Walston &- Co. Inc Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO TABELL'S MARKET LETTER August 15, 1958 The market reached its high for the week on Monday with both the Dow-Jones Indmtrials and Rails at new 1958 highs of 514.44 and 134.48. The market drifted lqwer durin the balance of the week with Friday's closing levels at 506.13 and 130. 22 The market n the first two weeks of August flattened out after the steep advance of the final two weeks 0 \\VJuly. The Industrials have held in the 514-500 range. A downside penetration 0 u 1 d indicate a further decline to the 485-480 level. This would result in a much needed technicf1 correction and place many individual issues at advantageous buying levels. \ The dog days of August are agam upon us and it would seem that the summ'er heat tends to bring about the same)evel of common stock prices-.,atJeast insQfar.Jis..the Dow- . . Jones Industrial Average is concerned. .. . . – -,'.- The Dow-Jones Average closed at 506.13. It was sellmg at approximately the same level in August a year ago and at around the same price in August, 1956. Approximately three years ago in September 1955 it sold around 490, or only 30/0 below present levels. At various times in the interim, market soothsayers have issued widely contrary opinions as to the future course of prices. The prophets of gloom and doom have predictec a decline to the 350-300 level. The optimists were convinced that the market was about to take off to unprecedented new .highs around 600-750. Neither set of prophets proved corr c It is, furthermore, unlikely that either the confirmed bull or the confirmed btar will find the type of market he is looking for over the next twelve months, for it is probable that a trading range market exactly like that which obtained for the past three years will continuE. Despite the fact that the market has moved sideways, the fortunes of individual in- vestors have been diverse, depending upon the stocks following table shows the closing price of two representat e s of the past four years (in this and other tables all p)'itnes Ii e e 7'11955 capitalization). tle period. The tlDAugust 15th in each c erted to reflect -'; 71;Stock 1957 1958 00' . On all of the the wa around the same level, yet while Texas Instruments was t 'p' P -Texas was lOSing over 800/0 of its 1955 value. Trends of' ed even within various industries. For example, in pthe chemical industr w ile n Mathieson and Allied Chemical were doing nothing, American Cyanamid vancing sharply – StocK Olin Mathieson Allied Chemical American Cyanamid -195-5 -195-6 58 1/4 59 107 1/4 109 573/8 73 1957 51 3/8 84 85 1958 36 1/8 88 98 1/4 Similar trend diversity could be found in practically every major industry represented on the New York Stock Exchange. Selected below are random examples from the steel and railroad groups – Stock -195-5 -195-6 -195-7 -195-8 Allegheny Ludlum 54 3/4 98 1/2 98 1/2 80 3/4 – — – , . U. S. Steel . – 52 – -65 1/4 67 1/4 70 3/8 – Colorado Fuel 28 1/4 31 3/8 29 1/2 20 1/2 Southern Railway Gulf, Mobile & Ohio 92 3/4 113 1/2 102 1/2 1117/8 37 1/4 33 1/4 27 1/4 , 19 1/4 The above figures serve only to prove something that this letter has maintained for a long time – namely that concentration on individual stock selections is far more fruit- ul than market predictlOn. EDMUND W. TAB ELL AWTamb WALSTON & CO. INC. Thl'l marke-t leiter IS not, find ufi,ler no Circumstance,; I to he 38, nn offer tnllell 01 n soll('ltatmn to buy an. '('C1lntles tefcrrcrf tu herem The mformatlon I'ontlllficd he-rem I' not J!l1urnntced a .. to aCC\l1 ncy or completeness and the furnlshmg thereof nut, and undel no I to be constl ued as, a II ,n by Walston &. Co Inc All CJLpre'SIOIIS of oplIllon arc subject to change \\Ithout notice Walston &. Co. Inc and Officers, Dlrcctors, Stockholdcrs an ;nploycl''' thelcof, sell amI may htl'c an mtclcst III the seCUTItles mentioned hClein ThiS market letter I Illtcmtieil and prescntcd mcreh a'l a j!cnerili. 111rl mill nmment.IrY 011 day tn dH) mnrket 11('\'9 (lnd not as n complete annlysls AddltlOJnnl InfOlmntlOn With to lin;. eel1\ltles referred to herem fUl nhhe,llllOn relluest 1i

– Walston &Co. – – – – – I n c – Membe,. New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO TABELL'S MARKET LETTER August 22, 1958 Sparked by the landing of U. S. Marines in Lebanon, the Dow-Jones Industrial Av r age advanced forty points from 472.07 to 512.27 in the hfteen trading days from July 12th to August 1st. Since that time, the Industrials have held in a trading shelf. The range fo the past fifteen trading days has been 514.44 and 499.82. The question is whether this consolidating period is a prelude to a further advance and an attack at the 1956 higharoun the 525 level or whether the market has lost its upside momentum temporarily and needs a further techmcal correction. At the moment, indications would point to the probability of a support level. The leadership poor recentl 'with much of the volume concentrated on low-priced issues selling under 15 a share. Also, both the rail and utility averages have broken out on the downside of slmilar tradin ranges, although the rails have rallied back into the shelf. If the sidewise movement of the industnals since August 1st results in a downside breakout, there is more or less of a technical vacuum between 500 and 485-480 support area WhlCh was the top of the mid- June to mid-July trading range. Similar support areas exist at 123-120 in the Rail Aver- age and around 75 in the Utilities. Friday's close was 508. 28 on the Industrials, 132.96 on the Rails, and 78.03 on the Utllities, so it can be seen that I do not anticipate at the moment much more than a rather mild technical correction of the ten-month advance from the October lows. If it occurs, it would probably present buying opportunities in favored issues. If the breakout of the trading shelf is on the upside, probably the 520 -5 30 area in the Industrials and the 138-140 area in the Rails would bring out enough selling to halt any further immediate advance. The Utilities would meet selling, in my opinion, around 80. There is no denying the fact that the market ave a em;high in terms f present earning power and dividends. Based on 0 h igu ,the Dow-Jones Industrials' earnings are estimated at about 29. pa elve months. A price of 508 capitalizes earnings at 17.2 times. . h 14.6 times earnings at the 1950-high 9 – -In– -lso-,tne iifdusfrial aver-age – at present prices is yielding only e than that obtainable from AAA bonds. However, if t e i;, big name companies, there are quite a few companies h e eld up well during the recession and whose stock is still available a ea Yleld or better. The ten stocks listed below also of vorable technical pattern and the possibility of 250/0 or 500/0 e present levels. Latest Year Price Earn. Period Ended Latest Interim Earn. Comparable 1957 Interim Amer. Fgn Pr. Bond Stores Canada Dry Divco Wayne 17 18 19 15 2.03 2.09 1. 73 1. 75 Family Fin. 30 2.39 Gimbel ' 30 Gould Natl. Bat. 35 3.69 3.72 Great. West. Sugar 28 2.82 Philip Morris '' 53 4.50 United Artists 24 3.05 12/31/57 1. 73 7/31/57 1. 36 9/30/57 95 10/31/57 .77 6/30/57 1.69 1/31/58 3.42 4/30/58 .65 (E) 2/28/58 N.A. 12/31/57 2.13 12/31/57 .59 1. 60 1. 53 1. 06 .61 1. 78 3.76 90 N.A. 2.02 .53 -J,.- On my recommended list. Period 0/0 Yield 12 mos. March 6 mos.Jan. 9 mos.June 6 mos. April 5.9 6.9 5.3 5.3 9 mos. March 5.3 12 mos. April 5. 3… 3 mos.July 5.7 6 mos. June 5.7 5.7 3 mos. March 6.7 EDMUND W. TAB ELL WALSTON & CO. INC. Thl'! mnrk(l letter ); not and undel no Circumstances IS to be con;.trued \11 oITer to sell 01 a sohuf.atlon to bu)' any to herem The mfrmatlOli I'nntlllncd hel('1n I nul U.lr!llltCE'd ll'l to ,lc!urm.)' r and the thereof IS nul, anti undel no Cllcumstances lS to bc constlued as, n rCllre,,-entn- li'HI hy \Vnlton & Co Inr All expre551Om, uf OPlUlon nrc 'luhJcct to change \'llhout notlre Wal;ton & Co, Inc, and Officer, DnectOIS, Stockholders and EmplH'c thel c(Jf. 11urrhae, eli and may ha\e an Interest III the seCUrities mentIOned hel eln Thl; market letter IS Intcndc.1 '\111 pre;ent('(l mel ely as n gene! al. II1fUlmnl ,(lmmclltnlv on .IIY tu .hy m,uket ncws and 1I0t as n complete nn,lb';I Addllll)lUil JllfOlmatlon lth lC!lj'cd to lillY refellcl\ tn hClCln wdl h( flllill-lhod UpOIl re'l\lest \\), 301

NEW YORK W—d-l-sItnocn.-&-C–o-. Memben New York Stock EXchange SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO fABELL'S MARKET LETTER August 29, 1958 The Dow-Jones Industrials have now held in a relatively narrow trading shelf for twenty trading days. The high during this period has been 514.44 and the low 499.82. For a time this week it appeared that the breakout would be on the upside. The Industrials advanced for seven consecutive days, but managed to reach a high of only 513.33 on Wednesday. The subsequent dip carried down to 505.60 on Friday, but the market closed above the low of the day at 508.63. The Industrials during the month of August have made three successive tops at A12. 27and.5L4. 44-and. 513. 33. on this -a.possibletriple top pattern. About the same pattern prevails in the Rail average with comparable tops at 134.37 and 134.48, and 134.42,and a low of 128.10. If the averages sell below the August lows, it would indicate that the trading shelf of the past twenty trading days has been a distributional top. It is also interesting to note that the uptrend lines connecting the various lows since the April lows of 437.25 on the Industrials and 100.00 on the Rails now stand at approximately 500 and 129.50. A downside penetration of these uptrend lines would also be bearish for the nearer term. Unless the averages reach a new high early in September, they will move below the uptrend lines which are, of course, slowly moving higher. A failure to follow this uptrend line into new territory in the next two weeks would indicate a loss of the strong upside momentum which has pre- vailed since April. It appears that the market will witness an important test of the price structure in the first two weeks of September. Ability to break area on the up- side would indicate a continued desire by the investor and p c a rdio acquire common stocks. A failure to reach new high territory t t e a technical correction and probably a lengthy consolidating h vance is resumed. A possible clue to the direction of the next -This averagehasnotonly br-oken out the Utility average. ide,o' -ewlhtrading-ar-ea, but-has- . – -. also broken its uptrend line from nlike the other two averages, it has failed to rally in the a new low since June during the past week. Whether the pro e ac . n ll' is due solely to the decline in the bond market, or whether i t indIO indicating a decline in the general mar- ket, is still prob aw cor ion when, as and if it occurs, should be relatively mild. There is a support Ie at around the 485-480 level in the Industrials, and 123-120 level in the Rails. nless the potential tops already formed broaden considerably, that is about all that is indicated on the downside. It is my opinion that the market is in a broad accumulation area between roughly 525 and 460 and any general market weakness should be used to acquire recommended issues. A number of the issues in my recommended list reached new high territory for 1957 and 1958 during the past several days. Included in this category are WILSON & CO. (257/8) which reached a high of 271/2, FAMILY FINANCE (30 5/8) at a high of 31, GIMBEL BROS. (30 3/8) at a new high of 31 1/2, HOFFMAN ELECTRONICS (307/8) at a new high of 307/8, LILY TULIP (86 5/8) at a high of 88, and ZENITH RADIO (951/2) at a high of 97 7/8. All of these issues have been reaching ne.Y' high territory quite consistently, but a welcome addition to TIONAL MINERALS AND CHEMICAL (32), a stock which has tried my patience qUlte some hme. International Minerals fmally broke out on the upside of the long 26-31 range in which It has held since late 1956. The stock reached 32 and now has a strong techmcal pattern. I have suggested profit-takmg on several other Issues in the list over the past several weeks, so my recommended list (last reviewed on August 8th) is relatively small. I mtend to add to It during periods of market weakness. EDMUND W. TABELL l,u.. Is5TOJT ie CO, lWe, Thl' mnrhet letter IS not, nnd under no Circumstances is to be COn'ltrued HS, nn offer to sell or n sohcIlation to buy any !';CCUrltIC'I referred to herem The infOrmatIOn ,'ont,uncd hel em IS not g'ullrantcei as to accuracy or completeness and the furnlshln).!' thereof 1'1 not, and under no cireumstances is to be construed as, II, rcpresenta. tum by Walston & Co, lnc All expressIOns of OPInion are subject to chllnlie \\Ithout notice. Walston & Co, Inc, and Officers, Directors, Stockholders and Emlluyees thereof, purchasc, scll and mlly have an mterest m the IccuritlCS mentioned herem ThiS market letter IS mtended and presented merely as Il general, 1ll!1)1 mill ('fmmentar) on dny to ,Iny market news and not us a complete AddltlOnni mlormntlon with lespcd to any seCUritIes referred to hcrcm Will be upon N 301

—— – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – — Walston &Co. Inc Members New yo,-k Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO TAIELL'S MARKET LETTER September 5, 1958 The market still remains in a trading shelf. The Dow-Jones Industrials managed to better the previous August intra-day high of 514.44 by a small amount to reach 516.59 on Thursday, but failed to follow through. Friday's close was512.77. The rail average just about reached its comparable high of 134.48 at 134.46 on Thursday. Friday's close was 132.43. Various other averages just about reached their previous highs. By all accepted statistical yardsticks the stock market is high. Based on earnings for the 12 months ended June 30th, the D-J Industrials are selling at 17.4 times earnings,and based on estimated earnings for the 12 months ending Sept. 30th, the average is selling at 18 .9.times earnings.This)s the highest ,p./ E ratio ,the pJE ratio reached roughly, 21 times earnings. It compares also with 14.6 times earnings at the 1956 high, and 15.2 times earnings at the 1957 high. Also, the bond-stock yield spread of 0.20 is the smallest since mid-November, 1936. On Central Value, which we have mentioned several times in this letter, the market is also high. Based on 27 earnings on the D-J. Industrials for 1958,and capitalizing these earnings at twice the yield of AAA bonds of 3.8 shows a central or normal value of 387. Allowing for 20'70 above normal in a period of high investor confidence works out to 465. At 513, the D-J Industrials are over valued on Ben Graham's Central Value Theory. However, when we look at the market from a technical viewpoint the picture does not seem particularly ominous. Breadth-of-the market action on volume, for example, conti- nues to show no signs of deterioration. The 10-week moving total of upside volume is at the highest level since early 1955, and the 10-week downside volume is at the lows of the last 45 months. This is also true on the longer term 25-week moving totals. In fact, on this longer term graph the downside volume is the lowest s e 't)hen the 1953 to 1956 bull market was in its early stages. It is only on th)hiffiov n t vances and de- clines that some slight signs of deterioration – es' to note that despite 0the rise in the averages, the market has become its high he 10-week moving is,sues cmg smce that tlme. 1I;1so, the num!r' reached its low at the same time;, lg S on the lO-week movmg basls . c8t number of declining stocks has been showing an increase. This the longer term 25-week moving totals, but the trend is h ,t' type of action can continue for quite some time before it results' a 1 r situation. On the pOint an ' r h there are yet no signs of any great vulnerability. Quite a few groups have re he eir immediate upside objectives, but there are no really dangerous top format' formed as yet. The same thing is true of the point and figure charts of the various averages. In most cases they have reached upside objectives, or are very close to it. Also, the averages and some individual stocks are in areas of heavy supply, as is evidenced by the action of the past month. It appears, as mentioned in re- cent letters, that the market may be forming a broad accumulation area very similar to 1946 to 1949,with the major part of the work being done in an area bounded roughly by 525 and 460. I believe that the opinion held by many investors and analysts that the present advance from the October lows is merely a rally in a bear market must be abandoned. Breadth and scope of the buying has been too substantial to be written off as a mere speculative phase. However, I do not believe that this is the start ofa major advance.On the averages and in individual groups and stocks, there appears to be more work needed to build up a patternsimilar to the1946 to 1949 accumulation range. This should result in considerable backing and filling in an area bounded roughly by the aforementioned 525 to 460. On a short term basis, the market appears overbought. It is possible that a buy- ing climax might occur that could carry the market back to the 1956 highs, or even slight- ly higher, but it is difficult to read much beyond that. On the other hand, a decline below 500 would probably indicate a technical correction to at least the 485-480 level. That is the first support pOint. The second downside resistance level would be around 460 in the averages. The prospects, therefore, appear to be that the market, as measured by the averages is probably reaching a temporary top but that the overall picture is one of strength and that any declines will do not much more than retrace a third to a half of the advance from the Oct. lows. Obviously, while this applies to the averages, it will not apply to individual groups and issues. Some will show above average action and others below i;l,g.gc P'1.rtlTt'''ttt''Wa'Mt\')\-I; …,.. ..''f'''''''''' Qn.cQtd wdi'lfi.d1.la.l s, tllna!luJatedI7M('0mb, lslWo..h'm.mado'.r'e0fo,ipm'ffi..CnCa', 'ii1n.';tai'a and Officers, Directors. Stockholders and Empluyees thereof. purchase sell and may hnve nn mtere'lt in the sccurilles mentioned herem ThiS market ctter IS lIlfm mnl commentary on dny to market Ile\\'l! not as a complete nnaisls Addlt1(lnai InfOI matton With respect rr.d J fu! llI..hci III)On request 0

Wdlston &Co. Inc, – – – – – -' Members New YOTk Stock EXchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO TABELL'S MARKET LETTER September 12, 1958 The market continues to forge merrily ahead, and this week it came close to rea ing newall-time high ground. The intra-week high of 523.57 on the Dow-Jones Industria Average came close to penetrating the triple top at 524.37, 523.33 and 523.11 formed in June 1956, August 1956, and July 1957. As has been pointed out regularly by this letter, the market is high. It is high by all statistical yardsticks and this very level makes it vul nerable. As was pOinted out last week, earnings are being capitalized at a record rate, and the spread between stock and bond yields is constantly narrowing. An interesting indi cation of this is that Sears Roebuck last week sold a major debenture issue which was priced to yield considerably more than the company's common stock. There is no particu lar rule that says that stocKS must yield more than bonds. Indeed,-there are a number of reasons why they can in many cases yield less than senior securities; among them, inflation and the prospect of increasing income over a period of time. One fact worth noting though, is that many institutions, particularly those with dollar obligations, such as insurance companies, are predominantly yield-oriented. There is, therefore, little reaso to expect that buying from this source will provide a further stimulus to equity prices. The high level of the averages, however, should not deter the investor from see ing value in individual situations. During the whole period from October 1957 to date, while the Dow average was moving ahead some hundred points, a great number of stocks have done little or nothing. Many of the international oils, for example, fall into this class. One of the largest, GULF OIL, has held in a relatively modest trading range between 119 and 101 and, at current levels, is selling only slightly above its two-year low. Ostensibly, this is due to nervousness over the and a fear that Gulf's extensive holdings in the Far East may be expropr a e het-wise disturbed. A hard IO,ok at the economic facts of life in the ,e I son to fear such happenmgs. Cruele oil by itself is worthless. t'o–gj, 'value to the owners, i. e., the Middle East kingdoms, it is well to remember the fOiWS' – thiS connection, Wo roved by the Iranian debacle of 1951, only the international oil com n h e to refine and transport oil, (2) Around half the refi 'n as rude takes place outside of the Middle East, and the Middle East c t e ly equipped to build refineries. (3) The only natura volume market for ' e rude is in Western Europe where marketing facilities are largely controlle b international oil companies. It would thus seem that, while some rearrangemen the profit s p lit may take place, it is inconceivable that the international companies could be .denied access to Middle East oil for any length of time. Granting the above premises, Gulf Oil appears fairly valued at current levels. Estimated earnings of 8.50 – 9.00 a share for 1958 give the stock a price earnings ratio of around 13. Actual earnings,however, do not give a true picture of Gulf's potential. Depreciation and depletion charges generally run about equal to after-tax earnings and the small pay-out ratio means that a large amount of cash is plowed back annually, thus, sharply increaSing the net worth of the company. In this connection it is interesting to note that Gulf has managed to average better than 25 cash earnings on its net worth over the past five years. Thus, while earnings will be off for 1958,.there is no reason not to expect longer term growth to continue. Since the stock has advanced little in the recent bull market, it is strongly possible that the trading shelf in which it has held constitutes an accumula;tion area. In this connection an upside breakout of the 101-119 range would indicate a,n upside ob- jective of 150-170. It would appear as more investors realize that East diffi- culties may be largely transitory that this upside breakout could well take;place and the stock is being added to our recommended list for purchase around current levels in long term investment accounts. \ EDMUND W. TABELL AWTamb WALSTON & CO. INC. , ThiS mill k'l iettlr IS 110t and under no CIrcumstances to be construed as, nn offer to sdl or n soLICitatIOn to buy any securlties referred to herem The informntlOn 'ntlllneol hf'lein IS lIot /.!unrnnteed n.' to accuracy or completeness and the furnishing thereof IS not, and under no Clrcumst.mceg IS to be construed as. a rePresenta- tIOn hy \\nlstol\ & Co. Inc All expre;lOns of opinIon nre subject to ch.lnge Without notlf'C \\'alston & Co. Inc. and Officers, Dutclnrs. Stockholders and lmllluyees theleof. pUlchi\;c, ;cll and may have an interest In the securltlC'l mentIOned hereIn ThIS mark..t letter IS Intended and IJresenled merely as n general. 1I1fllrmni (lmmentm y on dny to mnrket ne,,'! and not as a complete nnnly.!lIs AddItIOnal InfOI mahon lth re-pcct to any secUllhes rUel red to herein Will be fill upon reflu(';t \ \\-; 301 \ \

-….. NEW YORK Wdlston &Co. Inc Membe1'S Ne,u Y01'k Stock El'clwrlge SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO TABELL'S MARKET LETTER September 19, 1958 Bullish sentiment continues to grow and the market pushes on to new highs. The intr. week high of527. 74 on the Dow-Jones Industrial average pushed this average into new alltime high territory. The Standard & Poor 500 -Stock Index at an intra-week high of 49.71 i flirting with its all-time high of 49. 74. Meanwhile, the pundits continue to argue about market action. The bears point out that the market, based on current earnings and dividends, is at levels reminiscent of pre vious major tops. The bulls, on the other hand, point to indications of continued inflation and a new-business can -be expected,to increase earnings and carry the marke to new highs. Whichever school of thought eventually proves to be correct, it would seem possible to strike a happy medium by purchasing stocks which are still fairly valued on a historica basis and which are in a position to participate in any future business boom. There are, it would appear, a number of such opportunities available in today's stock market. A large number of these opportunities are to be found in industries which will benefi from a maJor change in consumer spending patternEl, which now appears to be taking placE. This change is, basically, away from maJor appliances, automobiles and consumer durabl and toward soft goods and other semi-luxury items. The signs are beginning to appear th t the consumer is turning away from the powerful automobile as a status symbol and is now beginning to spend his money on such items as clothes, cosmetics, soft drinks, alcoholic beverages, airline trips, and other such goods. This change is not yet well defined, but enough economic barometers point in this direction to make th e investor sit up and take noticeCompanies that will benefit from this trend have ngglectejbytheinvest ing public over the past decade. They include the s e, m of which have bro- ken out of long accumulation bases and from a techn c poin 0 'ew appear headed for mllh..higher l;e;e)s. ist E'a willLse! ne,aI1-time and that total 1958 volume, despite reach new highs. Further expansio 's w-d by the recession, could well e or 959, and, on improving margins, earnings could increase !!ft33 1/2) on our recommended list, this week posted a the public for ma a ha a upside objective of 43-45. Also neglected by e hing companies, both in the manufacturing and retail field. HAR 0;; MARX (31), a leading manufacturer of men's cloth- ing, provides a bett t an yield on a dividend earned better than twice over, based on ten-year average e gs. Its pre-eminent position in the clothing field should as- sure participation in ny growth in clothing expenditures. The stock has an upside ob- jective of 55. BOND STORES (19 5/8) a leading retailer of men's clothing, is in the po- sition with a well covered dividend providing a generous yield. Upside objective here is 30, followed by higher levels. Despite the recent flurry caused by the new Federal Excise Tax law, distilling shares still have attraction and population figures indicate that consumption of alcoholic beverages is probably just beginning an uptrend. AMERICAN DISTILLING (34 3/4) which is in our recommended list, appears attractive with an upside objective of 40 fol- lowed by a possible 67. An uptrend has already been confirmed in soft drink consump- tion and both CANADA DRY (18 1/8) WIth an upside obJective of 29, and COCA COLA (1141/2) with an upside obJective of 160; have merit. – — – The list could be extended into many other fields. It would include many airlines, finance companies, cosmetic and toiletry producers, and others. Since most of these stocks have done nothing marketwise for many years, the upside potentials inherent in the accumulation bases formed are enormous. If present signs are correct, the Ameri- can consumer, exercising his free choice in the marketplace, may reward the patient investor in these stocks. AWTbf EDMUND W. TABELL WALSTON & CO. INC. Thb IHark(!llcttCT 15 not, nnd under no 15 to be construed as, an offer to or n soliCitation to buy nil) ;ccuntles refel red to herem The mformatlon (untamf'd herem IS not J!U1lranteed as to accuracy or completeness and the fUI nlshlflJ! thereof IS not. and under no cIrcumstances IS to be eonstrued os. a representa- tum lIy Yo'iliston &. Co, Inc All expressIons of OI)nIOn ore subJect to chonge WIthout nollce Walston & Co. Inc., and OffIcers, DIrectors, Stockholdcrs and lmpluet's thereof, sell and moy have an mterest In the mentIOned herem ThiS market letter IS Intended and presented merely os II. general, Illrul'mai cnmmentary on day to day market news 81ld not as a complete analYSIS AddItional information \Hth respect to ony securItIes referred to herem Will bf! fUl m ..h,cd IIPOII ref')uest \\ 3Dl

, —- Walston &Co. Inc M cmbas New YOk Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER September 26, 1958 Volume of trading was heavy during the past week with considerable churning of prices back and forth without too much upward progress except in indiv1dual issues. The Industrial average reached a new intra-day high of529.59,just a shade above the previous week's high of 530.68. The Rails did relatively better with a high of 143.41 compared with 140.59 in the previous week. It is quite obvious that after six months 9f almost uninterrupted advance, the market somewhere along the line is going to witness a technical correction of greater proportions than any witnessed since April. Just when and where it will happen is not .. It could occur from somewhere around present levels. On my technical work it is rather difficult to read the averages much higher than about 540-530 on the Dow-Jones Indus- trials,and about 144 on the Dow-Jones Rails,without an intervening correction. Standard Poor's Industrial Index has an objective of 531/2. Friday's close was53.15.However, trying to mastermind the general market has not been a very rewarding endeavor. It has been much more rewarding to attempt to interpret the market action of individual issues. Below is a resume of the issues in my recommended list. One of the more spectacular performers has been ZENITH RADIO (119 1/2) Recommended at the equivalent of 60 on the present stock about a year ago, Zenith has advanced over 100 and reached a high of 134 7/8 during the past week. The long term objective is 140 after which, under normal technical action, a long conSOlidating period might occur. Would take profits on further strength in the 120-140 zone. I continue to I ike the radiO-TV group and suggest a look at MAGNA VO 0 stock has held in the broad 29-44 range for over three years and be n a e breakout. HOFFMAN ELECTRONICS (29) ',is also on my from 22, but suggest continued retention and .partment store stocks have shown 'st. as moved up . min rice dips. The de- ahlW'n my selection on the d.. .35 . I continue to like this stock and the g!),eX ,and would add to holdings during periods of market 1 1 my choice has been PAN AMERICAN- WORLD AIRWAYS (20 re cli d a new high at 203/4 on Fnday. Would continue to hold t n . mcrease in rates is probable near the turn of the year. The bui p continues to show above average action. On my recommended list is A L GYPSUM (55 1/4). The building group, aided by favor- able new bU11ding star should work higher. I also like FLINTKOTE (48 3/4) and would buy it in the 4 -45 range. I believe that the container group has excellent long term prospects. This is evidenced by the fact that four container stocks are on my recommended list. All four show nice profits, but continued retention is advised. One is ANCHOR HOCKING GLASS (54) in the glass container field, one other, AMERICAN CAN (49 1/8) in the tin can division, and the other two are mainly papers. They are CONTAINER CORP. (25 1/8) and LILY TULIP CUP (85 1/2). The fertilizer group also san . upside potential and I continue to like INTERNATIONAL MINERALS & CHEMICAL (31 1/4). This stock has a very substantial upside potential and not too much downside risk from a technical viewpoint. The finance group has favorable technical rns and most stocks in the group have attractive yields. I continue to like FAMILY ANCE (28 1/2), with a yield of 5 1/2,,/0. In the baking group my selection, UNITED BISCUIT (30 1/4) has'been a-c-dud so fat continue to'bepatient. – The IIi eat king group has been showing above average action, but the best stock in my opinion WILSON & CO. (27 1/8). Despite its rise from a recommended level of 15, I believe still has an interesting upside potential. A recent Hddition to the list m the inter- tional oil group is GULF OIL(116 3/8). The stock is not too far away from its two- ear low and has held in the narrow 101-119 range for almost mne months. An upside enetration would be very encouraging technically. In the tobacco group, I like MORRIS (54 1/4). The upside potential 1S sizeable and the Y1eld 1S an attract- EDMUND W. TABELL V/ILS'f'OPJ & CO. litC. Thl I1\nrkct leUer IS not and under no CITcum;tancC'I IS to be construed as, an offer to sell or a sohcltnllOn to huy an) securities referred to hereIn The mformntlOn (llntntn'd herem not Juornntced n; to accurllCY or completeness and the fUTnJ;hmg thereof IS not, and under no CIrcumstances IS to be construed as, n rcprcsenln- tUJI! ii \\ ,00…tOIl l. Co Inc All c).prCSSlOns of opInion nr subject to change notice, Walston & Co. Inc. nnn Officers, Directors. Stockholders lind !'lI1pJy,t.' thereof, 'lcll and have nn ll1t(l(t In the securitIes mentIoned helcm fhl'; mllTkcl letter HI Intended and pre;ente! merely liS n IUrI'rn,1l ('Illm('ntnl) on d \) to lias m.lrkeot nc\,.'5 lind not 11'1 n complete nnniVl'as Addltlonni mformntlOn With reSllect to any seCUrities referred to hClcln Joi rlll 111-111'1 ll\!(ll\ 1Cfjucst

Walston &Co.—–lnc NEW YORK 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 October 3, 1958 The Dow-Jones Industrials reached a new intra-day high of 536.82 during the pa week as compared with the previous week's high of 530.86 and the 1956 peak of 524.37. However, as pomted out in an article in the October 1st issue of Forbes, while the thirty stocks in the Dow-Jones Industrial average collectively reached a new high, the action of each stock indIvidually has been quite different. In September, when the average passed the 1956 high, only ten stocks of the thirty were above the 1956 highs. Nineteen were slightly lower or sharply lower, and one was unchanged .The stocks that showed the greatest advance over their 1956 highs were Corn Products and General Foods, both up about 400/0, Eastman Kodak up about 350/0, and Procter & Gamble up 200/0. Three of these are s-tocks. In tfftneavy U. S. Steel and General Electric were in the group of ten stocks that showed gains over the 1956 highs. Among the laggard groups are the oil stocks. Most of the oils reached their hIghs in July, 1957 and their lows in February of this year. The table below shows the price, action of the Standard & Poor's group averages of the three divisions of the oil companies July 1957 High Feb. 1958 Low Oct. 1st Decline Price Decline Recovered Crude Producers 184.1 Domestic Integrated Oils 71.43 Inte rnational Oils 96. 78 113.4 45.74 69.66 38 153.79 36 60.65 28 84.84 57 58 55 '' Made High August, 1956 It will be noted that while all the groups have had percentage price recovery from their lows, the international oils de9tined h 1 their 1956-1957 highs. While the oils have been laggards in the ec al work indicates the probability of improved price action in t termediate term. I be- WIll I The indivIdual pnce dlverse as the table the internatlOnal group has been qUIte 1958 Low Declme Oct. 2nd Decline PrIce Recovered Getty 011 9 1/8 Gulf 011 152 Roya10utch 60 3/8 Shell Transport 29 3/4 So cony Mobil 66 A Stand.OilofCahforma 597/8 Stand. 011 of New Jersey 68 1/2 Texas Company 76 1/2 17 3/8 B 101 37 1/4 17 1/8 441/2 431/4 47 1/2 54 3/8 B 56 33 38 42 32 28 31 29 28 46 120 38 48 47 22 30 49 20 56 82 59 54 78 107 A – Reached high in 1956 B – Reached low m 1957 Texas Company and Standard all of California have shown the best price actlOn m the group. They declmedthe.least percentagewlse and have recovered .themost. Socony , Mobil has been a laggard on the recovery. I added GULF OIL to my recommended list three weeks ago at around 110. The stock had held in the 101-119 range for almost a year. This week Gulf Oil broke out on the upside of thlS long trading shelf and, from a technical viewpoint, indicates higher levels. I suggest you again read my letter of September 12th for additional comment on this Issue. Technically, the oils appear to offer mteresting profit possibihties over the intermediate term of the next six months or more. Three stocks wlth interesting possibll- lties and ,11 at different price levels are GULF OIL (120 1/8) ROY AL DUTCH (48 1/4) and SH8!.I, TB ANSPOB T (22) A S a more speclliatiye sltuation. GETTY OIL (27 1/4) also i; not. nnd under no Clrcumo;tances IS to be construed as, an offer to sell or n sollcltntlOn to bu)o nny 'll'cuntJes referred to herem The InformatIon 1utnHiflllfil'tclli not I-'lIllI nntccd us to accuracy or completeness and the fUI nlshlnJ. 'II.li.cJtfJlm1l-C f IS to be I'onstrued as, a represenln- tW!l bv \\llJ-.(on &. Co Inc All of opinion are suhJect to chanJ.c wlthI)lJl.tYW.l!UjlIj,Um\i&' Co.L,1lbQJln.IL..IOJflcen, Directors. Stockholders and 1,1111'11\'1'''' thtll'''f, J\UILhu'l(', sell and may have nn Interest iO the seellntles mentf)neri-herwnr presented merely al a general, 111(1111.11 I mment 1\)0 on (Ill to m..trl..et news and oat Il'l a complete referred to helelO will be fUI 111)(011 request \\ 301

. ,5 NEW YORK W—-a–l-s-tIonnc–&—-C–o-. 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 October 10, 1!35 8 , In last week's letter, I mentioned the oil group as a hitherto laggard group that is eginning to show improving technical action. Another group in this category is the chemicals. The Standard & Poor's chemical group index reached a high of 51.54 in ril, 1956, and declined 26 to a low of 37.97 in November, 1957. At Wednesday's level of 46.84, the chemical group index had recovered 630/0 of the decline as compared with a recovery of 110 by the Standard & Poor industrial stock index. The action of individual stocks in the group has been quite diverse as noted in the table below. Reduction l.n,..w.d Chemical erican Cyanamid rican Potash Chemetron Diamond Alkali Dow Chemical DuPont Hercules Powder Hooker Chemical Monsanto Olin Mathieson & Haas I,,,Ill''' Chemical ltllftpl Chemical Carbide r low 1956-1957 1957 High- — -Low 653/4 1291/2 48 1/4 66 3/4 503/8 605/8 827/8 2493/4 51 1/2 52 1/4 525/8 647/8 71 510 77 1/4 83 1/4 1333/8 45 3/4 68 1/2 33 1/8 333/8 30 297/8 49 160 3/4 35 22 1/2 297/8 311/2 48 1/2 285 45 1/4 545/8 83 DeCline 30 47 31 50 40 51 41 37 31 57 43 51 32 \Y — Oct. 9th Decline Pri-ce .. — RecoverecF– 71 7/8 943/4 52 1/2 49 373/4 43 663/8 204 47 1/2 35 1/4 373/4 1l2 /4 80 115 1/2 131 43 128 47 38 43 51 49 78 43 35 28 93 69 63 89 64 44— – Air d amid have the best record. They declined the ast and have mo t heir entire loss. If it were not for the above aver- e performance of s is , the chemical group index would have shown a much oorer performance. . 1956, most of the chemical stocks have been among the st performers in e market — not only from the viewpoint of the steep decline f-rom high, but also in their mediocre recovery from the lows despite the sharp rise in the Ige,neral market since the first of the year. However, the technical action of many of the issues in the group is beginning to show definite signs of improvement. Chemical companies have been plagued since 1956 lowered profit margins which is the main reason for their poor performance. There some ind1cations that this situation is changing for the better. There have been indi- Ic,us of improving profit margins in the general business pattern. The third quarter 1,rnLnP''; reports of the chemical companies will be scanned eagerly to see if there are as t tangible signs of this development in the chemical industry. From a technical viewpoint, quite a few of the chemicals now appear to be a pur- I,b for long term,holding. HERCULES.POWDER-(48 1/8) 1S showing favorable technical lacuu'n and I am adding it to my recommended list. Earnings have held up comparatively for the industry w1th 89 a share shown for the first six months of 1958 compared 1.03 in 1957. Company faces better prospects for the second half of 1958 due to elief from plant start-up expenses and the contribution to sales made by the firm's new stic, polypropylene.According to management, this product opens a whole new field of stic chemistry. This company will be reviewed in more detail later. The technical pat- rn is good. An upside penetration of the broad 35-51 range ,in which the stock has held since early 1955, would indicate an ultimate potential of 75-95 from a technical viewpoint. Other attractive technical patterns in the chemical group include HOOKER (35 1/2) SANTO C (387/8) and PENNSALT CHEMICAL (71). The stock of a ;;HllalJ''I –,

I 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 October 17, 1958 The stock market covered a wide range of territory in the past week. After reaching an intra-day high of 549.71 on Tuesday, the Dow-Jones Industrials dropped twenty pOints to an early Thursday low of 529.42. This loss was almost entirely re- covered at Friday's high of 548.97. It is necessary to go back to the hectic down mar- kets of October a year ago to find a swing comparable to the forty-point range of the past three trading days. Percentagewise, the decline of the past week of 3.6 was the steepest decline witnessed since the present advance started in April. Has it any important technical significanc-e- From both a shorter term' and -iilt'errmediate term-poiht'Of view;-itTS a'bit too soon to answer that question definitely. Action of the market in the 550-530 range in the next few days should furnish a clue. Inability of the market to move out of this area on the upside would indicate the possibility of a potential top formation, and the end of the first phase of the advance. From a longer term point of view, I do not think last week's decline has any great significance. From a technical viewpoint, I think the market is headed higher over the long term. The graphs of the averages indicate this, but much more important is the fact that the graphs of the great majority of individual stocks have favorable long term pat- terns. The conclusion to be drawn from my technical work is that we are in a major upswing that will continue for quite some time. The only que stion is whether the straight line advance is to continue with only minor interruptions or whether we are near the end of the first phase of the advance, with the necessity of a further technical correction and some consolidation before the long term advance The base formed in the Industrial average in t 4 0 is resumed. r.nge during the six- month period between October last year and April 490 followed by a later 530-540. The Industrials r hesitated only momentarily. By mid-July dva a Wd t as of 480jective in June and med and the market has' Ii -novl'moved-ahead to-sH-ghtl-y above the-5-30 -5 – t ntia – .' e-time.-table-.oCtheadanc.e…… – has been greatly accelerated by the ticipated. It appears that e r r ery in business than generally an- 9Ml1ls will be near a new peak and that earn- ings in 1959 at new this rapid improve n in5il\s e of the market may have discounted e present level of prices. It would be a construc – ive technical pat . for a while in the 550-500 level and then re- sumed the broad a n at ter date. During this resting period, individual issues could move ahead Whil rest of the market consolidates. A consolidation from around present levels woul e logical. The other alternative is for the advance to continue with only minor interrup- tions. Many issues have somewhat higher longer term objectives and the entire advance could be accomplished in a relatively short period of time with a probable objective of 60(. This letter has taken the position that it is probably wiser to ignore the averagE s and to concentrate on the actlOn of individual issues. This has resulted in some worth- while upward moves in most issues m my recommended list. I would continue this policy regardless of the near term action of the general market. The main trend is, in my opinion, toward higher levels regardless of possible interruptions. No major decline appears probable at the moment. Before such a development could occur it would be necessary for therna,rket, fr-om a technical viewpomt, to form a major distributional top. This would take time and there are no signs at the mon;'ent of even th'e 'start of such a- – pattern. The market could, of course, have a technical correction. It would be normal technical procedure to have, at some time, a 300/0 to 40 retracement of the advance froIT the lows. That would mean somewhere around the 500 level in the Dow from present levels. With the longer term trend toward higher levelS, I would ignore such possibilitie and concentrate on individual issues. EDMUND W. TABELL WALSTON & CO. INC. ThiS market It'ttcr 15 not, nnd under no Circumstances IS to be construed as, nn offer to sell or n 'OilCltatlon to buy nn) 'CCUrltIC5 referred to herein The Information umtnmed hel em IS not gunrnntcc(j as to nccurncy 01 (1)rnllletcncss and the furnIshing thereof lS not .md under no IS to be construed as, It \u,u h & Co. hlL All C'(prCS910ns of oPInIOn nre '1ubecl to chnnJ!C WIthout 1l0tlce WnI ton & Co. Inc, and QITlee15, DIrectors, Stockholders and thercof, purchase, sellnnd may have an Interest In the seCUrltJe; mentioned helcln ThiS market letter IS mtended and presented merely as 8 general, lllfurlllltl eommentnry on dn)' to da market nc\\!, ami not as a complete an.dysls Addltlonnl lllfOimatlon \\lth respect to nny ;ecuntles referred to herem WIll btl IIpon request \,;.; 301