Viewing Month: March 1962

Tabell’s Market Letter – March 02, 1962

Tabell’s Market Letter – March 02, 1962

Tabell's Market Letter - March 02, 1962
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NEW YORK Walston &- Co. ———Inc.——— Members New York Stock Exchange SAN FRANCISCO LOS ANGELES PHILADELPHIA CH.JCAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER March 2, 1962 After reaching a low of 702.91 on Monday, the Dow-Jones Industrials recovered later in the week and reached a high of 715.89 on Thursday'. It appears probable that w are witnessing the initial stages of a base, formation from which another penetration of th heavy overhead supply between 720 and 740 may be attempted. For the moment, at least, as pointed out last week, the downside risk appears to be minimal with the small top for- mation of a few weeks ago suggesting nothing more than a decline to the 700-690 area. I portant points to watch are the recent high of 721. 39 and the January low of 686. 89. ,The ma,in reason recent ratherspotty to be a lack of buyi'ng- interest rather than any particular increase in 'selling pressure. UrulerSuCh cond' – tions the process of base formation could take a good deal of time and extreme selectivit will, no doubt, continue. In line with this probability we are making further changes in our recommended lis . We are removing from the list seven securities which have either reached upside objecti e or have had sharp drops in relative strength, and we are adding five new recommendatio s The seven securities being deleted are American Metal Climax (36), American Optical (65), Carpenter Stee1(45), Granite City Steel (41), Mississippi River Fuel (39), Pitney Bowes (60) and Sterling Drug (86). These seven, plus Boeing, removed a month ag , make eight deletions since the first of the year. Six of these eight stocks have performed better than the Dow-Jones Industrial Average from the time of their recommendation to . the time of removal with three of them having advanced more than three times as much as the Dow. One stock advanced slightly less than the Dow, and one (Carpenter Steel)sho a small loss. The five stocks being added are Bendix Corp. Zellerbach (56), Murphy Corp. (28) and Union Ba -Cam e, For some weeks now, a number of cyclical p , a ay marketwise since 1956, have tended to show impro ct group which,although the. , of having reached a long-term sented in our list by Gulf eil (44) a r int ional oils are already repre- l t c . Murphy Corporation is an entire- ly different operation. A f'oducer with one of the better growth . records in the industr ,the c s able to increase both net income and cash I flow in every yea c, t' year's results should extend the improvement. 1961 earnings we a . 43 per share with cash flow of some 3.40 per share. Another majo lic rea which appears attractive for new buying is the paper l industry and we are sting Crown Zellerbach and Union Bag-Camp Paper as partici-' pations in this grou bright future. 2aper and paperboard production should continue to reach new highs and slower expansion of capacity after a number of years of sub- stantial additions to plant should improve the supply-demand relationship. This has al- ready been reflected in scattered price increases, and as sales continue to grow it would appear logical to expect improvement in operating margins rather than the pres- sure on profits which has characterized the industry of late. Bendix appears to represent a diversified investment in a number of attractive fields including the automotive, aviation and aerospace areas. Earnings for the year to end September 30, 1962 should show substantial improvement over the depressed 4.45 for 1960-196l. The well-covered 2.40 dividend offers a 3.40/0 yield. -Burroughs Corp. appears-to be-one of the more attractive participations in the growing office equipment field. The nadir of the company's fortunes was reached in 1958 when heavy research and development expenditures reduced earnings to 97, and the stock declined from a 1957 high of 52 3/8 to a low of 27 5/8. Since that time profits have shown steady improvement and there is considerable evidence that the company has gained a strong foothold in the electronic data processing market which could well turn out to be highly profitable. Earnings improved to 1. 58 in 1961 and the improve- ment for 1962 could well be the most substantial so far. Estimated fourth quarter 1961 results of 75 were the highest for any quarter in the past five years. Dow-Jones Ind. 71l. 00 Dow-Jones Rails 146. 25 ANTHONY W. TABELL WALSTON & CO. INC. This market Ictt!r IS not, and under no Circumstances IS to be construed as, an offer to o;ell or a SoliCitatIon to buy any secUrities referred to herem The mformatIon conmlned herC1n IS not gunranteed as to accuracy or completeness and the furlllshml!' thereof is not, and under no circumstances IS to be construed as, a representation by Wal'lton & Co, Inc AU I;lxpreSBlons of OPlnlOn are subject to change without notice Walston & Co., Inc, and Officers, Directors, Stockholders and thereof, purchase, sell and may have an mterest m the secUrIties mentlOned herem. ThiS market letter IS mtended and presented merely as a general, mformal commentary on day to da)' market news and not as a complete analYSIS AddltfonaJ mformatlOn With respeet to o.ny seeurltzes referred to herem Will be .. . .. . \\,N 301 ..- …………………………..

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Tabell’s Market Letter – March 05, 1962

Tabell’s Market Letter – March 05, 1962

Tabell's Market Letter - March 05, 1962 page 1
Tabell's Market Letter - March 05, 1962 page 2
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March 5, 1962 RECOMMENDED LIST OF STOCKS SELLING ABOVE 20.00 A SHARE EDMUND W. TABELL WALSTON & CO. INC. American Smelt. & Ref. American Viscose Anderson Clayton Atchison, Top. & S. F. Audio Devices Beaunit Mills Bendix Corp. Burroughs Corp. Canadian Pacific Caterpillar Tractor Chicago & Northwestern Chicago Pneumatic Tool Cluett Peabody Colgate Palmolive Columbia Pictures Consolo Mining & Smelt. Consolidated Natural Gas Consolidation Coal Continental Insurance Crown Zellerbach Diamond Na tional Dome Mines Dominion Tar & Chem. Electric Storage Battery EI Paso Natural Gas Ex-Cell-O General Mills Goodrich, B. F. Great Northern Paper Great Western Sugar Gulf Oil Holly Sugar Insurance Co. of N. A. International Min. Chem. International Tel & Tel Johns Manville Kern County Land Kerr McGee Louisiana Land Explor. Close 3/2/61 60 3/8 57 1/4 47 1/4 27 l/a 20 25 3/4 70 3/4 45 1/4 24 3/4 40 1/2 20 1/2 29 7/ a 94 51 1/4 27 21 3/8 61 1/4 44 69 1/2 56 50 25 1/2 19 1/8 53 247/a 46 29 5/ a 64 3/4 58 1/4 35 7/8 43 3/4 35 5/8 99 53 3/4 55 1/8 55 7/a 90 43 5/8 72 1/2 Original Recom. Price 55.1/8. 52 3/a 36 3/4 25 7/a 26 3/a 25 l/a 70 3/4 45 1/4 24 5/8 30 1/2 19 1/2 28 3/S 56 3/4 44 20 3/a (a) 20 3/a 51 l/S 43 7/a 63 7/S 56 35 1/2 25 1/8 18 3/8 54 2S 35 3/4 32 3/8 64 7/8 57 29 39 30 1/2 78 32 48 60 53 50 50 1/2 S&P Rating B B B ABB A B B A C B B AB B A A- AB B AB B A A A B B A B B B A A A- A Comment Hold Buy-Hold Buy-Hold Buy-Hold Hold for 32 Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold for 45-50 Buy-Hold Buy-Hold Hold Hold for 65-70 Hold Buy-Hold Hold for 70-75 Buy-Hold Hold for 80-85 Buy-Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold for 50-55 Buy-Hold Buy-Hold Buy-Hold Hold for 45 Buy-Hold Hold Hold for 120 Buy-Hold Buy-Hold Buy-Hold Hold for 95-100 Buy-Hold Hold for 95-105 Close 3/2/61 -2- Original Recom. Price S&P Rating Comment McDermott, Jo Ray 32 1/2 McIntyre Porcupine 47 7/8 Mesabi Trust 13 1/2 Microwave Associates 27 7/8 Murphy Corp. 28 1/8 Newmont Mining 84 3/8 North Amer. Aviation 69 1/2 Northern Pacific R. R. 41 3/4 Panhandle Eastern P. L. 54 1/2 Penney, J. C. 47 5/8 Phillips Petroleum 5,6 7/8 Pittsburgh Plate Glass 64 1/2 Pullman, Inc. 37 3/4 Raytheon 36 7/8 Reeves.Bros. 19 7/8 Reynolds Metals 36 7/8 Royal Dutch 39 3/8 Schlumberger, Lotd. (d) 89 1/2 Seaboard Airline, R. R. 31 Seaboard Finance 21 3/4 Sperry Rand 22 Stevens, J. P. 35 Swift & Co. 48 7/8 Union Bag-Camp Paper 43 1/8 United Biscuit 45 United Shoe Machinery 68 1/2 \, U. S. Plywood 49 7/8 U. S. Vitamin 40 1/8 Varian Associates 42 Woolworth, F. W. 83 7/8 30 (b) 27 3/4 73/4(c) 33 1/8 28 62 1/2 41 1/2 42 1/8 47 7/8 41 1/2 53 7/8 69 3/4 40 1/8 40 3/4 24 5/8 59 44 (b) 90-86 32 3/8 22 1/4 (b) 27 5/8 32 3/8 44 1/2 43 1/8 37 3/4 59 48 3/4 37 39 3/4 (c) 69 B A- B AA A A B B BB A B B B B B B B B B A A- Buy-Hold Hold for 60 Hold for 18 Hold Buy-Hold Hold Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold Buy-Hold Buy-Hold Hold for 48-50 Hold for 55-60 Buy-Hold (a) – If rights to buy Screen Gems at 9 were used, each 100 shares owns 20 shares Screen Gems now selling at 21 1/8. (b) – Adjusted for stock diviJends. (c) – Adjusted for sale of rights and spi it. (d) – Exchanged for Daystrom.

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Tabell’s Market Letter – March 09, 1962

Tabell’s Market Letter – March 09, 1962

Tabell's Market Letter - March 09, 1962
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Walston &Co. Members New YQok Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CH.JCAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER March 9, 1962 A sharp recovery on Thursday and Friday brought the Dow-Jones Industrial Averag to an intra-week high of 718.28. This action reinforces the probability expressed in last week's letter that a short-term base, which will attempt to penetrate the heavy overhead supply between 720 and 740, is being formed. It must be pointed out, however, that actio will, no doubt, continue to be widely diverse and it is necessary to concentrate on invidi- dual stocks rather than to worry about the averages. To this end, five stocks were added to our recommended list last week and they will be reviewed from time to time over the next few months. A review of one such stock follows. Current Price Current Dividend 46 1. 00 In 1956, the so-called office revolution which was to place large company bookkeeping i Current Yield Long Term Debt 4 1/2 Conv. Deb. , 1981 Commun Stock Sales, 1961 Earn. per Sh. 1961 Mkt. Range 1962-61 2.2 51,238,884 29,875,800 6, 647, 480 shs. 401,200,000 1. 58 483/8 – 27 1/2 the hands of infinitely complex high-speed elect 0 ic systems, was just beginning. In that year, Burroughs Corporation had sales of some 270 million and earned a tidy 5. 2 after taxes, show ing a net of 14. 2 million or 2.35 per common share. By 1958, although sales had increased slightly, net income had dropped to 6.4 million or 97 a share, and the stock dropped from a 19 high of 52 3/8 to a 1958 low of 27 5/8. For Bur- roughs, it has been a long road bac k, and there is considerable evidence that the journey is not yet As the figures above show, Burroughs' entry into t co ezOfield has not been a c;omplished without considerable stress. The cometin e nonpareil,IBM and from other sources, has been intense. Nevertli , r s has aggressively pu sued the goal of total competence — the a m ito ly mess, not only with the giant computers required-to conduct 1 – pera s, but also the smaller scale mechanical devices required to er' ut and to offer all of these compo- nents as a single system. portion of the way towa d thi 0 UlWshows that the company has come a good ;''''' , Sales, of cour e, omenal growth. From 1958 to 1961 they have in- creased from 2 . illion, or an annual rate of growth of 12. As might be expected with re a h a evelopment expenses remaining heavy, the difficulty has been with profits. Thus ile sales are almost 50 above their 1956 levels, profits are barely two-thirds of. 6 figures. Nevertheless, progress has been real. Post-tax profit margins dipped to a low of under 2 in 1959. Since then they have risen to 2.6 and quar- terly figures show that further improvement in operating margins can be expected. Thus while sales for the last quarter of 1961 were just 17 above the comparable 1960 quarter, net per- share increased from 46 to 75. This experience, incidentally, was the best quarterly showing in the past five years. It would thus appear that Burroughs' heavy re- search and development expenses over the past five years are beginning to payoff. Net per share has increased at an annual rate of 18 from 1958 through 1961 and an even sharper increase, perhaps to as much as 2.00 per share, over 1961's 1. 58, is a possibility. The possibilities of further growth are partially obscured, moreover, by Burroughs' practice.of reporting both domestic and foreign-earnings on a consolidated basis. For example, in 1961 dividend payments from foreign subsidiaries accounted for 7.4 million against total net of 10. 5 million. It is evident that overseas business has, to date, been considerably more profitable than the dOmestic operation. Improved profit margins on U S. business could thus have a truly dynamic effect on net income. From a technical point of view, the stock has just broken out of a huge base form- ed between 1956 and 1961. The upside objective of this base is 81-102, with strong support not too far under current levels at 40. Dow-Jones Ind. 714.44 Dow-Jones Rails 145.71 ANTHONY W. TABELL WALSTON & CO. INC. This market i(!tter is not, and under no circumstances is to be construed ns, nn offer to sell or sohcltation to buy 8!'Y securlties referred to herem The mformatlOn contained herem iB not guaranteed as to accuracy or complcteness and the furnlshmg thereof IS not, and under no Cllcumstunces Is to be construed as, 11. representa- tion by Walston & Co Inc All expreSSlons of opInion are subJect to change notIce Walston & Co., Inc, and Officers, Directors, Stockholders and Employaes thQreof sell and may have an Interest In the secuflties mentlOned herem Thl; market letter IS intended and presented merely as 11. general, Informal on day to d&.y market news anq. not as a complete analYSIS AdditIOnal mformation With resPect to any sOCurltlcB referred to herein Will be . , –.

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Tabell’s Market Letter – March 16, 1962

Tabell’s Market Letter – March 16, 1962

Tabell's Market Letter - March 16, 1962
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Walston &- Co, Inc Members N Y O1-k Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPH'A CKlCAGO OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER l\!.arch 16,1962 Current rice 28 Current Dividend 1. 00 A fairly persuasive case for the purchasE of Beaunit Mills could be made on the basis of Current Yield 3. 6 figures alone. The stock is selling at less than Long Term Debt 17, 060, 000 eleven times estimated fiscal 1961-62 earnings 5 um. pfd. Stock 23,250 shs. of 2.60 per common share, at a time when the Common Stock 1,965,236 shs. textile industry shows every evidence of conti- Sales, 1961-2 (E) 124, 000, 000 nuing its cyclical upturn. The company has a -Earned er Share . .. .. -cash flow-of'close to 6.00 per-share and;-of . 1961-62 (E) 2.60 this, some 2.50 per share will be completely JVIkt. Ii,ange 1962-59 30 15 1/8 . unencumbered by dividends and capital expenditures and available for new projects, increase Note Flscal Year Ends 31st in working capital.or, quite possibly, an in- . crease in payout. However, it is highly probabl that the lmprovement in Beaunit Mills over the next few years will be much more funda- mental than a mere cyclical increase in earnings. Indeed, it can convincingly be argued t the company has been transformed from a highly cyclical one into an enterprise with lmportant growth characteristics. (1) A fundamental change for the better has probably taken place in the textile and rayon industries. The rayon supply situation should undoubtedly show some improvement with the withdrawal of several suppliers from the market, and longer-term benefit will undoubtedly accrue from the Administration programs to assist the industry. Thus, performance for this upswing could be considerably P5evious expansi9ns. (2) The character of Beaunit Mills has chaMd q i n the past few years to an extent not entirely reflected in . e c , which accounted for more than half total volume as recently as four sales. Fabric and apparel goods now n omprises only 200/0 of dit6t olume, and Beaunit is es- pecially strong fnthls area. '0 ct -. as picl!eG1Ip-qufte sharply ana;—-f- here again, many Beaunit this point is Beaunit's rather n ompetitive position. Worth noting at itW!(S!s both a producer and a fabricator of syn- thetic yarns. t . 0 aIres Beaunit especially sensitive to industry needs. (3) erhap b on to believe that a change has taken place in the Beau- nit picture, however, lie he bright potential for new synthetic fibers. Facilities for production of Vycro yester are now operating around half potential capacity, but re- cent moves to broaden the market by means of price reductions are having an encou- raging effect. Greatest possibilities, however, lie in olypropylene, called by industry sources the next large-scale commercial fiber. Even at current prices, which reflect only small-scale production, the fiber has significant cost advantages over other syn- thetics, and the cost is likely to come down still further as production of resin is ex- panded. In terms of physical strength, resiliency and lightness, it has qualities which make it fully competitive with and, in some cases, distinctly superior to, other chemi- cal fibers. Beaunit, furthermore, has recently scored what appears to be a major breakthrough in the field, announcing the commercial availability of dyed yarn and fabric. Beaunit's process permitting the fiber to take dye (it formerly had to be colored in the raw state) removes what isprobably the last important barrier to large-scale polypropylene use. .2mergence of Polypropylene as a–commercial product could well be the most important thing to happen in the textile industry, at least since the intro- duction of the acrylics and polyesters and, quite possibly, since the emergence of nylon. For the above reasons Beaunit appears intriguing as a purchase in capital gains accounts. As mentioned above, the current dividend of 1. 00 could well be raised in the not-too-distant future. From a technical point of view, the stock has a long-term upside potential of 44-64 and it is quite possible that improvements in the company could bring forth earnings to justify a price in this area. Al'iTHONY W. TABELL EQUT .;tQR''' Ind 7 22 77 WALSTON & CO, INC. ciQdbtstances IS to be construed as, an offer to sell or a sohcltation to buy any secunti(!S referred to hereLn The mfonnatlOn In 'lNn't'tibtC!O' or completeness and the furnlahlllg thereof IS not, and under no Is to be construed' as a representa. tlon by Walston & Co Inc. All expressions of opimon are subJect to change Without notice Walston & Co Inc and OffLcers Directors SU;ckholders and befi thereof. purchase, orbS dcommentnrY on day Bell and may have an to day market nev.'8 mterest In not as a the securities mentioned herem. This market letter IS complete analysis AddltJonal mformatlon dth rE!Bpect to uny and p'rcsented m'erelY Beeuntles referred to a.e general will urnls e upon request X 301

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Tabell’s Market Letter – March 23, 1962

Tabell’s Market Letter – March 23, 1962

Tabell's Market Letter - March 23, 1962
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-..' W—-a–l-s-tIonnc–&–C–o. Members New Yo,. Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CH,lCAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER March 23, 1962 ,..- The recent action of the stock market has been disappointing and confusing to a great many investors. In mid- February, the Dow-Jones Industrial Average reached the bottom part of the 720-740 supply area and failed its first attempt at penetration, reacting sharply to a low of 702.91 at the end of February. From this point, the averages again moved ahead and established a new high for the move, 727. 14 last Friday,well above the February peak. ,Then, ina-week of-desultorytradingthe average'a-gain'backed off and reached a low of 713.02 on Friday. Theorists who had been expecting major buying interest to develop and spark a general upsurge were again disappoint;'Jd. In order to get a clear view of the near-term market probabilities it is necessary to go back almost a year, for it was in May, 1961 when the technical conditions that characterized the present stock market first emerged. At that time, the Dow had reached a high of 714. 69, within a few points of today's close. After a short cor- rection the Average advanced again and made a new high in August, but this new high was accompanied by (1) a failure to achieve a new high in breadth, and (2) a very sharp deterioration of upside volume. It was that action that led this letter to abandon a constructive attitude and assume a more conservative stance. , As regular followers of this letter know, action since that time has neither deteriorated further nor has it improved much. The new high in the averages in Novem- ber was accompanied by a breadth peak above the the decline in upside momentum halted. Subsequent to this, on a longer-term breadth has acted about the same as the market and there hasEt!ena1y s'lcantincrease in selling pressure. Thus, in summary, the markif' r almo year has been one which,there .ha-s-een no-gr-eat .. has been characterlzed by lack of a broad advance. w W yo would be needed to generate Contrary to any t' is no technical evidence that such an increase in buyin e 'orth noting is the fact that our shorter-term breadth index fa nigh a st week despite the fact that the averages a y pe ya considerable margin. This, at the moment, has no longer-term sigm i e, but it also indicates the inadvisability of basing invest- ment policy on an i ment broad advance. Such an advance, until such time as tech- nical conditions change, must be regarded as highly improbable. Until the technical picture changes, then, it appears we are in for more of the same. In other words, the mar ket will probably continue to exhibit the same characteristics shown since last May. These characteristics are, among others (1) A relatively narrow trading range in the averages. For example, since May, the Dow Industrials held between a high of 741. 30 and a low'of 673.49, a range of barely 100/0. (2) Shifting leadership. The glamour issues topped out in April-May 1961 and was assumed by the defensive-growth iSsues sucn. as foods and utilities. Now these appear to have lost upside momentum and a new group of cyclical stocks has taken ower the market leadership. (3) Wide swings in individual stocks. Another way of characterizing market action over the past year is to note that Texas Instruments, which this week reached a low of 86 lis, sold as high as 206 3/4 last May. Cluett Peabody, on the other hand, could have been bought in May for 61 1/2 and reached a high of 107 a few days ago. It is this wide diversity for which the investor should continue to be prepared. Dow-Jones 716.46 Dow-Jones Rails 144.40 ANTHCNY W. TABELL WALSTOI\T & CD. INC. Thl'! market letter IS not, and under no Circumstances IS to be construed as, an offer to sell or a soitcltation to buy any secuntles referred to herem The informatIOn contained herein IS not guaranteed as to accurftcy Or completeness and the theleof is not, and under no circumstances is to be construed as, a representa- tIon by Walston & Co, Inc All expreSSIOns of oplllion are subJect to change Without notIce Walston & Co., Inc, and Officers, Directors. Stockholders and thereof, purcha;e, sell and may have an lllterest in the- securities mentlOned herem. ThIS market letter IS mtended and presented merely as a general, mformal commentary on day to day market news and not as a complete anaiysII' AdditIonal mformatIon WIth respect to any !SecurIhes referred to herelTI WIll be furnIshed upon r e q- u e . s t ' – – \\ K 301 – …. – – –

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Tabell’s Market Letter – March 30, 1962

Tabell’s Market Letter – March 30, 1962

Tabell's Market Letter - March 30, 1962
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Walston &Co. Inc. Member8 New Y01'k Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST AND OVERSEAS lABELL'S MARKEl LETTER FILE COpy is to be construed us, un offer to sell or El sohcitatlOn tJ buy flny secuntieo; referred to hereIn. The mformation contained herem lS not guaranteed al to necuraey or completeness and the thereof IS not, and under no CIrcumstances is to be construcd us, D representa tion by Walston & Co Inc. All expressions of opInion are subJcct to chll.nge without notice Walston & Co, Inc. and Officers, DIrectors, Stockholders and Employees thereof, purchase, sell and may have an Interest In the secUTIties mentIOned herein 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 rcspe('t to any seCUrItles referred to herem be furnished upon r e q u e s t . ' WX 301

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