Walston &- Co. Inc UNDERWRitERS MUNICIPAL BONDS MUTUAL FUNDS Members New York Stock Excha nge and Other Principal Stock and Commodity Exchange. OFfiCES COAST TO COAST AND OVERSEAS TABELL'S RECOMMENDED LIST September 21, 1966 This edition of our Recommended List gives long term technical upside objectives, plus indicated support levels or shorter term downside objectives. In all cases we believe the stock would be attractive for purchase at the levels given in the support column. An asterisk in the Upside Objective column indicates that either the objective is unclear, or that the stock has not yet broken out of its base formation. — . . – -T -. Close Qual9/20/66 – Upside SupObj TERM GROWTH c. .- Close Qual- 9/20/66 Alum.Co.Amer. 71 3/4 Amer. Can 491/4 Amer. T & T 51 3/8 Goodyear Tire 49 1/2 Gulf Oil 54 1/2 B B A A A 110-190 68 80 45 46 82 45-43 92 50-45 Inter.Paper 257/8 A- Nat'l Cash 68 A Parke Davis 26 5/8 A Reynolds Tob. 35 3/4 A Royal Dutch 34 1/8 A – '0 — Upside Sup- Obj. port – 65 -78 26 88 32 PRICE APPRECIA TI ON Close Qual- Upside Sup- 9/20/66 ..!!L. Obj. port Close Qual- Upside Sup- 9/20/66 Obj. port Air Reduction Amer.Potash – Bell & Howell Clevite Corp. Copperweld S Crowell ColI. 57 3/4 31 3/8 42 1/2 41 1/4 24 3/4 483/4 A- 110 B 60 A- 60 B– B B B 64 52 28 38 40-38 22-20 45 McDermott, J. 68 B Mesabi Tr. 12 3/4 – Metro-Gold.M. 27 1/4 – , Olin-Math. – Revlon 39 1/4 A- Reynolds Met. 46 B Riegel Paper 17 3/4 B 104 38 1-30 94-104 34 60 – 25 -4 38 38 17-16 Denver, Rio G 17 7/8 Disney, Walt 47 3/4 Eaton-Yale T 25 1/4 EI Paso N. G. 18 Ex-Cell-O 43 3/4 Genl Dynamics 44 Gillette 35 Illinois Central 66 5/8 Koppers Co 243/4 B B B B A – A- B B 44 100 39 90 80 114 62 17 40 – 40 – 30 58 22 Robt. Controls 28 1/4 B Schlumberger 44 1/4 A Sharon Steel 30 B- Shell Oil 60 1/8 A Signode Corp. 31 3/4 A- Southern Rwy 43 3/4 B Sundstrand 48 1/2 B Union Camp 41 3/8 B United Fruit 31 7/8 B Wallace & Tier. 36 1/2 A- 59 74 e) 75-120 50 108 70 92 44-70 64 26-25 42 26 55-50 30-28 – 42 40-38 , 30 '30 Amer.Bosch Camp. Chib. Chris-Craft Microwave SPEC U'…ATIVE PRICE .APPRECIATION Close Qual-. 9/20/66 20 5 3/4 17 14 1/2 1 (1 , – B- B Sup Obj. port -''''19 18 5 46 15 40 12 . — National Can Pacific Pete. UMC Indus. Varian Assoc. Vulcan Mater. Close Qual '9/20/66 ity 21 5/8 9 5/8 13 1/2 35 17 3/S B B- B B B Upside – Obj. 52 46 54 28 Support 18 – 13-12 – 15 – This Bulletm IS pubhshed for your eonvcnll'nce Rnd mformatlOn nnd IS not. nn offer to sell or II. soliCItatIOn to bu' any st.'cuntle5 dIscussed The mfonnnlum was obtained from sources we bdu.'ve to he lehnble, but we do not guarllntec Its accuracy Wa.lston & Co., Inc. and Its officers, directors or employees may have an Interest In or purchase Rnl' !leU the SI..'euntles referlcd to herem WM-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 September 23, 1966 AIR REDUCTION COMPANY, INC. Current Price Current Dividend Current Yield Long Term Debt Common Stock 56 2.50 4.5 124, 611, 393 5,162,183 shs. .u After reaching a 1962 low of 45 1/2, Air Re- duction Company, Inc., common stock held in a relatively narrow trading range, bounded by 48 on the and d1o9w64n.sidTehaendup6s0idoenptohteenutpiasildoef through 1963 the base forme during this period was 110. In early 1965, the Sales- 1966-E—, 420,.000,000— ,stock,.br9keouLoLthis,base on the upside-and'-11 Sales- 1965 376,800, 000 high of 78 1/2 earlier this year. The Earn. Per Sh. 1966-E 5.75 technical breakout coincided with a sharp turn in the fortunes of the company. Per share earnings, Earn. Per Sh. 1965 5.01 which had been essentially flat for the eight years Mkt. Range 1966-1957 91 1/2-45 1/8 1958-1964, rose sharply in 1965, reaching 5.01 vs. 3.68 in the previous year. Further growth has been experienced in 1966. Yet despite the sharp earnings improvement, the stock forme a short-term top in the 78-70 area, and, under pressure of the general market weakness, broke out of this top on the downside, reaching a low of 52 1/4 a few weeks ago. Not only wa this low the downside objective of the top mentioned above, but it also coincided with strong support present from the original base. It almost appears as if investors have been offere a second chance to purchase the shares of this company embarking on a new phase of expansion. appear to be just 0 As suggested above,Air Reduction's earnings for the first half show 2.75 earned per share vs. 9,0 t'n e 0 win 1966. Results 1 a for the full year we are estimating results in the 5.75 area vs. r Reduction common is thus available at less than ten times estimated e lowest PiE ratio accorded the comes at a time when substant over the next few years. Airco's largest s1. at ry is industrial gases, i. e. oxygen and nitrogen, and demand for the s e to increase rapidly from here into 1970. For oxygen, the biggest single cu r' t teel industry which is undertaking major conversions to basic oxygen productio due ubstantial cost, savings. Between now and 1970, the steel in- dustry's demand for ox is expected tC' grow at the rate of 20 a year, and insulation is provided from a downt rn in steel production since the more efficient oxygen furnaces will be the last to be shut down. In addition to steel, the chemical industry is also becoming an important oxygen user. The other major industrial gas, nitrogen, is perhaps even more interesting. Virtually a waste product as short a time as 6-7 years ago, this gas has been the subject of a growing demand in the aerospace, food processing and chemical industries. The long range potential in the food freezing field is especially interesting. Air Reduction IS other products should also be subject to increased demand. Ferro-allo produced by the Pittsburgh Metallurgical Division have been growing, as have carbon and graphite products company i a!so plastics, chemicals and medical gases, equipment and pharmaceuticals. Air Reduction was late in modernizing capacity, but a sizable capital investment pro- gram with 100 million spent in 1964-65, has sharply increased capacity, especially in the fast growing cryogenic areas. Further expansion is scheduled for 1966 and 1967, with anum ber of plants slated to come on stream next year, thus giving the company the ability to keep up with the rapid growth in demand. This being the case, we anticipate further earnings gain in 1967. Conversion of some 45 million debentures (convertible somewhat above the current market) would increase common shares by some 17. The 2. 50 dividend, which has been. paid since 1958, and which constitutes only 43 of estimated 1966 earnings, provides a 4.5 yield. The stock has been on our Recommended List since last April, and we continue to con sider it attractive for purchase in investment accounts. Dow-Jones Ind. 790.97 Dow-Jones Rails 196.78 ANTHONY W. TABELL WALSTON & CO. INC. A W (8 m&r et letter is published for your convenlent'e and mformation and is not an offer to seD or a solicitAtion to buy any seeuriUes diseussed. The In lormatlOn WIlS obtamed (rom Bources we believe to be reliable, but we do not guarantee Its aeeuracy. Walston & Co.. Inc. and its offict!rs, directors or emt'loyees may have an interest in or Purchase and oell the oecunbes referred to bereln. WNSOI … -' ….-

Fi'l.r- -r———————————————————————— – W—-a–l-s–tlonnc–&—-C–o–. INVESTMENT BANKERS MUTUAL FUNDS MUNICIPAL BONDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER September 30, 1966 I I I After watching Friday's stock market action, it is fairly easy to predict that the phrase, A test of the lows will reoccur with distressing frequency in next week's market comment. Wednesday and Thursday of this week saw substantial drops in the popular, market indices and the weakness continued on Friday morning. At 1 p. m. the reported level of the Dow- Jones Industrials was 766. 59, below the August 29th closing low of 767.03. From this point a sharp rally ensued, and although the market closed only slightly up on the day at 774.22, the previous closing bottom held inviolate. Similar action took place in the Dow-Jones Rail Average which held above its August 29th bottom of 190.48. Technical is, woefully, something that is often oversimplified and we.must con fess that we do not regard the question of whether the Average does or does not hold above its Augus't low as the only one which has to be answered in the present stock market. Far more important will be the action of the great mass of individual issues. In this connection, one interesting statistic may be noted; that is, the number of new 1966 lows chalked up on th last three days of the week – 109 on Wednesday, 170 on Thursday and 166 on Friday. These figures compare with 809 new lows chalked up on August 29th. In other words, a large numbe of stocks that moved into new low territory at the end of August have, so far, failed to equal those lows. Of equal interest, it would seem, is the character of the stocks which led the parade on the downside. For the most part, these were the aerospace, airline, electronic and color TV issues,which had been the leaders of the upswing from June 1965 through the spring of 1966. We must confess that we regard this as constructive. blue chip stock, as we have previously noted, has been going through a corrective r c oP the past two years, or longer, and many highgrade issues have reached tractive on a long-term basis. The fact that some of Yo! c c e to be highlyatec ti xuberance which had been built into the prices of leading growth s t i i cin 196 dearly 1966 has been re- moved, puts the market, it seems to us, in a ier ical position. –There-is, of course,- no way of we g this'process'will' continue. We sus- pect that it can go on for disturbing the popular market Average or, indeed, the price I stocks. In this connection, the following table may be p . e/ earnings ratio as of June 1965, at the 1966 high and at recent lows 0 e g growth stocks and a group of relatively conserva- tive investment issu . Magnavox P 196 1966 Recent High Low 16 37 27 General Motors pIE 1965 Low 14 At 1966 High 17 Recent Low 10 Motorola Fairchild Camera Northwest Air. Trans World Air. Sperry Rand Boeing 20 17 9 9 18 9 42 55 20 18 25 17 19 29 15 10 23 9 Amer. Tel & Tel 20 21 14 Goodyear Tire 16 17 14 Gulf Oil 13 15 11 Intern'lPaper 15 17 11 Alum.Co. Amer. 22 25 18 Gillette 22 28 20 United Aircraft 15 22 18 Xerox Polaroid 58 80 36' 72 55 52 Eastman Kodak 28 42 31 The figures are interesting. As can be seen, a great many of the growth favorites have al- ready returned to the price/ earnings ratios which existed over a year ago. Others, however, appear vulnerable to further downward evaluation by the market. On the other hand, invest- ment issues are, in all cases, well below the valuation levels that prevailed in June 1965, and as we have pointed out before, are, in some cases, at levels that have not existed for as much as nine years. . The market giveth and the market taketh away, and for our part we would prefer.at thiS stage to own those stocks which do not appear t.o f.urther downward multiple ad- justments and which could, once current economiC uncertamties resolve themselves, produce substantial capital gains simply through a return in their multiple to normal standards. Dow-Jones Ind. 774.22 ANTHONY W. TABELL Dow-Jones Rails 193.49 WALSTON & CO. INC. A Wh11i 1Qftletter is published for your convemence Bnd Information III not an offer to sell or 1\ BOIleltatlon to buy any aeeurlties dlseuued. The in. formation was obtained from sources we bdleve to be reliable. but we do not guarantee Its accuracy Walston & Co. Inc. and Its officers. directors or emJfloyees may have an interest in or purchase and sell the securities referred to herem. WN801

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Walston &- Co. –,;…….. Inc MUNICIPAL SONDS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFfiCES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER I L. e. October 7, 1966 / The Dow-Jones Industrial Average continued to slide this week. From an intra-day high on Monday of 778.11, the Average declined 38.47 points to an intra-day low on Friday of 739.64. The greatest casualties experienced in this decline were in the so-called growth stocks, including aerospace, airlines, electronics and radio-TV. As this letter has pointed out, during this recent market decline a great many stocks have come down to, o,r close to, major downside objectives. For the most part, these stocks are higher grade equities which reached their highs not in early 1966, but as far back as 1965 or 1964. With these downside objectives having been reached, they now appear to be at historically attractive levels for purchase.or.l.a…lon-g4er-m basis. WhUe.the'process vaI'ies' witheach individual issue, time, quite obviously, will be needed for these stocks to complete new base formations. There also exists a minority of issues where long-term bases still exist, indicating higher levels. The recent decline in these issues has brought their prices down to intermediate-term downside objectives. We would prefer to concentrate on those stocks which do not appear vulnerable to further downside risk and could, when economic uncertainties resolve themselves, produce substantial capital gains. Selection of these issues for purchase on weakness should therefore, be an important part of the investor's strategy over the next few months. One such stock is reviewed below. GULF OIL CORPORATION Current Price 54 3/8 Current Dividend 2.20 Current Yield 4. 05 Long Term Debt 530, 960, 759 Common Stock (shs) 103,601,482 Sales-1966-E 3 800 00 000 Gulf Oil grated oil companies w' gas, petrochemicy,l-s, 1 Iu world's major interffi interests in natural c icals and plastics, has shown a i ov nt in relative strength within the oi up in recent weeks. On Aug ust 30th, a 1966 low of 48 5/8. Since that Sales-1965 ;3 385 000 In- Earn. Per Sh. 1966-E 4. 80 for the same period. To classify Gulf Earn. Per Sh. 1965 a n'1nternational oil is misleading. The geographical Current Range 58 / – 4 up of Gulf's profit continues to shift noticeably to the nited States. Net income derived from U. S. operations has almost doubled fro 1958 to 710/0 in 1965. (80 Western Hemisphere). This has en abled Gulf to benefit sub ially from the rising product demand and firm domestic gasoline prices which the dome lC oil companies have recently enjoyed. This shift also protects the company's earnings from the uncertain political and economical conditions which are present overseas. Marketing operations in the Eastern Hemisphere continue to grow rapidly. Gulf Oil pro duces crude oil far in excess of refinery needs. The most important holding is the prolific 50 owned Kuwait concession (1,260,400 barrels daily). A sizable portion of Gulf's Kuwait output is sold to the Royal Dutch/Shell group under a long term contract. Crude oil processe in 1965 amounted to 1,166,536 barrels daily. Refined product sales advanced to 1,154,427 barrels daily. Domestically, the company markets throughout the United States, with some 33,000 retail outlets. The acquisition of Cities Service's mid-west service stations and British American's U. S. oil properties should further strengthen domestic marketing. Gulf reported first-half 1966 earnings of 2.43 per share vs. 2.03 for the similar 1965 period. This record first-half earnings represents a 19.7 increase. The increase far outperforms the international oil group and compares favorably with the better acting domestic oils.Fiscal 1966 earnings are estimated at a record 4.80, with sales for this year estimated at 3,800 million vs. 3,385 million in 1965. Long-term earnings prospects are enhanced by a success ful exploration program, coupled with continuing expansion of refining, chemical and marketin facilities. The dividend rate has recently been raised to an annual rate of 2. 20 per share, affording a yield of 4.050/0. The company's conservative dividend policy has and will continue to permit further capital spending to strengthen the North American markets. Selling at less than twelve times 1966 estimated earnings, Gulf Oil Corporation,original added to our Recommended List on January 19, 1962 at 39, continues to afford the investor an attractive purchase candidate on minor weakness. Dow-Jones Ind. 744.32 Dow-Jones Rails 184. 34 ANTHONY W. TABELL WALSTON & CO. INC. AWTRJS am mis market letter Is published for your and information and is not I'\n offer to gei1 or a solicitation to buy any AeeUl'lties dlseuslled The Ln- was obtained from sources we bt'1il've to be reliable.. but we do not guarantl!e- Ita accuracy WalstQn & Co.. Inc. and its officers directQrs or eml'loyeea may ha.ve an anterest In or purchase- and sell the securities referred to herein. . WNBI)l J

-tiLE TABELL'S MARKET Walston &Co. —-Inc —MUNICIPAL BONDS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS LETTER October 14, 1966 With activity having quieted down somewhat, it is now possible to sort through the rather astonishing market behavior of the last few weeks and draw some tentative conclu- sions therefrom. As a start, some recapitulation of the last two weeks of activity is perhaps in order. First of all, in the week of October 3rd to 7th, the Dow-Jones Industrial Average stag a rather severe slide, declining on four of the five days of the week and posting a net decline of just under 30 points. The intra-day low, reached early Monday morning, was 735.74, a figure slightly below the intra-day bottom of 759.52 which had been posted over a month earlier on August 30th. The Rails, generally paralleled the action of the Industrials, also posting a modest new low early Monday. However, the Utilities proved staunchly resistant to the decline, and their Monday low of 121. 66 was sharply above the low of 117.57 scored on August 30th. – This setback was followed by a dramatic rally. FromMonday's low point the Dow chalk ed up a 10-point gain, followed it with a 4-point advance on Tuesday and then, in what started to be a quiet holiday market with most major investing institutions closed on Columbus Day, racked up a 19.53 point advance – the biggest single rise since 1963. Irregularity on Thurs- day and Friday wiped out some of the gain, but still left the Average with an impressive plus for the week. The Rails again followed the pattern of the Industrials, but the formed almost as well on the upside as they had on the downside and advanced sharply on all five days of last week to reach an intra-day peak of 129.42 on Friday. While the above describes the market in terms of the it is hardly descriptive of what took place in a great many individual stocks. In wei weeks ago, a great many of the trading favorites of early 1966 took the a ti e – red to any group of issues in recent memory. A glance at the list of t – e stocks for the week of October 7th is a virtual horror story, with decline/!oJ'i31 – s in Fairchild Camera, 42 points in Xerox, 6 points in Sperry Rand and roughs tjypical of the action. The climactically oversold condition e to the leaders in the early stages of the aBY is week they had, in most cases, re- gained half or more of their Thus, we ie O'f what has happened in the stock market during the past week — t – ec ' 'ng to new lows by a small amount, and the glamour' stocks undergoing a ' ac rom which they have only partially recovered. Yet, even this does not tell the 01 . During the week of October 3rd through 7th, 756 new lows, !for the week were recor along with the low in the Dow. This figure is high enough, but is significantly lower than e 1020 new lows chalked up in the end of August. It means, quite ob viously, that at least 264 issues failed to follow the Dow into new low territory, a phenomen often symptomatic of a decline running out of steam. Equally interesting was the continuing decline in most downside volume measurements, a downtrend that has been in effect since April of this year. This sort of action lends credence to the belief that the worst of the sell- ing pressure in a great many st0cks may well be over with. What does all this mean for investment policy First of all, the technical damage done by the recent market to a great many of the so-called glamour issues is immense, At best, a considerable period of time will be required to form bases in these issues and, at worst, there is considerable further risk present. We have warned the investor against the use of issues of this type previously, and we reiterate this warning at the present time. At the same time, it is difficult to ignore the fact that a great many highgrade stocks have reached major downside objectives and at present levels represent their best value in a great many years. It is our view that the investor should upgrade his portfolio accordingl y. Dow-Jones Ind. – 771. 71 ANTHONY W. TABELL Dow-Jones Rails – 191. 92 WALSTON & CO. INC. '1' We are happy to announce that Mr. Harry W. Laubscher has joined our staff effective this week. Mr. Laubscher, a member of the N. Y. Society of Security Analysts, has been a writer on stock market subjects for the past eight years and is the author of numerous articles. He will, on occasion, assist in writing all or part of this letter, but his main function will be to supervise communication between the Technical Research Department and Walston & Co. In Account Executives. It is our hope that his addition to our staff will help the Walston Accoun Execut ive better to serve his clients with technical research material. A. W. T. This market letter Is publillhed for your convemence and Information and is not 1\0 offer to sell or II. sohcitatlon to buy aoy eeeuritiea diseu8Sed The In. formAtion was obtained from 80urces we bt!lleve, to be reiJl'lble, we do not guarantee Its accurACy Walston & Co. Inc Rnd lis officers. dl;eetors or eml'loyees may have an mterest In or purchase and sell the securItIes referred to herem.

t/ L W—-a–l-s–tlonnc–&—C–o–. MUNICIPAL SONDS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS lABELL'S MARKET LETTER October 21, 1966 The stock market extended its rally in the early part of this week, chalking up a 20- point gain on the Dow on Monday and Tuesday. Irregularity set in toward the end of the week and, roughly a third of the week's improvement had been given up by Friday's close. Action of the Rails generally paralleled that of the Industrials, but the Utilities were again features on the upside, and at Friday's clos e of 133.03 were comfortably above their September highs – a level nowhere near attained as yet by either of the other two averages. Actually, beneath the surface of last week's market a number of interesting things wer happening. First of all, by Friday, all of the short-term oscillators used by this department to gauge the short range condition of the market had moved into overbought territory. For once, this has significance on a a's w-ell-as a short-term baSis.- The present rise marks the first time since the February high that the market has been able to generate a rally with enough vigor to cause a short-term overbought condition. Thus, at least to a de- gree, the heavy selling pressure which has characterized the market for nine months appear to have lessened. This is also confirmed by most short-term volume studies which indicate that downside volume at its recent peak was lower than had been the case at the culmination of previous selling waves in May and August. Market downswings generally end either with high volume selling climaxes, or with long, protracted periods of dullness in which selling pressure slowly diminishes. We have long felt that the end of the present downswing would conform to the latter pattern,and the action of the past month seems to be consistent with it. KOPPERS COMPANY, INC. Current Price 23 skeptical of all but Current Dividend 1. 40 the most e r n and its response Current Yield 6. 00/0 to news of n decreases, even if tem Long Term Debt 4 Cum. Pfd. Stk. Common Stock Sales-1966-E Sales-1965 Earn. Per Sh. 1966- 62,251, 686 150,000 shs. -634, 940 shs. 400, 010, oy; 1M. porary in been ha en been vicious. Such h8.s \ViiI ppers Company which sold em\e' Ii . as.high as.361L8.and recently sold 1/4, at which price it a yield and sold for under nine times anticipated 6 earnings. Moreover, the dividend providing this generous yield does not appear to be in any par- Earn. Per Sh. 1965 ticular danger, representing as it does only a 550/0 Mkt. Range 1966-65 1 1/4 pay-out ratio. Since the mild earnings decline ex- perienced in the first nine months of 1966 (1. 75 earned per share vs. .83) appears to be strictly temporary, and since a major support level has been reached, we feel that Koppers at its pr esent level is particularly attractive for capital gains and income accounts. Actually, the flat earnings trend for Koppers in the early part of this year can be ex- plained by the performance of one division, its Construction Division which was adversely influenced by shortages of skilled labor and cost increases incur red on fixed price contraqts negotiated some time ago. For the first six months of 1966 manufacturing earnings increase to 1. 33 per share vs. 1. 09 in 1965 – a 220/0 rise. Presumably, the worst of the construct- ion losses are out of the way,and new contracts provide for increased costs, Thus the fourth quarter should show sufficient earnings improvement to enable 1966 results to equal or slightly better the 2. 52ear'fied in 1965. — For 1967 and beyond we see no reason why the growth rate of the early 1960's (earn- ings virtually doubled between 1961 and 1966) cannot continue. The market currently appears to be overlooking the fact that Koppers rather than bein largely a construction company now derives some 750/0 of revenues from manufacturing oper tions in the Chemical, Plastics, Construction Materials and Machinery fields and that most of the markets it serves appear to have excellent growth potential. Furthermore, the Con- struction Division, although a relatively minor part of the company, should be able to turn around in the second half of the decade with demand for new steel facilities, especially in the area of continuous casting and basic oxygen,growing at a high rate. The stock is again suggested far purchase at current levels. Dow-Jones Ind. 787. 30 Dow-Jones Rails 193.07 ANTHONY W. TABELL WALSTON & CO. INC. formation was obtained from sources we believe to be rehable. but we do not guarantee its accuracy, Walswn & Co.. Inc and Its officers direct.o e m- eml'loyees may have an interest in or purchase and sell the secUTltws referred to herem. . rs or WNBOl

Walston &eo…;… Inc. ;…—..;… MUNICIPAL BONDS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchang OfFICES COA.ST TO COAST AND OVERSEAS TABELL'S MARKET LETTER October 28, 1966 The market continues to act well. Sharp rallies in the Dow-Jones Industrial Average on Wednesday and Thursday of the past week brought the index to a level decisively above where it had been trading since mid-August, with the exception of three days at the peak of the early September rally. At present, decisive penetration of the September intra-day high of 822.93 would indicate the possibility of 860, an area where heavy supply exists from the June-July trading range. A decline back below 800 would broaden the base further and eventually yield a still higher objective. Meanwhile, the shift in leadership continues with bettergrade and unexploited issues generally outperforming the market leaders of earlier this year …. . – METRO-GOLDWYN-MAYER, INC. Current Price Current Dividend Current Yield Long Term Debt Common Stock 33 1. 00 3. 0/. 29,273,000 5,042,895 shs. Movies again are getting better than ever. At least, that's the way the industry income accounts are shaping up if box office receipts are any indication. Evidently, investors also are aware of the improving trend as purchases of leading equities within the group reveal a pattern of relatively aggressive Sales 1966-E Sales 1965 185,000,000 162,000,000 accumulation. MGM has been one of the most heavil acquired in recent months as the probability of a Earn. Per Sh. 1966-E Earn. Per Sh. 1965 2.00 1. 56 Mkt.Range 1966-65 33 5/8 – 163/8 proxy fight continues to the outlook. With the prize evidently . g asset value, conser- vatively ted 0 e a share, the present managemen c ly' . eingchallenged for control by a ong dissident group. The of thiS. controversy, com.t'ined with fundamentals, suggests the ;p.lly nd .',;,lbutio; of motion pictures. Additiona 50 theatres in key foreign locations, pro- duces phonograph recor us publishes sheet music and supplies tele- vision broadcaster w e ' erial. The insatiable appetite for movies on the part of TV network t into film libraries. MGM has about 145 films that' have not yet been released, b u f of which could be suitable for TV showing. The Company expects to receive abou million from CBS for the rights to televise 63 of its films. The agreement also inclu s the possibility of CBS showing several films televised previously by NBC. With about 5 1/2 hours of prime network time this season, MGM is busy producing film series for TV, including such favorites as Please Don't Eat the Daisies and The Ma From U. N. C. L. E. . Aided by the excellent box office showing of Dr. Zhivago, still the nation's No. 1 grossing movie, which cost only 12 million to produce and which company officials are ex- pecting to have an eventual world-wide gross of more than 40 million; plus the rapidly rising income from TV operations, earnings for the current fiscal year ending next August 31st could show a good increase over the 2.00 a share estimated for fiscal 1966. Although; difficult to judge with accuracy far in advance, p!,ofit margins have been in a recent uptrend. \ and industry analysts are hopeful of seeing this trend continue to improve. MGM also conti- nues to benefit from the high gross being received by such low-cost films as A Patch of Blue, already having grossed more than seven times the 1 million production cost, and timely re-runs of such important films as Gone With The Wind and Ben-Hur. Although selling at a price/earnings multiple well in excess of industry average, re- flecting the control situation, these shares indicate strong technical support in the upper 20's, suggesting the likelihood of small downside risk from current price levels relative to the considerable upside potential indicated. Having broken out of a base formation in the 26-32 area, an upside objective of 52 is indicated. The issue, originally added to our Recommended List for capital appreciation on March 1st 1965 at'19 1/2 adjusted, is again suggested for purchase. HARRY W. LAUBSCHER for ANTHONY W. TABELL Dow-Jones Ind. -807. 96 WALSTON & CO. INC. Dow-Jones Rails-199. 51 AW'jif 4PttWlimlI PUbUllhed for your and infonnatlon and Is not an offer to !leU or a solicitation to buy any securIties di&e118lled Tb. i waa 0 btained from. II01lrees we believe to be reliable, but we do not guarantee Its accuracy Walston Co Ine and ita dl'-'- e em01et11 111&1 have an Intere.t in or pUPehaae and se11 the securities referred to herein. … …cera. .ox …..rll or

Walston &Co. ———lnc.——— MUNICIPAL BONDS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER November 4, 1966 The stock market air has cleared somewhat. Four weeks have passed since the Octo'ler low in the Dow of 735.74, and the Dow-Jones Industrial Average is hovering comfortably around the intra-day high of 816. 64 made a week ago. The advance, in any terms, has been impressive. From the October 7th bottom to its high of October 28th, the Dow had chalked up a better-than-100/0 rise and had recovered almost a third of the ground lost since February, 1966. Many individual groups have turned in an even more impressive performance. The time appears appropriate to reiterate and codify some of our previously-express ed thoughts as to the present-position 'of the equitymarket'for the-long-;- intermediate, and shorter terms. Let us take the longer-term first. This letter has repeatedly expressed the view, since August, that the market basically was at a bargain level. We have suggested and continue to suggest, that a large number of highgrade issues have reached major downside objectives and are available at more attractive prices in relation to basic earning power than has been the case at any time within the past decade. In short, we continue to feel that the market is approaching the end of a crisis of confidence which goes back to 1961, and that the latter part of the 1960's and early 1970's may well see a bull market cycle of comparable proportions to that of the 1949-1961 period. For the long-term, therefore, we are extremely optimistic. This, however, is not meant to say that the low was reached on October 7th at 735 in the Dow. What it is meant to suggest is that the stock market historian of the be able to look at the 1966-67 period and conclude that, historically, it w an time to buy stocks. So much for the long-term. What about the ove e next few months The Dow has, since August, nge bounded on an intra-day basis bythe September-high ..of 822. taking place in the 770-800 oe 9.4with.most oUhe tradin Wp ar that this area is a possible interme- diate-term base. Potential ups e but most of them seem to center around the figure of 860 i . a gical target, since it is also the level at which the heavy overhead u J1 d he 1965- 66 top first manifests itself. As yet, the Average has been u 0 ea t of this range by penetrating the September high. Were it to fail to follow thro h a eturn to the lower part of the trading range, the base would, of course, be broadene It is tempting to guess what might follow a rise to the 860 level. Were such an immediate rise to take place, the Average would have run out the upside implications of the base that now exists and a new pattern would have to form in order to indicate higher levels. Part of such a pattern could very well be a decline back to around present levels, or even a move to new low territory. Obviously, it is impossible to guess preCisely what will take place until the picture unfolds further. However, we would suspect that even were the market to drop back to new lows after such an advance, a great many stocks would fail to return to their present levels. For the shorter-term, the picture is less clear. Most of our short-term oscillators have reached would indicate, at least, that some consolidation must take place before the advance is extended and the September highs are penetrated. How low such consolidation might take the Dow is uncertain, but strong support exists in the en- tire 790-775 area. In the light of a market outlook such as the One described above, we continue to re- iterate the basic investment philosophy expressed by this letter since last August. It is that the investor should utilize market weakness for the commission of reserves to stocks which are technically attractive and which appear, fundamentally, fairly priced in relation to prospective earning power. ANTHONY W. TABELL Dow-Jones Ind. 805.06 WALSTON & CO. INC. Dow-Jones Rails 199.66 AWTamb Tbll market letter ill published for your convemence and Information and Is not an offer to sell or a aolldt&.tlon to bu), any aeeurltlea formation waa obtained from eourcea we believe to be reliable. but we do not guarantee Ita nccuracy Walston & Co Inc and ltl ftI eupioyee. may have an fnterm in or pupchaae and sell the 8eenritles referred to herein. .,. 0 eers, dl 'eeTtobc . In- r fa or WN.801

Walston &Co. ———lnc——— MUNICIPAL BONDS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER November 11, 1966 One of the favorite formulas for success in Wall Street is Buy growth stocks. It is a sentiment with which this letter, certainly, would have no quarrel. We do not, however, possess the certainty,so prevalent in many quarters, that we know what a growth stock is. The typical advocate of the growth stock school, when pressed for a definition, will probably answer that a growth stock is one whose earnings are, in fact, in a long-term uptren Very often he will supplement this definition with a statistical passion play which demon- strates how well the i,nvestor would have fared over the previous five years or ten years had he only been clever enough to buy a group of selected growth issues. Presentations of this nature have one minor fault.Theselectiqn.of-the.growth stocks is, invariably, made atthe end of the period rather than at the beginning. It is a relatively easy matter to pick stocks' whose earnings are, tOday, up substantially over their levels of five years ago. Manyana- lysts seem to believe, at least implicitly, that it is an equally easy matter to pick stocks whos earnings are going to be sharply higher five and ten years hence. It is, unfortunately, hard to find anything in Wall Street's record which justifies such confidence. The following table presents a list of growth stocks with prices as of December 31,195 and today, together with percentage changes. All 1954 prices have been adjusted for subse- quent splits, and the current DuPont price has been adjusted for the General Motors distri- butions. Included also are the same figures for the Dow-Jones Industrial Average. This growth stock list has one feature not usually found in such presentations, i. e. , the selection was made at the beginning of the period and appeared in this market letter as part of a statistical study on January 14, 1955. It was selected by an ad- visory firm specializing in growth issues, and the issues -fa 're those which the financial community considered to have the 12/31/54 Recent Change q t n la 1\ 1/54 Recent Change Alcan Alum. 26 27 4 – 13 79 507 Amerada 62 74 19 ons 28 40 43 Dow Chemical DuPont El Paso Natl G Goodrich, B. F. Honeywell Intern'l Bus. M. w437 0 27 31 6 7 352 9 12 5 111 1035 Pfizer, Chas. 13 Radio Corp. 11 Rohm & Haas 70 Scott Paper 21 Shell Oil 26 Union Carbide 44 Dow-Jones Ind. 412 80 69 49 90 26 68 49 818 128 430 345 28 24 161 11 99 The list may be surprising to some readers. Of the 20 stocks, IBM is probably the only one that would have any certainty of being selected in a similar list to be compiled in 1966. It will be difficult for many to believe that Amerada, Dow, El Paso, Goodrich, National Lead or Rohm & Haas were considered to be the premier growth issues of their day, but any in- vestor with a memory of the 1954-56 period will recall that this was, in fact, the case. Of greatest interest, of course, is the performance of the list. Overall, its average appre- ciation is 161, which is, admittedly, some 60 better than the Dow over the same period. It is interesting, however, that this performance is due almost solely to the top few stocks. If on for example, removed IBM and Minnesota Mining; the two best acting issues;the performance would have been somewhat worse than the Dow-Jones Industrials. It is interesting to note that of the 20 stocks, 12 have, in fact, done worse than the Dow over the same period. The lesson to be learned from this, of course, is that there is nothing much wrong with the concept of buying growth stocks per se. It is, in fact, highly probable that any list of growth issues selected today may well contain one or two stocks whose performance will duplicate those of IBM, Minnesota Mining or Pfizer in the list above. The implication, however, that the selection of growth issues is an easy process, or that there is necessarily any correlation between past growth and future growth, can only be a disservice to the investor. Dow-Jones Ind. 819.09 Dow-Jones Rails 200. 53 ANTHONY W. TABELL WALSTON & CO. INC. AWT'a mb Thl. market letter I. pubUlhed tor your convenience and Information nnd 18 not an ofter to edl or a .wleltatlon to buy any &eeurltJea dllCuaaed. The In- formation wu obtained from .ources we believe to be reliable, but we do not guarantee Ita accuracy, Walaton & Co.. Inc. and Its officers director B'nploy. . mu ha'9!1 an int.eYftt in OT 'Pul'ehaae and Bell Ut.e aeclJr\tlt'B referred to hereln. ' or -. – –