r — 0..- NEW yeRK Walston &- Co. – – – – – I n c – – – Members New York Stock SAN FRANCISCO, Les ANGELES PHILADELPHIA OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO. TABELL'S MARKET LETTER Octeber 24, 1958 With velume centracting semewhat, the Dew-JQnes Industrials clQsed lQwer en th week. Friday's clQse was 539.52 as cempared with the previQus Friday's clQse Qf 546.36 While there were wide mQves in special issues, the general market held in a relatively rQW trading area. I believe that this trading range can centinue fer a lQnger peried ef with the Industrials hclding within the cQnfines ef the 550 high and 530 lew reached during the hectic feur-day trading swing ef Octeber 13th to. 16th. There have been two. previQus IQng trading areas since the present advance ed in April. Frem mid-June to. mid-July the Industrials held in the 470-485 range and fer almQst the entire mQnth Qf August, the average held in the 500-515 area. On the previeus eccasiQns, the mark-et breke' Qut area' Qn the upside.- The-dire Qf the mQve Qut ef the present trading area is, Qf ceurse, net yet knewn. It is PQssible an intermediate term tep may be fQrming instead ef a cQnsQlidating peried. SQmewhere aleng the line there will be a technical CQrrectiQn Qf the advance frQm the lQWS Qf last Octeber. If a dQwnside breakQut takes place, it CQuid happen at this time. Regardless Qf shQrter term gyratiQns, hQwever, the majQr trend is upward. ;'UIll'''1 grQups are appreaching their upside ebjectives, but many ethers are in the early stages Qf an impQrtant rise. The technical actiQn Qf these individual grQups is much mQre im- PQrtant than the actiQn ef the general market averages. BelQw is a brief summary Qf the technical pattern ef seme Qf the mere impQrtant greups. AIRCRAFT – With the exceptien ef BQeing, which IQQks h1gher, there is no. indicatien Qf any impQrtant immediate meve in th1S greup. – A strQng grQup with the prespects indicating s to' add to. hQldings. Pan American Werld andfttmer c n Use minQr dere my favQrites. ALUMINUM – Prebably need SQme cQnselidatiQn, re structive fer lenger TOMOBILES – A deubtful picture here wiU exceptiQn ef General MQtQrs. r ter; Qmpanies, bayeJeacaed their side ebJ ectives and shQuld grWPs appear to' Qffer better prQfit PQss1b11- s. ILDING E in this grQup with SQme issues shQwing much FlintkQte, NatiQnal Gypsum, Bestwall Gypsum, yare shQwing abQve average actiQn. '–.J.''''11 Qf this grQup imprQving rapidly. See my letter Qf Oct. 10th stlrOllg;gf'QUIP but prQbably in need Qf cQnsQlidatiQn. I''c'-u'r-r-'-'''v''el-s-. – The grQup still IQQks higher. Gimbel BrQs. shQuld be bQught hall Fie1d and May al so. app e ar a ttr a ctiv e DRUGS – LQQk high enQugh fQr the mQment and in need Qf cQnsQlidatiQn. PQssible except- iQns are AbbQtt LabQratQries and BristQI-Myers. ELECTRICAL SUPPLIES – PQQr relative strength actiQn. No. sign Qf an immediate mQve. – Need SQme cQnsQlldatiQn. LQng term patterns gQQd. – BQth these grQups have abQut reached upside Qbjectives. Hemz appear attractive, hQwever. – GrQup is in earlier stages Qf an advancing phase. CQntinue to' favor American g. MACHINERY – Individual issues have quite different patterns. Many issues have reached ectives and need cQnsolidation;—' — – The group indicates higher levels. 0. 1mmediate mQve indicated. – Move may not be imminent, but huge base patterns have been formed with much er potentials. Could be amQng leading groups of 1959. InternatiQnal oils such as Royal ch, Shell Transport, Gulf and SQcQny are favQred. Some speculative Canadians CQuid – In a slow uptrend. Entirely a matter of individual issues. MQst steels have reached unside cbjC'ctives, should consQlidate and form new ntU,rn,;. I ,nnd nndel nn 'Ill I It, he, I I ,h til 11,,, 1 .!l III '1 ,lllltntlfHl to hOlY .un ;('rUll!ll'-. 1,f( red tu herelll The wfrlll'liln 1 gwllllntl'e.j t .11 \ ' ,mpll'l( il' .11l tl1f fill nl Illn. I J (I (' ,f I, t''o \1''''f!;;1I ued nI JilL All If llJl\lOlll .Irf til ,h,llIt 111\,11 1l1'tI('C ll.Y!lIJJ'ill.\llll..L/hW St,hhuldel an.1 1 hn..(' ,,,II HI,\ m h.1\(' .In mtl'I.. t III tlw CltllltiC lll… tu 'I''d II()ClIl merely I.. 1\ geller.1I 01 tn ,I 'v /Il,,1 h('t lid noli n-. ,I (Il!lllol(tl' ,\,1.111 Willi to helelIl Will I.e .\ Jill

NEW YORK Walston &Co. – – – – – l n c – – Membe..s New YOTk Stock Exchange SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO TABELL'S MARKET LETTER October 31, 1958 The market continues to hold in the broad twenty-point trading shelf bounded by the October 13th intra-day high of 549.71 and the October 15th low of 529.42. This range was tested this week on the downside at Tuesday's low of 530.94 and now, three days later, is being tested on the upside. The intra-day high on Friday was 546.27, but the closing tone was weak. As noted in last week's letter, this is the third hesitation or consolidation phase that has been witnessed since the present advance started in April. Both the June-July trading shelf and the August trading shelf were penetrated on the up- side, and the market continued ahead to new highs. Whether the present situation will resultin.another.upside,.penetration is.noLyet clear .but.the.trading shelLis-Ilot very broad and is not of long term importance, regardless of the direction of the penetration. An upside penetration would probably result in a further advance to 555-560, and a down- side penetration would probably result in a decline to the 520-510 area. In any event, the long term trend appears to be upward. As I have noted many times before in this letter, the action of individual stocks is much more important than that of the averages. I am adding another stock to the recommended list. A brief write-up follows H. J. HEINZ COMPANY Current Price Current Dividend Current Yield 56 2.20 3.9 As this letter has often pointed out, the term growth industry is a much abused one. One often disregarded fact, for Long Term Debt 20,766,663 Minority Interest '11,058,319 3.65 Cum. Pfd. (100 par) 75,160 shs. Common Sto.ck Sales,- 1958 Sales, 1957 Earnedd Per. Sh Earne Per. 1, 688 , 897 sh s. 2 9 3 , 810-, r\\\ W '\\ 5 I exampl,e, which is rathe stabln-w t,hr co hhY ca take on real charW1t he, ansported abroad where ket atlon may be lower. Su d ' he f d ' J.WJU;'!-'y,d – ft ' is fact that len-d-s H. J. on stock its chief attraction. Every American housewife is J.al.lu.ua-r WI'th He'Inz , 57 Van'et 'Ies. F ew, however, are aware of the fact that Heinz' United Market Range 1956 6- States operations are a comparatively in- Not e All fI' gures cons t ed. FI' sca1 Y1ear IenhdsldApril. bout 48 of common C ose y e eSaigrnnIifnigcsa nt part pOlnt 0 fofv'tIheew c . oFmopraenxyafmropm1e , an0 f the 9 3 ml'III'On earned after t axes '1958 10 , some 7.6 million originated from foreign subsidiaries. Furthermore, the real growth shown by foreign operations has been maske in recent years by a somewhat less impressive rate of domestic earnings. Heinz' for income has more than tripled since 1953, and operations continue to expand. The cO.IDIlarIJf' major subsidiary, located in the United Kingdom, has recently opened a new factory and an increased rate of sales is indicated. Australian operations have turned in an record despite a rather severe recession in that country, and with recovery pending, should advance sharply in 1959. A new subsidiary has been opened in Holland and a substantial sales volume is expected in the Benelux countries and eventually in the European C!mmon Market. – …… ' – -,.' The combination of high quality (dividends have been paid each year since 1911), a stable United States operation and excellent foreign growth prospects make Heinz suit- able for investment in all types of accounts. Earnings for the fiscal year ending April 30, 1958 were 5.36, down from 6.12 in the prior year. With improved conditions abroad, it is expected that per-share results will return to around the 6.00 level in the 1959 period, and eventually show further expansion. The 2.20 dividend affords a 3.9 ld', not overly small when conSidering quality and the possibility of an, increase at e in the future. From a technical point of view, the stock has held in the 60-44 range years. An upside breakout to 61 would indicate 75-100, but the pattern may broaden. stock is being added to my recommended list. of OlltnlOn are mayan Interc'It m market nc\\.s and not flS a nnd as a general, hereLn wlll be WX 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 November 7, 1958 For the third time since the advance started in April, the Dow-Jones Industrials have broken out of a consolidation area on the upside. The 530-549 range in which the In- dustrials held since October 13th was decisively penetrated and an intra-day high of 559. was reached on Thursday. Friday's close was 554.26. The base formed in the 530-549 area was not particularly broad and the technical upside objective is only about 560. Probably a new trading range will develop around present levels. The longer term trend still appears upward,subJect to the possibility of the usual technical corrections. At the nsk of being tiresome, would again suggest ignoring the averages and concentrate on in- dividua-t ….,. – – ' — Most of the stocks in my recommended list continue to show above average acti lr FLINTKOTE (54 3/4) moved up to a new high at 55 1/2 on the news of the three-for-two split. Would continue to hold it as well as NATIONAL GYPSUM (57), my other represen- btive in the building industry. I still consider the oils and chemIcals to be behind the market. My favorite in the chemical group is HERCULES POWDER (55), but I also like HOOKER (37 1/2) and MONSANTO (381/8). In the oils, GULY OIL (123 5/8) has definitelv broken out of its long trading area and continues to indicate higher levels. I also like ROYAL DUTCH (49 1/2), SHELL TRANSPORT (225/8), and GETTY OIL (27 3/4). In the electromcs group I have advised takmg profits on ZENITH(130 1/2) after its over 100 rise from my recommended level of a year ago. Would still continue to hold HOFFMAN (29 7/8) and MAGNA VOX (41 3/8). The airlines continue to show ex- cellent price action, and while some consolidation may be needed, PAN AMERICAN (21 1/2) continues attractive. Four stocks on my recommended list are in the container. group. They all show nice profits, but I would continue to/L6O'ld CAN (48 3/4), ANCHOR HOCKING (63 3/4), CONTAINER 1/4). GIMBEL (37) has reached a new high at 38 1/8, is advised. One of the slow stocks in our list is UNITED BISCUIT (2W8). this stock may be re- .., . 1 & CHEMICAL (29 1/2) for nearer . YW'S also has been a slow issue, but its eventual upside m Biscuit. Two issues with a high yield and good appreciat FINANCE (291/2) and PHILIP MORRIS (57 1/8). t urrent levels. My representatives in the food group are H.J. c s recommended in last week's letter, and WILSON & CO. (30). e of 100 from our original recommendation, I still counsel retention of \vils Co. lLow-pric ocks have been a feature of recent markets. Issues which have done very little marketwise for ten years or more are breaking out, or are about to break out of long potential base patterns. Listed below are ten low-priced speculative issues that are recommended as a package purchaSe. The basis for this recommenda- tion is entirely technical. The upside potentials on these issues are very large per- centagewise. These upside potentials can be obtained from my Technical Analysis of 1,100 Common Stocks available for perusal in all Walston offices Price 11/7/58 Avco Corp. 9 Cheni.Way —-n-l'/4 Curtis Publishing 15 Decca Records 18 1/2 Divco Wayne 17 1/8 Fruehauf Trailer 17 1/4 Pacific Petroleums 18 1/2 Publicker'Industries 1 1/4 19 1/4 United Industrial 13 High 1937-1957 14 3/8 143/4 ,. –, 26 37 5/8 28 5/8 38 3/8 39 67 44 7/8 15 7/8 Low 1957-1958 4 7/8 6'l/2- 7 3/4 13 3/8 9 5/8 8 3/4 16 1/4 4 3/4 14 5 EDMUND W. TABELL WALSTON & CO INC. , Thl-' m.l! het Ictter not, find under no Circumstances lS to be construed as, an offer to sell or n solicitatIOn to buy any securttles r.efcrred to The LnformatlOTI Jnt.IllH'O hel cln IS not j!uarnntced as to aeem Bey or completeness and the iurnlshlnf(' thcreof IS not, nnd under no circumstances IS to be constrlled ns, n 1111 & Co, Inc All expreSSIOns oj' amnion are subJect to chanl!e WIthout notICe. ,V8lston & Co., Inc, and Officers, Stockholders and Emlll\1\'e… thereof. pllrehae, sell and may have nn mterest III the seCUrltle. mentIOned herein ThiS market letter IS mtended and presented merely as a eneral, IIlf,,, IIlIII COIlHllcntary on dRY to ria)' market ncws And not as a complete analYSIS Additional mj'ormatlon \\ Ith respect to any securities refenoo to herem will be rC'fluest . \\ ' 301

! I NEW YORK Walston &- Co. —–lnc —– 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 November 14, 1958 The market continued to move ahead, with the Dow-Jones Industrials closing high on four of the five trading days. Friday's close was at a new all time high at 564.68. As always, selectivity continues despite the overall advance. Despite the new highs in the averages, U.S. STEEL (883/4) was unable to penetrate the previous week's high of 903/8 and BETHLEHEM STEEL (50 7/8) was unable to reach its high of 547/8 of almost a mont ago. The steels have had a sharp advance and may require some consolidation. A switch into the oils, a group that appears to be behind the market, should work out advantageous for intermediate term holders. Below is a brief on a stock I am adding to my recommend list. ' – —- — !- …..—-c —- – .- – – – – – – – NATIONAL DISTILLERS & CHEMICAL CORP. Price Dividend 26 7/8 1. 00 In a recent issue of this letter we discuss the relative attractiveness of chemical stock Yield 3.7 Funded Debt. 179,810,000 Minority Int. 417,836 4 1/4 Cum. Conv. Pfd. Stk. (100 par) 436,705 shs. Common Stock 10,332,960 shs. Sales 1958-E 530,000,000 Earn. PerSh.1958-E 1.80 Mkt.Range 1958-1953 293/8 – 16 7/8 at current levels based on a projected upturn in general industrial activity. One stock not mentioned at the time was National Distillers Chemical Corporation, for the simple reason that most investors still tend to regard this issue as a liquor stock and fail to recognize the growing importance of its chemical opera tion. These operations accounted for 38 of net profit in their Plrlfita t that th'E')yti an indication of en from the fact rating profit of 20 million(QrVJ,ome million of sales. -o -started in 1950 t-uf approximately 8- 0 million. This investment has 0 . 57 with an increase in operating profits from 670,000 to theiO i now includes the U. S. Industr' , al\ tioned above. The chemical division Division, manufacturers of a broad line 0 industrial t turers of liquifi e e Mallory-Sharon M I Co e atlOnal Petro-Chemicals Corporation, manufacs ro-chemicals and plastics; a one-third ownership in lOn, a producer of zirconium, hafnium and titanium, and various small invest en the high energy fuel and nuclear fields. The company has be come a major produ of polyethylene and is now adding 75 million pounds of additional capacity at Houston, Texas. It is also sharply increasing production of isosebacic acid, a major raw material in the production of vinyl plasticizers, polyurethane, and other plasti s Meanwhile,the basic liquor business continues to improve. As has been pointed ou , – the new bonding law will prevent forceouts of liquor held in bond, and is expected to stabilize the price structure within the industry. Population trends favor the increased co Isumption of alcoholic beverages. A moderate growth of sales, plus perhaps a slight incre s , in profit margins, can'be foreseen. With the virtual doubling of polyethylene capacity, plus other capacity improvemen s it is not impossible to project a sales volume of close to 200 million for the chemical division – say in the early 1960s.,Bythat,timeL beverage.divisionsales should have-in- I .J creased to at least 500 million vs. 448 million last year. With new improvement in cur rent profit margins, this would produce earnings in the 3.25-3.50 range for the curren common stock. This would be roughly a 70 increase over the 1957 level of 2.05. Over the nearer term, margin pressure in both the liquor and chemical segments will probably reduce earnings for 1958 to something in the neighborhood of 1.80. The 1.00 dividend will undoubtedly be continued and may again be supplemented by a stock extra. From a technical point of view the stock has held in the 17-29 range since 1952.A upside penetration of this range would indicate 41 followed by a longer term 57. 3.50 ea ings at a fifteen times multiple, a conservative figure considering the importance of che cal profits, would result in a price of 52 1/2, thus Justifying the technical pattern. The stock is being added to our recommended list for both intermediate and long term holding EDMUND W. TABELL ThiS mll.rklJlletter IS not, nnd under no cIrcumstances IS to be conqtrued as, an offer referred to herem The information contaIned hel ('In IS not as to accuracy or completeness and the furnlshlnR' thereof 1; not, nnd under no cIrcumstances IS to be conatrued as, a rcprecmtn. hun hy & Co. Inc All C'lprCSSlUn9 of opinIOn arc suhJect to ehanJ;e Without notice Wnlston & Co. Inc, and Offlecrs, Directors, anrl Ernllluycl!'1 thereof purchase. sell and may hnve un mterEt m the seCUrities mentloned hercm Thl'l market letter IS intended and presented merely as n cncrnl, mfrmul on 'lny to dny market m!W9 (lnd not 1190 11 complete anab'sl., Additional mformntlon with respect to any referred to herem WI be fLll nlshed upon request \\. 301 'I .(

Walston &Co. Inc NEW YORK Member New YOTk Stock Exchange SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO TABELL'S MARKET LETTER November 21, 1958 After reaching new high ground at 572.05 on Monday, the Dow-Jones Industrial ave – age spent theTfest of the week backing off and, under pressure of profit-taking, reached a low of 558. 16'on,Friday. Although the Dow, at this week's high, was close to fifty points above its 1955-1957 peaks, it is interesting to note that the advance to new highs has been far from universal. Of Sixty major industry groups covered by the Standard & Poor Grou averages, it is interesting to note that thirty-two as of November 12th were still selling below their 1956-1957 peaks. Also interesting is the constantly shifting character of mar ket leadership. Some groups exceeded previous peaks asearly as October, 1957. Others have'doneso -at -all'throu-gh-Iate-195 7-and -1-958. – -And-although the mar ke is now pushing into new high ground, certain groups have failed to make new highs since May of this year. The following table may be of use in showing the character of shifting market leade – ship. Tabulated below are Sixty of Standard & Poor's Group averages, listed in order of the date they penetrated their 1956-1957 high. For those groups which have not yet made new highs, the listing is in order of their percentage below the old peaks, The first colu shows the date, if any, on which the 1956-1957 high was first penetrated. The second column shows the 1958 high expressed as a percentage of the 1956-1957 high, and the third column shows the date the 1958 high was made. Date 1956-7 1958 High Date 1958 High As of High Exceeded 1956-7 High Made 1958 High Date 1 5 As of High 1956-7 Rig, Made Tobacco-Cigar … 10/2/57 Tobacco-Cig'ettsli 12/4/57 Small Loans (I' 12/4/57 Soap 0 12/31/57 Distillers JI 1/22/58 Confectioners v 1/22/58 Food l 1/29/58 Finance Cos. (l 1/29/58 Drugs Utilities 08 lJ 36585\. Office-Bus. Containers-Paper 3 58 Machinery-Agric. 7 3 Bldg. Materials 3/58 Retail Stores 8/13/58 Sugar 8/13/58 Steel 9/17/58 Auto Parts 9/24/58 Publishing 9/24/58 Containers M &G 10/1/58 Electronics 10/1/58 Auto 10/8/58 Shipbuilding 10/22/58 – -Fluor-Dover.Rugs 10-/-2915-8 Tire & Rubber 10/29/58 Elec.House Appl. 11/5/58 RadiO-TV Mfgrs. 11/12/58 Soft Drinks Printing 163 139 127 135 122 122 0 2 2 118 120 108 114 106 112 106 111 110 108 102 103 Nov.12 Nov.12 Sept. Nov.2 .12 02 (\\\ v. …Qi29 Nov. 14 Oct. 8 Nov. 12 Nov. 12 Nov. 12 Nov. 12 Sept. 24 Nov. 12 Nov.12 Nov. 12 Nov.12 Nov.12 Nov. 5 Nov. 5 110 Nov.12 101 Nov.12 101 Nov. 12 99 Nov. 12 99 Nov. 12 .-.. 98 Ar 97 c ri adl oad. 97 96 e — 95 ile Weavers 94 Fertilizers 93 Machinery 93 Paper Shipping 92 92 Chemicals Mining & Smelt. 91 91 Oil 91 Railroad Equip. 91 Textiles-Apparel 91 Railroad 89 Shoes 89 Brewers 87 Air Transport 85 Floor Cover. Hard 85 Aircraft Mfg. 82 Rayon 82 Steel – Alloy 82 —80- Metal Fabricating 80 Sulphur Machine Tools Copper Aluminum 0 Lead & Zinc. 79 74 73 71 70 May 1 Nov. Nov. Nov. Nov. Oct- 9 Sept. Nov. Nov. Nov. Nov. Oct. Nov. Nov. Nov. !,TOV. May Nov. Nov. Nov. Nov. Nov. Oct. Nov. Nov. Oct. 8 Nov. Oct. 5 Nov. A few morals may be drawn from this. The first is, obviously, that if earnings are going to regain 1956-57 levels, a number of stocks have more room on the upside. A second poi t worthy of note is the failure of some groups to make new highs in a riSing market. This, coupled with-a'sharp advance above the 1956-57 peak, could be a sign of vulnerability. It is also plain that groups that are currently making new highs, and which are still well be- nlHr MtEicl 1)1 n I'''litlllncd herem 15 not gunranteeu as to accuracy or completeness and the furnlshJnlr thereuf IS NI1flTffi & Co, Inl' All expressIOns uf opmlon nre subject to change- \Hthout notice purchn'le, 'le1l and may have an llltere-st III the securities mentIOned herem, Ttw mfrm',i (nmmE'ntary on dn to dny mdrket news and nol as n complete anah'SIS Additional fm nlbhe-II upun renuest nnyto illY Bccuntws referred to herelll The mformatlOn 'tM IN.;\' as, II replesent.lStockhoIriers and 1.Q!e!1lhtOni'lltQented merei)- a'l a general. to herem \\111 be- \\ 3Dl i (

f' Walston &- Co. – – – – – I n c – NEW YORK Membe1's New York Stock Exchange 1'\ . ..- , 'j' SAN FRANCISCO ' LOS ANGELES ' PHILADELPHIA CHICAGO, ' OffICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER November 28, The stock market covered a broad range of territory during the past few h'ading sessions. Its wide swings both down and up were similar to the October 14th-17th period when the market declined twenty points from 549 to 529 on the Dow-Jones Industrials and then recovered almost the entire loss all in four days. The present swing has been even wider than October. After reaching a new alltime high of 572.05 on Friday, November 14th, the market backed and filled until the end of the next week when the industrials de- clined almost seven points from 566.24 to 559.57. There was a downside gap opening' on Monday and the average dropped to an intra-day low of 543.07. There was a further . decline to.5.38.43 on .Tuesday, butth;.market rallied.sharply to 5).. 50 on Wednesday. '. I After the Thanksgiving holiday, the market again resumed its advance to reach a high of 559.04 on Friday. This closed the opening downside gap from last Friday's low of 558.16 and Monday's high of 554.88. After a more or less straight line advance since April, broad swings up and down are to be expected. The market becomes overbought at times and sharp corrections keep the market in healthy technical condihon. As yet, the market shows no sign of forming a long term top, although it is vulnerable to flash corrections similar to those wit- nessed in the past two months. Until a much broader top is formed by the inability of the market to move above a former high, there is not much sense in trying to guess a top. It seems the wiser course to concentrate on the action of individual issues in an attempt to find stocks that are behind the market both from a fundamental and technical viewpoint, and whose upside potentials over the next six months or longer appear to outweigh the downside. I attempt to do this in my recommended list which is re- viewed below The electronics group continues to show excellent (39 1/8), originally recommended at 22-21, and 0 oRman Electronics 8 cently recommend- ed around 40, should be held and picked up on pric,,- e oils have been slug- gish, but1. att'eJR' a ould be, one of the leading groups for 1959.Tne ISSUeS we ed' ely,Gulf'OII (119.1/2), Royal Dutch (50 5/8) or Shell Transpor g..Q y Oil (26 3/4) are not much above my originally recommende can be bought here for intermediate ter holding. The 'c s S . h Y better action, but still appear reasonably priced. My ch' e owder (59 3/4), recommended at 48, Monsanto Chemical (39) re nd and Pennsalt (75 1/2) recommended at 71. Two recent r 0 dations have acted favorably. National Distillers (29 5/8), advanced from its mmended level of 26 7/8 to a new high at 31 3/8 and continues to \ have long term attraction. H. J. Heinz (65 1/4) moved from 56 to 67, but has a higher potential. My other food stock, Wilson & Co. (33 1/4) reached a new high today at 33 3/ Still advise retention despite the fact that this stock was originally recommended at 15 about a year ago. The building group continues attractive and would continue to hold Flintkote (56 1/2) recommended at 46, and National Gypsum (57 3/4) advised at 42. The airlines have shown above average action and continue to advise Pan American World Airways (22 1/4). I would continue to hold the four stocks in the container group,namel American Can (50 5/8), recommended at 42, Anchor Hocking (69), recommended at 40- 2 Lily Tulip (90 1/2) recommended at 60 and Container Corp. (28 7/8) recommended at 18 Would take profits in Lily Tulip in the 100-110 area and Container Corp. in the 30-32 range. InternahonalMinerals.& Chemical (29 3/ SlUggISh and show,;; no pr.'!i but its long term potential remains interesting. Continue to hold for yield and appreeia;- tion both Philip Morris (59), recommended at 45, and Family Finance (32) recommende at 22. My package of ten low-priced speculative issues recommended on November 10 for long term appreciation have not moved far in either direction. They are Avco Corp. (95/8), Chemway (125/8), Curtis Publishing (15 1/4), Decca Records (19 3/8), nivco Wayne (18 1/8), Fruehauf Trailer (17 1/4), Pacific Petroleum (17 7/8), Publicker Indus tries (12 1/2, Rayomer (18 5/tl), and United Industrials (14). I continue to a VIse pur- chase in a package. I advise adding two more issues to this package, namely Hotel Corp. of America (7 1/2) and National Can (14 3/4). EDMUND W. TABELL WAJ.STON & CO INC Thls market letter 19 not, and under no ClrcUmstances IS to be construed as, an oITer to sell or II, !'OhcltatlOn to buy any seCUrities referred to herem The mformahon contn11lcd herem 1'1 not gUaranteed as to accuracy or compietene-' nnd the furnlshllll' thereof 15 not and under no IS to be construed as, a reprcscnta. t!'m by \Valston & Co, In!' All e,preSSlOns of OPInion nre subeC't to change Without notiCe Walston & Co Inc and Officers Directors Stockholders tI d .ml'loyees thereof, punhnse, 'e11 nnrl mny have 1111 mterest III the mentmned helelll ThiS mnrket ll and m'crc1Y as n gcnc 111 IIlfOl mill commentary on day to UII market news nn.lnot as a complete unlllysls Ad,htwn.il II1fol mahon With respect to IIny re/Crled to hClcm fUI n l1)).)n request \\; 301

NEW YORK Walston &- Co. Inc Membe's New Y01'/c Stock Exchange SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO TABELL'S MARKET LETTER December 5, 1958 The price range for the week held within a relatively narrow trading area of less thc ten pOints in the Dow-Jones Industrial average as contrasted with the thirty-point swing down and up again in the previous week. As far as general market action is concerned, the November high and low of 572.05 and 538.43 are the points to watch for indications of the nearby trend. An upside penetration would indicate a continued uptrend to the 600 1 and a downside penetration would, from a technical viewpoint, indicate a decline to the 525-520 support level. Friday's close was 556.75. It is possible that with the cross cur- tax !he .will remain the durin/J t..!..!e- malnder of December and not break out of the pattern until early next year when some of- the present uncertainties,like automobile sales, are clarified. Individual issues still have constructive patterns and a new stock is being added to my recommended list. ROHR AIRCRAFT CORP Current Price Current Dividend Current Yield 36 1. 40 4 stock 3.9 The aircraft industry is one of the fastest expanding sectors of our economy. Despite this fact, many pitfalls await the investor Long Term Debt Common Stock Sales, 1958 (2) Earned Per. Sh. 1958 (2) 8,100,500 (I) 940,078 shs. 147,538,056 4.28 who purchases any of the major airframe corrpanies. Due to their heavy commitments to the defense program, with its accompanying instability, earnings in this sector of the in- dustry are Rohr Ai ra t fluctuations. rorer, is protected Mkt. Range 1958-54 37 1/2 – 191/4 Includes7, Debentures – mto common at-28.. in compa ;- e a a' t e vagaries. The ri' a duct is the power jet op-jet and air- rnanufacture of-thls-power– – (2) Fiscal Year Ends July 31st. company is furnished the air- W Aiitt' engine and certain engine accessories and adds the Since the compan sIt cellation of contr a 0 ready for installation on the wing. t a' lrframe producers, it is less vulnerable to cane Qucer. In addition, its 245 million backlog is now 60 composed of co rei usiness, thus giving it representation in tis fast growing segment of the aircraft' ustry and further protecting it from defense spending fluctua- tions. Rohr manufactures power packages for many of the major planes now in use in- cluding the Boeing 707, Lockheed Electra, the Convair 880 and, in the military field, the Boeing 52-G and the Lockheed C-130-B. In addition to power packages, Rohr manu- factures structural panels of honeycomb sandwich stainless steel, which it has patented and developed. The company is one of the largest users of titanium and maintains an extensive research department working on new metallurgical techniques. Rohr has also recently moved into the field of noise suppressors and thrust reversers for jet engines. The reader will recall the recent controversies between jet manufacturers and airports and the resultant requirements that noise suppressors be installed. Rohr now manufac- tures the Boeing-designed nois.e suppr.e.ssor for the. 707 andhas designed its own up- pressor which is now undergoing tests. Rohr's long term record is one of continued growth. The company earned 4.28 per share in the fiscal year ended July 31,1958 on sales of 147 million. In 1951,net was only 1.07 on sales of 26 million. Earnings have increased in every year since 1951 with one exception. Despite this growth record, and future potential, the current market marks Rohr common at less than nine times 1958 earnings of 4.28. There is some potential dilution from convertible debentures outstand ing, but on a fully converted basis the company would have earned some 3.50,making the adjusted multiple just 10. From a technical viewpoint, the stock has broken out of a long 35-20 range. The stock appears to have a long term potential above 60, with downside support at the 33-30 level. Both the common and convertible debentures are recommended for pur- chase. EDMUND W TARE!'!' AWWl-aJitUb.1S not, and under no CIrcumstances IS 10 he con;truw as, on offer referred to herem The InformatIOn (nnt'UIl('.1 hel('In 15 not J.l'unrnntced us to accurnc or completeness ..Ind the furnishing thereof IS not. and undc! no Clrcumstanccs is to be construed liS a rcpresentn e'l.thlll 'Y & Co JnL, All exprcllions of opmlOn lIe subJcct to \\Ithu\lt nutltc W,II;ton &. Inc, and Off!cne, DIrectors, and ,1ll1,uy,c-l thClcof, pUlch,le, sellnnd may havc an mterest In the l,curltlCq mcntuJncd herein 'lh!,. mark('t letter IS Intended and prelented merely as a general. lllrmmnl commentnry 011 dn' to dn m,lrket news and not as II complete nnnhsh AddltlnnailllforrnatlOn lth Icspeet to any securitIes referred to herem WIll be fUI lipan request \\ 301

f – ' – – ' Walston &Co. In.c. Members New Y01'k Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND ABROAD TABELL'S MARKET LETTER December 19,1958 The Dow-Jones Industrial average moved ahead throughout most of last week, and on Friday touched a new high of 577.90. Thus, the trading range in which the market had held for nearly a month, was penetrated on the upside, affording a technical potential of 600. Whether this level will be reached before the end of the year is problematical, as undoubtedly many stocks which advanced sharply in 1958 will be candidate s for selling after December 24th, when profits can be reported on 1959 tax returns. Conversely, however, many stocks which have done little or nothing during the latter half of 1958 may be relieved of tax loss pressure after the first of the year. One such group is the oils, – –', 33'/0 above its April low this week,thcr Index of oil shares was only 18 above the April low. In general, the oils have been poor holdings during most of 1958. From a technical pOint of view, however, a long period of sideways action often indicates accumulation and a sizeable upside potential. Such, we believe, is the case with most oil stocks, and with the international oils in particular. There is nothing basically wrong with the oil industry. It is, indeed, one of the great growth industries of our time. Oil as a commodity has a long history of stable yet improving prices, and for the inflation-conscious investor, oil in the ground is probably the best inflation hedge available. That this opinion is held by most profession- al investment managers is evidenced by the fact that oil shar es constitute the largest single industry group holding of most major investment companies. Why then the lack- luster performances turned in to date The answer dates back to the Suez crisis of 1956. During this period, in order to fill the Middle East gap, western Hemisphere sharply. With I';\ the reopening of Suez in the following spring, p du reluctant to cut back output and inventories piled up, the which commenced in the latter half of 1957. This in o(most a r vat y the recession picture caused sharp with j – -that 1958 earnings will show pickup in busmess, however, rently low, gasoline stocks -t e – mparisons. With the general' ti s ring rapidly. Crude stocks are cur- e minimum, and in general the inventory \ picture is as good aJ ii h s t ' e nder this stimulus, second half earnings for most oil co s should show Which oil stoc'! s ar e iderably better than those of 1957, and 1959 most attractive It is the feeling of this letter that with f a few notable cue large international oil companies represent the best value ( in the industry. Volllmes of statistics can be cited to show the advantages of large oil reserves outside the United States. Oil in the Mi'ddle East and in Venezuela is infinitely eheaper to find than is the case in the U. S. where no major oil field has been discovered \ since 1953. Foreign oil serves a market – Western Europe – which is expected to increasje twice as fast as the U S. market due to strides yet to be made in industrialization. In the face of these excellent growth prospects many of the stocks are still available at well year under fifteen times average earnings, this year's depress as compared with a endineeaterneinngPsIEanrdatciloo se on to ten the D times threeow-Jones Ind us- trial average. This statistical cheapness appears to make the international oils candi- dates to be among the outstanding market .'performers of 1959. In terms of specific issues,four international companies are on our recommended list. Gulf Oil (127), RoyaL Dutch .(48); Shell Transport (21),and Others which appear at- '1-, tractive are Standard Oil of California (59), Socony Mobil (48), Atlantic Refining (44), Monterey Oil (37), Pacific Petroleum (18), Barber Oil (57), and the Getty group, (Mission Corp. (41) and Mission Development (21) and Tidewater (23). It is believed that the performances of the oil group in general and the above mentioned equities, in particular, can be outstanding in 1959 with possible short term improvement as tax loss pressure is removed. Purchase is recommended in investment accounts. A VERY MERRY CHRISTMAS TO ALL AWTamb EDMUND W. TABELL WAJ,STON & CO INC ThIS mnrket letter IS not. and under no Circumstances lS to be construed as, nn offer to sell or II, aohcltntlon to buy lny secuTlties referred to ,herem The mformatlon contamed herein IS not guaranteed as to accuracy or complcuness and the thereof lS not. and under no Clrcumstanccs 1S to be construed as, n representa- tion by & Co. Inc All expressIons of OPlnJon are subject to change WIthout notice Walston & Co, Inc, and OffIcers, DIrectors, Stockholders and Fmployees thereof purchase eel! and rna have an mterest III the sccurltles mentioned hcrem ThIS market lettcr IS Illtcnded and presented merely as a gen(!rnl, furDH.hed on day to day market news and not as n complete anaiYSl!; request . AddItIonal mformatlOn v.ith respect to any seCUfltJ–e–s.1r(!ferred to hcrem will W)/ be

, Walston &Co. / —–Inc. —-Membe,'s New York Stock Excoonge NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND ABROAD TABELL'S MARKET LETTER December 24, 1958 It has been the custom of thIS letter to devote each year's last issue to a forecast of the probable trend of the stock market in the twelve months ahead. At this time, both technical and fundamental factors seem to pOint to one conclusion 1959 will see a continuatlOn of the long term bull market upswing which began in 1949, commenced its final phase in October, 1957, and which will ultimately carry the market to considerably higher levels. I 1- Price movements, over a period of time, both long and short term, quite often take place m five phases, or waves, three up and two down in the case of an upward movement, and three downwaves and two upwaves in the case of a downward ad- justment. Hindsight tells us that the current advance began in 1949 with the first upward wave from 1949 to 1951. This was followed by a second correctionary wave from 1951 to 1953, a third, or advancing cycle, from 1953 to 1956, with a fourth or corrective cycle from 1956 to 1957. With the market in new high ground, it now appears that we are in the fifth and final phase of this upward movement. This is confirmed by other technical data. After reaching its low last October, the market formed a base with an upsIde indication above 500. The normal expectation would have been for the Dow-Jones Industrial average to halt somewhere in the heavy overhead supply which existed between 480 and 520 and aocumulation area before breaking through into new high ground. ThifH,t di ot .dQ0)Ins ad, the upswing carried through into new high terntory with sat' of the advance. Now that new highs have been reached, it appears en' trading area in which ' the heldfrm 1956 Ulltil recel1tlY . of higher levels. This is confirmed rt patterns of over 1300 indi- vidual issues. In a ses have been formed or are in the process of I sizeable upside potentials. In addit, fl' Ight-line character of the advance, long term techmcal work sho s n mterior vulnerability. A market which has advanced as sharply as this on ha always vulnerable to flash corrections such as the one which occurred in N ber. It is impossible at this point, however, to foresee any decline of serious magnitude. From a fundamental pOint of VIew, it is also possible to justify higher prices. The market is, it is true, selling at a record PiE ratio — if the past twelve months' earnings are used as a criterion. It must be remembered, however, that these results were attained m the depths of the recession and a sharp improvement appears inevitable. It becomes more and more probable that 1959 WIll see greatly increased earnings for the Dow-Jones Industrial average — perhaps equalling or bettering the record 36.08 of 1957. Indeed, it is not at all difficult to visualize earnings of 50 on the Dow in 19611962. Such earnings would call for nothing more than an extrapolation of the long term growth trend which PFevailed m Jhe years 194.7-) Giyen .J.D.eaIringe, ,,-.pzice I earning ratio of 15 would result inJ. price of 750, and a ratio of 18 would result in a price of 900. However, as this letter has stressed for many years, individual stock selection is far more important than trying to guess the averages. As has been mentioned above, we seem to be in the fifth and final phase of a long upward cycle. Such a phase often tends to be the most dynamic with secondary and tertiary stocks coming to the forefront. Some of this type of action has already been seen, with low-pnced stocks participating in the advance for the first time since 1946. Many stocks, some specula- tive, some high-grade companies which have been overlooked, which have done little \1 \ ./l 1 \C l ThiS market letter IS not. Rnd under no Clrcumstnnces lS to be construed as, nn offer to Bell or n solicItation to buy an) secuntlCs referred to herem The mformatl(\n contained herein IS not guaranteed Be to accuracy or completeness and the thereof IS not, and under no circumstances IS to be construed as, R rcpre-;entR- tlOn by Walston & Co, Inc All expressions of oPlOion are subJect to chnnge Without notice. Walston & Co, Inc, and Offlcenl. Directors, Stockholders and Employees thereof, purchase, mformal commentnry on dny sell and may have an mterest In the secUrities to day market news and not ns a complete mentioned herem ThIS market letter is mtended AdrhtlOnnl informatIOn WIth respect to any saencdurpitrieessenretefedrrmederetolyhaesreamge….nmerable, furnished upon r e q u e s t ' 301