained,Kothe.pasj; sevenyears. 2,337,317 shs. In addition, the outlook for growth pros- Sales, 1956-1957 106,200,000 Earnings per Sh.1956-57 2.81 Sales 1957-58 (E) 110,000,000 Earnings per Sh.1957-58 (E) 2.90 pects, over both the nearer and longer terms, appearsfavorable. International Minerals is one of the leading producers of fertilizer and agricultural chemicals in the United Mkt. Range 1958-56 337/8 – 25 1/4 States, with an important stake in variou industrial chemicals and consumer prod- (1) Includes 19 million 3.650/0 Convertible Debentures, convertible into common at 55 to Dec. 31, 1962. ucts. The use of fertilizer and plant food should continue to grow over the longer term wlth increasing use being made of high-margin superphosphate fertilizers Note Fiscal year ends June 30th. of which International is an important are carried on through six (1) The phosphate minerals dWWion 'n rus-bearing rock in Tennessee and Florida. (2) The potash es me located at Carlsbad, New Mexico, chemical plants a 'gar Is and an important nine roduces Feldspar matenals used cerarrllcware andgIass, clay, which is used in foundry together with silica, barite and erlite. (4) The phospha e che i ' one of the highest tonnage producers of triple superphosphat i tlrVo'1 0 produces dicalcium phosphate, an important animal feed supp e t food division is one of the leading fertilizer manu- facturers in the cou y se' to farmers in thirty-two states. (6) The amino products division gives the com n entry in the consumer field, producing the highly popular bcent, the largest ing brand of monoscdium glutamate. This product is finding 'ncreasing home and commercial use as a seasoning. As can be gathered from the above, many of the company's operations are integrated. For example, a large part of phosphate rock production goes to the phosphate chemicals division, part of whose products in turn are used as ingredients by the fertilizer division. For the near term, th e earnings outlook appears to be favorable. Earn'ngs for the year ended June 30, 1957 increased to 2.81 vs. 2.14 in the prior year. This was due to the absence of start-up costs and increased shipments of superphosphate rom the new Bonnie, Florida, phosphate chemical plant. For 1957-58, earnings will robably equal this experience with the new plant enlarging the earnings base. 25 mUlio ill be spent on the Saskatchewan potash mine and this should be in operation by late 1959. Over the longer term sales should continue to grow at close to the past rate they more than doubled since 1949). Earnings in recent years ha've not kept pace with ales growth due largely to higher depreciation costs, but it is now believed that nonash charges are ample. From a technical point of view, the stock has formed a subtantial base in the 26-32 range. An upside breakout would indicate a possible 46. WTamb EDMUND W. TABELL WALSTON & CO. INC. ThiS market letter IS not. nnd under no circumstance'll IS to be cOnstrued as. an offer to s;cll 01 a soliCitation to buy Rny referred to herem The mformatlon ('nlnlfled herein IS not gullranteed as to aecuracy or and the thereof l'l not, un. undel flO Circumstances IS to be construed as, a. I cprescnta- (wn by 'Vn!ston & Co Inc All expressIOns of opmion are subJect W change without notll;c 'alston & Co, Jnc. and Officers, DlrectoJ'fl, Stockholders and thereof, !cll and may hine In Interest m the SCCUritles mentIOned herem Thl' market letter IS intended and presented merely as n gcnenll, IIIfl mn! commentary on dny to day market news nnd not nl a complete nnalysl.s Addlbonnl Ulfotmntlon With respe('l to sccurltleb referred to helCIn will he r111 m..,hc,d upon request. \\– 301

Walston &- Co. —–Inc —– Mern ben New Y o,'k Stock El'change NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER Fort Myers Beach, Florida, April 3,1958 The warm sands of a Florida beach far from the ring of the telephone make Ion range thinking much easier. This is particularly true when one considers what these sands were worth ten years ago and what they are worth today. In our investments as well as in our speculations we are often much more con- cerned about the nearer term outlook than we are in long range planning. The shorter and intermediate term fluctuations are important, but the great majority of really large stock market profits have been made by first judging the long term trend correctly and then uSing.the shorter-range m.ovements as a c9rollary t9 the.main.objective… The longer range trend of stock market prices, in my opinion, is toward higher levels. If this reasoning is correct, the main objective of the investor or long range speculator today is to slowly accumulate stocks in companies where the longer term out look favors continued growth and where prices are temporarily depressed by lower immediate earnings. I say that the longer range trend of prices is toward higher levels because of two main reasons. First, because the favorable longer-term trends of population growt , rising standards of living and new research products have produced a growing population with increasing desires and the ability to obtain these desires. These developments are fundamentally sound and while they probably were overdiscounted at the stock market highs of 1956 and 1957, the longer term trends in population, standard of living and research continue to indicate growth. The second reason is inflation. Whether we facts must be faced. In my opinion, facts indicate that a slow i i i continue. At times there will be slight temporary deflationary cks' e present, but the main trend is inflationary. Governmental po 'cies 'ate a certain extent by political reasons are partially responsible. nee finance a growing economy, .' –cIevelopmenf of new'markets in'und 'inorderto ob'tiiinou'r dePleted raw materials are other r on. t6itneet the challenge of Soviet Russia While e 0 ok for stock market prices is favorable, I do not anticipate any im t' te advance nor do I expect all stocks at a later date to participate in a oad market rise. There will be many stocks selling much lower ten years fro w, just as there are many stocks today selling much lower than ten years ago despr e the fact that the stock market averages have advanced more than 2000/0. I continue to look for a trading range for the balance of 1958 and probably into 1959. The Dow-Jones Industrials, now 440.50, will probably continue to range in about the 480-420 area and the Standard & Poor 500-Stock Index, now 41.48, will probably range in the 45-39 area. Best immediate price action will be shown by the consum er goods stocks like utilities, tobaccos, food chains, drugs, soft drinks, etc. The reason for their strength is ,obvious. The soft goods companies have shown in- creasing earnings in 1957 and will continue a favorable showing in 1958. Other groups are slowly basing out and, while 1958 earnings may still be in a declining trend, a reversal hoped for in 1958. Bugding papers, would, be among the groups in this category. The heavy industry groups probably will need a longer period of time to consolidate and base out and might in the meantime reach new low territory on unfavorable earnings reports. However, if the long term trend is toward higher levels, price weakness should be welcomed as an opportunity to buy sound, growth equities at attractive price levels. The next eighteen months may be the last opportunity to buy stocks on the present 525-415 range before they advance to a higher plateau. EDMUND W. TABELL WALSTON & CO. INC. Tlml tn!ll k('t lctt('T , .. not. nnd unner no is to be construcd IS, an afl'eT to sell or n sohCltahon to huy nny securItIes referred to hereIn The wfO! mahan (nnlnmcd n'll'w 15 not ,nmruntced liS to aCCUlIlC Of find the furnishIng- thereof IS not, find undel no clnumsutllcc,q to be construed as, n rcprChcnta ('Ill hy \\'nl'ltoll & Co lnc All expresSIOns of OPinIOn nrc IlllhJcct to \\lthout notlCe. Walston & Cu. IIIC, anti OITlcerll, Stockholders alld l'.llll'luycc'l iherc)f, )ulchn;e. sell and mny havc an interest III the mentIOned ht'IClIl ThiS markC't letter mtended and merely as a general, llIflmnl commcntllry II d,ll' to day mdrket news and not ns n complete Ad.htwllul ,nfolmatioll ,th respect to nny !'ccurlttCB referred to herem wlll bc fUIIII'.. h('lj IlPn rCIlllcst X 301

NEW YORK W—-d–l-s–tlonnc–&—C-o. Members New Ymk Stock Exchange SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO TABELL'S MARKET LETTER Fort Myers Beach, Florida, April 18,1958 Under the stimulus of a cut in the rediscount rate and a further lowering of requirements, the market was up sharply on Friday. The Dow-J ones Industrials reached of 450.75 and the Standard & Poor 500-Stock Index touched 42.87. Friday's strength been preceded by firmness in the rails on Thursday and the Dow-Jones Rail average ached an intra-week high of 111.05. So far, the Dow Industrials have continued to hold in a range bounded by the Fehrmlr and low of 459.77 and 434.04. The ultimate breakout from this range will determine direction of the next intermediate move. Upside objective would be 470-480 and down- side objective 425. The Standard & Poor 500-Stock average reached a new high and if fol- 45 Ability toreach a new'high-on'theDow-J one indicate 116. The theme that this letter has consistently stressed since last August – namely e advisability of switching from cyclical, heavy industry type stocks into the defensive consumer goods category – has proven profitable for the individual interested in capital tion over a six months or longer period. Most of the consumer goods issues are selling well above the 1957 highs and in many instances have reached all-time highs. Fur ore, technical and fundamental work would appear to indicate that this action will continue over the foreseeable future. It has been difficult for the average investor or trader to realize that the cum;unrrerl goods issues have appreciation possibilities. Memories are short, however, and it is that dairy stocks, bakeries, grocery chains, retail stores, liquors, containers, to- ccos, finance and soft drink issues were the leaders of the 1942 to 1946 advance. Of , the main reason for the advance at that time – obconsumer goods – es not exist today but the present fundamental bac),grou fo \hfiere t reasons favors consume r goods issues. Furthermore, most of ds ps are selling to- at much lower price/earnings ratios than the 6 tops. This does not to the foods, food chains and utilities &ei1'il higher pte ratios because ear-nings stabilityand-a-slowbut- ' ever, othe-r-soft goods is sues- – are not selling IC(lmlp,mlles, containers, tobac s evW– lOnS of 1946. Soft drinks, finance were selling at over twenty time s earnings in e 0 1 a below that ratio today. I still favor continued InolOlmg of select d sues despite the sharp advances of the past six Im'Dn1ths. Among the s s c . ue to favor are Current Price Indicated Div. Yield Ameri n Can Anchor Hocking Glass Container Corp. Carolina Power & Light Family Finance First National Stores Lily Tulip Cup Philip Morris United Biscuit Wilson & Co. 45 52 19 30 27 59 71 50 33 20 2.00 2.00 1.00 1.32 1.60 2.50 1.80 3.00 1. 60 1.00 4.4 3.8 5.3 4.4 5.9 4.2 2.5 6.0 4.8 5.0 not in the consumer or soft goods.category.'rother issues that appear should be accumulated for longer term holding include Current Price Indicated Div. Yield Hoffman Electronics International Min. & Chern. Pan-Amero World Air National Gypsum Raytheon Zenith Radio 26 28 14 47 26 74 1. 00 1. 60 .80 2.00 stock 2.50 3.8 5.7 5.7 4.8 3.4 EDMUND W TABEP, ThiS market letter IS not. and under no Clrcumstnnci!S IS to be as, an offer to 1iI\J.y to herem The informatIon ('untamed hel em 15 not (!unrllnt('((1 as to accuracy or completeneJs and the furnlshlllg therH)A'nUt;' Jh\'l-1inllePho tJ to be construed as, a representa tH.n b)' \\'nl'lton & Co, Inc All c(prCSSIOIlS of OlHnlon nre subject to chnnge Without notice & Co, Inc, flnd Officers, Dln'ctors. Stockholders and t,mploecs thereof, )lUrcha'lc, sell and mny hn\e an Interest In the 'lecUritH'S mentlonerl herem ThiS mflrket letter IS mtended and prcsented merely as a general, mrUl mal commcntm y nil .Iny to rillY mnrket news and not ns a complete analYSIS Additional mformntlon v.lth respect to any securities referred to herem Will he upon reQuest. \\ N 30l

NEW YORK Wdlston &Co. Inc. Members New York Stocle Exchange SAN FRANCISCO LOS ANGElES PHILADELPHIA OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO TABELL'S MARKET LETTER April 25, 1958 From a technical point of view, the stock market is putting up quite a remarkable performance. The varIOUS averages have held well above the October lows despite the fact that first quarter earnings reports are extremely poor with a great many institutionally here stocks failing to show sufficient earnings to cover the last quarterly dividend payment. In the face of all of this, the market is close to a six-month high. This action indicates that investor confidence continues at a high level with the prevailing opinion that present poor earnings are only temporary and will be followed, after a consolidating and adjusting perie d by a renewed uptrend. If this proves to be the case, the market should continue to hold in – the' 9–45 -area in- the Standard & Poor 500-Stock Index for a considerably longer period of time. Some lightening of commitments in intermediate term trading accounts is indicated as the upper limit of the expected trading range is reached, in anticipation of replacing sales near the lower part of the range. As we have noted in previous letters, the general market can be divided roughly into four groups, all showing diver se action. The soft goods groups and special situations have shown above average action. The semi-durables and heavy goods stocks have acted poorly in comparison. We have tried in our recommended list to confine most of our com- mitments to the first two categories. A brief technical review of the twenty issues in our recommended list follows AMERICAN CAN (46) continues to hold in the broad 38-49 trading area in which it has held since 1954. The long term potential is 75-85 with 55-57 as an intermediate term possibility. Hold and buy on weakness into the 43-40 support level. ANCHOR HOCKING GLASS,(51) has risen quite sharply since its but con- tinued retention is advised. Long term potential is e ort at 48-45. BELL & HOWELL (56) has shown excellent technic 0 in e market uncertain- ty of the past year. At its present level it is near , but the long term po- e. CAROLINA POWER & iwaicate a slow uptrend to the 40-45 po- tential. Would co mit n e support level. CONTAINER CORP. (19) has held in the narro 9 the star't of the year. Appears to be slowly forming a strong an eventual 27 objective. Continue to hold and buy on minor weakn (27) has broken out on the upside of the 25-2 trading area and has a I erm upside potential of 43. At present levels the yield is 4.7/0. Would contin 0 hold and buy on minor weakness. FIRST NATIONAL STORES (60) has a most interesting long term projection with an initial 70-75 followed by 85. Continued retention is advised. GENERAL RAILWAY SIGNAL (25) is one of the few issues in our list in the heavy goods category. The stock has held in the 20-26 range with an upside potential of 34, but may need some further consolidation. First quarter earnings may be below average so would suggest intermediate term traders switch into other issues in recommended list on strength. Patient long term holders may continue with this issue. HOFFMAN ELECTRONICS (26) is one of our favorite issues. Relative strength has been good and the stock has reached a new high since 1955. There is some overhead supply between 26 and 30 that may slow action, but the longer term potential is 45. Would continue to hold and buy on minor. dips. INTERNATIONAL MINERALS & — CHEMICAL (29) has held since early 1956 in the 25-31 range. An upside penetration of his area would indicate the possibility of an advance to the 45-50 range. LILY TULIP CUP (75) has also had a sharp advance since its original recommendation. Would continue o hold, however, as the longer term obJective is over 100. NATIONAL GYPSUM (46) Action may be slow but would continue to hold. Long term objective higher. PAN AMERIC WORLD AIRWAYS (15). Relative strength continues to show improvement while action be slow. Would continue to hold. PANHANDLE EASTERN PIPE LINE (45) has reached upper part of 36-47 trading area. Suggest intermediate term traders sell on cur- rent strength. PHILIP MORRIS (50) Technical action excellent. Intermediate term object- 've 70-75. Support at 48-46. Of the remaining issues in list we would continue BUY- HOLD recommendations on RAYTHEON (26), UNITED BISCTTTT (32) WIT ..sON & CO (20) r– r\'oI1\lSon & Co. lne All (''I(preSSlOns of OPIniOn are subject to change! Without notice Walston & Co. lne, and Officers, Directors. Stockholders and purchase, sell and mny hrl\e an mterest in the ruw-ketr1Jj;1\'QtlJJtcllJ'led and presented merely as a general, Informal commentllry nn day to day market new'S and not as a complete analysIS f\nnhhetiupon re(luest. UIl!J. T r n secullhes referred to herem Will be R. Tl\Tr' \\l\ 301

NEW YORK Walston &Co. —–inc —– Members New York Stock Exchange SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO TABELL'S MARKET LETTER May 2, 1958 The various averages during the past week all reached new intra-day highs since early October,. The following table is interesting. Average Dow-J one s Industrials Dow-Jones Rails Dow-Jones Utilities Stand. & Poor 500-Stock 1956-57 Hi/ilh 524.37 182.54 75.01 49.74 1957 Low 416.15 94.91 61. 45 38.55 Feb. '58 High 459.77 111. 92 73.10 40 2.60 March '58 Recent High High 457.27 460.56 107.94 113.21 73.66 77.87 -42;75 '–43.85 0/0 Decline From High – 120/0 – 380/0 40/0 120/0 – It can be readily seen from the above table that the utility group has been the best holding since 1956. This average is now selling above the 1956-1957 high while the other averages are still considerably below former peaks. The diverse action of the major groups shown above is even more sharply illustrated if individual groups and issues are used. An industrial investment issue like Union Carbide, for example, is selling 350/0 below its high and 40/0 above its low while American Cyanamid is selling 20/0 below its high and 280/0 above its low. Utilities are selling in new high territory while a rail issue like Union Pacific is selling 29/0 below its high. As I look at the 1500 graphs of individual stocks and various averages that I main- tain, I see no change in the market picture that I have outlined for quite some time. The market in terms of the averages is not going to go very far in either direction. However, that does not tell any where near the entire story. While the Dow-Jones Industrial average may hold in a range between 480 and 420 and the range of between 40 and 45 for a year or more longer, the Index in a ppenty of worthwhile upward moves in the market during the relatively nat As we have mentioned several times before 1 Ie r e market can be roughly divided into fo,r for the past- six months and wIll the stocks whose earnings in 1957 w h above actio fo do over the foreseeable future are a ' 956 and whose earnings in 1958 will probably be better finance, drugs, retail ores d utilities, food chains, tobaccos, The secon cl . of groups that over-discounted their long term potentials at the 1 have now reacted sharply but now appear to have discounted unfavora ments and are in the process of slow re-accumulation. The papers, building s 1es, oils are among the groups that would fit into this category. It is groups of this n ure that should be watched closely and accumulated on minor price declines. While they may not move up immediately, they will probably be among the eventual leaders. The third classification is composed largely of the heavy industry groups that probably will need a considerably longer period of time to re-accumulate and commence their anticipated advance. The fourth group is composed of special situations such as issues I have recom mended in the past such as Bell & Howell and Wils'on & Co. Probably the best course of action for the foreseeable future is to forget about the general market and the course of the various averages. I think there are three rules that could be followed by the individual who is interestedTin-obtaining six.,months market profits over the next year or so. (1) To be neither an all-out bull or an all-out bear. Individual stocks are going to continue to move in both directions regardless of the course of the general market. (2) More money will probably be made in the offbeat undervalued situations than in following the course of the recognized market leaders, most of which will hold in relatively narrow trading areas. For example, the distilling stocks and textiles, which have done little marketwise for a long time, appear to be showing increasingly favorable relative strength. (3) Periods of price weakness when, as and if they occur, should be used to accumulate long term growth equities. The general market is in a trading plateau with the eventual emergence on the upside. The timing of the upside penetration is the only doubtful pOint. 'f'1'iBBLL Thill market letter IS not, and under no Clrcumstnnces IS to be construed as, an offer to sell or a ('untamed hel em lS not guarllnlccd tiS to lIccurncy or completeness nnd the furnlshmj! thereof IS rQf'1,Ijl',.eq to herem The informatIOn Id..UiI 'w Itonstrued a representn. ll'u l,y Wallon & Co. rH'. All expreSSions of opinion are subJcct to chan).!e Without notice WnlSton & Co, Inc. and Officers, Directors, Stockholders and thereof, pUlchasc, sell nnd mny ha\c an Interest In the mentIOned herem Th,s market Ictter IS intended lind preqentcd merely as a genernl, InfO! mnl commentary on dilY to day mllrket news and not as a complete nnnlysis Addltionlll mformntlon With Te;pect to any Securltle9 referred to herem Will be fill nih,,j upon I equest \\.. 301

r .. .' Wdlston &Co. NEW YORK M embo1'S Now York Stock Exchange SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFices COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO TABELL'S MARKET LETTER May 9, 1958 The various averages reached new high territory for the move during the past week with the Dow-Jones Industrials at 465.14, the Dow-Jones Rails at 115.62 and the Standard & Poor's 500-Stock Index at 44.23. When the technical patterns of the averages and individual stocks are comparee, the pictures, in many instances, are quite different. The averages are approaching the upside objectives outlined by the October-December bases. As I stated at the beginning of the year, the range for the Dow-Jones Industrial average was probably 480-460 on the 1 ,on t!Ie ()wnside. ra!!ge on t Standard & Poor Index was indicated as 45-40. The rail range appears to be 116 'and 95 with a possibility of 126 on the upside, but the higher projection might come at a later date. These ranges are in line with the theory that the market is in a broad accumulation range that will take a considerable time to form. In order to form a base it is necessary to have com- paratively wide swings back and forth in a trading area such as occurred in 1947-1949 and 1951-1953. A comparable trading area for the averages is anticipated for present mer ket pattern. The duration of such a range is problematical. The averages are approaching the upper part of the trading area and some caution appears warranted. In addition, several of my technical indicators are reaching overbought territory and it is probable that, after some further strength, a technical correction might be necessary. The extent of such a correction is not clear as no top patterns have as yet been formed but I would not expecta decline beyond themrmal tech- nical bounds of one-third to two-thirds of the advance from the October lows. This proJection, combined with other indicators, would dip to 445-440 in the Dow-Jones Industrials and about 42 in the Stmdard Would be in- clined to take some trading profits and also r ble ups from holdings i order to build funds for possible buying beli -that, for the longer term, the market is building up a broad ally be penetrated on the 'up'Stde7 ,-c' , term buying opportuniti es. cO 0 The technical pat n 'n i arwsues and groups is not as clear cut as … ;-' little effect on 1 . s and considerable effect on others. I have been stressing the con g as' ues for the past nine months and they still do not appear vulnerable d pit ir rise. In addition, many new groups are begging to build up strong pote patterns and could become new market leaders on advancing phases. I mention d the liquors and textiles last week. The retail stores are be- ginning to show better relative strength along with the rails, particularly the western and southern roads. Another very interesting group IS the oils. The near term action of these groups should be watched very closely. If any new lows are to be reached, they will probably be found in groups that have been showing poor relative strength on the advance such as the chemicals, rubbers, auto and auto equipment and the heavy industry stocks, but even here individual'issues in each group have diverse patterns. BELL &. HOWELL (64 1/2) has shown excellent market action since originally recommended at around 4'Oand has abiiut'reached-ifs-interme'diate term object ive. We are therefore eliminating it from the recommended list for possible rebuying at a lower level. The long term objective is much higher and the stock should be held by long term investors who ignore intermediate term moves. EDMUND W. TABELL WALSTON & CO. INC. Thl' nlarket lctwr is nol anrl under no Clrcumstnnces 10; to loe cOnl,trucri !l.S, an offer to sell or u aohCltatlon to Iouy flny securities referred to herem The mformatlon ('ontnmed herein IS not as to accuracy or completeness dod the thereof IS not, and under no circumstances IS to be construed as, a Tcpresenta. iwn b) \\'alston & Co, Inc All e'lpre'5SlonS of OPimon are subJect to change ..,thout notice Walston & Co., Inc, and Officers, Directors, Stockholders and mr1 mnl thereof, cllmmentary on d,l), to and may have an mterest m ,lay market news and not a' a the ecuntles mentIOned herein ThiS complete analYSIS AdditIOnal mform market letter 15 I atlon WIth 1CSI'ect ntended to any and sccu presented merely IlS ntle, referred to her enmgen.Je!rable, fUI lIP'OlI rel')uest \\ N 301

NEW YORK Walston &- Co. – – – – – I n c – – – Members New York Stock E,rchange SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST CONNECTEO BY O/ReeT PRIVATe WIRe SYSTEM CHICAGO TABELL'S MARKET LETTER May 16, 1958 Faced with disturbing developments abroad, the stock market declined sharply 0 Wednesday, but recovered some of its losses later in the week. At the intra-day lows of the week, the Dow-Jones Industrials at 453.84 were down over ten points from the recent high of 465.14 and the Standard & Poor's 500-Stock Index was down over a point from the recent high of 44.23 to 42.91. As noted in last week's letter, a technical correction of the advance from the October lows is needed. No definite tops have been formed but a correction could retrace a third to two-thirds of the advance from the October lows. Thi cou1ameaii'adecline to roughly'the 443430-range in-the 42-40,.range on the & Poor 500-Stock Index. I have mentioned several times in my letter that I felt the market, as measured by the averages, was building up a wide accumulation base similar to 1946-1949 and 1951 1953. I believe that the market will, therefore, hold in a wide trading range bounded roughly by 460-480 on the upside and 430-420 on the downside for quite some time. The market is, in my opinion, in the early stages of this trading area. It may continue to hold in such a trading range for as long as two years. The economy probably has about reached its low paint, but it may be quite some time before it again advances sharply. Another factor that indicates a longer consolidation area is that the market is much higher today, in terms of price/earnings ratios, than in either 1949 or 1953. This is particularly true in the case of the high grade blue chip issues. Let us take 1953 as an example. The Dow-Jones Industrials started an advance in September 1953 from 254 that finally culminated in a high of 525 in April 1956. The market started its advance while business was still declining. The Federal of Production was 133 in September 1953 and did not reach its low of 123 u '1 f P954 by which time the Dow-Jones Industrials had advanced to R subsequently reached a high of 147 in late 1956. Thus, a case be ma at the present mar- ..,ket is similar ady.ance in in h . ueyon!. many stocks are greatly overvalued as 't 953 he table below shows \ \ JEarned 1953 Earned Recent 1958-Est. Price PiE Ratio Union Carbide. Goodrich 0 35 13.4 19.4 8.6 2.10 3.10 4.00 59 86 54 28.1 27.7 13.5 These three i s, based on a continuation of the trend of the 1958 first quar- ter, will earn abou e same amount as in 1953 yet General Electric, for example, is selling at 58 7/8 today as compared with an average price of 26 in 1953 and at 28 times earnings as compared with 13.4 times earnings in 1953. This, fortunately, is not true of the entire market. Some of the consumer goods type issues that we have been recommending over the past nine months compare favorably with 1953 ratios First Nat'l Stores National Dairy Philip Morris' Zenith Radio Earned 1953 4.17 2.32 5.01 6.31 Aver. Price 1953 47 31 48 37 PiE R-at-io 11. 3 13.4 6 5.9 Earned 1958-Est. 5.75 3.40 5.25 ;;. 10.00 Recent Price 64 45 54 w-75 PiE Ratio 11.1 13.2 10.3' 7.5 – It will be seen that these three consumer goods issues and special situations are still modestly priced. In terms of the general market, it appears that a great many issues are too high to support a further price rise at this point. A Etnp carr.ir.gs inCrEase is needed for the market to move above the 460-480 level and that does not appear to be a near term possibility. Therefore, a long continuation of the trading range is anticipated as probably earnings have about reached their lows. In the meantime, issues with still advancing earnings and issues still in declining trends, but with a chance of a nearby upward trend will still present gcod possibilities of price appreciation. I will endEavor to point oat issaes of this tYge in subsequent ietteI S. ThiS marhet letwr IS not. Ilnd under no circumstances 1'1 to be constrllcrJ IlS atl piTer to ,;cll or a 90hcltatlon to buy nny SCCllrlties refcrred to herem 'l'hc mformn.tlon cnnt(lllled hel em IS not Itunrlltltced Il'l to nCcuracy or and the funllshln)! p'IJIl Ml(htlFI() crqmJ'\l1tbt!1l1'l IT to be construed JlII, II rcprcsenta- tlUn by Wal'lton & Co, Inc All CXprelSlono; of oPInion nrc subJect to ch,llIgc &,vGo. Dlrcctors, Stockholders find Eml,luy'C') thelCQf, purchnbe, ell and may ha\e an mtreo;t In the IH!CUrltlcs mentIOned ht\1'f11l\ ….. J-fttcn;i-tl.tjIQd pre-entcd merely as a general. mf(lrhlllJ ommcntnry on day to riny mark(!t nev-s and not ns n complete analYSIS AdltlUon\W J,c,llonhes referred to herein will bc fUI upon fcqlle'll. \\-; JOI

Walston &Co. —-Inc –..;;……;… Members New YO'l'k Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO TABEll'S MARKET lETTER May 23, 1958 Perhaps spurred on by a jittery short interest, the market advanced this week, reaching highs of 463.32 on the Dow-Jones Industrial Average and 44.06 on the Standard & Poor's 500- Stock Index. This compared with 1958 highs of465.14 and 44 As mentioned before in these letters, the technical obJectives for the two averages ar 460-480 and 44-45. At current levels the market is approaching these objectives an further strength should be used to lighten unfavorable holdings and develop cash in order to repurchase more favorabl, situated groups on price weakness later on in the summer. – – – … I – – –.., …. .. -.,.- – – – 0' In last weeks letter it was mentioned that the marKet was, in all probability, building up a trading range base similar to the trading range in which the market held in 1951-1953. It was also pointed out, however, that there were a number of dissimilarities between todays market and that one, notably the considerably higher price-earnings ratio accorded most growth issues. In this connection, the following table is of interest. The theory of growth stock investment is that a growth company will continue to show rising earnings from cycle to cycle, that is from the top of one business boom to the top of the next. We have therefore calculated below the advance in earnings shown by the major companies in each investment group from each company s peak year in the 1951-1953 period, to its peak year of the 1955-1957 period. Next to that we have calculated the average percentage rise of each stock in the grou from its 1951-1953 low to the current price. Rise in earnings o 1951-3 to 1955-7 4 Aluminums 60 5 Chemicals 41 . ; 5 Electrical Equipments 5 Foods 'W c0 0 '\-. 5 Food Chains 3 Oil Producers 0,\5 164 179 5 Oil Refiners 87 4 International Oils 44 164 5 Papers 32 182 3- Soft Drinks 42 93 5 Steel I 48 183 4 Tires 20 227 5 Tobaccos 46 79 The table points up some interesting facts. First of all, it can be seen that the groups which showed the largest rise in earnings, electrical equipment and aluminums, have risen in price to an extent approximately three times the rate of their earnings rise. The group which had the second poorest earnings gain over the period, the tire companies, has actually shown the second largest rate of appreciation. c Perhaps mostcinteresting however, Js the fact that such a; foods, soft drinks and tobaccos have shown good earnings gains while advancing less than most of the other stocks included in the survey. It is to be noted that all the above stocks have advanced in price much more tha their earnings would appear to justify. This can be attributed however, to the acutely depressed level of prices which prevailed throughout the 1951-1953 period. However, the study also serves to point out that this cheapness no longer exists and that any further advance must be justified by a statistically low price plus the prospe t of improving earnings. For this reason this letter continues to recommend the so- called defensive issues where growth possibilities seem to be combined with relativ I low prices. ,ntFh1U.ELA W/XJawgStt,er is not. nnd under flO circumstances 18 to be construed ae, ('untfllned l'ierem is not Jluarnntt'cd as to nccurnc) or completeness and the tICIn by Wnlston &; Co, Inc. All expreSSIons of OPInion nre subJcct to an offer to sell or n BohcitntlOn to buy any secudheEEDlriljNarlzn thereof IS not. and under wlthout notH'(' Walston & no circumstances Co, Inc, and l tt'6e consfiUed SatlslC, -'1kl hrte1p'rdem'letaitan- m hlllplyel's thereof, purcha;e. sl'll and mny an mterest m the securItIes mentIOned herein, ThiS market letter IS 'lr'ltetLeral, inf, nJ.l\ C'()mmcntl\ry on day to day market news and not ns a completl' nnalyllls AddItional Infol mahon With respect to any Beculitiell referred to herem fUl UllOn rCfluest

NEW YORK Walston &Co. Inc. Membe,'s New York Stock Exchange SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFices COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO TABELL'S MARKET LETTER May 29, 1958 The stock market was in a pre-holiday mood for most of the abbreviated week and little progress was made in either direction. With the averages near the upper part of the anticipated broad trading area and second and third quarter earnings reports expected to furnish no new bullish ammunition, it is probable that the general market will be in either a consolidating area or a minor declining phase for the most of the summer months with the large short position furnishing the bulk of the buying support. -,IL this.analysis is the not g..!E!g .very far in either direction, probably the wiser course is to-ignore the averages and to concentrate on individual issues with improving earnings prospects. This I have attempted to do in my recommended list which was last reviewed in its entirety in my letter of April 25th. A very brief summary based largely on technical market action follows. American Can (48) continues to show above average relative strength action. First quarter earnings were steady at 41 as compared to 43 in 1957. Has held in the 49-38 range since 1954 and I expect the eventual emergence of this trading area will be on the upside. Anchor Hocking Glass (52) also shows a steady earnings pattern as contrasted with the average issue, with a first quarter report of 1.20 vs 1. 21. The stock has broken out on the upside of the 1954-1957 range of 32-42, and has a long term potential considerably above present levels. Carolina Power and Light (30) is our representative in the strong growth utility group. It appears to be in a slow longer term uptrend to the 40-45 level. iner Corp (20) showed first quarter earnings of 31 as compared with 36 in \ biJ)ity to break out on the upside of the 17-20 area in which it has I e )ehl- Vffi7 would be constructive technically. Family Finance (30) a g;wit small loan issues is showing above average action. It upside of a long trading has an upside-potential- . or– onger term. . First- National– Stores (64) has recently reached r i but still has a nearer term obJective of 70-75 and a 85. Hoffman Electronics (28) is in my opinion, one of th.!f mor a .e issues. 1958 earnings should at least equal s program and alert management should result in a sharply ical pattern continues attractive. International Minerals & e9) wed a dissapointing first quarter due to poor weather conditions and nine m s earnings for the period ended March 31st were only 95 as compared with .69 in the comparable nine months of 1957. However. the improving farm price pattern should result in a rising trend for the company and the excellent potential technical pattern would indicate much higher levels in the event of an earnings improvement. Lily Tulip Cup (76) in line with most container compan e is continuing to show above average action and has a long term potential of over 100 National Gypsum (47) showed a dip in earnings for the first quarter but this trend should be reversed shortly. Technical action is good with a recent penetration of the 1957 high. Continue to hold and add on weakness. Pan American World Airways (1'5) has been slow but relative strength action remains steady. Would continue to hold in anticipation of an expected rate increase later in the year. Phillip Morris (52) technical good, terrrl. objective 70-75. Raytheon Corp (28) has shown a sharp price advance since originally recommended but would continue to hold. Intermediate term potential is 33. United Biscuit (31) Despite the sharp first quarter earnings decline, the stock appears cheap based on the future potential. Would rate it Buy-Hold. Wilson & Co. (21) has shown excellent action since originally recommended at around 14. May need some consolidation but a much higher potential is indicated over the longer term. Zenith Radio (79) reached a new high last week. With a possible earnings potential of 10 for 1958, the stock still appears attractive. On any weakness during the summer months, I expect to enlarge the above recommended list considerabJr mnrkd letter not, lind under no Cllcumsbmces IS to be construed liS, nn offer to !'lell or 11 sohcltntlOn to bu) mlV\il'tdlliU Werlill to (unt!lincd hcn'lll IS nut gunrnnteed as to aecut ney or completeness nnd the furnishing thereof IS not, nnd under to b'e /\,\oWPfI & Co Inc All expressIOns of OPinIOn arc subject to Without notice Walston & Co TWJA .Tnlldr-8ff'CICfS. Ilna .. ,f, sell lind may hnve an Interest In the seeurltu's mentIOned herem ThIS market .,;onoral. nfurronl commentnr)' on tiny to d1)' market news and not as n complete onalysis AddltlOnol mformatlOn With respect to nny secuntlcs referred to herem Will be fUI HIIOl rCfluest \\;.. J01