&Co. tnc FIlE CJP1 Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHlCAGO OffiCES TO AND OVERSEAS TABEll'S MARKET lETTER ;.,' . ….. ;. r.rl..J.Lll ';.,,1.-)1,,-, Continued weakness prevailed in the stock mark-t most of the week and at its low on F rid a y , the Dow-Jones Industrial average; eached an intra-day bottom of 598.35. Comparable low on the ,Jow-Jones Rails was 13'8.87. This action has been entirely consistent with the thinking expressed in this letter since early January. At that time it was pointed out ihat the various potential doVl side projections of the August-January top ranged from 604 to 550. The first of these po- tential objectives was reached, and subsequently the market held for some time above its March 9th low of 596.20. It was then pointed out that one of two eventualities could take place; – Either' breadth-of-tlle-IrlarKefwoulcn,mprove, leading to the projection of a renewed uptrend, or the old low could be decisively broken with the market showing con- tinued poor vitality. If this were to be the case, the lower limit of the downside objective mentioned above, namely, the 578-550 range, would be the logical stopping place for the ,Jow. In this connection, it is interesting to note the results of a study of the individual downside objectives of each0i the thirty Dow stocks. Taking the upper limits of the downside objectives, in each case, would result in a figure of 550 in terms of the Dow- Jones Industrials. If the lower limits of the downside objectives were used, the figure would be 515. Since all stocks in the Dow could hardly be expected to reach their limits at precisely the same instant in time, it is logical to add some 5 to the figures men- tioned above. This results in a possible downside potential of something on the order of 577-540, or very close to the downside potential of the graph of the average itself. The above downside target also becomes logical when looked at from an earnings point of view. Best available estimates place the 1960 earnings for the Dow somewhere around 41.00. Over the past five years the some 13 1/2 times normal earning power (the to sell at arply when earnings were temporarily affected by a 19 , Y the steel strike). Applying a 13.5 multiple to 41. 00 earnings pri 554. — – Anothermethod-of viewing the ptctGl ould be from the point of – view of the earnings growth. For grow at a rate of 4 1/2/0, earnings would mean that 19 t r e Dow earnings have tended to YiYApplying this growth factor to 1960 at 51.00. At its early January high, the Dow situations show 11 's these earnings. Comparison to individual a high. Polaroid, for example, may well enjoy a growth rate of 3 ua 1 er the next five years. At the same time, the Dow was selling for 685, 0 r, it was available at 188, only 10.4 times projected earn- ings five years hen inn-Dixie Stores, which has enjoyed a 20 growth rate, was then available at 43, some 6.3 times estimated 1965 earnings. Thus, while the aver- age was plumetting from 685 to 600, Polaroid advanced from 188 to 240 and Vlinn- Dixie from 43 to 54 . Obviously, a large part of the overvaluation in the Dow has already been corrected. At the 550 level, it would be almost 100 corrected. At that price, the Dow would be selling for some 10.8 times anticipated earnings five years hence, a figure not out of line with recent experience and a level equal to the price/1965 earnings ratios of a good many of the popular super-growth issues. At this level, the insti- tutional patrons of the Dow blue chips would undoubtedly feel a lot more friendly toward adding to holdings The above in no way constitutes a projection that the 578-550 level will be reached, although this would become a likelihood if the old lows were decisively broken. It is still possible that the old lows will hold and that breadth-of-the-market will im- prove, signifying an ultimate advance in prices from around current levels. What does appear apparent, however, is that there is, still, some element of risk in America's leading companies which are the main components of the Dow average, and that many secondary companies still appear attractively priced relative to their long term growth potential. Many individual issues could advance even if the averages decline, and in- dividual stock selection will continue to be the key to investment success. Dow-Jones In d. 601.70 ;Qav,; Jenes Hails laQ. sa EDMUND W. TABELL WAI,8TON 8, CO TNt., IS not, Bnd under no circumstances IS to be construed as. an ffer to se1l or a sohcltatlon to buy any securIties referred to herem The contatne! herem 18 not guaranteed as to accuracy or completeness and the furDlshmg thereof IS not, and under no 1\ to be construed as, n reprcsentn tlon by Walston & Co Inc All expressIOns of opimon are subject to chllnge without notice Walston & Co. Inc, and Officers, Directors, Stockholdcrs and Employees thereof purchase' sell and may have an interest m the securities mentioned herem This market Jetter IS Intended and prescnted merely as general, mformal on day to dnv market news ang not as n complete analYSIS AdditIOnal mformatlon With respect to any securltlcs referred to herem furnished request .. . – – – —

Walston &Co. FILE COpy Members New Yot'k Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER June 3, 1960 At the week's intra-day high of 634.33, the Dow-Jones Industrials were close to the top of the three-month 600-637 trading range. The downtrend line from the Janua high of 688.21 has already been penetrated on the upside, and ability to confirm this by a new three-month high would be a constructive development. The weekly figures on my breadth-of-the-market index are not available at this writing, but there was probably little change. There were more declines than advances on thefirst two days of the ab- breviated week, but Thursday showed a larger number of advances. The difference in all cases was relatively small. The selective action of the market was shown by well over fifty new highs and new lows for the year reached on each day of the past week. The same diverse action is shown by the action of some of the issues on my recommended list. MAGNAVOX (51 7/8).Originally recommended at 20, reached a high of 55 during the week. From a technical viewpoint, the stock has reached the lower part of the 55-62 upside potential. ELECTRIC STORAGE BATTERY ( 70 1/2), also reached new high territory at 71 1/4. This issue still has a much higher long term potential. FERRO CORP. (64 7/8), recommended less than six months ago at 44, has reached 65 1/2. Its upside objective for the intermediate term was 60-73. COCA-COLA (591/2), SINGER MFG. (663/4) and WESTINGHOUSE (60 1/8) have also reached new highs. In the lower priced category, DECCA RECORDS (31 3/8), recommended at 18, reached 33 7/8. Its upside potential is 38. On the other hand, some of the issues are ROYAL DUTCH (37 1/4) reached its downside potential 3 around the lows. . SUggested as a good buy at around present levels, although it may takea . e to 0 base. AMERICA VISCOSE (31 1/2) is already starting to form a pot n . I ba e may broaden. NATIONAL DISTILLERS (28 3/8) is almost and is near a good support zone. F DD R 17-22 range for over a year, is be . 0 k to or' ally recommended level which-nas heldlnthe- 0 tter technical action. DIVCO WAYNE (26), which has – over a year, begins to show some signs of a possible up U.S.F I ( announced that tn nt the recommended list at 31. It was recently a reed to a settlement of a suit brought by a dissident stockholder agains he co ny and Reynolds Metals. The stockholder had filed suit asking for 1e dissol and liquidation of U S. Foil. The proposed settlement in- volves several step and must be approved by the Chancery Court of Delaware and the stockholders of U. S. Foil, and possibly stockholders of Reynolds Metals. The settlement also depends on a ruling by the Internal Revenue Service as to whether the settle- ment will subject U. S. Foil stockholders to federal income taxes. If all these hurdles are cleared, the stockholder of U. S. Foil B will receive. 85 of a share of Reynolds Metals for each share of U. S. Foil B. At the present price of around 55 for Reynolds Metals, this would mean a dollar value of about 48 3/8 for U. S. Foil B if the settle- ment is finally accepted. Also on the recommended list is KAISER ALUMINUM (47 1/2) recom- mended at H. I suggest switching Kaiser Aluminum into U. S. Foil B. The gap between the dollar value of the proposed settlement and the market quotation will be closed when the terms of the settlement are finalized and approved. However, there is obvious risk terms will vary from those suggested above, but the risk is lessened by the spread of over 100/0 at present. '. In the event of any price unsettlement in the general market, would suggest the purchase of AMERICAN OPTICAL (56) in the 54-50 range, and DAYSTROM CORP. (47 1/4) in the 45-43 range. Dow-Jones Ind. 628.98 Dow-Jones Rails 139.66 EDMUND W. TABELL VALSTON & CO. INC. ThiS mnrkelletter lS not, anrl under no Circumstances IS to be eonstruC'1 as, an offer to sell or n soliCitation to buy any SlCuratlel referred-to hC1'(!1ll The mformation con tamed herem IS not gunrllntN!U 118 to uccuracy or completeness and the furnlshmg thereof 18 not, and under no CIrcumstances IS to be conqtrued as, a representa- tIOn by Walston & Co, Inc All eXpreSBlonS of oplnJon are subJect to chant'e Without notice. Walston & Co. Inc, anrl Officers, Directors, Stockholders and Jmllloyc(!'1 thereof, purchase, sell nnd may have an mterest In the aCC11TltlCs mentIOned herein 'fhlt market letter IS mtended and preqented merely as general. Informul commentary on day to da) market news and not as a complete nnalysls AdditIOnal informatIOn With respect to any securities referred to herem Will be furnished request' WN 301

Walston &- Inc, Co . FILE &0('/ 1 Members New Y01'k Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHlCAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER June 10, 1960 On sharply increased volume, the vow-Jones Industrial average early this week burst out of the 598-637 range in which it had contained itself since February. At Thursday's intra-day high of 663.64, it had already reached the lower part of the upside objectlve of this base which was 660 -680. The Rails lagged somewhat behind and at the week's high of 147.4.4 had still not reached the predicted 151-153 upside objective. Minor profit-taking set in on Friday and the Industrials closed lower on reduced volume. With the drastic change in the picture brought about by this week's action, it Is well to review the possible 'future course of the e quity 'market 'at'this time .. Two Important tools are used by the technician in his attempt to predict the future course of the general market. These are point and figure charts and breadthof-the-market studies. The former are used to gauge possible upside and downside objectives for market moves; In other words — to attempt to measure how far a move could go given the proper market conditions. Breadth-of-the-market studies, on the other hand, attempt to show when conditions are favorable or unfavorable by measuring upside volume vs. downside volume, number of advancing stocks vs. number of declining stocks and new highs vs. new lows. Thus, at a given time, the market may have a higher objective based on point,and figure charts, but poor breadth-of-themarket will make the analyst cautious about its future course. Conversely, good breadth-of-the-market may do much to negate a potentially unfavorable point and figure chart pattern. With this in mind, let us look at the stock market pattern over the past two years. In September of 1958, the Dow-Jones ew high above the triple top at 524 which they had made in ' e at that time to read two point and figure objectives. One, based (Qrf'Jihe 19 action, gave a poten- -weWd, 1956, gave .arJ.-object- ive of around 750. In late 1958 advance continued th rket advanced sharply and this '(b! t year, reaching a high of 680 (close to the first point and figure bj , However, starting in April 1959, a d ' s tetter to become extremely cautious and in January 1960, e 'i averages were accompanied by absolutely no improvement in a h, h' aution was carried to the point of suggesting that a cash reserve be es abl' . The action of the market in the early part of this year confirmE', that thi tion was well advised. Now that the trend has apparently been reversed, a new look at breadth is necessary. Again there are two possible upside potentials which can be read on a point and figure chart. The first of these, taking only the base formed since February, gives a possible objective in the 660-680 range. As noted above, this objective has already been touched. It is also possible to count all of the work done since September 1959. If this work is included, the objective for the Dow becomes approximately 750, confirming the more optimistic count of the 1956-58 base. Whether this objective is attainable will depend largely on the future course of breadth-of-the-market indices. ; i Some improvement was undoubtedly registered this week, although figures are not yet available. The ten-week moving total of upside volume will certainly show a decided increase, although it will be short of the January high. The weekly advancedecline index will, no doubt, also post a fairly sharp gain, although the final figure will again be under the high for the year. In order to predict a further significant up- side move, breadth would have to continue to improve. There would have to be more weeks of heavy upside volume contrasted with low downside volume, and there would have to be more weeks and more days on vlhich the number of 'advancing stocks significantly outnumbered the number of declining ones. If this type of action takes place, it is highly possible that the January high in the averages will be exceeded by an im- portant margin. If it fails to take place, and breadth again recedes, caution would once more be advised. EDJ\lUTND 1U TA BPI ,I, ri&Grw1nl1CtU8SnJrlGi IS to be construed as, an offer to 9'!II or a SOIiCIWrA The InformatIOn contnmed herem 18 not.,.uaranteed na to or completeness and the furnlshlng thereof IS not, nnd\tn1rer no Clrcumswnces 15 lob'e ns, n representn- oplnlOn are subject to change Without nohce Walston & Co, Inc, and OffIcers, Director'!, Stockholders nnd Employees ihereot. purcflllsc sell nnft may-'ave an mterest m the securities mentioned herem ThiS market letter IS mtended and presented mercly as a general. mformal on day to day market news an9 not as a complete analYSIS Addlhonal informatIOn With re'!pect to any sccuritle'! referred to herem WIll be . \\XJl f

FILE COpy 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 June 17, 1960 A technical correction of the sharp advance of the previous week brought the Jow-Jones Industrials back to an intra-day low of 644.00 on Thursday. If the advance in the general market is to resume, support should be met around the 640-635 area. As has been true for a long time, the action of the general market has had little relationship to individual issues. Despite the decline in the Industrial average during the past week, over seventy new highs were reached on each of the first four days. Breadth of-the-market action has failed to improve, however. There were more declines than advances'on three of the first four days of the weeki and my low the high it reached in March. The action of this index must improve if the market i to have anything like a general advance rather than strength in individual issues. If breadth does not improve, the picture will suggest a technical pattern similar to 1956-1957 with a triple top at the September and January highs around the 685 level and whatever top is reached on this advance. Bxtremely selective action continues in the market as a whole, and this is also true of my own recommended list. A number of issues have about reached upside objectives. H.J. HElliZ (l05), recommended at 56, has an upside potential of 103125. It has reached the lower part of this area at the high of 106. Profit-taking is suggested in the 103-125 area as a lengthy consolidation period may be needed in order to form a new pattern. FERRO CORP. (64), recommended at 44, has reached a high of 67 7/8. The upside objective was 60-73. Would take profits in thi As a possible re- placement for these two issues I would suggest JOHNS 61) It has re- cently broken out on the upside of a trading rango/(Qf oy 0 ar uration and developments in asbestos and the new fiber tii interesting capital in the stock. A few strength-actlOn. -MONSANTO (43) ,- ongl in' ed by recent relative ecom aed-at-3-8; ing below average action recently t Ii ohns Manville or DAYSTROM CORP. (47) is indicated Daystrom entered my recommended list thi wee as a potential purchase in the June 3rd letter if it rea te 3 a. A low of 43 1/2 was reached because the company calle 1 debentures which caused temporary weakness. The outlook for t' anu rer of electronic control systems and electrical instruments is quit and the technical pattern is most interesting. KROGBR (33) was recently suggested at 35, but its relative strength action has been poor. Suggest a switch into BESTWALL GYPSUM (47), which is part of my recommended list. See letter of May 6th. CONSOLIDATION COAL (32), recommended at 36, also looks as though it would show little upward price movement of importance. Bestwall Gypsum appears more attractive for capital appreciation. The relative strength ratings of the various groups has not changed materially from my letter of April 22nd. Groups acting better than the market continue to include drugs, electrical equipment, electric utilities, electronics, office equipment, packaged food, roofing and wallboard, soft drinks, tobacco and -variety ch-ains. Grocery chains, which were in this uptrend group, have shown slightly deteriorating action and the group is now questionable. The groups in a downtrend relative to the market continue to include aircraft, air transport, auto, chemicals, copper, oil, paper, railroads, steel and tire and rubber. Of these groups, aircraft and steels show some signs of improving action and could be placed ina neutral category. Machinery, which had been neutral, has return(;d to unfavor- able. In the smaller groups, best relative strength action is shown by air-condi- tioning, baking and glass. Neutral action is shown by fertilizer, finance, natural gas and sulphur. Below-average action is shown by brass, coal, gold mining, liquor, sugar and textile. FDIVjITND 3M TA BET ,I, un e c mstnnces IS to be constiUt.'1. as, an ofter to sell to herein The Information . Vt tl'iJrI''1'i1WMIIQX;1'41''CoJ,''.fna- .eJ B4 totf)!ctt;'dOy or completeness .nnd the furnishing thcrcofts.tRtt;'–k6ctu)(dH 'dr opmion are BubJect to chn.ngc notlC(' Walston & Co, Inc, and 1b be construed as, a representaOfficers, Directors, Stockholders and dnyEmployees thereof purchasc sell and may ha\'c an interest m the SecUrltlCS rncntlonca herein. ThiS market letter 18 mtended and presented merely as a general, commentro.y on to day market news nnq not as n complete analysis. Additional mfOrmatlon wIth respect to any securities referred to herem . . . .. , .. . .. —

FILE COpy Walston &- Co. Inc —,;..; Membe,'s New YO!'k Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CKlCAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER Jun 24, 1960 At Wednesday1s intra-day low of 639.22, the uow-Jones Industrials had re- acted twenty-four points from early June high of 663.64. This is approximately a one- third correction of the sixty-seven point advance from the May low of 596.61, which is normal technical action in an advancing phase. Furthermore, the retracement has carri d back to near the top of the three-month 637-596 range which should furnish a good suppo t level. So far, the technical action of the averages has been normal, but there has as yet been no confirming signal by my breadth-of-the- market studies. The index has so far failed to better the March high and is way below the high level reached in April, 1959. However ,it'has declined very little in the past two weeks and is only a short 'distance from the March high. Regardless of what the stock market does over the next few weeks, or few months, the general outlook for the long term, i.e., the next five to ten years, remains the same. An understanding of this outlook is obviously important to the intermediate term trader or speculator since, to a great extent, the general market outlook will de- termine the type of security he wishes to own. For this reason, a few obvious truths about the long range prospects for the stock market bear restating at this time. The easiest way to view the prospects for the equity market over the next ten years is in contrast to the past ten. The last decade started at a time when stocks, in general, were more undervalued than they had ever been in previous history. It was only logical that this undervaluation should be corrected and a large part of the 1950l s was spent correcting it. Thus, from 1947-49 to 1957-59, the Dow-Jones Indus- trial average increased some 200, based on its 'e two periods. Earnings, however, increased only 53, an average a 1 r f growth of some- thing under 4 1/2 compounded. This was a rewarding to those who were perceptive enough to 0 e s d ved extremely gni th rrific undervalua- tion which prevailed in the equity market ar only trouble is that it – cannot-be-expected to go on – – – — -, —- The realization that the' f an e chip stocks had gotten rather out of line when measured thinking of investmen mana r eAA'iization accounts 'n i has slowly crept into the r second half of the last decade. This real- t ather desultory performance of such former favorites as Du. t rs, International Paper and Standard Oil of New Jersey over the pa f w s. The new favorites became the super-growth stocks, w1-ich, it is r ned, are going to exhibit earnings growth far outstripping that of the econom ver the next decade. The growth prospects in these issues, it is argued, warrant the payment of an extraordinary premium over their value based on current earnings. There is absolutely nothing wrong with this theory when applied to, say, Texas Instruments, where a lead in development and research assures terrific expansion in earnings over the long term. It becomes a little ridiculous, however, to start applying the same multiples to every operation that starts out with an M. I. T. graduate and a few coils of wire and puts the magic word electronics in its name. All of the above allows us to draw a few conclusions as to the general climate of the equity market over the next few years. (1) In conspicuous contrast to' the last decade, it will not be easy for the unsophisticated investor to amass large capital gains. (2) It will not be possible to follow the old saw buy good stocks and hold them. This policy worked wonderfully between 1949 and 1956. Its recent results have been disappointing and will continue to be so. The Dow-Jones Industrial average,composed largely of blue chip companies,will,five years from now,probably be within 20 of where it is at this mome!'t. (3) Investment success will be attained by continued seeking for companies which will grow faster than the economy as a whole. For those companies where growth is assured, the payment of a premium is undoubtedly justified. However, in many cases, equally good opportunities will be found in companies where no premium need be paid and where growth prospects have not yet been recognized by the market. no w-Jolle s fncl. jr. T 1 1li.1S !(!.tj;er is nil undr Is to he construed as, an offer to sell or a EDMUND W. TABELL Uri, T ,.,.,rYI\T ., ,., r. T1\J r' herein. The mformntlOn or completeness and the thereof IS not, and uniler no Clrcumstances 18 to be construed as, a representn- bon by \'i.'alston & Co. Inc All cltpresSions of opmion are subJect to change 'Hthout notIce. Walswn & Co. Inc. and Officers, DIrectors, Stockholders and h\nUr,fffli.tJw.rN, purchase, sell and may have nn mterest in the SCCUrlticz; mentJOnoo herem Th1S market letter lS intended and presented merely as It !Zener!ll, mfo'ffndl t51rlrhMrl..ary on dny to day market news lind not as a complete analYSIS Add!tlUnal mformatlon With respect to any Rccurlbcs referred to herem will he furOlshcd. request. . . WN 301

FILE COpy Walston &- Co. Membe,s New Ym Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OF-fICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER July I, 1960 '''he market action of last week added very little to the technical pattern. The Industrials closed 5.61 points lower on the week and the Rails were off 1.03. The bread h of-the-mal'ket index is not available at this writing, but probably showed very little chan from last week. There were three days in which there were more advances than decline , and two in which declines predominated, so there was no important change in upside and downside volume indications. 1,7atching the present market is something like watching a three-ring circus. In one ring are the stocks which have had sharp advances, but are still making new highs In the second ring are the stocks that have been declining since the first of the year and are still making new lows; and in the third ring are the stocks that are just doing nothing As far as group action is concerned, there has been little change from the com- ments in the June 17th letter. lViost of the bread and butter groups, like the autos,oils steels, chemicals, machinery, paper, rubber, copper and textiles, continue to show be- low average relative strength. The aluminums recently entered this classification. Above average strength patterns continue to be shown by electronics, office equipment, drugs, glass, foods, soft drinks, utilities and specialties. There are, however, some indications of an impending change in trend for some of the groups. Many of the issues in the groups that have been the market leaders are at or are approaching their upside objectives on my technical work and should be ready for at least a lengthy consolidating period. The questicnthen will be whether or not a reactionary period in the present market leaders will carry the laggard groups and the rest of the market down with them, or whether the hitherto laggard groups can take over and assume market leadership. The breadth-of-the-market index will probably give the question. Ability to move above the March high would indicate a bro,S6enin f t pattern and participation by new groups. A new low in the b mdicate new lows in the averages. At the moment, the index is no beRe!;;lthan ral in its action. As far as relative strength is itiS' ourse, quite obvious that the laggard groups are still r er, the deterioration that has been in effect in some of e rb',as April, 1959, shows some signs of slackening. For example, 0 J there are only two whose relative strength line c 0 er ory in the past two or three weeks. The two are aluminum a tlve strength lows. c 1 A e other major groups have held above their rela- I e a a groups have improved their technical action to the pomt that they are c se ndicating a change in trend. The three groups are aircraft, airlines .ld cement three of these groups had been showing very poor technical action for a long Some of the laggard groups, while still showing poor relative strength, have been building up very sizable potential bases. The steel group is a good example. Despite the discouraging news developments in the industry on production rates and new orders, the steel group has held in a trading shelf for the two months. U. S. Steel (79), for example, has held in the 75-84 range. Ability to break out on the up- side would indicate an advance to the lower part of 108-99 overhead supply at the 1959 top. Armco Steel (64), Inland Steel (44), Jones & Laughlin (68) and ;tepublic Steel (62), have similar patterns. These issues should offer interesting trading oppor- tunities if one is willing to abandon positions if the March-May lows are penetrated on the downside. 3ven the oils, while still showing poor relative strength, have in many instances reached or approached downside objectives and have formed potential base patterns. The bases formed so far are not substantial, but could in the case of Standard Oil of New Jersey (10) bring the stock back to the 47-50 level. Gther laggard groups with similar patterns include building supply, chemicals, coppers, fertilizer, and sulphur. If all of these groups, together with the laggard groups mentioned earlier in the letter, reverse their intermediate trend, it would be possible for the breadth-of-the-market index to move above the March highs and for the various industrial averages to reach new high territory -'tOW-TrOOeS lilO 6.11 30 .3DlVUI\TD VI. TP.l.BELL c7r hmstances IS to he construed us an offer to sell or a &C,GQm&d herem The informatIon contained herem IS not guaranteed us to accuracy or completeness and the furnishing thereor IS not. and under no CIrcumstances 1; to be construed 85, a representn. tlOn by Wnlston & Co lnc All expresSIOns of opimon arc subJect to ehnnpe WIthout nutice Walston & Co. Inc, nnd OffIcers, Stockholders and Employeee thereof sell and mllY have an Interest iR the securItIes mentloned herem ThlS market letter IS mtended and presented merely as II general, commenWrY on day to day market news nng not as a complete annlysls Addltionnl mformatlon WIth respect to any secuntlei referred to herem furnlsheo rC9uest . . .. . ..

— Walston &- Co. —–Inc. —- Mem beTS New York Stock Exchange NEW YORK SAN FRANCISCO lOS ANGELES PHILADELPHIA CHlCAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER July 8, 1960 Last week's letter mentioned that there were some signs of an impending change in trend in the relative strength action of the various groups, and that many of the issue in the groups that have been the maJ;ket leaders were at or near their technical upside objectives. The glamour issues turned quite reactionary earlier in the week and suf- fered some very sharp declines. While there was a rally in these issues later in the week, they were still considerably below the recent highs. The question of whether weak ness in these issues would carry the rest of the market with them, or whether the hither to laggard groups would take over and assume been.re.so1ved so far. The Dow-Jones' InCllistrials held above the June 30th low of 63491 and closed onl frachonally lower on the first two days of the abbreviated week. Declines exceeded ad- vances on the first two days, but the market turned quite strong on the final two days of the week with advances exceeding declines and the Industrials advancing 6.18 points for the week. This technical action resulted in a constructive signal by one of my breadth- of-the-market indicators, the ten-week moving total of upside volume. This volume indicator moved above the high of December-January when the average was 685 to reach the highest level since early September. This is only one of my several breadth- of-the-market indicators, but it is the first one to show constructive action. The figures on my principal breadth-of-the-market index are not yet available, but they should be close to the March rally highs. It appears probable that the Industrials may test the 663. 64high reached'in. June., . f't t k' Over th.e past few weeks, I have made several suggestlOns on pro 1 – a mg on switches in my recommended list. The stocks still in my list, selling above 20, are tabulated below with some brief comments. These quality and are suggested for capital appreciation for a six-month or Ion r than trading, The lower priced issues will be reviewed in a sub it r. Recent S & P Price lating Indicat Po 0 D' ide Y' Comment .' American Viscose 34 – . – – ,00 -Buy- – . – Bestwall Gypsum B. T. L. Corp. 44 ((\\ s W 80 Buy-Hold 4.6 Hold for 48-50 Chic. Mil. & St. 20 – 1.50 7.5 Buy-Hold Cluett Peabody 2.50 4.5 Buy-Hold Coca-Cola A- 2.40 3.7 Hold Daystrom B 1.20 2.8 Buy-Hold Decca 30 B 1.20 4.0 Hold for 35-38 Divco-Wayne 23 B 1. 20 5.2 Buy-Hold Elec. Storage Battery 64 B 2.00 3. 1 Buy-Hold Fansteel 62 B 1.00 1.6 Buy-Hold Fruehauf Trailer 23 B 1. 20 5.2 Hold Georgia Pacific Plywood 56 B 1.00 1.8 Buy-Hold Great Northern Paper 'l4 B 1. 00 2.3 Buy-Hold Great Western Sugar 29 B 1.60 5.5 Buy-Hold Johns Manville Magnavox National Distillers Newport News Ship. Northrop Corp. Royal Dutch Schenley Industries U. S. Foil B 60 A 47 B 28 B 37 . B 37 37 A 22 B 42 A- 2.00 1. 00 1.20 2.60 1.60 1. 40stk. 1.00 .40 3.3 2.1 4.3 6.9 4.3 3.6 4.5 .75 Buy-Hold Hold for 55-62 Buy-Hold Hold for'44-47 Buy-Hold Buy-Hold Hold for 27-29 Buy-Hold Westinghouse Elec. West Virginia Pulp Wilson & Co. Winn-Dixie 58 B 44 A4.0 B50 A 1. 20 1. 20 1.60 1.20 2.1 Hold for 65-70 2.7 Hold 4.0 Hold 2.4 Buy-Hold Dow-Jones Ind. 646.91 Dow-Jones Rails 142.29 EDMUND W. TABELL WALSTON & CO. INC. rdThis market letter 18 nol, find under no Circumstances lS hcontainC(l herem is not guarnntecd as to or co!llP tion by Walston & Co, Inc All eXprcsalOns 0 opmlon be const eOthaB;. eatTeenessusbalenet toe t; ff r nge tc ; 1\ !J. rdtanlnlOd unntdnelrunyo acnirycuRmecs1t.aJ.nnctiees'!riesfetorrebde ctoonhsetrruemed aTsh, ea irncfporrmesnctnlOtan- notlCe Wolston & Co Inc and Officers, Directors, Stockholders and a men;V' ned herem ThiS market is and presented merely lUI a general, Emmfoprlmoynelecs otmhemreeonft,arpyurocnhfldRoe, tsoelldaayndmnr….e newsnnanln.dtneores,at sIna p Addlbonal lnformatlon ….. lth respect to nny SeCUritle., referred to herem \..\… iNll lbOet . .

July 12. 1960 fiLE COpy ALL WIRES INADVERTENTLY. SINGER MANUFACTURING (64) WAS LEFT OUT OF OUR RECOMMENDED LIST PUBLISHED IN LAST WEEK'S BLUE MARKET LETTER. THE ST0CK IS STILL ON OUR LIST AND IS RECOMMENDED FOR PURCHASE. EDMUND W. TABELL NY

———————- I filE COpy Walston &CO. Inc Members Ne1v YOI'k Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER July 15, 1960 Unsettling foreign news resulted in a sharply lower market in the first two trading days. Pressure lifted somewhat in the later part of the week, but the Industrial lost 16.67 points from last Friday's close, and the Rails dropped 3.40 pOints. The only favorable technical development was the failure of trading volume to increase on the decline. The week's volume was at the lowest level for quite some time. From a technical point of view, the main trouble with the stock market has be a lack of breadth. This simply means that, despite the action of the averages, there hav been more stocks going down than up. This is not a new development. In March, 1959, with the Dow-Jones Industrial'average at 610, my breadth-'oTthe-'rnarket-ihdex-started t) decline and the decline has continued without a significant rally in the index in fifteen months. This is despite the fact that the average itself has had several wide price move ments between 685 and 600 during this period, and quite a few individual stocks in the electronic and leisure-time field have moved ahead 100/0 or more. Regardless, the mai bulk of the market has failed to move ahead and most issues have declined, some quite sharply. This action has made it extremely difficult for the investor to significantly increase his capital worth unless he had switched out of the bread and butter groups, like the aluminums, autos, chemicals,oils,paper,rubber and steels, into drugs,foods and utilities, or into the super-growthstocks selling at thirty to fifty times earnings. This is most confusing to the average investor because the first named groups had been the investment favorites of the 1949-1956 rise, the Favorite Fifty of the decade. To repeat an illustration used in the May 27th letter – Evidence can be produced to show that this trend began even before June of last year. its recent price, thE Dow-Jones Ind. average was some 18/0 above its April 5 , yet a 10,000 invest- i i 'mentfour years ago in equal amounts of DuPont, e d 0 ,Aluminum Co.of America, and International Paper, would be wortli th 7 .00 today. The price of leading equities has been lly Ito , If our theoretical mvestor Wl th hl.s 10,000.00 I r aCdOBiBn t 1 e-hlB- e'stm-ent-among-such'-stodgy, defensive issues as American Tel er oods, Reynolds Tobacco and Wool- worth, his 10,000.00 today, and had he chosen Poloroid, Texas uns' k I, Zenith (stocks which, it must be admitted, are easier to pi t his 10,000.00 would have grown to the ratherastoundl 5.00. Is there n te cal indication that this confusing price action will change Actually, there is no must be remembered that the major price advance from 1949 is eleven years 01 nd has obviously reached a mature stage of development. The mar- ket advance started at a time when the market was grossly undervalued, probably more undervalued than at any time in our financial history. This undervaluation has been corrected, and the market is no longer on the bargain counter, Many stocks are sell- ing at extremely high price to earnings ratios because of the investor confidence that the rate of growth in earnings over the past several years will continue into the future. This could result in some rather drastic declines in individual issues if the growth fails to live up to expectations. Is the market vulnerable to an extremely sharp decline I do not believe so. I rather believe that the market needs a lengthy consolidating period. By lengthy, I mean a period of several years. In terms of the Industrial average, it is entirely possible that the 700-750 area will be the upper limits and 550-500 will be the lower limits. Over the next three to five years, the market may traverse this whole range several times.It is possible that On July 15th, 1964 the Dow-Jones Industrial average will be selling at exactly the same spot that it is today, but that stock A may be 50 higher and stock B 50/0 lower. This will seem a quite startling prospect for the new investor who has been accustomed to the market reaching new high territory year after year, but it is nothing startling to the older investor in the market place. Dow-Jones Iq.d. 630.24 D, ow-Jones Rails 138..89 EDMUND W. TABELL WALSTON & CO. INC. This market letter Is not. and under no circumstances IS to be construed as, nn offer to sell or a solicitation to buy any SecUTIties referred to herein The mformation contained herem iB not guaranteed as to accuracy or completeness and the furnlshmg thereof IS not. and under no circumstances UI to be construed aB, Ii representa tlon by lA'alston &- Co, Inc All expressIons of opInion are subJect to change Without notice. Walston & Co. Inc.. and Offlcers, Directors, Stockholders and Employees thereof, purchase, sell and may have an mterest In the securities mentiOned herein. ThIS market letter IS mtended and presented merely (IS a general, informal commentary on day to day market neWD and nOl as a complete analysis Additional mformatlOn With respect to IIny securities referred to herem wIll be –furmshe-d-up-o–n re-qu-est.- — — — – – – – — – – – – — – — – — – – – — WN—3-01

Walston &CO. Inc – FILE Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CI-IICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER July 22, 1960 In ten trading days, the Dow-Jones Industrials dropped from an intra-day high of 650.10 to an intra-day low of 605.45 on Friday, a decline of almost 45 points. At no tim during the decline did the daily volume exceed the three-million share level. Breadth-of- the-market action continues poor. The weekly data is not available at this writing, but the daily breadth-of-the-market index reached a new low on Friday. What is the technical pattern of the market at the moment As far as the averages are concerned, the picture has changed very little in the past several months. The Industrial average bui!t up a distributional pattern between August 1959 and Jarmlry of this year at arou.ndthe 685 level, with three possible downside objectives of 604, 578 and 550. The first of these downside objectives was reached at the 596.20 low of March and tested in May at 596.96. A base was formed in the 596-637 area during March and May with an upside potential of 660-680. This range was penetrated on the up- side and a high of 66l. 64 reached in June. However, the breadth-of-the-market index did not improve and could not better the March high, indicating a weak rally. The average has now declined to near the March-May low and the weekly breadth-of-the-market index has either reached a new low or is very close to doing so. Breaking of these two levels would from a technical viewpoint, indicate a decline to the 578-550 level. Ability to hold above the March-May lows would broaden the potential base and indicate an advance to above the June high. This would be signalled by the ability of breadth-of-the-market indices to move above the Marc;h .high. In the atmosphere of general market weakness, a number of stocks on our recom- mended list have reacted conSiderably from their highs. The four stocks noted in the tabl ;go/.below have declined from 230/. to from their peak Prim' three of the four are still selling above their originally-recommende;fJev s hWfu mental outlook has remained unchanged, despite the decline in m chnical point of they .. at or to strong support .. – -. L Cluett, Peabody Daystrom, Inc. Electric Storage Bat e Singer Manufact 0)J S)!l 1/2 493/8 73 71 51 40 58 57 .. Iff 23 OOJ./ ail-o CLUETT, PE Y till expected to report sharply-improved results for 1960,. possibly rf'aching clos 5.00, as against the 3.61 earned in 1959 and 2.59 in 1958. The pIE ratio of 10 d the almost-50/. yield seemingly fail to take into account the tre- mendous growth possibilities inherent in the company's 500/0-owned Clupak stretchable paper process. DAYSTROM,INC. reached a new sales peak of 90 million for the year ended March 31,1960 and, on improved margins, earnings expanded to 2.48 per common share. 900/0 of the company's sales are now derived from electrical and electronics products, and it appears to have a bright future in the field of advanced control and measuring devices. Management has forecast a sales gain to c-;er 1,00 million for fiscal 1960, and an even greater percentage gain in net income. ELECTRIC STORAGE BATTERY continues to show considerable improvement in basic earning power and is maintaining its position as a leader in battery and fuel cell research,with per-share earnings this year expected to better the 3.60 of 1960. ESB has arranged with 17 of the nation's leading manufacturers of materials-handling equip- ment to develop the first commercial applications of zinc-oxygen fuel cells. SINGER MANUFACTURING continues to show good earnings gains with 4.12 earned per share reported for 1959 vs. 2.70 in 1958. The company still has an ex- ceptionally strong working capital position with excess cash that can be used to acquire other earning assets. That this policy is being followed is evidenced by its recent ac- quisition of two small companies in the textile machinery lines. Further improvement seemil in store for 1960, and for the full year, earnings could reach 4.65 per common share without taking into account any profits which might accrue from acquisi- tions later in the year. EpDITTTND JU TA BEl .1 , 1J00 IS to be construed as, an offer to sell or aAY to herein The Informubon herem 16 q.qt torir.furacy or and the furnishIng thereof 11'Il6t;rlIYU'hch!f1rib b'hutn'sbl1tMl b1l1e construed as, a of oPlnJon nre subJect to change Without notice. Walston & Co. Inc. nnd Offlccrs, Dlreeturs, Stockholders and Employees thereof, purchR'le, sell and mny have an mterest III the SecUrltlCS mentIOned hercln ThiS market letter IS intended Ilnd presented merely as II. gcncral. on day to day market news and not IlB a complete nnalYsls AddItional information With respect to any securities referrcd to herem Will be