—— —- 'fILECOP'f Walston &CO. Inc Membel's New York Stock Exchange , NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CK/CAGO OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER July 28, 1961 In the short space of four trading days, the Dow-Jones Industrial average moved across almost the entire 714-671 area in which the market has held since early May. From Monday's intra-day low of 678.27, the market advanced to an intra-day high of 709.15 on Friday. The average has now held at above the 670 level on three downswings. The Apr 1 low was 671.64, the June low was 673.49, and last week's low was 674.80. From a cal 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 objective of 725-750. Other technical indicators also showed favorable-technica-l action. Volume increased shaq 1; on the advance and the breadth of the market index improved. The breadth index faces an i portant test in the next several weeks. Ability of the index to reach new high territory alor g with the averages would be a very constructive signal. Failure to do so would be a warnin signal of contrary action. This signal is usually given some 6 months or more before the averages actually reach their highs and is an indication of a mature market and increasing selectivity. This week's advance was sparked by President Kennedy's firm stand on Berlin and his request for increased defense spending. He asked for no immediate increase in taxes, but in the background lurked the distinct possibility of excess profits taxes, price controls rationing, etc. , if the situation worsens. No two periods are exactly comparable, but the nearest approach to what might happen in the near future is the Korean War period of June, 1950 through 1952 when all the above taxes and controls were ultimately imposed. Ad- mittedly, conditions are quite different – not only in the general price level, but also in thl fundamental position of individual groups, but it might to compare the grou actionin the above period. The Dow-Jones Industrial avera ad eGlapproximately 500/0 from the June 1950 low of 197 to the 1952 high of 2W n t vU!i&l a 500/0 advance ill the averages on this advance – 20 would be more' L are the percentage advances of-75 Standard &-Poor's group It will be noted that the groups that showed the best relate issues and heavy machinery. – – . '- – e stocks, transportation – Crude 50 Textile Weavers 25 Llfe Insurance 50 Drugs 24 Material Handling -v-JONES IND. 50 Baking 24 Rubber Shipbuilding 49. Dept. Stores 22 Oils – International 96 Automobiles 49 Utility-Electric 22 Fertilizers 96 Machine Tool 48 Banks 21 Aluminum 96 Invest. Cos. (Closed) 48 Publi!hing 21 Oils-Domestic 86 Broadcasting 47 Motion Pictures 20 Rails 84 Machinery-Steam 46 Printing Equipment 18 Mining & Smelting 82 Machinery-Ind. 44 Natural Gas-Dist. 17 Oil Well Equipment 78 Farm Machinery 43 Building Materials 16 Paper – Containers 71 Chemicals 39 Retail-Apparel 14 Air Transport 69 Shipping 38 Sugar Refining 14 Coal 69 Fire Insurance 37 Beet – Sugar 12 Sulphur Copper Metal Fabricating 67 Companies 36 66 c Distillers 36 66 Insurance-Casualty 34 SSohaopess Textile -Apparel 89 8 Steel Alloys 66 Cement 33 Food Packers 7 Paper 65 Railroad Equipment 32 Telephone 7 Gas Pipe Lines 64 Gold Mining 32 Biscuit 6 Lead & Zinc 57 Machinery-Construction 54 Electrical Equipment 54 Foods-Canned Dal'ry Mail Order 32 Tobacco 3 31 Containers-Metal-Glass 2 30 Meat Packing 2 Radio & Television Sugar – Cane 53 Steel 30 Variety Chains 52 FOoffoidceCEhqauinips ment 28 26 Soft Drinks 1 – 20 Dow-Jones Ind. 705.13 DOllr-ToneS Bails 139 06 EDMUND W. TABELL T\iVALS'T'Off & CO. RfC. ThiS mnrket letter is not, and under no circumstances IS to be us, an offer to sell or n sohcltniJon to buy Ilny se-curitIes reierred to herem The mformatlon contnmed hcrcln IS not guaranteed as to accuracy or completeness nnd the furnishIng thereof IS not. nnd under no cIrcumstances IS to be construed as, n repr-cscmtn. lion hy Walston & Co, Inc All expressIOns of OPInIon ate subJect to chnnge WIthout notice. Wnlston & Co, Inc, !lnQ Officers, Directors, Stockholders nnd fmployccA thereof, purchase, Bell nnd mny have an Interest In the sccuntles mentioned herein ThiS mnrket letter IS itJtended and presented merely as n Itenernl, mformnl commentury on day to day market news an9 not as a complete analysis Additional information With respect to any securitIes referred to herein will be .. . . . .Jl

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

r—————————————————————————— filE COpy Walston &Co. Inc Membe,'s New yo,'k Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CH,lCAGO OFFICES COAST TO COAST AND OVERSEAS lABEll'S MARKET lETTER September 1, 1961 As was to be expected, the stock market put on a rather dull performance in the pre-holiday week. A number of issues showed above-average performance, but they were offset by an equal number of stocks that showed declining tendencies. Despite the fact that the various Industrial averages reached new high territory in August, both market breadth and upside volume are considerably below the peaks reach ed in April and May and, on a twenty-five-week moving total, there are almost as many stocks declining'as advancing. -The indiscl'iminate'buying of new stocks in the early part of this year has left its mark on the market pattern,and the fast trading speculative buyers of early Spring have become involuntary investors with most of their buying power tied up in issues that are considerably below the highs. The overspeculation in April and May also caused some uncertainty in more erudite circles and has resulted in the confining of purchases to better grade securities with clearer nearterm prospects. The irregular action of the past several months has not been brought about by any great increase in selling pressure, but rather by a diminution of the buying urge. On our shorter-term volume indices, selling volume reached its peak in June-July and has been de clining ever since. However, there has been no increase in buying volume. Our ten-week moving total of upside volume is near the low of the year. If there is going to be any increase in both the speculative and investment buying urge, it should begin to show up pretty soon. Just what will be the cause of an increasing desire to buy is problematical. The obvious answer, of business pattern. Economists are practically unanimous in e futbu ' ess for the of 1961 and into 1962. Earnings on the Dow-Jones 0 second quarter of this year will be around 8.20. This is up ly the ' quarter earnings of WuT5.70 C By-tne fourth quarter it is pos-sible t – 'aI-average will' be 'earning -at – the rate of 40.00, even though year of 1961 may not be above the 32.30 earnings of results. Earnings in 1962 could reach the r sli t ' r.'i The quest' t arket has already discounted the anticipated earn- ings increase. Ea' Industrials for the twelve months ended June 30th were approximately 9.30 t present price levels, the Industrial average is selling at 24.6 times earning is historically high PIE ratio is obviously discounting a sharp earnings rise. n 1950, the Dow-Jones Industrial average earned 30.70, which was just about the same as the earnings of the past twel ve months. However, the Dow- Jones Industrials in 1950 sold at a high of 235.05, or at about one-third of present levels. Obviously, the market was greatly undervalued in 1950, but also obviously such under- valuation does not exist today. This letter has not changed its general market views expressed in this letter for quite some time. It is our opinion that the stock market is in the final wave of an ad- r-rance that started in 1949 at the 160 level. Our objective is 725-835. The lower part of that level was reached this month at the intra-day high of 730. 17. Although some preliminary warning signs have been given, no indicatin asyet that the top has been reached and it it our expectation that the averages will work higher into the 725-835 range. Most of our objectives center around the 750-775 level. However, it must be realized that the risks are greater as the market approaches closer to what we think is the upside objective. It must also be realized that selectivity will increase. Probably a great many stocks have already reached their highs. For the intermediate term, the groups showing the best relative strength action.,which-ar..e-still some distance from their upside potentials, include' Automobiles, Auto Equipment, Chemicals, Gold, Paper, Rails, Rubber and Textiles. Dow-Jones Ind. 721.19 Dow-Jones Rails 144.19 EDMUND W. TABELL WALSTON & CO.INC. This market letter is not, and under no Circumstances lS to he construal DS, an offer to sell or a sotlcltation to buy any seCUrities referred to herein The mformabon contnmed herem IS not guaranteed IlR to nc'uracy or completeness and the furntshmg thereof not. and under no circumstnnccs 19 to be construed as, a repre!ent..a- tlon by Walston & Co. Inc All (X1)rCSSlOns of opmion nre subJect to clmnge without notlc(! Wnlston & Coo, Inc, and OffIcers, Directors, Stockholtlero; nnn lmployees thereof, purchase, sell an,l may have an mterest in the securIties mentioned herem ThlS market letter IS lntcnded and presented merely as a general, informal commentary on day to day market news ani not as a complete analysls Additional mformatton WIth respect to any secunttes reicrr'(!d to herem wIll be furrushed request WN 31

fILE COpy Walston & Co.– Inc Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST AND OVERSEAS CHJCAGO TABELL'S MARKET LETTER September 8, 1961 The Dow-Jones Industrial average reached a newall-time top on Thursday's in- tra day high of 733.53. The New York Times 50-Combined Stock average and the New York Herald-Tribune 100-Stock average also reached new high territory. Standard & PoOr's 500-Stock Index failed by a fraction to equal its August 22nd high. The breadth-of- the-market or internal action of the market, however, presents a quite different picture. Our breadth index, which encompasses the entire market rather than the relatively few stocks in the averages, has failed to better the May high despite the new highs in the aver ages. This has.cr-eated a must be corrected before the marketca resume a broad advance. There is still a possibility of this happening, but the index is nearer its July low than its May high, and a new low would be a discouraging development Volume indications are on the unfavorable side also. The twenty-five week total of upside volume has dropped from a May high of 565 million shares to a twenty-five week total of 276 million shares for the week ended September 5th. Downside volume for the past twenty-five weeks has increased, but at a comparatively modest rate. Upside volume on the twenty-five week moving total has declined 50/. from the May high showing a definite loss of upside momentum despite a new high in the averages. Downside volume has in- creased only about 12. This indicates no greatly increased liquidating pressure, but rather an increasing reluctance to add to commitments. Most of our breadth indices pOint to the probability that the market, as far as the majority of stocks are concerned, made its high in the April-May period,despite the fact that the Dow-Jones Industrials reached a high of only 714.69 at that time,as compare to a high of 733.53 during the past Some new develo occur to restore the buying urge and move the market higher on a broad s e. however, if the market loses its upside momentum after a steep asc , let h occurred from October to May, it is difficult to renew buying inte y'whiI rket is still up. Buy- . . h ion of the overbought pattern. For a long time, this t e Dow-Jones Ind ustrial average had a series of upside . to 835, with the majority of objectives centering around the 7 -775 v. e aWage has reached the lower part of the sug- gested upside pot t 1 i n poor breadth action, it seems doubtful that the average will atta jective on the present move, illthough it may do so at a later date. It 1 S g that intermediate-term trading accounts maintain a 25 liquid position until th eadth indications improve. The prese pattern is unusual from a timing viewpoint. In both the 1953-1956 advance and the 1957-1959 advance, the rise did not start to lose momentum from a breadth viewpoint until sixteen to eighteen months after the advance started. The present market began to lose its upside momentum after only seven months of advance. This suggests the probability that after a correction of the overbought situation brought about largely by the rather indiscriminate overspeculation in new issues and speculative glam- our stocks, the market might resume its advance deeper into the 725-835 range after the breadth pattern is corrected. Despite the fact that many indiVidual stocks have declined sharply, the market, as measured by the averages, has not had a rea!..correction since the present advance started in October, 1960,at 565. The decline from the May high of 714.89 to the-June low of 673.49 was less than 6 and retraced about 28 of the previous advance. A normal one-third to one-half retracement from this week's high of 733.53 would bring the average back to the 677-649 level. A possible indication that this could be the course of events, would be indicated by a downside penetration oftheAugust low of 709.54. Despite the cautious tone of this letter, it does not mean that we are overly bearish. It is only suggested that some buying power be held in reserve in the event of a technical correction due to poor breadth action. Would continue to hold positions in groups that are showing the best relative strength action. The groups mentioned in last week's letter fall into this category. They include Automobiles, Auto Equipment, Chemicals, Gold, Paper, Rails, Rubber and Textiles. During the 1960 decline in the market, many issues bucked the trend. In the event of a nearby correction, the same thing will occur, but probably the better acting issues will be in different groups than

FilE COpy Walston &Co. Inc Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CH,lCAGO OfFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER September 15, 1961 The market in the past week twice declined to near the August intra-day low of 709.54 on the Dow-Jones Industrials, but held above the low point on both occasions. The Monday low was 710.47 and Friday's low -was 710.23. The Industrial average closed 4.61 pOints lower on the week. Breadth action showed no improvement. The poor breadth action since the May top in the breadth index has been the result of a technical correction of the speculative excesses of the Spring splurge in glamour stocks and new issues rather than any fundamental change in either the international picture or the business outlook. Locked-in speculativebuying power has brought-about a loss of upside momentum in the speculative favorites of the early part of the year. Best' price action in recent months has been in the better-grade investment issues. Regardless of the action of the averages, the outlook is for an extremely selective market over the nearer term with individual stocks moving in both directions, but with the majority working lower. Of the over 1,500 individual stocks that we cover from a technical viewpoint, probably a third have favorable or above-average technical patterns while the remainder are either unfavorable or negative. In an uncertain period of this -nature, when breadth action is poor, it is wiser to concentrate holdings in issues that are acting better than the market rather than attempt to guess the bottom of a downtrend. From a group viewpoint, the groups that show the best technical action and are still selling below their upside potentials include Automobiles, Automobile Equipment, Chemicals, Electrical Equipment, Gold, Paper, Rails, Rubber and Textiles. The groups showing the poorest technical action include Airlines, Aluminum, Electronics, Farm Machinery, Fertilizers, Glass, Moving Pictures, Oil, and Soft Drinks. The remaining groups are more or less neutral in their c io ture is compli- cated by the fact that there is even diverse action t e oup mselves. The fertilizer group, for example, is acting very Inte onal Minerals & w -another fertilizer -issue, Tennessee Corp. (59 3/4) is showin be – ge nical action. Both issues are on our recommended list. A swit e ti al Minerals & Chemical from Based on thi s eo' g number of other switches in our recommended llst are suggest n ' ues are showing below-average action at the mo- menh American A' i s ) , American Broadcasting (44), Barber Oil (53 3/4), Bestwall Gypsum (3 1/ eere & Co. (505/8), Garrett Corp. (461/8), General Pre- cision Equipment (6 ), Heyden Newport (21 3/8), Richfield Oil (403/8), Tennessee Corp. (593/4), Thompson-Ramo Wooldridge (56 3/4), Twentieth Century-Fox (35 1/2), United Airlines (41 7/8), and U. S. Borax (36 1/2). We are dropping these issues from the recommended list. The following issues in our recommended list have higher upside potentials and are suggested as replacements for the above issues American Viscose (60 1/8), At- chison, Topeka & Santa Fe (27 1/4), Chicago & Northwest. (21 1/4), Colgate Palmolive (471/8), Daystrom (34), Diamond National (431/2), Dome Mines (24 1/2), Goodrich (72 3/8), International Minerals & Chemical (491/2), Kerr McGee (41 1/2), Newmont Mining (73), North American Aviation (53), Penney '1./8), Raytheon (39), and Wool- worth (74 3/8). — – Also being dropped from our recommended list is Columbian Carbon (66 3/8). This company is to be merged into Cities Service Company with each Columbian Carbon stockholder receiving 0.67 shares of a new Cities Service convertible preferred per share of Columbian Carbon. This stock would carry a 4.40 dividend and each share would be convertible into 1.63 shares of Cities Service common. For the long term investor the new preferred carries a relatively generous 4.40/0 yield and offers a conversion feature which may ultimately be extremely valuable. On this baSiS, the stock may be held, but the investor interested in intermediate-term capital gains would probably find the stocks mentioned above more suited to his purpose. Dow-Jones Ind. 716.30 EDMUND vV.TABELL B e.. . n cfls'ias !i4a. SXC)N & CO.ThIC. This market letter is not, and under no circumBtnnces IS to be construed as, an offer to sell or a soliCitatIOn to buy any securities referred to herem The mformatlon conwined hereIn is not guaranteed lUI to accuracy or completeness and the furnlshmg thereof IS not, and under no Circumstances IS to be construed as, a representa- tIOn by Walston &, Co. Inc. All e.presslOns of opmion are subJect to change Without notice. Walston & Co, Inc.. and Officers, Directors, Stockholders and Employees thereof, purchase, sell and may ha\'C an mterest m the securities mentioned herem ThiS market letter is intended and presented merely as a general, informal commentary on dny to day market news an9 not as n complete analYSIS. AddltlOnal information WJth respect to any feCurltlcs referred to herem wlil be .. . . . . WN 301

FILE COpy Walston &Co. Inc Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHlCAGO OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER September 22, 1961 Continued weakness in a number of over-exploited growth issues caused enough uncertainty in the general market to push the various industrial market averages below their August lows. The Dow-Jones Industrials, which had held in a 30/0 trading range between 733.53 and 709.54 for five weeks, broke out on the downside of that area to reac a low of 698. 70. Volume on the decline was small, as has been the case since the current irre- gularity started. Despite the fact that the averages reached their high earlier this month the majority of stocks made their highs in April and May when our breadth index reached – its-high.- This inteI'est'rather-than increasing selling pressure. Our technical indicators show that buying power has been , steadily decreasing since April and is now lower than at any time since January when the Industrial Average was in the 620-657 range. This loss of buying momentum has been the main technical reason for the current irregularity. It would appear that a strong resurgence of the buying urge is needed to cause mo than technical rallies in the general market over the nearer term. This renewal of buyin ,momentum could be brought about by some new and unexpected bullish development, but that does not appear to be in the cards at the moment. A decline in the buying urge after , a strong advance like that witnessed from October, 1960 to May is usually corrected by a decline to a price level where the market again appears attractive. It is difficult to renew the buying momentum while the market remains high. From a technical viewpoint, there is a strong support area in the 700-675 zone. , The small top formed since August at 730-720 has a e Petial of 690-680. The broader top formed across the May and September highs a 0 7lCO indicates a possibl 645. A normal one-third to one-half correction of – oi v since October 1960 would bring the Industrial average back to 677 0 consider the 680- 650 area a favorable buying zone for a new' in 25-835 area in 1962. , — h-er' -alWaysIJe-manysituations- that will show better or worse relat' a mpared to the general market. As an example, Ford Motor at 107 1/8 while Texas Instru- ments reached a low f ii;n Texas Instruments reached its high of 256 1/4 in May, 1 6 se' in the 67-70 range and the Dow-Jones Industrial Average was arou the average is ll li' h r 0 s prices, Texas Instruments is down about 600/0 while ord is up over 500/0. V/hile the ave s may work somewhat lower first, we believe that after the correction of speculative excesses earlier in the year is completed, the market will probably reach new high territory early in 1962. There are several situations in our recommended list that merit buying attention, including the following. Goodrich (73) expects earnings in the third and fourth quarter to top those a year earlier by a substantial margin and also expects that 1962 will also show improved earnings. The stock appears attractive. International Minerals & Chemical (493/4) has arranged a loan for 40 million with Prudential for development of its extensive potash properties in Canada. This is one of our favorite issues for long term appreciation. U. S. Plywood (48) forecasts a gain in 1962 fiscal earnings. This issue has a very strong technical pattern. We are parficlilarlyimpressed bylliEi a-ction offhe moved above its downtrend line from the 1959 high of 174.41 over a month ago and has held up very well ever since despite the decline in the Industrials. At Friday's intraday high of 145.13, the Rail Average was close to the August high of 145.88. If, as expected, the business pattern continues to improve, some rails have defensive qualities with the better-grade issues showing yields of over 50/0. The better-grade rails on our Recommended List are Atchison, Topeka & Santa Fe (26 1/4), Canadian Pacific (24 1/2), Northern Pacific (42 1/8), Seaboard Airline (28 5/6,and Southern Railway (56 1/2). The more speculative issues are Chicago,MHwaukee, St. Paul & Pacific (16 7/8) and Chicago & Northwestern (223/8). Neither of these issues are on a dividend basis at the moment.