Wdlston &Co. – – – – – I n c – – INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OFFICES COAST TO COASl AND OVERSEAS TABELL'S RECOMMENDED LIST January 5, 1965 This edition of our Recommended List tallies the price performance of all recommended stocks over the past year. As usual, the list is divided into three categories Quality and Long Term Growth, Price Appreciation, and Speculative Price Appreciation. Included at the bottom of the tabulation in each category are all stocks on the list on December 31, 1964 which were removed during the year 1965. Thus, the list below covers only stocks on our recommended list a year ago and all stocks recommended during the year. The first column shows the price as of December 31, 1964, or on the date the stock was first recommended, if later. The second column shows the price on December 31,1965, or on the date removed if the stock is not now on the list. The third column shows the percentage change, and the fourth column shows the percentage change in the Dow-Jones Industrial Average during the same time period. The tabulation speaks for itself. In the Quality and Long Term Growth section the average appreciation is 6 vs. 9 for the Dow. In the Price Appreciation, section the age appreciation is 25 vs. 9 for the Dow, and in the Speculative Price Appreciation section the average appreciation is 49 vs. 9 for the Dow. For the entire list taken as a whole the average appreciation is 29 vs. 90/0 for the Dow. These summaries are, of course, not meant to imply that such results could have been obtained by purchase of issues in the recommended list, or that similar results will be obtained by purchase in the future. Commissions are, of course, not included. QUALITY & LONG TERM GROWTH Price 12/31/64 or date Recom. Alum. Co. Amer. 71 7/8 American Can 43 Amer. Tel & T. 9/7 67 Chesa. & Ohio 9/7 73 3/8 Gulf Oil 58 1/2 Inter'l Paper 6/29 31 Nat'l Cash R. 5/21 88 3/8 Radio Corp. 7/6 34 1/8 Reynolds Tob. 38 7/8 Royal Dutch 45 3/8 General Elec. 93 1/4 Norfolk & West. 132 1/8 AVERAGE Price 12/31/65 or date Removed 765/8 55 5/8 60 3/4 77 7/8 58 303/4 77 1/4 47 1/4 44 42 1/2 120 1/4 127 Change 7 29 – 10 6 1 1 – 13 38 13 6 29 4 6 Change DJIA same Time Period 5 11 7 7 11 15 5 11 11 11 7 5 9 Current Comment Buy for 102-175 Obj. 79 – Support 50 Hold. Support 58 Buy for 102-150 Buy for 63-92 Buy on dips. Obj. 72 Buy for 144-188 Hold Buy-Dips. 52 wouldind 112 Buy for 82 Removed from list 10711' Removed from list 9/27 PRICE APPRECIATION Price 12/31/64 or date Recom. Amer. Hosp. S. 6/29 25 Amer. Potash 6/29 39 Atch. Top.S.F. 33 1/8 Beaunit Corp. 37 Cenco Instrum. 1/29 29 3/4 Clevite Corp. 40 7/8 Cluett Peabody 60 3/4 Copperweld S 26 3/8 Crowell-Collier 25 1/8 Denver R. G. 21 3/8 Disney, Walt 45 1/2 Price 12/31/65 or date Removed 39 3/4 43 1/2 33 1/4 45 3/8 37 3/8 51 3/4 78 7/8 31 3/4 43 20 3/4 59 1/4 Change 59 12 23 26 27 30 20 71 3 30 Change DJIA same Time Period 15 15 11 11 7 11 11 11 11 11 11 Curl'ent Comment Hold. Buy- Dips. Obj. 60 Buy for Income Hold for 60 Hold Buy for 63 -100 Hold Hold for 52 Hold for 64 Hold for Income Buy for 100 Thill Bulletin 1'1 puhligheti (or your (onvenwnl'(' IHIII Inform,lllon ItnJ i!l,hot lin offer tn Rt'll or R .!IOhlitntlOn to buy noy lit'cuntll'S Tht' Information was obtained (.urn lII)ur'1 we b,, v,' 10 114 tdlllt.le, hut we tIn not gu.u'anti.'l' Its ac(urRC'Y Walston & Co, In(, Rnd It'! offi('crs. ducC'lors or ('milloyees may have an mteretlt m Qr pl.lrchM.'Ie lml I'll thl' ,''until! to h,h'm wt(-916 alston &- Co. Inc INVEsrMENT SANfERS MUll At fUNDS MUNICIPAL BONDS Members New York Stock bchange and Other Principal Stock and Commodity Exchanges OFfiCES COAST TO COAST AND O'liRSEAS TABELL'S RECOMMENDED LIST SPECULATIVE PRICE APPRECIATION Price 12/31/64 or date Recom. Amcr.Bosch 4/5 lS 7/S Audio Devices 17 1/s Camp. Chib. 3 13/16 Foote Mineral 16 3/4 Great West. Fin. 11 1/2 Hewlett- Packard 22 5/S Ling-Temco 3/22 24 1/2 Mesabi Trust 14 7/S Microwave Assoc. 9 5/8 Mohasco 14 l/S National Can 17 Pacific Pete 10 3/4 Seaboard W. Air 6 Universal Match 14 3/8 Varian Assoc. 13 Vulcan Mate. 17 3/S Price 12, /31/65 or date Removed 2S l/S 22 5/S 6 5/S 23 11 3/S 3S 7/S 4S 1/4 14 5/S 21 1/2 25 1/2 26 1/2 10 5/S 14 20 5/S 26 5/S 21 3/S Amer.Metal Pr. Amer.Rad. S. S. Braniff Air. Intern'l Packers Raytheon Co Reeves Bros. Spartans Ind. 1/29 Sperry Rand AVERAGE 19 l/S 20 3/S 27 3/4 10 7/S 21 1/2 22 1/2 19 1/s 13 7/8 25 20 7/8 35 10 1/2 37 26 44 12 Average All Stocks 0/0 49 32 73 37 1 72 97 -2 123 Sl 56 1 133 43 105 23 31 2 26 -3 n 16 130 – 14 49 2f3 0/0 Change DJIA same Time Period 9 11 11 11 11 11 S 11 11 11 11 11 11 11 11 11 Current Comment Buy-Dips. Obj. 50 Buy for 30-40 Buy-Dips – Obj. 10 Hold for 29 Hold Buy-Dips. Obj.59 Hold Buy for Income Buy for 40-52 Hold for 29 Buy-Dips. Obj. 50 Hold for Long Term 'Hold for 20 Buy for 2S-57 Hold Hold for 2S 2 2 3 7 7 3 5 6 9 Removed from list 3/29 Removed from list 3/29 Removed from list 3/1 Removed from list 10/11 Removed from list 10/11 Removed from list 3/1 Removed from list 12/6 Removed from list 5/3 9 Thill HullriJn III Ilubli..hul lor yOU! ,,),v.I1I,'n,',' .,nd ,nfrllMllOll lind Ib not lin offl'r to .,tll or R snillllltulIIlo hu' ,10) unl,ul ,h.,lu……d. Thl' IIIrn,m.,t,on wall obuun(,'d rrom 'IOurtl'., Wl' 1)01,1,,. I ,.1,1111., deo nut J!u.,i.nnh-., iL a,.,u.,u,'y WAh-tnn & Co. In .111.111-. ..fhn .., ,II.rtOlN 01 ,'mlu)t'l'l mlly have an .nwrest In or IJurl I 11.1 -,,11th. – Ullt\! \ rl ..I lo ht-rl'ln WN-916

Walston &Co. – Inc –….;.– FIt. E Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO 01-' OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER January 8, 1965 Technical market action appears to be following the expected pattern. The downside indication of 855-845 in the Dow-Jones Industrial Average was reached at the December 15 intra-day low of 850. 19. At this point, our short term indicators became oversold and suggested the end of the decline from 897.00 intra-day high of November 18 and the start of the traditional year-end rally. The potential base pattern formed since the decline sug- gests a technical upside potential of 884-910. An intra-day high of 888.62was reached on Friday. The short term technical indicators that reached oversold territory in December have not showed an overbought condition, but could do so shortly. Barring unexpected un- favorable news developments, the Industrial Average could reach new high territory by a relatively small but would not the present rilove-to be fhe start of a broad advance. For intermediate term investors we would continue the policy of building up a 250/0 cash reserve on strength. Despite the lackluster nature of recent trading sessions a number of stocks on our Recommended List have turned in a consistently above-average performance and moved into new high territory in recent weeks. Many of these stocks still appear attractive for long term hOlding. The outlook for a few of them is reviewed below. Hewlett-Packard (23 5/8), w'tich is on our low-priced speculative list, recently attained a new 1964 peak at 24 3/8. This is hardly newall-time high territory for the stock, however, since in 1961 it sold for 53. In that year it earned 53 and thus, at the high, sold for an even 100 times earnings. The rationale for this ridiculous situation at the time, of course, was that Hewlett was a growth stock. So it has the 53 level three years ago, earnings have moved ahead to a record 78 on w pe ks in the year ende October 31, 1964, and could well be in the 95-1. 0 th 5 fiscal year. At 30 times current earnings and 24 times estimated ,this world's largest producer of precision electronic or further purchase. Since 1963 the stock has swung back and tI and eventual upside penetration would indicate-40 followed h. the the-growt it has shown in recent Other stocks in our 10 of attainment. . d st'ba've also done well in recent markets. Vulcan Materials (18 1/8), f r a ved to a recent peak of 18 3/8, but this price ad- vance hardly app t arnings improvement shown by the company which, under an extensive 1 rogram, has increased earnings from 82 in 1960 to an estimated 1.75 for ggregates, concrete, and similar building rna terials account for the majority of s ,but heavy chemicals and metallics have been growing rapidly and have become increasingly important in the over-all profit picture. The stock continues to have a long term objective of 28, with support in the 15-14 area. In our medium-quality price appreciation list, a number of stocks have also turned in good recent performance. Cluett Peabody (61) should show another good earnings gain this year with results above 4.00 vs. 3. 50 for 1963. A broadened line and the addition of retail store outlets are proving helpful, and the Clupak process continues to have long term promise. Scovill Manufacturing (38 5/8) has turned in an excellent earnings record in a highly competitive field, and 1964 results should be at 3.30, up from 2.68 for 1963. Aluminum operations are being expanded rna terially, and even with the stock in new high aterritory atthe-38-39 level, the 1.-75 dividend supplies generous yield. The stock con- tinues to have a long term price objective of over 60. International Minerals & Chemical (41 1/2) has been on our Recommended List since December, 1960, when it sold for 16, adjusted for the recent 2 for 1 split. Earnings for the year to end June 30, 1965 could show another advance, probably to somewhat above 3.00. The Esterhazy potash operation continues to exceed expectations and r.as recently been expanded. Meanwhile, work on an entirely new shaft at Esterhazy continues. We would continue to hold for an upside objective of 45-50. Dow-Jones Ind. 882.60 Dow-Jones Rails 208.06 EDMUND W. TABELL WALSTON & CO. INC. Thlb murket letter IS not. and under no circumstanc('S IS to be Construed as, an offer to sell or II. SOllcltatlon to buy any securities referred to herem. The mformatIon contamed herem 11 not guaranteed as to accuracy or completeness and the furnishmK thereof IS not, and under no Circumstances IS to be construed. 85, 8 representa- tIOn by Walston & Co, Inc All expressIons of opIniOn ar1,l' subject to change 'Ithout notlce Walston & Co, Inc. and Officers, DireetofiJ. Stockholders and thereof, purchase, scll and may have an interest In the securttl()fi herem ThIS !arket letter IS intended and presented merely as a general, mformnl commQntary on day to day market news and not as a eomplcte analYSIS Additional mformatlon With nlSpcct to Lny securitIes referred to herein will be (urnt;hcd l!pQn request WN JOI

Walston fTCo. …;…-,;..;.;;..;..,;; Inc. j; I L Member8 New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO oFFICES COAST TO COAST AND OVEISEAS TABELL'S MARKET LEnER January 15, 1965 Current Price 42 Current Dividend Nil Current Yield KORVETTE (E. J.) INC. What is Korvette Such a question is certainly a peculiar way to begin a stock recommendation but, it seems to Long Term Debt 30, 925, 444 us, the question must be answered if one is to ap- Common Stock 4,274,456 shs. preciate fully the growth potential of this unique Sales – 1964-65-E 600,000,000 Sales – 1963-64 485, 2.60, 000 Earn. Per Sh. 1964-65-E 2.25 Earn. Per Sh. 1963-64 1. 58 l\1Ikt. Range 1965-62 – 57-215/8 company. There are many possible answers. To, begin with, Korvette is a retailer. If pressed furo ther,most.investors would say.that iLwas a discount house. This, however, is not true, at least not in terms of what discount house is usually taken to mean. Nor is Korvette a traditional department store operation, although it has taken on many aspects of such an operation. Perhaps the most accurate way of describing Korvette is to say that it has been, in the past decade, the prime innovator in a still continuing revolution in which the so-called discount house was an important but perhaps transitory phase. Prior to World War II, Arne rica's leading merchandiser was the department store, located in a centralized downtown area and stocking a broad line of all types of merchandise. The mark-up had to be relatively high and customers were not by price but by con- venience. At the end of the War, the more aggressive their customers to the suburbs. High mark-ups, how)p6er, e t re operators followed e ment store vulner- able, especially in the hard goods and appliance r s . this gap in their de- fenses that Korvette led the discounters in the e traditional weapon of the discounter was price, and to achieve this he uteM ervice, plain stores, and a narrw line of merchandise at first r str' I ard goods. Other changes institu- ted by the included-aggressive 'costand-inveritory contZQI and efficient Many ho ses c ealso one of the first to 11 i at this point. Korvette did not. It was scount concept could be broadened to include a full product line, inclu . othing, etc. Nor, indeed, was there any reason why the discount house shoul ur d with poor c;ervice, unattractive stores, and unimagina- tive displays. Since 19 1 Korvette City stares have been opened. These all include a broad line of merchan e ranging from appliances through clothir.g to furniture, auto equip- ment and groceries, are attractive and modern in the extreme and are still able to compete down the line on a price basis. The consumer is being served better than ever before and at lower prices. The success of Korvette's merchandising philosophy has been obvious and dramatic. In 1950, Korvette had one store with sales of 2 million. For fiscal 1964-65, sales will be over 600 million. Even more amazing, the greatest part of this growth has been financed internally. Yet, since 1962 it has been somewhat of a lackluster performer marketwise. The ostensible reason for this. is to be found in profit margins which have been in .an almost steady decline since 1961. If the decline in profit margins had been due to inefficiency, it would be one thing'-o-butJt.was.reallyadi-rect product of the company's growth.-Each new store has carried with it heavy start-up expenses and, as the size of the stores have grown, this expense has become even more burdensome. There are signs that this phase in Korvette's history may be passing. Start-up ex- pense will continue in 1964-65, but relative to sales will be lower than in prior periods. Some improvem ent in margins, along with the sales gain is looked for. The recently voted acquisition of Hill's Supermarkets will lend management strength to the disappointing grocery set- ment of the Korvette City operations, and with margins increasing along with sales, per share earnings could move ahead to 2.25. From a technical point of view, the stock has an upside objective of 60 to 80 over the long term. It is again suggested for inclusion in capital gains accounts. Dow-Jones Ind. 891. 15 Dow-Jones Rails 212.93 ANTHONYW,TABELL WALSTON & CO, INC. ThIS market letter IS not, and under no circumstances IS to be construed as, nn offer to.II1I or a Hollcltation to bu)' any securttles referred to herein. The information t d h in is not guaranteed as to accuracy or completeness and the furnishing IS not, and under no circumstances IS to be construed as, 8 repreaenta- b8 nc W &. Co Inc All expressions of opmlOn are subJect to chanltc wlth;)ut notice Walston & Co., Inc, and Officers, Directors, Stockholders and sell and may have an Interest In the securities herem. ThiS 18 mtended and presented merely 88 a general, Informal on day to day market news and not aA a complete analYSIS Additional information With respect to any seCUrities referred to herein furnished upon request

Walston &- Co. INVESTMENT BA-NK-ER-S — MIUnTUAcL FU-ND-S – -MU-NICIPAL BONDS Members New York Stock Exchange, Chicago Board of Trade and Other Principal Stock and Commodity Exchanges OfFICES COAST TO COAST AND OVERSEAS lABEll'S MARKET lETTER January 22, 1965 The year-end rally which had moved the Dow-Jones Industrials ahead from their December 15th low of 850. 19,- came-to -at least a temporary halt on Tuesday as the index reach ed an all-time intra-day peak of 902.10. Over a week ago a number of our short term indicators had become overbought, and some of the less sensitive of these indicators also moved into overbought territory early this week. Since the prior base pattern had suggested an upside potential in the 884-910 area, the loss of momentum in the latter part of last week was less than surprising. It is, of course, possible that another attempt may be made to move deeper into the area mentioned above. The subsequmt forma tion of a new pattern will afford a clue as to the course of the marketJrom.this pOint., , It is, in our belief, generally unwise for the average investor to attempt to interpret for himself technical indicators. Technical analysis is a complex and demanding art and is best left to the professional. On the other hand, there is no reason why the individual in- vestor should not be able to formulate for himself some approximation of the technical be- havior of the stocks he owns and in which he is interested. The investor is, in most cases, constantly following the price behavior of the stocks in his portfolio. It is not too difficult a task for him also to watch the behavior of these stocks relative to the general market. This is the concept of rela tive strength and, as used by this department, involves detailed com- puter analysis of the mathematical behavior of stock prices. The same principle, however, applies to the determination of approximate relative strength by simple observation. For example, the Dow-Jones Industrial Average reached a high of 897.00 on Novembe 18, 1964 and exceeded this high by a moderate amount on this week. Yet, as could be expected, the behavior of Individual stocks in the r ite different, some being higher in November, some in January. I, for pIe, sold at 97 1/2. on the day the average made its January high vs. 89 nt e of the November high. By contrast, International Harvester, which at /4 ovember 18th, closed at 807/8 on January 19th. Since the averages e pro' tely the same on the two days, it follows that General-Electric was Harvester considerably a etter than-the average and Internatio 'a.1Jtu dt1fcult for the individual investor to take tw time periods such as October- v when the average sold at the same approximate c r' of his holdings on the two dates. Such a compar- ison might give ho r a,ll,t 'stocks, for example, some pause. General Motors, Chrysler and Ford s a'r- 02, 67 and 62, respectively, in the October- November period, and the best th y h een able to do in recent markets is 98 1/2, 62 and 55, res- pectively. Similar acti as been shown by most rail stocks. Atchison, Topeka & Santa Fe, for example, was 37 in November and 34 1/2 recently and Southern Pacific was at 44 vs. 41 and Union Pacific at ,47 vs. 44, Sometimes there will be variations within industry groups. Standard Oil of California has sold above its November high, Standard of New Jersey has not By the same method, it is possible to pinpoint stocks that are acting better than the market. One indication of the excellent technical action of the airlines is the fact that East- ern recently sold at 48 vs. a November high of 41, and National at 70 vs. a November high of 60. Drugs and electronic stocks have recently given favorable indications by exceeding, on the recent rally, their November highs. Of course, a comparison of this nature should only be a first step, not a rigid method of making investment decisions. 'For ex-mple, mentioned above, both automobiles ald rail stocks have failed to exceed fheir November-highs. In reality, the technical patterns of the two groups are quite dissimilar. Automobiles are showing declining relative strength at a time when all upside objectives have be,en reached. ,ails, on the other hand, although act- ing poorly on a short term basis, have declined back to strong support levels and have up- side obJectives, for the most part, considerably above their present prices. This makes many stocks in the group attractive candidates for purchase on weakness. Provided their importance is not over-exaggerated, it is probably worth the investor's while periodically to make relative strength comparisons such as these. They can then be used as warning signals to check further into the technical and fundamental progress of the stocks in his portfolio. Dow-Jones Ind. 893.59 Dow-Jones Rails 212.09 ANTHONY W. TABELL WALSTON & CO. INC. 'ThiS market i('tter IS not. and under no Clfcumstll.nces IS to be construed us an oITer to sell 01 a sohCltatlOn to huy UIIY secuntles referred to herem The information contamed hereil'lls not as to accuracy or coml)letenec;s lind the fUfmshm),( thereor not. and under no Circumstances IS to be construed as, a l'cpre;cnta t b W lston & Co Inc All expreSSions of OPllllon arc sublctt to chan),(' wlthollt notice. Walston & Co, Inc, and Officers, Directors, Stockho'lders and athereO! sell and may have un wterest m the secuntle. mentuHled herem 'fhl!. market letter IS Illtended and presented merely as a general, on dn; to mdrket neWS and not as a complete naIY!!I! Acllhtlonni Information wlth lesllecl to an) secuntles referrei to herem furnlshed upon request —.—-

Walston &- Co. Inc INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Stock Exchange, Chicago Board of Trade and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS EDMUND W. lABEll'S RECOMMENDED L1Sl QUALITY & LONG TERM GROWTH Amerada American Can General Electric Gulf Oil Close 1/27/65 84 3/4 44 97 3/4 59 1/2 Qual- A B-1A A Comment Hold Buy BUlondiPs. Ho d Close Qual- 1/27/65 J.!L Comment Norfolk & W. 136 A Buy on dips Reynolds Tab. 40 3/4 A Buy Royal Dutch 47 1/8 A Hold PRICE A PPREC IA TI ON Close 1/27/65 Atchison, Top. 33 1/8 Beaunit Corp. 37 7/8 Cenco Instrum. 29 1/4 Clark Equip. 50 1/8 Clevite 41 1/8 Cluett, Peabody 64 5/8 Copperweld Steel 59 1/2 Crowell Collier 28 5/8 Denver, Rio G 21 Disney, Walt 48 Eaton Mfg. 45 1/2 Elec. Star. Bat. 50 1/4 El Paso Nat! Gas 23 1/8 First Charter F. 22 1/4 Fruehauf Corp. 31.1/8 General Dynamics 37 1/8 Illinois Central 52 1/2 Intern'l Min. Chern. 47 1/8 Kansas City So. Ind. 43 3/4 Koppers Co 59 Korvette, E. J. 43 1/4 Qual- AB B AB-1B-1B B B-t B B AB B B AAB B Close Qual- Comment 1/27/65 ity Comment Buy on dips. Lykes Bros. 23 1/ 2 B Buy Buy McDermott 40 1/2 B Buy Buy McGraw Ed. 52 7/8 A- Buy Buyon dips Metromedia 38 1/8 B Buy Buy on dips oJMidland – Ros s 39 7/8 B Hold for 46-5 2 Buy on dips Newmont Min. 45 A- Hold Buy on dips No. Amer. Car 29 7/8 A Buy on dips Buy on dips Rayonier 42 3/8 B Hold Buy Reynolds Met. 33 7/8 B Buy Buy on dips Riegel Pape r 43 1/4 B-1- Buy on dips Buy on dips Schlumbe rger 75 A Buy on dips Buy Scoville Mfg 41 5/8 B Buy on dips Buy on dips Shell Oil 60 3/8 A Buy on dips Buy Signode Corp 28 A- Buy Buy Southern Rwy 58 7/8 B Buy on dips Buy Stevens, J. P. 45 1/2 B Buy on dips Buy on dips Storer Broad. 48 3/8 B Buy on dips Hold Sundstrand 21 5/8 B Buy Buy on dips Swingline A 41 1/2 B Buy Buy United Fruit 17 1/2 B Buy Buy Varnado 33 Buy LOW-PRICED SPECULA TIVE Close Qual- Close Qual- 1/27/65 ity Comment 1/27/65 ity Comment Amer. Metal Prod. 23 5/8 B Hold Mohasco 16 114 B Buy Amer. Radiator 21 5/8 B Hold National Can 17 3/4 B Hold Audio Devices 10 3/8 B- Hold Pacific Pete 11 1/4 B- Buy Braniff Airways 28 5/8 B Hold for 35 \AlRaytheon 23 5/8 Buy Campbell Chib. 4 1/4 Buy as spec. Reeves Bros. 24 3/8 B Hold for 26 Foote Mineral 18 5/8 B Buy Seaboard W'ld Air. 6 5/8 C Hold Great West Fin. 9 7/8 Buy vP Spartans Ind. 19 1/8 Buy Hewlett Packard 24 3/8 B-1- Buy Sperry Rand 14 1/8 B Hold Intern'l Packers 11 3/4 B Hold Univ. Match 14 5/8 B Buy 'v Mesabi Trust 14 5/8 Hold for inc. Varian Assoc. 14 1/2 B Hold Microwave 9 3/4 B Hold Vulcan Mat. 19 3/8 B Buy on dips January 27, 1965 This lhlilcttn nul nn.untlcr no Cll tl11nslanccs tu be constrtled a'o, an ..freL to 01 a o;nltcLtallon 10 blty IIny Heculltlell referl ed to herem The mformatlOn con tn1n('d herem lit l!unr,mtced as 10 nccura('y or complctenes… nnd the rUI nhhtn)! theLeof IS not, and undel 11 CIrcumstances IS to be construed as, II representatIOn by & Cu, Inc All (Xl,rl'!!!Jnq of OplnLOn ale subject tu chall!!e WIthout notl('l! nhllun &. Co, lfir, Hnd Offlccrs, DiretOfS, Swckholders and Employe(!s thercof, !,ulcitn'\c. o;ell nnd may have nn III the seCUrttLes mcnlwnc,l herein Thl, Bulletm IOJ mtend('d and presented m(reiy as mformal corpm(n- tary nnd not n… n comillete analYSIS AddItIOnal Informn\lon \\ Ith 10 nny SeCI.Illlte referred to herem Will be flu nlshed \lpon request, WM-916 –

TABELL'S &CO. – Inc INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Stock Exchange, Chicago Board of Trade and Other Principal Stock and Commodity Exchanges OFFICES COAST TO CO….ST AND OVERSEAS MARKET LETTER January 29, / J..-e 1965 It is difficult to say whether or not the market attached any significance to the breaking of the so-called 900 barrier this week. Actually, on an intra-day basis, the Dow-Jones Industrial Average exceeded 900 ten days ago. On Wednesday of this week, 900 was exceeded at various times during the day, but the final close was below this figure. Once the average had actually closed above 900 on Thursday, however, Friday's rally to an intra-day high of 907.79 took place on good volume. The averages have reached the upper part of the 884-910 range, which this letter has continuously suggested was the upside potential of the.lI1ov.E'C.Wear.ecagain..in the situation, not over thepast-year, ;'here -a new pattern will have to form in order to determine the extent and direction of the next move. It is, therefore, im- possible at this point to offer a short term projection. Our feeling for the intermediate term is best expressed by quoting from this letter as of January 8th, 1965. At that time we said – The potential base pattern….. suggests a technical upside potential of 884- 910…… Barring unexpected unfavorable news developments, the Industr.ial Average could reach new high territory by a relatively small amount, but we would not expect the move to be the start of a broad advance. For intermediate term investors we would continue the policy of building up a 25 cash reserve on strength. The latest edition of our recommended list is in the hands of your Walston Account Executive. Cenco Instruments (29 3/4), reviewed below, has been added to the Capital Appreciation list and Spartans Industries to list. It will be reviewed shortly. U. S. Plywood, which at its recent high d d.potential, has been dropped. r ached its 50 upside A recent magazine article by the eminent that education has been our chief 'growth greater expansion foresee'!..2vjCr similar thoughts, and this c.oncern h 0 companies serving the D er, made the statement MhJ st twenty years. An even .nyopinion-rgakers mto the stock market where stocks of been market leaders. One of the mo t mpanies, in our opinion, is Cenco Instrument Corporation, so 6 e es stem from the sale of scientific teaching aids, laboratory instrum d sc' ific equipment for educational use. Cenco sells over 15,000 items, manufa some relatively sophisticated items and acting as distributor for such things as gla are and chemicals. It is the major factor in this area and has only one important competitor. A special sales force with excellent contacts in the educa- tion field seems to assure its market position. Nor is education the only growth area in which Cenco participates. It is an important producer of scientific instrumentation, high vacuum pumps and engineering apparatus. Recently the company has moved into the burgeoning hospital supply field. T!Ji.s last has in recent years been somewhat less profitable than the company's other activities, but recent developments indicate that this problem may be solved. Cenco, selling for 24 times estimated 1964-65 earnings (the fiscal year ends April 30th) of 1. 20, is not cheap, but also the company's excellent growth potential as well as its growth record is unusual. .Both sales and earnings have increased in- every year over the past ten. Estimated 1964-65 results will compare with prior years' earnings of 1. 01 II and sales should increase to 50 million vs. under 45 million in the previous period. Such growth is usually not bought cheaply. Cenco's 30 dividend annually provides a relatively small yield, but it is interesting to note tha t the payout has been increased eight times in the past ten years. From a technical point of view, the stock has an upside obJective of 39-42, and it is suggested to investors interested primarily in capital growth. Dow-Jones Ind. 902. 86 Dow-Jones Rails 212. 78 ANTHONY W. TABELL WALSTON & CO. INC. ThiS mllrket et!r IS not and under no IS 10 be 11. 'ltl ff… to u, .\ ,,Ollciw.thlll tu hu) seem Icfl'lfCd to herem The InformatIOn contained hereiil IS not as to or LUnlpJetenC1I5 alld the furnlblnng- thetcur Ib not, !'Ind undel no CltcutllstnJlces IS to bc construed n r,ePreo.enln- hon by WaJstcln & (;Q, Inc All epressions of opinion are to chltll!c \\Ithuut nOtice, Wal!ton &. Co, Inc, IIn.l Olfu'en, Dlrcctols, and thereof, purchase, sell and may hu\c un IntereSt In the mentioned herein Ihls mnrket letter Ii Intended anti pre(!nted merel), a Informal commentury on day to rlay m.lrket news 1I0t as n complete analYSIS Addltlnll.11 IIlfOI mallOn \\Ith lC'.o\-lcct to any !CCUrltl.''l referred to hctelll furmshed upon request. ..-

Walston &Co. – INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Stock Exchange, Chicago Board of Trade and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OveRSEAS TABELL'S MARKET LETTER February 5, 1965 – 'SPARTANS INDUSTRIES. INC. Current Price Current Dividend Current Yield 21 The stock market has always been eager to reward success, Companies with well-defined records of growth tend to sell at more generous multiples of earnings than those subject to cy- Long Term Debt Common Stock Sales 1964-65 E Sales 1963-64 5,250, 125 1, 826,780 shs. 145,-000,000 134,620,000 clical fluctuations. Conversely, however, the market is equally quick to become disillusioned, and when a highly regarded company suffers -temporary the reaCtion-'is often severe – – – in many cases far out of proportion in magnitude to the difficulties. This appean Earn. per sh. 1964-65 E Earn. per sh. 1963-64 1. 60 1. 37 to have been the case with Industries. From 1954 until 1959, Spartans had carved out for itself a brilliant record in a highly com- Mkt. Range 1965-61 51 – 9 3/4 Partially taxed. petitive field. This was in the era of the greatest growth for the discount store, and, concurrent with this growth, there occurred a sub- stantial increase in sales of popular-priced, private-label clothing marketed through discount houses and variety chains. In this area, Spartans created a magnificent rose from 17 million to 39 million, and net income fro 3 and 1959 its sales tEi 2, 260, 000. In early 1961, with this record on the books, Spartans so ia 1/2. Then, in 1960, a decision was made which r y at least, to be disas- trous. Highly successful as a seller to retailers, self. It did SO in an almost headlong fashion. Tn d into the discount field itlittle 'more than two years it hld. discunt put an almost impossible strain on th 0Wny -r. toul'LmoCITeinto ,an unfamiliar field Management was thinned and the situation was made worse discount industry. To add to the com- pany's sharply on orders fo rtie move into competition with them, cut back Thus, by 1962, although sales had increased to 116 million, the c ''I deficit of 98 per share and the Rtock sold as low as 9 3/4. I The cliche about n eping a good man down, however, applies also to companies. By 1963, pre-tax inco had returned almost to its 1959 high, and net, with the benefit of a tax credit seta new record. For 1964,fiscal year ended January 31,1965) per share earn- ings could hit a new high of close to 1. 60, fully taxed, vs. 1. 37, partially taxed,in the previous year. Moreover, there appears to be considerable room for further improvement. Manufac- turing customers lost when Spartans moved into the discount field have returned,and Spar- tans has been forced to expand its manufacturing operation. Manufacturing sales, estimated at 60 million last year, could move close to 100 million by 1966. Further more, the leverage inherent in improved retail profit margins is large. Currently, the re- tailing operation has just this year gone into the black. If profit rna rgins in this division were brought to the 3 -.5'1'0 pre-tax level prevailing in the indUstry, earnings would increase considerably. Combining the sharply increased manufacturing volume and improved profit margins in the retail segment of the business, it is' not too hard to see earnings at twice current levels by 1966 or 1967. All this seems to make Spartans, recently added to our low-priced list, an attractive speculation. Technically, the stock recently broke out on the upside of a substantial base ormation with a longer term objective of 36. There is support just under current levels. Dow-Jones Ind. 901. 57 Dow-Jones Rails 210.98 ANT HONY W. TAB ELL WALSTON & CO. INC. n IS to be contrlll'd at, an uffer to !'eJl 01 a soliCitatIOn to buy any securatles referred to hereIn The Thu; market Jettel 1 not, and under no Cell !Inri the furnlthllll! thf're.,f IS not, and under no Circumstance;, IS to be construed as, n representn. contnmed her-ein is not guaranter as to accuraci or arc subject to ch UII!C wlthont 110tlce. Wnlston & Co, Inc, and. Officers. DIrectors, Stockholders Ilnd liOn by Walatn & Employl'es thereOf, Co, Inc Ilurchase, AI sell and mlY thav0e opm an crcst In as n thc complete mentIOned hercHl ThiS market leller mtended and presented merely as a general. nnnIY'I, AdtiltHmnl InformntlOn wlth I espect to any securIties rerci red to herem ,,11 be Informal COn'UTlentnry on day to dny rn1I.rc news all \\ N JOt iurnll;;h('( upon request

Walston &Co. IL e INVESTMENT BANKERS MUTUAL fUNDS MUNICIPAL BONDS Members New York Stock Exchange, Chicago Board of Trade and OtherP.rincipal Stock and Commodity Exchanges tc OFFICES to COAST AND OVERSEAS TABELL'S MARKET LETTER February 12,1965 Last week's action, while dramatic, was not particularly significant. At February 4th high of 911. 80, the Dow-Jones Industrial Average had reached the 910 objective repeatedly mentioned by this letter over past weeks. The dip to Thursday's low of 879.97 constituted a normal one-half correction of the move to that objective from the December low of 850. 19. A new pattern must now form – probably in the 875-900 range. Similar action occurred many times in 1963 – 64 and, previously, it has always been followed by formation of a base and a move to new highs. This process cannot repeat itself indefinitely. At some point strength will fail to follow through, and the result will be the formation of an intermediate-term top. Thus, the action of the next few weeks will be critical in assessing the intermediate-term pattern. '1 – – ' – — – – – – -0……00- – ME TROMEDIA/INC. Current Price Current Dividend Current Yield 39 7/8 .70 1.80/0 The task of the security analyst is often difficult. It falls to his lot to analyse a variet of companies in different industries with dif- Long Term Debt 3 12 1/2 Conv. pfd. Common Stock Revenues – 1964 Revenues – 1963 37,000,000 32,000 shs. 1,855, 327 shs. 91,926,000 60,000,000 ferent markets and with different operating problems. Nowhere does this difficulty become more acute than in the analyses of com panies selling services rather than goods. In a service company, an entirely unique set of rules applies. Earn. per sh. 1964 2.55 (preliminary) This reason for the mar- Earn. per sh. 1963 2.13 ket's failur 0 Metromedia, Inc., Mkt. Range 1965-64 43 1/2 – 27 1/2 a 0 of stations,radio sta- Capitalization as of Dec. 1963 includes tios, la st figure in outd.oor adver- 4,512,000 Debs. convertible into com- pany has grown rapldly over mon at 16.67 a sh. and preferred convertible – as years, largely through a series isitions;financed'mainly by debt.- It ' Excl. Spec. credit 1. 66 – increased its revenues in every year \\. since its formation in 1955, and with the ex- ception of one inception. Despite 1 S S net income and cash flow in every year since its current price it is selling for some sixteen times 1964 earnings and just ove e n t s 1964 cash flow. The cash flow concept' n important one. In a manufacturing company cash flow has little significance, sin arge portion of the cash generated must go to replace fixed plant expense. In a service wdustry, however, the assets are largely intangible. The ability to gen- erate cash throw-off becomes the trade-mark of a successful management, and in this area Metromedia's management has shown an excellent record. Under FCC rules, the company is limited to the number of stations it can own and operate. In this environment, however, it has shown an excellent ability to trade-up, i. e., purchase properties, improve their operating results and resale, using the proceeds to move into lar- ger metropolitan areas. An example of this would be the recent profitable sale of a Sacra- mento TV station for 8 million, paving the way for possible repurchase of another station in a larger area. Also, by generating cash flow the entire cost of its entry into outdoor adver- tising in 1960 through the purchase of Foster & Kleiser on the West Coast has been recovered There are, to be sure, risks involved in Metromedia. Future performance depends on man- agement's ability to Us successfuLFecQ,d. There f-ppegrs, however, to be little rea- son to doubt this ability. Another risk lies in the large amount of debt, but this is partially mitigated by the heavy cash throw-off shown by the properties the debt was used to acquire. Another weakness is potential dilution through convertible securities and warrants. This, how ever, is expected to be slow and interest saving will reduce the pressure on earnings. In other words, viewed within the context of its industry, Metromedia appears to be an outstanding speculation On the ability of a proven management to continue to better operating results. From a technical point of view the stock has an upside objective of 64 with support just under current levels. It is again recommended for inclusion in capital gains accounts. Dow-Jones Ind. 888.47 Dow-Jones Rails 208.18 ANTHONY W. TABELL WALSTON & CO. INC. ThIS market i(!ttcr IS not. and under 1'10 Circumstances II, to be construed (1S, aD offer to sell or Il solicitatiOn to l.uy any securIties referred to herein. The tnformahon contamed hereA is not guaranteedns to necurncy or completeness and the furmshlIl).! thereof 1I! not, and under no CIrcumstances IS to be construed as, a representa. tlon by Waleton & Co, Inc All expreSSIons of OPiniOn are subject to chnn)!e WIthout notice Walston & Co, Inc. and OffICers, DIrectors, Stockholders and EmployOes then!O(, purchase, sell nnd may ha\'e nn mterest In the seCUrities mentioned .hereln ThiS market letter IS mtended and presented merely as a general, informal commentary on day to day mnrket neW!! and not as a complete annlysill mformatlon respect to any securities referred to herem WI!! be furnIshed upon reQuest. \\ N J01

I Walston &Co. (iLf INveSTMENT BANKERS MUTUIAnLcFUNDS MUNICIPAL SONDS Members New York Stock Exchange, Chicago Board of Trade and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS lABEll'S MARKET lETTER February 19, 1965 At Tuesday's intra'da'yluw-of'87'''l–48, the Dow-Jones Industrial Average had re- traced Just about two-thirds of the advance from the December low of 850.19 to the Februa high of 911. 80. It is interesting to note that this decline can probably be taken to be the end of the year-end rally and thus, in 1965, the rally has failed to carry much beyond the first month of the year and, in addition, failed to advance 100/0 from the December low. This raises some question as to the trend of the market for the year. A rally at the end of the week moved the averages back to an intra-day high of 890.24 The short-term outlook will, of course, depend on what type of pattern forms at these levels. In current uncertain markets the investor will probably do best to concentrate on companies where sound earnings growth affor-ds some measureaf-market protection. Such a company is reviewed below. LITTON INDUSTRIES, INC. Current Price Current Dividend Current Yield 86 2 1/20/0 stock The technique of diversification by acquisition is hardly an unfamiliar one in American corporate annals. However, as many in- Long Term Debt 147,474,000 vestors in acquisition-minded companies 3 Conv. Pfd. Common Stock 539,925 shs. 10,817,235 shs. have learned to their sorrow, the merger route is often fraught with pitfalls. By con- Sales – 1964-65 E Sales – 1963-64 950,000,000 686, 140, 000 trast, it dustries h to say that Litton Inb reader among all Am s i s ing the manage- Earn. per sh. 1964-65 E 3. 35 n s to successful growth Earn. per sh. 2. 70 Mkt. Range – 1965-63 86 1/2-54 -f'\\by aci'Lu'1Aitio ,on;' pIe will' suffice. In the past itton has acquired a multiplicity of Note Debt iricludeS'73 enteriYiises;'yet iri195'7-Littori'f; sales Preferred convertible into the sales of all companies it has since for share. acquired, were under 80 million. For the ;;. year ended July 1964, Litton sales were 686 million. Obviously,' llag' acquired companies – it has caused them to grow and prosper under its ae Particular mana lent sktlls probably account for a gOOdly portion of this record. Another factor may b he fact that Litton-acquired companies generally dovetail one way or another with existing Litton operations. For example, let us consider two major acquisitions shortly to be consummated. The acquisition of Royal McBee will albw the integration of that company's typewriters 3nd office form business mto the sales organization of Litton's successful business machine operation. The takeover of Hewitt- Robins places Litton in the materials handling field and ma terials handling and processing systems utilize the com- puting and controls technology which Litton already possesses. Litton, as put together over the years, now consists of five major groups. The sys- tems group is a leader in a broad line of aircraft guidance systems. The business machine group manufactures and sells Monroe calculators, adding machines and accounting machines Sweda Sales registers, plus pap.ersteel office equipment andspecial purpose.computers. The components group produces electronic equipment, some of goes into Litton's own systems, and the marine products group currently has a 300 million backlog, including four nuclear submarines. The industrial and professional equipment division has as its major areas of activity seismic exploration and aerial mapping. Litton has increased its per share earnings in every year since 1955. Results for the year ended July 31, 1964 were 2. 70 a share and for the six months ended January 31, 1965 were 1. 58 vs. 1. 24 in the prior period. For the full 1964-65 year an advance to 3.30 3.40 per share is expected. Acquisition of Royal McBee and Hewitt-Robins will probably bring Litton's 1964-65 sales fairly close to a billion dollars on a pro-forma basis. From a technical point of view the stock has a longer term upside objective of 128 an shows excellent relative strength. It is recommended for purchase in capital g'ains accounts. Dow-Jones Ind. 885. 61 Dow-Jones Rails 210.37 ANTHONY W. TABELL WALSTON & CO. INC. Th'h market letter not linn under I1U I' t he Ull ffel to I ., 01,(.11.11'11 to 1m) an) se(.untl(''' ccr, cd to hcrCII\ The informatIOn (lIHnined herein is not to H(CurUO or '1lld the fUllllhlllll- Ihclc.. r 10. lint and lIndcl 110 (I.cum.tan'cs to hc ,ol\J;trued n repr!!1;entn- hon by \VaJ9tQn &. Co. In' All CXIJrCSSlOllS uf opinion !.IC uhJc t tn (h,lIl-' \\ Ithut lIotl(,', \Vnlston &. Co, hI'. 311 QlTlcer. Director. St()('kholdelS nnn F.mpioyl'es thereof. purch\\,,,. nn,lmuy h.ne nil III the mcnhnc, helCIl! fhls mnrkel lettcr!!o Intendcrl and merl'1y 11 'l gl'IICral, mformul cotl'ln1cntllry d.\y to day marhet lind lI)t a (umJlI('tc A,\,lrtln.d IIlfmmatln With to any C('lIlllles .fcned to hercln \\i!l he CUI nighed upon request \\-. 101

Walston &Co. INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Stock Exchange. Chicago Board of Trade and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS EDMUND W. TABEll'S RECOMMENDED LIST Instead of Comments, this edition of our Recommended List gives long term technical upside objectives and indicated support levels in cases where such levels exist. An asterisk in the Upside Objective column indicates either that the objective is unclear, or that the stock has not yet broken out ofdts ,base formation. Amerada Amer. Can Gen'l Elec. Gulf Oil QUALITY & LONG TERM GROWTH Close Qual3/1/65 itl 79 1/8 A 42 7/8 B 98 1/2 A 56 1/4 A Upside SupObj. port 108-150 – 130 , 66-92 50-48 ClOr Qual3/1 65 ity Uo/bjs.ide Norfolk W. 132 1/2 A 155-170 Reynolds Tob. 40 1/8 A Royal Dutch 46 7/8 A 52-86 Support 125 41-39 PRICE APPRECIATION Close Qual- 3/1/65 J!L Amer. Met.Pr 25 7/8 B Atchison Top. 33 1/8 A- Beaunit Corp. 40 B Cenco Inst. 32 1/2 B Clark Equip. 55 3/4 A- Clevite 45 1/8 B Cluett, Peab. 68 5/8 B Copperweld S. 60 B Crowell CoIL 30 5/8 B Denver, R. G. 20 3/8 B Disney, Walt 56 3/4 B Eaton Mfg. 46 1/2 B Elec. Stor. B 48 1/2 A- El Paso NG. 22 1/8 B First Charter 21 3/4 Fruehauf 32 7/8 B Gen'l Dyn. 39 Hewlett Pack. 27 1/4 B Illinois Cent. 51 3/8 B Int. Min. Chem.53 1/4 A- Kansas City S 41 3/4 A- Koppers Co 63 3/4 B Korvette,E. J. 40 1/8 B Litton Ind. 87 5/8 B Upside SupObj. port 29-36 22 '0 28 57-60 42 60-84 57-100 92 67-63 70-94 45-58 26 28-43 65-100 78 40-36 56-80 25-34 – 56-84 78-114 – 40 80-100 60-80 34 96-128 LOW-PRICED Close Qual- 3/1/65 Lykes Bros. 22 B McDermott 42 1/8 B McGraw Ed. 61 A- MGM 43 1/8 Metromedia 41 3/4 B Midland-Ross 43 B Newmont M 47 3/8 A- No. Amer.Car 31 3/4 A Rayonier 42 5/8 B Raytheon 23 7/8 Reynolds Met. 37 3/4 B Riegel Paper 22 3/8 B Schlumberger 76 1/4 A Scoville Mfg. 47 3/4 B Shell Oil 61 5/8 A Signode Corp 28 3/4 A- Southern Rwy. 57 B Spartans Ind. 237/8 Stevens, J. p, 47 1/8 B Storer Broad. 49 B Sundstrand 22 1/8 B Swingline A. 43 3/4 B United Fruit 16 7/8 B Vornado 38 1/8 Upside Obj. 32-60 48-80 70-80 64 44-52 62 53-60 36-38 51-80 25-40 90-130 65 64-120 33-50 77-104 27-36 52-75 54-70 50-70 54 Support 26 20 70-65 54-50 53-50 45 SPECULA TIVE Close Qual- Upside Sup- 3/1/65 ObJ. port Amer. Radiator 20 7/8 Audio Devices 10 3/8 Camp. Chib. 4 Foote Mineral 19 5/8 B B- B 22-29 15 Gt. West Fin. 10 7/8 Intern'l Pack. 13 1/4 Mesabi Trust 14 B 22 Microwave 9 5/8 B Close Qual- 3/1/65 ity Mohasco 17 1/4 B National Can 19 1/2 B Pacific Pete 10 3/4 B- Sbd. W. Air. 8 1/4 C Sperry Rand 15 1/8 B Univ. Match 17 5/8 B Varian Assoc. 15 3/4 B Vulcan Mat. 18 3/4 B Upside Obj, 14-20 28 Support March 1, 1965 Thib Bulletin IS nut. IIndl1mlC'r nu 'III ,., 11 I,c ('ot1strucd , lin lTl'! to lell 01 II SOILl.t.lllUll to buy IIny SeCIJlltlCS nrcncd to herein The informatIOn con tained hereIn 1'1 not til acruracy 'II C'unlpktcnl.,,, j,Ilii the rm flIbhlng thclcor 1I0t, and under 110 CIrcumstance IS to be construed abo a representatIon by & e, Inc All of opinIOn ale to chanl-(C wlthnut nlltll'(' Walbtn & Co, Inc, and Qfflccrs, Directors, Swckholders and Employees thereof 11Ulchnbe. ;(1\ and nlOY have l'\ll mtl're.t In til(' ;(!Cuntles mentume,1 herein Thl' Bulletm IS Intended and presented merely as mtormal commen- tary lind not. a … n rompiete analYSIS AddllionallnfurmntlOn WIth respC't to RllY ,,('('lllllle… lefened to herein WIll be ftlllushed request WN-916