– 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 July 12, 1965 After two desultory trading sessions at the beginning of the week, the Dow-Jones In- dustrial Average advanced Thursday and Friday, closing at an intra-day peak of 885.04, just seven trading sessions after posting a low of 832.74. Thus, to date, at least inso far as the Average is concerned, almost half of the loss since the May 14th peak has been recovered. It is currently possible, on the base formed so far, to read an upside objective of '910 on the Dow. This, however, is probably only of a,cademic interest at the moment. It is much more likely that a new pattern will form around current levels, and the action of individual stocks will be far more important than trying to guess the course of the averages. Meanwhil – – any subStantial wealCri.essensuing Ieve1s woula-provide a further buying oppor– tunity. As readers of this letter are well aware, a good part of its comments and recommen- dations are based on technical analysis or the analysis of price action. Much of this analysis is highly complex, requiring charts, graphs, mathematical formulae and electronic computer A goodly portion of technical analysis, however, is based on simple common sense observa- tion – – much of which observation every investor could and should himself be making. For example, simple inspection of any long term chart of the Dow-Jones Industrial Average would have gone a long way toward preventing undue panic during last month's falling stock market. Such inspection would have shown him that, at no time in history, has a market con- tinued in an uncorrected uptrend for a long period of time, as this one did until mid-May, an then immediately entered into a protracted downswing. ceded by some form of distributional pattern in which the ar are invariably prer \jl reater or lesser period of time moves in a sideways trading area. that, at least in part, led this letter to become incre pects toward the end of June and to suggest tha the buying range. – — t u Ii plicated observation y 0 1 – 1C about short term pros 820 el on the Dow represented a e-recent-H-2-point-decline-is of no , significance whatever. It which contained the market fr tWtt the relatively narrow uptrend channel June 1965 is now complete and that the market has entered Ii . have previously suggested that one of the salient characteristics a 1de swings within a generally sideways trading range- the upperaild lower . t range yet to be determined. More precise forecasts of short term action can ro y be made as the pattern develops further. Another likely c cteristic of the new market phase will undoubtedly be vicious se- lectivity. A horizonta trend in the averages is usually not brought about by all stocks mov- ing sideways, but rather by some stocks moving upward and others downward. In such a market, the level of investment success achieved depends almost exclusively on what stocks are owned. Here again there are a few relatively simple observatims which any investor can mak For example, in the averages, the end of a phase was signalled by the penetration of the De- cember low, the last major bottom made in the Dow. Therefore, penetration by an individual stock of its low for the November-January period may, in many cases, signal the end of a phase for that stock also. Conversely, the ability of an individual stock to hold above the No- vember-January lows is a clue that that stock's uptrend may still be intact. A simple com- parison of the June lows lows is one which Is easy to make for the stocks in any portfolio and may well lead to the elimination of some weak spots. We have recently made a routine check of all major stocks that held above their No- vember-January lows in the recent weakness, and some of the results were interesting. For example, 15 of 23 Aerospace, stocks remained above their prior bottoms, as did 10 out of 13 in the Air Transportation group;-4 out of 5 Aluminums, 14 out of 19 Apparel, 10 of 10 Disti lers and 6 of 6 Soft Drink companies. Other industry groups in which substantial numbers of stocks remained above their previous lows included Air Conditioning, Building Equipment, Ethical Drugs, Electronics, Packaged Foods, Home Furnishings, Office Equipment, Publish- ing, Textiles, Tobacco and Vending Machines. Groups in which very few stocks were able to hold above their old lows includedAutomobiles, Broadcasting, Cement, Savings & Loans, Producing Oils, International Oils, Steels, Utilities and Rails. Dow-Jones Ind. 879.49 Dow-Jones Rails 200. 24 ANTHONY W. TAB ELL WALSTON & CO. INC. ThiS market letter is llubllshed for )'our convenience And mfOTmRtlon and I'! not .\1\ offer to sell or R sohdt.ation to buy Rny l!I('('untie!l dlseussed The In annntton WflS obtained from soure!..'!! we believe to I, r('llItble, l)ut \\c rio not. punrante(' It.. nC', unl('\ \V,\\;ton . Co, lnc lind (Iffi('('IS, .hr('('tors or employees may have fin mter!st in or purchase and sell the s('cuntll'S 1,.1 tn hCIlfl WN301

Walston &Co. Inc INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Stock Exchange Bnci Other Principal Stock and Commodity Exchanges TABELL'S MARKET LETTER COAST TO COAST AND OVERSEAS July 19,1965 At last week's intra-day high of 889.98, the Dow-Jones Industrial Average had recover- ed 57 points or just about half of the 112-point decline from the May 14th high of 944.82 to the June 29th low of 832.74. Normal technical corrections of broad market movements usual ly result in a one-third to two-thirds retracement of the previous move. A two-thirds retrace ment of the 112-point decline would bring the Industrial Average back to around the 906 level. This about coincides with a base count of 910. The uncertain factor in the present pattern is the sharply oversold condition reached in the recent decline. This could result in an above- average retracement. The extreme selling pressure evident in June markets has at least temporarily subsided and the market has taken recent unfavorable news developments in the international field in its stride; – – – In our opinion the market, as measured by the Averages, is now in a broad trading area that will continue for a considerable period of time. The outer confines of this trading area are not yet clear. It is possible that both the high and the low for 1965 were reached in the first half of the year, give or take a few percentage points. A broad trading area of this nature will necessitate an agile investment policy. It would indicate, from a technical viewpoint, sell ing stocks with unfavorable patterns on general market strength in order to build up reserves to buy favorably situated issues on general market weakness. This letter suggested, for quite some time, a policy of building up some cash reserves during market strength earlier in the year. Part of this reserve was available for purchase in the suggested 850-820 buying area last month. Further strength in coming weeks, if it occurs, should be used to eliminate un- favorable situations in order to build up buying reserves on weakness. As we have mentioned in recent letters, a simple met d 0 ci!ing favorably situated issues would be to concentrate attention on those el 0 eir individual De- cember lows. The Industrial Average reached a low ember as compared with the recent low of 832.74. From a technical oint, upt is still in effect in indivi- dual issues that fall into this category. Issues a ve s elow their individual December lows are in at least a important. Among the Standard & &recently are 0 i n a.broadersense, group action is also ps owing the best relative strength action 0' Aerospace ctronic Leaders Small Loan Companies Aluminum Gold Sugar Beet Refiners Appliances Home Furnishings Telephones Business Equipm t Oil (Domestic) Tobacco (Cigarettes) Containers (Meta lass) Packaged Foods Truckers Coppers Publishing Variety Stores Distillers Radio-TV Mfgrs. Vending Machines Electrical Equipment Retail Stores All of these groups have held above the December lows and, in addition, have shown excellent relative strength action. It is interesting to note that since the June-28th low, 45 common stocks have reached new high territory for the year despite the fact that the Average itself is some sixty points below the top. Among the more important industrial stocks that reached new high territory are American Can Delta Airlines Neptune Meter American-So. African Inv. American Sugar Eastman Kodak Jewel Tea Shell Oil Standard Oil of Indiana Atlantic Refining McKesson & Robbins Texas Instruments Beneficial Finance Merck Union Oil of California Carrier Corp. Motorola Xerox Most of these stocks are in the favorable group categories mentioned above. One important exception to the December low theory must be noted at this point. The Rail Average reached a December low of 202. 45 and penetrated this level late in May before the other averages. The low was 184.63. The downside indication of the broad October-March top was 185-180. In addition, the Rail Average has returned to the 1956 high of 182.54. Most individual rails also about reached their downside objectives. This group has been in a broad basin out period since 1957 and, technically, could support considerably higher levels. The group could react back to the 185-180 level but, at recent lows, has, in our opinion reached a majo support level and should be bought during periods of general market decline. Dow-Jones Ind. 880.43 Dow-lanes Rans 201 79 . . EDMUND W. 'FABELL WALSJON & CO INC This market letter 18 published for your convenience Rnd mformatlon flnd not an offer to or II. !IOIlcltation to buy any M'CurlUes The In. formation WRS obtnlned from sources we believe to be reliable. but we do not gtlRrRntee its n('curn('y Walston & Co Ine anti It.. offi('t'ls. dlredor'! or emJ'ltoyees may have an interest In or purchase and sell the secUritIes referroo to her('ln. WNSOI

lABELL'S MARKET 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 LETTER July.26, 1965 The market has shown normal technical action since the Dow-Jones Industrial Aver- age reached an intra-day low of 832.74 on June 29th. The rally to the July 15th high of 889.98 was a one-half retracement of the 112-point decline from the May 14th high of 944.82. The decline from the July 15th high to last week's low of 857.71 was a retracement of a little over half of the rally from the June low. Thus it would seem that the market is again in tech nical balance after the wide price swings since mid-May. Total volume of trading on the New York Stock Exchange on a ten-day moving average is now at the lowest point of the year. The emotional extremes that brought about the wide price moves seem to have disappeared at least for the moment. Selling volume, which had been moving.sharply higher sillce .tWril,. nasalsodeclihedsince the June there'has Deer. no great increase in buying – ..- volume. Last week's decline was brought about by a mild increase in selling volume and a sharp decline in buying volume. There is considerable bearishness in the market place – as witness the large increase in the short sales as reported last week. In June, this bearishnese was actively translated into actual sales. Since the June low, the attitude has changed to one of wait-and-see rather than active pessimism. The short term pattern of the market is interesting. With both the 112-point decline and 57 -point advance corrected, the market may be forming, in technical parlance, a head and shoulders bottom. On its first decline from the 944.82 high of May 14th, the Industrial Average dropped to 859. 13 on June 15th. This was followed by a quick recovery to 888.44. This high was followed by a decline to the June 29th low of 832.74. Since that time the mar- ket, at the July high of 889.98, has recovered back to the of 888. 44 and back to the June 15th low of 859. 13. In effect, this gives a patte of range between, .roughly, 890 and 860, with a head, or stick, on the his ing area has a dura- tion of thirty-one trading days with only three days tota w the 890-860 trading range. If this range holds, it would indicate t – selling wave was emotional in nature rather than caused by actual develop e . A' Y to move above the July 15th higt –would-indicate could, of course, easily be event, a testing of the June low fr -lows-This-potential-pattern ' below last week's low. In that There is no change in the downside po- I i I tential. The cated. cy i e have suggested since early June, is still indi- In last week' t we ntioned that, at the June 29th low of 184.63, the Rail Aver- age had reached a majo s rt level. The Average has since recovered back to 204.33. This is a recovery fro e June low of almost 110/0, as compared to 70/0 in the Industrial Average. The Dow-Jones Rail Average closed at 197.12 on Friday. From a technical view- pOint, the downside potential is 185-180. We believe this group has a very promising long term potential with below-average risk and should be bought on minor price weakness. We have included six rails in our recommended list mainly because of the yield factor. These are marked with an asterisk in the list below which includes a number of yield rails. We believe there is now an indication of higher price levels along with substantial yields. Atchison Chesa. & Ohio Denver, Rio G Great Northern Illinois Central Louis. & Nash. Price Yield PiE Ratio 32 5.0/0 11 Norfolk & West. 67 1/4 5.9/0 14 Northern Pacific 191/2 5.00/0 533/4 5. 60/0 12 14 Southern Pacific Southern Rwy. 471/4 4.20/0 12 Union Pacific 71 5. 60/0 8 Price Yield PiE Ratio 1263/4 5. 60/0 14 467/8 5.60/0 357/8 3.80/0 13 11 52 1/2 5. 30/0 38 4.80/0 11 10 In a somewhat different category are the merger rails like Atlantic Coast line, Seaboard Airline, Chicago Northwestern, Chicago Milwaukee St. Paul, New York Central and Pennsylvania. We believe there is a substantial long term potential in these issues also. Dow-Jones Ind. 863. 97 Dow-Jones Rails 197.12 EDMUND W. TABELL WALSTON & CO. INC. ThiS market letter is published for your Cf'nvemence pnd infOrmatIOn a.nd 18 not fl.n offer to sell or II. soIlflu..t,on to buy ftny dlscuued. The tn- formntlOn was obtaIned from sourC'('; we hdu'vl.' to 11.' rl'hable. but we do not KUarRntee Its RC'curncy \\ Alston &. Co. InC'. I\nd lis officels. dlre.'t.ors or (!JI'lpJoyees may hn.ve an mterest m or purchase And sell the referred to hert'ln WN.301

…. 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 August 2, 1965 Market strength in the latter half of the week was impressive. President Johnson's Vietnam statement on Wedn.esday evidently removed some market apprehension, and, from that point onward, gains were steady with a total advance of 18.21 points in the Industrial Ayerage from Tuesday's close of 863.53. A good deal of internal strength was demonstrated on the latter two days of the week. For example, on Thursday, 816 stocks advanced vs. 309 declines alld on Friday, 802 stocks posted advances vs. 315 stocks dropping. Ups ide and downside volum-e figures, as compiled by Scantlin Electronics, were also encouraging. Thes figures show ,the total volume on upticKs vs. ,total volume on dow.nticks. For Thursday. up- side was .3, 050, OOOsharesvs.downside volume,of 1,055; 000 shares. Friday's figu- res were 3,450,000 and 1,200,000. These latter figures are of some significance, for the history of the market since the June 30th lows is one of failure to produce any sustained buying interest. At the lows at -the end of June, the 35-day total downside volume was 101 m'illion shares. This figure has consistently declined from that peak and was down to 75 million shares as of Thursday. How ever, July's strength has been unaccompanied, to date, by any buying interest as evidenced by the fact that upside volume on a 35-day basis has been able to increase only from 66 million shares to 73 million shares. Obviously, if the present rally is to carry further, continued buying power must enter the picture. Meanwhile, the market continues to hold in a by the June low of 832 and the June and July highs around 885. Currently, u of this range would suggest 905 to 915, but the pattern a eIther. A month now has elapsed since the May-June 11. 8, and there has been time for some a'hd/a hich brought the Dow down sis on some of the character- Further analysis shows that tertiary variety, year when the Dow a reached in a year e skeptical of the stock a k w especially those of a secondary and times during 1964. In other words, in a 4, see many stocks making lows below the bottoms 525. There is little wonder that some investors remai All of this, ho er, goes to re-enforce a thesis reiterated by this letter repeatedly over recent years. This thesis holds that, ever since 1956, the action of the averages has been, in great part, meaningless. The theory is that different issues made major cyclical peaks at various different times during the 1956-1961 period – some in 1956, some in 1957, some in 1959 and some in 1961. Moreover, different stocks made cyclical lows at different time periods – a number in 1960, a larger number in 1962, and, when the list is finally complete, we will undoubtedly be able to find a large number of stocks which will prove to have' made their bear-market lows in 1964 and 1965. The interaction of all of these different stock cycles has produced fluctuations in the averages that, taken by themselves, mean ver little. It is the essential meaninglessness of the fluctuations in the averages which has, of late, confused a number of proponents of the Dow Theory which looks only at averages rather than the action of individual issues. If our theory ils correct, it once again points up the folly of continuing to hold issues that appear to be in downtrends relative to the market. despite the fact that these issues may have been bought at higher prices. In most cases, the hoped-for improvement is unlikely to materializ'e. Instea-d, issues with below-average prospects should be ruthlessly weeded out of individual portfoliOS and replaced by those issues with favorable fundamental and techhi- cal patterns. As an aid in selection, the August edition of our Recommended List will be in the hands of your Walston Account Executive by the end of this week. 1 Dow-Jones Ind. 881.74 Dow-Jones Rails 207.73 ANTHONY W. TABELL WALSTON & CO. INC. , fr , This mRrket letter is publlqherl (or your con,enwnce nli Ln(ormRtlOn and I' not an o(ft'r to Hell or R solicitation to buy Rny Bfturltles formation oLtnlned from we hdll'VI' to Il relmble hut llo not It!! U('curfl!'\ & Co, In!', anti Its officers, employees may have an mterest In or Ilurcha;t' .,nd sell th(. ,,\-''unlll''i rdl'l red to hell'tn, The in -…… or WN801 Walston &- Co. INVESTMENT BANKERS MUTUAL fUNDS MUNICIPAL BONDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS EDMUND W. TABELl'S RECOMMENDED QUALITY & LONG TERM GROWTH LIST August 2, 1965 Close .Qual- p/E 7130165 ity Ratio Yield Close Qual- p/E 0/0 7/30165 ity Ratio Yield Alum.Co.Amer. 70 5/8 Amer. Can 49 3/s General Elec. 100 3/s Gulf Oil 53 1/4 Paper 295/s 13 13 A A A 22 2.0 NatlCashReg. 16 4.0 Norfolk & W. 33 2.2 Radio Corp. 1333 16 – 4.0 – 7S1/4 129 1/2 34 -. A A A .A 2S 1.5 14 5. 6 23 2.0 3. 5–. -. 4. 5 PRICE APPRECIATION Close Qual- p/E 7/30165..!!L Ratio Yield Amer.Hospital S. 29 A- 29 1. 2 Amer. Potash 37314 B 14 3.7 Atchison, TOp. 32 7/s A – 11 5.0 Auto. Canteen 21 7/s B 21 3.6 Beaunit Corp. 40 3/s B 12 3.4 Cenco Instr. 30 Bt 26 1. 0 Clark Equip. 44518 A- 12 4.0 Clevite 43 3/4 B 9 4.2 CluettPeab. 713/4 Bt 16 2.S Copperweld S. 31 3/4 B 10 3. S Cr.owell Coll.363/A.-..B. …,17 Denver,R.G. 197/8 B 12 5.0 Disney,Walt 51 1/4 B 11 O. S Eaton Mfg. 49 5/s B 10 4.5 Elec.Stor. B 4S 3/4 A- 13 3.7 EIPasoN.G. 201/S B 14 5.0 First Charter 19 8 Fruehauf 29 7/s B 12 5.0 Gen'l Dyn. 41 7/s 11 2.4 Hewlett Pack. 30 3/s Bt 32 0.7 illinois Cent. 50 B 13 4.0 Int'l Min. C 54 3/4 A- 19 1. 9 Inter.Motor F. 29 1/4 B 11 3.4 Kansas City 1. 39 1/ S A- 9 5.0 Koppers Co 59 B 13 4.5 Korvette 34 B 16 Litton Ind. 93 7/s B 29 Close Qual- p/E 0/0 7/30165 ity Ratio Yield Lykes Bros. 20 1/4 B 9 4.0 McDermott 41 3/4 McGraw Ed. 31 3/4 Mesabi Tr. 13 3/s Metro Gold.M. 35 3/s Metromedia 34 Newmont M. 53 No.Amer.Car 2S B 12 A- 15 lS 14 B 13 A- 17 A 16 2.S 3. 1 5. 9 4. 3 2.0 2. 6 3. 2 Perkin-Elmer 551/4 B Raytheon Co. 23 12 2. 6 -RevIon 40-,.—-,A–1-4- -3.2- Reynolds Met. 413/4 Riegel Paper 21 1/4 Schlumberger 67 Scovill Mfg. 45 3/4 Shell Oil 627/s Signode Corp. 30 lIs SouthernRwy 553/s Spartans Ind. 2S 7/8 Stevens, J. P. 4S 3/s Storer Broad. 53 Sundstrand 24 1/8 Swingline A 43 5/s B 17 B 10 A 14 B 14 A 17 A- 13 B 11 16 B 11 B 14 B 11 B 14 1.7 3. 7 2.4 4. 3 2.S 3. 6 5.0 0.5 4. 2 3.7 4.2 3.0 United Fruit 20 1/4 B 55 Vulcan Mat. lS B Wallace & Tiel 32 A- Warner Bros.Co. 31 7/s B 10 16 10 4. 3 2.S 3.1 LOW-PRICED SPEC ULA TIVE Amer. Bosch Audio Devices Camp. Chib. Foote Mineral Gt. West Fin. Intern'l Pack. Ling-Temco Close Qual- 7/30165 !ty 20 7/s 13 1/s B- 4 1/2 19 1/s 9 7/s 11 1/4 B E'.!' 25 1/4 p/E Ratio 19 39 21 17 S r.,t 11 0/0 Yield 2.4 1.0 -4.5 2.0 Close Qual- p/E 7/30165 ity -Ra-tiC' Microwave 11 B IS Mohasco 19 3/4 B 14 National Can 25 7/s B 15 Pacific Pete 9 1/4 B- 40 Sbd.W. Air S 7/s C 9 Univ.Match 15 B 16 Varian Assoc. 17 1/s B 47 pIE Ratio Compiled at latest 12 months earnings. I. Yield 3. 3 1.6 Tins Bulletin IS Ilubhshcd for 'Ollr conVCllh'r'lce lind m(ormntlon nnd IS not nn offer tf) sell or a sohclLRtLOn to bu) an) !ecUrities discussed. The mformntJon was obtnined from sources \loC bdwvt' to III relwhlt. but WI do not Jtu.lrnnlt't' Its nc,urncy Walston & Co, Inc. and Its officers. directors or ma) hl\ve an mteresl m or IJurchcl.'II.! nnu t-dl the bt.'Cunties rderred to herem WN-916

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 August 9, 1965 Although-the-Averages,.essell.tially, moved sidewayi;;;-last week's internal market strength was fairly impressive. Although Friday's close of 882.51 in the Dow-Jones Indus- trials was little changed from the week earlier close of 881. 74, advances outnumbered de- clines on all five days of the week and the short term outlook continues very much as out- lined in last week's letter. On June 14th this letter suggested a number of stocks for purchase if and when sup- port levels were reached. The weakness in late June brought most of these stocks down to those levels and they were added to our recommended list. They include Perkin-Elmer (58 1 I 4) suggested at 48, Interstate Motor Freight (30 1/2) suggested at 28,.3!!!d '-.-. .', — Perkin-Elmer has advanced the most since the original recommendation and, at 23 times latest 12 months earnings of 2.47, is not cheap on a statistical basis, but the far- above-average growth rate in the special scientific fields it serves makes it appear attract- ive for accounts interested in capital appreciation. The company is one of the leading pro- ducers of dptically-related scientific instruments. Perkin is believed to hold nearly a third of the market for ins truments of this type and it is a market that is projected by most anal) to be growing at an annual rate of around 15. The company's management ability in this field is a matter of record and we continue to feel that the stock is among the more favorabl situated growth type equities. Truck transportation is also a growing field, but the record of a number of companies in the area is one of conspicuous failure to take advantage potential. Two pre requisites for a successful trucking operation would appea 0 r ute structure and excellent operating management. Interstate Motor B s ess oth of these qualities. The route structure, which extends from the East Co the les, is heavily concen- trated in the industrialized areas of d , which account for more than half of total mileage. Freight volume is both as to commodities and cus- tomersAn of manage- efujis this of a time system which wil I n r e's terminals with a battery of computers in the company's genera fi t t se of high-speed data communication lines. Informatio on all shipments bei d eo be noted, updated and instantly available, and complete management control re 111 be generated. Scheduled for introduction once the system has been in operation e advanced Operations Research programs to improve earnings performance; That performance, to date, has been, of itself, impressive. Earnings for last year reached an all-time high of 2.50 per share, culminating four years of solid growth, and 1965 results could move as high as 3.25. Thus, the stock is selling at 9 times estimated 1965 results at a time when prospects for further earnings improvement are bright. It is difficult to understand why a company of the caliber of Wallace & Tiernan sells as cheaply as it does. It is partially a drug company, partially a chemical company, and par- tiallya food processing machinery company. Yet its growth rate over the past ten years has been superior to that of many leading companies in all three fields. It is admittedly not im- mune to cyclical fluctuations (earnings declined in both ang 1f161); bllt, With this except- ion, net income has shown satisfactory and steady growth in every year from 1954, when 82 per share was earned, to 1964 when 1. 78 was shown, and, for 1965, results could expand further to 2. 10. About one-third of the company's sales are accounted for by the equipment division which manufactures chlorinators and food handling machinery including the Do-Make machine, an automated procedure for the making of bread dough. Sales of this product have, ,due to industry conditions, failed to live up to expectations, but it is believed, nonetheless, to have long range potentials. The chemical division of the company produces organic peroxides used in plastics manufacture, and other specialty items. Drugs are divided into ethical and proprietary lines. In the latter area W&T has added to its highly profitable Desenex, the leading athlete's foot remedy, the Pharmacraft Laboratory Division of Seagram, which produces a number of famil iar products, including Coldene, Fresh deodorant and Allerest allergy tablets. The stock, whic sold for 33 times earnings in 1961, is now available for 16 times estimated 1965 results and has a favorable technical pattern with a long term objective of 43- 63, Dow-Jones Ind. 882.51 ANTHONY W. TABELL 1 convenumce and Information and\is not an oW 10 'tJAT ti1t dil!eUSSed. The in- formation was from sources we believe to te reliable. but we do not guaranibtM accUrRCY Rnd Its office(s. dLredors or employeell may have an mterest In or purchase Rnd sell tlle securities ref;rred to hereIn. WNSOI I j I

.- TABELL'S MARKET 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 LETTER August 16, 1965 Breadth of the market action'haS'improved considerably in recent weeks. In each '01 the past thirteen trading sessions the number of advancing stotks has exceeded the number declining. In most instances the favorable margin has been quite substantiaL Our breadth index has moved sharply above the previous rally high reached on July 15th. This improving breadth action has not as yet been reflected in the Dow-Jones Industrial Avera-ge which has failed to better the July 15th intra-day peak of 889. 98. The reason is obvious. There have been sizable advances to new high territory in a large number of stocks not in the 30-Stock index. The only stock in the Industrial Average to reach a new high for the year in the past two week;s is Eastman Kodak. During this same time period, two stocks in the Average,John -Manville and Union year. Institutional inve..st6rs, — in the main, remain quite cautious and buying has been reflected mainly in special situation stocks. The technical pattern indicates to us that the market is acting better than the Aver- ages, and the improving breadth action will result in a confirming upward move in the in- vestment issues before the present advance is completed. Our general market opinion remains the same. We believe the Averages will remain in a broad trading area for a considerable period of time with diverse price action in indivi- dual securities. We would use periods of strength to eliminate stocks with unfavorable tech- nical and fundamental patterns. We would use periods of weakness to buy stocks with good long term fundaI!1-ental and technical patterns. We do not envision either a broad sweeping advance nor a cataclysmic decline. The technical pattern, in our opinion, is quite different from the 1961 top. The overspeculation that existed then relatively wide price swings in a comparatively narrow tr in today. We expect 09 50 points in the Do Jones Industrial Average. To put it another way, 1 an a . een-point swing in a stock selling around 88. After this broad consolidati se s pleted, we would expect an upside penetration of the range and higher p 'ces e half of the present decade. This letter advised selling on stren t, he e part of the year, and building up . . .ln Junew.e-believ-ed . .e – p con– 1 sldered that area as a buy n th Wtra-day low was 832.74. At that point the market was deeply oversold. I From a technical view advance will carry to higher levels. . a ficient base to indicate at least an advance to the 910-920 area. . The stocks in ec ded list, like the general market, have shown diverse act ion, but a fairly sizab r have reached new high territory. Quite a few are at advan- tageous purchase levels long term holding. Aluminum Co. of Amer. (70 1/4), National Cash Register (79 3/4 nd Reynolds Tobacco (41 1/4), 10 our Quahty and Long Term Gro.wt section, fall into this category. In the Price Appreciation section, Copperweld Steel (31) wlth earnings of 3.03 for the past twelve appears be at a reasonable pxi;e Earnings for 1965 will probably remam at around the present level, but we antlclpate hlgher earnings in 1966 and 1967. Selling at about ten times current earnings, the stock appears undervalued considering the long term potentiaL Mohasco (20 also undervalue at present levels, in our opinion. The stock has moved sharply smce our ongmal recomme dation at 13, but the rise has been justified by the advance in earnings. The stock earned 1. 29 in 1964 and estimated earnings for 1965 are around the 1. 70 leveL Sur;dstrand 1/8 has done little marketwise until recently. It has broken out of the 24-19 area 10 WhlCh It has held for over two years and shows an improving technical pattern. Corp. (31 1/8J' one of the two leading manufacturers of steel strapping, is selling at hlrteen t1mes of 2.29 for the past twelve months. Here again both the fundamental outlook and the techm- – cal pattern are favorable. Storer (6.5 3/4) has moved up from June low of 45 to a high of 66 1/2, due to acqUlsltton of c;mtrol of Northeast Alr.l1Oes. The stck originally entered our list at 42. The techmcal objective was. 66-74. Due to ltS proxlm ity to this area, we are dropping it from our recommended hst. In our Low-Pnced Specu- . lative list improved technical action is being shown by Microwave Assoc. (14) on the Amen can Stock 'Exchange. This stock sold at 60 3/8 in 1961 dur10g the glamour stock craze. dropped to 8 in 1962. Since late1-1.9.62,d.tms,held in a range bordered by 8112 and 15. Ear.n' ings have been improving with 43 shown for the nine months ended June 30th. The stock lS extremely speculative but looks interesting technically. Universal Match (15 7/8) has lon.g term appeal as a speculation. UMT reached a high of 80 3/410 1960 and a low of 10 5/8 1.n 1962. Like Microwave, it has built up a substantial potential base in the 11-20 range. Patienc may be required. EDMUND W. TABELL (Written Noon Friday, Aug. 13th.) Dow-Jones Ind. 888. 82 WALSTON & CO. INC. DOHr-!ooes Rails 215 32 ThiS market Jetter is published for your convemenc(! nnd information and IS not an offer to sell or a solicitation to buy any 8eeUritle!l dlseuued The in- formation was obuuned from sources we bt.hcve to l rehnble. but we do not guRrantee Its accuracy WRiston & Co. Inc. And lUi officers. directors or emllJoyees may have an Interest in or purchase and llell the SeeUTltlcs referred to herem

– – Walston &- Co. —-Inc — INVeSTMENT BANKERS MUTUAL FUNDS MUNIC'''Al BONOS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges TABEll'S MARKET lETTER OFFICES COAST TO COAST AND OVERSEAS August 23, 1965 After last Friday's sharp breakout to a new closing high, the Dow-Jones Industrials continued their advance in the early part of last week. Moderate profit-taking entered the picture on Thursday and Friday, and the week's close was 889. 92. For the shorter term, the upside objective for the Dow remains 910-915. This pattern may broaden further. However, the main area of concern should continue to be the action of individual stocks. For many years, one of the primary concerns of the security analyst considering a stock was the stock's yield. The level, history and stability of a stock's dividend was considered to be one of the major factors in determining its investment quality. As short a time ago as the early 1950's, the basic rationale for increased institutional purchase of com that blue chip equities provided an income more tharitWice afforded by corporate bonds and other forms of investment. Years and increased emphasis on growth have changed all this. Bonds of highgrade companies now often provide greater income than the same company's stock and individual investors can obtain more generous income from sav i ngs institutions than from many equiti This is due, of course, to the realization that fixed income investments do not provide the growth potential and inflatiOn protection obtainable from a well-selected stock portfolio. Still, there are many investors, who, wh ile wishing this protection, still require a certain level of dividend income. Many stocks in our recommended list combine yields of 40/0 or better with attractive capital gain potential ana some of these stocks are reviewed below. One of the first groups that comes to mind for the investor seeking both growth and generous income is the rails. To our way of thinking, the bination of fundamental and technical attractiveness, and, f r an interesting comn, no fewer than six carriers are in our recommended list. They are ster 8 1/4), Atchison, Topeka & Santa Fe (32 1/2), Denver & Rio Grande ( al;8), i Central (525/8), Kansas City Southern (41) and Southern Railway (56 earnings and yield around 50/0 –in most cases, -merger-savings c ell between 9 and 14 times mo rom a fundamel1tal point of view, -in – ents-tomanY1'oads.-A-better-regu- – latory climate would appear labor restrictions appear slow t . competition for traffic and archaic Technically, the rails at their low of last June had reached all trend. Mesabi Tru i.a i and appear now poised to resume a long term up13 3/4) are a unique security which, we believe, deserves a place in the portfoli of y income-minded investor. The Trust's income (all of which is paid to certificate h rs under the Indenture) consists of royalties from production of taconite pellets from innesota properties, leased to Reserve Mining Company. Republic Steel and Armco, the joint owners of Reserve, are obligated to take Reserve's entire output and capacity is being expanded. A unique clause in the lease provides for price escalation based on inflation. In 1964, 77 was paid in royalties on the Certificates, and a similar amount is expected for this year, providing a 5.6 yield. Moreover, a large portion of the income is, after a certain holding period, exempt from ordinary income taxes. 1964 was the first year in the past decade that per share earnings of Re olds Tobac (43) did not show year-to-year improvement. This was, of course, due to the affect of re- ports on the dangers of cigarette smoking, which penalized both third and fourth quarter earnings with the result that 3.02 was reported vs. 3.13 in 1963. For both of the first quarters of 1965, however, again improved arid results for the full' year are expecte to resume their upward trend. Meanwhile, diversification continues with the recent acquisition of Penick &Ford. As the leading factor in its industry, Reynolds, we feel, deserves a higher investor recognition, yet current prices make it available on a 4. 2 yield basis with a payout ratio of less than 60. Other stocks in our recommended list that are suggested for income investment to- gether with their prices Can (51 7/8) 3.8, Clevite (44 5/8) 4.0, Eaton Mfg. (50 1/8) 4.3, El Paso Natural Gas (19 7/8) 5.0, Royal Dutch (37 3/8) 4.8 and Vulcan Materials (18 3/8) 4.3. Dow-Jones Ind. 889. 92 Dow-Jones Rails 215.67 ANTHONY W. TABELL WALSTON & CO. INC. Thl8 market letter 18 ;published for your convenience II.nd information and IR not an offer to eell or 8OlIcitation to buy any rteeurltlea dlseussed. The in. formation was obtam(!(. from we b(!heve to 1t- reliable, but we do not guarantee Ita accuracy Walston & Co.. Inc and ih offiters, directors 01' etnptoyee8 may have an Interest In or purchA.8e and seU the secuntles referred to herem. i' i ,

Walston &- Co. 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 August 30, 1965 Trading volume totals present a rather interesting technical study at the moment. In our letter of August 2nd we mentioned the upside and downside volume figures computed by Scantlin Electronics. These figures show the total daily volume of trading on upticks against the volume on downticks ofalhs;tocks,listed on the New York Stock Exchange. We, in,ouI''' ,. technical work, adjust these figures to 35-day moving totals. At the June low, the total down side volume for the past 35 trading days reached a high total of 101 million shares. This downside volume total recently dropped down to a low total of 53 million shares. This is the lowest level in over a year. To us, this indicates a definite drying up of liquidation. How ever, up until now, there has been no comparable increase in upside volume. Upside volume ona 35-oay increasea antle' June low to a total of only 80 million shares as of Thursday. This is well below the high total of 106 million shares of upside volume reached in March. It would appear that the advance from the June intra-day low of 832.74 to Friday's intra-day high of 901.88 has been brought about by a cessation of liquidating pressure rather than by a substantial renewed buying interest. The figures noted above relate to the volume of all stocks traded on the New York Stock Exchange. While 35-day upside volume has lagged, it is substantially above 35-day downside volume. In addition, we also compile 35-day trading volume totals on the Dow- Jones Industrial Average. While downside volume of these 30 market leaders has also drop- ped sharply, the upside volume has shown even less increase than the totals mentioned in the first paragraph. This indicates that the general market has been acting better than the inves,tment stocks in the averages. This is borne out by stantiated by the number of new highs reached since the J index, and further sub. inlie July 1st, 216 stocks have reached new high territory for the year. Of thaO, I v e components .of the Dow-Jones Industrial Average. Three of these, Am Ca , tman Kodak and United Aircraft, reached new high territory by a ub 'al gin. American Tobacco and Westinghouse Electric reached a fractional . h. , u e J. '''-has-been.fuI'-l'l,isfied.by,stoGks.not,in, the Dow-Jones Industrial recent leaders have been gro have been laggards. Many of the overexploited in the 1960-1961 advance am declined sharply Those issues that v t y have done little marketwise since the 1962 lows . ong term growth potential have built up substantial potential base patte er st three years and have broken out of the patterns on the upside. The advance s b steep in many instances, and probably some consolidation is needed somewhere alo e line. The failure of the investment issues to participate in the earlier stages of an in ermediate term advance after a steep decline is not an unusual tech- nical phenomenon, particularly when the market is probably in the later stages of a long terr advance. An intermediate term advance of the present nature usually tops out with an ad- vance in the better-grade issues while the more speculative leaders go through a topping out process. We would expect the investment issues to show greater strength over the near future with the Dow-Jones Industrials reaching at least the area, and possibly higher We have not changed our long term opinion. We continue to expect a wide trading area for the foreseeable future. We considered the 850-820 level 'S a buying range and would be in- clined to lighten positions on further strength. However, ,we would wait until some signs of technical deterioration appear. This has not yet occurred. The stocks iii'olu' recommended list have probaBly shown above-averagection. Quite a few issues in the list have recently reached new high territory for the year. Included in this group are American Can, Cenco Instruments, Cluett Peabody, Crowell Collier, Litton Industries, Microwave Associates, National Can, Perkin-Elmer, Radio Corporation, Raytheon, Reynolds Tobacco, Shell Oil, Spartans Industries, J. P. Stevens, Sundstrand, Swingline and Varian AssociatesnStorer Broadcasting was recently dropped from the,list – at 66. We also have our quota of backward.lssues and t.he followmg SW.ltches are suggested Clark Equipment 45 1/4) into Clevite (44 3/8), Lykes Bros. (20 3/8) into First Charter Fi- nancial (22 7/8) or United Fruit (201/2), Metromedia (353/8) into Korvette (325/8), North American Car (271/4) into Signode Corp. (291/2). Dow-Jones Ind. 895.96 Dow-Jones Rails 219.18 EDMUND W. TAB ELL WALSTON & CO. INC. ., This market letter HI publlshed for YOUr convenience Ilnd informatIon Bnd IS not an offer to lIell or II. solicitation to buy Rny securities diBeuBlled. The in- formation was obtained from sources we to lit' rellahle, but we do not gUarantee Ita accuracy ,'alston & C(I. Inc and Its officers, directors or employet.'s may have an interest in or purchase and sell the securities referred to herem WN301 j t -. ,Xl.tit. –

'''alston &- Co. INVESTMENT BANKE'S ,y,UTU;.l fUNDS UNICIPAl 80NDS Members New York Stock Exchange and Other Prtncipal Stock and CommodIty Exchanges COAST TO COAST ANO OVEIl.SEAS TABELl'S MARKET lETTER September 7, 1865 Last week's market action was impressive. In the early part of the \I'eek, despite \\'eak- ness in the Averages, advances outnumbered declll1es indicating underlying market strength, and, on Thursday and Friday, this strength \I'as reflected in decish'e strength in the .-\ver- ages on impressive volume. Despite the fact that at Friday's high of 910.28 the Dow-Jones Industrials were close to our shorter term upsIde obecthe of 910- 915, further strength in the market leaders is possible..b.eor.e.the decline tops out. In our opinion AMERICAN-TELEPHONE & TELEGRAPH COMP.-\NY ( 67) represents an interesting purchase at present price levels . .-\t first glance, this \\'ould appear to be a arather dull selection. There is no doubt in most people's minds that .-\merican Telephone is prime investment issue, but the genera'l -thought is that it is an stock with a minimum opportunity for capital appreciation. Certainly, American Telephone is not to be regarded as a trading vehicle, but as an investment holding for long term capital appre ciation, it has outperformed both the market and the economy. It is being added to our rec- ommended list. Since 1947-1949, revenues of American Telephone & Telegraph have increased 299, while gross national product has increased 148. Revenues have grown in every yea r since 1932. Population growth, technological progress and a rising standard of living are favorable factors in the long term outlook. I As far as market performance is concerned, Telephone reached a high of 31 in 1955 I after adjusting for stock splits in 1959 and 1964. At present price levels around 67, the stock I Ihas shown a price appreciation of 116 over the past ten cirAverage reached a high of 490 in 1955, and at the present 1 e Industrial 8 5,Ohas advanced 83 in the past ten years. C\, II In the past ten years, American Telephone & s have more than from 4.7 billion in 1954 to 10.3 billion in share for the same period ; tdid not show a comparable rise. 1954 earnin er a' ing for the two stock splits, were -comparoe4-tG-3.-24..fur-thef-1im, 1'.6 … 9 ,- or a r-ise-of-onl.y.4320/0, -This-has beel.,.L largely due to the dilution b \ock'1'eringsduringthepastdecade.Rightsto stockholders to buy additional m bonds were issued in 1955.1956, 1958, 1961 and 1964. If t exercised and the stock purchased, the capital ap- preciation would Indications are that pc n e over the ten-year period than that mentioned above. y not have to resort to as much equity financing in the future as in the past be aus the heavy flow of internally generated funds. This would re- duce the amount of dilu' and indicate a more rapid rate of earnings increase. The increase in long distance calls has more than offset the rate reductions that went into effect on February 1st. Estimated earnings for the fiscal year ending November 30th are 3.35 a share. At present levels of 67, the stock is selling at twenty times estimated earnings for 1965. Since 1964, the PiE ratio has ranged between 20 and 24 times earnings, so the stock is now selling in the lower part of the range. The present PiE ratio is considerably higher than that which existed before the late 1950's when the new dividend policy was initiated after 30 years of stability. Dividends have been increased by small amounts several times since 1959 when the first increase occurred from the 1. 50 dividend paid for a thirty -year period. At the present 2.00 annual dividend, the yield is roughly 3 at 67. There is no indication of an increase in the dividend in the im- mediate future, but the anticipated long term growth-inearnings spould result in an eventual higher payout. From a technical viewpoint, the stock appears to be forming an accumulation base.After reaching a high of 75 in July, 1964 on the news of the stock split, Telephone has held in a narrow trading area since September ayear ago. The high of this eleven-month range has been 70 1/2 and the low has been 65 3/8. The stock, at present levels of 67, is below the 1961 high of 68 1/4. Ability to break out of the recent trading area on the upside would indicate a move to a higher pnc't pIateau. Most of the issues in our recommended list are showing above-average action. In addition to the 19 issues listed last week, four more issues in the list reached new high territory for the year. They are American Bosch, Automatic Canteen, First Charter Financial and Great Western Financial. A new compi ete recommended list will be available this week from your Account Executive. EDMUND W. TABELL Dow-Jones Ind. 907. 97 WALSTON & CO. INC. Dow-Jones Rails 217.75 Thill market lettef IS Jlubllshed for Our COnH'nll!llCe nn,' Information find 1'1 not lin ofTl'1 (olmnhon WllS oiJtnln(!d from we I,d,e\(' to be rell!!,le but \I.e do 1I0t eml'lloet!s rna)' hU\'e an Interest In or purchase and sell the rt'felr(-',\ to het'III, to or It ;OhCltRtion to buy Any 8e('Uf.tU'l'! dlS('us'Iffi The )1\. Its HN'UI,lr\ ,\;. Co Jill' flll,l ,1Ln', 01 \\ N301

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 QVERSAS TABEll'S MARKET lETTER September 13, 1965 The market strength continues. At last week's intra-day high of 924.00, the Dow- Jones Industrial Average had recovered some 80 of the precipitous drop which began in mid-May and lasted until the end of June. The new highs reported daily confirm the fact that many stocks have, indeed, been outperforming the Averages. All this has, no doubt, confounded those who were proclaiming the immediacy of a bear market when the Averages made their June lows. It is now nec'essary to guard against making the exact opposite error. As strength continues, and the May-June unpleasantness recedes further into the mists of memory, there will undoubtedly be forecasts assuring a rosy future and an immediate substan.tial rise. Such predictions are likely to turn out as disastrously as those of the Cassandras who prophesied gloom and doom around the June low In this connection, it is worthwhile to quote the July 6th issue of this letter. At that time we said The uptrend channel from the October, 1962 low has ended and will be replace by a broad trading arESa.' with wide price swings both up and down. During this period the action of individual sto'&ks will be far more important than swings in the market averages. With the Average now some 10 higher, we see no reason to change this basic opinion. The recent announcement of the proposed merger between the Norfolk & Western and Chesapeake & Ohio Railroads was one of those rare major developments which took the fi- nancial community completely by surprise. Overnight, it became necessary to revise one's thinking almost entirely as to the ultimate future of Eastern railroading since, if the merger is eventually consummated, the East will be dominated by two major railroad systems in- stead of three as had heretofore been supposed. With e p i i 'the proposed merger terms were fairly well in line with the market appraisal 0 h lYing securities. The exception was, of course, the valuation based by C & 0 vs. the N & W. Chesapeake & Ohio common d Directors on the ' sharp runup, but has since settled back and is now selling for e value of Norfolk & Weste despite the fact that the merger calls for of C & O. Thus, if the merger wer,e & &;N W's market value, each C of. 5 N & W shares for each share iately, and there were no ,change in receive over 90 in Norfolk stock. The fact that the course, testimony to the fact that the mer- ger will not take all of the complex's c In ct, years of hearing and discussion remain before e ed. Nonetheless, the merger is interesting, to say the least. It would crea 0 e llroad complex with 26,000 miles of road, gross revenue close to 2 billion, an a n come (based on 1964 figures) of around 130 million. This would work out to appr a tely 8. 50 per share of new stock. According to the railroad,s' own estimate, 50 mi ion of merger savings would be involved (more than 3.00 per share). It is, of course, impossible to say at this point what additional revenues might accrue to the combined roads through changes in the traffic patterns. One of the most significant things about the proposal includes a plan for absorption of the Delaware & Hudson through merger and of four problem roads through a complex holding company setup. This last is contin- gent on a number of conditions, including changes in the tax laws allowing the merged system to utilize the weaker roads' tax loss carry-forwards, and upon solution of commuter prob- le'ms. It is significant that the N & W-C & 0 proposal is the first concrete one for the ulti- mate absorption of the deficit-ridden commuter roads ardently desired by regulatory au- thorities. N & W has, of course,-been-in'our recormnended list for some time and in the light of proposals, it seems worthwhile to re-examine our thinking toward C & O. The 4.00 divi dend on the latter has been paid for eight years and provides a 5.6 yield at current prices, Accordingly, downside risk appears limited. The road stands to benefit from the ultimate merger with its affiliates Baltimore & Ohio and Western Maryland and, as noted above, the work-out value for the proposed N & W merger is considerably higher. N & W is a better quality road by most standards, and those investors concerned primarily with this aspect can retain it. For those more concerned with long range capital gains, however, we are dropping N & W from our recommended list and adding C & O. Dow-Jones Ind. 918. 95 Dow-Jones Rails 216.21 ANTHONY W. TABELL WALSTON & CO. INC. ThlR market letter iR Ilubhshed for )our t'onvenLeJ1ce and mformatlon and 1! nf')t .m offer to sell or a solicitation to buy any discussed The In. formntwn was obtmned from sources we bdlt''.c to l.t- reltnble. but we do not guarantee Its \\'nl'lton & Co. Inc find Its offkets. dlf.'('tors or cmloyee'l may have an mterest In or purchase and sell the o;tcuntlpt; to WN301