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.

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 . , –.

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

-..' 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 – …. – – –

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

'FILE CCPV 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 April 6, 1962 J. RAY McDERMOTT & CO. INC. Current Price Current Dividend Current Yield 2S . SO 2.9 J. Ray McDermott is a unique operation. The bulk of the revenues of this Long-Term Debt Common Stock 26,468,907 3, S8S, 3S0 shs. New Orleans-based firm come from marine oil field construction, in whic it is the dominant factor in the Gulf Gross 'per. Revenues 1961-62 (E) SO, 000, 0.00 Coast area. The company's specialty Gross 1960-61 63,370,000 is the engineering and construction of Per Sh. 1961-62 (E) fer Sh. 1960-61 2.65 1. 00 Mkt. Range 1962-61 33 lIs – IS 7/s fixed-type offshore drilling platforms and the fabrication of the structures required for such platforms. In this rather specialized field, its reputa- Note Fiscal year ends March 31st. tion and accumulated know-how seem to assure it a unique competitive position. As most investors are aware, offshore drilling and exploration is perhaps the fastest growing segment of the oil industry. McDermott's recent history has reflected this growth. Revenues for the nine months ended December 31,1961, increased 360/0 to 59 million, and net income per share increased sharply to 2.04 from 25t; in fiscal 1960-61. For the full 1361-62 year, earnings per share have been estimated at 2. 65 vs. 1. 00 a ago. The dividend on the recently split cipated annual rate of SOt;. increased to an anti0 With the current market appraising the n e ev lmes year's results, the stock certainly appears to be a bargai 1 is e' iI that the company's good fortune is permanent rather than Federal-go;ernment recently held leased in the 3ulf of Mexico was al s a rs to be the case. The e 'hor' 'ein its' history and the 'acreage ' e im as great as in any previous sale. The obvious result of drilling and t er 's in equipment needed (or offshore h 1he bulk of this equipment will be supplied by IVlcDermott, the a' or ' e field. – Nor is Mc t' gr potential confined to 3ulf Coast operations. It is also active on the Pacifi Coas , through a subsidiary, in Venezuela. Extensive construct is carried out in Europe and, most important of all, in the Per- sian 3ulf. Here, ermott is currently working on a large contract for the Japanese- owned Arabian ;)il Company and is in a strong position to bid for contracts on other recent discoveries in the Persian Gulf area. McDermott has, in recent years, become truly a worldwide operation. The company's ability in offshore construction has also brought about achieve- ments in non-oil areas. The U. S. Coast Guard is now embarked on an extensive program for replacing floating lightships with fixed platforms. McDermott has been actively identified with this type of work, and this identification puts the company in an excellent position to participate in future Navy and Coast Guard business. In addition to their construction business, the company also is a fairly impor- tant oil and gas producer with extensive reserves in the,Gulf Coast area and in Canada. The gas phase of this operation is especially interesting as the company owns extensive reserves 'in the Gulf from which sales are expected to develop in the next two years. The oil and gas operation produced a rather substantial loss in fiscal 1960-61, but it is under stood that this experience has improved sharply in 1961-62, partially accounting for the sharp rise in overall earnings. Thus, despite the fact that McDermott's net income is at the highest level in its history, it would seem that further expansion is extremely likely. This, coupled with the statistical cheapness of the stock, makes it attractive for inclusion in capital gains accounts. Recently added to our recommended list, the stock has an upside objective of 50-53, with support just under current levels. JiiIM undtQl91!lrMlstances is to be construed as, an bJ;MZJL referred to herem. The mformatton -;-1'Ql\J;Djned-hfflt)l;Ile 1M lip or completeness and the okc\tptetances IS to be construed as, a representa of OPinIon are subject t() change Officers, DIrectors, Stockholders Qnd EmpIOYC'CB theroof, purchase, sell and may have an mterest in the securities mentioned herein This market letter is intended and presented merely as a general, mformDI commentary on day to day market news and not as B complete analYSIS Additional information with respect to any securitIes referred to herCln Will be furnished upon r e q u e s t . -, – \\'N 301

.. ——–.——————— -. — — 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 Bermuda, W. 1., April 13,1962 For over a year, breauth-of-thc-market action has given a much more accurate picture of the stock market than have the various market averages themselves. The first four months of 1961 witnessed an extremely high volume of trading and featured sharp advances in speculative glamour and growth issues. During this period, our breadth in dex was moving sharply higher week by week. This is just another way of saying that a great many more stocks were advancing then declining. In May, the breadth index reache its high along with the volume and the overspeculation in issues of questionable quality. The Dow-Jones Industrials also reached a high of 714. 69A;in 'll.ttty, but by August had move into new high territory, attaining an intra-day high of 733.53 in SeJtember. The breadth index, however, failed to better its May high. This indicated a mo mentum and suggested lightening accounts on strength and adopting a more cautious atti- tude toward the market in general. In November, the Industrial Average again made a nev . all-time high at 741. 30 and again the breadth index failed to confirm the rise. At the present moment, the breadth index is near its September low. In simple language, there have, since May, been more stocks declining than advancing. Until this condition changes it is obviously impossible to have a broad market advance. This lack of upside momentull made this letter very skeptical about the probability of a broad Spring rally. The decline in the market since May has been brought about by a reduced buying interest rather than heavy liquidation. The 25-week total volume of trading on the New York Stock Bxchange has dropped sharply since May, but this drop has been paralleled by a downtrend in buying volume, with relatively little increase in selling volume. What the market needs is a revitalized buying interest. This could be brought about by a dyna- mic news development, a sharp increase in earning depth again to stimulate investment buying. decline of sufficient 0 From September until this week, the Ids av ge had held in a relatively narrow trading range between 741. 30 out of this range on the downside, tra If this penetration is followed by new lows i II h rage this week broke 1m 79.08 on Friday. ex, the downside potential for the Dow could be placed at n v50-610 area. However, at this point the relatively makes at least a minor rally a pos- sibility. If hoI abo i , rally from this point gathers momentum, ' the potential base ar u s possible 775. It will be noted that at current levels the averag' middle point of the two possibilities mentioned I above. With the new w' e Industrial Average, quite a few commentators have noted that this penetratio confirmed by a similar one in the Rails, would indicate a Dow Theory bear market. Personally, we consider the Dow Theory an outmoded technical method that has resulted in a considerable number of false signals in the past twenty years. Not only one but many technical indicators must be used in and selective markets. In recent markets, breadth and relative strength mdlces O'raphs of individual issues have indicated that a great many stocks have been in a bear for a year or longer. During the same time period, a sizable number of indi- vidual issues have been in a bdl market. Under the Dow Theory, the penetration of vtha January intra-day low of 686. 89, a level tested three.times since as significant. The tab Ie below shows the action of the Industrial Average and two mdlvl- dual stocks on these three occasions. Sept; Low Dow-Jones Ind. 688. 87 -Jan. Low 686. 89 April Low (TO date) 679.08 Brunswick Corp. 57 38 32 Burroughs Corp. 30 39 45 It is obvious that these two issues pursued their own individual ways regardless act ad an coo lIIO c e l l , ; This market letter IS not. and under no clrcumstnnces IS to be con;trued as, an offer to ;('11 or herem The InformatIOn hcrel1l.h 'l'01jirJ.Hl.rnntClrl1I1 or completeness nnd the furmshmg thereof 10m;, 'h'ttd un-der no circumstancesJ,s tp.k.c construed (lS, a rcprescntn J…ilU'M.IITyJ,Ga.6hS&JaoY.lnr of opinion arc subJcct to change Without JWltisQAf'4l'Illd. he nilil plrectors. Stockholders and Bell P'H'c an mterest III the secUrities menhoned … li'rf'enaM ana presented merely as n general. furnished upon requeJ!t U! dnJ ltet9ws nn9 not as a complete anahsIs AdditIOnal informatIon With respect to any SecUrities referred to herem

..— &-Walston Co. Inc. Members New YOj'k Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFices COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER April 19, 1962 The market action of the past few days has been, to say the least, rather interes – ing. Last week's decline brought the Dow-Jones Industrials to an intra-day low of 679.08 on Friday. This proved to be the low for the move as, after a decline on Monday, the ma ket rallied sharply on the last three days of the abbreviated week, reaching a high of 696. 80 on Thursday. This action was hardly surprising as, based on most short-term indicators, the market at the end of last week was more oversold than it habbeen at any time since late 1960. At least, a technical rally was to be expected,and such a rally did manifest itself. The question, of course, now arises as to how far the strength can be expected to carry. At the moment, the entire 700-740 area constitutes overhead supply with the nearest supply concentrated between 710 and 720. The extent and vigor of the rally into this supply area will be extremely helpful in predicting future market action. For the mo ment, at least, the probabilities seem to favor an intermediate-term downtrend. Our breadth index,along with the averages, penetrated its September low last week, indicating a continuing loss of upside momentum. As stated in last week's letter, possible downside objectives in terms of the averages appear to lie roughly in the 650- 610 area. The possi- bility of such a decline should hardly be sufficient to warrant wholesale panic. Indeed, this becomes even more true upon examination of individual stock patterns, many of whic indicate the possibility of much better-than-average market action. Thus, as has been the case before, notably throughout 1960, it is quite possible that, while the averages remain under downside pressure, a good many stocks may move ahead. If this is the type of market that is envisioned, the concept of relative strength becomes extremely important. Relative strength measurKCAnsytutes, in the sim- plest terms, measurement of the action of a stock ind r gMtlp c mpared to the action of the market as a whole. We maintain for a I and extensive library of relative strength charts on which the ratip fsp) vario ocks and group indices to thegcncral weekly, oed. cha-r-ts are ex- tremely useful in determining what keto However, a number of ex ed to outperform the general mar B' relative strength indications can be obtained without c. week's letter we compared the prices of two stocks, Brunsw' k d u ug, 1ft the September, January and April lows. 2n each of these r a a ges were about the same. Brunswick, however, was lower on eacH e ccessive dates and Burroughs, by contrast, was higher. This was simplyano of stating that the relative strength of Brunswick was ex- tremely poor and tha urroughs extremely good. The invest r can very easily make the same test on all the issues in his port- folio. Ideally, most of the issues held should have been higher at their January lows than at their September bottoms and higher still at their lows of last week. Certainly, issues which have made successive new lows in September, January and April should be scrutinized for possible sale. Cne of the characteristics of relative strength down- trends is that they tend to continue for some time. It is interesting to compare various Standard & Poor's group indices on each of the three above mentioned dates. Cf 68 major indices, 20 have confirmed relative uptrends by posting higher prices at each of the three successive low points of the mar- ket. These groups are Auto Parts, Carpet and Rugs, Distillers, Metal and Glass Containers, aper Containers, Fertilizers, Finance, Machine Tools, Inter- national. Cils, Radio and TV Broadcasters, Radio and TV Manufacturers, Rayon, Mail -rder, Shipping, Cigar Manufacturers, Vegetable Oils, Electric Utilities, Gas Util- ities and Gas ipelines. Meanwhile, 8 groups have posted successively lower lows on each occasion. These were Aluminum, Cement, Roofing and Wallboard, Chemicals, oo,lectrical ..!;quipment, Electronics, Small Loans and Foods. The action of the remain- ing 40 groups was mixed. Admittedly, comparisons such as the above are elementary and certainly should not be the only factor taken into account in market analysis of a given stock. They do, however, provide a simple but illuminating indication of the true trend of stocks and industry groups. AI\TTHONY W. TABELL lJllR'hnd is to be construed 115..an offer to sVilALSJtQN to herein The informatIon r!!.stll.ta.ine4 betehds W..B'f4rJl,nteedtP.1l 'i9 or completeness and the furnishmg thereof IS not. and under no circumstances IS to be construed as, n rcpresenta All Jdtli),lsiSrW of opinion are subject to change notIce. Walston & Co, Inc.. and Officers, Directors, Stockholders and Employees thereof, purchase, sell and may have an Interest m the secUl'll.les mentIOned herem ThiS market letter IS intended and presented merely as a general, mformal commentary on day to day market news nnd not as a complete Ilnalysis Additional mformatlon WIth respect to any securIties referred to herein Will be furmshed upon r e q u e s t \\ N 301

4' , I, I Walston &- Co. lnc – – – – – Membe)'s New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CH.lCAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER April 27, 1962 The question in most investors' minds today appears to be – What is wrong with the stock market Unfortunately, the timing of the question is bad. It should have been asked over a year ago when speculation was rife and when a great many outright speculations were labelled growth and glamour issues entitled to sell at forty to eighty times earnings. There is nothing particularly wrong with the stock market today. It is simply returning to a more reasonable basis. The market action of the past several yeaI s has been largely an escape from reality. With most important companies showing a statlc earnings trend since 1957, any company, regardless of size or asset value, that showed even a semblance'of a-growth trend was'bid up toridfc-lilO\lS levels'on'thedneorytnal'lhe-'–' earnings trend (based on a mechanical formula) justified the high price-to-earnings multi pIes. Today's market is paying more attention to the fundamentals of value and is asking what earnings may be six months or a year from now rather than making vague project ions of earnings five years from now. If this trend of thought continues it is entirely possible that Benjamin Graham's two books, Security Analysis (co-authored with David L. Dodd) and The Intelligent Investor may reach the best seller list just as How I JvIade Two Million Dollars in the Stock Market by an acrobatic dancer, did two years ago This letter has adopted a cautious attitude toward the market for almost a year. Our breadth index reached its high last May and has been in a downtrend since that time. A new low was reached this week. Other technical indicators show no change in the down ward pattern. The Rail average has declined below the December low and has confirmed to at least one school of followers, a bear market under the Dow Theory. As we men- tioned recently, this signal comes awfully late in the game. The market, certainly in the case of a great many stocks, is probably much its high. Our technical work suggests a possible decline to the I v \ijJfue ow-Jones Indus- trial Average. Today's intra-day low was 668. As we have said many times action of individual stocks is much' more impo'rtant than the a ' ra – whetheror not the averages reach new low territory, e stocks that are in long-term up- trends and a decline in the a buying opportunity in these favorable situations. Relative ldual stocks is an important technical indica- tion during e The issues that hold up best in a downward trend are i e next advancing phase. The issues that act the worst usually need a rene'\4tl bf . stor confidence and, in technical language, the formation of a new base before dvance is resumed. This usually takes a very long period of time. One thing appears pretty certain about the technical picture at the moment. The leaders of the next upward phase of the market are going to be quite different than the leaders of the 1958 to 1961 phase. For a year this letter has stressed the thought that the action of the market offered an excellent opportunity to upgrade accounts. This advice is repeated. While a great many over-exploited issues have been declining 300/0 to 600/0, there have been many issues that have been advancing in a general downtrend. We believe this action will continue and suggest the following issues for purchase American Viscose (55 3/4) Kerr McGee (38) Anderson Clayton (42) &-S;-F;-(25) McDermott, J. Ray (24 5/8) '— Newmont 1/2) -. Beaunit Mills (26) Panhandle Eastern L. (55 1/4) Bendix Corp. (64) Raytheon (37 1/4) Burroughs Corp. (42 3/4) Royal Dutch (39) Consolidation Coal (37) Stevens, J. , (33) Crown Zellerbach (53) Swift & Co. (41 7/8) Electric Storage Battery (513/4) Union Bag-Cajp (38 1/2) Gulf Oil (41) U. S. Plywood (47 3/4) International Min. & Chern. (45 1/2) Woolworth (74) Dow-Jones Ind. 672.20 ES J .Ill 1 lSB 'fB EDMUND W. TABELL lATA T STcM 8T CO INC I I l

Walston &Co. lnc —– Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHlCAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER May 4, 1962 At. Tuesday's intra-day low of 655.14, the marJ.-.et became at least temporarily oversold. There were 959 declining stocks on Monday and only 182 advances.' This cli- mactic action had been preceded by 837 and 73B declines on the two previous days. Volu on the decline increased to over four million shares on Friday and Monday, and reached 5, 100,000 shares on Tuesday. The decline carried down very close to the top of the 650 610 area which, in our opinion, is the lowest possible downside objective indicated by te h nical work. The breadth index, which has been in a downtrend for a year, obviously reached new low territory. However,- this index, whiCli-haS15een-actingworse- than the market s'ince May, is now acting like the market. This is a necessary prelude to better- than-market action. Of course, no long-term trend change for the better has yet occurr This will take further time. Since Tuesday's low, the Industrial Average has rebounded back to an intra-day high of 679.20. r,Tormal technical action calls for a one-third to on – half retracement of the 72-point decline from the March intra-day high of 727. 14. This would call for an advance to 679 to 691, which has been about reached. Drobably at least a testing of the low is needed before a turn in the long-term trend is indicated. This letter has been cautious since last Summer. We envisioned an extremely selective market with a minimum upside objective of 725 and a possible 750-775. A high of 741. 30 was reached in November. Cn the downside we could see a possible 650. Of more importance, we felt that individual issues could show extremely diverse action with some issues acting much better than the market and others much worse than the ma – keto Our recommendations were concentrated on t better-than- market action and we advised avoiding the glamour and 0 I 1 soes selling at extrem high earnings multiples. Thoughts were s 11 n n ength. The decline in the market has changed our Qifing. -e uld now be inclined to be a buyer on weakness. The rally 's y nlar the potential top from 650 0.Q the Dow–Jo.!1esndllstrlal average to 65 .1 It 1S rely.possible-that the average will work somewhat lower, but in lIcks we have probably seen the wors of the decline. We cannot bear market at the moment. The mar- ket became technically vulne b e ridiculous overvaluation that occurred in a great many iss s r 1 1 has slowly been correcting itself for the past year. The cor . climactic phase. Usually, the market has to find a reason for a neede e nic orrection. The U. S. Steel-Kennedy fiasco was as good a reason as any. If it a been that, it would have been something else. Only a some- what unusual news nt was needed to tip the balance. As far as individual stocks are concerned, the market breaks down roughly into three patterns. In the first group are issues that stiU indicate fairly substantial declines. This group is growing smaller. In the second classification are issues that have declined substantially and have reached or are close to downside objcctives. These issues may need a long time to base out and it is probably wiser to wait until their technical action improves. These issues, however, should be attractive to patient, long-term investors provided that the fundamentals are attractive. In the third category are the issues that I have acted better than the market. In most cases, these issues'have already built up I substantial base patterns over a period of time and are in a position to move ahead when, the market climate improves. A list of twenty-two stocks that, in our opinion, fall into this category, was included in last week's letter. They should-be bought during periods of market weakness. In addition, we mention Cluett Peabody (43 1/4), Ex-CeU-O (44) Murphy Corp. (23), 1\orthern '''acific (37 l/B) and United B1scuit (44 5/8). Allor-these issues are on the recommended list. Would also add Container Corp. (26 7/B), Libbey- Cwens-Ford (541/2) and National Acme (553/4) on market weakness. For long-term speculation we suggest Chrysler Corp. (51 l/B) and Eastern Airlines (23 5/ B. Dow-Jones Ind. 671. 20 Dow-Jones Rails 140. 68 EDMUND W. TABELL WALSTOi\T & CO. INC. ThiS market letter IS not, and under no circumstances IS to be construed as, an offer to sell or n soitCltation to bu)' nny sccuntJes r.cfcrred to herem The mformatlOn contained herem IS not guan' ntced to accuracy or completeness and tIle furmshlllg thereof IS not, and under no ell cumstances IS to be c(lTI!.trued as, n tlOn by WnistOI1 & Co Inc All (',,preSSlOns of opmlOn arc ,ublect to Without notice \Valo;ton & Co. Inc, and OffIcers. Dtrctors, Stockholders and Fmployees thereof Bell nnd may have an mterest In the securltlC mentioned herem ThiS market letter IS intended and prescti merely as n general, on da to fillY market news and not as a complete analYSIS AddltlOllnl Information Jth rC5)lCct to anY' securlhes r(,lctred to herein Will be furnished Hilon rCfluest '\'\ 11 301 ————)