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 August 7, 1959 Since January, 1955, this letter has been following the fortunes of four groups of twenty stocks in an effort to determine the character of the stock market. ,The in- troduction to the first such compilation, made four and one-half years ago, read as follows Few people realize how diverse the action of the market has been over recent years. Regardless of the fact that the Dow-Jones Industrial average has advanced for over five years with just a few minor interruptions, the action of various types of,securities has been,quite, different. ' Manyholders,shQw.JQsses…on indj.yidual,secu;.. arities despite the fact that the general market has been in broad advance since — – 1949. As always, it has been dangerous to buy the wrong securities at the wrong time. In the main, it has definitely paid to own quality issues over recent years. The following compilation may be of interest. It presupposes an investment of 100,000 in four different groups of stocks at the 1946 highs. The first group is composed of twenty growth issues and presupposes an investment of 5000 each in such growth companies as Dow Chemical, Corning Glass, I. B. M. ,etc. The second group is composed of twenty stocks of investment quality. It was selected from the twenty favored issues of 130 Common Trust Funds of leading trust companies. It includes such issues as General Motors, Standard of New Jersey, General Electric, National Dairy, Sears Roebuck, etc. The third group consists of good quality dividend- paying issues a bit below the investment quality of the second group. It consists of issues hke Allied Stores, Allis Chalmers, Babcock & Wilcox, National Gypsum, etc. The fourth group consists of lower-priced, more It comprises the twenty most actively traded issues in 1953 at ou or ower. It in- cludes the issues in which the general public like Armour, Avco, International Telephone, New '\ill \ 'Cola, etc. It c 'sts of issue,s Cent ,Pennsylvania, Pepsi- the sions drawn period are rather obvious. Growth Issue Investment Issu MedlUm-Gra ssues Low-Priced Issues High 100,000 100,000 100,000 100,000 1949 Low 85,403 69,932 47,520 30,095 1956-57 High 660,301 318,144 206,524 88,111 It can be seen that the growth issues outperformed all the others by a wide margtn both in the 1946-49 bear market and the 1949-1957 bull market, Next best performer In both markets was the Investment group, followed by the Medium-Grade portfolio. The Low-priced speculative issues 'Jere, of course, the worst performers, losing more than two-thirds of their value at the 1949 low and never recovering their 1946 value even at the 1956-57 highs. Since that time, however, relative performance has been somewhat differant and conclllsions are not quite so easy to draw. The following table sh3.wS the perform- ance of each group since the 1956-57 hIgh. Adv. Adv. 1956-57 HIgh 1957 Low Decline 1956-7' 1957 Lo 1956-57 High- Value Hlgh To 1957 Low 8/6/59 To Date Date Growth Issues 660,301 392,086 41 747,198 13 91 Investment Issues 318, 144 220,409 31 331,729 4 51 Medium-Grade Issues 206,524 110,201 47 184,480 (-11) 68 Low-Pnced Issues 88, 111 44,948 49 121,550 38 170 — This malket lette contmned herein r Ie is not, and under not guaranteed a no circumsta s to accuracy nces or c oISmtpolebteenceosnssatrnude d as. an offer to sell or the furnishing thereof a sohcltatu)n to buy IS not, and under no any securities referred circumstances IS to be to herem construed The Information as, a representa- tlon by Walston & Co. Inc. All eXprellBIOnS of opinIon nre subJeet to change WIthout notlce Walston & Co. Inc. and Officers, Stockholders and Employt!es thereof, purchase, sell and may have an Interest III the securities mentIoned herein ThiS market letter IS mbended 4nd presented merely as a general, mformal commentary on day to day market news and not as n complete analysIs AdditIOnal lllformntion with respect to any securities referred to herem Will be furnishM upon r e q u e s t ' WN 301 – -2- The first fact to be noted was that the performance of the four groups m the 1957 correction was somewhat dlfferent from their action in the 1946-49 bear market. In 1957, the Investment -Grade group declined far less than dld the 'growth issues, dropping only 310/0 vs. a fairly high 41/0 drop for the growth equities. Also, the Medium and LDw -priced portfolios, while losing almost 500/0 of their value, did not fare as badly relatlve to the other groups as they had in 1946-49. The most striking difference appear s, however, when the study is brought up to date. The relative performance of the Growth group has again improved with this portfoho having advanced 910/0 in value from the 1957 low to date, vs. a 510/0 advance for the Investment group. Thus, the Growth stocks are now 130/0 above their 1956-57 highs and the Investment group only 40/0 above those highs. The MediumGrade portfolio, while it has advanced 680/0 from the 1957 low is, however, still the only group of the four below its 1956-57 high. It is in the Low -Priced portfolio that the real change in performance has taken place. This portfolio has adanced 1700/0 from its 1957 low, the best performance of any of the four groups in the study. It is now 380/0 above the 1956-57 high, a better performance in this respect also than any of the 3.other groups.Significantly, for the flrst time since this study has begun, the value of the portfoho has risen above the origmal 100,000 invested in 1946. This seems to be graphlc proof of a theory often advanced by thlS letter namely that we are m the final stages of a bull market and that one of the characteristics of this stage is an advance in low-pnced, speculative securities. For the first time since 1946, these issues have enjoyed a worthwhile advance and many of them appear npe for further gains. Indeed, since there as yet has been no sign of a major top developing for stocks in general, these issues still constitute good investment medla for the agile trader. The longer term investor, however, had best note that the same group of stocks lost almost 700/0 of their value in the three years following 1946 and that the mvestor in these stocks at their highs waited twelve years to recoup his origmal investment. AWTamb EDMUND W. TAB ELL WALSTON & CO. INC. Dow-Jones Industrials – 668.57 Dow-Jones Rails – 164.45 NOTE The actual flgures in thlS study are slightly dlfferent than those in prevlOus studies due to refmement of a few statistlcal inaccuracies in the previous data. The general trends and conclusions drawn are the same, however. The names of the issues m each of the four groups, together with the number of sha res owned based on the present capitalization may be obtained at your nearest Walston office. EWT – – -…… filECOPV The following are the stocks mentioned in the Tabell Market Letter of August 7, 1959, together with the number of shares which would be owned as of this date, adjusting for all stock dividends, split-ups and capital changes since 1946 GROWTH ISSUES 769 Aluminium, Ltd. 217 Amerada 178 Carrier 312 Corning Glass 388 Dow Chemical 86 DuPont 512 EI Paso Nat! Gas 333 Goodrich 234 Intern'l Bus.Mach. 291 Minn. Honeywell 689 Minn. Mining 263 Monsanto 357 National Lead 280 Owens Corning 188 Pfizer 258 Radio Corp. 193 Rohm & Haas 360 Scott Paper 263 Shell Oil 120 Union Carbide INVESTMENT ISSUES 192 American Can 314 Amer. Cyanamid 86 DuPont 287 General Electric 178 General Foods 373 General Motors 172 Gulf Oil MEDIUM-GRADE ISSUES 78 Allied Stores 159 Allis Chalme rs 645 Babcock & Wilcox 184 Blaw-Knox 197 Bucyrus-Erie 229 Burroughs 116 Cham Belt 178 Johns Manville 82 Kennecott 221 National Dairy 86 Penney, J. C. 277 Phillips Pete 307 Sears Roebuck 333 Socony Mobil 260 Clevite Corp. 100 Crane Co. 166 Distillers Corp. 83 Carrier (1) 294 Joy Mfg. 286 Lowenstein 408 Mead Corp. 384 Stand. Oil Calif. 200 Stand. Oil Indiana 416 Stand. Oil of N.J. 333 Texas Company 120 Union Carbide 125 Westinghouse Elec. 183 National Gypsum 72 New York Air Brake 571 Penn-Dixie Cement 131 Rheem Mfg. 122 Gen'l Tel. & Electron.(2) 213 Yale & Towne LOW-PRICED ISSUES 251 Amer. Airlines 296 Armour 348 Avco 165 Balt. & Ohio 259 Canada Dry 333 Columbia Gas 555 Em erson Radio 90 Gimbel 159 Intern'l Tel & Tel (61 Loew's,Inc. )(3) (61 Loew's Theatres) 211 Mack Truck 139 N. Y. Central 172 Pan-Amero W.A. 105 Pennsylvania RR 123 Pepsi-Cola 216 Raytheon 253 Rexall Drug 205 Servel 125 Spiegel 195 Studebaker – Packard( 4) (1). Exchanged for ongmal holdmg of Elliott Co. (2) Exchanged for original holding of Sylvania Elec. (3) Exchanged for onginal holdmg of Loew' s, Inc. (4) Exchanged for origmal holding of Studebaker. Edmund W. Tabell Walston & Co. Inc.

fiLE COpy Walston &Co. Members Ne1lJ York Stock Exchange NEW YORK SAN FRANCISCO lOS ANGELES PHILADELPHIA CHICAGO OFFices COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER August 14, 1959 After breaking sharply to a low of 647.93 on Monday, the Dow-Jon.es Industrials held above this figure for the remainder of the week. Indications point to another re- accumulation period, during which time selection of individual stocks will be important. We are, therefore, reprinting below our entire recommended list with the exception of two issues under prospectus. Two issues, American Can and Philip Morris, have been dropped from the list due to poor relative strength action, along with Gulf Oil for which Union Oil of California was substituted on July 2nd. recommendation is 10. Average profit in the three dropped issues from time of '' Three new additions are being made. The market action orth-e paper 'stocks has improved sharply and two equities in this group are being added to the list WEST VIRGINIA PULP & PAPER (50) ,which appears to have the widest techmcal potential of any of the major companies, and GREAT NORTHERN PAPER (57) as a speculation on earnings recovery. The improved outlook for the dlstllling industry has resulted In better market action for this group also. Accordingly, SCHENLEY INDUSTRIES (43) down from Its 1958 high of 48 1/8, is being added to our list. Recom. Price Current Price Advice American Viscose 52 50 Buy-Hold. Strong support at 50-45 Butler Bros. Chicago, Mil., St. Paul, Pac. 39 26 39 Hold for 50-50. 27 Buy-Hold for substantial potential. Cluett Peabody 47 54 Buy-Hold for long term. Coca-Cola Consolidation Coal Dayton Rubber Fansteel Metallurgical 141 36 32 60 155 very favorable. 39 32 f,rJtB.eu H or igh was 50 1/2. technical pattern. 59 1\ buil' up strong potential base Getty Oil 28 , Great Northern Paper 57 Heinz, H.J. 55 BKaiser Magnavox Min. & Chem.s\, 0)Y 0 W Monsanto National Distillers 27 Newport News Shipb mg 47 (\)0 57 63 53 32 42 but appears Ne\v recommendation.' Action continues favorable. Slow but good potential base. In strong, long term uptrend. Has an 85 -1 00 technical potential. Buy-Hold. Group is strong. Buy-Hold. Good solid issue. Disappointing, but should improve. . Northwest Airlines Pennsalt Chemical Rohr Aircraft 38 35 My favorite airline issue. 23 30 One of strongest in chemical group 24 19 Acting poorly, but at strong suppor . Royal Dutch Schenley Industries 48 45 Appears undervalued. 43 43 Buy-Hold. New recommendation. Shell Transport Singer Mfg. Union Oil of California U. S. Foil B West Virginia Pulp & Paper Westinghouse Electric Wilson & Co. 22 48 50 50 49 88 15 21 55 50 63 49 9g. 42 ., Appears undervalued. Buy-Hold. Very favorable pattern. Interesting upside potential. In strong, long term uptrend. Buy-Hold. New recommendation. Buy-Hold. Long term potential 165. -Still indicates higner levels. LOW-PRICED LIST Avco Rec. Price Current Price 9 14 Hotel Corp. PRriecce. '/ CPurircreent '/ Chemway 11 13 Intern'l Packers 15 17 Curtis Publishing 15 12 Kaiser Ind. 15 17 Decca Records 18 19 National Can 14 9 Diveo-Wayne 17 25 Oliver Corp. 19 19 Fedders Corp. Freuhauf Trailer IEethe Oil l'z 6f16 B 19 17 aQ 18 25 19 Pete Pubhcker Ind. t!18 11 1115 11 This market letter is not, nnd no circum'!tances IS to be construed us, un offer to sell or a 1t.eQy rred crem The mfo tIon ctlo6nntltlflinferdwhlelr!eJmnl nCotog, uInnrcnntAcelld as to accuracy e..press1ons of or completeness oplnlon nrc aubJect the to furniShtn change ahe) rle\o.lffiIlSaan\o;tiltafnadWunnd'Ie'r no clrcu.trstf\nees IS to be construed OffIcers, Directors, as, a represen1;,a Stockholders and Ehtpytyets tfrereo purch CftlIl1'l!!IJ.W'y.pn ase, oo.y 1Sell05atn! d muy have a )Oar.'ftuneW'B n mte am,! n rc ot st a In sa the seeuntle'S mentIOn complete analySIS WmnrtcettettCrSIntended and merely ns a general, l7.r et securIties referred to herem will be I)I;' WNJOI

Walston &- Inc. Co. Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVeRSEAS TABELL'S MARKET LETTER August 21, 1959 A selling wave on Wednesday carried both averages below the August 10th intra day lows of 647.93 on the Dow-Jones Industrials, and 160.79 on the Rails. This week's intra-day lows were 639.34 and 157.60. The subsequent recovery brought the averages back to 655.39 and 163.20 at Friday's close. The action of the Industrial average see s to be following normal technical procedure. There is strong support at the 640-630 level. From mid-April until the end of June the Industrials held in a trading area between 648 and 611. The various tops of this ten-week trading range, excluding the absolute top at 648.65, were between 640.92 and 630.24 and this week's low was within these support levels. The Rail pattern is quite different. At this week's low of 157.60, the Rails were practiZally atthe year's low of -157; 20 reached in February. This action contrasts with this week's low of 639.34 in the Industrials, which is some 68 points or 100/0 above the February low of 571. 73. The Rails have been marking time for seven months in the 174-157 range. A prolongation of the steel strike much beyond Labor Day could quite adversely effect rail earnings and could cause a downside penetration of the long trading area. This, from a technical viewpoint, would indicate a decline to about 143. Of course, on the other hand, ability to hold above 157 would be quite constructive and indicate an advance to at least the 185-190 level. The timing of the ending of the steel strike will determine the intermediate term course of the Rail average. It has been the thought of this letter that the market would consolidate during July and August and then start an advance in September that would carry through for the balance of the year. Nothing has happened in the technical pattern, as yet, to change this opinion. One thing that could cause a temporary weakening of the technical pattern would be the prolongation of the steel strike to a point result in a serious squeeze on consumers. This probably would not s the strike lasted beyond September. As this possibility appears to ote eel that selected issues should be bought during periods of market w a ess fo x months or longer holdmg. – Ift- arket;,, Some-stocks have – -.. probably seen their highs for a orne, but not all, of the aircrafts and electronics probably . They can rally from present levels, but will need long peri la . n to build new patterns before a sizable ad- vance is indicat There a nr , however, that indicate higher levels before this final phase of the 10 ter dvance is completed. Among the groups that still indicate higher levels are the iles. AMERICAN VISCOSE (48 7/8) is on my recommended list and I believe it as had a sufficient technical correction from its recent high of 55 3/8. The aluminums also appear to be in an uptrend that should carry further. I continue to like KAISER ALUMINUM (58 1/4) and U.S.FOIL (67 1/4). The paper issues appear to be on the verge of an upside breakout of long trading areas. WEST VIRGINIA PULP (49 1/4) appears most interesting. Its 500/0 interest in Clupak, the extensible paper, adds to its potentials. CLUETT,PEABODY (521/2), which holds the remaining 500/0 interest in Clupak and has a much smaller capitalization, is also on my recommend- ed list. Another paper company with an interesting upside potential is GREAT NOR THE PAPER (54). This is the largest newsprint company in the United States and the fifth largest on the Continent. It appears to have been under slow accumulation since late 1957. The.meat packing group, with the prospect of improving profit margins, continues to indicate higher levels. Most issues in this group look higher. My choice has been WILSON & CO. (45 1/4), originally recommended at 15. INTERNATIONAL PACKERS (16 3/41, while quite speculative, has a tremendous upside potential. Other issues showin above average relative strength include COCA COLA (152 1/2), FANSTEEL METALLUR GICAL (59 3/4), MONSANTO CHEMICAL (52 3/8 NATIONAL DISTILLERS (30 5/8), PEN SANT CHE1IIlICAL (31 1/2), SCHENLEY INDUSTRIES (44 3/4), SINGER MFG. (54 1/2) and WESTINGHOUSE ELECTRIC (89 1/2). EDMUND W. TABELL Dow-Jones Ind. 655.39 WALSTON & CO. INC. Dow-Jones Rails 163.20 market letter IS not. and under no circumstances IS to be construed as, nn offer to sell or a sohcltation to buy any securities referred to herem The mformntIon contnined herem IS not guaranteed as to nCCUracy or completeness and the furnishmg thereof IS not, and under no Clrcumswnces is to be construed as, n representa- tIon by Walston & Co. Inc All expressIOns of optOlon are subject to ChallR'e WIthout notIce Walston & Co, Inc, nnd Officers, Directors, Stockholders and Employees thereof, purchase, sell and may ha\'e nn mterest in the secuntles mentioned herem ThiS market letter IS mtended and presented merely as a general, mformal commentary on day to day market news and not as a complete analYSIS Additional mformatlon With respect to any secuntIes referred to herem will furnished upon r e q u e s t . ' \\-; 301

– Walston &Co. Inc fiLE COPY Membe,'s New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER August 28, 1959 The market moved a bit higher during the week on relatively small volume, but the most constructive technical feature was a slow strengthening in my graphs of volume, advances and declines and new highs and lows. On my ten-week mewing averages, for example, advancing stocks are beginning to catch up to the number of st()cltEt declining. Continuance of this trend for a week or two more, with restricted price Hl'..JV''' ment in the averages, would be most encouraging. Statistics Current Price Current Dividend Current Yield '—AMERICAN VISCOSE CORPORATION– 46 2.00 4.3 Since its original recommendation by this letter at 52 3/8 a month ago, VISCOSE reached a new high at 55 3 8, subsequently reacted to a low of 45 5/8 on Common Stock Sales – 1959-E Sales – 1958 5,098,377 shs. 375,000,000 310,000,000 Friday, presumably affected by DuPont's announcement of lower prices for nylon cord. Close analysis of the DuPont price cuts indicates that their effect on American Earn.per sh. 1959-E 6.50 Viscose may be of little importance and the Earn.per sh. 1958 2.70 Market Range -1959 55 3/8 – 37 stock appears to be an outstanding buy on the current weakness. American Viscose earning power is Note Sales and earnings figures include fold. The company itself is America's equity in unconsolidated subsidiaries. largest and secondlarg prodw;,er 0 el Due in no small measure to non-recurring expenses, net was y i 8 to 1.36 per sha This year operations have improved sharply, with ear n the first half and a net of 3.25 -3. 50 projectedfor-the full year. r -probably– comes from cellophane, which market as the trend fo, conve- nience packaging continues. rO' Parent-company s \Y story, however. The giant Chemstrand Corporation, jointly 0 0 hemical, reported record sales for the first half of 1959. A r e ' uity in the earnings of Chernstrand and another sub- sidiary, Ketchika u , were equal to 1. 61 per American Viscose share, should reach 3.25 r t 11 year. Thus, American Viscose consolidated net earning power is 6.50, giv' e stock a pIE ratio of 7. Why the DuPont announcement should have caused weakness in American Viscose difficult to analyze. There is, fi rst of all, no certainty that the price cuts will have any effect whatever on rayon's share of the tire cord market. Since commitments for 1960- model autos are already made, it will in any case have no effect before 1961. Further- more, since Chernstrand is the second largest producer of nylon, its increased earnings should more than compensate for any loss to the parent company. Most significant, is that at current prices,American Viscose is selling at only eleven to twelve times eaTn,t mgs of Chernstrand and the cellophane division. In this connection, it is interesting to that recent prIces mark DuPont, its only major competitor in these fieldS, at 30 times ea.rnlihf's Avisco's low pIE ratio is especially unusual considering the company's excellent growth prospects. Chemstrand has increaseds-ales from 106 million in 1955 to an antici pated 220 million m 1959, with continuation of the growth trend in prospect. Cellophane production continues to strain at capacity and a new addition which will increase capacity 50 is now in operation. Furthermore, a new joint venture with Sun Oil Company, Avi Corporation, will shortly go into production of polypropylene, a new plastic material which is expected to supplant polyethylene in many applications. At current prices, the stock has reacted to a strong technical support level and yields 4.3'70 on the recently increased 2.00 dividend. Technical objective is still 65 followed by a long term 120. The stock is again recommended for purchase. Dow-Jones Ind. 663.06 Dow-Jones Rails 163.49 EDMUND W. TABELL WALSTON & CO. INC. II! not, and under no Circumstances IS to be construed 115, an offer to sell or n sohcltatlon to buy any secUrities referred to herem The mformatlOn cnntnlned herein IS not guarnnteed as to accuracy or completeness and the furnishing thereof IS not, and under no Clrcum!!tancea lS to be construed as, a representa- tIon by Walston & Co, Inc All expreSSIOn!! of oplnlon are subject to chanj'!e WIthout notice Walston & Co, Inc, and Officers, Directors, Stockholders and IIlrormal thereof, purchllse, commentary on day tsoeldl aayndmmarakyethanvewe sana Interest In nd not as a the SecUritlCS mentIoned herem ThiS market letter IS mtenrled complete analysIs Additional mformatlOn With respect to Ilny and presented merely as n general, securities referred to herem wIiI be furnlshed upon r e q u e s t ' \\'N 301

W—-a–l-s-tIoncn–&—C-o. Membere N e,v York Stock Exchange FIL NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER September 4, 1959 With Labor Day at hand, it appears appropriate to review my thoughts on the general stock market pattern for the foreseeable future. It must be borne in mind, however, that, under present investor psychology, the price actlOn of an individual issue may show little relationship to the general market averages. As I have stated in this letter before, I believe the stock market is on the third and final phase of the major advance that started in June, 1949 from a low of 160 in the Dow-Jones Industrial average. Such major advances usually occur in three phases. The first phase was from 1949 to 1952 when the Industrial average advanced 840/0 in forty-two months, phase was the advance from the September, 1953low of 254;-36to' the April, 1956 high of 524.37. This 1060/0 advance was accomplished m thirty-one month The present advancing phase started in October, 1957 at 416.15. The high so far was reached August 3rd at 683.90, This is an advance of 640/0 in twenty-one months and quite a bit less than the scope and time of the two preceding advances. As mentioned in my letter of March 6th, a study of the fourteen major upswings since 1885 indicate that the average time duration was thirty months and the average percentage advance was 1110/0. Whether the present advance will be below or aGove average is, of course, not ascertain- able, but, if the advance reached its peak at the August 3rd hIgh of 683.90, it would be the smallest percentage advance since the turn of the century and, from a timmg view- pOint, just about equal to the two shortest upswings since the same time period. Usually, the final phase of a major advance is the most dynamic of three phases, so it would ap- pear logical to expect that the high of the move has not yet been reached. The business pattern would seem to bear this out. We seem to be in the middle, or just past the middle, stage of a cyclical upswing in business, 0 . When we come to the nearer term pattern, p'c u e as clear. The In- dustrial average has declined from the 683,90 highl9-.;uP1\ decline of only about 6 1/20/0. Whether the correctiQl, tIC ow of 639.34, a – low at that point; or whether a,further correction IS orsas(l).the duration.ef, the steel strike, (2) the money 3 h chev's visit and the peace scare .There is a support level at 6 Q dustrial average and another at 600-580, A normal entire advance from the October, 1957 low would a de l i 2t ' Industrial avera c0 , t'he top already formed on my graph of the e August 19th low of 639.34 would indicate a fur- ther dip to about 6 w e penetration of the 174-157 range in which the rail average has held sin t 'rst of the year would indicate a further decline to about 143. To summari or the longer term it is my belief that the market will some time later this year or early next year move above the August highs, It will depend on news developments whether the advance will start from the level of the August 19th low, or whether a further correction is needed. Of course, individual stocks and groups may have quite different patterns than that of the averages. The paper group, for example, is shOwing excellent relative strength. On our recommended list, as a speculation in this group,is GREAT NORTH- ERN PAPER (53 1/2) Great Northern, the largest newsprint maker in the United States, appears slowly to be recovering from a host of difficulties encountered in the past two to three years. A disastrous hydro-electric year in 1957 coincided with a dramatic shift from a seller's to a buyer's market 'in newsprint This- shift took place just as-the company ha-d 0 completed a major capital improvement program, Net result was that per-share earn- ings plummeted from 5.44 in 1956 to 29 last year. Cash flow dipped from 12.70 per share to 7.22. The dividend was slashed from 3.00 to the current 60. The prIce of the stock plummeted from 108 1/2 in 1956 to a 1958 low of 37. Smce that time, the stock has held in the 37-61 range and an upside penetration of this range would indicate 137-146. Earning power is slowly improving and 1.50- 1. 75 will probably be earned in 1959, with a cash flow of about 8.00. A return to 1956 levels, or higher, appears possible over the next few years. Dow-Jones Ind. 652.15 EDMUND W. TAB ELL WALSTON & CO INC, tJIGi;W';n'Jkcal1M IS to be construed /lS, an offer to sell or a soliCitatIOn to buy any securltles referred to herein The mformntJOD contamed herein II!! not g\Hlranteed as to accuracy or completeness nnd the furnishing thercof IS not, and under no Circumstances IS to be construed as, a representa- tion b WRIston & Co, lnc All expressIOns of opimon arc subJect to change without notice Walston & Co, Inc, and Officers, Directors, Stockholders and t.hereof, purchase, sell and may have an mterest In th sCurltles mentIOned herein This market letter IS mtendc'li and presented merely as n general. Informal commentnry on day to day market news and not as a complete analYSIS AddItional mformahon With respect to any 'lecurltles referred to herein will be furlllsheri upon request \VN 301

– — – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – . Walston &- Co.– Inc Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFF-ICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER September 11, 1959 After declining on the first four days of the week and reaching a new low at 630.45, market rallied on Friday, reaching a high of 641. 33. The Rail average, having reached a low of 153.78 on Thursday, carne back to a peak level of 156.91 the followmg day. As noted in last week's letter, the downside breakouts on both the Rail and averages indicate that lower levels are a possibility. Possible downside potentials would be 620 on the Industrials and 143 on the Rails. The longer term pattern,however, indi- cates that selected stocks are probably buys on any further weakness rather than sales at this time. . As.always;, the performance. ofindividual issues i,sJarmore fluctua tions in the averages. One way of gauging the probable future market performance of a stock is by the use of relative strength measurements. These measurements, very plot the price of a stock in relation to a given market average in an effort to find stocks which are performing better than the market. Frcm time to time, this letter has published elementary relative strength tabulations based on the price levels at V-.UCIU low points in the Dow-Jones Industrials. Such a tabulation follows. Llsted below are all the stocks on the New Yprk Stock Ex change which, at their low on Thursday, September 10th, were 50/0 or more above their low of Wednesday, August 19th. This is in contrast, of course, to the Dow-Jones a which, on Thursday, was 1 1/2 below its August bottom. A logical expectation, of course, is that the strength shown by these stocks in a poor market can well continue when the market turns stronger Stock Aug. 19, 1959 Low Reeves Bros. 23 1/2 American Motors 40 5/8 Ruppert 11 Conde Nast McLean Trucking Consolo Studebaker-Packard Reynolds Metals 9 3/8 8 1/2. -\'\\ 1 – \). \Y /'W! 'Wy o 8 \ – Carpenter Ste International Si Stanley Warner White Dental Litton Industries r 3 1/4 43 3/4 32 1/4 40 103 101 47 1/2 34 7/8 43 1/4 111 1/4 Mercantile Stores Stevens,J .P. West Indies Sugar Vick Chemical Ward Industries Bliss & Laughlin Fairmcnt Foods Brooklyn Uion Gas Oxford Paper Boeing Air Cluett-HealJody Douglas Air. McKesson & Robbins Peabody Coal Youngstown Sheet & Tube Curtiss-Wright Federal Mogul United Airlines Wheeling Steel Gladding McBean Madison Square Garden 33 1/4 35 7/8 281/2 30 3/4 35 1/2 38 1/4 131 1/2 141 1/2 9 7/8 10 5/8 27 1/2 29 3/8 33 1/4 35 1/2 54 3/4 58 1/4 32 34 30 1/2 32 3/8 7./8. .,-. .- 55,.,.. 44 46 1/2 38 40 1/8 15 1/2 131 3/4 16 3/8 139 28 1/8 295/8 623/4 66 36 1/2 38 3/8 585/8 61 5/8 20 21 15 15 3/4 Advance o 27.1 27.0 18.2 16.0 14.7 12.4 12.4 10.7 10.6 9.5 8.6 8.1 8.1 8.0 7.9 7.9 7.7 7.6 7.6 6.8 6.8 6.4 6.3 6.1 B..0…-.. 5.7 5.6 5.6 5.5 5.3 5.2 5.1 5.1 5.0 5.0 AWTamb Thi.s cnntntii'et1 hon !Ke IS nOl guIaRrnn as t; EDI\MLiUiHNPDNOW. TABELL .llf; CO Il1i C -mformatton01racy' 9f IS to be construed as, an offer to sci&X0J completeness and the fUrnIshmg thereof too1 hon is not, and under an slcun les fcfcrred no circumstances is to be to herem construed The as, n rellresenta- i!!)Hnlon are subJect to wltllout notice Walston & Co, lnc, and OffIcers, Directors, Stockholder Dnd 8e a.nd an interest In the securities mentioned herein ThiS market letter IS Intended and prescnted merely ns a gcneral, mformal commentnry on day to day market not as a complete nnaiysl; Additional information With respect to any seeurltles referred to h!rcin Will he furl1lshed upon request. WN 301

Walston &- Co. Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OffiCES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER September 18,1959 The present technical pattern in the stock market is perhaps best explained by r – quoting my letter of two weeks ago. When we come to the nearer term pattern, the picture is not as clear. The In- dustrial average has declined from the 683.90 high to an August 19th low of 639.34, a de- cline of only about 6 1/2/0. Whether the correction reached its low at that pOint,or wheth r a further correction is needed, depends on such factors as (1) the duration of the steel strike, (2) the money situation, and (3) Khrushchev's visit and the' peace scare' There is a support level at 640 to 620 in the Industrial average and another at 600-580. A norma ofOtheentire advance- fr'Offith'e October, 1957'low woulnndicate ade – cline to 590. From the top already formed on my graph of the Industrial average, a de- cline below the August 19th low of 639.34 would indicate a further dip to about 620. A downside of the 174-157 range in which the Rail average has held since the first of the year would indicate a further decline to about 143. Since the above was written, both averages have broken the August 19th lows and the intermediate term trend has been signalled down. Today's intra-day lows were 621. 9 on the Dow-Jones Industrials, and 151.20 on the Rail average. Just what low will be reac before the market turns depends on news developments in the three factors mentioned abo namely, the steel strike, tight money and Khrushchev. At today's low, the Industrials had just about reached the first support level of 620. A favorable turn in the news could result in at least a trading rally. However, as yet, there is no indication of a change in the intermediate term trend. For the longer term, I do not believe the market reached its long term high at the August 3rd high of 683.90. The present downward oPJinion, is an inter- mediate term downtrend that will reach its low e 6 and 580. After a consolidating period, the advance will be resumed us approached, and eventually penetrated in early 1960. Because of elopments, it is unlikely that a- new-high – be a-lance of-195 9-, – – — Highs and lows in an e ve things when applied to highs and lows in individual issues. ones Industrials, at present levels, are 47/0 above the Octo er 1 0 'i6f\e stock in the average, U. S. Steel, is 1000/0 higher. Another sto n II i erage, United Aircraft, is actually six points or 14/0 lower th 't erage was at its 1957 low. This selectivity will con- tinue as the final s eft oad advance that started in 1949 is approached. At the mom nt e groups that are showing the best relative strength include paper, steels, alu ms, soft drinks, and some automobiles. These groups could be among the leaders when the advance is resumed. However, there are also other groups that could show strength. The aircraft manufacturers have been in a private bear market of their own since May. At present levels, most downside objectives have been reached and the group appears oversold. NORTHROP (263/8) has probably been hurt by liquidation of the convertible bonds held on bank loans. The stock appears very reason- ably priced at current levels. 68/0 of the company's backlog is in missiles, drones, electronics and space technology, and only 32/0 in manned aircraft. The company ex- pects an increasing percentage of business in electronics over the years. Earnings for the year ended July 31,1959 will be released shortly and are expected to be around 4.00 a share. This is a price-to-earnings ratio of sOIQe 6 1/2 times earnings and.appears ver low when compared to P / E ratios of 30 to 60 times earnings in many small electronics companies. FANSTEEL METALLURGICAL (58 1/8) appears attractive technically. It shows indications of attempting 1;0 emerge from the broad 64-42 range in which it has held for almost three years. Other issues that I like around current levels, or on price dips, include AMERIC VISCOSE (43 7/8), CLUETT PEABODY (54 7/8), GREAT NORTHERN PAPER (51 1/2), SINGER MANUFACTURING (49 1/2) and WEST VIRGINIA PULP & PAPER (48 1/4), In the lower-priced issues I like INTERNATIONAL PACKERS (16 1/2) and KAISER INDUST (155/8). Dow-Jones Industnals ultajJ..s 78 E'lDI-AMLUSN'f'DONWI.lt TCAO.BHEJLCL. IS to be construed as, an offer to sell or a sohcitntlOn to buy any securities referred to herem The mformnbon eontnmed hel em IS not guaranteed M to accuracy or I'ompleteness and the furnlshmg thereof IS not, and under no Circumstances IS to be construed liS, a representa- tion by Walston & Co. Inc All e(preSSllms of opmlon are subJcct to chanlte Without notice Wnlston & Co, Inc, and Officers. Dlrectors, Stockholders nnd Employees thereof, purchase, sell nnd may hnvc an intcrC'lt III the '1ecuTibes mentioned herem ThiS market letter IS mtended nnd presented mcr('ly as a general. mformal commentary on day to day market ne\l.5 and not as a complete analYSIS Additional mformatlon With respect to nny securities referred to herem Will be furm;hcd upon r e q u e s t ' WN Jot

—-'- – .., Walston &Co. —–Inc —– Members New YO'k Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER September 25,1959 The market bottomed out on Wednesday after reaching lows of 613.30 on the Dow- Jones Industrials, and 149.12 on the Rails. The recovery was sharp with the Industrials in two days regaining approximately one-third of the 70-point decline from the August 3r high of 683.90. Whether the intermediate term downtrend which has been effect since early August reached its low this week is not yet certain. Many individual issues reache their downside objectives. Others have downside potentials somewhat below this week's lows. The Industrial average declined a bit below its first support level of 620, but the whole area between 610 and 585 is a support zone. The Rails did not reach their down- . sig.e potential of 145.-.143. Normal technical action would.require a,testing.of ,this.week's lows shortly. If the lows hold, the intermediate trend will be reversed. It must be remembered that the advance that started in early 1958 has reached a mature stage and is, therefore, subject to wide price swings./When a major advance starts, the initial move is usually a straight line advance with only small and quick re- actions. In this initial move, almost the entire market participates. There are only a few backward groups. It usually takes about fifteen months to complete this initial upwar surge. After that timeyeriod is reached, the market becomes more selective and price swings become wider/This letter on several occasions since the first of the year has co pared this market to the 1953-1957 rise. During that major upswing, the Dow-Jones In- dustrial average advanced from 254 in September, 1953 to 524 in April, 1956. This was an advance of 1060/0 in thirty-one months. The initial upswing lasted from September, 1953 until March, 1955, with the Industrial average advancing from 254 to 421, or 650/0, in seventeen months, with only quick and short corrections of 50/0 or less. From that point on, although the averages continued on to new the price swings became wider and the market mOfiE! sel c iv over a year late, 8 decline took place in March 1955, and a 10.80/0 decline in a reached its actual high in the averages in April 1956 at 524.37, but w out equalled in August, 1956 and June 1957 at 523.33 and 523.11. kp'fj 6 and June 1957 there were Ulree more wIde pdc-e-'swings – therewere- five wide price swings the iriitial upward phase of the 1953-19 move ended,and June, 1957 e e decline started. The in e et started in April, 1958. From then until Augus 3rd, when the a Q 683.90 high, there were only small, quick reactions During this fifteen 0 hs Q the market advanced 630/0. This compares quite closely with the initial 1953 19 pswing of 650/0 in seventeen months. The decline from August 3rd to Wednesday, ember 23rd, was 70 points, or roughly 100/0. This is the first decline of intermediate term significance since the advance started. Of the five declines that occurred in the 1955-1957 period, three were somewhat larger than the present de- cline, and two were somewhat smaller. This letter made a somewhat similar comparison to the above in the May 8th, 19 letter. The conclusions drawn five months ago apply today — so I am repeating them be 0 Significantly, the same signs have begun to manifest themselves. For the past t weeks, declines have outnumbered advances. For the week ended May 4th,122 new 1959 lows were posted. If the similarity continues, what type of market action may be expecte Probably, something on the order of the following 1. The averages will continue on into new high ground. 2. However, wider swingswill take place, and broader corrections than those experienced so far may be expected. 3. It will still be possible to achieve capital gains in selected issues, but the num r of issues in uptrends will be decidedly smaller. 4. The number of stocks acting poorly will increase sharply. It would thus appear that the time again has come to separate the men from the b Losses will become more prevalent, and stock selection will again be the sine qua non 0 investment success. Dow-Jones Industrials – 632.59 Dow-Jones Rails – 154.25 EDMUND W. TABELL WALSTON & CO. INC. ThiS markct letter is not, and under no circumstances IS to be construed 85, an offer to sell or a soliCitation to buy any securities referred to herem The Informntion contmned herem Is not guarnntced as to accuracy or completeness and the furnishIng thereof IS not, and under no Circumstances IS to be construed as, a tlOn by Wnlston & Co, Inc All expressIons of oplDlOn are subJect to change WIthout notIce. Walston & Co, Inc, and Offlcers, DIrectors, Stockholders and Rmployecs thereof, purchllse, sell and may have Iln Interest 111 the securities mentlOned herein ThiS mnrkC't letter IS intended and presented merely as a general, informal commentnry on day to mllrket news Bnd not as a complete analYSIS AddltJonnl Information VI Jth respect to an) securitIes referred to herein wJlI be furnished upon r e q u e s t ' \\'N 301

FILE 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 October 1, 1959 After rallying back to the first overhead supply area around 640, the Dow-Jones Industrials declined to 625.40 on Thursday. The important points to watch are the rally high of 643.60 and last week's low of 613.30. Ability to better this week's high would indicate a reversal of the intermediate downtrend in effect since early August. A decline below 613.30 would indicate a continuation of the downtrend to the 610-585 level. Of all the growth products of our time, few have enjoyed a steadier increase in use than has aluminum. Consumption has increased sharply over the past two decades, and major producers expect U. S. demand for the metal to approach 4 million tons in the mid-1960s, versus just over 1 1/2 million to'ns in-r958 – , – ,- – —0– — Despite this rosy picture, however, the price road for aluminum stocks has not always been smooth. After topping in 1956, most aluminum equities dropped sharply from their highs, and at 1957 bear market lows, major companies had lost over half their market value. The reason for the decline was two-fold. High P /E ratios discounted growth too many years in advance and the 1957-58 recession hit aluminum demand sharply. Mean- while, SUbstantial capacity increases came on stream just as demand was lessening. A two-cent price cut, the first since 1941, was put into effect and the situation was aggravated by Russian dumping on world markets. Earnings plummeted and stock prices dipped even more sharply. With the worst corporate news in years flooding the financial press, aluminum stock prices held around their 1957 lows and, from a technical point of view, built up substantial bases. Stocks of three of the four major companies broke out of these bases on the upside in 1958, indicating substantially higher \'thich have not, as iOSyet, been reached even though prices have higher levels can be supported by fundamental industry, among which are the following i\. '/) a l'acveedw.ththaitnththeese Th-e possibility-of a price rise -topre-1958-prices.'-(M-r. – Khrushchev's emphasis of trade in ns lends credence to the opinion that Ru(2s)siaun. dumping may S. capaci!y suff e (// nctW\\ftfrther increases in demand without capital as capac1ty 1S r (Y–Y fixed-cost industry, profits increase sharply (3) g largely capital costs are relatively immune to further inflation. -I (4) The shar Increased demand picture referring to above. Two of the three major U. S. aluminum producers are on our recommended list. KAISER ALUMINUM (58 3/8) earned 72t; in the first half, vs. 66t;, and net could ap- proach 1.75 for 1959. As capacity is attained, further increases appear in prospect for 1960 and 1961. Participation in REYNOLDS METALS can be achieved through U. S. FOIL B (67), al holding company which has behind each share 88/100ths of a share of Reynolds Metals. For many years, this stock has sold at a rather deep discount from Reynolds, butas the price improves, this discount could well narrow, thus further ex- panding the appreciation potential. Technically, objectives are 75-125 for Kaiser and 105 for U. S. Foil B. A third aluminum equity which mayhaye specialattraction oyer the very long term is ALUMINIUM,LIMITED (34 1/4), the huge Canadian ingot producer. This com- pany has numerous problems, including vulnerability to foreign competition and low current sales as a percent of capacity. As a result, recent earnings have shown little improvement. However, this company will increase capacity in the next few years more than any of the American companies. If demand increases at the rate projected into the 1960s, the earnings growth could be truly substantial. In keeping with the fundamental picture, Aluminium, Ltd. has not yet broken out of the base formed in 1957-59 between 27 and 39. Ability to reach new highs, however, could mean an eventual upside poten- tial of 65 -80. AWTamb EDMUND W. TABELL WALSTON & CO. INC. to be construed as, an offer to sell or a sollcltation w buy any securities referred to helein The information -rlQtOlnetl-hcWl);l oxrifJ lu h llCfUARCY or completeness nnd the furm'lhmg thcrro( is not, lind under 110 Circumstances IS to be construed AS, fi representn. of omnlon are sublCd to chltnge Without ootlce Wnlston & Co, Inc, and OfflceI', Directors, Stockholders nnd EmplDyees thereof, rmrchase, sell and may hale an mterest in the securltiCl mentIOned httrem ThiS market letter IS mtended and presented merl!ly as a general, mformal commentary on dny to day market news and not as a complete anah'sls Additional mformatlon with respect to any secuntlCS referred to herem wdl he furnished IIpon request. \\ N 301

W—-a–l–s-tInocn.–&—-C-o. Fit Membe1's New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER October 9, 1959 THE ELECTRIC STORAGE BATTERY COMPANY Statistics The most widely used commodity in Ameri Price 54 today is not wheat, or steel, but a force called Dividend 2.00 energy. Every productive process in the world, Yield 3. 70/0 with the exception of elementary hand labor, uses Long Term Debt 3,238,355 Common Stock 1,655,577 shs. -Earn. perShare1959-E' 3;!0 Earn. per Share 1958 2.38 Sales, 1959-E Sales, 1958 140,000,000 127,600,000 this commodity. Thus, when an important revolution in the use of energy takes place, it is logical that it should have extensive economic ramificatio Such- a revolution,-iCse'ems, is Ii-ow just'be-ginning It involves the more extensive use of electric ene g produced directly by a chemical reaction. A device for producing electricity by such Mkt.Range 1959-56 55 1/2-25 1/2 means, called a battery, is familiar to every Am r ican. Very simply, a battery uses a chemical re- action to produce electrical energy. Present batteries, even though some can be recharge become used up in time and must then be discarded. However, a new type of cell is just n coming to the fore. This is the fuel cell with much higher watt-power in which two chemic elements are mixed in the presence of other chemicals in order to produce continuous electrical energy. As long as fuel continues to be fed to such a cell, it will produce elec- tricity indefinitely. With the advent of the much more powerful fuel cell, and with vast im provements taking place in storage batteries, both in lengthening of life and shortening of recharging time, it seems more and more probable that energy users will turn to electri energy as a source of power. One example which comes possibility of a re vival of the electric automobile which is now in act pil t y a number of co – panies. Such autos, it is felt by many analysts, cofSci!en y ate as efficiently an conveniently as gasoline powered cars, with maintebnae co raction of that of an inte nal combustion nd,tuel,cells.suggestthem- selves to the active mind. Electric Storage Batt C V, ' he two major companies available to investors, most of who e e batteries. It manufactures a complete line of batteries running r ry cell batteries, produced by its recently ac- quired Ray-O- Va; automobile storage batteries, heavy industrial bat- teries, to giant bat i sus 'n submarines. In addition, the company maintains what i probably the oldest and gest research facility on packaged power in the world. This re search has enabled ctric Storage Battery to stay in the vanguard of new developments taking place in the battery indu stry. ' Both earnings and profit margins have been erratic in recent years, but extensive realignment of operations appears to have put the company on the road to increased profits. The replacement cycle on automobile batteries, long the bane of the industry, now seems to be turning favorable, with recently-installed batteries having a slightly lesser life than did previous units. Sales potential is further enhanced by the growing proportion of higher priced 12-volt units now in use. Since a large proportion of Electric Storage Battery's sales are for replacement, the battery life cycle and the number of cars on the road, rather than new auto sales, are the most important determinants of profits. Continued growth is foreseen in the auto battery market, as '\\'ell as long-term earn ings enhancement due to the development of new types of batteries and fuel cells. Ent irel apart from the battery field, a new porous plastic developed in the course of ESB resear is now being produced by ESB-Reeves Corporation, formed jointly with Reeves Bros. Inc. This material repels liquids but allows vapors to penetrate and can be used in a wide va- riety of applications ranging from rainwear and surgical dressings to artificial human or 1959 sales should show a considerable improvement over the 127 million of 1958, with first-half receipts showing a 1610/0 advance over the previous year. Per share earning in the first six months were 1. 44 vs. 94; in 1958. For the full year they could reach 3.5 a share compared with 2.38 last year. Current 2.00 dividend provides a 3.70/0 yield an dividends have been paid consecutively in every year since 1901. The stock's technical pa tern has an intermediate term objective of 75 followed by a long term 112, with support at 45.It is i'eCOlll1I1enc'led fa! PUI chase iII 1011g terlll ihucBtraeht aee8I1fl'l;s. ThlB mn)ket lotte) hC'Cl1LIS IBnontogt,uaanradnutenedderasnoto accuracy o\J\'l)j'YQmCO& Co. Inc All expressIOns of or coISmtpol opinion be construe eteness and are subJect d !lB, an offer to Bell or n to the to fcuhramngsehln\\gIththoeurtoonfoItSicneot,HMM.1SI)tti;WJi.I…iilT !Ab,mp!oyees thereof, purchnsc, Bell and a have an interest In the sccurlties mentIOned herem news an1 not as n complete annlYBlf, Additional mformMon w\ I 0 y CUfV;t! I oc n nd r C\!J.Ej to any SCCU,I les The Informabon as, a rellresenta. Stockholders and merely as a genera to herem will \\oN 301 s.