Walston &Co. —-Inc —- Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS EDMUND W. TABELl'S RECOMMENDED LIST QUALITY & LONG TERM GROWTH Amerada Amer. Home P DuPont General Elec. Gulf Oil Close 5/5/64 837/8 661/2 262 821/2 QualComment Close Qual- 5/5/64 !!L Comment A Buy on dips. Norf. & West. 127 3/4 A Buy on dips. A Hold.. Penney,J. C. 517/8 A Hold A Hold Reynolds Tob. 481/4 A Buy on'dips. A Buy at 85-80. RoyalDutch 461/4 A Buy on dips. – -Std. Oil – jo- PRICE APPRECIATION ., Atchison, Top. Close Qual- 5/5/64 2!L Comment 28 3/8 A- Buy on dips. Beaunit Corp. 30 1/2 B Buy on dips. Clark Equip. 48 3/4 A- Buy on dips. Cluett Peabody 50 3/8 B Buy at 50-45 Cansol. Coal 51 3/4 A- Hold Copperweld Steel 50 B Buy, on dips. Denver, Rio G 20 3/8 B Buy at 20-18 Disney, Walt 46 3/8 B Buy on dlpS. Eaton 43 B Hold First Charter F 41 1/4 Buy on dips. Fruehauf Trail. 30 3/a B Buy on dips. Illinois -Central -5-9- 1/4-B-BifyOilaips; Int. Min. Chern. 74 1/4 A- Buy on dips. Kansas City So. 49 1/2 A- Buy on dips. Kerr McGee 41 1/8 A- Hold Korvette, E. J. 29 1/4 B Hold Libbey-Owens 58 3/4 A Hold McDermott, RJ 22 B Hold Midland-Ross 74 5/a B Hold for 92 Close Qual- 5/5/64 ity Newmont Min. 40 1/8 A- No. Amer. Car 29 1/2 A Penn. R. R. 30 1/2 B- Pure Oil 48 1/8 A Rayonier 36 7/8 B Reynolds Met. 39 B Riegel Paper 39 1/8 B Schlumberger 63 3/8 A Scoville Mfg. 35 3/4 B Southern Rwy 63 3/4 B Stevens, J. P. 36 3/4 B -StorerBroad. Sundstrand 21 3/a B Swingline A 34 l/a B Union Bag C 39 7/a B United Fruit 21 B U. S. Plywood 77 1/2 A- Univ. Oil Prod. 34 5/a B Varnado, Inc. 25 5/S Comment Buy on dips. Buy on dips. Buy on dips. Buy on dips. Buy on dips. Buy,on dips. Buy on dips. Buy on dips. Buy on dips. -Buy on dips. Buy at 35 -dips. Buy at 20-1 Buy on dips. Buy on dips. Buy on dips. Hold Buy on dips. Buy on dips. LOW-PRICED SPECULATIVE Close Qual- 5/5/64 Comment Amer. Metal Pr. 21 1/2 B Buy on dips. Amer. Radiator 23 B Buy on dips. Audio Devices .107/a B- Buy on dips. Braniff AirwiYs 19 B Buy on dips. Campbell Chib. 4 1/16 – Buy as Spec. EI Paso Nat! Gas 20 1/4 B Hold for 24 Foote Mineral 12 7/S B Buy at 11-10 Gt. West. Fin. 14 1/2 Buy on dips. Hewlett Packard 18 3/S B Buy on dips. Intern'l Packers 12 B Hold Mesabi Trust 15 7/S Buy on dips. Close 5/5/64 Microwave 9 5/a Mohasco 13 1/2 National Can 18 Pacific. Pete 12 3/4 Raytheon 20 5/S Reeves Bros. 15 3/4 Seaboard W. Air 7 Sperry Rand 16 1/2 Univ. Match 12 l/S Varian Assoc. 11 3/S Vulcan Mat. 14 Qual- Comment B Buy on dips. B Buy on dips. B- Buy on dips. B- Buy on dips. Buy on dips. B Hold for 24 C Buy on dips. B Buy on dips. B Buy on dips. B Hold B Buy on dips. May 5, 1964 This Bulletin IS not, and lIo.ler nu CIlCHmstanc('\. 10 he construc,l a …..UI ufTcI to III u sohutntlOfi to lillY tiny seeull(les referl cd to herem The mformation con- tained herein nul J.unranteetl as \h nccUiacy lr ltnd thr rlU thelcof h nul. lind under no clrcumstnnces IS to be construed ns, a representatIOn by Walston & Cu. Inc All CXPle..,wns of opinIOn HI c- subject chanJ,e 'Ithout lIuilec & Co, Jnl', and Offlet!rs, Directorll, Swckholdcrs and Employees thercof, DUlchnsc-, nnd Illny have nn III th(' H!lllrltH!' mentloncd hcrcm Thh Bulletlll IS Intendt(l lind merely as a S!eneral, mformlll commen tary lind not as 11 complete analYSIS Addlhonal InfurmatlOn With re;Jlect to any scnilitic- referred to herem Will be furnished upon request '11-916

Walston &- Co. —–Inc —– 1embe,',. Se,,. rod, Stock Euhm,ye NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER May 8, 1964 Five consecutive advancing days wiped out the decline from the April 17th intra-day high of 831.63 on the Dow-Jones Industrials and moved the average to a new high of 836.06 On Thursday. The advance ran out of steam on Friday with prices trending off from their early morning peaks and the average closed off on the day. Despite the fact that a new high was posted, the advance was not impressive. It moved just to about the point one might have expected it to reach, i. e. to around the lower limit of the uptrend channel that had contained the average from the late December low until two weeks ago. Those familiar witn technical analysis are aware that a return to the lower limit of a channel after a downside penetration is a normal phenomenon. More significant was theaction of thedaili breadth index which reacned'a peak of 154 in early April and was unable to advance beyond 149 on the recent rise. A comparison 0 advance-decline figures for the April 20th-27th decline and the Maylst-7th rise, shows the reason for this behavior. Date Advance Decline Difference Date Advance Decline Difference 4/20 488 582 94 5/1 695 381 314 4/21 482 608 126 5/4 643 431 212 4/22 484 593 109 5/5 600 496 104 4/23 474 610 136 5/6 574 481 93 4/24 288 846 558 5/7 593 472 121 4/27 346 744 398 The failure of the general market to generate weakness shown is obvious. There appears, then, little reason to April 24th when we suggested (a) the market had ent r W qual to the previous dvo d in our letter of a new se, (b) that this new phase might involve the building of tops in n many stocks, and (c) that the pollcy is probably s11ll r rv rfuture buying q — – – – — — – – — — There are, however, a possibility of a correction in the stock market. The pessimist iews sib1itly as cause for alarm and worry. The optimist (and it is at least arg '\ s ssful long term investor must, at heart, be an opti- mist) views the d – 3 nity to buy attractive stocks at bargain levels. This letter adopted such a ie ril 24th when we said The next decline will be the last op- portunity to buy stocks i e 1956-62 range before they advance to much higher levels in the 1960's. T, e are plenty of individual stocks that are ahead of the general mar- ket pa ttern and are already in major uptrends. These stocks should be bought and held. 11 With this in mind we have issued a new recommended list which can be obtained from your Walston Account Executive. Varbus stocks have been removed from all three categories on the list as they have reached upside objectives or relative strength has dete- riorated. Holders of those stocks might well consider switching them into other issues on the list. We have also added five issues Scoville Mfg. (35 3/4), Riegel Paper (39 3/4), Vornado (25 1/4) in the Price Appreciation List, and Mohasco (13 3/8) and Vulcan Materials (14 1/ 8) to the Low- Priced Speculative List. These will be reviewed in subsequent issues of the letter. Among individual stocks that are !till in major uptrends are most of the internation oils. This group is represented in our Quality-Long Term Growth list by three stocks Gulf, Royal Dutch and Standard Oil of New Jersey. The latter has been a market leader since the 1962 lows, and recently reached a newall-time high of 90 7/8. Despite its strength there is no sign that the uptrend has abated, and its objective is above current levels. Investors con- sidering new purchases, however, may find Royal Dutch currently attractive. On a per share basis this company has a cash generation almost equal to that of Jersey and reports earnings which are more than 750/0 of Jersey's 4.74. Despite this fact, it sells for little more than half the price. This discrepancy can be traced to the fact that Royal Dutch is a foreign company, but it is nonetheless true that its representation in North America is greater than that of its American colleague. It appears attractive for new purchases on any minor decline. Dow-Jones Ind. 828.57 Dow-Jones Rajl s 199 3.5 ANTHONY WTABELL' WALSTON & CO. INC. ThiS mllrkct letter not. and undel no circumstances IS to he con-tL lied liS. nil trel tn ..ell 01 II bohcltntlUn t'l lollY 1111) CClllltlC.. 1erCl1 to hel ('III The InrOl millIOn 'ontnmcd ib nul to aCCUracy Ul nnrllhe flu nlbhllll-! theleuf 1' nut. and IS to lH,' ( .. a tlun by Wnlston & Co, Inc All of Pinion lite bubJC'Ct to chafil.!c Wllhllt nHIl(e Wnh.ton & Cu, Inc, IIntl lhlcctUI\., and Employees thereor, and may hu\e nn mterest In the M!C'llrttlell mentllne,! helelll 'fhl mnll..et lettel I IIIlen.\ed III11illlecnted mereJ) Il'! 11 l-!encr,ll, mfurmu/ commentary nn rillY tu dny market news lind nut rtll rt cnml,lctc anlilysh Ad(/Itluntd IflUlflt.ltwn \\Ith lejlcl't tu lIny beclIIlltes lefel led (0 heleln WI!! he rUI nt8hed upun request \\), 01

———- — W—-a–l-s–tloncn–&—C–o–. Mem/)el'. ,veil' Yo),k Siock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST NO OVERSEAS TABEll'S MARKET lETTER' May 15, 1964 1 t.B It is our sad duty to announce the untimely death Thursday night of Vernon C. Walston, founder and President of Walston & Co. Mr. Walston, who was 58, started our firm more than 33 years ago in San Francisco, and built it into one of the nation's largest investment banking and brokerage concerns with capital in excess of 23 million, over 90 branch offices and nearly 2,200 employees. Mr. Walston, during the past few years, personally handled the acquisitions of Cruttenden, Podesta & Milrer and J. R.. Williston & Beane. In the last 12 months he, together with the Corporation's Executive Committee, revised and strengthened the management team to meet the growth of the firm's business. Mr. Walston's passing will not affect the capital-of the Corporation, and Walston & Co. will continue to serve the public as previously. A senior officer of Walston & Co. states that the Walston family interests will remain actively involved in the business. Mr. Walston's two sons are officers of Walston & Co. Throughout the Walston organization, which extends from Switzerland to Honolulu, are a total of 108 company officers. The officers and employees of Walston & Co. extend their deepest sympathies to members of the Walston family. Last week's market was a desultory affair. The closing prices of the Dow-Jones Industrials held in an extremely narrow range of 827. 38 45 low. Advances and declines for the week appear, at this writing, to be a ut -6ilost other technical indicators moved in a more or less sidewise Technical market action has shown a slowly pattern since early April. Breadth action, which was widely noted in ave lost some of its popularity However, our breadth index has i t e r e signal since the start of the ad- vance from the December 23rd lows va1\,- Thebrea-dth -index reached-new high territory along with the the mid-April intra-day high of 831.63. However, the breadth i ex h 0 c n'hrm the May high of 836.06. The divergence has occurred in both w y breadth indices. Indications point to at least a minor downtrend t he distributional top patterns formed are, however, relatively small wit . downside indication in the 800-790 area. These tops could, of course, broa We continue to advise a 25/0 buying reserve. Many groups 11 probably show above average action in any market correction. The action of several of the rails has been most impressive over the past week. Seven railroad issues are on our recommended list. Santa-Fe, Illinois Central and Kansas City Southern reached new high territory during the past week. They should be held and bought on minor price declines. Other issues on our recommended list are Denver & Rio Grande, Norfolk & Western, Pennsylvania and Southern Railway. J. Ray McDermott (24 7/8) has been a disappointing issue in our recommended list. It appears, from a technical viewpoint, to have built up a sizable potential base pattern, but, until this week, it has shown little upside price action. Activity in this issue has increased sharply in the past tw.P days. At Friday's close of 24 7/8, the stock is near the 1964 high of 25 1/2. An upside penetration would be constructive. We continue to like this issue for long term holding. Two groups present very interesting potential patterns at this stage of the market pattern. They are Savings & Loans and Vending Machines. Both of these groups are selling close to their two-year lows. They should be watched very closely during the next market decline. Ability to hold within the broad trading areas already formed would be extremely constructive technical action. While these issues are speculative, the price appreciation potential appears to offset the price risk involved. Dow-Jones Ind. 826.23 Dow-Jones Rails 201.58 .Jtl I EDMUND W. TABELL WALSTON & CO. INC. This market letter IS not. and und('r no Circumstances 19 to be constillcti as, lin o8'CI to bell 01 a ijUhcltntloll to LilY any seem 1e(el'l cd 'to hC1Cln The inrlll mntion contained herem 19 not gunrantced as to 3Ccurncy 01 compietenc-.s and the fUI thereor II! not and undm IlO cncum'ltllnce! \; to be ('on,l1 lied ns n repre.. hon by Walstm & Co. Inc All expressIOns of opinion are bubeet to ('hnng-e \\lth..ut nltl('e 'WfIton & Co Inc. Elllli OfflC'ell!, Director!, fIn.1 gm))oyees thereof, eell nnd may have nn Intel cst In the secu'tle'l mentltlned heletn 'Chi! mnrJ…ellettel II! mtended tlnd IlrCIcntc.1 mer('ly nil a g-eneml mformal commentnry on day to day market newl! nnd not as n complete nnllbhl'l Addltwnnl lIlfUi mallon …. Ith to lillY ,,1'('1I,ltLI'II 'del 11'.1 to herein Will be furllll!hecJ upon request. \\.. 301

Walston &- Co.. – Inc – – – – – Membe,'s New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lEnER May 22, 1964 The feature of the last week's market was the continued favorable action of the rails. Unlike the Industrial Average which broke below its uptrend channel a month ago, the Dow-Jones Rrtil Average is still in an uptrend channel. This channel started from the Kennedy assassination low of 166.41. At Thursday's intra-day high of 208.95, the average was near the upper line of the channel. At the moment, the lower line of the uptrend channel is at approximately the 198 level. Except for a handful of issues, t he industrial section of the market continues its desultory action. The Dow-Jones Industrial Average still continues in the relatively since mid-average is slowly forming a-distrib-utionaI fop tha.Ube .. moi-e' time maybe requii–ectto' . …..,. broaden the pattern. Individual issues continue their selective action. Two weeks ago, we dropped a number of issues from our recommended list, but added five new stocks. Three of these issues are highlighted below. Riegel Paper (42) is a diversified paper, packaging and pulp company with a broad product line. Increasing volume and improved prices should result in earning s growth over the intermediate and long term. 196'3 earnings of 2.32 were down from 2. 68 in 1962 because of competitive pricing and lowered profit margins, However, it now appears that the earnings trend has turned upward. First quarter earnings of 78 were up over 500/0 from comparable 1963 results. The stock reached its high in 1959'at 45 3/8 and de- clined to 23 3/8 in 1960. Riegel Paper is one of the issues that held above the 1960 low in the 1962 market debacle. The 196210 wa Since then, the stock held in the 25-37 area until the recent uPsideaer t'o. 0 overhead supply, from a technical viewpoint, may be encourt ered in -4 r ,but the long term patter suggests considerably higher levels. r e a strong support level in the 37-35 range. Relative strength action i -. – – Mfg;-'3 metal working field, in n Aluminum operations are bei . g\\)kadi(!j'g' independent brass mill operator. interests are growing in importance, The company is old a ,a common dividends have been paid since 1855. The present divi d I n with a yield of 4.2. Earnings for 1964 are expecte to exceed the 1963 a share. First quarter earnings at 83 a share were 43/0 above the 58 ea ed e first quarter of 1963. The stock is still selling below its 1956 high of 40 1/4. the period between 1958 and 1963, Scovill held in a trading area bounded by 30 and 16. This broad base pattern, from a technical viewpoint suggests a long term 65-85 upside potential. In case of a general market decline, the stock would be expected to meet support at the 32-30 level. Relative strength is good. Vornado, Inc. (24) is the result of a merger in 1959 between a discount store operation, Two Guys from Harrison and O. A. Sutton, a manufacturer of appliances selling under the trade name of Vornado. O. A. Sutton was liquidated and Vornado appliances are now manufactured by outside sources ahd distributed by the company. Vornado is the third largest discount house and operates 21 discount stores on the Eastern Seaboard of which 15 are in New Jersey. Earnings comparisons with recent years are difficult because of the tax-loss carry forward of 9 million resulting from the merger with O. 1\. Sutton and the recent changing of the fiscal year to January 31. The'ia;-l-;ss carry forward ended in August 1963. If earnings for the twelve-month period ended January 31, were fully taxable, the per share earnings would have been arounq 2. '00. Earnings of the fiscal year ending January 31, 1965 are conservatively estimated at around 2.10 a share and t he stock is selling at about lJ 1/2 times these esti'mated earn- ings. This is a relatively modest multiple for the industry. No cash dividends are being paid. A 50/0 stock dividend was paid in 1960. Technically, the stock presents an interesting potential. A high of 45 was reached'ill 1961 followed by a drop to 16 in 1962 general 'market decline. Since that time, the stock has held in the 16-29 area for two years, and has built up a substantial pot ential base. From a technical viewpoint, ability to reach 30 would indicate considerably higher levels. Relative strength action is below average but EDMUND W. TABELL WALSTON & CO., INC. 0 I eft nces IS to be construed as, an offer to sell or a soliCitation to buy any secuTltJes referred to herem The 1nformation C'untmncd herem IS not Jnmrnntced as to accuracy or completeness and the furnlshmJ thereof IS not, and undel no circumstance-; IS to be construed 8S, a rcpresent8- lum h Walston & Co, Inc All expressions of opmion nrc subJect to chnnl!e Without notice Walston & Co, Inc, and Officers, Directors. Stockholders and thcreof, pUlchlllC, sell and mllY have an Interest m the securities mentioned herem ThiS market letter is mtended and presented merely as 11 general, mformal commntary on dny to day market news and not as a complete analysis AdditIOnal information With re;pect to any securities referred to herein be fUI nlshed upon 301

— Walston &Co. Inc. F/L-E Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFfiCES COAST TO COAST AND OVERSEAS TABELL'S MARKET LEnER May 28. 1964 Last week's market action revealed little of technical importance. The Dow-Jones Industrial Average still remains in the extremely narrow trading area in which it has held since mid-Mar ch. The swing from intra-day high to intra-day low in the industrial average for the past eleven weeks has been only 3.3. Obviously, this trading shelf will be broken in the not too far distant future. In reviewing our various technical indi- cators, we believe the probabilities favor a downside breakout. A decline below the last intra-day low of 807.18 would indicate a further decline to the level. The divergence between the averages and market breadth still continues. Both the daily and weekly breadth indices have failed to confirm the early May new high in the averages. – —'- It is still our contention that the general market is in a broad re-accumulation perio that will eventually rewlt in much higher prices but that. from a technical viewpoint, one more decline is probably needed. rn the meantime, many issues have indicated that they have largely completed their accumulation phase and are in a position to move ahead in the near future. Two such issues were re'cently added to the low-priced speculative section of our recommended list. They are briefly reviewed bElow. Mohasco Industries (13) is probably the world's largest manufacturer of soft floor coverings, The demand for home furnishings – carpets and furniture – should show a steadily mcreasing uptrend over the coming years. Children born in the population boom that sta!'ted in the mid-'40's are now approaching the family'formation stage. This trend will continue over the immediate future. Mohasco was as the result of a merger of Mohawk Carpet Mills and Alexander Smith. In n the company merged with Firth Carpet Company, another i te rYe Early this year, Mohasco acquired Futorian Manufacturing '10 cash. Futorian is a manufacturer of upholstered furniture in the f' Sales of this company in 1963 were about 25 million. With this ohas sales could reach 145 millic,m in Earningsfor,,1963 dropped volved in the integration of rRW ilth' his out of the way, earnings in-should show a sizeable increase and are the 1.20 a share level for 1964. At present price M yields 3.8 vn the e t n about 11 1/2 times estimated earnings and share quarterly rate. An extra of 5 per share was paid in Decem 6, a is could be increased this year. Technically, the stock reached its hig in 1 at 18 and a low of 8 in 1959. A sizeable potential base patt- ern has been formed w' substantially higher levels suggested. Good support should be met at around the 12 rea in case of a general market decline. Vulcan Materials (14) is a major construction materials producer. Stone, sand. gravel, slag, concrete building blocks and other concrete products accounted for almost 70 of sales in 1963. Industrial chemicals and the metallic division accounted for most of the balance. With 1964 indicated as another good construction year and increasing family formations becoming a major factor in the industry in the later '60 's and for a long time to come, the long-term outlook is favorable. Earnings have increased mOdestly each year since 1959 and this trend is expected to continue. The seasonal pattern of sales and earnings results in lowered sales and usually a loss in the first quarter. For the first quarter of 1964, sales increased to 23 million as compared to 18 million in the 1963 quarter and earnings of 1 were registered as against a 15 loss in the comparable 1963 period. At present price levels, the stock is selling at less than 11 times 1963 earnings of 1. 31. The first quarter results suggest higher earnings in 1964. The dividend has beenraised to 15 quarterly and at the annual rate of 60 the stock yields 4.2. Last year, the company purchased 75,000 common shares at an average price of 11.69 and accepted te'1ders of 330,867 shares at 12.50 a share thus reducing its outstanding stock. The technical pattern is constructive. After reaching a high of 20 in 1959, the stock declined to 8 in 1960. Since that time. the stock held in the 8-14 range until the recent advance to 15. The pattern indicates a favorable long-term potential above the former highs. Dow-Jones Ind. 820.56 Dow-Jones Rails 205.95 EDMUND W. TABELL WALSTON & CO., INC. morket letter not. and under no cIrcumstances is to be construed os. an offer to sell or a SOliCitation to buy any secuntles referred to herein The information (ontnined herem twn by Walston Is not Ituaranlced as to aCCUraCY & Co, Inc All c(pr(!SBlOns of or completeness and the oplmon subject to furnlshtnlt thereof IS not. and under change without notlce Walston & no Co c . Ircumstanc Inc. and es 18 to Officers be construed . Directors. as. 11 repre'lentaStockholders and t'mployees thereof pUlchase sell and may have an Interest In the securltles mentIOned herem ThIS market letter 16 Intended and presented merely .116 a general, c o m m .. on day to day market news and not as a complete analYSIS AdditlOnal mformatlOn With respect to any securities referred to herem will be urfllshed upon request \\ N 301

— Walston &- Co. Inc Member. Sell' York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER June 5, 1964 The first four days of last week saw the Dow-Jones Industrial Average, along with most individual stocks, decline sharply. Thursday's low was 800.76, close to our downside obJective of 795-785. In an uncertain market of thiS nature, holdings should combine a minimum of down- side risk with good long range upside potential. American Can Company is therefore being added to our Recommended List for quality and long term growtn. AMERICAN CAN COMPANY Current Price Current Dividend 44 i ng -atAi'm7 erican times Can, last y currently at 44, is sellear's earnings -of 2.56 Current Yield 4.50/0 to yield 4 1/20/0 on the 2.00 dividend. A simi- 1ar statement could have been made at almost Long Term Debt 227, 685,000 any time during the past 10 years. With short 1.75 Pfd. Stock 1,661, 502 shs. periods of exception, the price range since Common Stock 16,112,107 shs. 1954 has been 40-50 and earnings have held between 3.04 peak and 2.06. The 2.00 Sales 1963 1,149,400,000 Earned per share 1963 2.56 payout has been a fixture since 1956. Although this is hardly the picture of a growth Market Range 1964-62 47 3/8-38 1/8 stock, there have been profound changes takin place during the past decade which have not been statement. American Can is no longer purely a tin can maker, r zor-thin profit margins brought about by intense competition. It 0)1 a' sified .company spanning the entire packaging field with strong inancial abilities auguring well for growth outside the Paper have been acquired. In 1960 n nte 956 Dixie Cup and Marathon the glass container field. In 1962 v it' presentatioh-in-thechemYcai'and — metallurgical fields and New Jersey electroplat g co e i acquisition of Hanson Van Winkle, a 17 million. It has been a leader in new product development th e aging area. It is certain e why all this has not been reflected in results. The answer is that gro ntroduced packages is slow but steady. The metal beer can, for example. to ears from the date of its introduction to achieve the commandin share of the market' ow holds. Many recent American Can introductions may be in the early stage of similar growth patterns. For example, soft drink cans increased their sale by 28 over 1962. Their total market share should double by 1967. That American Can intends to remain in the forefront of packaging technology is evident by its recent formation of a corporate planning and development department with an executive vice-president in charge. This department is now building its own research and development center. An example,of American's technological leadership is the metal-blowing process, licensed by American from llikon Corporation. Capable of forming seamless aluminum co tainers of any type by forcing gas bubbles through a bath of molten metal, the process has recently passed from the experimental to the pilot production stage and will be applied to other materials, including plastic. It could well revolutionize the entire can-making field by affording significant economies over the present highly complex process. From a technical pOint of view, if the narrow range in which the stock has long held is considered a base, the ultimate upside potential could be well above current levels. It is felt that continued development and expansion will produce the earnings to justify such levels over the long term, and the stock is recommended for income and long-term growth. Dow-Jones Industrials 806.03 Dow-Jones Rails 202.50 ANTHONY W. TABELL WALSTON & CO., INC. ThiS mnrket letter IS not. and under no circumstances IS to be conbtrncd as. fin otter 10 sell 01 R bolicltntlUn til lIuy any 1efCl1 c(llt) hCH!1n The mformntion ('onlnined herem is not guaranteed as to accuracy or ('ompletencso; and the fill fllShlnJ! thereof HI not. nnd undel no el' lumtnnLe., IS to be ns, a rCll! ecntn- han by Waiston & Co, Inc All expression! of OpinIon are to chnnJ.!(.' \\lthuut nutlce & Co, Ipc. and Offlcel Dllcc\nls, and thereof, purchase, sell and may have an Interest IJI the !eC\lrltles hClcln market lett(.'1 1ntende.1 merely a informnl commentary on day to day market news and not as a complete AddLtwnal Inf01 mation \\lth to I1ny lefellcd to heicin WIll be fllrrnshed upon reQuest \\;.. 31)1

Walston &Co. Inc. Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER June 12, 1964 The general market pattern has reached an interesting stage of technical develop- ment. Its decline early this week brought the Dow-Jones Industrial Average down to an intra.-day low of 796.90. This is quite close to our 795-785 downside objective. It is also approximately a one-third correction of the 125 point advance from the Kennedy assas sination low of 710.83. Normal technical corrections usually retrace one-third to one-half of the preceding advance. The market's technical action over the nextifew weeks will be important. There is heavy overhead supply in roughly the 810-830 area where the market has held since mid- March. The;rndustrial Average now also has a downtrend line connecting the May and early June highs of 836.06 and 824.94. This line now stands at around the 820 .A rally into the overhead supply and an ultimate failure-to bring in – new buying power would result in the broadening of the top pattern and a lower downside potential. Most objectives in the averages have been reached on both the upside and the downside, and time will be needed to form a new technical pattern. The clue as to the direction of the next move should be indicated by breadth action. Our breadth index turned unfavorable last month and there has, as yet, been no change. The market pattern of the averages is of interest from a background viewpoint, but the price action of individual issues is of much more importance. Because of the uncertai technical position of the market, this letter has advocated some profit taking in individual issues over the past few months and the building up of a 25 cash reserve in order to take advantage of possible buying opportunities. However, we continue to suggest individual issues where the downside risk appears relatively potential appears substantial. appreciation 0 Reynolds Tobacco ( 46) is a case in ct our recommended list early in January before the release of the U. S. a eport. It moved up fro a 1964 low of 38 1/8 to a high of 51 1/2 ent! cf ack to around the 42 level. We believe this stock hils had a sufficient t I co ction and is in a long-term buying -. – -the 1-962-lowas 341/2. Earnings for the 12 months ended March 30 e at 45, the stock yields 4'l on the 1.80 annual dividend. American b 3 a somewhat similar pattern but with a higher yield of 4. 9. Of a more . u s Copper Range (30). This issue was dropped from our recommended' etched its technical upside potential at 39 in April. It has declined sharply sinc th a drop to 27. Would consider the stock in a buying area in the 28-25 range, and t ock will be re-admitted to the list if that level is reached. Beaunit Corp. ( 34 ) has been part of our recommended list for quite some time an continues to show relatively good action. Earnirtgs for the fiscal year ended March 30, we 2. 66 and the stock yields 3.6 on the 30 quarterly dividend. Beaunit was strong during the past week on remors of a possible merger. These rumors have been denied. The stoc has an attractive long-term technical pattern and should be bought on moderate price de- clines. The retail ,store group has been showing above-average relative strength in recent markets. Three issues on our recommended list fall into this broad category. Two of these have reached new high territory recently. J. C. Penney ( 54) which has been on the list for a long time as a quality issue with long-term growth potential, reached a 1964 high of 55 3/8 on Thursday. The 1-961 high was 59. (Vornado ( 27) a comparative new- comer to the list reached a new 1964 high at 28 last week. The 1961 high was 45. Both of these issues should be held and bought on minor declines. The third issue, E. J. Korvette (30 ) 'has not shown as favorable price action. For those in a position to assume a specu- lative risk, the stock appears to be in a buying range at around current levels. The stock has had some rather wide price swings since reaching a 1962 high of 57 and a low of 22 later in the year. Since then, the stock has ranged between 25 and 40. The issue is selling at a relatively high earnings multiple, but 39-weeks net was 1. 18 vs. 1.03. The stock pays no dividend. Technically a large base appears to be forming and the issue has specu- lative appeal in our opinion. EDMUND W. TABELL Dow-Jones Industrials 809.39 WALSTON & CO., INC. Dow-Jones Rails 203.74 ThIll mnl kf!t letter not and under no Clrcumstunces IS to be construed lS. an offer to scll or II. sohcltatlOn to buy any sccurltil!8 referred to herein The informnbon l'ont\(incd herem IS not as to nccurnc' or completeness and the furnishing thereof 15 not, and undel no Circumstances IS to be construed as, a representa- tllln by \'nlston & Employees thereor, Co, Inc. pUlchnse. All sell expressions of opIniOn ure subject to ('hunge Without notice Walston & and may have an mterest 10 the securItIes mentIOned herein. This market Co. letter Inc.. and IS Intende dO fafnI cde rps ,r eDg ei rnetcetdo rms ,e rSetloyc ka sh o'!l' dgeer sn ear na ld, H1formnl comm..ntnry on dny to day market news and not as a complete analYSIS AddltlOnnl information With respect to any securities referred to herein Will be furnished upon request N J01

Walston &Co. Inc —– Members New YOTk Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFfiCES Co,a.Sl TO COASl 'ND OVEaSEAS TABELL'S MARKET LEnER June 19, 1964 COPPERWELD STEEL COMPANY Current Price 50 Recent developments make a second Current Dividend 2.00 lodlt' at Copperweld Steel Company, first Current Yield 4.0 recommended in this letter in January, wort while. For the first quarter of 1964 the Long Term Debt 17,556,000 company reported a 16. 7/0 increase in sales Common Stock 1,191,737 shs. to almost 30,000,000 and net earnings of 1. 20 vs. .72 or a two-thirds increase. Sales 1964-E 112,000, OOO.-,c-Second quarterLl'esults should be'equally im- sales 1963 – —'- 101,434,502 pressive, and order backlog for the normally low third quarter continues high. It is now Earnings per Sh. 1964-E 4.75 possible to estimate 1964 earnings of around Earnings per Sh. 1963 3.08 4.75 vs. 3.08 in 1963. This will constitute the second best year Market Range 1964-59 55-263/4 in the company's history, surpassed only by 1959, the year of the steel strike. During that year, in the non-strike months, D. S. steel production was considerably above current levels, and Copperweld, moreover, benefited by bel ng among the companies not struck. Thus, the company's improvement program, under which some 9 million of capital expenditures have been made in the past two years, has evidently been highly successful. At less than 11 times anticipated 1964 earnings, C d be attractive in its own right, but it now appears obvious that i pow ill increase sub- stantially in the years ahead. The reason for this 1 ase c e found in three areas of the company's operations. 1. Alumoweld – Sales of this aluminu – ted I wire con1inue to be gratifying, a1yd now amountto some-5'oItlie -tal- ume.-production has increase-dfrom 7 million pounds in 1961 to ais; pounds in 1964, and capacity.is presently available to expand 0 i The product is gaining increased acceptance in variou e t n ssion applications, especially as overhead ground wire, and future e bright. 2. Continuou tin e company's Aristoloy Steel Division is 'currently installing a continuou ca g with 300,000 tons of ammmi capacity. Since this is less than half of A oloy's total capacity, it is expected that the new equipment will be used full time. Various estimates have been made in the trade as to possible savings from continuous casting, but a conservative estimate of the savings Copperweld might enjoy from this facility would be 10 a ton or 3,000,000 annually. After taxes, this would amount to approximately 1.25 per share of common stock ap.d a 15 per ton saving would amount to 1.88. The equipment is expected to be operational by the latter half of 1965. 3. New Copperweld Equipment – The company is now testing in a pilot plant new cost reduction equipment for the manufacture of its staple product, Copperweld, or copper coated steel wire. Eventual conversion of Copperweld production to this equipment will take place as volume increases warrant. Due to increased yield, savi ngs of as much as 20 appear possible on a product with better 20,000,000 annual sales. Thus, per- shire savings' as the new equipment is i'n;talled, -could be as much as 1.75 per common share. In summary, then, Copperweld probably has at the moment an annual eam ing capa- city in the 2.51) -5.00 range, depending on over-all steel demand. To this can be added an increment of 3.00-4.00 from the three factors mentioned above. Within the next three to four years, therefore, the basic earning power of the company could be 5.50- 9.00, depending on over-all steel demand. Earnings of this magnitude could well justify the technical upside potential wh ich is in the 80 – 90 range. The stock is again recommende for inclusion in capitaJ gains accounts. Dow-Jones Industrials 825.25 Dow-Jones Rails 206.82 ANTHONY W. TABELL WALSTON & CO, INC. 1 hi lllrh(j htt.er aut. und Ilndel no c'rcumstance5 IS to he aq, fin offer to Sl'U or n 501l(llatlo')n to hu' any S(!Cuntl(1 referrl'd to h!rem The miormntJon 'ont,llned hel em 15 n,'l U to ar..cnrnc… ,lr compll'hne;g lnd 1hc tl11'lcof 15 not. and under nv I'lrC\1I11tar1('el to be construed AI, It TI'prcsenta. 11JIl hv \\-nlHlon &. Co, Inc \lJ of lire \lhJcel to challJ1c WIthout notice 'alston & Co, Inc, and Officers, Directors, and i-mp1,;'('t.'s th('rrof, )lmchasp, sell linn PH.) have U'l 1Il1.1r……llll the mentlUnt'd h('rein ThIS market letter IS mtended and presented merel as a ItcnNui, mfornml commn\ary N' ,tIl to da 1Trkct new\ and not as 8 complete a1mh-!IIs AddItional mformatlon 'llh l(',pect to any securlb('s rderted to herein fIn rllh('.\ upon rNlllest

Walston &Co ….. Inc….. Member.. New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER June 26, 1964 All three Dow-Jones averages were quite strong during the past week with the Rail average reaching a newall-time intra-day high at 213.49. The long term potential of the Rail average is, in our opinion, still considerably above present levels despite the sharp advance that has already taken place. We continue to advocate adding to rail holdings during periods of market irregularity. The Utility average reached a new 1964 high at 144. 52,but is still below the 145.21 peak reached in September, 1963. The Utility average has been in a trading shelf between roughly 145 and 135 since May of 1963, or almost fourteen months. The Utility average is selling only slightly above the 1961 high, but both earnings and divi- dends have advanced over 200/0 since that time. The technical pattern of individual utility issues suggests that the group is in the process of forming a broad base that will ultimately result in higher price levels. Whether or not this accumulation pattern is complete is, of course, not yet certain, but the group offers considerable long term attraction. The Industrial average has rallied back toward the area of the May intra-day high of 836.06. This week's high was 833.05. Actually, the industrials have shown little price action since March. Dividing the Industrial average by ten in order to bring it more in line with the actual price of the thirty components, would result in a price range since the be- ginning of March of 83 5/8 high and 79 5/8 low on an intra-day basis. Before a wide move in either direction is indicated, a broader pattern must be formed. Prior to the early June de- cline to 796.90, the downside potential was 795-785, and the upper part of this range was bout reached. This decline also resulted in about the correction of the 125-point advance from the Kennedy assassination low of eMay high of 836.06. The current advance has broadened the pattern u t e 1S 11 no indication of major move in either direction. The technical pat gs ssible upside potential f 840-850, and a possible downside potential of 785-7(1t0'.;\U w appear probable that the ndustrial average will continue in this fo)th reseeable future. One unfavorable factor at the n of the breadth index. Market breadth indicators are' not of In p;st, hav given warning signals of a the trend itself was reversed. In 1961, for instance, our breadt .nS)e a rning signal as early as August 1961 or eight months before the a tu e a . This gave plenty of time to sell individual securi- ties on strength as a d 1r upside objectives. In the present pattern, the breadth indices gave an unfavo al in late October when the average failed to confirm the 767.24 high in the Indust average. After the November break to 710.83, the breadth in- dices reversed the wa mg signal in early January and moved ahead with the averages in the Johnson Confidence Boom. Another divergence occurred early in May when the breadt indices failed to confirm the 836.06 high. The breadth indices are still below the high reach- ed in April. This indicates a policy of lightening accounts on strength and building up a 250/0- or-so buying reserve in anticipation of a correction before an advance to much higher levels in the late 1960's. There continues to be a sizable number of issues with favorable long term fundamental and technical patterns. One such issue is Swingline, Inc. (34 7/8). It has done little marketwise since it entered our recommended list last August. It is a leading manufacturer of staplers and staples. The wholly-owned subsidiary, Wilson-Jones, is the largest producer and distributor of commercial stationery and office record keeping 'materials. Despite a five-week strike 'n two Wilson-Jones plants early in 1964, earnings for the fiscal year ending August '31st are expected to reach a new high of around 2.65 a share as compared to 2.41 a share in 19621963. Last week the quarterly dividend was raised from 27 1/2 quarterly to 30 quarterly. The stock sold as high as 54 1/2 in 1961 and as low as 22 1/8 in the 1962 break. The stock ppears reasonably priced at about 13.2 times estimated earnings. Dow-Jones Ind. 830.99 Dow-Jones Rails 212.25 EDMUND W. TABELL WALSTON & CO. INC. 1 IS not, and no circumstances IS to be aI;, an offer to sell or Il solicitation to buy any lIeCUrities referred to herem The mformatlOn ('ntalned herem nnt !'unranteed as to accuracy or completeness and the fUrnl;hlll!' thereof I not, !lnd undCI no circumstances 19 to be construed as, a representa- (Hill hy \Vnlston &. Co, In( All eXll1'CSSlons of opmion are sub)cet to change Without Walston & Co, Inc, and Officers, Dlreetore. Stockholders and thereof. sell lInd may ha\c an mtcrest In the mentlOned.hereln ThiS market letter IS lntended and presented merely as a general, Informal ('(,mmontary on da) to da) market news and not as a complete analySIS AdditIOnal mformatlOn With respect to any secunt1es referred to herem will be

Walston &Co. Inc Members New YOTk Stock Exchange NEW YORK SAN FRANCISCO lOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LmER July 2, 1964 A strong mid-week rally carried both the Dow-Jones Industrials and the Rails into new high territory. At the week's intra-day high of 844.75, the Industrials were in the lower part of the 840-850 area suggested as the upside potential of the March-June base. Our ad- vice to lighten commitments on strength when upside potentials are reached, continues. Several issues on our recommended list reached new high territory or have broken out on the upside of long trading areas. Probably Pure Oil(57 1/4)was the most spectacular performer. The stock originally entered our list in January. It reached a new high of 58 this week on the announcement of a new bid for its properties equivalent to roughly 65 a share. Suggest profit taking if that is approached. With general strength in the rails, five of the seven rails in our recommended list reached new high territory. Atchison, Topeka & Santa Fe (34 3/4) and Pennsvlvania Railroad ( 35) have been particularly strong recently. The latter issue, which was originally recom- mended at 18 3/4 last August, has finally broken out on the upside of the 29-34 trading area' in which it has held since February to reach a high of 351/4. Both fundamentally and techni- cally, Pennsylvania R. R. indicates higher levels over the longer term. Earnings for 1964are estimated at 3.50 a share on a consolidated basis to include the earnings of the railroad, plus the undistributed earnings of the wholly-owned Pennsylvania Company subsidiary. Earn- ings for the railroad itself are estima ted at 2.50 a share as compared to 68 a share in 196, Book value has been estimated at over 100 a share. The most exciting long-term potential is the possible merger with New York Central which could provide estimated savings of around 70 million pretax after five years. This is, of course, a the merger may not get ICC approval. However, even on its own, Pennsylvania c d ificant earnings im- provement over the next several years. The e a ked a sound diversifica- tion program. The plan to acquire the remaining ing lOt st in Buckeye Pipe Line (Pennsylvania already owns a one-third 's a i lOt. Assuming ICC approval, this acquisition could be the start of further 'div lfication. Would continue to hold Pennsylvania and theother.railsin long term capital appreciation.- Scovill Manufacturing mended list and still appears r I since inclusion in our recomcurrent levels. Scovill was incorporated way back in 1850 s vast number of bra a 1 ' n every year of its existence. It manufactures a r cts for both industry and the consumer. New manage- ment has brought abo ism es and earnings trend for the past four years. Earnings for the twelve months e de rch 31st, 1964 were 2.93. Selling at 12.3 times earnings to it'yield 4.30/0 on the 1. 50 ual dividend, and with a book value of over 50 a share, the stock has long term appeal our opinion. The technical pattern is favorable. The stock sold as high as 40114 in 1956. Fruehauf Corp. (32 3/4) has done little marketwise for eighteen months. The price range between January, 1963 and the present has been roughly 27 to 33. Ability to break out of this trading area on the upside would be technically constructive. We believe Fruehauf has speculative appeal. Sales and earnings have been in a slow but steady uptrend since 1961. 1963 earnings were 2.37 a share and estimated earnings of 2.75 for 1964 are possible. Allowing for full conversion of the convertible debentures and full exercise of management options would bring estimated earnings down to 2.40 a share. At present price levels, the stock is selling at 12.2 times estimated 1964 earnings on a fully diluted basis. The stock yields over 4.60/0 on the recently raised 37 1/2 quarterly dividend. With labor negotiation with the Teamsters Union out of the way, order backlogs have moved up sharply and the in- creased truck-trailer demand should continue over the foreseeable future. Foote Mineral (155/8), one of the issues in the low-priced speculative category of our recommended list, has broken out of the 9-15 trading area in which it has held since early 1962. Foote is a leading producer of electrolytic manganese and lithium metal, and has a substantial growth potential. The stock sold as high as 60 in 1957. Earnings reached a high of 1.87 a share in 1955 and dropped to 22 a share in 1962. Earnings in 1963 were 50 a share and are estimated at 75 – 85 a share in 1964. The stock is an interesting long-term speculation if available at around present levels. Dow-Jones Ind. 841. 47 Dow-Jones Rails 217. 80 EDMUND W. TABELL WALSTON & CO. INC. Thill mnrket letter is not. and under no eircumstances IS to be construed as. an offer to sell or n soitcltatlOn to buy any SecUrities referred to herein The information ('ontnlIled herem IS not gunrnnteed 8S to nccuracy or completeness and the furnl9hlng thereof 18 not. and under no circumstances IS to be construed as, a representa- tIOn by \'alston & Co In,. All expressions of opinion arc subject to chanJ!;e Without notice Walston & Co. Inc., and Officers, Directors, Stockholders and thereof, sell Bnd may ha\e an In the securities mentlUned herem ThiS letter IS intended and presented merely us a general, Infflrmal comm..ntnry on day to day market news nnd not as a complete analYSIS Adthtlonal mformatlOn With respect to any securities referred to herem Will be furnio;hed upon request \\ N 301 I