Walston &Co, —–Inc —– MUNICIPAL BONOS 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 May 12, 1967 SCHLUMBERGER, LTD. F /L Current Price Current Dividend Current Yield 56 3/4 1. 20 2. 2 A pipeline one foot in diameter stretching more than 550 times around the earth's equator could not contain all the oil consumed in 1966. Long Term Debt 12,390,000 Common Stock 7,595,958 shs. This is equal to some 29 million barrels daily. For 1967, this demand is expected to expand further, and by 1975, Free World usage is prOjected to al- Sales-1967-E Sales 1966 370,000,000 343,100,000 48 million barrels daily. Domesticdemand alone is expected to rise more than 50 during the next ten years. Earn. Per Sh. 1967-E 4.00 All this means that a great deal more oil Earn. Per Sh. 1966 3.71 than the many billions of barrels already in proven Mkt. Range 1966-67 61 – 40 reserves has to be explored for, discovered and brought into production. In turn, this implies more business for Schlumberger, Ltd., one of the leader in the oil service industry. The acknowledged leader in wire logging, a technique providing permanent records of indicated underground formations, necessary before and during drilling operations, Schlum- berger operates a fleet of almost 1500 vehicles including 500 truck-mounted laboratories and 200 lab units on offshore drilling platforms. Every requires the services of at least one such laboratory unit. 0 Despite the continued decline in U. S. drilling and reversed within the next five years, SLB's oil 'c 1 e ted to be arrested 'si ontinues to record peak volume in reflection of rapidly expanding n e search for black gold has moved offshore where drilling requirements ult than on land and where instru ments are subject to far greater i ents. -As a leading manufacturer of these sensitive instruments, to meet the demand by undergoing con- siderable expansion in the ele to' tely one-fifth of 1967 's estimated revenues of 370 millio ro electronics activities. Through an a e i e l' ion program, the company now produces such import- ant items as oscillo , corders, X -ray gauges, data loggers and general aviatio h a esigned to measure information. The company also manufac- tures computers, whic e designed entirely for the scientific market and do not attempt to serve the keenly com etitive business market. This year, SLB will deliver 30 computers, vs 15 deliveries in 1966. Another glamour area served is color-TV, where the Heath Division, largest domestic maker of electronic equipment in kit form, serves a growing market. Further diversification in the electronics area seems likely and the company's extremel strong financial position suggests tha t dilution of outstanding stock through new financing is not likely for the foreseeable future. Of the almost 7. 6 million common shares issued, ap- proximately 48 is controlled by members of the Schlumberger family, with almost one million more shares believed held by institutions. Earnings this year are expected to reach a newall-time high at 4.00 a share, or more, up from 3.71 last year, suggesting further liberalization in the current 1. 20 annual divi- dend rate. With-the computer businesS expected to'break into the black later this year, or early in 1968, the electronic division's contribution to overall profitability should rise rapid lyon a quarter-to-quarter basis throughout this year, indicating the possibility of an import ant gain in net income next year. From the technical viewpoint, Schlumberger has a price objective at 78, suggested by a base formed several years ago. Subsequent base-building suggests a price objective con- siderably higher once the initial goal has been reached. There is support at 50. Considering the favorable fundamental-and technical prospects, Schlumberger, Ltd. ,Cllready on our Recom mended List, again is recommended for purchase. – — Dow-Jones Ind. 890.03 Dow-Jones Rails 237.68 HARRY W. LAUBSCHER for ANTHONY W. TAB ELL WALSTON & CO. INC. AWTHWLamb Thle market IMter Ie published f(lT your convemence and Information I\od Is not an offer to sell or a sohcltation to buy any securities JIICUa&ed. The In formation Watl obtained from BOurces we believe to be reliable. but we do not guarantee its accuracy, Walston & Co.. Inc. and Its ofBcers, diredon or elUplo7ees may have an Interest in or pUl'chasc and sell the securities referred to herein, WN.SOl

W- – -a-lIsntocn. -&– -C-o-. MUNICIPAL BONIlS UNDERWRITERS MUTUAL fUNDS Memba New York Stock Exchange and Other Principal Stock and Commodity Exchanges OfFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER May 19, 1967 The stock market continued to slide this week. Interrupted by a brief rally on Tuesday, the Dow-Jones Industrial Average resumed its downward course on the latter three days of the week and reached an intra-day low on Friday of 867.59 Since the now-historic October 7 low, the market has undergone no correction which could be described as intermediate-term in scope. There have been four previous down- swings of a short-range nature, the first at the end of November 1966, another in the closing weeks of December 1966, a third in February 1967, and another in March-April 1967. So far the present dip bears a good deal of similarity to these prior declines. The four ranged in length from 10 days to 12 days, and the present drop has carried for 8 days so far. The carried the Dow down by amounts ranging from 5.0 to-6. 2 , and the present dip has involved, to date, a 5. 2 decline. We are inclined to think that the present drop will, like the previous ones, be rather short and not too deep. There is no top on the Averages or on individual stocks which would indicate otherwise at this point. What will be important, however, is the extent and character of the next rally. All of the four previous downswings were followed by rallies in which most indicators of market breadth and' vitality led the Average on the upside and which promptly carried the market into new high ground. If such a rally is witnessed at this stage, a further extel1sion of the advance would be indicated. On the other hand, a weak rebound to the low 900 area, accompanied by poor breadth and volume, would indicate the possible for- mation of an intermediate-term top and an interruption of the advance more protracted than we have seen in the past 7 months. One of the ostensible reasons for the market dip . 1lY Federal Reserve Board Chairman William McChesney Martin earlier nmthe e k g the activities of some mutual funds and alleging that some of their some respects of the old pool operations of the spectre of the 1920's. He did so last in June t' es were reminiscent in rtin is fond of raiSing the detected disquieting simi- larities between ghost c e r t a ipnaasst pheacst s of The activity in the t in the 1928-29 period. Still by commeritators more recently, the new-issue market has been viewed with a great orgy which took pI tee break. compared with 1961, when the wild speculative at least in some degree to the 1962 stock market Now it should b rna ear that we have absolutely no quarrel with either Mr. Mar- tin or with those who ar calling 1961. As a matter of fact, we laud them. History is there to teach, and thi applies to economic history no less than to any other sort. However, as John K. Galbraith has indicated in his excellent history of the 1929 crash, the dangers of its repetition will be increased when men who know that things are going wrong (continue) to say that things are fundamentally sound. It seems to us that this is precisely not what is happening today. The very fact that so respected a public official as Mr. Martin takes the trouble to warn us of what he views as dangers in the economy, rather than assure us that all is going well, is a plus factor. The fact that the activity in today's over-the-counter. market causes us immediately to remember 1961 rather than conveniently blot it from our memory is, we think, reassuring. Moreover, we feel any comparison of the present with prior periods must take into account differences as well as similarities. There are many differences between today and the 1920's, the most important ones as far as the stock market is concerned revolving around the use of credit. The difference between the present and 1961 centers around the differences in quality between the stocks and financial institutions involved in the over-Ute,- counter activity and the fact that this activity has significantly failed, so far at least, to spread to the investment-grade segment of the stock list which, in 1961, it ultimately did. It is quite possible that we will see, before this upswing is over, another orgy of public speculation which will inevitably be followed by public disillusionment. We think, at the moment, however, it is comforting that respected voices in the financial community are continually being raised to remind us, as Bernard Baruch recommended we be reminded at such times, that two and two make four. Dow-Jones Ind. 874.55 ANTHONY W. TABELL Dow-Jones Rails 237.79 WALSTON & CO., INC. A ',.nv.n'en,,–.n;;n;'.nn.Uo-n'.n-;'-'-,'n-an-….,.–7,.-.-.-.-,-o,–.–,-.-.'tat'o-n;'to-buy-.-ny-…,-u-,-.-U.–.d..'-…-.-..,…..'Th,….-,'-n. feomrpmloaytieoens mwlaQs' hoabvtaeinaend infrtoemrestsoIunrcoers PwUe1'ebheaslieevaendto&ebllethreelisaebcleu.ritbieust rweefedrroedntoot hgeuraerinan. tee ita accuracy, Walston & Co., Ine. and ita oflleera, dlreetol'll or WN.SOl

W—a-l-sItnocn.&— C–o-. MUNICIPAL BONOS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges TABEll'S MARKET lETTER OFFICES COAST TO COAST AND OVERSEAS F I L E. May 26, 1967 The stock market reversed its May decline, at least temporarily, with a resounding advance On Thursday which had the Dow-Jones Industrials up as much as 10 points during the day before profit-taking set in and limited the- advance to some 8.29 points. The profit-taking continued on Friday with slightly softer prices prevailing. One of the interesting facets of the decline was the divergent action of the Rails which persistently trended upward for the two weeks the Industrials were sliding and which posted a new high for the year on Thursday. – At rea-chedterritory, and short-term buying evidence was accordingly interpreted with the Thursday rebound. Last week we said, What will be important, however, is the extent and character of the next rally. .. If (a strong) rally is witnessed at this stage, a further extension of the advance .would be indicated. On the other hand, a weak rebound to the low 900 area, accompanied by poor breadth and volume, would indicate the possible formation of an i-ntermediate-term top and an interruption of the advance more protracted than we have seen in the past 7 months. Last week's market action has, confirmed this thinking. 1- Most market upswings can be divided into two stages which may be called the selective and non-selective phases. The non-selective phase comes first, directly after major bottom is reached, and it is characterized by the fact that almost all stocks advance or at least hold steady. This phase is followed by a slctive phase in which the popular market Averages and a great many individual stoc 0 i eo advance sharply but in which a large number of issues move t0 ailing market trend The selectivity, of course, increases as the i pr ed. It is extremely difficult to , but one attempt may be made by reference to the daily and weekly ss on highs and new lows for the mar- -ket year.-These–stati-stics W1t – First of all, there is an abrupt measuring period changesto the current year from the previou the inclusion of preferred stocks tends to distort the e' res have some usefulness. We can . ective phase of an advance as a period in which new lows are practically non-e t n enerally well below 100 on a weekly basis. New highs mean- while remain at a high' e often posting new peaks. The end of this phase usually takes place the first time move above new highs. The subsequent selective phase is characterized by a general prevalence of new highs, but new lows increase and often move above new highs on intermediate-term downswings. NON-SELECTIVE PHASE Length in D.J.LA. Start Oct. 53 End Months Mar. 55 18 at end 420 Jan. 58 Dec. 60 Oct. 62 May 59 June 61 Aug. 63 7 7 11 645 680 730 Jan. 67 5 915 to date SELECTIVE PHASE Subsequent Number of D.J.LA. market top months later at tOE July 57 28 523 Jan. 60 8 688 Nov. 61 5 741 Feb. 66 30 1000 Adv. 25 7 9 3-7 The table above documents the selective and non-selective phases of each ad- vance since 1953. As can be seen, the length of each phase has varied widely. However,- it can be noted that the selective phase generally continues for a lengthy period time after the ending of the earlier phase and often produces a worthwhile At the moment. there is only the most preliminary indication that the non-selecttve phase of the advance 1S over. New highs which reached a peak of 476 two weeks ago have declined but the number of new lows being reached has remained at an extremely low level. The flgures, therefore, seem to suggest a continued good market climate. Dow-Jones Ind. 870.32 ANTHONY W. TABELL Dow-Jones Rails 247 33 AWTsb WAL.STON & C. O., INC. Tfohrims amtiaornkewt alsettoebrta'liJnepdubflrJoahmedsotourrcyesouwr ecobnevlieenvieentcoe b.aendrfInIiBfabnlen. abtluotn wfetnddoIS nnoott gaunaraonRteere to it s sealcl cuorracl iy.s oWl i cai tlsattoi onn t & o buy Co., any Inc. asnecdurIitatieosffdic1e8rCaW, lsdeidr.ecTtbores inor emplOYee8 may have an interest In or pUFchlL8e Bnd sell the securities referred to herein

Walston &Co. —.;….Inc. -.;…….;….;;.. MUNICIPAL BONOS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Exchang TABELL'S MARKET LETTER OFFICES COAST TO COAST A.ND OVERSEAS June 2, 1967 The market dropped off sharply in early trading this week, with the Dow-Jones Indus- trial Average reaching an intra-day bottom of 850.39 at the climax of a 12-point dip on i Wednesday. Thursday's action showed a sharp recovery with the bulk of the loss being re- Friday's activity was characterized by general dullness except for a temporary sell- mg spate when the political news heated up – – however, late buying pared the decline. With . most indicators having reached oversold territory, a short-term rebound at this stage seem probable. At this pOint a few basic facts seem worth noting (1) It is our belief that the market made-a major low-at'735-N there is no top indicating a decline of anything like the 1966 -magnitude. Sucha top would, of necessity, take many ,nonths to form. (3) Strong support, teste-d this week,exists at the 860- 840 level on the Dow and, in the event that this support were penetrated, major resistance oc- curs at the 820-800 level. In view of all this, we continge to suggest that the investor adopt an aggressive attitude toward equity investment and use any further weakness to add to com- mon stock holdings. SEABOARD COAST LINE RAILROAD Current Price 59 1/2 Indicated Dividend 2.82 Gl' ven certain limitations of distance am capacity, the Jothe 'I'-section Indicated Yield 4.7 -ail sti11 is E'cient means ctransport- Long Term Debt Common Stock Revs. -1967-Est. Revs. -1966 401,083,000 8,721,668 shs. 417,000,000 404, 000, 000 mg b.ot.h Csts, dlvert e o'(er land. While indirec n II r f a,sumed capital cost relationships and co ing modes of transport,tec Earn. Per Sh. 1967-E E h 96 arn. Per S . 1 6 Mkt. Range'19666'f AUantic Coast Line 4.70-4. 80 4.37 60 pro ffVoAr . – iihPf.9 ents to lower full rail – – …l the. uckers and barges. Benefiting not only a recent SU'preme Court ruling allowing it to merge with th ,t e d Line Railroad.would seem-to offer investors seek- ing both current inc overage long-term capital appreciation a favor- able opportunity at cu en . levels.' , .. . 1 Under the merger ement, each Atlantic Coast Line common share w'ill be exchange for 1. 42 shares of the w company, while each present Seaboard share will be'exchanged for one share of the new stock. Aitho'ti.gh a dividend policy has not been forrriiilate'd-'by the new Board of Directors, it is anticipated .that the current 4.00 annual rate on the Atlantic Coast Line will not be jeopardized. This rate then would be equal to' 2. 32 a shar.e \he new stock, 1. 00 above the 1. 80 being paid on current Seaboard shares. Thus, present Seaboard Air Li shareholders would have their dividend income potential substantially increased as of July 1, 1967, when the two carriers become the Seaboard Coast Line Railroad. The new company will fully retain its nor.th-south .traffic; pa ttern, from the northern gateway of Richmond, Virginia, to southern Florida. This network has show strong traffic trends in the postwar period in reflection of a population movement southward, necessitating increasing shipment of goods and materials not only f,om north south) bllt in the opposite direction as well as the southland's industrial capacity expanded. With these traf- fic patterns expected to continue,and further cost-of operating- red.uctia!1s,like.ly, future earnings potential of the merged roads is substantial. It is estimated that after.five. or six year.s of merged operation, savings could amount to the 1966 pro forma results of 4. 37 a share. A good share of these savings increased dividends. is expected ,. to be passed along to sh. a,reh. otl,d-'e'r.s in.the form of Having experienced a marked improvement in relative strength actionlOince the August- aOctober lows of last year, the stock recently has broken out of indicating higher levels. Strong support is present in the 54-52 level, limiting downside risk. The stock indicates an intermediate-term objective in the mid-70's, fdllowed by'a longer-ter upside potential of 84-108. to the -Price-Appreciation section of our List on May 5th, these shares agam are' recommended for purchase at current.pnce levels. Dow-Jones Ind. 863.31 Dow-Jones Rails 24746 HARRY W. LAUBSCHEI)R., f-or ANTHONY W. TABELL WALS'rON &CO. INC.. This market le efomrpmloaytieoens mwaaya thoteabrvtaeIiIInaenpduibnflrtioesmhreesdt80tiOnuTrcoeyrsopuwUrFecchobBneJvlIiceenvaienendtcoeseblalentdhreemlisafeboclreum,riatbtiuieostnrweaefnedrdro'etedntnooot thgeaurnaerinao.nffteere tIots sell or a 3ccurac)' soWIicalltsattolIo'J'&toCbouy Inc ' … ,a n d , ita ' omdcieICreU lsdeldreeTt ohrea .!onr- WNlOl AWTHWLamb , …. .' i .

W—-a–l-s-Itnocn—&–C–o–. MUNICIPAL BONDS UNDERWRITERS MUTUAL FUHDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER June 9, 1967 The gyrations of the stock market during the past week were almost entirely in res- ponse to changes in the highly volatile Middle Eastern situation. A sharp decline, which began at the opening bell on Monday in response to the outbreak of the Israeli-Arab war, brought the Dow to the intra-day low of 836.92. When, by Tuesday morning, it became evident that the tide of the war was sharply in favor of the Israelis, the entire decline was retraced and further gains were chalked up on Wednesday and again on Thursday with most of the gain coming in the last few minutes of trading on the news that the UAR had a cease-fire. An incipient rally on Friday morning was stalled by renewed Syrian belli- cosity; — -', – , – – –' ' Two weeks ago we pOinted out that the May decline was the fifth interruption of the advance that began last October. We noted that the four previous declines ranged from 5.0 to 6.2 in amplitude, and from 10 to 12 days in time. We expressed the thought at that point that the decline then under way would be relatively similar. The Middle Eastern situation has, of course, made this prediction incorrect. At Monday's intra-day low, the decline had extended 8. 6 in the Dow and had lasted for 20 trading days, making it the most serious break since prices began their upward course in October. Nonetheless, we see no reason at this stage to characterize the decline as anything more than minor in scope. We suggested in mid-May that the important thing to watch would be the extent and character of the rally that ensued from whatever bottom d'-lthough the advance is now only four days old, it is possible to draw a few hi onclusions. Both market breadth and volume have acted I e rise. Advances outnumbered declines on all four days of the latter t eek, and over a thousand stocks advanced at the climactic reversal me tended to expand in the ad- however, has been the action of trials ever since the Ii e t\le rally .e has been moving counter to the Indus- i On May 9th. At that point, the Dow reached an intra-day p ve u a close of 874.89 on Friday. During the same period, the Rails a dv. r close of 235. 69 to one of 254.55. A great many market students h 'n 0 e accuracy of the Rail index as a barometer of pro- fessional investment The Rails are, of course, intimately tied to the outlook for the economy, and ersistent willingness of investors to pay higher prices for rail issues in the face of ncertain near-term prospects and a sharply declining stock market, certainly deserves comment. As noted, the above conclusions are tentative. The war-induced market decline at precisely the same level that had previously halted the declines in February and April. The 834-915 area now constitutes a potential intermediate-term top which, if penetrated on the downside, could lead to a decline of far greater proportions than anything we have thus far witnessed. Obviously, this potential would be cancelled out by the ability of the various major indexes to base out around current levels and move ultimately into new high ground. We feel that such an upside penetration is ultimately likely, but nonetheless suggest watching closely tO,see t,!e t!Ie technical damage which has been done by the decline. At present, the market appears to be groping to find new leadership. A great many of the issues which have led the advance to date are now quite adequately priced and can hardly be expected to continue to support a further upswing. A great many investment-o'r .. issues, by contrast, are historically cheap on an earnings basis, and have potential upside objectives well above current levels. With a few exceptions, however, most sum issues give no indication of any imminent upside move. Present leadership is highly fragmented and provided largely by special situations of various types. Such issues we endeavor to in- clude in our Recommended List. Dow-Jones Ind. 874.89 Dow-Jones Rails 254.55 ANTHONY W. TABELL WALSTON & CO. INC. AWT;amb This market letter 1.11 published for our convemence ana InfOrmatIOn and Is not an offer to sell or Il i!!OllCltatlon to buy any r.ecurlbes dlscuued. The In- formation was obtamed from we believe to be r!llobll, but we do not rroarRntee Its Walston & Co., Inc. and lts officera. direetol'/!l or enoloYee8 may have an Intereat In Or purehase and sell the securities referred to herein WNlOl —

Walston &Co. —';'-Inc MUNICIPAL BONOS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICES COA,ST TO COAST AND OVERSEAS TABELL'S MARKET LETTER June 16, 1967 With only a slight interruption on Wednesday, the Dow-Jones Industrial Average ex- tended its gains during the past week and reached an intra-day high of 892.80 on Friday. Since the turn in the Middle East crisis on June 6th, the market's response has, by and large, been dramatic. The Dow has advanced on eight of the nine trading days since that time and has recovered considerably better than two-thirds of the ground lost in the May downswing. The rise of the past two weeks has rapidly carried most of our short-term indicators from the fairly deep oversold position they were in just prior to the Israeli crisis, to an overbought'position atinid-week. Moreover,-at Frfday's'high,- the Dow;-and'most other broad market indices, had just about reached the upside objectives of the small base formed during the height of Middle- East hostilities. Thus, for the short-term, some consolidation, at least, is probably needed. For the intermediate-term, the situation remains somewhat clouded. We indicated last week that the market seemed to be groping for new leadership, and in a sense this pro- cess has continued. We have suggested our feeling tha t, if the advance is to be sustained, it must be accompanied by some leadership on the part of investment-grade issues. While som indication of better relative action in this area is taking place, it seems at the moment ten- tative and restricted rather than broad and dynamic, and it appears confined largely to a handful of special situations. Close analysis of individual chart patterns, however, reveals the existence of a goodly number of stocks whose technical patterns are still highly favorable and where there appears to be little indication of We think that,as long as the intermediate-term uncertainty continues,Ahe i s rve, his interests best by maintaining a fully invested position solely technically and fundamentally attractive. 1\ Y th stocks which appear The majority of the stocks on our listmr0MIri'u 0 perform satisfactorily. General Dynamics (74), reached a ridayls sessi.on ()f a.. resurgence in the aerospace group. h stocks in general are a ttrachve at this time and that GD, whi e in our list, continues to be interesting. output of the w il on – e to stir controversy, will undoubtedly assure earn- ings growth for th .11 h years. Another long- fa – e of this letter, Gillette (57 7/8) posted a new high at 58 3/8 during the week. The s 0 's liberally valued, based on current earnings, although a good improvement over the 6 results of 1. 75, probably to close to 2.00, is estimated for 1967. It is certainly arguable that a company with a record as good as Gillette's deserves a premium price. Fortune Magazine's annual compilation of the 500 largest industrial corpo- rations, released this week, had Gillette ranked in third place among the 500 in terms of percentage return on invested capital. In this area it was ranked behind only Avon P..'oducts and Magnavox, and earned a better return on capital than PolarOid or Xerox. The action of Phillips Petroleum (62 5/8) during the week has also been good, and we continue to think this integrated oil company represents value and a good deal of long range potential. Earnings for 1967 are estimated at around 4. 60, and a major expansion program is under way. We would continue to suggest purchase on minor dips in growth accounts. Some of the issues on our Recommended.,List,in,contrast to-those above, IR ve re- cently displayed some short-term weakness. Union Camp Corp. (41 7/8) continues to show unexciting price action, but we still feel the strong fundamental position and excellent management of this Kraft paper and board producer make it worth accumulation in long-term accounts. The paper priCing situation has, we feel, stabilized and this should permit BP to post its fifth consecutive earnings increase – perhaps to 4.20 a share in 1967. Despite its relative slowness over the past year, we continue to feel that the stock will reward long-term holders. Dow-Jones Ind. 885. 00 Dow-Jones Rails 256.47 ANTHONY W. TABELL WALSTON & CO. INC. AWTamb This m formati ark on eWt8Jie! ttoe1b'taiillnepdubflrioshmedsofourrceytol uwr ecobnevheemveentcoe and mformatlon and IS not an offer be reliable. but we do not gURrafltee to Bell or a solicitation to buy ita accuracy. Walston & Co., any Inc. and Its dtacuued. The in. officers, dlreetora or mAT have an JntereJt In or pUl'chase and sell the securItIes referred to herein WNlOl

Walston &Co. – – – – – I n c – – F) Le If MUNICIPAL BONOS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFFICES COA.ST TO COAST AND OVERSEAS TABELL'S MARKET LETTER June 23, 1967 As we pointed out in last week's edition of this letter, the stock market had, on a short-term basis, reached an overbought condition at last Friday's high. This was reflected in orderly weakness throughout this week with the Dow-Jones Industrials reaching an intra- day low of 868. 82 On Thursday. By the end of the week, most shorter-term indicators had retreated to neutral territory. Continued ability to consolidate gains would be constructive at this stage, and a further period of backing and filling would probably be required before any attempt is made at much higher levels. Meanwhile, we continue to feel that the most positive course of action is to try to select individual.issues which have above.average.appeal. One such stock, specula tive but attractive for accounts able to assume the risk, is reviewed below. TECHNICOLOR, INCORPORATED Current Price Current Dividend Current Yield 25 3/8 0.40 1. 60/0 What Walt Disney did for animated cartoons, Technicolor, Inc. has done for motion pictures, namely, increased attraction through the addition Long-Term Debt 10,800,000 Common Stock Sales-1967-E 39,357,080,400,060s0hs. Sales – 1966 95 380 000 Elrn. Per Sh. 1967-E 1,20-1. 25 Earn. Per Sh. 1966 0.90 of color. It is pretty well undisputed that color has been cess erensjopyoendsibbyleHfoolrlyawogored at deal of in recent the huge years. sucWith more and more films planned to be released in color, the of the company' ev continued expansion '!\ ded to this bright outlook i S a ac nce of color-TV and Mkt. Range 1967-66 271/4-7 1/2 Technicolo c ent y unced that it had finally t sion tapes. The sale of these .,!he revenues anc d earning power. -. – 1\'\\- -fe .- f-u-ture Technicolor widely used processes for motion pic ture color film photogra hy. I I to process black and while film. Plants are maintained in HoI ,California, as well as overseas in France, Englan and Italy. Sales a . ee primary areas of operationprofessional film proc- essing; sale of ince e er (lise; and amateur color film processing and the sale of photographic products. It is in this la amed area that an unusual amount of potential appears to rest. Tech nicolor pioneered in the production of low-cost, portable cartridge-loading motion picture projectors for 8mm. instructional and sales films. Last year, two additional projectors were introduced to accommodate super 8mm. film. This past Spring, a sound projector was intro- duced. It also utilizes cartridges. Production capabilities have been augmented to produce 8mm. and super 8mm. films. Producers now have a complete source in Technicolor for pro- ducing color films and for the projectors to show them. This should be a strong incentive to the education field for a sharp increase in educational-type films to help ease the rapidly in- creasing pressures on teachers. It is believed that about 20, 000 educational and training films now available can be adapted for this process. Earnings for the current year are estimated to approximately 300/0, with per share income rising to an estimated 1. 20 to 1. 25 a share, from 1966's 90 a share. Sales, however, may show little improvement over last year's 95.4 million. With profit margins continuing to widen, the outlook is for further earnings progress in 1968 and beyond. From the technical view, Technicolor has outperformed a majority of stocks in re- cent months, rising from a low point of 8 earlier this year. The base that has been built since 1965 suggests an initial price objective of 43. The longer-term objective is 58. There is support at 20. Added to the Speculative Price Appreciation section of our Recommended List on May 5, 1967, Technicolor again is recommended for purchase at current market levels. Dow-Jones Ind. 877.37 Dow-Jones Rails 255.05 HARRY W. LAUBSCHER for ANTHONY W. TABELL WALSTON & CO. INC. AWTHWLamb Thl. market letter III publllhed for your and tnfonnatlon Rnd Is not an offer to sell or a solicitAtion to buy any eeeurities dlaeussed Th i efomrgmlao.ytleoens mwaays hoabvtaeinaend Infrtoemr!8tsoIunrcoers PwUePcbheaslieevAendto8eb1le thne!hsaebcleu,ritbiuest rweeferdroedntoot hgeuraerinan. tee Ita accuracy . Walston It Co. Inc and Ita offi('!ers. 8 onr WN301

– — — — – TABELL'S Walston &Co. —-Inc —- MUNICIPAL BONOS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges MARKET LETTER OFl'Ces COAST TO COAST AND OVeRSEAS June 30, 1967 AMPEX CORPORATION Current Price 36 1/8 The Ship of Good Fortune has added Ampex to Current Dividend none its ports of call. To meet it when it comes in, Ampex Current Yield nil has assembled an outstanding array of money-making Long-Term Debt Common Stock Sales-1967 Sales-1966- 76,592,000 9,489, 183 shs. ideas, most of which are the results of an outstanding management team. Long used to working together, the President, Controller and two top-ranking Vice- Pres 214,700,000 168900;-000 idents formerly were -team priortocoming on the Bell to Ampex. W& hHiloew-tehlel executiv semen- e Earn. Per Sh.1967 1. 09 Earn. Per Sh.1966 0.91 have brought with them many changes, they have main tained the passion for quality that for so long a time Mkt. Range 1966-67 39 – 17 has characterized the Ampex product line. The results of this new team since 1961 are evi- dent. A growth rate of about 150/0 annually has been achieved. Sales doubled and earnings did even better in the five fiscal years from 1962 to 1966. For the fiscal year just ended, the sam rate of progress seems to have been maintained 10.3 million net, or 1. 09 a share, on sales of 214.7 million. This compares with 91 a share and 168. 9 million in sales for the fiscal year ended April 30,1966. For fiscal 1968, earnings are expected to rise to between 1. 25 and 1. 30 a share, while sales could see the 245 million level. Much of the success alr-eady achieved by Ampex can be attributed to the changing prod- uct line. Except for selling Bing Crosby the first tape network broad- casting back in 1947, Ampex had little to do with the e few years ago. In fact, in 1964 its consumer sales came to only 20/0 of . S then, the consumer has been high on the Company's list of target markets. few s ago, Ampex introduced three compact player-recorders retailing utilizing new reversible tape cassettes, onethird the sizeof products, and others that will flow fro e i (!5Yue, n,autQJ1.obile are expected to IDusic help re systems. Thes alize manage- ment's plan to have a than 250/0 of the 400 million minimum volume projected for 19 f om a scientific orientation to a mass-merchan- dising approach sho 1 in t rallel improvement in net earnings. Ampex invent T corder and holds the FM patent structure underlying all makes of video recor s. growth envisioned for this field is enormous. Once thought suitable only for the rec ng stutJios of telecasters and professionals, TV recorders now have been brought do to a price level believed to be within the potential reach of millions of homeowners. This year, Ampex will introduce a home video recorder, including camera, for 1,000. This is expected to find a ready market in educational markets as well. The rapidly growing popularity of cartridge-fed stereo recorders for homes and autos provides another big-plus in the company's future. Ampex has more than 1,800 musical se- lections in its tape library from which it is prepared to draw to meet the pre-recorded tape market demand, whether that demand be for reel-to-reel cassettes or for the popular endless loop cartridges . The steadily expanding need for information storage and retrieval systems could spot- light Ampex's Videofile. This system, selling for up to 2 million, incorporates all the re- sults of Ampex's years of R&D work in the magnetic recording field plus new areas of elec- tronics. The result is the filing and retrieval of information on a large scale and at like speeds. NASA and Southern Pacific Company are two of first customers. Technically, the stock earlier this year broke out of a consolidation area on the upside at 30, indicating an initial price objective of 42 followed by a longer term upside objective of 74. There is considerable support present in the 34-32 area, limiting downside risk. Ampex is being added to the Price Appreciation section of our Recommended List and is recommen- ded for purchase at present levels. Dow-Jones Ind. 860.26 Dow-Jones Rails 254. 84 HARRY W. LAUBSCHER for ANTHONY W. TABELL WALSTON & CO. INC. AWT HWLamb This market letter 18 publillbed for your convenience and antonnation and IS not an offer to sell or a soliCitation to buy Any BeC!uritiea dillcuued. The In formation ftd.ploYee8 was mD,)' obtained from sourees we believe to be r-ehable, but have an interest in or purchase Ilnd sell the securIties we re!e do rre dntoot guarantee berein. its Waldon &; Co., Ine. Ilnd ita offi.I'S, directors or WN.801

TABELL'S MARKET W- – – -a- 1lston-&- -C-o-. MUNICIPAL BONOS UNDERWRITERS MUTUAL FUNDS New York Stock Exchange and Other Principal Stock and Commodity Exchanges LETTER OFFICES COAST TO COAST AND OVERSEAS July 7, 1967 Some short-term improvement brightened the stock market scene in the late trading of last week. It remains to be seen whether this improvement can carryover so as to better the clouded intermediate-term picture mentioned by this letter sorre two weeks ago. To recapitulate, the situation at the moment, in terms of the Dow-Jones Industrials, is as follows After reaching a low at 836. 92 on the breakout of the Arab- Israeli war, the market rallied sharply as the success of the Israeli effort became apparent, and reached a high on June 15th of 892.80. At this stage, most of our shorter-term indicators became overbought, indicating that a short-term'peak'had beenreached.-Thissort of action was mildly disquieting as it constituted the first time since January that any short-term rally had failed to carry the Dow ouIto a new high. Subsequently, a reactionary trend set in, bring- ing the Dow to an intra-day bottom on Monday of this week at 853.21. A sharp rise took place in Wednesday's post-holiday trading, and after a consolidation on Thursday, Friday's advance to an intra-day peak of 874.42 was accompanied by impressive volume of 11.,540,000 shares. Equally impressive was the action of the Rail Average which continued its almost uninterrupted uptrend, posting a new rally high at 261. 91. Most persuasive, however, was the action of our daily breadth index which, on Friday, moved above its June high with the averages still well below their pre- Israeli crisis peaks. This sort of action, 1. e. , breadth moving into new high territory ahead of the averages, is highly unusual and generally indi- cative of a very strong market. However, while the short-term picture has the intermediate- term picture remains in doubt. Essentially, the market y weJ as having held in a trading range since critical poirytz at tern n , on the downside, the 840-835 level which has now halted three 0 lnce February; and on the upside, first, the June high of 892.80, and th high of 915.871 Pene- tration two latter points woul.d October is llkely to assume the t ,- 1. e., a move to' new high terntory substantially above the February 196 e the 840-835 low to fail to hold, a rather protracted interruption of downside implications b V certainly be indicated, with possible It is a tim w i , e great deal is dependent on a rather uncertain funda- mental economic si 1. es when the economic outlook is clear, the market generally tends to dis At a time when it is clouded, such as the present, the mark s highly likely to move in response to economic news. Thus, the clearly bright economiC outlook for 1966 coincided with a major top early in that year, and the clearly questionable economic outlook for 1967 coincided with a major stock market bottom. At the moment, by contrast, while a great many economic observers are forecast- ing a dramatic business recovery in the latter part of 1967, an equally responsible body of opinion looks for, at best, only moderate improvement. The importance of economics as the deteqnining factor is underscored by an exami- nation of the r'3lative position of individual Q'he one major unexploited area in towy', market situation embraces the cyclical and semi-cyclical blue-chip stocks which require the impetus of an expanding economy in order to show good earnings growth. Were evidence of economic expansion to be immediately forthcoming, it would seem likely that these issues could provide the sort of leadership which could cause a further extension of the advance The failure of an upswing to appear in the economy, could well cause a rather dull market in which individual issues might do well, but the action of the popular averages would likely be on the heavy side. Dow-Jones Ind. 869.05 Dow-Jones Rails 260.75 ANTHONY W. TABELL WALSTON & CO. INC. AWTamb Thill market letter (s published for )'our conve-nienee and mformatlon Rnd Is not Rn formatJon enJDloYeelil W8.! may obtained have an from BOuret'!! Interest in or pwupechbaeslieevaendtosclb1e uhable, but the secUrities we do not referred to 81IRrantee herein. to Bell or II. soliCitation to buy lts .accurncy. Walston & Co.. !lny Inc. seeUTltH1I U1IICU8sed, The and Its offlcers. dlrectors In- or WNSOI

Walston & Co. Inc MUNICIPAL 8ON1S UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges TABELL'S MARKET LETTER OFFICES COAST TO COAST AND OVERSEAS July 14, 1967 The silly season is with us again — has been with us for some time in fact — and it is, we suppose, time that due note was taken of the fact in this letter. We refer, of course to the tumultuous activity and wide gyrations in a variety of what have come to be known as swinging stocks — most of them on the ASE and Over-the-Counter, and engaged in wild, improbable businesses that very few people understand. We have seen it all before, of course. One or'the stock market's most dependable tendencies is to repeat the same old show with a new.cast,oLcharacters ….The fact was noted by the writer's late father who once said in this letter, It is like watching the Late Late Show on TV. You don't recognize the show immediately, but slowly the characters and plot become familiar and you realize that this is where you came in twenty or thirty years ago. The same thing happens in the stock market. The people and the stock change, but the plot remains the same. The only difference in this case is that instead of our having to wait twenty years for the show to be repeated, the rerun is taking place after only five years have elapsed. Substitute computer-leasing for bowling, and optics for transistors and, 10 and behold, the merry days of the Spring of 1961 are with us again. And yet, there is a difference. One difference, we think, lies in the awareness of the unreality of it all. For example, if this letter is the first notice the investor has seen that speculation is taking place, it is safe to presume that he has been on a desert island for the past six months. Each rise in volume on the upmove in an over- the-counter stock, is accompanied by universallamentati s, and head-shakings in almost every segment of the financial press. ThfYIDoffl'a d ' re of the problem is shown by the recent rash of 100 margin 8 e the American Stock – We suspect, moreover, that, mo of the game on the part of the player . high-stakes poker game is a e I'l here is an awareness of the nature tanto The man who sits do;;vn to a may lose a substantial sum of money, players are not awar 0 t . e e taking and become subject to the mass illusion that the stock mar f I! s participants the God-given opportunity to become rich without effort. i so euphoria has not, it seems to us, occurred. The most imp t difference between tOday and 1961, however, is the fact that the investor has the opportunity to opt out of the game without the prospect of being affected seriously. To carry the poker game analogy a bit further, I am perfectly willing to have my neighbors winning and losing money in a gambling orgy next door for so long as the noise does not disturb my sleep. In 1961, almost all stocks had become subject, in greater or lesser degree, to speculative over-valuation. We all remember the fact that five years ago assorted electronic stocks were selling at astronomical prices. We have tended to forget the fact that General Foods sold for 40 times earnipg s and Minnesota Mining sold for 65 times earnings. It was very hard to take refuge in quality, and when 1961 came to its inevitable end in 1962, the gOOd, by and large, collapsed along with the bad. By contrast, today, quality is avaIlable and available cheaply The–Central character istic of today's speculative activity is its complete failure to spread to large numbers of medium to better-grade stocks which, at current levels, represent sound value by any rational historical standard. It is, we think, possible today to try to do a rational job of money management without too much worry of being affected by the fallout which will take place when the speculative bubble bursts. Dow-Jones Ind. 882.05 Dow-Jones Rails 267.27 ANTHONY W. TABELL WALSTON & CO. INC. AWT;amb Thll! market letter Is published for your convemence and infonnatlon and is not an offer to sellar a sohcltatlon to buy any seeurittee dUlcusaed The formatJon waa obtained from sources we believe to be reliable. but we do not gUarantee Its accuracy, Wailiton & Co., Iru. and Its ofBeera or employees may have an Intereet in or pUl'cbase and sell the seeurltieB referred to berl!m