W—a-l-sltnonc.&– -C-o-. MUNICIPAL BONOS 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 September 22, RADIO CORPORATION OF AMERICA (581/2) FI U 1967 The inventory problem that plagued the color-TV manufacturers the first part of this year appears well On its way toward being solved, much to the relief of the industry which had witnessed a sharp drop in June quarter earnings. The anticipation now is for a slight im provement in the September quarter, and a good rebound in revenues and earnings during the final three months of the year. The stock market already seems to be taking advantage of this improvement and well-situated companies within the industry are under accumulation. Among these, 'Ridio Corporation of America, seems'tonave attractivepotential. . RCA is the nation I S largest maker of TV and radio receivers, records, hi-fi, and other consumer electronic equipment. It continues to'dominate the color-TV segment of the indus the area believed to offer the greatest earnings potential to set makers. Although competition rapidly is increasing in this area, RCA I S recent introduction of smaller models, including portables, should help sustain its lead in the immediate future . . The company's National Broadcasting Company division, the leading color telecaster, is benefiting from increased advertising charges and greater demand for color-TV spot adver- tiSing, which brings in higher revenues. Earnings this year, currently estimated at 2. 35 a share, the seventh consecutive year of increase – up from 2. 18 last year – also reflect in- creased government demand for electronic components. Additional earnings gains and an crease in the 80 annual dividend rate seem likely for the 1968 . Technically speaking, RCA's chart pattern shows tha ing into. ef.fct our ojectives at 76 and 98. .r tQlccurred at 56, bringi 1lPport in the 55-50 rea, hmitlng downside risk. The stock appears to mto strong hands in recent weeks. Recently added to the High Quality secof 0 ecommended List, RCA gain is s.uggested for purcha;Ea;rrent PORA-TrON-(4'83/ 4)- Recent price ction of this group. . Republic Steel, largest producer, appears to be most favorably situated among the major steel companies to benefit from the anticipated upturn in production, not only in the period directly ahead, but looking several years into the future as well. The large-scale capital improvement program that was completed in 1966 has enabled the company to substan tially enlarge its profit-making potential. The advanced techniques adopted have enabled Republic to reduce steelmaking costs to the pOint where today it is considered to be the most profitable of the Big Three. For the current 1967 year, earnings are estimated at 4.35 a share, down from 1966's 5.93 a share, in reflection of lower industry-wide production. With additional new equipment coming on stream next year, 1968 earnings should show substantial gains over 1967 results, suggesting the strong possibility of another increase. The current 2.50 dividend affords a yield of 5. 10/0. From the technical view, Republic has a price objective at 70, followed by one at 106. There is considerable downside support in the mid-40 region, limiting risk. Recently added to the Price Appreciation section of the Recommended List, Republic Steel again is recom- mended for purchase at current market levels. CENCO INSTRUMENTS (52 5/8), originally recommended January 29, 1965 at 29 3/4, has reached its technical upside objective, and we are herewith removing it from the Price Appreciation section of our Recommended List. Dow-Jones Ind. – 934. 35 c HARRY W. LAUBSCHER for ANTHONY W. TABELL Dow-Jones Rails – 262.37 WALSTON & CO. INC. AWT'HWL'amb Tble mBl'ket letter ill pubUBhed for your and information Rnd Is not an offer to sell or a solicitation to buy any securities dlUuued. The In. efmorjJmloaFtieoene mWaaJyI hoabvtaeJnI!e.nd inIrteormestaoiunrcoers pwUFe ehbaesleievaendtosebllethreelisaebcluer, ltu'lI rWefef'rdroedntoot hgeuraerma.ntee Its accuracy. Walston & Co Inc. and its officer&. direeton or

– – – – – – – – – – – – – – – – – – – — – – – – – – – – – – – – – Walston &Co. MUNICIPAL BON1lS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchan98s OFFICES COAST TO COAST ANO OVERSEAS TABELL'S MARKET LEtTER September 29, 1967 Last week's market was, in many ways, a frustrating affair. The popular Averages moved ahead to new highs on Monday, and on early trading Tuesday, before a rumor about a possible raise in margin requirements brought about a sharp decline, which continued throug out the week. The word frustrating is used advisedly since it was difficult to avoid the feeling that, somehow, the market was not acting precisely as it should. Actually, it was very difficult to demonstrate this statistically. The following table, an update of one that appeared earlier in this letter, shows the short-term swings within the 1967 advance. It shows that the August 29th-September-26th in duration and.ampl-itude.to the,other.rallies whic have characterized the bull market so far. Likewise, the decline that preceded it was almost identical with all of the short-term corrections which have taken place in 1967. A similar correction at this stage would call for a decline to around 905 some time during the second week in October. This, from an intra-day low of 919.85 on Friday, should not be a cause for tremendous concern. RALLIES Change DJlA From From Prevo No. of DJlA DECLINES No. Retrace- of Date High Low High Days Date Low Decline ment Jan. 4 776.16 Feb. 9 12.3 5.4 26 Feb.28 827. 95 5.0 45 11 Mar.27 6. 7 1.3 18 80 10 May 9 9.2 3. 7 22 103 18 Jun. 16 6.7 -2.5 9 54 11 Aug.10 Sept.26 10.9 7.2 4. 5 2.0 26 20 57 12 1\ to confirm new peaks in the there have been ca es in e celled out by a subseq t over, breadth characteristics on the August- September rally h . e with those of previous advances, indicating no se- rious decline in vigo t . erhaps, annoying to many investors is the fact that a great many stocks are, at th ent, well below previous 1967 highs made as long ago as March. It can be galling to wa the averages make new highs and, simultaneouiUy,find a great man issues in one's own portfolio selling well below earlier peaks. We would suspect that a great many people had this feeling last week. This, however, is nothing more than a reflection of the tendency we have remarked in this letter before – that is, the tendency for upswings to divide into non-selective and select ive phases.In an initial ncn-selective phase of an advance almost all stocks move ahead. The secondary, or selective phase, which can last for many years beyond the non-selective one, is a period in which fewer and fewer stocks participate. It seems highly probable that the non-selective phase for this upswing ended last Spring,and that it will be more rather than less difficult to achieve portfolio performance as time goes on. There is a paradox in all this, of course, since. during the early stage, when it is easiest to do well, one finds it most difficult to be aggressively committed to stocks. Thus, last January, when it was almost impossible to do any wrong as far as stock selection was con- cerned, uncertainty as to the economy, and a host of other factors, kept a great many investors out of the equity market. Conversely, at the moment with many forecasters assuring us of an economic recovery, it is harder and harder to find stocks that are going to go up. It should be re-emphaSized that selective upswings have, in the past, continued for pro- tracted periods, and our feeling at the moment is that the odds favor just such a continuation in this instance. We would expect, however, that the shift in leadership,and consequent diffi- culty of picking stocks, which has characterized the Summer of 1967, will continue to prevail the I,fmain,j,!,fr of AMERICAN CAN (55 1/2) on our Recommended List for some time, has reached a short-ter objective and is being removed. Long-term investors may continue to hold. Dow-Jones Ind. 926.66 Dow-Jones Rails 261. 83 ANTHONY W. TABELL WALSTON & CO. INC. G\ This itaeme m..rk ,ees et le mW8.1.1, tter IB llubll8hed for yo hoabvtaeinaend infrtoemrestlIOinurcoers ur convenience and Information Rnd III no pwurechbaeslieevaendtosebllethreelisaebcleu,rithieust rweeferdroedntoot t an oller hgeureair.anntee tiotasealcl courra a cy a . ohdtatlon Wa1Bton t & o Cbou.y any ,In.c &eetl a nd It! d 8CI1ssed Th I e&0fRcIera. dlr'eetoen on-r A WTamO . WHoSO!

Since ili the early 19305, the silort interest has played a definite role relative to overall stock m'l.rket performance. Almost without exception, whenever the sho rt interest ratio exceeded 1.5 to 2, the general !Il3.rket experienced a relatively harp advance in following months. Early in 1933, the ratio was junt above 2.0 and the market alMost doubled within the next year. In mid-1938, the ratio again rose above 2.0 which was followed by a market rise of around 50. T, he market bottomed out in 1942 around the same time that the short interest ratio moved above the 1.5 level and kept on going up for more than a year before flattening out. Duri ng 1947 and 1948 t;hen the ratio stayed 1.5 and 2.0, the market was undergoing a consolidation-ccumulation phase prepratory to the great bull mark8t that started in 1949. I'Then that 1949 market started off on its huge rise, the short interest ratio was at the highest point since 1931, betleen 2.0 and 2.5. Again, the September 1953 low point NKX coincided with the short interest rising to between 1.5 and 2.0. A buildup in the ratio from 1.5 to above 2.0 followed the 1957 market low by several months and preceeded the sharp rise of almost 150 points that took place in the next 12 montns. Conversely, whenever the short-interest ratio fell under 1.5 and continued the market UndeTI18nt a corrective phase lasting sever3.1 months. The short interest ratio bottomed out in Spring of 1966 and started to rise sharply as the market continued its decline. ..hen the market bottomed out in October 1966, the ratio las nearing its peak, .lhich Nas reached in November. Since then the ratio dropped rather sharply backto around 1.25 in Feb-11arch of this year, from point it has been rising slowly, along .ith the general rrarket. From the above it could be assumed that either the ratio has reached another peak and soon 'ill start declining as the market rebounds to the upside, or that the ratio will continue to decline to around the 2.0 level, p3.ralleling a further wrket decline, before both it and the averges bottom out. .\ Current short interst is 1.67, or 1. 7 and do.u from 1.9 last month, August IRS 1.h6

W—-a–l-s-tIonnc–&—-C–o-. MUNICIPAL BONDS UNDERWRITERS MUTUAL fUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges F/LE OFFICES COAST TO COAST AND OVERSEAS TABEll'S RECOMMENDED LIST October 4, 1967 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. QUALITY & LONG TERM GROWTH Close Qual- Upside Sup1Q/3/67 ity .. Qgj. post Alum.Co.Amer. 85 B 110-190 80-75 Amerada 83 7/8 A 110-136 80-76 Amer. T&T Borden Co 52 1/4 A 37 5/8 A 52-50 60-75 36-32 Caterpillar 46 3/4 A 68 46-42 Colgate Palm. 42 1/2 A- 52 38 Columbia B. S. 61 7/8 A 84 58 Cont'l Ins. 82 3/8 108 80 Cont'lOil 79 A 91-13070 Del Monte 35 1/2 A 60 34-30 Goodyear — Close 10/3/67 Q3ual- -UOpsbijd. e 48 1/2 A 82 Gulf Oil 71 7/8 A 78-92 Int'l Paper Kellogg 27 1/4 41 3/8 A- Ai- 63-82 Lorillard 50 3/8 A- 98 Nat'l CashR. 112 1/4 A 180 Parke Davis 31 1/2 Phillips Pete 61 A A 120 Radio Corp. 61 1/4 A- 76-98 Reynolds Tob. 39 1/2 A 74-124 Royal Dutch 445/8 A 86 PRICE APPRECIATION Adams Millis 85 B 75-65 Air Reduction 36 3/4 A- 55-70 35-32 Allegheny Lud. 73 1/2 A- 102 70-65 Amer. Bakeries 28 1/2 B 44-59 27-24 -Kmer;Ma-ch;-F- 22-3i4–BT- . Amer. Potash 45 3/8 B 48-60 40 Ampex Corp. 37 B- 55-74 34-30 Anaconda 49 1/2 B 72-83 46-42 Anchor Hock. 441/4 A 68-90 40 Bulova 32 B 60 26-22 Cincin. Mill. 60 5/8 B Commonw'th Oil 28 5/8 – 75 46 60 26-24 Comsat 56 104 55-50 Copperweld Steel 25 B 54 24-23 Diners Club 36 5/8 B 54 30 Dresser Ind. 37 B 57 35 Eagle Picher 41 3/8 B 60 35 Eaton Y & T 34 1/2 B 49 28-26 Ex-Cell-O 73 3/8 A 90 65-60 Gen'l Dynamics 62 1/2 92 56 Gillette Co 59 1/2 A- 80 56-54 Gt. North. -Paper-4t3/8 B' Xl90 .m 40-36 Kelsey- Hayes 441/4 B 54 40-36 Koppers Co 37 3/4 B 62 35 McNeil Corp 35 B 62 33-30 Mead John. 35 1/4 B 31-28 8——- -1-2- Olin Math. 78 1/2 B 130 70 Republic Steel 47 B 70-10646-42 Revlon 70 1/2 A- 100 65 Reynolds Met. 50 5/8 B 94 48-46 Riegel Paper 21 1/8 B 34 17 Robt.Controls 39 1/2 B 58 35-33 Schlumberger 73 A 74-110 70-65 Scovill Mfg. 41 B 88 38-34 Seaboard C.L. 64 B 84 62-57 Sharon Steel 35 1/4 B- 70 30 Shell Oil 70 A 120 66-60 Signode Corp. 41 3/8 A- 50 36 Tektronix,Inc. 543/4 66 46-44 Union Camp 36 1/2 B 92 36 United Fruit 52 B 70 50-45 Vornado 29 1/2 45 28-24 Wallace & T. 46 A- 63 15 SPECULATIVE PRICE APPRECIATION Allied Supermkis. 21 7/8 B Camp. Chib. 8 1/16 Chris-Craft 343/4 B Home Oil A 22 5/8 B Microwave 42 7/8 B National Can 35 5/8 B Pacific Pete 18 1/4 B 34 16 46-68 34 50-72 52 30 18-16 8-6 32 19-16 40-35 35-33 14 Penn R. R. 62 3/8 Syntex 85 1/8 Technicolor 243/4 UMC Ind 24 Varian Assoc. 36 3/4 Victoreen 16 1/8 Vulcan Mat. 21 1/4 B- 82-120 58-53 150 80-70 B 58 23-20 B 58 20-17 B 58-84 36-30 C 20-38 14-12 B 37 20-18 Anthony W. Tabell Walston & Co. Inc. ThiS Bulletin IS pubhshcd for you I convenH… 111'1(1 mrormnhon .tnd 15 not Itn offer to or a WJ\S obuuned from source.. we h, III VL' to I P'I Ible. but we 110 not gU.-\fant..,l Its Rt'('UI ,H'Y have Rn mterest In or IlurdlllSC Hnd bell the bt'curlties rdcned to herem to buy Rny sccuntu!s du;cussed The InformatIOn & Co. Inr. lind Its offirers. rhrcclorH or employees may WH-916

– – – —— —— W—a-lsItnocn.&–C-o-. MUNICIPAL BONOS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Ex.heng OFFICES COAST TO COAST AND OVERSEAS TADELL'S MARKET LETTER October 6, 1967 Last week's market action did nothing to disturb either the favorable long-term outlook or the somewhat inconclusive near-term outlook for stock prices. To take the shorter term picture first, the market strength which characterized the lat- ter period of the week interrupted the previous week's decline and most of our shorter term indicators which had begun the week in neutral territory, remained there rather than moving closer to the sort of oversold position from which a short-term rally could be predicted. The immediate outlooR, therefore, remains uncertain, and will remain so until a worthwhile cor- rection or consolidation, – which could lay the ground work for a new short-term advance – takes place. – – – – — — -. – Meanwhile, inspection of individual chart patterns continues to reveal a preponderance of stocks which appear favorably situated on an intermediate and long-term basis. In such an environment, selection of individual issues will be more important than ahort-term market fluctuations. One issue W Q believe suitable for purchase in medium risk accounts is reviewed below. VORNADO, INC. Current Price Current Dividend Current Yield 29 Stock Go West, young man, was the advice of the mid 19th Century. As many individuals found out, along with corporate interests, it was very good advice. Long-Term Debt Common Stock Sales-1967-E Sales-1966 75,281,484 5,560, 000 shs. 700,000,000 666 000 000 Today, that advice still is being followed and Vorna- do is one of the merger with Foo ia adherents through its rats, an important op- erator of s e et 1 Diego, Cal -a, e os Angeles and San Earn. Per Sh. 1967-E Earn. Per Sh. 1966 2. 50 2.14 – to er the important Southern Cal – mar ng area is expected to provide a Mkt. Range 1967'-66-35-3-t-4'-18 1/2 in Note All figures adjusted pro r For th.e flscal year endmg . illion level while earnings could approximate 2,5 a share, or more, y a share. The per share estimate for the current year allows for dilution r g r e Food Giant merger, terms of which allowed for. 6 shar Vornado being exchan d f ach Food Giant share. The exchange has added 1. 92 million shares to the 3.65 m – – NO shares already outstanding. Vornado, which pays no cash divi dent, has announced that the policy of paying stock dividends will be continued. Vornado operates 33 large discount department stores located in New Jersey and five neighboring States. Food Giant operates 70 supermarkets, 14 discount centers and 14 medium sized hardware dO-it-yourself goods stores in addition to a small liquor retailing chain. Management, which has operated successfully in the past by following a policy of acquisition and diversification, is expected to remain aggressively oriented along these same lines in future. In order to perk up unsatisfactory profit margins in the Food Giant operation, market- ing executives from Vornado already have been moved to the West Coast. Their primary aim will be to increase non-food sales, particularly in the soft goods and hard lines areas. This suggests that the food retailing area, which normally carries a very low margin of profit, may be downgraded somewhat throughout the Unimart discount division of Food Giant. Still to be determined is just what view the Federal Trade Commission and/or the U.S. Justice Department will take of the merger which is subject to review. In addition, the conversion of outstanding debentures into common stock would result in a dilution factor approxi mating 14. Despite these factor;, the growth potential inherent in the discounting and food retailing businesses are such to warrant serious consideration by the long-term investor seeking capital appreciation. From the technical view, Vornado recently has broken out of a substantial base forma- tion indicating higher levels. Strong support is evident in the 28-24 range, and our initial pric objective is 45, followed by a higher longer-term objective. Recently added to the Price Ap- preciation section of our Recommended List at 25 1/2, these shares again are recommended for purchase at present levels. Dow-Jones Ind. 928.74 Dow-Jones Rails 258.74 HARRY W. LAUaSCHER for ANTHONY W. TABELL WALSTON & CO. INC. Thrll market Jetter f8 publl8hed for your convenience and fnfotmatlon Rnd Is not an oft'er to sell or a solicitation to buy any aeeuritiel dlseuastd The In A . WLambfIIO!IlD'lDPiaotyleoens mwaays hoabvteainaend IfnrtoemrNtl!Oinuroeers pwurechbaeslieevaendtoseblle threeHsaebcleu,ritbieust rweeferdroedntoot hpeareriann. tee Ita aeeuraey, Walaton &; Co.. Inc. and ita ofBeen. dlr'ed.on 0; WNIOI

Walston &- Co. —.;….Inc.—- MUNICIPAL BON1IS 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 October 13, 1967 Not unexpectedly, the market moved lower through most of last week, with the Dow- Jones Industrials rea,ching an intra-day low of 909.79 on Thursday. The low was reached on sharply reduced trading volume of 7,770,000 shares, brought about, largely, by the Columbus Day demi-holiday and, perhaps, by preoccupation with the events in Bcston. Friday's trading saw a mild sort of a rally with the Dow moving ahead some five points. At Thursday's intra-day bottom, the Dow had just about reached the most conserva possible downside objective based on the September-October distributional top. The decline to Thursday's low also brought the correction into line with most of the previous dips of 1 -As of Thursday, the Dow had declined'4. 4;-'and retraced- move from the- August low to the September high. This retracement required some thirteen trading days to complete, and thus was in all respects to previous corrections, except for the more serious Israeli-crisis drop in May-June. That decline took eighteen days to complete and constituted a drop of 8. 6. It also erased the entire previous advance, plus a bit more. In this connection, it is interesting to note that the most pessimistic possible downside objective which can be noted for the Dow is around the 875-870 area. Were such a further decline to take place, the total percentage drop would be about the same as the decline last May, and it would also wipe out the entire advance from the August 28th low of 887.73. It is, frankly, difficult to envision too much worse than this at the moment, and there is at least some precedent for the market's basing out and continuing its upswing from around the present level. Much has been made of the desultory action of the vance, together with the fact that the carrier index declin be ,quring the recent ad- A gust low last week. This would indeed be serious were it possible to sei;i.e i sater distributional top than now exists. The worst downside objective that n reaa the Dow Rails at the mo- ment is around 248 vs. an intra-day low hile we would certainly not expect any broad move in the Rails from the Is, eat many individual carru,rS,aJLOllll with the averages; group, at least,appears a The inferior action of th . eQ;JJ.;e W ive' 1). rid thus,-someconsoHdation in the .. e been widely noted. However, here again, both the or's utility indices appear to be reaching downside objectives at curr 1 e time to form a base will certainly be required, most stocks appear attrac . pri aespite the severe competition being felt from high-vlJ.u new issues of corporat b . Before leaving ubject of Averages, mention should be made of the broad-based dices such as the New York Stock Exchange Index and the Standard & Poor's 500-Stock site. Both of these indices continue to out-perform the more widely-discussed Dow and had; as of last wee!, formed only minor tops, the objectives of which they were approaching at the week's low. It is pOSSible, therefore, especially after last week's correction, to view the general market outlook with some equanimity. The same is not true of all individual stocks. The lesson has been driven home over the past few months that the stock market is not a On-' street, or a means for the manufacture of instant profits without dint of effort or ln1e.lllgen,cell The number of stocks that are below their highs of three to six months ago — some of them a good deal below — is legion, and it is quite possible that, in a number of cases, lower prices will be seen before the old highs are again -attained. It is-cbB.racteriStic of any up- swing that a large number of issues reach their peaks rather early in the game, and it is certainly probable that a substantial minority of individual issues have already seen their highs for some time. Indeed, even in most carefully selected portfolios, problem stocks are beginning to appear with increasing frequency. All this, as we have pointed out in previous letters, is normal, and it is incumbent on the investor to make the changes in his portfolio necessary to take advantage of shifting rna.r.. ket leadership. Meanwhile, we are inclined to view the general outlook for equities as re- maining reasonably favorable. The bull market may be entering a fairly robust middle age, but we doubt if it is approaching senility. Dow-Jones Ind. – 908.58 Dow-Jones Rails – 251. 55 AWTamb ANTHONY W. TABELL WALSTON & CO. INC. le mwauv thtoeabrvtea1i8naenpduIbnfUrtoeehmreed.tlIfOionurroeyreeopWwW' e!c'cobhnaev8lieeenvaienendtcoseeballentdhreeilni8afeobCrleUm. ralbttiuieostnrweAfeenrddroeIdsntnooot tbpeaarnerlanon.f.tte.ere to eell or a eolldtation to buy Its Mcurac)'. Walston & Co An)' Inc. .eeurltiee dlllCUDl!d. The and ita oiBei!ra. dlreeton In. or WN.101

————————————————————, Walston &Co. – Inc. —….;.- MUNICIPAL BONDS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchonge and Other Principal Stock and Commodity Exchanges TABELL'S MARKET LETTER OFFICES COAST TO COAST AND OVERSEAS October 20, 1967 Equity markets, for the most part, continued reactionary during the past week. The week commenced with an almost-10-point slide on the Dow-Jones Industrial Average, which was followed by further weakness on Tuesday and Wednesday. The publication of the short interest sparked a strong upswing on Thursday mo'ning, but gains were almost entirely wiped out by the close,and most stocks actually declined on the day. Following this disappoin ing performance, the slide continued on Friday. The week's intra-day low was 891. 35. The continuation of the drop through Friday's trading made the current downswing the longest in point of time in 1967, and the most severe in percentage drop, with the exceptionof the steeper decline around the time of theIsraeli crisis-inlVIayi\ii1eThe market climate quite obviously, has changed somewhat from tl).at which prevailed during the Spring and Summer, and it is worthwhile attempting to pinpoint a few reasons for the rather desultory actio of a great many stocks during the past month. Probably the most direct effect on stock prices during October has been due to the publication of third quarter earnings which have been – – at least in a great many cases, some what lower than the market had evidently been anticipating. This is, upon reflection, not surprising. Stock prices in their rise during the first three quarters of 1967 had obviously been anticipating a business upturn of some magnitude. No such upturn has yet been reflecte in third quarter results, although there is universal belief that the fourth quarter will show some improvement. It is quite obvious from here on out that the market is going to wait for actual improvement rather than projections. It seems to us, however, that a more basic reason r t malaise can be found in the continued political jockying between the a t 0 s an legislative branch in regard to the tax increase, coupled with the stron ab It t no tax bill will, indeed, be enac1ted. We have pointed out repeatedly pond favorably to the proposed enactment of ear fa t the market tended to res- ncr and the resultant removal of pressure on the The most dynamic part of the 1967 in January, immediatEily after the Presi- dent first ta inc when he recommende t ext most dynamic rise occurred in August t to law. The possibility of no tax bill, and a con- sequent deficit of s introduces uncertainties not heretofore present. The political inat on Capitol Hill have dropped the ball squarely in the lap of the Federal Reserve. attempt to tighten credit and force the deficit to be funded out- side the banking syst ould bring about consequences unpleasant, to say the least. It is thus possible that the only viable alternative is to provide banks with the necessary credit to take on the growth in debt. In,economic terms, this is known as debt monetization, and it is a sophisticated method of printing 'money -. in a word, inflation. This, also, creates a number of uncertainties. One of the reasons for using the technical approach is to attempt to make some sense out of an uncertain climate such as the present. We mentioned in last week's letter the possibility of a 870-865 downside target on the Dow-Jones Industrials, and the probability of a continued drop to this level now becomes fairly gOOd. The likelihood is further increase by the proposed changes in margin requirements' requested by the Federal Reserve Board after the close on Friday. On the otherhand, thecRail Average reached its downside target at this week's intra-day low and may well prove somewhat more resistant to decline than has been the case in the past. Meanwhile, we would expect a goodly number of stocks to remain relatively resistant to the decline, with some even advanCing in the face of a poor general market climate. All of this does not change the long-term picture which, to our mind, remains generally favorable for common stocks. It is possible, of course, that out of the present weakness some signs of longer term deterioration will develop. At the moment, at least, we see little cause for undue concern and believe short-to-intermediate-term weakness should be utilized for purchases in selected issues. Dow-Jones Ind. 896. 73 Dow-Jones Rails 247.50 ANTHONY W. TABELL WALSTON & CO. INC.

&-Walston lnc. Co. MUNICIPAL BONDS 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 October 27, 1967 The reactionary trend in the market continued throughout last week, interspersed with a rally on Thursday, and contrapuntal strength in a large number of issues, notably glamor stocks, throughout the week. Presently, positive and negative forces appear to be about in balance. On the positive side, all of our shorter term oscillators reached oversold territory and rebounded sharply toward the end of the' week. This action is normally considered evi- dence of a short-term trend reversal. On the other hand, the probable downside target for th Dow Industrials remains modestly below current levels at 870-865. Moreover, the quality of the present leadership, to put it mildly, leaves something to be desired, as witness the Satur nalia currently taking the AmericanSto-ckExchange. — – – — On balance, however, we continue to feel that purchases of issues representing good fundamental and technical values at prevailing prices should work out well. One such issue is reviewed below. DENTISTS' SUPPLY COMPANY OF NEW YORK Current Price Current Dividend Current Yield Long-Term Debt Common Stock 43 1. 45 3. 4lo 485,118, 1,917,506 shs. Despite the gains that have been made among younger people in dental health, a relatively large portion of the public continues to be in need of ex- tensive dental treatment. The need for additional dentists throughout the country certainly substan- Sales-1967-E Sales-1966 60, 000, 000 54,210,000 teinadteisn tshiigsh, tantod th h r . woultdhiaspbpoedaer stowbeell nfoor those len ering to the needs of Earn. Per Sh. 1967-E 2.55 dentists t y serve. Earn. Per Sh. 1966 2.32 With pIe now able to afford the Mkt. Range 1967-66 43 3/4-24 —- — , dental insurance programs, the del s, or artificial teeth, due to -incomes-and-various types of heilth has soared in recent years. Dentists' Supply Company of New York g of artificial teeth and as such is ex pected to t b e i 20 ' The company' s . e icmry of the trend toward increased consumption. Gucer of high-speed dental drills, waxes, porcelain and other dental sup k urrler the name Trubyte, artificial teeth account for approxima tely 27lo of I . The production of ethical dental supplies and the resale of supplies and equipment uced by others account for about 65lo. The remainder derives from various types of ental equipment, among which is the Cavitron Ultrasonic Dental Unit, a device for cleaning tooth surfaces ultrasonically and for the filling of cavities. Earnings, which have been in an uninterrupted uptrend since 1961, are expected to reach a new peak around 2. 55 a share this year, compared with 2. 32 for 1966, on sales cur rently prOjected to 60 million, vs. 54 million last year. Although foreign sales are not likely to show much improvement over those of 1966, margins could benefit from the pros- pective increase in overall volume and greater operating efficienCies, especially in the areas of accounting and inventory control. The usual year-end extra dividend has been set at a share, bringing the full-1967 total payout to 1.45 a share. Under the anti-trust suit brought against the company, divestiture probably will have to be made of two divisions' accounting for approxlInately-27' million insales. However;'purchas of these companies was made primarily for their manufacturing facilities, which will be still owned and operated after settlement of the case. The retail operations to be sold .actually were providing an unfavorable profit margin, and management feels that the funds derived from thelorced sale can be better and more profitably employed elsewhere. From the technical view, the substantial base that has been building for several years indicates a price objective of 61. There is support at 39-36. Being added to our Recommende List, these shares are recommended for purchase at current levels. , Dow-Jones Ind. 888.18 Dow-Jones Rails 243. 07 HARRY W. LAUBSCHER for ANTHONY W. TABELL WALSTON & CO. INC. AWT HWLamb Tbta market Jetter fa published for your convenience and information fLnd Is not an offer to sell or a aoIlelta.tlon to buy any aeeurltiee dlaeusaed The In formatlon mWAuA obtained from IIOUl'Ceft we believe to be reliable. but have an Intere.t In or pupehase and Bell the Reuntles rweeferdroedntoot hgeUret\irna.ntee Its accuracy. Wa1ston & Co Inc. and its oftlcers. dir'ecton . 0; .r

Walston &Co. Inc. ;….;;…….;;– MUNICIPAL BONDS UNDERWRITERS MUTUAL FUNDS Members New York Stock Exchenge and Other Principal Stock and Commodity Exchangel OFFICES COA,ST TO COAST A.ND OVElSfAS TABELL'S MARKET LETTER November 3, 1967 The stock market gave little evidence last week of wanting to halt its recent price erosion. A drop of over twenty points in the Dow-Jones Industrials during the first three days of the week was temporarily reversed by a 6-point advance in Thursday morning tradin This entire advance was cancelled out in the afternoon,however, to be followed on Friday by a further decline to an intra-day bottom of 853.10 in rather dull trading. Before examining the possibilities for future price action, it is worthwhile reviewin just what has happened so far. The current decline is, quite obviously, the most serious so far in 1967. To date, the Dow has lost almost 100 pOints from its intra-day peak of 951. 57 on September 26th.- Thisis-aaeclineofTO3- Bycontfast;-previousshoitterm declines during the past year have averaged 5, and even the Israeli-crisis decline of May-June cor- rected only 8. 6. The Industrial I ndex has been joined in its downtrend by the Rails, which are off even more sharply, and the Utilities, which are off modestly and appear to Ja ve stabilized somewhat during the past week. Looked at in another way, the present dip is the first one in 1967 that has extended considerably below the low of the previous advance. The last upswing began on August 28th at 887.73, and current prices mark the Dow 30 points below that figure. Indeed, the entire advance from the July 3rd low of 853.21 has now been erased, and something more than one- third of the upswing from the October 1966 low of around 740 has now been cancelled out. Obviously, however, the past is only of interest to the extent tJa t it changes the out- look for the future. In order to get the clearest picture of the future outlook, it is best to examine it from a short-term, intermediate-term and view. The short-term picture, it would seem to of our shorter term indicators are now in deeply app t s . or na y clear-cut. Most the Dow has reached, indeed slightly over-reached, most of its downSide in 0-865 area. Taking the since-broadened pattern, 850-840 is a icult to see much lower prices than this for time being.. may have been seen, or should be se 1 s w..,tmJ. . e.picture.is one.of a bottom that We doubt, also, whe r I – lJ'i.cture is much changed. It calls for, we subscribed to the prop i 0 doom which have emerged from various sources, and we do not thinK 'd te warrants changing our longer term optimism. What the present decline bet c 0 question is the course of prices on their way to new high territory — in other wor he intermediate-term outlook. It is this picture, the one for the next few months, is now least clear. It is possible to view the advance from October 1966 through September 1967 in two ways. The most obvious is as part of a normal upswing that will carry to substantially higher levels without major interruption of any sort. We have inclined toward this view in this letter and we must confess we are not as yet ready to abandon it. The alternative possibility, is, of course, that 1967, and possibly a portion of 1968, might be viewed as part of a protracted trading range out of which the market will ultimately mOve on the upside and advance to higher prices. If this is the case, then the last year has constituted an upward move within that range, while the present decline might well be part of a general downswing — also with- in such a trading area. Whether this trading-range thesis becomes more or less probable Will depend in great degree on subsequent market action rather than past action. The October decline has caused some rather serious technical damage in terms of breadth, volume, etc. None of this damage is so serious, however, that it cannot, between now and early 1968, be repaired. Still it must be repaired in fairly short order if a continued upswing is to be predicted. The burde of proof, in other words, has now shifted to the bulls. In any case, investment policy seems clear. A great many issues, are, at the moment, approaching downside targets and even were the intermediate-term to produce a sideways to downward market, it appears likely that they offer minimum risk at these levels. On the othe hand, if,later in the year, the uptrend resume s its course, the potential for profit could be impressive. Dow-Jones Ind. 856. 62 Dow-Jones Rails 229.74 ANTHONY W. TABELL WALSTON & CO. INC. AWTamb Thla market letter I. published f'Or your convenience and Information And Is not an offer to sell or a solicitation to buy any aeeurltlee dlacllllled. The In- formadon employen wu may obtained from BOurCeII we believe to be reliable. but have an Interdt in or pUl'chaae and sell the 8eeuriti.!'s rweeferdroedptoot guarantee herein. Its accuracy. Walston & Co., Ine. and Its ofBcer.l!l. dlrecton or WNlOl

W—-a–l-s-tlnocn—&—C–o–. MUNICIPAL BONOS UNDERWRITERS MUTUAL fUNDS Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges FiLE TABELL'S MARKET LETTER OFFICES COAST TO COAST AND OVERSEAS November 10, 1967 The basic market opinion expressed in last week's letter remains unchanged by the wild gyrations of the past four trading days in which the Dow twice traversed a 25-point trading range. At the low of last week, the Index had reached the 850-840 downside target suggested in last week's letter, and it appears possible that a base will form around current levels. Under these circumstances, with the market down as sharply as it has been since September, prudent investment policy would dictate accumulation on weakness of undervalued groups. One such group might well be the international oils. Not only do current prices heavily discount many of the uncertainties.connected.with.doing.business .in,the .Eastern – Hemisphere, but the consumption of petroleum and associated products within this area is rising rapidly. The importance of the Suez Canal is being lessened by the rush of leading co panies to build supertankers that will bypass the canal and at the same time be cheaper to operate. The three companies discussed below are on our Recommended List. GULF OIL (73) is one of the world's largest petroleum prOducers with operations far flung. In recent years, U. S. -based operations have been contributing the lion's share of net income. However, the company has an ambitious expansion program underway in foreign areas not only to increase production but also to broaden existing markets and develop new ones. To date, this program has proven highly successful, with the effect on earnings notice able. Compared with 4.87 a share reported for 1966, earnings this year are being estimated to rise sharply to around the 5. 50 level on revenues approxima ting 4 billion. As marketing and refining capacities increase more in line with steadily is a more completely integrated organization. As a reflect projecting 1968 earnings to near the 6 a share 0 su llfOduction, the result 1 ustry analysts are s that the current 65 quarterly dividend rate might be the minimum dun e next six months. From the technical view, Gulf Oil an . purchase for a price object- ive at 78, by a high,er()pe 'go .. on the at 65-62. ROYAL DUTCH PETROLEUM Q gh its 600/0 interest in the Royal Dutch- Shell Group of companies, is n oil enterprise. The strong position that it r as hei-e the consumption of oil is in a sharp uptrend, and the highly succ s ex , on development program it has underwal' suggests that it affords the inves t ct' pportunity for capital appreciation over the longer-term It would appear that a bi 'on of lower operating costs, higher product prices and en- larged markets finally turned earnings around. For the current year, net income is esti mated at between 4. t and 4.50 a share, vs. 4.09 last year, suggesting that a modest in- crease in dividend payments is possible. The current indicated rate is 1. 89 a share. Furthe earnings improvement to around the 4.85 a share level is anticipated for 1968. Technically, Royal Dutch has moved out of a year-long base that has built a firm area of support at 38-35. Our price objective remains at 86. CONTINENTAL OIL (76 7/8) is a relatively newcomer to the international field, larlo) gely accomplished through its holdings in the prolific North African oil fields, now accounting for more than 500/0 of total crude production. This has enabled the company to expand its Euro pean refined products marketing where the potential for growth seems considerable. In addi tion, CLL has become a well rounded energy company through the acquisition of Consoli- dation Coal, one of the industry'S largest producers. Moreover, it owns 33 30/0 of CER Geo- nuclear Corporation, formed to develop nuclear explosives for commercial application; the first of which is Operation Gasbuggy, to determine if natural gas flows can be increased through nuclear explosions. Earnings this year are expected to reach the 5.35 a share area up from 5.08 last year, and could approximate 5.70 in 1968. Chartwise, Continental has built a firm area of support at 70, slightly under current price levels. The considerable base that has been built indicates a price objective at 91, followed by a possibly higher goal around 130. Dow-Jones Ind. 862.81 Dow-Jones Rails 231. 70 HARRY W. LAUBSCHER for ANTHONY W. TABELL WALSTON & CO. INC. AWTHWLamb This market letter Is published for your convenience and information Il.nd is not an offer to sell or a aoIleito.tlon to buy any securities dll!lcussed Tb 'eetofeomrpmloaytieoens mwaays hoabvtaeinaeDd inftreormestsoiunrcoers pwUel'chbaeslieevaendtosebllethreehsaebeleu.rlUbuest rweeferdroedntoot hgeuraerina.ntee Its t.ecuraey. Walston & Co.,In.e and Its officera, dir rea IDor- WN801