Walston &- Co. – inc – – – – – Memher.q Ne/' York Siock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LEnER February 28, 1964 At least insofar Industrial average is concerned, the market during the past two weeks has been a rather unexciting affair. For nine trading days the Industrials posted intra-day highs above 800, but until Friday were not able to close above this level. Some technicians have attributed this to a sort of psychological resistance which surrounds the 800 figure. This reasoning appears to be a bit tenuous. A study of other periods when the Industrial average passed through an even hundred figure indicates that, as often as not, the average moved through the barrier rather easily and with hardly a pause. A more realistic explanation of the sidewise action of the .past two weeks is probably to be found in the fact that, as this letter has pointed out for some time, the upside objective of the Dow-Jones Industrial average was 795. This figure has, of course, been reached. Before any major trend develops one way or the other, it is obvious that a new pattern must form. The apparent indecision of the past fortnight is probably part of the formation of just such a pattern. Two possible formations at this point suggest themselves. The first is that the aver- ages might form a top similar to the potential tops that have already formed in a small num- ber of former market leaders. This, of course, could signalize the beginning of the correc- tive process which this letter has long believed is necessary in order to broaden the base for a major advance to begin later in 1964 or 1965. If, indeed, a pattern of this nature does develop, it is far too early to say Just how far such a decline might carry. It will first be necessary to observe the pattern as it develops. The alternative possibility, of course, is the 0mew base around current alevels signalizing a further advance prior to the start of th mentioned above. This would not alter the broad basic pattern, I c an ie timing somewhat. Were such an advance to occur, indications are that ade s' ould be in a new group of issues rather than those which have been d' stment favorites heretofore. The action of the Rail average should not n contrast to that of the Indus- trials. Many investors are,not aware the market over the past year 430/0 from a low of 525 to a high ,e t21a 650/0 move. e e L lChthe-carriershave.outperformed Industrial average has advanced from in the Rails from 115 to 190 represents has also been above average. Of late, the i . c . that the speculative interest which was formerly attached to Xerox, S r r, et al., has been transferred to some of the speculative rails. Pennsylvania Ra r or example, is up over four points in the past two weeks while the market has b moving sideways. The stock has almost doubled from its Novem- er 1963 low. From a technical point of view, the Rail average presents an entirely different pic- ture from the Industrials. Although the carriers are close to reaching the objective of their 1960-1962 base which is 196, if we consider the entire area between 1956 and 1962 as an ac- cumulation area, the longer term upside objective is 255. After the sharp rise from the 1962 ows a correction could, of course, take place at any time, but relative strength continues excellent. A new edition of our recommended list is in the hands of your Walston Account Exec- utive. A few changes have taken place since the last issue. Copperweld Steel and North merican Car, discussed on January 17th and February 20th, respectively, have been added o our Price Appreciation list. Corning Glass, originally rec'ommended in June, 1962, has reached the objective noted in the previous list and has been deleted from our Quality and Long Term Growth list. Reynolds Tobacco, discussed on January 10, 1964, has been substituted for it Litton Industries, which has been disappointing of late, has been removed from the Price Appreciation list. The stock is now fairly close to a support level and may be held by the long term investor, but recent poor technical action indicates that it may be slow and it is, therefore, being dropped. Dow-Jones Ind. 800. 14 Dow-Jones Rails 190.74 ANTHONY W. TABELL WALSTON & CO. INC. ThiS mnrket letter 15 not. and under no Clrcum!tances IS to be ('ontl lied us, nn offer to sell Ul n soilcltatlOn to Inl) nny ,cfen ed \0 herem The mfnrmnhon (',)nwmed herein 15 nut 1!t1f1rll.nteed flO; to lIcc\!rnc or comllictcnC'l3 nnd the furnlhlll.!' theeof ,-. nut. ami un,ICI nil ('lItUintnn('c to be eun!hucd as, n leprc,cntn- hon by \Valston & Co. Inc All epresslOns of OpinIOn nre liubJcet to C'hnnj.!'e \\Ithuut Ilohc-e Wabton lJ.. Co. In…. nn,l Dllectrs, Stockholders lind EmlJloyees thereof, Il\llchnsc, sell and may hll\c nn Interest In the '1et'UrltJcs mentlnned helCIII. mllrket leltl'!r I mtcndell and IJre–ented merely ns n )!enerul, mformal commentary on dny to day marb.et news and not n; n complete A,lllltmnnl Inru.mahon \\lth ICI'ci't to nny Icfelle,1 to hClcm will he furnished upon request \\' 301

(r; Walston &Co. – Inc 1I1ellllel'8 Xell' 'n', Sind.. Euilu1I(Je NEW YORK SAN FRANCISCO LOS ANGElES PHILADELPHIA CHICAGO OfFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER March 6, 1964 The breaking of the 800 level on the Dow-Jones Industrialssignalized a further extension of the uptrend which has been in effect since the December lows. Advances on Monday and Tuesday of this week continued the previous Friday's strength, and small declines on Wednesday and Thursday were largely cancelled out by renewed vigor at the end of the week. As regular readers of this letter are aware, a great deal of significance attaches to the rally from the December lows. This rally, so far, has had a number of unique characteristics. It has, first of all, been rema rkably steady. The Dow-Jones Industrials have now posted higher weekly closings for twelve successive,weeks. As fa.r as we are able to ascertain, this is the first time this has occurred since the average was first computed in 1897. In no prior period has the average advanced for more than eleven consecutive weeks without at least one weekly setback. Yet, despite the steadiness of the rise, it has been relatively moderate. The advance from the December 23rd low of 752.82, when the peak of tax-loss selling was reached, has so far been less than 8. This is a magnitude considerably less than that of many previous year-end rallies. The phenomenon of a steady and moderate rise produces a characteristic form- ation on a chart known as an uptrend channel. This channel is bordered by an uptrend line connecting the December 23rd low of 752.82, the January 21st low of 767.80, and the February 5th low of 777.99. An almost parallel line can the highs of December 19th, January 9th, January 27th and January 28 outer limits of this channel are 797 on the downside and about 814 id. Long channels of this nature are usually in 0 f two ways. The less frequent method is by a sharp rise out of side – normally accompanied by heavy trading volume. Such a rise rp etraced at a later date. More frequently, the 1 ace. on.the downside, not confirmed by any increase in of the rise indicates the probability that a break in either dir ction This would signalize an end of the present market phase /)\, Just wha ase might take is problematical. A large number of stocks, perhaps the jo it re approaching upside obJectives and/or areas of relatively heavy overhead supply. se stocks, certainly, are in no position to sustain any sort of a general rally from cu ent levels. On the other ha.nd, a gOOdly number of issues have still not reached objectives, or have potential bases which indicate considerably higher levels over the long term. The best that can be looked for is continued strength in these favorably situated issues, while the remainder back and fill around current levels completing base forma tions. The most pessimistic view, on the other hand, would call for the less attractive stocks to form tops and decline, while the favorably placed minority underwent a small correction. This sort of action could produce protracted weakness in the averages. A comparison of the present upswing with previous yearCend rallies is not as yet conclusive. We have noted in previous letters that, since 1937, the December low has never been broken after mid-March. Thus, the ability of the market to continue the rally into the third month of the year is a constructive sign. On the other hand, the magnitude of the year- end rally is also an important clue as to the year's market trend. An advance of 10 or more from the December lows before an identifiable correction takes place has normally been followed by an upward or neutral market. Yet, despite the persistence of the advance, as noted above, the percentage upswing is still less than 8. A 10 advance would carry the Dow to 825. In short, the present time appears to be one of those interesting periods where the market is approaching a critical juncture. Price action over the next few weeks should provide important clues as to action over the intermediate term ANTHONY W. TAB ELL Dow-Jones Ind. 806.03 Dow-Jones Rails 191. 98 WALSTON & CO. INC. TIll mnrket lettcl b not nnd unllel no Clrcumstnncc; IS t .. he nn fTcl \ …ell I II In un Ill''' 'CfCII cd 1 hel CIIl '. he 'nCm rnntlOl\ (JIluI1l1cd herein IS not J.1U11flntc(.!lII'I to IICCUllll til comJllet('nc.. ,Ind the !\nn,.,hllltr Itlt'ICIlr \-. 11' ,lnll 1IIl,I!') nIl (1IulI11lnllc,' to Le (n-.\I11ed n-., n rCPle,,('nl!l. 11(1/1 hy WlllstDrI & Co, hH', AJJ c'Cprc'.'wrlt f 11)'mIOn !He fu I'lJ,lIll!e nJllwllt J)Illul' W.1blJl & ell, JIl( .lm! OtTllel, Dlll'dlll', ,111/ thcrrof, Pll\lJHl-.e, …ell nn, O1ny h,\\e nn III the … mentlne11 heleUI 'Ihh 01,111,('1 Jettel ,-. mtellllcli nIH! ,ecIlI …' nH'I('ly ,I !-(enel,ll. lnflmnl ct)mmentRI), on (IlY to 1111)' market newl; nl\l\ nut n … a complete t\.\.hh.,llul,llfulm,ltwll With ll…. pcd to ,IllY 'llIltl(''' lefcllec\ to hl,,, hI' fill m-.heu Ii,POII request \\ lilt I

Walston &Co. Inc rn',Mfmhfl. Sf// Sinek E.1chnl1gc NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER March 13, 1964 Following is a summary of an address entitled The Stock Market in an Election Year, presented by the writer to the annual business conference of New York University Graduate School of Business Administration on March 14, 1964. 1964 is the fifth post-war presidential election year, and it is, therefore, interesting to examine the action of the stock market around the time of the four previous presidential elections. Politically, thetfour elections were evenly divided. The presidency went to a Democrat in 1948 and 1960, and the Republicans were victors in 1952 and 1956. It is interesting to note, however, that, except for a difference in timing, the price pattern in each of the four years was quite similar, regardless of'which party won the election. A high of intermediate term significance was reached at some time during each of the four presidential years. As noted above, the timing was different. In 1960 the high was reached on the first day of the year while in 1952 it was reached close to the year end. In 1948 and 1956 the highs took place in the spring. The subsequent declines in each case were of similar magnitude, ranging between 14 and 20 per cent in terms of the Dow, and the timing was similar in at least three of the four years. In these years the subsequent low was reached between nine and thirteen months after the high and, in all four cases, the next ma rket advance carried the average to new all-time high territory. Subsequent Per Cent No. Months Months until High Date Low Decline Later New High 1948 1952 1956 1960 195 May 295 Dec. 524 April 688 Jan. 160 254 416 564 150/0 '\'019 9 10 6 10 5 The above table summarizes ear action. The 1948 high was in May at 195,' and the high was reached ten months cember at 295. It then decline after that, the entire e first day of the y a correction to 564 w' as r QW a'low c of-1'60 in new average reached its high in De- 1 r chw)(a low of 254 nine months later. Six months jj n sed. In 1960, a high of 688 was reached on the n ter the Industrial average had undergone an 180/0 ced within five months. The only sli iation in timing was shown in 1956. Although the ultimate low was not reached until ober 1957, eighteen months after the April 1956 high, this high was equalled at 523 in June, 1957. Subsequent events proved very similar to those of elec- tion years, as the market completed a 200/0 correction in five months and within ten months had reached new high ground. It is quite possible that this price pattern will be repeated in 1964. We believe that the market is now iii the process of forming a pattern which will result in a much higher price level over the next several years. Although individual stocks could continue their recent advance, it seems probable that more time is needed to broadenJhe re- accumulation patterns in the great bulk of listed stocks. Moreover, the present advance from the 1962 lows is now over 20 months old and probably in need of some consolidation in the near future. To recapitulate, the typical election year pattern calls for an intermediate term high to be reached some time during the election year. If the general market is in need of a correction in order to broaden the base, this will probably be the case in 1964 also. The declines following presiqential tyearnighs,have in former years been erased very quickly. This could also be the case in 1964 since a decline of any magnitude would probably com- plete the base for a major bull market to take place in the late 1960's. Dow-Jone sInd. 816.22 Dow-Jones Rails 192.60 EDMUND W. TABELL WALSTON & CO. INC. mnl ket Jettel l'i lIot, lind umle\' no I to he n. nn lrel tn III n IILltHtUIil t.. IIny IIlllle… I'cfell cd til hi!1 ('Ill The lnfm mlltlln , ..ntuine,l herein IS nt j!lIllrllnte('d Ilb to IIcClllncy uL ('Unll)lctenC' Ilnd the CUI nl'ihlll\! thel ('ur I nut, nn.\ un,lt! IU, \ II l'II1U'ilnn. e … I ttl he um..,lIuCO,I 1\ … , ICIII (.entn- tum hy \\',I!'1ton &. Co. In' All IOf piliI'm Ille to th,lIII!C 'IIllwllt ll11tll'C Wnllun &. Cu, Inc, nlltl Dueetnls. Slod.. hnltlc,,, find 1'rnp!llvee.. ther'Of, IllU('h ..c, ,cUnnll mny hnvc ,Tn mtCIC!lt m thc O1Cl1tllll1C,1 hClcu, 'Jill Illllli..cl l'ltcl h mtCIl,etllllld pICelllC'i1 mCLcly n !.enel!ll, Informul commentary on tiny to tiny mnrkct n('W', nlLd not 11'1 n ('0111111clc an.IlYh AtI,htllln.tI Infu millIOn 'I Lth I (.I'C' t t !c('1Ir11Ic lefel Led to helem \\111 be f1ll n1heu uPOn .\ .lUI

Walston &- Co. 1'0',- – – – – l n c – – – – – Member. Xell' Stock E'cilanle NEW YORK SAN FRANCISCO LOS ANGElES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER Fort Myers Beach, Florida March 20, 1964 Despite the fact that the various blue chip averages have reached newall-time high territory, a perusal of the graphs of over 1, 800 individual issues and groups continues to show an extremely diverse long term pattern. While some groups have followed the averages into new high territory, the majority are still holding in a broad price area bounded by the 1957-1961 highs and the 1960-1962 lows. It is our opinion that the eventual breakout of these long sidewise patterns will be on the upside. The immediate question is whether or not this will occur in the near future, or at al'laterdate. Since the 1962 lows, the important buyers have been institutional investors rather than the general public. For the advance to broaden out on a large scale that will encompass the entire market, much greater public participation ,than beJleeded. Whether the.puJlic.has..y.et.recov.er.ed.froxp.the…196.2 scare is problematical. This may require further -time and rriight be-precectectby a technicaf-' -.- correction that will enlarge the base patterns in many issues. This could result in a much higher price level in the late 1960 IS. With most groups at entirely different stages of their long term patterns, it might be interesting to review a number of the leading groups. AEROSPACE – Most issues in this group reached their highs in 1957 and are still sell- ing below those levels. No indication of an important move in either direction. AIRLINES – Reached their highs in 1957 and their lows in 1960. Most issues held above the 1960 lows in 1962. Have been one of the strongest groups, but have, in most cases, reach ed their upside objectives and need consolidation. ALUMINUMS – This group also reached its high in 1957 and is well below those levels at the moment. Appears to be building a strong base pattern that could result in much higher levels over the longer term. Buy on minor price declines. AUTOS – Peaked out in 1959, but held above the advance lnto new high territory, but probably needs consol ti Has had sharp pric BUILDING MATERIAL – Reached their highs – re below those levels. Appear to be building base patterns, but may take fur time. uld accumulate group on weakness. CHEMICALS – Reached their highs in lssues are still below those l-eve. ls.COLPoPnEgRtSe-rom.—oSutitllloobkel'ioswthe-nl5 . T – .. Q,Q . strong mtermeollite positIon.' DRUGS – Reached thei group. No over-all.patte n. ELECTRICAL E B -e in 1961. Diverse patterns within the .. ed highs in 1959 and leaders are still below those levels. n a roa rn and should be bought on price declines. ELECTRONI m 1961 and most issues are selling near 1962 lows. No immediate achon mdi te, base patterns are forming and selected issues could show wide appreciation at a la nate. FOOD – Reache ghs in 1961 and probably will continue in longer accumulation area. MACHINERY – Peaked out in 1959 and have formed strong base patterns with higher levels indicated. MACHINE TOOLS – Reached highs in 1957 and have formed very strong potential bases In a buying range. OFFICE EQUIPMENT – Reached highs with averages in 1961. Still below those levels. Appear to be in reaccumUIation area with interesting long term potentials. OILS – One of the strongest groups for the long term despite sharp rise. Buy on minor declines. PAPER – This group is still in a broad reaccumulation area with substantial higher upside potentials. RAILROADS – We believe this group is in a major trend reversal. It .has moved. above 1929 hlghs and still indicates.hlgher levels. be bought on all pnce- declme RUBBER – Still below 1959 hlghs and probably m a broad reaccumulatlOn area. SAVINGS & LOAN – Have had sharp decline from 1961 highs, but have formed substan- tial potential bases. An interesting speculation. STEELS – Could move higher over near term, but long term prospects vague. TOBACCO – A much better buy than sale, but patience may be required. UTILITIES – Have shown poor action recently, but would be a buy on declines. Dow-Jones Ind. 814.93 Dow-Jones Rails 193.47 EDMUND W. TABELL WALSTON & CO. INC. '1'1115 market letter is not. and undel no clrcums\..nnces l!o to be constilled ns. nn offci to .,(.11 ul n suliCLtntwll to 111) nn' (!'CUt I dell ed 1 hu ('In 1. he !nfm mntwn ('Illlwlrled herem IS not Auntnnl.'(!f\ns to ul;curncy ur ('unJllletclICob und the tum lIy Wniston & Co tnc All tlf nplTll1lTI fIlC .UhJClt to ch.IlII. thel 'uf nI, lind nll'\cI WIlhut l)ull.e Wahtn & cn.o.,LlJILilllIIll;,Itl.lldnl'C til ue um'-llued n-., II DIICLlI' StolhhuJdell 11))'\ hmllioyees thereof, pillchasc, sell and mny have an mtelesl)l) the IICClilltle- mentullwd hCI,in fhl mfllh.et Jettel I' Intended .md I'le..cnlcll mClely n-; n 1.('lIcI.II. lIlformal commentary on dny to day market ncws and not as n completc IJnniyh Alllllin.llmfUlmntwll ,qth IC''C('( to .Iny ,.,c('lIIlbc;, Tefl'lle,\ to hClem Will he fUlnl,hcu (won lcqucsl \\.\ luI

Walston &Co. –;'-Inc —– M(lIIlel'. Xell' 'ol'k Sinck EclwlIge NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER March 26, 1964 MESABI TRUST Current Price Current Dividend Current Yield 14 7/8 . 70 (E) 4. 70/0 There are many reasons for buying securities. Some investors are interested in growth, others in generous income. Many security buyers Long Term Debt Beneficial Interest None are concerned about protecting their capital from inflation, others worry about high income tax Certificates 13,120,010 units rates. A rather unique combination of growth prospects, relatively generous income, inflation Earn. per Ctf. 1964-5(E) -'- – -Ea-rn–per-etf- .70 protection, and partial tax exemJtio.!!,..JlPRea.rs to .. 0 -58- – – -l)i;-available in-the Certificates of Beneficial In—– – – Mkt. Range – 1963-61 153/8 – 93/8 terest in the Mesabi Trust. Mesabi Trust is a fairly simple operation to understand. The Trust owns the mineral rights to a huge body of taconite ore in Minnesota containing some 50 years' supply at present production rates. This ore body has been leased to Reserve Mining Company – – jointly owned by Republic Steel and Armco Steel. Under the terms of the lease, Mesabi Trust receives a basic royalty of about 1. 00 per ton of pellet- ized concentrated iron ore produced from this property, subject to various adjustments. Un- der the trust form of organization, expenses are nominal and virtually all the royalties re- ceived are paid out to Trust certificate holders. With this background in mind, it is fairly easy to demonstrate how Mesabi combines the four attributes mentioned above. Let us discuss each 0 GROWTH PROSPECTS – In 1956, the year of its or a i erve Mining shipped some 3 1/2 million tons of concentrate. Shipments inc sed to the then exist- ing plant capacity of 6 million tons, and an unde en to increase rated capa- city to 10.5 million tons. Some 7.7 million n the year ended January 31, 1964, and well over 9 million tons are e s' ed in the current fiscal year. Ex- perience—oLboth, been favorable and – iT ,e.RUlrlic Steel and Armco will find it to their in- terest to push expansion. Thus, which have increased sharply since 1961, could continue to s around 70 per Ce .0)-Y a growth. For fiscal 1964-65 they should amount to INCOME – B n t nticipated distribution of 70';, the current yield on Mesabi Trust Certificates is a 0 and payout will, of course, increase along with royalties. The tax shelter featur this income will be discussed below. INFLATION PROTECTION – Mesabi Trust's contract with Reserve has a unique fea- ture which provides for the adJustment of the 1. 00 base royalty annually, based on the B. L. S. Index of Wholesale Prices. Thus, any important increase in commodity prices will result in increased royalties to Mesabi Trust, and increased income to holders of the units. TAX PROTECTION – The tax protection afforded the holder of Mesabi Trust is two- fold. First of ali, due to depletion laws, a substantial portion of annual income distributions are used to reduce original cost rather than reported as income. This portion of the distribu- tion is exempt from tax as long as the units are held. It is estimated that 27'; of the antici- pated 1964-65 70'; distribution will be so treated. Secondly — and this is a provision of the new tax bill remaining porti()l1js taxable at capita rather.!han ta rates. Thus, the tax payable-on this portion is half the holders' normal tax rate and a maxi- mum of 25, depending on his tax bracket. Thus, the effective tax rate on Mesabi distribu- tions should be a maximum of around 15. To demonstrate the importance of this feature, assuming a cost of 15 per unit and a distribution of 70';, the effective post-tax yield is 4. 3 to an investor in the 25 bracket and 3.9 to an investor in the 50 bracket, or any higher bracket. This is equivalent to a pre-tax yield of 5. 7 in the 25 bracket, 7.8 in the 50 bracket, and 15.6 in the 75 bracket. Mesabi Trust,. which..has been on our recommended list for some time, has held for over two years in the'10-1S area; EV'etftual penetration of this area on the upside would indi- cate higher levels and the stock is again recommended for clients seeking income and capital gains, plus tax and inflation protection. Dow-Jones Ind. 815.91 Dow-Jones Rails 192.16 ANTHONY W. TABELL WALSTON & CO. INC. 1 hl- mnrlH't letlt'l not ,nul uni('l IHI 10 he con..,tl Ul'\ '\', all fTCI to II or n .,,,lutlll,OIl to h\ll' III) ,,('('Ill I er'11 ed to llCll'lll The Illf1Il1,ll\n (nnlaHH'd hf'tcrll I, nut Io!ll.ll.llllel'li .1; to ul ,11111 thl' thI('r lIt ,lUll 1111,11'1 un UIClllllbt.l!lt(' h 10 1.1' ,I ,I tlf)n h\ & Co. 1m All ()f O)ITlWn nil' l1lljl'('1 I \\lthlIt utlll' & C. 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.———————– — Walston &Co. —–Inc —- SrII' rOl'k Stock Erchange I L J;; NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER April 3, 1964 On December 20, 1963 this letter, as is its custom, discussed at some length the phenomenon of the year-end rally. We stated that an identifiable year-end rally had taken place in every year since 1897, usually beginning with the December low and continuing to some point after the new year. We followed up this comment on January 3rd with the specu- lation that the true beginning of the year-end rally was at the peak of tax-loss selling reach- ed on December 23rd at 752.82 on the Dow. Subsequent events.have.proved that this low was indeed the starting point for a rally of some magnitude. Some of the rather unique characteristics of this rally were discussed in our letter of March 6th. In that letter we pOinted out that the rise had been (l) relatively steady, and (2) relatively moderate. .- – – – — – We pointed out that a steady and moderate rise of this nature produced a character- istic formation on a chart known as an uptrend channel. The interested reader can very eas' inspect this channel for himself. Any daily chart of the past four months' action on the Do.v- Jones Industrial average the one in the next-to-last page of the Wall Street Journal is a good example) can be used for this purpose. The reader will note that it is possible to draw a straight line which is touched by market lows at no fewer than four points. An almost parallel line can be drawn connecting the various highs reached. This line will be exceeded during the week of March 13th to 20th on an arithmetic chart, such as the one in the Journal, but if a more accurate geometric chart is used, the uptrend channel remains inviolate. In connection with this channel, last week's market action is interesting. After mo- ving sideways for some eight trading days, the Dow Late Wednesday afternoon a sharp rally began which was f ow f8h09.r7s9daoyn Wednesday. by a 4. 79 point advance on heavy volume. This strength was exae i a ednesday's low, of course, was almost exactly at the bottom of the uptr ann' cussed above. The second characteristic of the han in 1tion to its steadiness, has been its moderation. The mean rise so far h b at nnual rate of 340/0. Some analysts have.-suggested g.. this is -the – '- case, the 340/0 annual rate much steeper rate of advance. Major bull markets tend to start with a rise from September 1953 to June of 1955 was maintained n some twenty-one months. In 1958-59, the Dow rose at an annual 2 i n months. The moderation of the present rally, now a little over three m 01 , s not compare with upswings of this nature. How long will t r continue within the confines of the present channel There is, of course, no real ans for this question. In our study on the year-end rally last Decembe we drew attention to two facts. We said, first of all, that in the seventeen years the rally has continued into March or later, the eventual trend was upward in fifteen instances. The rally has, of course, now continued into April. It is also interesting to note that the longest continuation of a year-end rally without an identifiable correction has been into June. We have also suggested that the magnitude of the rally is an important clue as to the year's trend. An advance of 100/0 or more, strongly suggests an upward market. The advance to date has been just about 100/0. It is interesting also to extrapolate the present trend and see where the market may be if the present channel continues. Projection of the geometric mean of the channel would call for a mean price of 841 at the end of April and 881 at the end of June. It is, of course, highly probable that the uptrend channel will be penetrated before this time, thus giving us a clue that a new phase has begun. In March we suggested that uptrend channels are broken in one of two ways. We said The less frequent method is by a sharp rise out of tre channel On the upside – normally accompanied by heavy trading volume. Such a rise is usually sharp- ly retraced at a later date. More frequently, the breaking of an uptrend channel takes place on the downside, not necessarily confirmed by any increase in volume. With the advance now 73 days old, the investor should be alert for either one of these occurrences. Dow-Jones Ind. 822.99 Dow-Jones Rails 195.46 , J , ( ANTHONY W. TABELL WALSTON & CO. INC. Thll; mnrket letter IS not, lind under no circumstnnces is to be eon..truerl 0&, on utrCl' to lIell or n liolicitatiun to bll)' nny sec\lrit!CII referl'ed \tI herein. The Information contninc(1 herem is not j.tuarnntecrllls to necllrney or eomplelene.s and the fllrOlt-hinj.! thereof flot. nnr! Untlel nco ('11 111 to be ('(lllhtl ned n lIOn by Walston & Co., Jne All cxprCSSlOns of opinion al'e to ehanl.!e \\ith(lllt nutlee Wnb.ton & Co. Ine.. ami DllcctOlS, Stoekholdet!l RIlII thereof, pUlChasc, Bell nnd mny havc an mterest In the men tInned Thill market letter ill Intendc,1 nnd pre..ented merely no; n I-enerlii. mformnl commentary on day to day market news and not as a complete llnnly;.il1 A,I,lItlflllltllfl(ut'nllltlOn \\ith Ie-peel to tiny M.'('nritJes I'c(ellel( to helem WIll he furnIshed UJ)on request. \\.\ 101

–…… Walston &Co. Inc – – – – – rol'''Memilel',. XCIl' Stock Euilanflf JIL IE NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER April 10, 1964 With moderate upswings and retracements alternating, last week's market move- ment was essentially sideways. Throughout the week the Dow-Jones Industrial average ranged within the confines of the uptrend channel discussed at some length in last week's letter. At the moment the outer limits of this channel are approximately 815 on the downside and 837 on the upside. A slow uptrend, similar to that in the Dow-Jones Industrial average, has also been in effect since December 23, 1963 on our daily (short-term) breadth index. A penetration of this uptrend would probably be as significant as a penetration of the uptrend in the average and might, indeed, foreshadow such-a'penetration 1'0 date, however,-both uptrend lines remain inviolate. Meanwhile, the investor should be on the alert for a sharp change in either direction, A sharply higher market accompanied by heavy volume could be the start of a possible blow-off top. A penetration of the Dow uptrend channel on the downside, i. e., a drop below the S15-81B level in the next week, would also be a negative sign. It will be more difficult for the non -chartist to detect a penetration on the breadth index, but a period in which de- clines consistently outnumber advances would probably produce such a condition. Meanwhile, a number of stocks, along with the Dow, continue to move up im- pressively. On January 10, 1964, before the issuance of the report of the United States Public Health Service Advisory Commission, this letter five major cigarette companies, pointing out that they possessed favorable 1 a eN\.s, that health scares were not new in the cigarette industry, and that e sharp recoveries after initial declines in per-capita cigarette I no ecoming evident that history is repeating itself. March cigarette tax i st States were down only mOderately or, in some cases, ahead of a ed to sharply unfavorable com- parisons in January and February. March sales topped the'1963 levels, 'W.W m es told their annual meetings that 9tR,\i oay;''''R7J-Reynolds'Tooacco, wnich is on our recommended list, the company's first quarter earnings would be equal to 67 f' t quarter of 1963. All of thi t ced in the rna rket. Reynolds on Friday reached a high of 47 3/4 vs. a 00 1/8, and other tobacco stocks have enjoyed similar price improvement. R no ,however, is still selling for less than fifteen times its 1963 earnings and bids r to show another earnings increase in 1964 as it has in every year for the past deca e. It is probably still an attractive buy on minor dips. Savings and Loan shares have also been firm of late, and in the case of these issue! like the tobaccos, the market seems to have begun to realize that near-term problems do not change the promising long-term outlook and fundamental cheapness of the stocks. It now becomes apparent that the new Federal Home Loan Bank Board regulations are some- what less onerous than had been previously suspected, especially in the case of the larger, well-established companies. Two such companies, First Charter Financial and Great Western Financial, are on our recommended list. They continue to have higher objectives over the long term. Another stock on our recommended list, Sundstrand, ha's, by contrast; as yet failed to recover from the effects of temporary setbacks, and at Friday's close of 22 3/S was selling not far above its 1964 low. The company's earnings in 1963 were off sharply to 1. 21 a share vs. 2. 20 in 1962 under the impetus of a fourth quarter strike-caused deficit. The outlook for the company's aircraft and missile components and special purpose machine tools appears to be favorable and new orders are coming in at an excellent rate. The company is actively engaged in broadening its technical capabilities in the space field and, meanwhile, the 1. 00 dividend provides a yield of around 4.5 at current prices, The stock is again suggested,forcpurchase in capital gains accounts. Dow-Jones Ind. B21. 75 Dow-Jones Rails 195.2S ANTHONY W. TABELL WALSTON & CO. INC. Th t1 I-n k t letter Is not herein Is not nnd under no cu'cumstances III to be construed os, on offel to ell or as to uccurncy or contJlleteness and the tUl'nl!!hinj! thereut 0 solicitation til buy ill nut, nnd un.\el 1!1J nny …eeUl'ltlell Ii'!ctteurtbede til herem The intrmntlOn all, 1\ lelll -lentil Walston & Co Inc All ('XllreSS1Unl! IIf OPInion Rre to ('hHn)!e withllut nutit'(', & Cu, Inc, ond Olflcetll, Dhectnls. Stud,hut.tel nnd thereof on doy sell Rnd mny hnve an Intclest in to tiny mnrket news nnd nut fiB a the secllritie.. complete mentlUned helcin 'Chill mflll..et lettet' is inten(led AtldltlnnnJ inful nUltmn ith lelJled to IIOY 1111(1 ..ctlIIlticII melcly II )!encflti Idell,..t tn hClcln ulmllhed uPOn 1equt'&t.

W—-d–l-s–tloncn–&—C–o–. Melli/leIs Sell' Yo)'l. Stock Echa11ye NEW YORK SAN FRANCISCO LOS ANGELES .' PHILADELPHIA CHICAGO toOfFICES COAST COAST AND OVERSEAS TABELL'S MARKET LETTER April 17, 1964 .. Looking at th.e in' a broad, long term sense, we find little reason to change the op1OlOn expressed 10 thiS letter on several occasions. We believe the market reached a ma- jor top in the period between 1956 and 1961, and a major bottom in the period between 1960 1962, and is now in a broad pattern that will result in much higher levels 10 the latter part of the 1960's. The price action of the averages does not appear to conform to this pattern. This is because all stocks do not reach their highs or lows on the same day. Actually, if the individual action of each of the 30 stocks in the DJ Industrial average is broken down and the time element reconciled, the pattern is quite different from that shown in the overall average. The table below shows the price action of each of the 30 stocks in the DJ Industrial average from 1956 to date. The-figures in parentheses indicate-the year in which the high or low was reached. 1956-61 1960-62 1963-64 0/0 4/17/64 High Low Decline High Advance Clos.e Allied Chemical 66 ('61) 35 ('62) 47 58 65 55 Alum. Co.Amer. 133 ('56) 45 ('60) 66 82 82 82 American Can 52 ('58) 31 ('60) 41 47 51 43 Amer. Tel & Tel 139 ('61) 99 ('60) 29 50 143 Amer. Tobacco 55 ('61) 26 ('60) 53 38 36 Anaconda Co Bethlehem Steel 87 ('56) 59 ('59) 36 ('62) 28 ('62) 58 53 50 43 42 37 Chrysler Du Pont Eastman Kodak General Electric 25 a 249 ('59) 134 ('60) 99 ('59) 19 ('60) 160 ('60) 85 ('62) 55 ('62) 62 400 68 55 0 65 49 262 128 86 General Foods 107 ('61) 58 ('60) 58 90 General Motors 59 ('59) 40 ('60) 127 Goodyear Intern'l Harvester Intern'l Nickel Intern'l Paper Johns Manville Owens Ill. Glass Procter & Gamble Sears Roebuck Stand. Oil of Calif. Stand. Oil of N. J. Swift & Co. Texaco 51 ('59) 57 ('59) (fi)86 ('61) 48 ('56) 75 1 ' ('5 8 a 59 ('61) 25 ('62) B39 ('60f\\ I 3 v- . if) , 52 ( 48 64 '6'2) '60) 45 34 59 ('60) 38 40 ('60) 35 38 ('60) 26 b 44 50 45 ('60) 24 – 47 72 36 63 100 87 110 69 87 50 77 88 84 56 61 56 30 86 72 129 92 71 Union Carbide 150 ('59) 85 ('62) 43 130 53 United Aircraft 80 ('59) 33 ('60) 59 54 63 U. S. Steel 108 ('59) 38 ('62) 65 61 60 Westinghouse Elec. 65 ('60) 25 ('62) 62 42 68 Woolworth 93 ('61) 55 ('62) 41 83 51 Dow-Jones Average 911 a – Made high in 1955. 504 -45'70 b-Made low in 1957. 863 ll7 Sold above 1956-1961. 82 43 7J 77 34 59 98 83 109 62 87 46 78 128 48 56 35 85 827 It will be noted from the above that if all 30 stocks reached their 1956-61 highs on the same day, the high would have been 911 instead of 741. Subsequently, each of the 30 stocks declined sharply to reach-a low some time in the period between 1960 and 1962. The average decline was 450/0. 16 of the 30 stocks did not sell below their 1960 lows in 1962. If all stocks reached their 1960-62 low on the same day, the low would have been 504 instead of 525. Th advance since 1962 has been roughly 60 in terms of the average. If all of the 30 stocks reached their 1963-64 highs on the same date, the high would have been 864 instead of 830. Only 9 of the 30 stocks have reached new highs above the 1956-61 highs. The recent highs of 21 of the 30 are lower than the highs reached three to eight years ago. At a rough estimate 800/0 of all the common stocks listed on the NYSE are still below the 1956-61 highs. This leads to the thought that the market, in a very broad sence, is in a major reaccu mulation period between the 911 and 504 extreme s. The ultimate result will be an upside breakout, but probablya longer.period of consolidation is necessary before this occurs. Dow-Jones Ind. 827.33 Dow-Jones Rails 197.07 EDMUND W. TABELL WALSTON & CO. INC. ThiS market letter \s not. and under no circumstnnces IS to he construed as nn offer to bell 01 U sohcltntlnn to bu)' nny 1derr ctIln hel em. The In(m mntlOn contained herein IS nol Juarant.ccd as to accuracy or cOnllllctcnc&s lind the f1ll lh('l(,J( I.. not. nnd Ilnd('l no 1\1 to bE' eunbtl lied ab, n tlOn by Walston & Co, Inc. All C'IIllreSblOnS of OPllllOlI arc subJE'Ct to chnnlte wlth,,t ntlct' Wnl-;ton & Co, IIC, and DITI('N. DUectors, Stockholders anti Employees tbereof, purchase, seJl and may hnvc all lntere'lt 11\ tbe SeCUrities mentume,) bClcln ThiS marhet letter II JIItenllcd Hild prftlcntca mE'rely n!J II J!cncraJ inrormnl commentary on day to doy market news aud not as a complete analYbh A.!thtlOoal infO! matloll \\ Ith I CII-Cct to .my CClIllhe. I cferl cd to hel em will furnl'lhed uPon requesL \ \ ' .301

Walston &Co. —–Inc —– .I1em!e,. Xell' 'ol'!. Stock Euiw!Ile FILE NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER April 24, 1964 The uptrend channels that have been in effect since December 23rd on both the daily price range of the Dow-Jones Industrial average and the daily breadth index have finally been broken on the downside. The uptrend channel was bordered by an uptrend line connect- ing the December low of 752, the January low of 767, and the successively higher lows since that time. An almost parallel line connected the December high of 769, the January high of 780 and the successively higher highs since that time. Both of these parallel lines have, of course, been moving upward and at the time of the downside breakout, had outer limits of 844 and 823. The lower limit of this range has been decisively penetrated on the downside during the past week. Asimilar uptrend channel in our daily breadtil index since the December 23rd low. This uptrend channel has also been penetrated – the downside during the past week. These uptrend channels have been remarkably steady, but relatively moderate. The steady advance from the December 23rd low in the Dow-Jones Industrials had lasted for ninety-one trading days without a worthwhile correction. This is quite unique from a time element. However, the advance has been only slightly over 10. This is a magnitude con- siderably less than many previous rallies of shorter time duration. The downside breakout has, in our opinion, considerable intermediate term signifi- cance. It indicates the probability of an end to the type of market action that has been in effect since December. The advance from the December lows has, in the main, featured the blue chip investment issues that comprise the Dow-Jones Industrial average. This has re- sulted in a steady rise in the averages while the bulk of done comparatively little ma rketwise. We would expect considerably more se e ti here on. As yet, neither the averages nor individual e k a e for mportant tops. In terms of the Industrial average, it is difficult to rea ch w an the 800 level on the first stage of the decline. A rally from ad eve! to a point below the recent intra-day high of 831. 63 would result oad g of the potential tops. This letteFhas 10 -25 in long term capital appreciation catil't'inue this policy on strength, if you have not already done so. \ The pattern t t 0 ving fits into the concept outlined in our letter of April 17th. The b k n e action of the thirty stocks in the Dow-Jones average since 1956 indicates f t at market made a major top in the period between 1956 and 1961. If all stocks rea he eir highs on the same day, the average would have reached 911 instead of 741. We fu r believe that the market made a major low in the period between 1960 and 1962. Every stock in the Industrial average suffered a severe decline from what- ever high made in the 1956-1961 period to the 1960-1962 low. The average decline was 45 and the low, if each stock had reached its low on the same day, would have been 504. This decline, in our opinion, corrected the entire advance from 1949 to 1961 and resulted in a major low. The advance from the 1962 low is still within the confines of the 1956-1961 high of 911, and the 1960-1962 low of 504. If all stocks reached their 1963-1964 highs on the same day, the high would have been 863 which is still below the 1956-1961 high of 911. Only nine of the thirty stocks in the Dow-Jones Industrials have reached new highs above the 1956-196 highs. If we take a!l NYSE listed stocks)nto consideration, probably 80 are still in the 1956-1962 trading area. This, to us, means several things. (1) The market, despite the recent new highs in the average, is still in a broad reaccumula tion area that will result in much higher levels in the late 1960's. (2) The advance from the 1962 lows is not the start of the broad advance. Probably one more decline is needed before the market advances in a broad overall scale. (3) The market as a whole is not as high as the averages indicate. (4) The next decline will be the last opportunity to buy stocks in the 1956-1962 range before they advance to much higher levels in the late 1960's. (5) The above applies to the general market. There are plenty of individual stocks that are ahead of the general rna rket pattern and are already in major uptrends. These 'stocks,should be bought and held. Dow-Jones Ind. 814.89 Dow-Jones Rails 196.18 EDMUND W. TABELL WALSWN & CO. INC. — Till., Innl ket ietltr IS not /lnt! unltel 11 en cumlltullce; Lb te) he m!(1 os. nn lItre! t ..ell 1 ,J .,,,lIcltatl1l tn Illl ,In)' -'('CI1111(!-. I efell cd In em 1 he Infm 11\,ltllI flTIlntnl.1 hcrclIl \'on hy 'VulslOl\ IS nol & Co j.!lllli In IIlItee.! t All 11; to accul a eXIHettlOm, c\lyr III u\llnmn III'' and the fltllllhltij.! lh!ll'ur 111, ,\111 un, lei uhjer! tn (1i,IIl).!C \\Illwut twll(' '\'11,,1,,11 &. Uti III I Ullht.llll C., I to he Cu, III' ,11111 Off1Ch, DUcdI 11 1 I ('PI ecnl.\ Slol,hldt'I .\lIO! I.rnpiny('eo; thereof, l'ulchu;(', ;.('11 and rnlY h,IH! ,11\ Intelct In th(' cLlltilll''' 1'11('11110'11(',1 helclll 'fhl tlI!111,d I'tlu 1'0 Intended ,\1111 plel'u!l'd meiely .1.1 j.!CJI(I.l), mfurmlll ('ummen/al yon (I.W to I.tj rm,rket timl not WI II ('am II/etc Adll\wu,!/ lurm IIhttHlrJ \\ tth I c-.,'cd (I) .111) ..C('ll1lt1t… I erel led ta hel elll \\ ill he hll nlhed \\Jlon request \\ , 0

Walston &Co. Inc Jlrlll/Jer8 Sell' lol'k Stork E.lclial1ge NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST ANO OVERSEAS TABELL'S MARKET LETTER May 1, 1964 The decline fromth'e-Aprtl-l7f1i intra-day high of 831. 63 on the Dow-Jones Industrial average has been comparatively modest so far. Thursday's low was 807.18, or a decline of roughly only 30/0 from the peak. Furthermore, there have been, as yet, no important distri- butional top patterns formed in the averages At the moment, it would appear that 800-790 is the worst downside potential that can be read into the present pattern. At that point, if the decline occurred in the near future, some of our shorter term technical indicators would Ienter oversold territory. The above, of course, applies to the shorter term trend of the general market. From an intermediate term point of view, the downside breakouts of the uptrend channels from the aDecember lo;s in both the price a'nd breadth indic;S reversal-of the- uptrends in' the averages that have been in effect for four to five months. The downside implications are IrI not yet clear. As noted above, the immediate downside objectives are not much below pres- ent levels. However, a rally that failed to move above the April 14th high in both price and breadth would broaden the top and indicate a lower downside obJective. We continue to advo- cate building up a 250/0 cash reserve on strength if you have not already done so. For the longer term, this letter remains very bullish. We continue to believe that the market, in a broad sense, is in a reaccumulation area that will result in considerably higher prices in the latter half of the 1960's. We do not subscribe to the much publici1ed theory that the market must at some time correct the 4000/0 advance from the 1949 low. In our opinion, this has already happened. The decline from the 1961 high of 741 to the 1962 low of 525 was the sharpest decline in the averages in average decline in the thirty stocks in the Dow -Jones Indu i or since 1937. The mO ha tever high was reached in the 1956-1961 period to whatever low i t e 0-1962 period was 450/0 In our opinion, this steep decline in everyone e thlrt ocks in the average (the smallest declines were 240/0 in Texaco and A a ephone) corrected the entire long term advance from the 1949 lows and fu ater rection is not necessary. ,—-We feel that the pattern that will result in a that will result in a much low 20the major tio i 0 ce f.building.up a,major reaccumulation e e 1&E!1 at a later date rather than a major top later date. We do not, however, believe that eted. Probably one more correction is needed to broaden the base t ' . 1vidual stocks. Such a correction, whe n , as and if it occurs, will bear n m to the 1962 debacle. The 1962 decline was the downside climax of a major top ha been built up in individual stocks for a five-year period between 1956 and 196. e possible decline we envision is part of the building of a majJr bottom somewhat similar to the 1946-1949 period in the general market. It probably would not carry much beyond a 100/0 correction in the overall pattern. We have mentioned a one- third to One- half retracement of the advance from the 1962 lows to the 1963 -1964 high as a possible yardstick for the pattern in individual stocks. It would be highly improbable for each stock to reach its low on the same day so the possible downside objective of the aver- ages is vague under this theory, but it would probably be within the confines of 750-675 in the Dow-Jones Industrials. W.e see no indication at the moment of a return to anywhere near the 1962 low of 525. While the above applies to the general market, individual stocks and groups are at various stages of the overall pattern. The oils, for example, have completed their re- accumulation period and are in a major uptrend with still higher levels indicated over the longer term despite the already sizable advance. The rails also have a similar pattern. Other groups, like the airlines, have probably reached their initial upside objectives and need a consolidating period. Other groups like the aluminums, chemicals and papers have already formed sizable potential bases and are near the start of a major advance. Still other groups need a further decline to broaden the bases. The important thing to remember, in our opinion, is that a decline would offer buy- ing opportunities in many issues. EDMUND W. TABELL Dow-Jones Ind. 817.10 WALSTON & CO. INC. Dow-Jones Rails 196. 50 Thn, not, lind unrlet no cirClimstRI1C(!S 1, to he COIl'tl lied 1'1' nn ,,!Tel 11) , n l)hCllntwl1 t 1111 nn)' Idell cd 't ht'lcm The lnrm mntwll ('untained herem IS not no; to UCCUl ncy (J) com)llctenC'; nntl the fill thE'! C(lr nt, an,l untie! flO Uf CUlllst.UH'C i'I til lIc (nn!tl ued Ill! a 1Clll tum hy \\dston &. Co, in'! All c,prCSl\lOn'l of O\JlnlOn me ubJc,t to Ch,lIlj!(' \\Lth.. ut utllC Wai-.tnn & l,,,, 1m an,1 OffICCl…. , DUCLt19 SttLkh,,!,lel .. lind Emlll,wceo; thcl'rof, i'l11cha;c, Rcll nod mlly hllvc IlO Intclc81 In the mentu\Ileti bt.'lcllI 'Ihl !l1lllhct leHel 1I11enticl! ,1I111 melely.1 n Inrurmal cnmmentnry nn to lin m.lthet new III1tI nut II., n c(lmlliete ,II1I1IY-.h A,lIhtmlwl lIlfUlmntH)n \\Ith IC-.)('.'t to .IIIY O-\)('1I11tlCl! lefelle,l to helcm \'0111 he (ut m .. ht'\l lIlIon request \\ \ ,01