W- alstIoncn. S-Co. MUNICIPAL BONDS UNDERWRITRS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchenge. TABELL'S MARKET LETTER OFFIC&S COAST TO COAST AND ovnSEAS July 21, 1967 In our letter of three weeks ago we made, among others, two points regarding the in- termediate-term market picture. We said – The critical pOints at the moment are, on the downside, the 840-835 level which has now halted three short-term reactions since February; and on the upside, first, the June high of 892.80, and second, the May 9th high of 915.87. We further noted – The one major unexploited area in today's 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'wliich-could cause-a-furthe-r 'the 'ad-vanc-e;— In this light, last week's market action was interesting. On Tuesday, Wednesday, Thursday and Friday, the Dow advanced almost ,36 points to an intra -day peak of 918. 69, thus exceeding the May high. Volume on the advance was heavy. Even more interesting was the fact that the Dow-type stocks were the market leaders, as evidenced by the fact that there was only a slight plurality of advances over declines – although the Dow was up sharply. Although we think this augurs well for the market, advances brought many of our shorter-term indicators into overbought territory and some consolidation would appear necessary. On any weakness, additions to holdings in selected stocks would appear advisable and we would add the following issues to our Recommended List if the buying levels mentibne below are reached. Other issues of interest also are commented upon. Allied Supermarkets 16, Amerada 80, American Machine & Fomdry 21, Anaconda 46, Diners Club 34, Pennsylvania Railroad 64, and Mc or tion 30. AMERICAN TEL & TEL – Mother Bell has had a u e 0 late due to the re- cently issued FCC report. However, it is believed . er-reacted to the selling pressure, much of which has been emotional 1 xure. is in the ,Quality & Lon Term Growth section of our Recommended lsturb holdings in this cate- . .! o' on continues to be that this stock . is forming a base in the 50-60 area long-term growth accounts to rc GOODYEAR TIRE & R W ur decline wOuld make it attractive for – re'\rYd rubber stocks in general have been poor mar ket performers this y r b ed labor conditions. The last to be struck, Good- year, has not yet ith the union. However, several other industry leader have signed new cont t and' s only a matter of time before Goodyear does the same. Thus, it remains on our Q y list and appears attractive for current purchase. SCHLUMBERG – SLB has had a dramatic rise since our recent writeup and althou it has reached the initial price objective at 74, it has potential for a further goal around 110. Until such time as deterioration shows up, we would continue to hold and buy on weakness. ' STEELS – This group has shown definite improvement of late, reflecting hopes that the low has been seen in auto sales and that a further rise in that industry would lead to a pickup in steel production. With this group likely to show further improvement, stocks on our list like Allegheny Ludlum, Copperweld Steel and Sharon Steel continue to warrant consider- ation. Republic Steel, is also considered attractive, and may be added to our list shortly. TOBACCOS – In like manner, current enthusiasm for tobacco stocks pOints up the underlying value in Reynolds Tobacco, also on our list. RJR has a price objective in the 74-plus area and.good support in – — – . — .- – — – . A new issue of our Recommended List will be out next week and available from your Walston & Co. Inc. Account Executive. Several changes have been made in this list since the last issue, especially relative to upside price objectives and support levels. Dow-Jones Ind. 909.56 Dow-Jones Rails 272. 99 HARRY W. LAUBSCHER for ANTHONY W. TABELL WALSTON & CO. INC. AWTHWLamb Thill market letter 1. published for your convenience and Information llnd ia not an offer formation employees W&!I may obt&l.ned from sources have an inter8t in or we believe to be rehable, but Bnd sell the lIecnritlea rweeferdroedntoot tuArantee herein. to eell or a soliCitation to buy Us accuracy. Walston & Co an,. Ine. eec\Iriti and ite eo.ffdilclelCr.u. udedlr.t eTthoen In-. 01' .. ,,-

Walston &Co. /LE MUNICIPAL BONDS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OFF-ICES COA5r TO COAST AND OVERSEAS TABELL'S RECOMMENDED LIST July 24, 1967 !hi.s edition of our Recommended List gives long-term technical upside objectives, plus mdlCated support levels or shorter-term downside objectives. In all cases, we believe the st.ock.would be attractive for purchase at the levels given in the support column. An astensk in the Upside Oqjective column indicates that either the objective is unclear, or that the stock has not yet broken out of its base formation. -. Close 7/21/67 Alum.Co.Amer. 84 5/8 Amer. Can 58 3/8 Amer T & T 53 Colgate Palm. 33 7/8 Columbia Broad.59 3/8 Cont'l Ins. 35 Cont'lOil 67 1/4 Goodyear Tire 48 Qual- B B A AA A A TERM GROWTH Upside SupObj port 110-190 80-75 77 55-50 41-52 52-50 32-30 84 58 108 80 91-130 62-58 82 44-42 Close 7/21/67 Gulf Oil 69 1/2 Int. Paper 29 1/2 Nat' Cash 102 Parke Davis 27 5/8 Phillips Pete 66 1/8 Reynolds Tob.42 1/2 Royal Dutch 36 7/8 Quality A AA A A A A Upside Obj. 78-92 180 120 74-124 86 Support 65-6 28-2 9026 60-56 40-38 32 PRICE APPREClATION Close Qual- Upside Sup- 7/21/67 Ob. port Adams- Millis 563/8 B '.' 52 Air.Reduction -.121L4 ..JD39 Allegheny Lud. 78 A- 102 56-54 Amer. Potash 47 1/2 B 48-60 46-42 Ampex 36 B- 55-74 34-30 Anchor Hock. 47 114 A 68-90 47-42 Cenco Instrum. 55 3/8 B 68 48-44 Cinn. Milling 67 3/4 B 75 60 Commonw'th Oil 26 3/8 46 24-22 Comsat 71 1/8 104 60-55 Copperweld Steel 28 1/4 B 54 25 Dresser Ind. 39 1/8 B 57 35 Eagle Picher 38 3/4 B 60 32-28 Eaton Yale T. 32 B 49 28-25 Ex-Cell-O 61 1/2 A 90 54-50 Gen'l Dynamics 75 92 66-63 Gillette 58 1/2 A- 80 56-54 Gr. North. Paper 48 B 90 40-36 Kelsey-Hayes 41 1/2 B 54 37-35 SPECULATIVE PRICE Close Qual- 7/21/67 ity Koppers Co 42 1/2 B Mead Johnson Upside Obj. 62 92 Support 35 31-28 Mesabi Trust 13 1 8 – Olin Mathieson 705/8 B Revlon 63 1/2 A- Reynolds Met, 53 B Riegel Paper 217/8 B Robt. Cont.r ols 331/4B Schlumberger 69 3/4 A Scovill Mfg. 43 B Seaboard C.L. 66 7/8 B Sharon Steel 33 7/8 B- Shell Oil 67 3/8 A Signode Corp 38 7/8 A- Tektronix 44 Union Camp 39 1/4 B United Fruit 48 B Wallace & Tier. 481/4- A- 80-130 100 94 34 58 74-110 88 84 70 75-120 50 66 92 70 63 12 65-60 55 48-46 17 32-28 68-64 38-34 62-57 30 66- 36-33 42-40 38-36 45-42 45 — —- ——-…- – —–.– APPREClA TION Camp. Chib. Chris-Craft Home Oil A Microwave National Can Pacific Pete. Close 7/21/67 9 1/2 35 1/8 22 7/8 35 37 3/4 16 1/4 Qual- B B B B B Upside SupObj port 16 8-6 46-68 32-27 34 19-16 40-72 32-27 52 32-27 30 14-12 Close Qual- 7/21/67 ity Syntex 82 Technicolor 32 1/8 B UMC Ind. 23 3/4 B Varian Assoc.37 1/2 B Victoreen 14 3/8 C Vulcan Mat. 22 7/8 B Upside Obj. 150 58 58 58-84 20-38 37 Support 80-70 27-24 20-17 36-30 14-12 20-18 Anthony W Tabell Walston & Co. Inc, This BuJlelln IS pubhshed lor )our .w,\ ,nfOlmallOn 110,1 If, not ,m off,r to ReI! or Il to 1m 'curlL1t'S rll'l'..tl;'Wd. Th (,CarnRtion Obuunl'(i from we 'Ill V\! to h. Ich'llJle. but WL tlo not gU-ll,mlec It,; -lCCUI,l!'V W.1b,ton &, Co. Ire and It., officers, (lLlcctors or CTYLpioecs tray have nil lIIlcrest In 01 ,Inti …ell th\ … rcicllc,j to helem. II.–S 16

W—a-lrsntocn.-&-C–o-. TADELL'S MUNICIPAL BONOS UNDERWRITERS MUtuAL FUNDS Members New York Stock Exchonge and Other Principa' Stock and Commodity Exchange. MARKET LETTER' OFFICES COA,ST TO COAST AND OVERSEAS July 28, 1967 As far as the general market is concerned, recent action seems somewhat inconclu- sive Th week of July 17-21 featured a sharp rally in which most of the popular averages attaIned hIghs around or slightly above their May, pre-Near-East-crisis peaks. The rally was led by Dow-type stocks and, while the averages were strong, declines tended to exceed advances. By the end of the week, most of our shorter-term indicators indicated an over- bought condition. A rather sharp decline on Monday ensued, and the rest of the week saw action directly opposite to that which had occurred in the previous week — the averages moved sideways while advances tended to exceed declines and impressive numbers of new highs in individual issues were – — — 1- We are dubious about the prospects for an immediate continuation of the overall market advance. The overbought condition of a week ago has not yet been corrected, and we feel that a moderate downswing, or at least a consolidation, should occur before another attempt to breach the 1967 highs, – this time, perhaps, decisively, takes place. While the immediate future is a bit clouded, we do feel, however, that a distinct change in the market's character has taken place. A great many new stocks are showing im- proving techr.ical action, while a number of former leaders are exhibiting market of technical deterioration. We are, therefore, commencing this week a review of major indus- trial groups with short comments on group action and notes on the technical patterns of typi- cal individual issues within each group. This will be continued in subsequent issues of this letter until all groups have been reviewed. Issues marked with an asterisk () are on our Recommended List. AGRICULTURAL EQUIPMENT – Group relative st e 0 s poor and there is little prospect for immediate price improvement. appear available elsewhere. VJ, ap lation op.portunities AEROSPACE – Long-term group upward and at a faster pace tile dIPS can be used for purchase. mics 92, Grumman 70, Loc ee – – AIRLINES – This roup, r t '. we. not,ed. Any further 1 e es are Boemg 175, General Dyna- las 70. e ket leaders over the past two years, has shown distinct signs OD d not too far below c e I cent weeks. Downside objectives in most cases are I e think relative action may continue to deteriorate and that other areas offer 0 e a tion. ALUMINUM – R a of this letter are aware that we have been favorably inclined toward this group, alt gh we must admit some disappointment over the recent action. None theless, major issues are close to support levels and we would continue to hold and buy on minor dips in long-term investment accounts. AUTOMOBILES – The graup trend is distinctly upward, but action relative to. the overall market has only been average. We can envision trading rallies, but would prefer to use strength to switch aut of these stacks in longer-term accounts. AUTO EQUIPMENT – In general, these stocks laak more attractive than the automo- bile companies. We continue to favor Eatan, Yale & Towne, ESB, Inc., and Kelsey-Hayes . BUILDING MATERIALS – We feel recent strength in this group has been premature and more work will probably be required around current levels. Other issues offer more attraction for long-term capital gains, o.ur opiniS'!!,. CHEMICALS – Price action within the group is diverse. We feel that industrial gas companies, such as Air Reduction , Air Praducts and Chemetron are attractive as are special situations like' Olin Mathieson and Hercules, Inc. Mast of the majar companies, however, will prabably require mare time to complete their bases, and switches on strength should be considered. COAL – Largely unsung, this group has been one of the relative strength leaders over the past year. Upside objectives are higher in most cases, and we would be inclined to hold positions. COSMETICS – Another group showing superior relative strength action. Lanvin-Charle of the Ritz and Rayette-Faberge are approaching upside objectives, but Revlon still has a higher indication. Avon Products remains in its consistent long-term uptrend. Dow-Jones Ind. – 901. 53 Dow-Jones Rails – 272.38 ANTHONY W. TABELL WALS;roN & CO. INC. 1I'D,.1nfTobrlma amtioanrkmw. ale., tMtoebrvtaeIl.naenpduIbfnrlltolemhre.edn.ofIuonrreoYersOpUwur peccohbnaevalieeenvaieenndtcoeRblaientdhreeIlni8afeboelreum,riabttiueiostnrweRefenlddToeIsdnntooot thIreaUrDeIilrnoa.fnfetere tiots sell 01' R solicitation !Lccur.NlY. Waleton t 4 oCbou.,y Rny Inc. asnecduritistieosffdiclsecrus.eadeidr.ecTthore. In or

W—a-l-sltnocn.-&-C–o-. MUNICIPAL BONOS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchenge end Other Principe I Stock end Commodity Exchenges OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER August 4, rlLt 1967 Last week saw a good deal of highly significant action in the equity market — – action perhaps more significant than has occurred at any time since early January. The first three days of the week saw a dramatic rally with the Dow-Jones Industrials up over twenty points in three trading sessions on record high volume. Leadership was quite obviously concentrated in the investment-grade sector of the market as the majority of performance stocks continued to deteriorate markedly. On Thursday, the announcement of President Johnson's decision to request a 10 tax surcharge saw the Dow down close to ten points at noon, but asharprecovery er-asedalmostcthe entire,decline,-and the advance . continued on Friday, reaching an intra-day peak of 931. 06. The action was highly reminiscent of the behavior of the market on January 11, 1967, the day after the tax increase was first proposed in President Johnson's State-of-the Union message. On that day, after a sharp decline in the first hour, the market rallied sharply to end the day on the plus side, thus touching off the 1967 upswing. In last week's action, the popular indices broke decisively out of the trading ranges in which they had been contained since February. Regular readers of this letter will recall the stress that has been placed for the past two months on these ranges, and the fact that the direction of the ultimate breakout from these trading areas would probably indicate the inter- mediate-term course of the market. That breakout has now taken place on the upside. Thus, two of the most important market weeks of 1967 are connected intimately with S 'the tax increase. Obviously, the underlying theory is quite Administra..tion be- lieves that the economic downtrend which began in 19 e ct, run its course and that the major danger in late 1967 and 1968 will f .g flationary fires by a large, Vietnam -caused government deficit. The tax . direct effort to reduce that deficit and thus allow the Federal ursue the expansionary policy it has pursued since last October. ,ns is concerned, is that, in this sort of envLronment, t e n ,,1;1 very in 1968 could be quite drama tic — possibly enough to offset the a add to earnings in a great many cases. Last January, whe e'Wbf tax increase first came up, this letter used the following language t 0 in this case, we think, is not so much the ultimate economic effect of ttl cu , he cold hard fact of the market's response to it. What the stock market is, in ac ying by its sharp advance last week, is that it is willing to adhere, at least for the e being, to the Johnsonian idea that the 1967 contraction will be both mild and short. is also recognizing the fact, both implicit and explicit in the Presi- dent's speech, that tight money is a thing of the past and that the pressure on common stock prices due to much higher yields available elsewhere will very shortly be eased substantially! We think the words bear repeating at this time. The action of the market over the past week, to us, reflects continued confidence in the Administration's belief that the spectre of recess- ion has been laid to rest and the outlook is for further economic expansion in the fourth quar- ter of 1967 and on into 1968. It is, of course, the cyclical and semi-cyclical investment-grade companies who can be expected to be the chief beneficiaries of such an economic climate and it is Significant that, at this point in time, the to companies of this type. The market is obviously well past the so-called non-selective stage where almost everything does more or less well, and in order to achieve investment success in the latter half of 1967, some radical shifts will probably be necessary in a great many portfolios. In accordance with this thinking, we will continue next week with the review of individual industry groups started in last week's letter. Dow-JrJnes Ind. 923.77 Dow-Jones Rails 274.49 ANTHONY W. TABELL WALSTON & CO. INC. AWTamb Thill market letter ia pubhshed for your Ionvenlenee Bnd Information Rnd ig not an offer to sell or a soliCitation to buy Bny IM.CUTltle8 .hscuued The in. formation Was emDtoyee8 may obtained from BOurces we believe to be but have an Interest in or pUFchMe and sell the seeurltlf!'ll we refe rdroedntoot gullrantee heIeln Its accuracy Walston & Co., Inc. and Its officers. directors or WNBOl

r——cc——–c-c— .-….-..-.— W—a-lIsntocn.-&-C–o-. MUNICIPAL BONDS UNDERWRITERS MUTUAL FUNDS Membe.. New York Stock Exchange and Other Principal Stock and Commodity Exchange. TABEll'S MARKET lETTER OFFICES COA,ST TO COAST AND OVERSEAS August 11, 1967 Irregularity featured last week's market, which included four shortened trading ses- sions due to the pile-up of back office work in brokerage firms. Weakness on Friday brough the Dow-Jones Industrials down to an intra-day low of 915.57. As outlined in recent letters, probabilities seem to favor a continued uptrend wit h further dominance on the part of investment-grade issues. However, the sharp runup from the early July lows (the sharpest short-term advance since January), may require some consolidation or correction before the major upward trend resumes. We are continuing be- low with our review of individual industry groups. Issues marked with an asterisk () are on'our DEPARTMENT STORES – Distinct signs of a major reversal are appearing in this group and they should be considered for accumulation by patient quality-minded investors. Federated Department Stores appears the most interesting. DRUGS – Group action, both relative and actual, is good, but there is wide disparity in individual technical patterns. Upside objectives are being reached in most hospital supply and proprietary drug issues, but no signs of pronounced deterioration are apparent. Sterling Drug continues attractive. ELECTRICAL EQUIPMENT – A very interesting group which shows signs of having reversed itself rather quickly after the 1966 slide. General Electric has a possible upside objective of 160, although supply at 110-120 may stall The action of West inghouse is also interesting. ELECTRONICS – Technical patterns in this 0 ia ny of the issues in the group which have led the upswing so far are rea . obj i such as ,Hewlett-Packard Foxboro and Perkin-Elmer. Fairchild Camera ook k should be avoided. Texas Instruments is close to support at the 120 Ie sti a long-term higher objective. . . -. FOOD – Some very int e patterns in this group. Del Monte has an upside objectiv i tiE n General Foods can be accumulated in investment accounts. United u e look higher. GLASS – N c r raction in major companies at this time. LIQUOR – Gro rs to be completing base patterns, but more time is probably needed and would defe purchases for time being. MACHINE TO LS – Despite sharp runup, group continues attractive and most issues should be held. MACHINERY – Patterns are diverse. Caterpillar Tractor is interesting with object- ive in the upper 60's. MAIL ORDER – Montgomery Ward will probably be slow. Sears Roebuck may re- quire more time to complete base. MEAT PACKING – Some relative improvement is being evidenced. Swift could be in- teresting at this point. MINING – Copper stocks are showing distinctly improving action. Both Anaconda an Kennecott could be purchased in moderate risk accounts. MOTION PICTURE – Relative action has been good; but the better acting issues are beginning to approach upside potentials. Would hesitate to make new purchases at these levels. NATURAL GAS – Group will probably cont inue slow for the time being, although long- term potentials are considerably above current levels. OFFICE EQUIPMENT – As a group, these issues. continue to show above-average relative strength. However, many, including the volatile Control Data, IBM and Burroughs, have reached upside objectives. National Cash Register , however, continues to look higher – as does Pitney-Bowes. Based on recent action, further weakness in Xerox is a possibility. Dow-Jones Ind. – 920. 65 Dow-Jones Rails – 262.04 ANTHONY W. TABELL WALSTON & CO. INC. AWT'a mb This market letter III pubU8hed for your convenience and InformatIOn ftnd is not an offer to sell or a soliCitation to buy an)' aeeurltiee dlseussed. The inefomrmplaotyJeoens mwaays hoabvtaeinaend IfnrtoemrestlOinuroeers pwurechase andtosebllethreelisaebclue.r.ibtiuest rweeferdroedntoot hgeUraeirna.ntee Its aceumcy, Walston & Co.. Inc. and its ofIicera, direeton or WN101

Walston &Co. —–Inc ;-.— MUNICIPAL BONllS 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 August 18, 1.–1 L 1967 As measured by the popular averages, the stock market did little or nothing during last week as shortened trading sessions continued to curtail volume. The Dow-Jones Indus- trial Average closed the week at 919.04, virtually unchanged from the week-earlier close at 920.65. The Rail and utility Averages slipped slightly lower. Despite the dullness, there is wide diversity in the action of individual stocks. So- called glamour issues continued to fade and to exhibit marked technical deterioration while in general, better-grade stocks held firm or advanced. This sort of action has been typical over the,past few weeks and\Ve\Vould,epect its in.the.future. . As a guide to investors who wish to'upgrade their portfolios, we are concluding be- low our review on major industry groups. Investors having specific questions on stocks not mentioned in this or the past two letters, may contact their Walston representative for details. Issues marked with an asterisk () are on our Recommended List. OILS – Varying degrees of attractiveness exist in all segments of the oil industry. In the Producing segment, Amerada was added to our Recommended List when it reached a buying level of 80 earlier this week. It has an upside objective of 140. While the Domestic Oils have not been spectacular, they have, nonetheless, exhibited steady strength over the past year and continue to be strong holds in investment-grade accounts. Continental Oil , Cities Service, Phillips Petroleum and Shell Oil should be retained and can be bought on minor dips. In the International Oil field, Gulf Oil only really strong stock and should be held for a long-term objective of 92. Dutch and Standard Oil of New Jersey may be bast3!. be slow. II. Gj' OIL WELL SUPPLY – Dresser Industr' , ger , with a longer term objective of 110, a e ttr er evidence tin t Royal t oug . mediate. action may – jective of 57, and Schlumber e. action tinue to feel that patience fairly priced for the patient Ion t one of the more intere h waPHOTOGR s- but'we conand International Paper appear de,\ Great Northern Paper continues to be a risk situations. ng-term growth potential of Eastman Kodak and Pola- roid is undoubtedly tlie . PiE's and deteriorating short-term action make the im- mediate picture questio Would defer new purchases until some indication of technical improvement takes pla RADIO-TV – There are definite signs that this group may have completed base pat- terns. Radio Corporation and Zenith look particularly attractive. RAILS – Group action is mixed, but, in general, merger rails appear to have above- average technical attraction. This would include Seaboard Coast Line , Pennsylvania, New York Central, Great Northern and Northern Pacific. — SAVINGS & LOANS – Potentially strong patterns are forming, but there is some question as to whether more work may not be needed. SOAPS – Colgate-Palmolive continues att ractive. Procter & Gamble may be held. SOFT DRINKS – Major stocks appear adequately priced at this point. STEELS – Relatively, this has been one of the best acting groups in the market on a short-term basis, and it remains'tobe seen whether this can transiate itself into long-term relative improvement. Copperweld , Sharon and Republic Steel appear to be attractive vehicles. SUPERMARKETS – More work will be needed, and group can be avoided for the time being. TEXTILES – In most cases, we would doubt if recent short-term strength will develop into a major move. TOBACCO – Most stocks appear to represent excellent value at this stage. American Tobacco, Lorillard and Reynolds Tobacco appear interesting for investment accounts. UTILITIES – Group represents long-term value, but there is no indication of an im- mediate move. Dow-Jones Ind. 919.04 ANTHONY W. TAB ELL WALSTON & CO. INC. Dow-Jones Rails 258.07 Thll! market letter III published for your formation WE18 obtained from 80urces we believe to and information Rnd 18 not an offer be reliable. but we do not guarantee to sell or a BOilcilation to buy its 3ccuraey Walston & Co., Rny Ine. asnecduriuitieosffdiclearesu.ssdeidr.ecTtohres inor AWT'a b!!!I'p'loyees may have an Intereat In or purchase and sell the securities referred to herein. W H. . . I

Walston &Co. MUNICIPAL BONDS UNDERWRITERS MUTUAL fUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. TABEll'S MARKET lETTER OFFICES COAST TO COAST AND OVERSEAS August 25, 1967 Equity markets were generally reactionary throughout most of the past week. The Dow-Jones Industrial Average posted declines on all five days of the week, although volume dried up noticeably on the downswing. It is interesting to note that the return to full sessions brought generally lower volume than had occurred in the prior two weeks when the 2 p, M. closing was in effect. At Friday's low of 888.81, the Dow had declined 4.8 from its August 10th high and had retraced a bit more than half the advance from the July low to the August peak. The de- cline was the fifth identifiable downswing that has taken place so far in 1967 and, to date, has failed,to,develop.a ny-characteristics.which.differentiate it.from,the.previousfour. – Thefollow ing table, which gives some data on the five short-term rallies and declines which have characterized 1967 so far, may be of some interest. RALLIES DECLINES DJlA Date High Change From From Prevo Low High No. Of Days DJlA Date Low Decline No. Of Retracement Day Jan. 4 776 16 Feb. 9 871.71 Mar.27 883.41 May. 9 915.87 Jun.16 892. 80 12. 3 6. 7 9.2 6. 7 5. 4 1.3 3.7 -2. 5 26 Feb. 28 827.95 5.0 18 Apr. 11 838. 98 5.0 22 Jun. 5 836. 92 8.6 9 Jul. 3 853.21 4.4 45 80 103 54 11 10 18 11 Aug.10 933. 14 10. 9 4.5 26 Aug. 25 to date. W 80 56 11 Before discussing the present downswing it . e amine the rally which preceded it. As the table shows, the advance which in e July and ended on the 10th of August was the second most dynamic alling only slightly short of the January,Februa.ly-upswing.in r e e trading Wdays. As we pointed out three weeks r as significant in a number of ways. Firs of all, it brought the Dow e range which had contained it since Febru- ary. Secondly, it breach pp Y which existed between 860 and 910 dating back to the May-July 196 t d n . hermore, this advance was accompanied by confirm- ation in weekly brea . a ook place on gratifyingly heavy volume. Its significance was important at that e do not believe that significance has altered today. Naturally enough advance of this nature produced an overbought condition on a short-term basis, and orne correction or consolidation was inevitable. What has ensued so far is hardly out of line with the shorter term corrections which have characterized the year so far. The percentage decline so far has been about the same as the February, April and June declines and has been somewhat less than the 8.6 drop chalked up at the time of the Middle East crisis. The eleven trading days duration is about the same as in all the declines but May-June, and the percentage retracement is, so far, in line with two of the previOUS downswings. At the moment, our short-term oscillator has reached oversold territory, although no recovery indication has taken place as yet. One downside objective has been reached, althoug there is a possible 880-870 in the pattern. This would constitute a 70 to 80 retracement of the overall advance – – again not'6litcif-line' with- 1-967'experience– Meanwhile, while all this has been going on in termS of the averages, a distinct chang in the character of the market has been taking place. This can be best illustrated by com- paring the action of two stocks — Xerox, a growth stock par excell,ence, whi;h sells t an as- tronomical p/ e ratio and yields next to nothing, and Anaconda, hLghly cyclLcal, WhLCh sells at a low price/ earnings ratio and yields over 5. Xerox scored new highs along with the Dow at the February, March, May and June peaks, but failed to parti,cipate in, the Au- gust rally and recently posted a new low below any prevLOus bottom made smce April. Ana- conda, by contrast, which failed to better its February peak in either March or May, scored new highs in both the June and August rallies and is still well above its erly July bot tom. Looked at another way, the investor who bought Xerox at LtS low of last Aprtl, currently has a loss, while the buyer of Anaconda has a 20 profit. It is highly likely that this kind of shift will continue regardless of what kind of overall market pattern develops. Dow-Jones Ind. – 894.07 Dow-Jones Rails – 256.96 ANTHONY W. TABELL WALSTON & CO. INC. bThis market letter ia published for your convenience and information Rnd is not an offer to sell or a soliCItation to buy any formation emgloyeetl was mIL)' obtamed from sources we believe to be reliable, but have an interest in or pUl'chaae and &ell the seCuTltlea we refe rdroedntoot guarantee herem. its accuracy. Walston & Co., Inc. asnedeuritiatleosfBdeiaecrus,aadeidr.eeTtohrea or WN,IO'

W- – -a-lIsntocn. -&– -C-o-. MUNICIPAL BONDS UNDERWRITERS MUTUAL FUNDS Membe.. New York Stock Exchange and Other Principal Stock and Commodity Exchanges TABELL'S MARKET LETTER OFFICES COAST TO COAST AND OVERSEAS September 1, 1967 The stock market shrugged off at least part of its lethargy last week with the most significant action being Thursday's trading when the Dow scored a 7 1/2-point advance on volume of almost 9 million shares — a level that had not been seen since the early part of August. Actually, the underlying tone was a good deal firmer throughout the week than most averages indicated, and advancing stocks outnumbered declining ones on all five days. Most of our short-term oscillators had rebounded by mid-week from moderately oversold terri- tory, thus indicating that another short-term rally phase is now, or may be shortly, under way. If this is the case, it is too early at this stage to suggest just what the upside objective for such a rally.might be. –. – — — Once past Labor Day, the pace in the financial community generally quickens and the lethargy which characterizes the traditional Summer vacation period tends to disappear. A great deal has been said about seasonal patterns in the stock market of late, most of the comment centering around two facts – (1) That years ending in 7 have historically tended to be weak market years, and (2) that September and October, more often than not, have often been declining months. We would be hesitant to ascribe too much practical value to either of these facts. The first we regard as one of those interesting facts not worth knowing with which statisticians are continually regaling us; the second has some validity especially inasmuch as a great many major declines have, in fact, taken place in the early Fall months. However, the two most recent major declines, i. e., 1962 and 1966, occurred during the Spring and Summer, and there are plenty of cases on record where September and October have seen reasonably good markets. Nonetheless, Labor Day is as good a time as ion, it might be worthwhile to review and codify by this letter throughout most of 1967. This policy 0 fo k and, in this connect pol- expressed consistentl sum up in two statements. 1. Most common stock portfolios position. . al\llho remain in a fully invested eir- secuFitieSoloerter–ttii11i-'average qual ity, selling at historically to demonstrated earning power. The assumption be ind t can be outlined briefly as follows The first recommendation -s n ge, on the contention that the stock market is following the sam , that have been in effect for the past 25 years. Djlring this period there ha 'no ket decline greater than 29/0, in terms of the Dow, and each such declihe has e lowed — – in a few cases after a protracted period of sideways action — by a move ew highs. For those statistically inclined, this market environment can be defined by an uptrend channel increasing at a rate of just under 9/0 – – a channel which has held inviolate from 1942 to date. At present, the lower end of this channel is around 820, and the upper limit around 1300, thus putting the Dow, currently at 900, in the lower portion of the range. Now we are, we hope, as aware as anyone else of the dangers of extrapolating past ex- perience, and the tragic disillusion that characteristically follows belief in a new era. We are, -moreover, equally aware of the problems which beset the social and economic scene at the moment – – a frustrating war in Vietnam, racial unrest at home, cont inued loss of gold prospective budget deficits, etc. etc. we do not see conclusive evidence at the moment that these difficulties are of such a the history of the past 2 1/2 decades can be blithely disregarded. We are, therefore, inclined to maintain an aggreSSive attitude toward common stock investment. The reason for the second recommendation is based on the simple mathematics of rela tive value. For the most part, rapid-growth companies, which have been the market leaders since the Summer of 1965, have been rather fully exploited by the present market, whereas cyclical and slower growth companies despite what is, in many cases, a favorable outlook, have been largely ignored. To us, the earnings growth potential inherent in stocks in the for mer category is outweighed by the risks inherent in a possible downward evaluation of earn- ings multiples. On the other hand, stocks in the latter category appear to offer an enticing combination of defensive value plus capital gains potential in the event of multiples returning to their normal historic levels. Dow-Jones Ind. 901. 18 ANTHONY W. TABELL Dow-Jones Rails 262 37 WALSTON & CO. INC. . bThis market letter ia published for your convenience and lnforIDntlon Rnd Is not an oller formation emptoyeea waa mB.1 obtained from sources we believe to be rehable, but have an interest In or pUJlchase and sell the securities rweeferdroedntoot guarantee herein to sell or II. solicitation to buy Ita ueuracy, WaJlton ,& Co., any Inc. securities dlscUflsed. The and Ita officers, directors or WN.80.

W—a-l-sItnonc.&–C-o-. MUNICIPAL BONOS UNDERWRITERS MUTUAL FUNDS Mambe.. New York Stock Exchanca8 and Other Principa' Stock and Commodity Exchencae. TABELL'S MARKET LETTER OFFICES COA,ST TO COAST AND OVERSEAS September 8, 1967 In last week's letter we expressed two basic thoughts concerning the current stock market. The first thought was that, as far as could be foreseen, the immediate outlook for stock prices was positive. The second thought was that a dramatic shift in leadership was taking place with the mantle of performance passing from a great many of the growth and glamor favorites of the past two years to a variety of higher quality issues – – some in the moderate growth category, others in the defensive category, and still others in relatively cyclical areas. . This is a complete change from the market atmosphere which has prevailed for the past two years, and examination of our Recommended List tends to underscore this fact. The High-Quality-Long-Term Growth section has, since 1965, generally not performed as well as the rest of the list. We think the time may have come during which quality will re- assert itself, and are, therefore, adding the following issues to this section of our list AMERADA (80 1/4)11 leading domestic crude-oil producer, continues to increase its foreign interests, especially in North Africa, North Sea and Australia, where profit poten- tial is believed large. BORDEN (38 1/2) has been diversifying into chemicals, fertilizers and non-dairy food Iproducts where growth potential is impressive. Modernization and expansion programs will be completed this year, allowing for some efficient use of facilities. J') ' CATERPILLAR ( 47) is the largest maker of tractors and earth-moving equipment, and tHe recent downtrend in earnings is believed nearing an end. '\ \ DEL MONTE (34 3/4) , formerly California an outstanding recb'td in the hazardous canning industry, where it is the 1 factor. KELLOGG (38 5/8). Earnings are expected flecting expansion of cereal market at home and over ju rward this year, rewher controls 50 of the marke S\\. LORILLARD (51 1/2),despite of erger, continues acquisition- minded, which could augment e i ett es. \,,' RADIO CORP. (56 5/8),a leadi'r th- ectronics field; continues to benefit from number one To the Price Appreciatr inventory position has taken a healthy tu i of\;;'!ir Recommended List we are adding the follow- ing issues, all of whic interesting funda '1(1… AMERICAN 0)1 RI se e combination of attractive technical patterns and 3/4),one of the nation's largest bread bakers, expects b eJt.t..e\\ r earnings growth AMERICAN M 0 . t distribution facilities have been updated. & FDRY (22 7/8). This maker of a broad product line has specu- lative kickers in its water purification and desalinization plants, oil and gas equipment and electronics. ANACONDA (49 3/8) provides high yield, over 6, in addition to promising earnings growth through steady expansion in use of copper, of which it is world's largest producer. BULOVA ( 30). Its Accutron watch is paving the way to impressive earnings growth, with this year's jump in net income aided by increasing demand for entire line of consumer products. DINERS' CLUB(40 1I8).Earnings appear to be accelerating under impetus of rapidly expanding use of credit cards and disposal of costly factoring operation. '-\1)' MC NEIL CORP.(34 7/8). Its new automated warehousing equipment, water condition- ing pfoducts, and line of automotive items, provides diversification and impressive earnings poteun\tiaRl.EPUBLIC STEEL (49 3/4) now is one of industry's most profitable producers and recent price hikes should further improve earnJngs potential. \\ VORNADO (251/2). Merger with Food Giant Markets broadens VNO's selling base an puts it mto hlgh profit areas like hardware and liquor stores. 'L\ We are also adding the following 2 issues to the Speculative Price Appreciation sectio ALLIED SUPERMARKETS (20 ) . Its association with high profit-minded Kresge Co. has laid groundwork for good earnings improvement starting this fiscal year. Kresge continues to add ASU departments to growing chain of K-Marts. PENNSYLVANIA R. R. (67). The forthcoming merger with N. Y.Central is expected to enable earmngs to take dramatic leap forward, especially with high-speed commuter train being introduced on profitable New York to Washington, D. C. run. Dow-Jones Ind. 907.54 Dow-Jones Rails 260.88 ANTHONY W. TABELL WALSTON & CO. INC. TblA market letter 1a published for your conve-nlence and Infonnatlon Rnd III not an ofter to sell or a solicitation to buy any aeeurltln dl8llusaed. The In- A formation W88 obtained from 80urees we believe to be reliable. but we do not guarantee Ita o.ccuraey. Walston Co., Inc. and Its ofIlcera. dlreeton or have an Interest In or pUl'chaee and IJeII the securities referred to herein. WN101

Walston S-Co, …;..;..,;;.;.;;;.,;;.. 1n c, FILe MUNICIPAL BONOS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER September 15, 1967 With a rather astonishing burst of strength, the equity market came to life on Wednesday of last week with a jump of 12,02 points in the Dow-Jones Industrial Average. The strength carried through on Thursday morning and, although the advance was pared by profit-taking that afternoon, the Dow posted new highs for 1967 both on a closing and on an intra-day basis. The rebound was on considerable volume with 12,400,000 shares changing hands on Wednesday, and this figure was nearly equalled on Thursday. Friday's session was relatively lackluster throughout most of the day, but late strength brought a 4.04 point advance to an intra-day high of 938.51. The rise on Wednesday brought renewed repetition of what is probably the most '''''pointless of all stock marker questions, that is, Why Clid themarket which bounced about the financial community was that the reluctance of Congress to pass the tax increase stimulated the market upswing. This was, to say the least, an interesting thought. Earlier in the year, of course, we had be,en told that the market was going up due to the imminence of the tax increase and the consequent easing of pressure on the money market. In other words, if the pundits are to be believed, the market went up in August because we were going to get a tax increase and then went up again in September because we were not going to get'one. It is all, of course, simply one more example of the market's seizing upon an excuse to do what it was going to do any way. We have been in the long-term uptrend since last October, and there is, as yet, no evidence that this uptrend has peaked out. Indeed, the probabilities, as we have continually indicated, point to higher levels before it does, in fact, peak out. Under these circumstances, the fact that Bccasionally goes up 12 points – – – which, with the Dow over 900, is oC\ly a bit – s ould hardly be sur- prising or, for that matter, even particularly nt. As to the short-term outlook, there are bot dAis and us factors to be con- sidered. On the minus side is the disapPoinEreai a – on Thursday and Friday. Yince our daily breadth index is still shor! 0 0 . mi e new peak in the Dow, would hope to see better advance-decline 01'-' e rally tops' out. Also on the minus side is the rather desultory On the plus side ho e a as compared to the Industrials. of other factors. First of all, it is possible to read a sh t e LV 945 for the Dow. selling pressure continues to dry s ances and, most important, upside volume measure- ments would appear e room to expand before the rise is completed. Under these circumstances, our be s as to the immediate course of the market would be a few days of hesitation to st the rapidity of the rise, followed by renewed strength to around the 945 level. All of this would be within the cpntext of a longer range uptrend which obviously remains intact. Actually, if the recent market upswing has any particular significance, it is probably as a leading indicator of what the 1968 business picture will be like. As of the moment, there appears to be a standard forecast for the 1968 economy developing. This calls for gross national product and industrial production to rif!e moderately starting with the third quarter of 1967, but with sluggishness in corporate,pro,fits due to wage demands and possibly, with the tax increase, little or no increase in post-tax profits. If the market is telling us anything at all, it is indicating that this forecast may, indeed, be on the pessi- mistic side and that the profits for 1968 may actually be somewhat better than many analysts now foresee. '-.' – -',' — – In this sort of environment there would appear to be plenty of room for the sort of security this letter has been recommending, e. g., the moderate-growth or semi-cyclical type of issue still selling at a relatively low pIE ratio, to show better earnings and con- siderably better price action. Studies of recent short-term relative price action continue to indicate that it is, indeed, this sort of issue which is quite obviously outperforming the market at the present time. Meanwhile a great many of the glamour issues which were leaders of the earlier phase of the advance, shape up as being,. at best, dull and, at worst, potential disaster areas. There appears, however, no reason at this point to question the continued existence of an overall favorable investment climate. Dow-Jones Ind. 933,48 Dow-Jones Rails 261. 42 ANTHONY W. TABELL WALSTON & CO., INC. Thill market Jetter iI!I published for your convenience and Information And II not an offer to sell or a soUdtation to buy any securities discussed. The In- formation ftIlplOYe!8 mwaays obtained have an rom Inters eources t In or pwupeehbaealieevaendtoseblle n!liable. the seeur\tJes rweeferdroedntoot guarantee herein. 1t8 accuracy Walaton Co.. lne. and Its Omei!ra, directors or WN.aol