fiLE COpy -. , Walston &Co. NEW YORK Members New Y01k Stock Exchange SAN FRANCISCO LOS ANGELES PHILADELPHIA CHJCAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER August 4, 1961 There is not much to be added to last week's comment on the market. To quote From a technical viewpoint, the pattern suggests a strong triple bottom formation and the odds favor an upside penetration of the four-month trading area with a minimum ob- j ective of 725-750. The Dow-Jones Industrial average penetrated the May intra.,.day high of 714.69 to reach a new high of723.57 on Friday. The breadth index also advanced, but did not confir the new high reached by the Industrial average. This we hope will occur in the near futur .. The strength-in the-market'has been quite-selective. lett r the leaders of the advance so far have been the stocks of the larger companies of higher i vestment quality. The glamour issues have shown little rallying tendencies. Despite the new high in the Industrial average, which consists of better-grade companies, some of th glamour issues have shown little rallying power and are selling considerably below their highs of the year. For example – Stock Avnet Brunswick Corp. Transitron Universal Match 1960 High 68 1/4 74 7/8 42 3/8 62 Friday's Close 38 53 3/4 23 3/4 39 1/2 0/0 Decline 44 30 45 37 We expect this diverse action to continue. The rails have been a definitely also. are fundamental reaso s why this is so. June quarter earnings were the'lowest in and the I.C.C. ruling that it will not rule finally on any important ii ast a year has also depressed sentiment toward this group. How if a pated revival in business continues, the railroads should on ound in earnings in the 'second this – If t urs- couldstagea-sharp-rally- At Friday's close of 140. 37 ,the Rail OOe' quO bit below the year's high of 152.72 reached in March, and viewpoint, the Rail av 0 high of 174.41. From a technical n up a potential base pattern with a 170 indic – tion if the March hi h i e e he rails have rallied only modestly in the past tw weeks, but have ti owntrend line from the May high of 149.14, although the more importan 0 ntr rom the March high of 152.72 is still intact. While the rails have many majo blems still to solve, they present interesting intermediate term profit possibi es and moderate purchases are advised for those interested ina cyclical turn. There are only two rails on our recommended list of issues selling above 20 a share. They are Northern Pacific, selling at around 42 with a yield of 5. 10/0, and Seaboard Air Line, selling at 28 with a 5.70/0 yield. Both of these issues appear attractiv for purchase. Other issues that appear attractive at this stage are Atchison, Topeka & Santa Fe (25 7/8) with a 5. 60/0 yield, Canadian Pacific (24 5/8) with a 6. 30/0 yield on the present dividend, and Southern Railway (54 1/2) with a yield of 5.30/0. Our low-priced list includes one rail, Chicago, Milwaukee, St. Paul & Pacific selling at 16, with no dividend. This is more speculative than the issues mentioned above, but technically appears to be slowly forming a base. Chicago & North Vvestern (19 1/2)' which-may eventually merge with St. Paul,-also is in,the process of forming a possible base pattern from a technical viewpoint. Another area of the transportation field, the airlines, also have above average profits potentials. Two issues on our recommended list, American Airlines (26 1/4) and United Airlines (49 1/4), are still suitable for purchase. Dow-Jones Ind. 720.69 Dow-Jones Rails 140.37 EDMUND VV. TABELL -vvALSTON & CO. INC. ThiB market letter is not, and under no circumstances lS to be construed us, nn offer to sell or n solicltntlOn to buy any SeCUritles to herem The informatlOn contninC'd herem not guaranteed as to accuracy or completeness and the furmshmg thereof is not. and under no cireumstnnces is to be construed as, a representn- tion by Walston & Co. Inc. All expressions of opmion are subJect to change v.lthout notice Walston & Co. Inc. and Officers, Dlreetors, Stockholders and Employees thereof, purchase, sell and may have an mterest In the sccurities mentlOned herem. ThiS market letter IS mtended and presented merely as a genct al. mformal commentary on day to day market news and not as n complete analYSIS Additional mformntlon WIth respect to any securltlcs referred to herem will be . '' . I JOt

FILE COP Walston &reo. Inc Members Ne1v York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER, August l1, 1961 From a technical point of view, the base formed on the Dow-Jones Industrial Average during 1960 in the 615-565 range has a series of upside objectives starting at 725 and running up to 835. Most of the objectives center around the 750-775 area. The more recent base formed around 675 during April to July of this year has an upside projection of 725-750. At this week's intra-day high of 726.57, the Industrial Average had reached the first of a number of upside.objectives. vVith the business indicators sho — —– — – ing a continuing ',uptrend from the Spring lows, it would seem probable that the stock -m-arket will work nigher towar-dthe upper part oftne 725-835 area. As-the m- arket be- – comes more mature, wider price swings are to be expected. The recent decline from the A pril high of 714.69 to the June low of 673.49 was 5.70/0. Over the next six months to a year, I would expect the Industrial Average to range between roughly 835 and 710 with a number of intermediate moves of wider magnitude than 5.70/0 taking place within the range. Also to be expected is increasing selectivity with many stocks moving in opposite directions. Even though the market advance from the October low is less than ten months old, probably quite a few issues have already reached their highs for the move. Conversely, there are probably a large number of issues that have quite a bit higher to go before their peak is reached. Obviously, all issues will not reach their individual highs on,the same day, or week, or month. Technical action of each individual stock must be watched closely even within each group. In the letter of July 14th, it was suggested that profits be taken in Kennecott Copper, then selling at 85 3/4, and the proceeds be switched into Magma Copper, then selling at 54 1/2. At today's close, Kennecott was 853/8 and Magma was 61 7/8. 0 Since April, the leaders have been the action will probably continue for some further time. As the i emen . earnings becomes more issues to show price improvement. move, but would expect further adv c c. themore cyclicaL 0e s have already started to . c ogr'6;;ps as aluminums, autos, building supply, chemical, machine i ing, paper, railroads, rubber, steel, issues in each In our re l\ en 'st of issues, there also has been diverse action with some issues acting Hertz Corp. (61) than others. Probably some switches are in order. the list at 65 1/8 and has been showing poor technical action. It is suggested that commitments be switched to Continental Insurance (63 7/8). This company is the largest and oldest in its field and writes practically all types of insurance except life. Underwriting losses have been sustained in the past five years, but the . company owns an investment portfolio with a market value totaling 1.38 billion on December, 1960. At that time the equity portion of the portfolio was valued at 868 million. The common stock portion of the list was largely in blue chip issues. As of June 30th, it is estimated that the book value of Continental Insurance shares was approximately 87 as compared to its present price of 63 7/8. Technically, the stock has an attractive pattern with an upside potential of 85-95. Another suggested switch is out of Martin & Co! (363/4) into Raytheon (403/4). Martin entered our recommended list at 26 after adjusting for the split. The stock still indicates moderately higher levels, but there are a number of other aircraft issues in our list, like Boeing and North American Aviation, that appear to have a better upside potential. Raytheon Company, a leading electronics manufacturer, sold as high as 73 7/8 in 1959 and as low as 30 1/4 in 1960. The range for this year is 431/2 high and 35 1/4 low. It appears to be building up a base pattern and should show more dynamic action than Martin & Co. Dow-Jones Ind. 722.61 Dow-Jones Rails 139.81 EDMUND W. TAB ELL WALSTON & CO. INC. This market letter is not, nnd under no circumstances is to be construed as, an offer to Ben or a Bohcitntlon to bu) any refcTl'ed to herein The 1n.formll.tiou contamed herein is not guaranteed as to accuracy or completeness a.nd the furnIshmg thereof IS not, nnd under no CIrcumstances IS to be construed a.s, II. representll.- tlOn by V,'alston & Co Inc All e'lpresslOns of opmlon are subject to change WIthout notice Walston & Co, Inc, and OffIcers, Directors, Stockholders Ilnd Employees thereof sell and may have an Interest in the securities mentiOned herem ThiS market letter IS intended and presented merely as a general, commenWl on day to day market news not as a complete analYSIS. Additional mformatlOn With respect to any securities referred to herem upon request . ..

FILE COpy Walston &Co. ———Inc——— Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHJCAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER August 18, 1961 The market, as measured by the Industrial average, has held in a narrow trading area for the past two weeks. An intra-day high was reached this Friday at 727.54 and the low was reached this Yrednesday at 712.62. Individual stocks moved over a much wid r range. liilhile there was strength in a considerable number of issues, there was also sell ing pressure in an equal number of issues. With institutions and mutual funds an importa t factor in the market pattern, a relatively large buy or sell order quite often produces a wide price swing without any new developments. . Breadth-of-themarket n9t , Both have moved higher in the four weeks since the present advance started, but both are well below the May highs despite the fact that the Industrial average is in new high terri- tory. There is still time for these indicators to confirm the strength in the Industrial ave age and September would be the logical time for this to happen. Failure to do so, howeve , would be a warning signal, but in the past these warning signals have occurred some six monthso a year before the averages reached their high. During the period between the warning and the ultimate high in the averages, individual issues one by one reach their , highs and start a declining trend. That is what brings a loss of breadth and upside mome – tum. An encouraging feature of the market during the past week was the strength in the rails. This group has been in a downtrend since 1956 when an intra-day high of 182.54 was reached. After that, the Rail average declined almost 50 to 94.91 in 1957. The raIl to the 1959 high of 174.41 was below the 1956 high despite the fact that the Industrial ave – age moved 30 above its comparable 1956 high. The carried the Rails back to 122.58. The rally since then has been discouraging. e h Ahe average this yea was reached in March at 152.72, followed by a 1 2 n With the Indus- trial average making newall-time highs, the Rails 11 t , were unable to rally above not only the JulY' high of 143.26, t 9. 19h of May, or the March ehigh of '152. 72– However , this-wee 's ac io' '. – – een – e encouraging. There were 'tnr ' downtrend lines on the Rail averag e t 1 rtant was the downtrend line extendi through the May and July hi s. h' b on the upside two weeks ago. We men- list. week' s r' as confirmed the initial constructive indication. There were two ant downtrend lines in the Rail average. One extends through the March Ii of 2 and the May high of 149.14. The other, and much more important, downtrend' extends through the 1959 high of 174.41 and the high of this March… Both of th downtrend lines have broken on the upside, although not by much. Ability tp move above the March high of 152.72 would be the final confirmation from a technical viewpoint and would indicate a minimum move to about the 170 level. With the market rise becoming more selective, individual issues must be watched closely for signs of loss of upside momentum. At this stage of the market, holdings should be largely confined to issues showing good relative strength and selling substan- tially below upside potentials. With this in mind, a number of changes are suggested in our recommended list. First Charter Financial (51 1/2) entered our list at 29 1/8. It is neaT its upside objective and would be inclined to take profits and switch into Kerr McGee The sY'itch of Georgia Pacific (64 at 471/8, intC2.. U. S. Plywood (30) is also suggested. Three other switch suggestions are General American Transportation (90 1/4) recommended at 79 3/4, into Pullman (37 1/4), Pillsbury (63), recommended at 44 5/8, into General Mills (36 1/2) and United Artists (34 1/4) 'recommended at 32 1/2, into Collins & Aikman (38). All five purchases are already.on our recommended list. A new complete list of recommended issues will be available for perusal at ;your Walston office next week. Dow-Jones Ind. 723.54 Rails 144.52 EDMUND W.TABELL WALSTON & CO. INC. This market letter in not, and under no circumstances IS to be construed 11.5, an offer to sell or 11 solieitatlOn to buy any securities referred w herein The information contained herem Is not guaranteed as to accuracy or completeness and the furnIShing thereof is not. and under no CIrcumstances 1.8 to be eonstrued aa, II. representa- Uon by Walston & Co. Inc. All expressions of oplmon are subJect to change WIthout notice. Walston & Co, Inc., and OffIcers, DIrectors, Stockholders and Employees thereof, purehaae, sell and may have an mterest in the securities mentioned herem This market letter IS intended and presented merely as a general, informal commentary on day to day market news and not as a complete analysis AddItional Information With respect to any securities referred to herem Will be . WN 301

, August 21, 1961 ; RECOMMENDED LIST OF STOCKS SELLING ABOVE 20.00 A SHARE EDMUND W. TABELL Close 8/18/61 American Airlines 24 1/2 American Broad. Fara. 45 3/4 American Metal Climax 36 1/2 American Optical 693/4 American Fotash & Chern. 56 3/4 American Smelt. & Ref. 66 3/4 American Stores 89 3/4 American Viscose 53 1/4 Anderson Clayton 42 3/4 Arkansas Louis.Gas 38 1/2 Atchison, Top. & S. F 27 1/8 Audio Devices 38 1/2 Barber Oil 57 Bestwall Gypsum 44 Boeing Airplane 55 1/4 Canadian Pacific 24 Carpenter Steel 47 3/4 Caterpillar Tractor 40 1/2 Central South West 42 7/8 Chicago & Northwest 21 3/8 Chicago Pneumatic Tool 33 1/2 Cluett Peabody 72 Colgate Falmolive 49 3/8 Collins & Aikman 38 Columbia Pictures 35 1/4 Columbian Carbon 69 3/8 Consolo Mining & Smelt. 24 1/8 Consolo Natural Gas 56 1/2 Continental Insurance 69 Daystrom 30 Deere & Co. 49 1/4 Diamond National 42 Dome Mines 24 3/8 Dominion Tar & 18 1/2 Eastern Gas & Fuel 40 1/4 Electrlc Storage Battery 56 3/4 EI Paso Natural Gas 263/4 Ex-Cell-O 41 3/4 FMC Corp. 80 7/8 Ford Motor 93 1/8 Freeport Sulphur 32 1/8 Chrrett Corp. 46 5/8 General Mills 36 1/2 General Precision Equip. 68 1/4 Goodrich, B. F. 75 1/4 Granite City Steel 48 Great NorthernPaper 58 1/2 Great Western Sugar 34 7/8 Haveg Industries 44 1/4 Hercules Powder 104 Heyden Newport 21 7/8 Holly Sugar 36 1/8 Ideal Cement 29 1/2 Insurance Co. of N .A. 1013/4 International Min. Chern. 48 1/8 WALSTON & CO.IN,C. I Original Recom. S&P Price Rating 24 B 45 3/4 B 24 5/8 B 54-50 B 427/8 B 55 1/8 B 74 (a) A 52 3/8 B 36 3/4 B 35 3/4 A- 25 7/8 A- 26 3/8 B- 67 1/4 (a) B 393/4 (a) 36 3/4 24 5/8 B 47 A- 30 1/2 A 40 1/4 A 19 1/2 C 28 3/8 B 56 3/4 43 5/8 B A- 43 B- 21 7/8 (b) B 52 1/2 B 203/8 B 51 1/8 A 63 7/8 45-43 B 52 3/4 B 35 1/2 B 25 1/8 18 3/8 B A- 29 3/4 B 54 B 28 B 35 3/4 A 60 3/4 A 69 1/2 B 24 7/8 51 7/8 A A- 32 3/8 A 56 B 63 1/4 A 37 1/2 B 57 B 29 B 34 5/8 (c) B 80 1/4 A 23 7/8 B 30 1/2 B 26 7/8 78 32 B Comment Buy-Hold Hold Hold for 48 Hold for 90 Hold for 63. Hold Hold for 95-100 Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold for 45 Buy-Hold Hold Hold for 65 Buy-Hold Buy-Hold Hold for 45 Buy-Hold Buy-Hold Buy-Hold Hold for 80 Buy-Hold Buy-Hold Hold for 45 Buy-Hold Buy-Hold Hold for 75 Buy-Hold Buy-Hold Hold Buy-Hold Buy-Hold Buy-Hold Hold for 50 Hold Buy-Hold Hold for 50-55 Hold for 90 Hold for 115-125 Buy-Hold Hold Buy-Hold Hold Buy-Hold Hold for 70 Buy-Hold Hold for 45 Hold for 54 Hold for 125 Hold Hold Buy-Hold Hold for 125 Buy-Hold —– … -2- Close International Tel & Tel Jewel Tea Johns Manville Kern County Land Kerr McGee Lone Star Gas Louisiana Land Explor. Magma Copper Marquette Cement McIntyre Porcupine Mesabi Trust . Microwave Associates Miss. River Fuel National Aviation Newmont Mining North Amer.Aviation Northern Natural Gas Northern Pacific R. R. Oklahoma Gas & Elec. Pacific Gas & Elec. Panhandle Eastern Pipe L Penney, J.C. Phillips Petroleum Pitney-Bowes Pittsburgh Plate Glass Pullman, Inc. Raytheon Reeves Bros. Reynolds Metals Richfield Oil Royal Dutch Seaboard Airline R. R. Seaboard Finance Southern Calif, Edison Southern Natural Gas Sperry Rand Sterling Drug Swift & Co. Tennessee Corp. Texas Gulf Sulphur Thompson -Ramo Wool. Twentieth Century-Fox United Air Lines United Biscuit United Shoe Machinery U .S.Borax U. S. Plywood U. S, Vitamin Varian Associates Woolworth, F. Vol. 58 5/8 70 68 1/8 68 1/4 47 5/8 25 1/2 73 3/4 59 1/2 61 1/2 44 11 5/8 38 38 1/2 31 72 3/4 547/8 39 1/8 43 42 83 1/8 45 3/4 48 3/4 63 1/2 58 3/4 65 1/4 37 1/4 43 1/8 21 7/8 46 1/4 42 7/8 32 1/8 29 22 1/8 75 45 1/4 27 3/4 92 445/8 61 25 3/4 58 1/4 35 1/2 47 1/8 36 3/4 641/8 43 3/4 49 1/4 40 3/4 533/8 75 1/8 Original Recom. Price 48 50 1/4 60 53 50 235/8 (c) 50 1/2 54 1/2 53 1/4 27 3/4 8 (d) 33 1/8 34 1/8 27 3/4 (e) 62 1/2 41 1/2 30 3/8 42 1/8 35 1/4 75 3/8 (d) 47 7/8 41 1/2 53 7/8 41 69 3/4 39 3/4 40 3/4 245/8 59 42 (c) 38 1/8 (a) 32 3/8 21 7/8 (a) 66 38 3/8 27 1/4 693/4 44 1/2 50 19 1/8 57 3/4 36 3/4 30 3/4 37 3/4 59 373/4 48 3/4 37 40 1/8 (d) 69 S&F Rating B Comment Hold for 75 A Hold for 80 A Buy-Hold A Hold for 85-90 A- Buy-Hold A- Hold for 33-35 A Hold for 85 B- Buy-Hold A Buy-Hold B Buy-Hold Hold for 18 Hold A Hold for 50 Buy-Hold A- Buy-Hold Hold for 65 A- Hold B Buy-Hold A- Hold for 54 A Hold A- Buy-Hold A Buy-Hold A Hold for 75 A Hold for 75 A Buy-Hold B Buy-Hold B Buy-Hold B- Buy-Hold B Buy-HOld A Buy-Hold A Hold B Buy-Hold Buy-Hold A Buy-Hold A- Buy-Hold B Buy-Hold A Hold for 105 B Buy-Hold A Hold for 85 B Buy-Hold A Buy-Hold B Buy-Hold B Buy-Hold B Buy-Hold B Hold B Buy-Hold B , Buy-Hold A Hold for 49 Buy-Hold A- Buy-Hold (a) – Adjusted for stock dividends. ,, (b) – If rights to buy Screen Gems at 9 were used, each 100 shares owns 20 shares Screen Gems now selling at 26, (c) – Adjusted for split. (d) – Adjusted for sale of rights and split. (e) – Adjusted for capital gains distribution.

Walston &Co. lnc FILE COpy Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CI-\ICAGO OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER August 25, 1961 KERR-McGEE OIL nmuSTRIES.,. INC. Current Price Current Dividend Current Yield 45 .80 1. 8/0 Long-Term Debt Common Stock 65,000,000 6,270,000 shs. Gross Op-erlnc1960'1-(E) 175-,000,000 After reaching a high of 60 last April vs. a 1960 low of under 20 (adjusted) KerrMcGee Oil Industries, Inc. reacted to a recent low of 405/8. From a technical point of view, the stock appears to be forming a base around present levels before resumin an aavance tb-tl1elcirig..termobjective of-10 Gross Oper.Inc.1959-60 156,310,000 Earned Per Sh. 1960-1 (E) Earned Per Sh. 1959-60 2.70 1.36 indicated by the original base formed in 1957-60. It is quite possible that substantia cash generation over the next five years, properly utilized and reinvested by an. as- Mkt. Range 1961-57 60 – 18 3/8 tute management, could make such a price Note Fiscal year ends June 30th. attainable. Kerr-McGee derives its income from four major sources. These are (1) Uraniu mining and milling under Government contracts running to 1966, (2) Oil and gas product- ion in offshore Louisiana and California, in the Mid-Continent area and in Venezuela, (3) Contract drilling with some twenty-six drilling rigs in operation, and (4) Oil refining and marketing under the Deep Rock brand in the Mid-ItVest. Oil and gas operations and Kermac Nuclear Fuels, the largest uranium producing accounted for so e 37 of fiscal 1961 earnings, with other income, largely f c ctldrilling and other uranium operations, making up the remainder. ((0 Earnings so far reported for the year 6 ow a dramatic increa e over last year's results with 2.18 having earn th st nine months on a greatl increased number of shares, vs.- 1. 00 in-t c para will approximate 2.70 per share on I outstanding compared with 1. 36 per share on 4.8 million sha s i l a The gain largely reflects the impact for the first time. A u i' which are now part of Kerr-McGee's operation did not contribute fiscal 1960-61, and the basic earning power of the company as present on' ed is probably well in excess of 3.00 per share. Admittedly, it i ardous to project uranium earnings into the future, especially since ore and conce tes are being sold to the Government under contracts expiring in 1966. However, as the largest and lowest-cost factor in the industry, Kerr-McGee is in a strong position to participate in even a materially smaller ultimate market. It is also true that Kerr-McGee faces intense competition in the oil refining end of its business. However, projections over the next five years, especially cash flow projections, appear to outweigh these Shortcomings. Cash flow for the first nine months of fiscal 1961 was 25 million and should probably run at a rate of 42 million a year for as long as the uranium contracts continue. Thus, expected cash throwoff in the period June 1960-64 could be in the neighborhood of 150 million. ,,\Then it is considered that Kerr McGee's gross plant account in June 1960 was 170 million and that the company at that time had an approximate potential of 3.00 per share earningpower, the magnitude of earnings that could be generated from effective employment of new funds becomes substantial. In this connection, it can be noted that the Kerr-McGee management has one of the strongest reputations for mineral discovery and development in the country. Several efforts toward expansion have already been made. The company will begin to operate the only commercial helium plant in the United States some time in No- vember and has become, as a by-product of its uranium operation, America's third largest producer of vanadium. It owns an interest in a large potash property in New Mexico which could eventually become a major U. S. source of this mineral. In addition, the contract drilling operation will be expanded by the construction of what will be the world's largest offshore drilling rig. Costing 7 million, the rig is capable of operating in 175 feet of water vs. present limitations of 125 feet and it is expected to rent for about 8,000 a day Th mkaihe, st6lokl cont!!!Iti herClll is not gunratteed as to accuracy or completeness tt;erooIlI1/tI'on;bi..aMnaloon\tJ..rnuaiel,r,n1ois-c'..a m 19 . , . . , , ……! t a -..tlon reptescnta- Catlill UiI..IW'ft'UliliIlS of opinion arc subject to change Without notice Walswn & Co, Inc, and Officers, Directors, Stockholders and Employccs'Thcrrof, pttrchast!', sell and may have an tnterest m the securities hrtrtArn and presented merely as a general. ne securities referred to herem