– Walston &Co, —–Inc —– M.mb…. N.w York Stock Exchang. and Other Principal Stock and Commodity Exchang OVER 100 OFfICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER March 8, 1968 In like a bear and out like a bull could be the action for March 1968. Many of our downside price objectives were reached during the recent selling waves and technical indi- cators have signaled a deeply oversold condition. With the odds now favoring an intermediate recovery, there is a short-term bottom that could support a rally into the overhanging suppl zone around 850-880 Dow-Jones Industrials. ELECTRONIC SPECIALTY COMPANY Current Price Current Dfvidend Current Yield 27 -nil nil – .. Long-Term Debt Conv. Pfd. Stock Common Stock 20,900,000 15,860 shs. 1,780,524 shs. Sales-1968-E Sales-1967-E 125,000,000 115,000,000 Earn. Per Sh. 1968-E 1. 80 Earn. Per Sh.1967-E 1. 50 Mkt.Range 1968-67 333/4 -191/8 Combme imagination and aggressive man- a g e m e r t .. pfl.rticipationin the fastest growing areas of technology and you come up with Electronic Specialty Company. A far cry from the old Iron Fireman Company that formed much of the basis of the current corporation, ELS today represents an mtri- guing vehicle for investor representation m electronics, environmental control or space conditioning, structural and mechanical sys- tems and components, and power generation and conversion. One of the earlier conglomerates, in act- ion if not in grown almost entirely through acquisition. Since 1955, the five companies added to the ELS family. As a in 1955 to an estimated 115 million in 1967. During Specialty has h 0 less than.twenty- ose m around 2 million t' period, earnings rose from a deficit to a peak level of 1. 91 a now a thing of the past, earnings 96 it costly reorganization program .m e future are bright and results a-snare froln the-1. 50 esti- The company's encou . are enhanced by a number of developments. These include the d ; i0v er ew products and processes applicable to the aero- space and aircraft . e ese is a super-strength aluminum alloy for use in casting aluminum. . n m a lays an important role in ELS' s future. Company has an- nounced plans to build fa' y capable of producing 1,000, 000 pounds of titanium castings annually. Titanium is ected to prove a vital part of the U. S. supersonic transport progra Although defense sales continue to increase, commercial and industrial revenues are expanding at a more rapid rate and already constitute almost 600/0 of total sales. Sales break down along the following lines' electronic components, 400/0; space conditioning, 270/0; structural and mechanical components, 250/0; power facilities, 80/0. In view of the impressive prospects inherent in the construction industry, ELS's Space Conditioning division is expected to be a big contributor to income in the foreseeable future. This division produces central heating and air conditioning units and related items. Residential and commercial sales are about equal and new construction accounts for a major portion of business. As a result of its breakthroughs in the field of solid state controls, ELS has been able to design heating and cooling equipment controls to replace bulky mechanical controls, yielding striking advantages in safety, dependability, maintenance, -installation and costs. Other areas of research and development activity include plastics technology, air pollution and smog control, miniature heating systems, forging processes to eliminate stress concentration and stress corrosion problems, labor-saving devices and materials technology. included in the long-term debt are debentures convertible into common stock at 32.50 a share. Conversion of all debentures and preferred stock would result in a dilution factor approximating 270/0. Management holds 110/0 of outstanding common. From the technical view, there is a base in the area providing considerable support and enabling the projection of a price goal in the 37-39 range, followed by a higher one at 72. Recently added to the Speculative Price AppreCiation section of our Recommended List, these shares again are recommended for purchase at prevailing market levels. Dow-Jones Ind. 835.24 Dow-Jones Rails 215 14 HARRY W. LAUBSCHER for ANTHONY W. TABELL WALSTON & CO. INC. Thla market letter 18 published for your convemence and Informat1On nnd IS not an olTel to sell or a soliCitation to buy any securities diSCUSsed Th In;formation was. obtained from sources we believe to be reliable. but we do not g\ll\rantee its accuracy, Walston & Co-. Inc. and Ill! officers dlrecto have an Interest In or pUFchase and sell the seeurttu's referred to heLem. 80 AWTtiwLamb WNSOI

Walston &Co. lnc, Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER March 15, 1968 For the first hour and a half of its operation on Friday morning, the Dow-Jones News Ticker concerned itself, almost exclusively, with one subject — the foreign exchange crisis, which was treated in nineteen separate stories. The only story on the tape that interrupted this constant outpour was a four-line item which announced that the U. S. personal income rose in February to 658.4 billion; which just happened to be the largest mo n thly increase in over two years. We think this neatly illustrates the present dilemma cl the stock market. The two basic central facts concerning stocks and the economy in March 1968, are (1) that the U. S. economy is prosperous' and improving, and (2) that stocks, by and large;-are not,by any measure, exploited. Yet, ever since the first of the year the equity market has been moving lower — dramatically so in the case of some stocks, grudgingly in the case of others, but in any case, lower still. Now no investor needs this letter to tell him the twin reasons for the decline. They are, of course, the war in Vietnam, and the foreign exchange crisis. Under the stimulus of the latter, the Dow-Jones Industrial Average took its sharpest dive so far this year on Thursday, dropping some eleven pOints to a new intra-day low for the move of 824. 26, and a partial recovery on Friday was stemmed by late profit taking, although the Index still closed with a plus sign. All this is not meant to say that either Vietnam or the gold crisis is ephemeral. The are, unfortunately, all too real. The number of Americans killed in Southeast Asia has now passed the 20,000 mark and the deep-seated malaise and evidenced by Senator McCarthy's showing in New Ha;m'shi fott by the nation is re, the foreign ex- change situation, however imperfectly it may be quieting to those who hope for freer international co he iC, is obviously disce stable foreign trade en- vironment. However, we think it well to neve!' discounting the same thing twic t' ctu e old adage about the market's e -r market response is ultimately necessary to the twin it is highly likely to be completed quickly and to have term' ated e e of the problems is solved. Crises have created down markets t — the tight money crisis of 1966, and the Cuban missile crisis of . It should be noted that both of these were major buy- ing opportunities. Presently, a 10 k tock market history affords a few interesting facts. In the post war period, major be arkets have had a time span of between four and nine months from high to low. It is, in this connection, worth noting that the present downswing will be just six months old this week. It is also worthy of note that in past Presidential election years, when a change in Administration ultimately took place in November, that the market has tended to decline in the beginning of the year, and rally rather strongly in the Spring and Summer, with the bottom usually taking place some time between March and May. This ob- viously conforms with the 1968 pattern thus far. All these factors seem to point to the oc- currence of a rather important market bottom which, if it has not occurred already, could 'occur within a fairly short period of time. The level at which such a bottom might occur, however, is another story and one where the indications are somewhat less clear. If the 1968 decline is to develop into a full- fledged bear market, the conclusion will obviously be a typical high-volume selling climax. Such a climax, based on current volume levels, would undoubtedly produce a new record in stock exchange turnover — perhaps in excess of 20,000,000 shares. It would certainly, tem- porarily at least, drive the averages considerably lower than they are today;and it must be admitted that the present crisis atmosphere is ripe for such a development. On the other han a low volume bottom occurring around pre sent levels would not be an unheard-of phenomenon and, indeed, the potential base already built up around the 820-845 level in the Dow, is im- pressive. . What we are saying here is that from an investmeItt point of view, we would be willing to commit reserves either immediately on weakness, or if current prices hold, over time. Whichever type of bottom takes place, we believe that the ultimate result will be an upside move of worthwhile proportions. Dow-Jones Ind. 837. 55 ANTHONY W. TABELL Dow-Jones Rails 217. 95 WALSTON & CO. INC. ThIll market letter \1'1 Jlublished for your convenience Bnd InformatIOn Rnd Is not an offer to sell or a soliCitation to buy an) secuntles ,Jiacussed The information W8.!I obtained.trom. sources We believe to be reliable. but we do not guarantee Its J.ccurac). Walston &. Co. Inc. and its officers. directors or employee! may have an IDterest in or pUl'chase and sell the securities referred to herein. WNBOl

Walston &Co. – lnc – – – – Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER March 22, 1968 Last week's market traversed old ground. Monday's rally, in response to the two- tier gold system, brought the Dow to al). intra-day high of 854.25, just about as high as it had been since early February. Unfortunately, the rally lasted only one and one-half hours, and most of the rest of the week was spent drifting lower. Although peace news late Friday cause a small gain, by the end of the week the Dow had retraced all the advance from the March 14th gold-crisis low. From a technical point of view it must be admitted that all these fluctuations have some significance. For 28 trading days, ever since February 12th, the market has held in a range bounded roughly by 820 trading ranges exist in all the other popular indices. 'As long'as this sort of thing goes on, the more significant these trading ranges become and if they do, indeed, represent accumulation, the results could be moderately spectacular. The Dow, for example, now has a potential upside objective of somewhere between 870 and 880, and similar objectives exist in other indices. Still, this trading range can be viewed only as a potential base formation. So far, as any observer can easily see, the rallies have been unimpressive,and some major change in the investment climate will probably be necessary to get the market off of dead center. In a period where political, monetary and economic surprises are occurring almost daily, it would not be too hard for such a change to occur. What we are again raising here, of course, is the unanswered question as to whethe the present downswing will bottom out with the classic climax-selling sequence, or will smother itself out in the current frustrating trading that there is any answer as yet, and we suspect, moreover, that it is rathe at 'Qi.he me for most invest- ors to take protective steps. The investor who has 0 i so ,high-flyer he bought last Summer, is hardly h'Olped by being told his stock a 0 end. Of this obvious fact he is all too painfully aware. As we said t e vestment policy at this stage calls for being a buyer of common stocks it we ss, i. e. if the selling climax se- – — quefice develops;-b'r-over tim-e; mately penetrated on the As to what stoc to b, r otential-'-ba'se-breadens and-i-s-ulti- \0iYO' r at the moment none of the ambiguity that be- clouds the future cour e . uring the desultory markets that have character- ized 1968 so far, s and industrial groups have constantly fought the de- cline — either staun y ef . to go down, or, in some cases, even moving ahead. In- cludedin this group are..;-.,.,pparels, banks, finance companies, grocers, home furnishings, retailers, savings and loans, buildings and textiles. The obvious relative strength being shown by groups of this type should impress even the most unsophisticated market observer. The counter-argument, of course, is that all the groups mentioned above are so-called defensive issues, and such issues always go down less in a poor market. Admittedly, the argument runs, growth stocks are performing poorly now, but as soon as th market turns, these magical favorites of 1967 will again make everybody wealthy. This is a delightful theory which unfortunately betrays a total ignorance of the behavior of markets. One of the most dependable rules of market behavior is that stocks and groups whic act the best during a decline generally turn out to be leaders in the next upswing. This is true whatever label (i. e. defensive, growth, cyclical) the investment faddists of the place on them. ReynoldsTolacco,Jor ,just of a defensive stock as it is to- day when it dramatically outperformed the market during the 1956-57 decline. It promptly demonstrated its defensive qualities by going from 13 to 90 over the next four years, Bur- lington Industries was cyclical when it was outperforming the market in the 1962 break. The ensuingcycle took the stock from 9 1/2 to 50. We think, in other words, that the invest or who ignores the continuing above-average performance of the groups mentioned above, an instead seeks bargains in depressed 1967 favorites, does so at his peril. He is likely to be missing some of the most exciting investment opportunities of recent years. Dow-Jones Ind. 826. 05 Dow-Jones Rails 218. 54 ANTHONY W. TABELL WALSTON & CO, INC, AWTamb This market letter 18 published for YOUr convemence And Information and IS not an offer to sell or 1\ solieltation to buY a.n) securities t.hBCUB8ed The In formation was obtained from sources we beheve to be l('llable, we do not guarRntee its accuracy. Walston & Co Inc. and its officers. dl;E!Ctors 0; employeee may have an mterest In or pUl'chase and sell the seCUTlUI.S referred to helem.

Walston &Co. –..;;;.;..; Inc. , L I Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER March 29, 1968 The market finds itself at a crossroads. On one hand, the market could continue its recent improvement if the breadth conforms to an improving trend. Such a happening could lift the DJ Industrials into our previously projected goal area at 850-870. Several of our technical indicators suggest that this could be the path to be followed in coming weeks. How- ever, any pickup in adverse Vietnam or political news again could subject the market to sell ing pressures that might result in another testing 0 f 820-825. Despite the hazy outlook, there is no scarcity of stocks that appear to offer attractive potential. Three of these, al- ready on our Recommended List, are discussed below and again recommended for purchase. For sheer ability to sustdn a unique growth ve-nding in- dustry again stood out in 1967 as sales reached newall-time highs. Sharing in this im- pressive trend and quite apt to continue being a star performer within its industry in the future, THE MACKE COMPANy(l7 1/4 ) would seem to offer the long-range investor an attractive vehicle for capital appreciation. Macke is the fourth largest of the publicly- held food service companies. Compared with an industry wide annual growth rate of 8.40/0 for the 1960-1966 period, Macke's rate of growth for sales and earnings was 29. 50/0 and 24.20/0, respectively. Prospects for the fiscal year ending September 30, 1968, indicate that earnings will rebound from the slight dip of last year' s a share to an estimated 1. 00 a share, while sales are expected to continue the uptrend that has been in progress for forty years and rise to around the 90 million level. Technically, Macke's chart presents that favorable pattern of a long-term uptrend that has been in progress since the lows of 1962. exists in the 17- 13 area. Our price objective for Macke is in the 2'tf5 r e, ,followed by a longer-term price goal at 42. Aluminum stocks have been among the hardest Naf all . strial groups over the last year, primarily in reflection of a S trend. Although not entirely .. 0.uLof the woods, by any means, g d' xpected.toberever.sed this year, suggesting that the current low pric e 'g Iple may prove an advantageous buying opportunity for the long-pUll v casualties of this industry has been ALUMINUM COMPAN OE A 1'(2). Alcoa's current pIE is approximately 300/0 below the ave a f f' n years, and at a point where further downside risk would be substanh d e anticipated improvement in net income this year is s to und the 5 a share level, from last year's 4.69. This also suggests the possibili another increase in the dividend rate, now set at quarterly. Alcoa's recent anno cement of a breakthrough in the water desalinization field, especially from the economics standpoint, suggests the possibility of an additional source of future earnings, augmenting what already is a highly favorable longer-term prospect. From the technical view, Alcoa has a strong area of support extending from 70-60. The base that has been built in recent years suggests a longer-term price objective be- tween 100 and 110. With the country going dry;' according to the latest TV advertiSing campaign sponsor- ed by CANADA DRY CORPORATION (321/4 ), accelerated consumption of mixers and soft drinks could be in the wind. The rapidly approaching summer season with its thirst quench ing appeal also suggests a further rise in sales of Canada Dry's leading products. Bene- fiting from this trend and'from'the important innovations'that the company's new manage- ment has implemented, earnings have been turned around and results for the fiscal year ended March 31, 1968, are estimated to have risen to around 1. 20 a share. This com- pares favorably with 1967's A further gain to around 1. 50 a share is projected for 1969. Canada Dry's chart rev-eals that a base of considerable strength has been built in the 33-28 area, indicating a price objective at 44. Downside risk in this situation seems lim- ited to the base area. Dow-Jones Ind. – 840.67 Dow-Jones Rails 218.99 HARRY W. LAUBSCHER for ANTHONY W. TABELL WALSTON & CO., INC. HWLAWTat This market letter Is pubhshed for your convenience and information nnd IS not An offer to sell or .t soliCitation to buy any securltieu Ihscussed The in- formation was obtamed from sources 'e beheve to be reliable, but we do not guarantee its tecumc) Walston & Co., Inc. and its officers. director r emDtoyees may have an mterest in or purchl18e and sell the secuntles referred to heleln a0 WN.SOl

Walston &Co, —-Inc IL Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER April 5, 1968 During the past six days, the march of world events has compressed more drama, surprise, hope and tragedy into a shorter time span than, a week ago, would have been thought possible. Invariably, some of this drama spilled over into the nation's financial mar- ket. On Sunday night, President Johnson announced his dramatic decision not to seek re- election and to press for a cessation of hostilities in Vietnam. The response of the stock market on Monday was instantaneous. Stocks rose on a broad front with the Dow-Jones Indus- trial Average advancing some 20 points. In the process, perhaps the last of the 1929 record went into the ashbin, asJFading,volunle soareq.!.17, 730,0OOshares, eclipsingthe old.hjgh. on black Tuesday almost 39 years before. With openin.g prices almost invariably well above the previous Friday's high, a break away gap was created on the chart of the Dow, and the other popular indices. Normal action following such a formation is for a few days of quiet trading in order t digest the gain. The market began to follow this sort of scenario on Tuesday, but renewed buying pressure took over by afternoon, and the list closed with further plus signs. Then on Wednesday came Hanoi's agreement to talk and the volume record which had taken 39 years to break was sheared again in just two days with a record of 19,290,000 shares changing hands in another advancing session. Thursday's 14,340,000- share volume, which would have been front page news at any other time, appeared almost a respite. Sobered by the lunatic act in Memphis, Friday's volume slowed and the Dow Industrial declined almost 7 points. The intra-day high reached by the Dow on April 3rd was 883. days from the low of 817. 61 on March 22nd. of 8 in nine trading a Insofar as the market is concerned, it is as a,' e y recall the Biblical injunction about rendering unto Caesar, etc. etc. f week will have a pro- found effect on the future of the SOCiety of which the iter all, only one small facet. From the point of view of the market, e 1st of April, 1968, provides just one more example of n.-, the-market seizing upon dramatic outside events to do just iWs chnical position to do in the first place. As has been pOinted 0y letter, the Dow has, since mid-February, been holding in a tradin d ug'flly between 820 and 850. It had been suggested that an upside brea u 0 . a could produce a move to around the 880 level. That was precisely what e u the week within a cycle that, otherwise, might have taken longer to compl e squeezed into four short trading days. As to the future a short-term objective having been reached, a new pattern will now have to form. Of gnificance is the longer trading range in which the Dow has held since last October. Bounded on the upside by the January 1968 peak of 921. 87, the ability to consolidate around current levels followed by a successful assault on that high would be tre- mendously constructive and could well be a precursor of a move into new high territory for most indices. , There are a number of encouraging signs which suggest this pattern as a possibility. Most of them center around the strength of last week's rally, both in terms of percentage advance and, obviously, of volume. It is this thing which differentiates the present advancing phase from, say, the tepid rallies which occurred in the Spring and Summer of 1966. A final word on the volume. In a sense, no real trading record was broken at all this week. Volume is, after all, meaningful only in relation to.the total number of shares listed. The 16,000,000 shares that traded on October 29, 1929 constituted 1;3 of the total list. An equal turnover would produce a volume of 150,000,000 shares. However, an examination of turnover figures for recent years is rather interesting. By and large, turnover had been in a steady downtrend for 30 years following 1929. Recently, however, there have been signs that -this trend ha-s been reversed, 1967 being the fourth consecutive year in which annual turnove increased drastically — the first such occurrence since the 1920' s. It should also be noted that the record breaking volume of the past week took place on the upside — interesting in view of the fact that it is selling climaxes which tend to produce peak volume. Given a continued secular increase in the rate of turnover, and the fact that selling climaxes will continu to be a fact of market life, the next few years will undoubtedly see occasional days which will make Wednesday's trading pace seem relatively pastoral. Dow-Jones Ind. 865.81 ANTHONY W. TABELL Dow-Jones Rails 223.90 WALSTON & CO. INC. AWTamb This mnrket Jetter Is published for your convenience nnd infortnfltlOn Rnd Is not an offer to sell or l\ 8ollcLtatJon to buy Rny 8eCurLtics thscussed The information was obtained trom 80urces we beheve to be rehable. but we do not jfUarH,niee Its accuracy Walston & Co. Inc. and its officers. directors or ernDtoyeeB may have an interest in or pUl'chase and sell the secUritIes referred to hetelT'. WN801

Walston &CO. —-Inc ;…-…;.– Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER April 11, 1968 Last week's stock market could be described, simply,as more of the same — the same in this case being continuation of the frenetic buying rush that overwhelmed the finan- cial community starting with the President's announcement of two weeks ago. In the process, the Dow-Jones Industrial Average was up 18 points on Monday and Wednesday saw the volum record fall by the wayside once more as an all-hme peak of 20.41 million shares changed hands in a session in which an early rise succumbed to profit-taking, but in which the Dow still scored another 8 points advance. Triggered by aU. N. announcement that peace talks could begin within a few days, the market underwent a surge in buying activity late Friday afternoon, lifting the Dow Industrials to their highest level since early'January; In the short space of 13 trading days, the Industrial index has advanced somewhat more than 100/0, It would be the essence of understatement to say that there has been a good deal of emotion abroad during the past two weeks — both in our national life and III the stock market It is worthwhile at this stage to try to take a somewhat dispassionate view of the market piC- ture and to try to arrive at a few tentative conclusions. To begin with, on the peace'front — and peace has been the operative word insofar as the market is concerned –, progress to date has been as much psychological as real. There has been de-escalation of bombing, and there will be talks, the outcome of which will undoubtedly be decisions to have further talks. Our troops are, however, still in Southeast Asia in massive numbers. There will be, in other words, no immediate transition to the sort of peace economy many were evidently expecting last week. Why th,en the market's response Last gte suspicion that there was very little in the way of a forecast built into the then of stock prices. As the nation's pessimism over the Vietnam d sto uotations receded, es- pecially those prices which had been based as much otion on value. The stage was thus set for a rebound as soon as the much a e end of the tunnel appeared. It was that rebound which we have seen in he wo s. It is, indeed, arguable that t . e a er-reacted. At lhe present time, on a short-term basis, it is, by any ta r !Pio use, sharply overbought. Given the exist- \ evitable. We would no i ,clined to chase stocks at the present time. Yet, it w e e to dismiss the rally of the past two weeks as some sort of flash in the p ich burn itself out and allow prices to slip back into the slough of despondence in whic t were wallowing last month. The meaning — or at least the po- tential of ent market action becomes clear if, at this point, we state a truism. That truism i(!hat intermediate-term upswings are made up of vigorous short-term rallies interrupted by relatively moderate declines, whereas downswings consist of persistent de- clines and rather tepid rallying phases. It is also true that, in general, the initial short-term rally of an intermediate-term upthrust tends to be especially strong and most recent example was the strong upturn of January 1967 which started the important ad- vance of that year. Viewed in this light, the significance of recent action becomes obvious. The rally of the past two weeks is measurably strong enough to constitute the initial stage of a much mor important phase. Confirmation as to whether it is, in fact, such a stage, will be provided in part by what sort of short-term pattern now forms. An orderly consolidation, followed by renewed strength would have to be termed bullish evidence of the most persuasive sort. From a long-term point of view, we think the bullish argument is convincing. The Dow is now in the upper part of a range roughly between 830 and 920 in which it has spent most of the time since the Spring of 1965. Only for short p.eriods has this trading range been violated. It is almost axiomatic that the trading range centered on this area will ulhmately constitute a major base formation of the most powerful sort. It is now, in fact, possible to count an ultimate objective of 1300 for the Dow — actually not a particularly startling figure in percentage terms. It is the intermediate-term outlook that is at the moment in question. In other words, will the ultimate upside penetration come in fairly short order, or will lower prices first have to be seen — a process, incidentally; which will have the ultimate effect of broadening the base still further We confess to no fixed opinion on this question at the moment. We can only watch for evidence of further intermediate-term strength or weakness. In these terms, however, the strong action of the past two weeks is without doubt an encouraging sign. Dow-Jones Ind. 905.69 ANTHONY W. TABELL DOl,BKlIM!i'ltJISaiM,18 19 , Wi\U;TOW CO, JNc0 your conven enee nnd lnformRtion find 18 not an offer to sell or R IIOhei&ta,tlOn to buy Rny seeurJtle t.I sed Th formntlon WB.8 obtained from lIources we believe to be rehable, but we do not guarantee its l.CCUrRcy Walston & Co. lnc and it dl' toe In- en1…J!.fOYeeI!I tpB)' have an mterest in or purchase and sell the sccuritus referred to herein. S 0 eers. ree rs or A WTamO WN.'O'

. f !, Walston &CO. —-Inc —- I Members New York Stock Exchange i, and Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER April 19, 1968 Following the announcement of increased rediscount and prime rates on Friday morn- ing, the amazing rally of March-April 1968 came to at least a temporary end. The Dow-Jones Industrials were off as much as 12 points early in the day, and following a few attempts at recovery, sank back to around their lows at the close. That the advance should be interrupted at this point was, after all, not surprising. Most of our short-term indicators showed the market being more overbought than at any time in the past 15 months, and all possible short-term objectives for the popular averages had been reached. Nonetheless, it is impossible, after a one-day reversal, to project much lower levels obviously, no top has,ye.Lbeen formed. Whether. the.recent short-term advance will be digested with a measurable correction or, simply, a consolidation, is a question that is not yet answered. Meanwhile, the tremendous strength of the move to last week's peaks continues to suggest the possibility of an intermediate-term reversal having occurred at the March lows, as discussed in last week's letter. Under these circumstances, w would utilize weakness for purchase of selected issues, four of which, currently on our Reco mended List, are discussed below. GREAT NORTHERN PAPER (51 5/8) Paper stocks in general have been reflecting the peace optimism of recent weeks and one of our favorites in this industry, GPP, has been sharing in the enthusiasm. Fundamentally, earnings continue in an impressive trend, suggest- ing that the 5.00 a share being estimated for 1968, up from 4.80 last year, will be realized With newsprint prices seemingly headed for another rise before too long and financial bene- fits continuing to accrue from capital improvements the outlook is for another earnings gain in fiscal year ending September 1969 e Great Northern's chart reveals a base of considerable breadth has t' r cent nths indicating a fort coming attack on the old high around 59. Our longer- pric ctive remains at 90. REPUBLIC STEEL (42 3/8) Despite tri 10 rap prices and steadily in- creasing foreign imports, first quarter steel y ea gs revealed a satisfactory trend. Republic' indicating that the previous ea ins .. – a-shar e, fr W.cff. 25 vs. 4.75 in 1967, may prove some- what conservative. ,Iuch, howe, s how long a possible steel strike would last and how large the wag i c e epublic's long-term capital improvement program has started to pay 1t right prospects for the years that lie directly ahead. From the technical shows considerable downside support between 40 and 36. While our initial u al is close to 50, our longer-term price objective remains around the 105 level. NATIONAL DA RY (38 1/2) This prime quality issue is another of our Recommended List stocks that has been doing better than anticipated, earningswise. The new earnings esti- mate for 1968 now puts results close to 2.90 a share, compared with 2.65 last year. This also indicates the strong possibility of another increase in the current 37 1/2t; quarterly divi dend rate, perhaps to the 40t; rate and in line with previous dividend increase policies. Much of ND's improvement stems from the shift in product mix that in future will place less em- phasis on weather as a determinant of profitability. The new product mix emphasizes Kraft processed foods and de-emphasizes ice cream and related items. Technically, ND has strong support in the 36-32 area and our upside price objective remains in the mid-sixties. GIBRALTAR FINANCIAL (3.0) In a field where volatility is not unusual, Gibraltar has put on a superior market performance in recent moriths, reflecting not only the imprOving prospects for the Savings &. Loan industry in general, but also the sharp snap-back being ex- perienced in per share earnings in particular. For the year ending next December 31; GFC is expected to report earnings of 2.40 a share, or better, compared with 1. 70 last year. While the recent increase in interest rates is likely to have a slowing down effect on the hom building industry, Gibraltar's management has learned to live with and operate under the high er rate climate, strongly suggesting little chance of earnings taking an adverse turn despite the hike in interest rates. Technically, GFC has good support from 30 through the 25 level and an initial price objective around 38. Our longer-term price goal remains near 74. Dow-Jones Ind. 897. 65 Dow-Jones Rails 236.31 HARRY W. LAUBSCHER for A.NTHONY W. TABELL WALSTON & CO. INC. This market letter Is published for YOUr convemence and information lind IS not an offer to sell or II. soliCitation to buy any 8(!('Qflties thBCussed Th tonnation was obtained from soureea we beheve to be rehable. but we do not guarantee Its accuraey, Wailiton & Co.. Inc. Rnd Ita officers e In- eml'loyees may have an Interest In or pUFchaae and sell the referred to herem TU or WN.801 -. …– — —

Walston &Co. —–Inc, —– Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET. LETTER April 26, 1968 There is a great temptation at a time such as the present to use this space simply to restate the obvious. The stock market has spent the last four week i,n a broad and dra- matic advance. The rampant pessimism which infected the financial markets in March has disappeared entirely and, in an almost schizophrenic reversal, has given way to the bound- less optimism of April. At such a time the inclination is always strong simply to chant the obvious litany about the market being overbought and in need of a correction. The fact that this point of view is obvious does not detract from its correctness. The market is, at the moment, overbought and probably in need of a correction or consoli- dation of some nature. Loss of momentum during the past two been obvious and we are in complete agreement with the theory that the advance of April 1968 will require some digestion. The important question, however, is what happens next We concluded our letter of two weeks ago by confessing we had no fixed opinion on the question, and the events of the past two weeks have not clarified the outlook to any great extent. Nonetheless, we also suggested at that time that the Dow had essentially held in a trading range for some three years, ever since the Spring of 1965. We voiced the view that ultimately this trading range would have to be penetrated on the upside and that the ultimate objective in terms of the Dow appeared to be 1300. The unanswered question, of course, from a technical point of view, is whether such a penetration will take place immediately or whether another downswing within the confines of the three-year-old trading range is likely. We think it is worthwhile, at this point, to examine the case for higher prices. We have repeatedly pointed out in this letter the axiom that major factors which bear upon the level of stock prices at any given moment, i dividends, money rates, and, probably most Important, investor conf.nSh. I in current state of each of these factors briefly. 1\ ctive to examine the Money rates, as no one needs to be oment, at record levels. Yet there is nothing new about this fact. t pr re of fixed income yields has been the–equity-market-has-bee . I w 'foe'pa'st-two-y-ears–W-e-thinkit unlikely that the pressure will Earnings, on th othe than it is at the moment. from the mini-recession of 1967 appear, unquestionab a at least on a before-tax basis. It has only been necessary to look results, which have flooded the newspapers of late, to observe the present gs d, and we must confess we see no diminution of this trend in the foreseeable futu e All this take meanwhIle, at a time when stock prices, as a whole, are hardly fully exploited. True, high — and possibly exorbitant — multiples are still being paid for a great many market favorites. On the other hand, a great many of the more blatant cases of overvaluation fell by the wayside in the January-March correction and promise to remain quiescent for some time to come; and, even after the recent advance, the relative cheapness of many inve'stment-grade stocks, by historical standards, still remains. In .short, we think the ingredients Tor a considerably higher level of stock prices are, without a doubt, present in the present set of economic ciroumstances. It is not our intention, by all this, to paint an oVlrly rosy view of the situation. The problems which confront the economy and the country as a whole are real and, actually, not in any way mitigated by the events of the past month. Yet, the dramatic response of the market to the most tentative sort of peace feelers indicates strongly that a great many of these problems had already been faced and discounted by the market. It is quite possible that over the next few weeks or months, signs of technical or fundamental weakness, not now apparent, will appear, and, if this does take place, we would certainly hasten to adopt a relatively cautious attitude. At the present time, however, we think that sensible money management requires at least recognizing the possibility of a sub- stantially,better intermediate-term stock market climate. Dow-Jones Ind. 906. 03 Dow-Jones Rails 234.67 ANTHONY W. TABELL WALSTON & CO. INC. AWTamb This market l('tter is puhhshed for your Rnd Informlllion nnd Is not an offer to sell or II. RotlcllatLon to buy Hny se'Uritles ulscussed. The in- formation was obtRlned from sourcc'J we hellc\e to be r(!hnbl(!, but. we do not ItUnrantee Its nccumcy Walston & Co., Inc, Rnd Its officers, directors or —- -,emDloyees may have an Interest in or IJurchase and sell the sl.!curltJeB referred to helem. WN801

W—a-lslntocn.&–C-o-. Members New York Stock Exchange and Other Principal Stock and Commodity Exchanges OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER May 3, 1968 The thought has often been expressed by various writers that the study of the stock market action is, albeit indirectly, the study of human psychology. It is, of course, the study of man's behavior as a group, rather than individually, but, en masse, the collectivity of investors who cause the day to day fluctuations on securities exchanges displays a great many typical human emotions, hope, greed and fear being among the most common. Still another emotional trait which the stock market seems capable of exhibiting, especially latel is the conditioned reflex. It is now necessary only to breathe the magic word peace and we are, once more, off to the races. This trait was exhibited on Friday morning as Hanoi'.s acceptance of Paris as a peace-talksite sparked an eleven-point rally-in the Dow. It was, of course, doubtful, conSidering the short-term overbought condition of the market, whether a major rally was, in fact, sustainable, and this one, indeed, was not — almost all of the gains having been given up shortly before the close. Nonetheless, the Dow was able to show a small plus sign for the day. The rally, which capped a string of ten successive advancing days and brought the Dow to an intra-day high of 935.68 was not,however, without its significance. During Friday' trading the Dow moved decisively out of the trading range between, roughly, 825 and 915, in which it had held since the Fall of 1967. This area must now be presumed to be an interme- diate-term base with possible upside objectives centered around the area of 980. Parallel action took place in the Dow-Jones Rails with the upside objective for the carriers approxi- mately in the 256-261 range as opposed to Friday's close of 240,46. Thus, while short- term vulnerability has perhaps been moderately fies, it seems to us, an improved intermediate-term inve Blarket strength signi- Our Recommended List has, over recent m er large and there are a number of issles which we shall probably add 0 e list any short-term weakness that takes place. We are, therefore, taking st gth as an opportunity to remove thirteen issues from the list. A few f th e 0 sub tial profits from the time of reco mendation; while OfKersshow 'n these 'latter- cases, questiona15leriear term technical action makes switch into other issues n the's vm consideration to accept these losses and re immediate attraction. We have tabulated be- low the price perfor n 's eing removed since December 31, 1964, the base date for our Reco rds, showing their percentage change since that time versus the performa eft ow. There were 158 recommendations made over the perio Of these, 110 have adva and 48 declined. A complete performance record of the list is available from yo alston Account Executive, and an up-to-date copy of the list, to- gether with current comments, will be available early next week, Obviously, no implication is made that such results could be obtained by purchase of issues in the Recommended List, or that similar results will be obtained by purchase in the future. Commissions are not included. Stock List Date Price Current Recom. Recom. Price Change DJIA Change Same Time Perio Ampex Anaconda Columbia Br. Eaton, Yale Shell Oil Price Apprec. Price Apprec. Quality L. T. Price Apprec. Price Apprec. 6/30/67 36 1/8 9/8/67 493/8 11/18/66 57 12/31/64 21 12/31/64 -591/2 32 1/4 45 1/8 58 5/8 33 1/4 67 1/4 -11 9 3 -54 '1–13 7 1 14 5 – 5—— Signode Corp. Price Apprec. 12/31/64 27 1/4 37 36 5 Scoville Mfg. Price Apprec. Syntex Speculative Tektronix Price Apprec. United Fruit Price Apprec. Vulcan Mat. Speculative Varian Assoc. Speculative Wallace & T. Price Apprec. adjusted. Dow-Jones Ind. 919. 21 Dow-Jones Rails 240.46 5/5/67 42 3/17/67 93 1/8 3/17/67 401/8 12/31/64 175/8 12/31/64 173/8 12/31/64 13 40 75 47 1/4 58 217/8 27 5 – 21 18 229 26 108 8/2/65 32 36 5/8 AVERAGE 14 35 ANTHONY W. TABELL WALSTON & CO. INC. 1 6 6 5 5 5 4 5 Thill market letter Is published for your convemence and informat1On Rl'ld IS not an offer to sell or 1\ 8ohcltatlon to buy Rny secUritIes l,lLscus8ed, The m. A formAtion was obtained from BOurces we beheve to be rehabl but we do not guarantee Its have an interest In or purchase and sell the seeurltlcs referred to herein Walston & Co Inc. and Its officers. directors or ……. WNBOI

—- Walston &Co. Inc ————.'1 I Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAST TO COAST ND OVERSEAS TABEll'S RECOMMENDED LIST May 9, 1968 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. Close Alum.Co.Amer.713/4 Amerada 82 1/2 Amer. T & T 495/8 Borden Co 31 3/4 Caterpillar T 407/8 Colgate Palm. 451/2 Cont'l Ins. 82 1/2 Cont'IOil 65 1/8 Del Monte 31 Fed.Dept. S. 81 1/8 Goodyear T 53 1/2 QUALITY & LONG TERM GROWTH Qual- Upside Sup- Close B 72-66 Gulf Oil 77 A 110 A 80-76 Intern'l Paper 31 1/4 46-44 Kellogg Co. ' 43 1/4 A 60 30-28 Lorillard 48 1/8 A 59-68 40-37 Nat'l Cash R 1393/4 A- 52 41-38 Nat' Dairy 41 7/8 108 80 Parke Davis 301/4 A 86-130 64-62 Phillips Pete 573/4 A 60 30 Radio Corp. 53 A 90-124 74-68 Reynolds Tob. 42 1/2 A 82 44-42 Royal Dutch 48 3/8 Qual- Upside Sup- –p;– 78-92 73-67 A- 28-26 A 63-82 40-36 A- 98 48-44 A 150-190 130-120 A 66-72 38 A 50 26 A 86-120 56-48 A- 76-98 50-46 A 74-124 38 A 53-79 43-38 PRICE APPRECIATION Adams Millis 26 1/8 B 37 23 Gen'l Dynamics 55 1/4 – Air Reduction 30 5/8 A- 55-70 28-24 Gillette Co 57 1/2 A- Allegheny Lud. 62 A- 102 60-54 Great No. Paper 55 1/4 B Amer. Bakeries 275/8 B 44-59 27-24 Koppers Co. 36 1/4 B Amer.Machr203/8 B 36-56- 2ifg- McNell – 49- B Anchor Hock. 47 3/8 A 70-90 40 Medusa Port.C. 39 A- Arvin Ind. 32 3/8 B 46 30-27 Mesabi Trust 111/4- Bulova Watch 32 1/8 B 50-60 26 Olin Mathieson 357/8 B Burlington Ind. 45 1/2 B 76 43-37 Republic Steel 423/8 B Canada Dry 37 3/4 A- 44-60 35 Revlon 87 3/4 A- Chic. Mus. Inst. 30 B 65 Commonw'th Oil 23 1/4 – 46 23 Reynolds Met. 43 1/2 B 23-20 Reigel Paper 25 B Comsat 63 1/4 104 57-54 Robt.Controls 51 7/8 B Copperweld Steel 25 3/4 B 50-68 24-20 Schlumberger 94 5/8 A Dentist's Supply39 1/2 B 58 36 Seaboard C. L. 46 3/4 B Diners Club 53 1/4 B 57 40 Sharon Steel 38 3/4 B- Dresser Ind. 38 B 57 35 Squibb-Beech N 41 5/8 A Eagle Picher 26 B 30 23 Union Camp 40 5/8 B First Charter 31 48-58 28-24 Vornado 24 3/4 – 92 80-88 62-90 62 62 46 27 60-100 70-106 100 53-94 34-42 58 110 84-96 52-70 80 92 46 51-47 54 52-46 35 44–c– 30 12 35 38 74 41-39 22 41 74-68 44-40 34 36 36 25-20 SPECULATIVE PRICE APPRECIATION Allied Superirikts. 16 3/4 R- 33 Amer. Motors 11 3/4 B 30-35 Amer. Photocopy 18 B 36 Camp. Chib. 8 3/8 16 Chris-Craft 35 B 46-68 Electron. Spec. 33 1/2 B 72 Gibraltar Fin. 29 3/4 – 59 Home Oil A 24 3/4 B 34 16 11-9 14 8 32 27 28 24-22 Macke Vend. Microwave National Can Pacific Pete. Penn- Central Technicolor UMC Indust. Victoreen 21 1/8 30 1/2 43 18 1/2 76 27 1/8 21 3/4 14 5/8 B B B B BB B C 40 50 52 30 104 58 58 20-38 19 28-26 35 16-14 70 24-20 20-17 14-12 Anthony W. Tabell Walston & Co. Inc. This BulleUn IS pubhshed for your convenunee Rnd Informallon Hnd IS nol an offer to or R soliCitatIOn to buy any securities diSCussed. The Informallon was obtamed from sources we bchtve to 1M; reliable. but we do not gtlRrantt.'e Its accuracy. Walston & Co Inc Rnd Its officers. directors or employees may have an mterest an or purchase Rnd bell the referred to herem. WN-916