Walston &Co. …;……;;,;.;;;..;;…;; 1n C 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 March 8, 1965 After moving sideways for most of the week, the Dow-Jones Industrial Average brok sharply on Friday, reaching an intra-day low of 886.28. A late rally erased much of the loss. Thus, as measured by the averages, the market continues to hold in the 880-910 range wher as has been stated, a, form. Still more time will probably be re- quired to complete this formation, out continued wide swings can accelerate the process. Meanwhile, the sharp shift in leadership to secondary and tertiary issues, remarked in last week's letter, continues to be noticeable. The average price of the ten most active issues last Thursday was just over 18 a share, and these issues accounted for an astonishing 240/0 of total trading volume. While all this was gOing.,on, high-grade international oils, probably beset by transitory foreign developments, continued to decline sharply. It was not a picture precisely calculated to inspire confidence. In a market of this nature, the best investment opportunities are probably found in those secondary issues which appear to afford real value and which show good improvement prospects. One such issue is reviewed below. METRO-GOLDWYN-MAYER, INC. Current Price 44 Current Dividend 1. 50 Current Yield 3.4 Movie production is, to say the least,a peculiar business. Let us examine how it works. A movie is produced at an out-of-pocket cost of SO Long Term Debt – None Common Stock 2, 611, 829 shs. Revenues-1963-64 117,760,000 Earn. per Sh.1963-64 2. 83 many millions of dollars. It is then releaSed and these costs begin to be recovered in the form of rentals. The rentals, however, continue for anum ber of years as (!'loves from initial re- lease intoJl,rst- n neighborhood house Mkt. Range 1965-62 58 1/8-26 3/8 and, in this Ie 0 television. Obviously d1Aoper . reported results depend Note Fiscal year ends August 31st. lOitial costs are amortized ove ue the picture. It is industry practice today e f ' e portion of production costs at the time the picture is produced. e picture has future value, a capital asset is built up which should r flect' the stock. Let us examine this from a couple of angles in the case 0 e ended last August, the company made a profit of 2.2 million pre-t ction after deducting all direct costs, plus all general expenses incurred by e y. Its other businesses – television production and the lu- crative record business – re also profitable after deducting direct costs. Yet, on top of all this, the company eyed 11. 8 million in revenues,or roughly 4. 50 per share pre-tax, on films already produced and already largely written off. Since it is the company's policy to release to television about the same number of films that it produces each year, this proces theoretically can continue indefinitely. Viewed in another way, the company carries its released film inventory at some 34 million. Last year it sold thirty post-1948 films to NBC for 7. 7 million. The total library consists of more than 1,100 films of which more than 400 are post-1948. Moreover, the pric that television is willing to pay for future films has been increasing at the rate of about 10 per annum. Thus, the outlook for MGM, under its new managemen1; appears interesting. Stunned by Mutiny on the Bounty losses, has turned from high-cost spectaculars and is producing medium-COst yet generally high-quality pictures. As stated above, film product- ion was profitable in fiscal 1964 and should continue to grow in profitability in 1965. Other phases of the company's business have good prospects and the film library continues to be a sort of hidden asset and should continue to produce income. It is probably too early to esti- mate earnings for 1965, but a substantial increase over the 2.83 shown in 1964 is possible. For the first quarter,results were 60 per share vs. 26 in the like 1964 quarter. From a technical pOint of view, the stock has an upside objective of 68 with good sup- port just under current levels. It is recommended for purchase in capital gains accounts. Dow-Jones Ind. 895.93 Dow-Jones Rails 209.30 ANTHONY W. TABELL WALSTON & CO. INC. Thl'l market Ictter 1'1 not. and undl'r 110 CITclItTlstanccs I., tn he contluu! .1.. ,lIl ofTe! In ' 11 SOIl('lt.ltlOl1 I bll) any seclir liles referred to herem The tnformatl)n n lmed hcr-ciills nut I!unrnntee\ all to ..1('C'UTllC)' or ('umpietcnc,,-; allll the fut nJ5hlllJ.( th..n….f. nt, \lnde. no rIlLum'ltnn'('….. tobe eot!!.trued n ' rellresentn co t W I to & C Inc All f pmlOn are t \\lthollt notice \\ lI'ton & Co Inc and Officers. Directors, Stockholders anrl IbYt! ' n r '\1. …e lind may h.we 'In Ifltcrc…t In the ..ccur.llL'l mcntwned hC1Cltl I'hl mark't !eltl'r IS Intended mere! II J,(cneln1. day to da market new; alltl not a 1 com\llcte Add.tl.jn.d mfO! mallon WIth lc,pect tn any relet rel\ to herein furnished 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 TABELL'S MARKET LETTER March 15, 1965 The stock market has, apparently, entered on a new phase. At the February 4 intra-day high of 911.jg1, it had clearly reached the upside objective of the DecemberJanuary rally. Since that..time.for five weeks now, it has held in a narrow trading range of barely 2-1/2 between the 'February high and the Vietnam crisis low of 877.48. This phase has had a number of characteristics readily apparent to even the most casual observer. One is the continued good market breadth—advances outnumbered declines by a substantial margin in three out of February's four weeks. Another is increasing volun;.e – – -with the exception of the last week 'in-FebruarY;'volume since February 1 has been greater than for any week since last September, The third obvious characteristic has been a dramatic shift in leadership away from the blue chips and into secondary and tertiary issues. This is, perhaps, one of the reasons that the averagEs have done very little. In summary, the phase can be said to be characterized by a large number of advancing stocks but a sharp decline in the quality of those stocks. Oddly enough, all this has not been accompanied by any great fluctuations in the averages. The Dow has not built up sufficient base to indicate a major new high as yet nor is the potential top yet of significant magnitude to indicate a penetration of the strong support in the 880-870 range. This would indicate that the type of action mentioned above may be with us for a while longer. Accordingly, it becomes important to look);,or wO may next ensue. In this connection it is worthy ,)f note that the arks the end of the traditional year-end rally which began at the 15 10 850. 19 and now may be said to have ended at the February high. p'hlrti ut in many letters that the thing to watch in ,t 11 the December,low. A downslde penetrahon of thlS low h r a ;!..il; wer market for the year two-thlrds of the time since 1897. In 0 s 'e to improve on the forecasting of the December low n . example, a strong rally, advancing 10 or more from the low and i 0 e February Or March, makes it unlikely that the As an example, the 1961, 1963, and 1964 year-end rallies approximated 10 an lnued well into Felruary or beyond. The 1960 and 1962 year- end rallies were les an 5 and topped out early. Indeed, in 1962 the rally topped out on the first day of the year, and the December low was broken in the first week in January. Unfortunately, 1965 presents a middle ground. The rally continued for about a month, about the mean for all such rallies in this century. The advance was 61 points in the Dow or a little over 7 . Rallies of this magnitude have generally indicated an upward market in recent years, but, if the price history going all the way back to 1897 is studied, the conclusion becomes less certain. Again, even at this late date, the December low becomes an important figure to watch. A declinetS' this Jigure would have a significance not only from a year-end-rally point of view but from a number of others. It would also indicate a downside penetration of the decisive support level mentioned above and of the trading range which has contained the market since mid September. It would also decisively penetrate the present level of the 200-day moving average. The ability, therefore, to hold above the 880-870 support continues to be constructive insofar as the present market is concerned. Inability to continue the present rally followed by'a decline into the support, accompanied by deteriorating breadth and volume, would be viewed with some alarm. Dow-Jones Ind. – 900.33 Dow-Jones Rails – 213.08 ANTHONY W. TABELL WALSTON & CO., mc. Th lr'\!.et letter IS not and under no ClrCulTlbtnnces IS to he con..trucd fib nn ffCl to ('II OJ n to huy sccurlti('s Tt'fcrrl'd to herem The IS mt h II nut 'unrantecd as to nccuracy or cumlllctcnc-,s and thc fut nhhll1l! Ihete,,! t.. not. nnd untiCI 111 clrcumstanCC,. IS to te cOIl'truei Il' n jby V. Col! Inc- All expressIOn. of opllllOn nre subJcrt to Chlll.!E' wIthout lIotlce, & Co, InC' Rnd OffIcers. Dlrel'\ors. Stockholders nnr! sell lind mny hllve 1111 Interest in th(! menttnncd heteln fhls marct Ictter I lnten.ied and pf'-.etct.i mer'i) ah 1\ genunl, IIImo,prmOYnl!,,,e,OMn'Hm t'IlPry on ('..y t0 ,y mok' ..'ew5 nnd not IlS II. complcte Ad.htlnnni ttlfUl million \\Ith to an) secuntws referted to hcrCIn WIll JbOc! furmshed upon request

lABEll'S MARKET Walston &eo. – INVESTMENT BANKERS MUTUIAnLcFUNDS MUNICIPAL BONDS Members New York Stock Exchange, Chicago Board of Trade and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS lETTER March 22, I 1965 LING – TEMCO- VO UG HT Price Dividend Yield 24 1/2 . 50 2.0 One characteristic of recent markets has been the shift in leadership from blue chip issues to the more speculative secondary stocks. Part of this Long Term Debt 4 1/2 Pfd. 3 Pfd. Common 34,591,553 151,084 shs. 265,830 shs. 1,849,968 shs. is, of course, attributable to a certain reawakening of speculative interest, but a portion is also, no doubt, due to the fact that good values and attractive potentials exist in a good many hitherto- Sales – 1964 322,859,000 Sales – 1965-E 300,000,000 the case with Ling-Temco-Vought. Ling-Temco is not to mince words, a speculative issue. Its re- Earn. per share-1964 2. 31 cent earnings record has been erratic. Its capital Earn. per share-1965-E 2.30 Mkt. Range 1965-62 257/8-13 1/2 ization, though much improved, is debt-laden. There is potential equity dilution, the basic busi- ness is volatile, and the stock has moved up shar Note Debt includes 10.8 miliion convertible into common at 33.74. ly in recent trading sessions. This all indicates that risk is attached to the purchase of the stock, 4 1/2 pfd. convertible share for but the question is whether this risk is compen- share. 3 pfd. convertible into sated for by adequate potential reward. In Ling- 1 1/4 shares. Temco, this appears to be the case. Recent Ling-Temco pic- ture fall into two categories – the financial and the n aI Wo e financial point of view the company – the outgrowth of a series of me c .. ions extending over a number of years – has taken a number of steps to imIRr9te it ance sheet. Long term de has been reduced sharply from 65 million d short term debt has been halved. The number of common w from 2.78 million to 1. 85!llillion, -and -the problemaf potential dilution s — – — – );a,;; – ed aggressively through the refinancing of a number of convertible that current potential dilution through convertibles and vertible substantia y v . rr t most all currently outstanding issues are conmarket so that this problem becomes unimportant as long as the stoc A recent move a ur levels. t e pany in the financial area appears to have some significance. It has recently formed e wholly-owned subsidiaries consisting of 8 of its 11 operating divisions and plans to sk for tenders of its own common in exchange for cash and shares in each of these three subsidiaries. The effects of this move will be (1) the outstanding com- mon shares will be further decreased, and (2) the establishment of independent market values for the three subsidiaries may lead to a more generous appraisal of the parent company. Ling will still own 83 of these subsidiaries. From a fundamental point of view a dramatic improvement appears in the offing. The company is well diversified in the aerospace, electronics, and missile fields. A number of projects for which the company is prime contractor appear to hold promise, foremost among these being the development of the A-7A attack aircraft for the Navy. The magnitude of this contract is staggering. 100 million has been allotted for development of a new pro- duction aircraft. It has been estima ted that;-if proven successful, as maiiy as-i, 000 aircraft could ultimately be ordered, giving the contract a value in excess of 1 billion over a peri of years. When compared with Ling's 300 million sales base, the effects could be dramatic. . Other projects, less definite than the A-7A, include the Lance surface-to-surface mis- sile and the XC-142 verticle take-off transport. If these contracts were to realize their full potential, this, with the A-7A, could well mean a doubling of present earning power by 1967. From a technical point of view the recent upside breakout from a substantial base formation indicates a possible long term potential of 44 followed by possible higher levels. The stock i accordingly being added to our speculative list and purchase is recommended in risk accamt Dow-Jones Ind. 895. 79 Dow-Jones Rails 213.87 ANTHONY W. TABELL WALSTON & CO. INC. ThiS market letter IS not, and under no IS to be con..trucd U, nn offer t ..('1\.)1 bhCllatwll to hu an seCUrities referred to herem The tnform.ltlon contamed herein IS not j.!unrnntced as to .lccuracy 01 LompletenC!ill md the fut IIIhlnJ. lht'fcnf I nol, and under no ..Ircumst.IIlCCS IS to be construed as, n representa- tIOn b \\'alsHlIl &. Co In(' All c.;prCS!10nb of VIHnlO11 arc '1111ect te Ch,HI)!e \\lthol11. notIce \Vnlbton & Co, Inc. and Officers, Dlrcctors. StoC'kholrlers and Employl'cs therwf, pUlch,I;(' 'lell and hlne an III the rnrormaJ commentary nn dllY to la m.lTh.('l nCW5 and lint a; a (,.oml,lete mentlOllC'd hC'IClIl ThIS market Jelt;r IS Intend;.j and prescnt('i merel us a Jlcnernl. Addltln,1I lllfrnr,ltlon \\lth t(',peet to IIny 5ccurlllC; rcfened tt) herelll \\111 he upon rcqu!;,st \\.\ JI)!

Walston &- Co. Inc INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER March 29, 1'965 Some individual issues, mainly of secondary character, continue to perform bril- liantly while the market, as measured by the averages, moves in a sidewise pattern. In early November, the Dow-Jones Industrial Average reached an intra-day high of 897.00 and now a little over four months is still at about the same price level. During this four-month period, the intra-day high in the average has been 911. 80, and the low has been 850.19 or a range of between 6 to 7. During this same time period, some individual issues have moved up from 25 to 50, or more. From a technical viewpoint, it would appear that this diverse price action will continue for somewhat longer. The laggards in recent markets have been mainly the blue chip investment issues that were the market leaders from the Cuban crisis low of October, 1962 untillatein1964. Many of these issues reached their highs several months ago. The leadership has been taken over by stocks of lesser known com panies selling at lower price to earnings multiples than the larger companies. In the main, these have been sound companies. The overspeculation in cats and dogs that occurred in the 1961-1962 period has still been comparatively rare during the present period. Despite the fact that the market advance is now two and a half years old and has reached a mature stage of development, there are no signs of an immediate deterioration of consequence. Our long term breadth index continues in the uptrend channel that started at the Kennedy assassination low and, as yet, there has been no divergence between it and the industrial average such as occurred in mid-1961. However, the market must be watched closely for possible signs of a loss of upside momentum. As far as the averages themselves are con- cerned, the narrow trading range of the past several basing out period. The upside potential is not very great as At the moment, from a technical viewpoint, the most This is not very exciting as far as a price rise in of a consolidation 0 et, b e cpattern may broaden. u s' e ntial is around 920. s cerned, but it could re- sult in much sharper advances in individual issues if 9ric ttern of recent months is continued. On the downside, the first to w is the 885-875 area. Any de- cline at this stage of the technical to continue without a sizable inter;. in this area is A break below this area would imply a testing of the At this stage of the earlier stages Hi 19 850.19. v e there is obviously more risk involved than at market. We would continue to concentrate our atten- tion on issues where n e outlook is constructive and where the intermediate term downside risk appears elat' y small when compared to the long term appreciation prospec Our recomme ist contains issues which we believe fall into this category. The following issues have een recommended since January 1st, 1965. Some of these had been previously recommended at lower levels. Date Hewlett Packard 118 Price Close Then 3/26/65 23 5/8 25 Date Cenco Instrum. T729 Price Then 29374 Close 3/26/65 30 3/4 Vulcan Materials 1/8 Scovill Mfg. 1/8 Intern'l Miner. 1/8 Korvette 1/15 181/8 385/8 41 1/2 42 20 1/8 473/4 541/8 42 3/4 Spartans Ind. Metromedia Litton Ind. MGM Ling-Temco 1/29 2/12 2/19 3/8 3/22 19 1/8 397/8 86 44 241/2 235/8 39 1/8 861/4 42 1/4 245/8 A complete-recommen-ded-ltst'will be in the hands of your Account Executive shortly They are issued monthly and each stock is followed from its original recommendation to its ultimate elimination from the list. We are eliminating Midland Ross which was originally recommended at 31 5/8 in September, 1963 and which reached its initial upside potential at 44. Also eliminated are American Radiator (20 7/8), recommended at 17 in January 1964, and American Metal Prod- ucts (25), recommended at 18 also in January, 1964. – – We are adding to our recommended list American Bosch Arma Corporation (18 7/8) and Warner Bros. Co. (33 3/4), the manufacturer of bras, girdles and Hathaway shirts. Both of these issues will be reviewed shortly. Dow-Jones Ind. 891. 66 Dow-Jones Rails 213.69 EDMUND W. TABELL WALSTON & CO. INC. This market Jetter 18 pubhshed for convenience find informatIOn Rnd IS not an offer to sell or 9OlIdt.atlon to buy Rny 8eCufltiea discussed The in formntlOn Wit'! obtAined from sources we btheve to Ie nJable. but we do not gUArantee Its ,,'Riston & Co.. Inc and Its officer!, directors or emptoyees may have an Interest In or purchfUle and sell the seCUrities referred to herem. WN.SOI

W—-a–l-s-tIonnc–&—-C–o-. INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICfS COAST TO COAST AND OVERSEAS EDMUND W. TABELl'S RECOMMENDED LIST April 1,1965 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 ulfclear, or that the stock has not yet broken out of its base formation. Amerada Amer. Can GenII Elec. Gulf Oil QUALITY & LONG TERM GROWTH Close Qual- Upside Sup- 3/31/65 .!!L Obj. port 78 5/8 A 108-150 70-60 44 1/4 B 99 1/2 A 130 90-85 53 5/8 A 66-92 50-45 Close Qual- 3/31/65 .!!L Norfolk W. 129 1/2 A Reynolds Tob. 39 1/8 A Royal Dutch 41 1/2 A Upside Obj . 155-170 86 Support 125 39 PRICE APPRECIATION Close Qual- 3/31/65 .!!L Atchison, Top. 33 3/8 A- Beaunit Corp. 39 3/8 B Cenco Inst. 32 '1/ 4 B Clark Equip. 50 7/8 A- Clevite 42 1/2 B Cluett, Peab. 70 1/2 B Copperweld S 61 1/2 B Crowell ColI. 2S B Denver, R. G. 20 3/S B Disney, Walt. 53 3/4 B Eaton Mfg. 50 l/S B Elec. Stor. B 53 1/2 A- El Paso N. G. 21 3/4 B First Charter 22 3/4 Fruehauf 31 3/S B GenII Dyn. 37 1/4 Hewlett Pack. 24 1/4 B Illinois Cent. 54 B Int. Min. Chem. 53 A- Kansas City S 42 7/S A- Koppers Co 62 3/S B Korvette, E.J. 41 7/S B Litton Ind. S4 B Lykes Bros. 22 1/4 B Upside SupObj. port 46-52 28 57-60 42 60-84 40 57-100 – 92 70-94 45-58 26 2S-43 65-100 7S 56-SO 25-34 56-S4 7S-114 – 40 SO-100 60-S0 96-12S 32-60 Close Qual- 3/31/65 McDermott 37 7/8 B McGraw Ed. 63 1/4 A- Mesabi Trust 137/8 MGM 41 1/8 Metromedia 3S 7/S B Newmont M 49 A- No.Amer. Car 32 1/4 A Rayonier 42 B Raytheon 22 3/4 Reynolds Met.37 1/2 B Riegel Paper 22 3/S B Schlumberger 76 A Scovill Mfg. 47 1/2 B Shell Oil 5S 5/8 A Signode Corp 29 1/2 A- Southern Rwy 57 1/2 B Spartans Ind. 24 5/S Stevens;J. P 47 5/8 B Storer Broad. 50 B Sundstrand 21 3/S B Swingline A 42 1/2 B United Fruit 17 5/S B Vornado 46 7/S Vulcan Mat. 22 B Warner Bros.Co. 34 B Upside SupObj. port 48-80 70-80 22 70 64 62 26 53-60 36-3S 51-SO 34 90-130 '70-65 65 64-120 54-50 33-50 77-104 53-50 27-36 52-75 54-70 . 45 '50-70 54 2S 50 LOW-PRICED SPECULATIVE Close Qual- Upside Sup- . Close Qual Upside Sup- 3/31/65 Obj. port 3/31/65 .J!l Obj port Amer. Bosch 19 7/S 40-50 Mohasco 17 3/4 B 29 Audio Dev. 12 7/S Camp. Chib. 4 Foote Min. 19 1/2 Gt. West Fin. 10 3/4 Intern 11 Pack. 13 3/S Ling-Temco 24 l/S Microwave S 7/S BB B B .2.9 44-62 21 National Can 22 3/S Pacific Pete 11 1/s Sbd. W. Air 9 1/s Sperry Rand 14 Univ. Match IS 1/s Varian Assoc. 14 1/4 B B- C B B B 50-60 14-20 .- This Bulletin IS pubhshed for lour convenlt'ncc and Informntlon Rnd IS not Il.n ofter to Mil or a soluitRlion to bu) Rny securities discussed The informauon was obtained from bOUre'…… c heinvl! to IJf but v.e do not LtS IlCCUHI.CY. ,,'alston &. Co. Inc Rnd Its offkers, dlredoTs or eml11o)ees mny hl!.Ve an Interest In or pUr('h,lw 'lnil-.dl thc 'Ct\lTltieS rlfelrt'( to helt'ln. ,,-916 r.

Walston &Co. Inc INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER April 5, 1965 A modest advance on Friday topped off a week in which the Dow-Jones Industrials essentially moved sideways. The most noticeable feature of the week's trading was the ex- tremely low volume, with turnover being lower than in any 5-day week since last August. Currently, the two important'pointsito)wcttch are the February low of 877.48 and the all-tim high of 911. 80. A breakout into new high ground would indicate a move to approximately 925, while a move below the February bottom would indicate a possible 860 and perhaps a testing of the December low of 850. 19. Thus, no dramatic move in either direction is implied. However, on the one hand, a move to new highs would destroy the potential top formation, maintain the year-long up- trend, and indicate a continuation of the relativel'y favoraJile'-invesfmenCcTima te from a time point of view. On the other hand, a downside breakout could indicate the continued building of a distributional pattern. In any event, either sort of market will be characterized by diverse action and good moves in individual stocks where the technical and fundamental picture warrants it. Exam- pIes are two stocks added to our recommended list last week. If one accepts the premise that the present market will continue to be characterized by a flow of investment funds from higher quality, amply-priced blue chips into smaller but still cheap secondary companies, WARNER BROS. COMPANY (33 1/2) becomes an extreme- ly attractive candidate for purchase. The price (eleven times 1964 earnings of 3.02, 9 1/2 timesestimated 1965 results of 3.50) is conservative. The growth record (earnings have increased in every year since the company went public in and shows no signs of abatement. And management has shown ability to os ,\'r, )boq through acquisition arrl internal growth, in a highly competitive field. Warner manufactures quality foundation gar s, a y shirts, lingerie, swim- suits and, a year ago, acquired Puritan r, nu urer of men's sweaters and men's knit shirts. Its Slimwear Division has e ighl ccessful in the fonndation gar- ment field.and a successf-ulploduct in its history. Typical of its aggres o v e5;'tfts'klk lR,1h-e eye-patch trademark which has made Hathaway shirts known the wor and'1j;SiS believed that aggressive management will be able to The stoc c s0 e1 growth record. side potential of 50, followed by possible higher level; and is added to our en ist for capital gains accounts. AMERICAN B SC RMA (20 3/8), on the face of it, has little to recommend it. Sales have declined fr 133 million in 1961 to 70 million in 1964 and should drop off fur- ther in 1965. Net per share has receded from a 1957 peak of 2.67 to 91 last year. What this record obscures, however, is a dramatic change in the structure of the company. Throu the years, American Bosch has been heavily dependent on defense contracts. This business has been gradually reduced, and it is the decline in this area that accounts for a large por- tion of the dropoff in net. Meanwhile, the company's capital structure has been drastically improved, a substantial amount of debt has been retired, nearly a quarter of a million sha of a total capitalization of 1. 7 million have been purchased for the Treasury, and more may be so purchased. More than this, however, the company's most important division is now the Ameri- can Bosch Division which is the leader in the manufacture of diesel fuel injection equipment. At a considerable research outlay, divisioithas developed system which may dramatically alter diesel engine technology and make the diesel engine economic in anum- ber of new uses, notably medium duty intra-city trucking. General Motors, Mack Truck, and a number of other major producers are nOw using the system and it is believed important enough to cause dramatic earnings growth for Bosch. Meanwhile, the company's other areas of operation, including the defense business on its present reduced scale, are profitable. The stock has a technical upside objective of 40, with support at the 17-15 level. It appears to have merit as a speculation on continued good results from the new fuel injection technique. Dow-Jones Ind. 893.38 Dow-Jones Rails 211. 08 ANTHONY W. TABELL WALSTON & CO. INC. This market letter is published for )'our convemence Pond mformatlon and IS not I'In offer to seU or R solicitation to buy Rny surlties diaemsed The information was obtamed (rom !;()urctl we lK.heve to t .. rehable but we do not guarantee It.s necurac) \\'Rlston & Co, Ine, and Its officers, directors or employees may have an Interellt in or purchase and sell the securities referred to herein. WNSOl

Walston &Co. Inc INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges TABEll'S MARKET lETTER OFFICES COAST TO COAST AND OVERSEAS April 12, 1965 WALT DISNEY PRODUCTIONS Current Price 53 Current Dividend 0.40 Current Yield 0.8 The Academy Award given last week to Julie Andrews for her performance in the delightful Mary Poppins warrants another look at Walt Long Term Debt 8,750,000 Common Stock 1,841,475 shs. Disney Productions, originally recommended by this letter in June, 1963 at 34 1/2. Despite the sharp rise in price since that time, the stock Revenues 1965-E 95,000,000 still appears to be a highly attractive capital Revenuee 1964 ,86, 000,..-. vehicle. '0 ., Earn. per Share 1965-E 4.50 The phenomenal success of Poppins ap- Earn. per Share 1964 3. 84 pears to assure a bright near-term future for Mkt. Range 1965-1963 571/2-261/4 Disney. Earnings for the first quarter of the fiscal year to end October, 1965 were 94 vs. 83, and the full impact of the company's new hit was not felt due to heavy initial distribution costs. For the full year, per share results could reach the 4. 50-4.75 range, making the stock available at a multiple of twelve times estimated earnings. On initial release, Mary Poppins is expected to gross 30 million, versus a negative cost of some 5 1/2 million. There must, however, be a reason beyond the current success of one picture to justify investment in Disney. There are, we believe, sufficient such reasons to make the stock at- tractive on a long term basis. 0 Disney has two major spheres of activity; first the p du an distribution of mo- tion pictures, and, second, the operation of the se t Park at Anaheim, California. Ancillary activities such as music and t Wonderful World of Color' television program (just extended through NBCY,'pr 'de a minor share of revenue. Disneyland continues to be a , a eady contributor to earnings, and r- the, – – ;)1lf ' uring1965IYis,however; motio-n' picture activities of Disney a greatest long range profit potential from the investor point 0 view Movie productio i e bess, and it is impossible to predict wha t the recep tion of future pro ' v!&fJe. is area, however, Disney has a number of factors in its favor not present the m companies. First of all, in live film production the eom- pany acts as producer ltS Own films, and is not forced to enter into profit-sharing contracts with highly a stars, directors and producers. This advantage also accrues to its production of animated films. Another Disney plus is the fact that most of its films are relatively low budget and, in most cases, the Disney name itself assures sufficient distribu- tion to insure at least a moderate profit. However, Disney's most important competitive advantage seems to be that its films are 0) essentially timeless and, (2), aimed largely at children. Every few years, therefore, there appears a new generation previously unexposed to the earlier Disney films. Since production costs are generally written off on initial release, re-releases are highly profit- able. Moreover, the number of films available for annual re-release will compound as the film library is built up. Thus, this year Disney will again introduce its highly successful 1950 production of Cinderella. In a,nothel' market, color television will provide a profit .. able outlet for the famous short cartoons of the 1930's and 1940's. Mary Poppins should contribute to revenues through 1965 and on into 1966 and 1967. Meanwhile, four new pictures either have been or will be released in 1965 and work goes on on others including an animated production of Rudyard Kipling's Jungle Book. From a technical point of view, Disney has an upside objective of 65-100, and is sug- gested for purchase in capital gains accounts. Dow-Jones Ind. 901. 29' Dow-Jones Rails 213.69 ANTHONY W. TAB ELL WALSTON & CO. INC. This market letter 18 pubhshed for our converllence and Information and 1; not an offer to sell or '1ohcltatlon to buy any securIties The In- formntlOn was obtained from sourCL'S we bLheve to I reliable. hut we do not gunrnntee Its nrcun\(') ,,'alston & Co, Inc and Ito; OffiC\.'1 s, directors or emJ)loyees may have an Interest In or purchase and sell the lecuntl('s referred to herein WN301 I

Walston &- Co. — Inc ——— INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER April 19, 1965 Until last week, for more than two months, the Dow-Jones Industrials had held in a trading range bounded by an intra-day high of 911. 80 and a low of 877.46. Finally, on Tuesday of last week, after five consecutive advancing days on expanding volume, the average posted a new intra-day high. This w.as..f.ollowed.on Wednesday by another good advance of almost five points in the average and an intra-day high of 917.01 was reached on Thursday. Profit- taking cut into the gain later in the day and an intra-day low of 905.71 was posted. Whether we like it or not, the writing of a market letter involves, in large part, the making of predictions. In turn, the most difficult part of the science of prediction is knowing jJredicted. Alw.ays.to hlve,a,prS'dicti0fl.. is a -. necessity for fortune tellers and astrologists. Fortunately, this is not true for the market technician. As has been pointed out in previous letters, the upsi de objective of the February- April congestion area is 928-930. This week's upside penetration indicates a strong possibil ityof this level's being reached. Unfortunately, it does not indicate anything further. Upon reaching the aforementioned level, the ma rket may well form a base indicating an extension of the advance or a top indicating the advance's culmination and an eventual decline. Such a statement is not hedging. It is only a statement of what, at the moment, cannot be predicted. Those who claim to read technical indications of an imminent substantial move in either direction from present levels are presumably privy to information not available to the writers of this letter. In our letter of two weeks ago we said a move to ne' ….. indicate a continuation of the relatively favorable investment climate 0 of view. This, again,is not an attempt to obscure the issue. It is, r a ' n Sl cant fact that could be inferred from a continued move into new high terr' . r e ma rket to remain at current levels in the Dow, it would indicate p s uilding an ultimate top had started as early as last December. Now the p l ' 'ty e' s that such a process has barely begun. ss- istrtbutton-takestime;-Thus7 were . the market to continue its ohhbJreaiWfiably predict that the sort of investment climate we have recently seen u e than would otherwise have been the ca The words to what the averag n imate are not meant to imply any prediction as , 0 ' lcate the type of market in which it is possible to achieve worthwhile c g n selected stocks. This has certainly been true in recent markets, as evidenced y t erformance of a number of issues in our recommended list. INTERNATIONAL MINFJ S & CHEMICAL (57) entered our list at a price of 16 (adjusted for last year's two-for'one split) in late 1960. It reached a newall-time high of 60 earlier this week. The three-year rise has been well documented. As the world's largest prOducer of plant growth nutrients, the company is the leading factor in an expanding field and earn- ings have moved from 1. 52 in the year ended June 1962, to 1. 77, 2.48, and an estimated 3. 15 in the year to end this coming June. The following year should show further expansion to the 3.50 – 3.75 level. On this basis, long term investors are certainly well advised to retain the stock,and, until evidence of technical deterioration takes place, we shall retain the Hold rating in our list. Market strength was also shown this week by a recent recommendation, GENERAL DYNAMICS (43) which reached a 1965 high of 43 1/4 on Thursday. Our market letter of August 28, 1964, which recommendecrthe stock at 33, pointed '-Out the improved balance sheet position and earnings potential which had been achieved since 1962 and suggested that the ul- timate value of the F-111 (TFX) contracts could be of considerable magnitude. An idea of that magnitude was given last week when the company announced that a pre-production con- tract of 45 million had been signed and tha t the ultima te value of this contract could be 1. 5 When it is considered that General Dynamics' 1964 sales were 1. 58 billion, and that fircraft sales were probably 500 to 600 million, it becomes apparent that the F-111 will be an important contributor to the company's fortunes. The stock is again suggested for pur- chase in accounts interested in capital growth. pow-Jones Ind. 911. 91 iDow-Jones Rails 213.16 ANTHONY W. TAB ELL WALSTON & CO. INC. This letter is published for your convenience and information and 18 not an offer to tleU or 8OI1c1tatlon to buy Any MCurltiea The in- formntion was obtained from ROurces we to t rehable, but we do not guaranu-e its accuracy Walllton & Co, Inc. Rnd ita officers, dlrl.'('tors or en1J1loyees may have an intere8t In or purchase Rnd sell the securities referred to herein, WNSOl

TABELL'S MARKET Walston &Co. —–Inc —-INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Stock Exchange and Other Principal Stock and Commodity OFFICES COAST TO COAST AND OVERSEAS LEnER April 26, 1965 On November 18th, over five months ago, the Dow-Jones Iustria1 Average reached an intra-day high of 897.00. On Friday, a new ali-time intra-day high was reached at 921. 51. Translating this into terms of actual prices of the 30 stocks in the Industrial Average, this means a rise from 89 3/4Qto9'lJ1 is equivalent to just a shade above 2. This is certainly not a dynamic rise, but considering the news uncertainties during the past1ive months, it is a creditable performance.The market has chosen to ignore the problems of Viet Nam, the money risk, the domestic credit picture, and the threatened steel strike, and has concentrated on the very favorable business background and the favorable earnings trend. ' respect, tJie-market pattern-is-quite-different from tlie -. which was based largely on a willingness to pay a much higher multiple for relatively static earnings. The earnings on the Dow-Jones Industrials for the 1955-1961 period were in a six year plateau between 28 and 35. The price-to-earnings- ratio doubled from 12 times earn- ings at the 1957 low to 24 times earnings in 1961, while actual earnings in 1961 failed to reach the 35 level of 1957. .0' The overspeculation and overvaluation that existed in 1961 and early 1962 is not present today. At the 1962 low of 525, the Dow-Jones Industrials were earning 33 and sell- ing at roughly 16 times earnings. Since that time earnings have shown a steady increase with 46. 51 reported for )964. In the last two years, the price of the/rridustrial Average has just about. kegt pace with the earnings rise. For the last two years, the price! earnings ratio has been hovering around the 19 times earnings level. ally high, it is considerably below the over-inflated 24 ti 9 e earnings is historic1961. Estimates for 1965 range between 50 and 52 on the 'a s. -ng the lower figure and applying the 16 times earnings that prevailed at 962 0 ould result in a price level of 800 if investor confidence were 20 times earnings to the 50 figure would re direction. Under such W by de s developments. Applying t' apr' evel around 1000. In either event . a e – -swing-of-not-more-than-1-0-in either- yo individual stocks is much more important than the action e and there is no in' t' 0 the technical backgr f . T' certainly has been the case for the last two years n the selective pattern. This has been borne out by rket. Since the Kennedy assassination lows, the market has advanced in a seri s 0 her moderate upward moves followed by a consolidating peri and an advance to new s. During this period, individual stocks and groups have followed diverse patterns. Many stocks reached their highs six months ago while others appear to have just started upward moves. It is a period in which it does not pay to generalize about the market. Selectivity continues to be the key. In our recommended list, we attempt to a- chieve this goal. The sum total of all issues in the list has acted much better than the aver- ages since the first of the year. A compilation of the price action of the list along with a few changes and additions will be furnished to your Account Executive at the end of the month. From a general-market technical point of view, the averages indicate a further ad- vance to the 928-930 level. If the technical pattern since 1963 continues, the attainment of this level will result in another consolidating period. In the past, these consolidating period I have been followed by an upside breakout and an advance to new high territory. Obviously, at some point this patterOn will change From a technical viewpoint, achange in trend will be signalled by two indicators. One is our breadth index. A divergence between it and the Indus trial Average would give a warning signal. This has not happened. The breadth index has been in an uptrend channel since late 1963 and has confirmed each new high in the average. Another indicator is the 200-day moving average of the price of the Dow-Jones Industrials. This average price for the last two hundred days is now at about 874. A breaking of this line would give a warning signal. A downward trend in the moving average itself would indi- cate a decline of at least intermediate term proportions. It appears unlikely, barring un- foreseen news events, that this latter development could occur before at least two months at a minimum. Dow-Jones Ind. 916.41 EDMUND W. TABELL WALSTON & CO. INC. Dow-Jones Rails 212. 12 ThiS market letter is published for your convenience and mformatlon and is not an offer to Bell or a BollcltatloJl to buy Rny eeeurities discussed. The in- formation was obtamed from sources We b..lieve to tt reliable. but we do not IfURrantee Its accurRCY, Wl\lston & Co,. Inc. and Its offieers, directors or emZ'loyeea may have an Interest In or purchase and sell the securities referred to herein. — – WN.801

Walston &Co. – Inc – – – – – INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New -York Stock Exchange and Other Principal Stock and Commodity Exchange. TABELL'S MARKET LETTER OFFICES COAST TO COAST AND OVERSEAS May 3, 1965 The Dow-Jones Industrial Average reached a new intra-day nigh at 925.42 on Friday, but volume declined as the week wore on. At the week's high, the averages were very near the 928-930 level previously mentioned by this letter as the upside potential of the February March consolidation area.lfutb.e;'pa-tte.rn, which has prevailed for the last 17 months continue the recent strength will be followed by another consolidating area, formation of a new short term base, and a move to new high territory. At the present moment, it is difficult to en- vision much higher than the 928-930 area before a new base forms. The short term down- side support area is at the 905-900 level. Present indications point to continued upward selectivity within a nar- . row trading band. -The uptrend linesOnOurvarious techniCal indica to rs through tlie -Cuban – crisis and Kennedy assassination lows are still intact, although the market has undoubtedly reached a rna ture stage and must be watched closely for signs of loss of momentum. No such signs have yet appeared. At various stiges of the upward move from the 1962 lows the have been preliminary signals of minor deterioration, but the market has done a remarkabl job of internal technical correction and has not yet given a warning signal despite 'the fact that, recently, there have been a few signs of possible deterioration. For example, volume on the recent rise has failed to equal the volume at the February peak. Volume usually tops out before the market reaches its actual high. Also, the action of the other ave ages indicates some signs of divergence. The Rail average, despite the new highs in the In- dustrials, has failed to better not only the March high of 217. 63, but also the October high of 226.39 made over six months ago. The Utility a fractional new high, but its action has been sluggish rec tl managed to reach hts week's intra-day low of 160.85 is quite close to the three-month low e wever, are only preliminary indications and could easily change. Lo Olftm e action remains con- structive and indicates the continuation of a selectiv anc Selectivity in the market is well t e 'ce action of our recommended -'Fher-e is the Quality and Long preciation group consisting 0 e' of issues of high quality, the Price Ap and a Low- Priced Speculative group. In 1962, when this lette was confined to th iY m bullish, a large portion of our recommended list n n erm growth sector. Until late 1964, this was the group that showed t a t e appreciation. We have been gradually eliminating issue in this group from ou ended list and at the moment there are only 7 issues in this group out of a total of ince the first of the year the Dow has advanced about 5, but the 7 stocks in our Qualit list have averaged a gain of only about half of this amount. On the other hand, the 49 issues in our Price Appreciation group have shown an advance approxi- mately three times as great as the Dow, and the price appreciation of the 15 stocks in the Low-Priced Speculative group has been roughly five times greater than the Average. These figures are preliminary, but the actual figures will be available next week. Obviously, these figures indicate an increase of public participation in the market and a lowering of the qual- ity of the advancing stocks. The market, however, has not approached the sort of overvalua- tion of lower-grade equities that existed in 1961. A new Recommended list will be in the hands of your Account Executive next week. We are making a number of changes. In the high quality group we suggest switching Amerada (78 5/8) into Aluminum Co. of America (71 better intermediate term action. is a high-quality issue and will probably show excellent long term growth, but will probably be slow over the nearer term. The Aluminum group has shown much better technical actiorl\ recently and Aluminum Co. of America is the quality issue in the group. It sold at over 130 in 1956. We also suggest taking profits in Rayonier (41 7/8) in our Price Appreciation list. This stock has performed remarkably well since our original recommendation, but nowshow some signs of loss of momentum. As a replacement we suggest Revlon (45 1/8), a leader in the cosmetics and toiletries field. It sold at over 80 in 1961 when earnings were lower than those of today. Also, we have lost patience with Sperry Rand and are removing it from the list. Over the longer term it has appeal and can be held by patient holders, but we see no indication of near term action. Better speculations, in our opinion, would be Audio Devices (14) Great Western Financial (.11..3).4)..a.nd Microwave (10 1/8). All of these three issues are al- ready in our recommended'-lisURevlori will be reviewed in more detail shortly. Dow-Jones Ind. 922.31 EDMUND W. TABELL Dow-Jones Rails 212.63 WALSTON & CO. INC. This market letter is published for your convenience flnd mformatlon and IS not E1n oft'er to lieU or It solicitation to buy Rny IIUrlties dl.scussed. The information was obtamed from sources we txheve to le reliable. but we do not guarantee Its RccurElCY. WEllston & Co. Inc E1nd Its officers. diretors or emJ'loyees may have an Interest in or purchase Rnd sell the securities referred to herem Walston &- Co, 1nc INveSTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Slock Exchange and Other Principal Slock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS EDMUND W. TABEll'S RECOMMENDED LIST May 3, 1965 . . This edition of our Recommended List gives long term technical upside objectives and level.s in cases where such levels exist. An asterisk in the Upside Object- lVe column mdicates elther that the objective is unclear, or that the stock has not yet broken out of its base formation4tllmL QUALITY & LONG TERM GROWTH Close Qual- 4/30/65 Alum. Co. Amer. 71 7/8 B Amer. Can 473/4 B Gen'l Elec. 1041/4 A Gulf Oil 55 1/4 A Upside SupObj. port 65-60 130 90 66-92 50-45 Close Qual- Upside 4/30/65 Obj. Norfolk & W. 131 A 155-170 Reynolds Tob. 42 3/4 A Royal Dutch 41 3/4 A 86 Support 125 39-35 PRICE APPRECIATION Close Qual- 4/30/65 Atchison, Top. 33 A- Beaunit Corp. 43 1/4 B Cenco Inst. 343/4 B Clark Equip. 56 A- Clevite 485/8 B Cluett Peab. 72 1/2 B Copperweld S 68 1/2 B Crowell Coll, 343/4 B Denver, R. G. 20 5/8 B Disney, Walt 55 B Eaton Mfg. 541/8 B Elec. Stor. B 52 1/2 A- El Paso N. G. 21 1/2 B First Charter 23 3/4 Fruehauf Corp. 34 B Gen'l Dyn. 42 1/4 Hewlett Pack. 25 5/8 B Illinois Cent. 50 7/8 B Int. Min. Chern. 56 1/8 A- Kansas City S 41 1/8 A- Koppers Co 68 5/8 B Korvette, E. J. 46 7/8' B Litton Ind. 88 3/4 B Lykes Bros. 22 1/2 B McDermott 41 7/8 B Upside SupObj. port 46-52 28 57-60 42 60-84 50-45 57-100 92 70-94 45-58 30-28 28-43 65-100 78 56-80 25-34 56-84 78-114 40 80-100 60-80 96-128 32-60 20 48-80 Close Qual- Upside 4/30/65 i!L Obj. McGraw Ed. 681/8 A- 70-80 Mesabi Tr. 13 7/8 22 MGM 42 3/4 70 Metromedia 39 B 64 Newmont M 557/8 A- 62 N. Amer. Car 32 7/8 A Raytheon 22 7/8 36-38 Revlon 45 1/ 8 A- Reynolds Met. 42 1/8 B 51-80 Riegel Paper 21 7/8 B 34 Schlumberger 761/4 A 90-130 ScovillMfg 483/8 B 65 Shell Oil 58 3/4 A 64-120 Signode Corp 29 A- 33-50 Southern Rwy58 1/4 B 77-104 Spartans Ind 26 1/ 8 27-36 Stevens, J. P. 52 3/8 B 52-75 Storer Broad 49 1/4 Sundstrand 23 7/8 Swingline A 48 3/8 B 54-70 B B 50-70 United Fruit 21 7/8 B Vornado 473/4 54 Vulcan Mat. 20 B 28 Warner Bros. Co. 35 1/2 B 50 Support 50 30 70-65 54-50 53-50 45 LOW-PRICED Amer. Bosch Audio Dev. Camp. Chib. Foote Min. Gt. West. Fin. Intern'l Pack. Ling-Temco Close 4/30/65 20 14 4 22 11 3/4 14 1/2 25 3/8 Qual- !!L B- B B Upside Obj. 40-50 29 44-62 Support 21 SPECULATIVE Close Qual- 4/30/65 Microwave 10 1/8 B Mohasco 20 1/4 B National Can 26 B Pacific Pete 11 B- Sbd W. Air 10 C Univ.Match 16 3/4 B Varian Assoc.14 7/8 B Upside Obj. 29 50-60 14-20 Support – ThiS Bulletin LS published (or your convcnjtnrt.. H.nd mio)mRtion nnd is nol nn offer to /lell or R sollcltlttJon to buy any seCUrities discussed. The Information IHIS Obt.flIDNI from source'! we hl'h(vc to 1101 te1mhle. but we tlo not ItUIHlI.nto't' its nCCUfH,CY. WRlswn & Co, Inc Rnd Its offic(ra, dnectors or employees moy have nn U'lten.st In or JIUr('hfUlt' IHld lieU the ht.'CurLtlcs to hcrt!m. WN-5I16