r FILE COpy Walston &Co. —–Inc, —-Members New York Stock Exchange NEW YORK SAN FRANCISCC LOS ANGELES 0 PHILADELPHIA 0 CHICAGO OFFICES COAST TO COAST AND ABROAD TABELL'S MARKET LETTER June., 5, 1959 At Monday's intra-day high of 648.65, the market has just about reached the upper part of the 635-650 objective mentioned in previous letters. Volume was small on the rise and breadth-of-the-market action continued poor. Following the new peak, the market sold off and an intra-day low of 625.97 was reached on Friday. As mentioned in last week's letter, market vitality has deteriorated and a lengthy consolidation period will probably be required. The general market will probably remain in the confines of the 650-610 range in the Dow-Jones Industrials. Meanwhile, however, individual issues have widely varying patterns. 0 Two issues on our recommended list, ROHR AllCRAFT (205/8) and CLUETT PEABODY (56 3/4) have been under pressure in recent weeks and are down slightly from their highs. These declines appear to present worthwhile purchase opportunities. Current prospects for Rohr are extremely favorable. The company's outlook as an aircraft sub-contractor generally depends on the backlog position of its customers. Boeing, the chief customer, has a heavy backlog in commercial jet planes, plus conti- nuing high production of military aircraft. Commercial plane programs by Lockheed and General Dynamics, to whom Rohr supplies power packages, are also under way. For the first six months of the fiscal year to end this July, ROhr's sales increased by more than 400/0 over the year-earlier period. Heavy start-up expenses penalized profit margins and the rise in net was small. Since sale of new stock to finance expansion was necessary in January, per share earnings actually declined to 96'; vs. 1. 20 for the year earlier period. In the second half, start-up be less and profit margins should widen. Thus, net will be only mod t the 2.85 earn- ed in 1957-58. For 1959-60, a worthwhile e e pect The future for Cluett Peabody also 8 results, with 2.59 earned-per common-share.de-not reflect th c – any' – J'.mal earningpowerwhi.f!ll averaged 4.44 a share in the i alf results will show little im- provement due to full earning ability should be regained in the second Add d to t making stretchaple p a0 lIDpact of the company's Clupak process for some 2.00 a share to company earnings in the next three to Both stocks ha e e to strong technical support levels and objectives are well above current pro Their purchase is again advised. DAYTON RUBBER (32) is being added to our recommended list, effective im- mediately. The stock has an excellent technical pattern with an initial upside objective of 55 followed by possible higher levels. Various developments in the company's PIC- ture could well justify this price. Dayton is an important producer of replacement tires. The number of such tires sold is determined by the number of cars on the road rather than the number of cars sold in anyone year. The former figure has increased every year in the last eight years, and continued growth appears assured. In addition, average tire life appears to be declining and this should materially increase replacement sales. The company is an important producer of mechanical rubber goods and foam rubber, and has a leading position in the production of polyurethane, which is expected ultimately to replace foam in most furniture u.ses.- Recently-, –acqUisition of two aircraft equipment manufacturers was announced, including Hardman Tool & Engineering America's largest aircraft seat manufacturer and the supplier of seats for the Boeing 707 and the Lockheed Electra. Earnings for the six months ended April 30th improved sharply to 91'; per common share vs. 44'; in the 1958 period ,and, in line with the usual seasonal pattern, full year earnings could better 2.25 vs. a depressed 1.18. Further growth in 1959-60 appears probable. The 1. 40 dividend provides a 4.40/0 yield at current prices. Purchase is suggested for long-term capital gains. AWTamb EDMUND W. TABELL WALSTON & CO. INC. ThIS market letter fO; not. and uno('t' no w18 1.0 be (!on'trucu aBo an offer lo sell or a sollCltabon buy nny securittes referred to herem The mformatlon r'ontnmcd hereIn is not gunrantced as to accurac. or completeness nnd the thereof 1& not. and under no ClI cllmstfinccs IS to be as a Fcpresentd. \\'nlI110n & Co. Int. All expression; of opinion are suh)cct to chanRe WIthout notice Wal;ton & Co. Inc and OffIccr;;, Dlicetors, and bmplnyecs thereof, sell and may have nn mteFC'St III the sC'CurltlC'S mentioned herein ThiS market letter is int'nderl and presented merely ns a general. lnrormai commentary on dRy to day market news and not as a complete nnnlysis Adrhbonal informatIon With lC'lpect to /lny secullhes referred to herem wIll be fUTIl1;hcd upon r e q u e s t ' \\'-;' 301

W—d-lIsntocn .&—C-o-. Members New York Stock Exchange FIL NEW YORK SAN FRANCISCC LOS ANGELES ' PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND ABROAD lABELL'S MARKET LETTER June 12, 1959 In the short span of seven trading days, the Dow-Jones Industrials covered almost the entire range of the 650-610 area that I have recently suggested as the probable tradin zone for the next few weeks. From a June 1st intra-day.highcf 648.65, the average plum- meted downward to 613.11 on Tuesday and then sharply recovered to 634.14 on Thursday. I would expect less volatile action for the near future with the Industrial average contmuin to hold within the rough confines of 650 and 610. A continuation of a consolidating phase for some week,s would be a constructive development from a technical viewpoint and woul correct some of the speculative excesses that have occurred over the past few months. when the advancis -resumea- probaBly new Wiltl5e'among tfie leaders;– — Since business reached its receSSlOn low in April, 1958, and the stock market reached its low six months sooner in October 1957, a perennial question has been, How much longer can the business and stock market recovery continue A glance at history should show us that we are still in the relatively early stages of the business and stock market cycle. In March of this year the Federal Reserve Board Index of Industrial production passed its December 1956 high of 146. It had thus required eleven months to stage a re- covery from the April 1958 low. It would appear that we are now entering upon the expan sion or boom stage of the business cycle in which the FRB Index and other economic inde e go on to new peaks. The length of this stage in previous business cycles since 1922 has been extremely diverse, but conservatively, it would seem reasonable to expect a conti- nuance for at least another ten to twelve months with a further expansion of at least 5 in the FRB Index. There is ample precedent for a duration. ovenr\\w\ide0r amplitude and Further evidence that the business recoverr(is sti 1 'n y is provided by the action of economic indicators which usually in e business cycle. For example, installment credit and bank not as yet-by'any f ctUT 1r 1957 mv'entorres – –'oe-sp1te the ,- threat of a steel strike — are still uly 1957 level. In practically every previous business indicators has been considerably sharper before the end f the 0 . H1storicall ,th s tended to top out before business reaches its peak. However, i r letter of March 9, 1959, a study of fourteen bull markets smce 188 .cate average duratlOn of thirty months and an average advanc of 111. To date, et has advanced only 56 in eighteen months. It would thu pear, on an historical basis, that the advancing phase of the market 1S not yet over. The question arises –What securities or groups of securities will be the be st media for participation in a further advance A glance at the thirty stocks m the Dow-Jones Industrial average points out a few interesting facts. Of the thirty stocks now in the average, only sixteen are above their 1955-57 peaks. The re- mainder are considerably below these peaks, with declines of as much as 35. Of the stocks in the average during the advance (the composition of the average was altered last week) five stocks had advanced from 37 to 78. They were General Foods, Corn Products Refining, Eastman Kodak, Goodyear Tire and Procter & Gamble. As can be seen, the se issues are largely identified with the consumer or soft goods fields. It is this group which caused the new highs in the .not indust!'Y issues as Chrysler, American Smelting, Standard Oil of New Jersey, United Aircraft and InternatlOnal Nickel which are 17 to 35 below their 1955-57 highs. Since capital goods expansion normally takes place during the latter part of an advancing cycle, capital goods and heavy industry securities would seem logical candidates for further advance since they are relatively underpriced as compared to the averages. Among groups in this category favored by this letter are Aluminum, Cement, Cheinicals, Electrical Equipment, Machinery, Machine Tools, Non-Ferrous Metals, Rails, Steel. Other groups appearing attractive are Airlines, Fertilizer, Soft Drinks and Textile issues. EDMUND W. TABELL WALSTON &CO. INC. Thl'l market letter is not, and under no clrcumstnnces is to be con'ltrued as, an offer to 'ell or a soliCitation to buy any secuntIes referred to herem The- information contained herein IS not Ruaranteed as to accuracy or compJetene!lS nnd the furnishing thereof IS not, and under no circumstances IS to be construed o.s, a reprcsenta hon b Walston & Co. Inc. All expressionq of opinion are subJect to change Without notice Walston & Co, Inc, and Officers, Directors, Stockholders and Employees thereof, purchase, sell and may ho.ve an interest In the SecUTltle5 mentIOned herem This market letter IS mtended and presented merely as a general, mformal commentary on day to day market and not as a complete analYSIS furmshed upon r e q u e s t ' Additional informatIOn with respect to any securities referred to h-erem wW-ill be J01

Walston &Co. Inc, Members New yo,'k Stock Exchange fiLE COpy – — NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST AND ABROAD CHICAGO TABEll'S MARKET lETTER June 19, 1959 The market successfully met the first test of the June lows with both the lndus- f trials and Rails holding above last week's lows of 613. 11 and 159.68. An encouraging development was the sharp drop in volume. Trading on the decline on Monday and Tuesday was at the lowest rate since last August. However, there was only a mild increa le in trading during the rally days of Wednesday and Thursday. The market is going through a technical readjustment brought about by over- speculation in some of the electronic and space, and land speculation stocks. This has been evident by the weakening breadth-of-the-market statistics for the past several weeks So far, -the-cDrrection in,theseQver-exploited.issues,has-been.brought aoout without any great harm to the better grade stocks. Outside of the wide price movements in the type of issues mentioned above, the general market has done very little pricewise since mid-April. The Dow-Jones Indus- trials have fluctuated in a range of about 60/0 with a June high of 648.85 and a May low of 611.88, which has held despite the decline of the past two weeks. Technical patterns indicate that probably some further correction is needed in some of the over-exploited issues. If such action has as little effect on the rest of the market as it has had so far, I would expect a prolongation of the consolidating period with the Industrials continuing to remain in approximately the 650-610 range. During such a consolidating period, the diverse price movements of individual groups and issues will continue, as witness the ex- cellent action of the steels and aluminums during the past week as compared to the dis- appointing action of the oils and utilities. This selectivity will continue. It is interest- ing to note what has happened to two of the world's largest corporations since the October 1957 lows. The Dow-Jones Industrial average has 648, or roughly 55. If an investor bought U. S. Steel at 50 at the a&flroxi t 1957 low, he would have 1000/0 profit at yesterday's high of 100. Oil of New Jersey at the approximate 1957 low of 50, he would a even at today's closing price de.spiJe the sharpJlrice.advance in hat time. Ability to fore- cast the swings in the will right stocks are bought I continue to believe a – academicinterest unless W iJ)o consolidate for some further time in order to t' excesses of the past several months. With business pattern' p , ow will probably be around 610. Unexpected un- favorable news dev p en 'ght bring the market back to the 580 level for a full one-third correction f 30-point advance of the October, 1957 lows. This appears doubtful at the mom During this period, I would expect above average action by the groups mentioned in last week's letter. These are mainly in the heavy industry and transportation classification. The rails have built up a very interesting potential. They have done nothing marketwise for over five months. The range in the Dow-J ones Rails has been a low of 157.20 in February, and a high of 171.35 in May. Either this formation is a period prior to a further rise, or a distributional top. With the improving business patter and improving carloadings, the latter alternative appears unlikely. Also, the rails are still reasonably priced and are selling below ten times expected 1959 earnings to yield over 50/0 in many cases. The few breakouts of this five-months trading range that have occurred have been on the upside, as WItness the recent new highs in Northern Pacific, N. Y. -, Chicago & St. Louis and Mirineapolis & St. Louis, and this week's upsidebreakout of Southern Pacific. Ability of the average to decisively break out on the upside would be a very constructive development and indicate at least 185 or more for the nearer term. PrObably the market is waiting for a clearer view on the possible duration of the steel strike which would,of course, have an important effect on carloadings. Only rail on my recommended list is Chicago, Milwaukee, St. Paul & Pac. (28 3/4). Its breakout point is 31. Other potentially attractive rails together with breakout pOints are Atlantic Coast Line (58) at 64, Baltimore & Ohio (45) at 48, Chesapeake & Ohio (71) at 75, Kansas CIty Southelr, (81) at 89, New York Central (27) at 31, and Western Pacific (78) at 82. Dow-Jones Industrials 629.76 DoJ ,Tones Bajls 164 21 EDMUND W. TABELL WALSTON & CO. INC. Th!s market letter ,., not, tlnd under no circumstance, JS to be construed as, tin offer to sell or a SohcJUltlOn W buy any securIties referred to herein The mformatlOfi ('ontnmcd herein IS not as to nccurucy or completene5s and the fUl'mshmg thucor not, lnd under no circumstnnces is to be construed as, 0. reprQSento.- tlOn by Vo'alston & Co, Ine All expressIOns of OPITIIon arc subJet to change Without notlcl 'Valston & Co, Inc, and Ofilcern, Directors, Stockholdel's and Employees thcroof, purchase, sell and may hnve an interest In the SecUrItlCS mentioned her(!m This market Ictter IS mtended and N'cscnted merely nq a general, lIIformo.l commentary on day to day market news nnd not as a complete analysis AddItional information with respect to any secuntJes reierred to herem 'Mll be furnIshed upon r e q u e s t . ' \\ JOI

Walston &Co. Inc Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER June 26 1959 The market, as measured by the averages, gained ground impressively last week, reaching a high on the Dow-J ones Industrials of 643.51 on Friday. Volume increased on the rise but, despite the advance in the averages, advances of individual stocks did not strongly outpace declines on a daily basis, nor did new highs heavily outnumber new lows. In the absence of such indication of renewed vigor, continuation of the 650-610 trading range predicted by this letter appears probable. As continually stressed, selection of individual stocks will be much more important than attempts to guess the averages. In this connection, I am tabulating below my entire recommended list with the exception of a few issues which are under prospectus requirements. A number of changes have been made since the list was last published in February, with many stocks being added and a few others having been eliminated as obj ectives were approached. Average profit on eliminated stocks from recommended price to price at date of removal was 66. Opposite each stock is a short synopsis of the technical potential for the issue. It is to be remembered that these are all long-term potentials and all stocks recommende in this list are suggested for holding of six months or longer. Following the list is a recapitulation of my low-priced list. It was originally suggested that these low-priced speculations be bought as a package purchase. This suggestion continues to hold. Recom. Price Current Price Kaiser Aluminum 41 Magnavox 40 Monsanto 38 National Distillers 27 Newport News Shipbuilding 47 Northwest Airlines 38 Oliver Corp. 19 Pennsalt Chemical 71 Rohr Aircraft 24 Royal Dutch 48 Shell Transport 22 Singer Manufacturing 48 U.S. FoilE 50 Westinghouse Elec. 88 Wilson & Co. 15 57 55 52 31 40 38 20 97 21 42 19 49 68 92 39 Rec. Price Avco 9 Chemway 11 Curtis Publishing 15 Decca Records 18 FDi vco- ,1- W,,,afyTnera j p r 17 17 CUI I cnt Price 15 14 11 18 24 27 Rec. Price Current Home Oil A & E Hotel Corp. 207 157 National Can Pacific Petroleum 14 18 9 14 Publicker 11 11 19 27 nnd under no contamed herem is not tlOn by Walston & Co. MeAll lmWrthlI ther.gof, EbJiiibl!J.tary on d1fYUi vdnt' furnished upon request. is to be con,sr.ied RS, an offer to sell furnlshmg thcrCQf 15 not, and under no df'b)fU!.lOn chanp;c Without nobce Walston & CO, trtt.l'csnt s111\\ QllS'se1lTleI mentiOned herem ThiS market letter 'loM1H1fte analYllls AdditiOnal mformatlon With lespe'tV rcferrJ.J herein The and 1W.l'b!lP..o will be \\ N 301 ce