'–' ———————————–..c———————————————————– 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 September 27, 1968 Market strength continued this week with the Dow-Jones Industrials posting a new 1968 high, and the Standard & Poor's 425-Stock index an all-time high. Both the Standard & Poor's 500, and the New York Stock Exchange indices were a few cents away from all-timE peaks. The phrase bull market appears more and more appropriate to describe the action since April 1st. If a bull market is, indeed, what we are looking at, the Job of the technician then is to inspect the .itality of the market as it moves ahead. So far, the verdict must be a rela- tively clean bill of health. ,- — volume, and it is worthwhile at this point to examine these both in detail. Market breadth, of course, refers to the number of stocks advancing and declming and these figures can be manipulated in any number of ways. The most common form of manipulation is to construct a breadth index and to observe its action vis-a-vis that of the popular averages. There are various ways of constructing such an index and either daily figures or weekly figures can be used. These niceties of construction often lend themselves to differences in interpretation. For example, most indices based on weekly breadth have continued to confirm new highs in the averages throughout 1968. It is, furthermore, a strong probability (figures are not yet available) that the new high in the Dow of this week will be confirmed by the week's advance/ decline figures. Weekly breadth figures, in other words, are perfectly consistent with an ongoing bull market. Daily figures, on the other hand, have, generally failed to confirm the new highs in the Dow, thus allowing some tec n' ci arjlle that underlying deterioration has been exhibited. Were this s, indeed, be dis- turbing. However, anyone who has worked closely w aily decline figures over a period of years, realizes that a downward the exists and that a confirma- tion of any upmove by daiy breadth often the fact. The cent example was the Sprmg of 1964 hl.WYlll the Dow was fOlloweooy a newnlgn- in breadth, but with a delay e An unbiased reading, it seems to us, therefore, would have to consi r picture as, at worst, neutral, and at best, favorable. Volume fi tation. Generally, t nt 0 t, also lend themselves to some ambiguity of interprep i here is, of course, the four-day weeks which have pre- vailed throughout the Average daily volume is close to record levels, basically, a constructive factor, has recently been a tendency for weekly volume to tail off as trading has been restricted. However, even this deterioration cannot, it seems to us, be considered serious enough to warrant a pessimistic interpretation at this stage. In summary therefore, we think the present advance is exhibiting the normal vitality consistent with a continued upswing. All this is borne out, it seems to us, by an inspection of the technical patterns of some 2000 listed common stocks. By and large, these patterns are highly constructive. In only a tiny minority of issues is there at the moment any evidence of major distribution. A significant number of technical patterns at the moment, in fact, have a clearly bullish confi- guration, and the great majority are, at worst, neutral with, at least, potentials for ulti- mately higher priceB. c – – Translating this into terms of the Dow-Jones Industrials, it seems, therefore, reasonably likely that new high territory should be seen before too long — perhaps by a significant margin. One possible upside objective for the Dow is 1300, and this figure should hardly be startling. Indeed, based on the mathematics of the Dow's construction, it could be achieved by an average move of only 23 points in the 30 Dow stocks. — hardly an earth- shaking possibility. It is, however, unnecessary to think in this stage of upside targets. If market deterio- ration occurs at some later stage, we can only attempt to recognize it and act accordingly. Until such deterioration does, in fact, occur, we prefer to continue to think in terms of a fully invested position with concentration on high-grade issues of the type emphasized by thi, letter over the past year. Dow-Jones Ind. – 933.80 Dow-Jones Rails – 266,08 ANTHONY W. TABELL WALSTON & CO. INC. This DUl.rket letter i.e published for your convenience and mformation and IS not an oller to sell or 1\ soliCItation to buy any securitIes Jllicussed The in- formation WA.8 obtamed. from sources We believe to be rehable,. but we do not IUfLrantee Its accuracy Walston & Co,. Inc. and lte officers. dlrector or em.4'.!oyees may bave an mtereet in or purchase and sell the 8ec!Untles referred to helem, AWTamb WN'.'

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 October 4, 1968 The stock market went up last week — so what else is new Actually, a number of things. The Standard & Poor's Composite,the New York Stock Exchange Index and the American Stock Exchange Index all moved during the week to new all time highs. The Dow Industrials, which have been the feature of the rally so far, moved to a 2 1/2-year peak, finally surpassing their high level of September, 1967. The advance to highs for these averages was confirmed by our weekly advance/ decline line, and the daily advance/ decline line moved closer to such a confirmation. The only average lagging the centage somewhat was the Dow-Jones Rails which, at its week's high of 275.14 was slightly ail1967 02. , Notthat is sweetness-and'l(ghC 'Breadth could be better, and there-is some evi- dence (see below) that, on a very short-term basis, the advance may be running out of steam. There are, moreover, a few distributional patterns in evidence. These, however, seem to over/ihadowed by the tremendously strong chart formations of the majority of stocks, es- pecially those in the highgrade sector. D-J Low D-J High Adv. S&P Low S&P High '10 Adv. Jan. -Feb. 1967 776.16 871. 71 12.3 79.43 89.00 12.0 Apr.-May 1967 838.98 915.07 9.1 87.86 95.25 8.4 21 June-July 1967 853.21 933.14 10.9 90.08 96.67 7.3 28 Aug. -Sept. 1967 887.83 951. 57 7.2 92.01 98.31 6.8 19 Nov. 1967-Jan.1968 839.40 921. 87 9.8 90.09 97.84 8.6 33 Mar. -May 1968 817.68 935.68 14.4 86. 1Jl. 15.1 40 Aug. -Oct. '68 (to date) 863.33 957.30 10.8 96. 3S' 7.8 32 It is interesting to compare the rally which u th with its predecessOlj'1! since the beginning of 1967. As can be seen, from th able a , it has lasted 32 days — about par for the course, based on recent rcentage advance to date fails to match the early-1967 rally or in line with. or r F s Day advance of this year; but is – t '1- c!jlW nents ofthe longer-term upswing. performance on the Dow that of the Standard & Poor's but, as the table shows, this is t a n,ing phase. To date, it has been in declining markets that the br a i t d to do considerably better than the Dow. At the mom r ' n Idence that any correctionary phase will be other than a mild one in view of hl he ng-term objectives for those individual issues. Strong sup- port now exists in the D t the 920-900 level. We are remo from our Recommended List ten stocks whose performance is lated below. In two cases (Canada Dry and Continental Insurance) the removal price is ad- justed to reflect securities received on merger. Since December 31, 1964, 151 recommen- dations have been made in this list of which 107 have advanced and 44 declined. A complete record is available at your Walston Office and, obviously, no implication is made as to future results. Commissions are not included. Stock List Price & Date Recommended Current Price 0/. 0/0 Change DJA Change Same Period IAllc!lor Hocking Canada Dry Continental Ins. General Dynamics Gulf Oil Lorillard Spec. Apprec. Apprec. Quality Apprec. Quality Quality Spec. 191/8 (2/2/68) 53 (11/18/66) 33 793/8 (3/17/67) 35 (12/31/64) 58 1/2 (12/31/64) 51 1/2 (9/8/67) 17 (12/31/64) 16 1/8 – 15.7 72 35.8 ,7.!8adj) 32.4 131 (adj) 65.0 47 1/2 35.7 82 3/4 41. 5 675/8 31. 3 553/8 225.8 10.4 8.5 10.4 9.6 9.0 9.0 5.0 9.0 Quality 883/8 (5/21/65) Apprec. 21 3/8 (12/31/64) 1373/4 223/8 55.2 4.7 3.3 9.0 51.1 8.3 Dow-Jones Ind. 952.95 In()w-.T()n,' Rails 273.04 ANTHONY W. TABELL WALSTON & CO. INC. WT'amb Tbla market lettel' la published for rour (!onvenlence and Information And 18 not an oft'er to Bell or a eoIlc1tation to buy any aeeurltlea lh!Cuued, The formation WlUI obtained from eources we beheve to be reliable, but we do not guaral'ltee Ita l.ceurac),. Walston & Co Inc. and Ita officera. dlrectora or mlJ have an JnterM In or purchase and sell the J!eCurltiell referred to herein.

Walston &Co.;;,;;,.;; Inc …..–;.. FIL6 Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER October 11, 1968 The fact. that the overbought condition of the market a week ago has, so far, not been substantially corrected, suggests a further extension of the short-term decline that started underway this past week. As previously stated, the anticipated decline should be one of limited extent and should prove helpful in creating a more healthful market climate — one that could foster a strong rise in equity prices before the end of this year. In view of this condition, we continue to advise that clients husband cash reserves, temporarily, awaiting a buying level that would prove more advantageous than that now afforded. In last week's letter we announced removal from our Recommended List of ten issues. Cash generated from the be addedto reserves. In coming weeks,wewill be tions to the Recommended List. A brief review of seleCted stocks-alr'eady on our Recommenc-I ed List follows. PHILLIPS PETROLEUM (68 ), along with international oils in general, has put on an impressive market performance in recent months, rising some 20-plus since July. This rise came in the face of expected lower earnings for the year, now estimated at around 4,.60 a share, vs. 4.71 last year. However, most oil analysts anticipate a rebound in 1969. Addingto the attraction of this issue is its participation in potentially oil-rich areas such as Alaska's northern slope. With a price objective still set at 86 initially, Phillips continues to be attractive for investment purchase. PACIFIC PETROLEUMS (21 ) ,45 owned by Phillips Petroleum, is another issue ben- efiting from the renewed interest in oils. Having already risen 50 from the June low, the outlook is for continued market strength in'reflection of net income, nowesti\ mated at around for 1968, vs. last year, an ampli ' d fatl911 program and \ steadily increasing crude oil production. pur price a ci e 0 above 30 and with good support in the 20-18 area, the stock remal s attra e purchase. AMERICAN MACHINE & FOUNDRY in the market limelight of late, rising almost 30 just in the last m.onth. ov s exceptional in the light of a dis- 1-10 – to its bowling business. and'satisfactory earnings outl Outlook for 1968 on AMF currently se 0lil that due to AMF's strong have no effect on the common dividend. 0 ings estimated at the highest level since 1961. With e discount from our 35 price objective, the stock war- rants consideration rc . ' BURLINGTON I U IES ( 49) has shared the renewed enthusiasm for textile stocks that characterized of the market in recent months. The basis for this optimism would seem well founded in view of ,earnings estimates centering on the 3. 10 level, up sharply from 1967's depressed 2.30 a share. The recently increased quarterly dividend, now at can be considered a for further liberalization in coming months. The favorable chart pattern for BUR continues to a price objective at 76. MEDUSA PORTLAND CEMENT (40 ), despite the unexpectedly lower earnings fore- cast for the quarter recently ended, remains an attractive issue in the building products category. While at present it is difficult to make an accurate earnings estimate, we would continue to hold MPD and recommend adding to commitments on any additional weakness. There is good support in the 40-'38 area, with major support at 30. Our price objective re- maio ns at 4 6 . ,' . ' , , , , , '0,0,. , SHARON STEEL's (48) almost dramatic rise of recent months can-beattrilJuted to-tne -, – marriage proposed by NVF C,orporation via a tender offer. However, management has recommended that its stockholders reject the tender offer. Recent news that Sharon has been approached by Alloys Unlimite'd has brought forth a no-comment from SSH management, but Sharon's optimistic earnings potential undoubtedly makes it an attractive merger candi- date. This, together with the 90ntinuing bullish chart pattern and a price objective at 52, followed by a higher goal at 7i, suggests retention of the stock, and even purchase on any ..'near-term w.ea k n e s s . , . A,n up-to-date edition of our. Recommended List is now in preparation and will be issue shortly. .,' Dow-Jones Ind. 949.59. Dow-Jones Rails 269.46,' i0 , HARRY W. LAUBSCHER for ANTHONY W. TABELL WALSTON & CO. INC. J. This market letter is pubhshed for your convenience and mformAtlon and is not nn offer to sell or a l\()itcltatlOn to buy any securities dLscussed. The In formation was obtained from sources VIoe believe. to be rehable, hut we do not guarantee its accuracy Walston & Co Inc, and Its officers. directors or AWTHWLamo 'em..1!!0Yees mID' have I\ll interest in or IluFchase and sell the referred to helem, WN'O'

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 October 18, 1968 Continuipg optimism over indications that a potential bombing.haltmay be in the offing in the Vietnam conflict was reflected in the market's moving to a new 1968 closing high. Whether the market call close the gap that now remains between the present level and the all- time closing high of 995, 15 without being subjected to a selling phase, remains to be seen. Any selling phase that does enter, should it do so, would be contained, in our opinion, within reasonable limits and not do harm to the presently bullish stance of the .market itself. This letter has referred repeatedly, over the course of the Summer, to the obvious shifts in leadership taking place in equity markets. The changes, of course, have been dra- mati e-enoughto stru wMt–t(oi-'H,,-J be taken of the market upswing which began last April. Meanwhile, as the upswing progresses, cross-currents begin to be more pronounced. great many industry groups and stocks, which have above-average attraction on a long-term have passed through, are passing through, or may shortly pass through, short-term downswings which will provide attractive opportunities to establish or increase positions. We are, therefore, commencing this week a review of individual industry groups which will be continued in subsequent issues until all groups have been covered. Aerospace issues have, by and large, been in downward or, at best, neutral trends since the September 1967 highs, and, while risk appears low at present depressed levels, there is no indication of any immediate reversal. By and large, issues in the group should be switched, Exceptions to this rule might be Northrop, Martin-Marietta — which benefits from its identification witli the building industry — and the s. Airline stocks constitute a dilemma for the time. From the of 1967 to the Summer of these were genal stocks entire Board, with ma-rkdowns of 500/0 being the ru the exception. A sharp .nH.lV from the ensuing deeply oversold – di the past few weeks, and in- are that this rally could continue before running its course. While convinced,that.the prese '''''I'' confidEmcein the– meaningful uptrend. We confess to no uldlp'!'ef'er continued avoidance of the group and IW(JUl,a utilize further' positions or leftover long-term holdings. perfect example of a fairly common cla'ss in today's pa,tentilal is large, but where relative strength is horren- immediate move is indicated. Relative improvement can place very se, as a number of groups have already shown us this year, there is as yet, 'no sign of it here. Patient long-term holders should retain pOSitions, but more aggreSSive 'inve'stors will undoubtedly find immediate upside action elsewhere. Most Apparel issues have done well in recent markets, and would have to be rated strong holds. Bobbie Brooks (25 ) appears most attractive for purchase at the present time. Auto issues do not present clearcut patterns at the moment, but the odd's seem to the -upside, with important moves not at 'all beyond the realm of possibility. ImOl,catlc.rts that the 1969 model year may exceed earlier expectations add fundamental attrac- ss to the group and we would not be adverse to seeing major auto stocks in portfolios at time. American Motors ( 14 ), on our Recommended List, continues to provide an attrac- -speculation on the company's – ability to gain , an increased market share– a…nd, wi-th its high leveraged position, show dramatic earnings gains.' ' Auto Equipments generally reflect the picture in the auto industry on which they de- nd arid thus, in most cases, 'indicate higher levels. Arvin Industries (46 ), on'our Recom- Imended'List, has an upside target of 48 and Champion Spark Plug (34) and Eaton Yale & appear 'attractive for purchase at this time. Baking. American Bakeries (33) continues as an attractive special situation with a over 60. ', Businee;sMacnine issues are now at a pronounced downtrend relative to the market considering the high levels of most of these stocks III relation to current earning power, are probably'better orf'switched into cheaper and more attractive i'ssues. '. Ind. ' 967.4'9 IDc)w,Jones Rails 27, 2.46 ,. '., ;.;.. an ANTHONY W. TABELL WALSTON & CO. INC. and informatIOn and IS not an offer to sell or a SOhClt.ation to buy any be rehable. but we do not. guarantee Its l.ccuracy. Walston & Co. Inc. &ell the securLtJeq referred to helem \ ,r .7 '

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 October 25, 1968 We are continuing herewith the review of individual industry groups begun in last week's letter. . Building. Price gains in these issues have been dramatic since the 1967 lows, with increases of 100 or more not uncommon. Nonetheless, long-term objectives in almost all cases are well above current levels and these issues should constitute an important part of any portfolio. The stocks have been weak lately and appear to be about halfway through short- 1 term corrections, thus providing attractive purchase opportunities on weakness. Some possibl downside targets are' Flintkote (31) 28, Johns Manville (77) 70, Certainteed (34) 32, and U. S. ;1' !, Gypsum (86) 85. All of the above issues would be attractive purchases on weakness to the A number of OUler groups for example, have moved sideways recently and we still consider issues in this group attract i'l I' I ive on dips. At recent lows, most Savings & Loan issues were at or close to downside objectives and we would continue to use weakness to add to pOSitions in this group. . Chemical stocks show strong indications of having reversed the long-term downtrend WhlCh has characterized the group for almost a decade, and we think selected issues are at- II' ! I II II tractive for purchase at this time. We would concentrate on DuPont (171) and Monsanto (56) in preference to Allied (37), Union Carbide (46) or Dow (83). Air Reduction (31), one of the ! II more disappointing issues on our Recommended List, has shown some early signs of techni- cal improvement and appears again worthy of consideration. 1 Cosmetic stocks have shown worsening relative action throughout almost all of 1968. I In the past month some issues in the group have displayed . oraYing tendencies and have moved up to prices just under their Summer highs. We thi teo Hrl.lity of a double top here is a real one, and we would utilize the current en 0 e es. . The Drug group is mixed and it is impossibl lk ence to the various individual patterns. Q e stocks except by refer Electrical Equipment stocks generall t spiring technical patterns. Some has been noted in Gener r cently. and the stock has a ppssible objective of 124 although former in.the group.c,ontinues b 0 v.c will slow action. The outstanding per(62) (on our Recommended List) which has an upside ta t Electronic' i . f argest industrial categories on the Board in terms of number of stocks in a e are technical patterns of all types in individual issues. In general, however, th s are typical examples of issues which were market leaders through 1967 and whic m to have abdicated their upside leadership since that time. Many price! earnings ratios are still above average historically, and we would continue to counsel avoidance of the majority of stocks. As a major sub-group within this area, Television stocks generally look uninteresting, with the notable exception of Magnavox (58), which has an upside objective of 110. Farm Equipment stocks have recently begun to act better relative to the market than they have for some time. The two major companies have been holding in trading ranges -Deere (58) between 50 and 60 and International Harvester (37) between 32 and 40, for most of this year, and ability to break out of these ranges would indicate higher levels. It is too earl however, to forecast a definite breakout at this stage and we would prefer to be buyers on weakness to the bottom of the ranges mentioned. Finance Companies, one of the betterperforming.groups in the past year still rate as holds. Beneficial Finance (49) has an upside objective of 75 and Household (46) one of 58. Food Chains are, at the moment, one of the more attractively situated groups from a technical point of view. The bases are substantial and relative action is above average. We would regard Safeway Stores (27), Von's Grocery (28), and Jewel Companies. (47), as attract ive for purchase at the moment with First National Stores (38) and Great Atlantic & Pacific (31) being attractive speculations on an earnings turn-around. Allied Supermarkets (21) is a interesting special situation based on their operation of the food departments in Kresge's K-mart discount stores. Food Stocks offer defensive value and, in many cases, attractive upside potentials. H. J. Hemz (64) has an upside target of 116, Del Monte (36) 60 over the long term, and Nation , Dairy (44) has an upside target of 68. ;J Dow-Jones Ind. 961. 28 . ANTHONY W. TABELL Dow-Jones Rails 268.40 WALSTON & CO. INC .. Thlo market letter is pubhshed for your convemence Rnd mformRtlOn Rnd not nn offer to sell or It soiLcltatlon to buy an)- se.'uritles discussed. The m- formation was obtained from sources v.e beheve to be reliable, but we do not guarantee Its nccuracy Walston & Co. Inc. and iu officers. directors or employee!!! may have an interest In or purchase and sell the seCUrities referred to hClem WN.801 .'Alil,ltG.'''' aI n ….,… ,&'.

'Walston &Co. —–lnc. —– Membe.. New York Sock Exchange and Other Principal Siock and Commodity Exchange, OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER November 1, 1968 The stock market demonstrated last week the essential truth behind everycliche by once more refusing to discount the same thing twice. Between mid-August and mid-October, the Dow had scored a 100-point straight-line advance based largely on the prospects of an imminent cessation of the Vietnam bombing. On Thursday, when the knowledge of the bomb ing halt first became widespread, the market rallied feebly in the morning and was barely able to hold its gains. On Friday, following the President's actual announcement, the Average actually wound up off 3.98 points on the day. – A -. P.. rom-a–technical point-of-view,-thi's-i-s- all -to viously requires some consolidation, and the sooner we get this necessary process over wit the sooner the upswing can be resumed. At the moment, the distributional formation is sufficient to indicate a dip close to the 930-920 support level in the Dow. This would fit in with the normal post-election pattern and the subsequent year-end rally which might carry from the support level mentioned above to new highs around the turn of the year. So far, as noted, the typical election year pattern has held good in 1968. It was pointed out in this letter last July that there was a strong tendency iIi-stich years toward a strong second half. This tendency has prevailed again this year despite the many unusual factors peculiar to the 1968 Presidential balloting. It is these unusual factors, as has been repeatedly noted, that make this year's election a .difficult,one to forecast. The argument in favor of a Nixon victory is, on the face of 'a strong one. -A recent fabulation showed Mr. Nixon leading in 34 States with a total of 348\electoral than needed for victory. Seven States with 46 votes leaned toward Humph e, ith 53 votes toward Wallace, and 4 States (including New York) were c 11. The Nixon case is thus persuasive. of oubtful States, plus sim- ply holding his own, he is the victor by . And yet, not too much is re- qu-ired – -e -5 electeI'-al- vote totals — California, .0 10 and Texas. Were G, O. P…! !or example, not to gain any of r States, and lose any 3. of the above 5, Mr. Nixon's majority tabulation shows h' sEi i d. 0 r. Humphrey — despite the fact that the above otes, win by picking up the 4'doubtful States, plus the 5 large in . entioned above. The imponder Ie, course, is the Wallace vote, – – – – not so much in the South' ern States, where he . obably depriving Mr. Nlxon of a majority, but in the Northern in- dustrial areas. In Pennsylvania, for example, polls indicate the possibility of his receiving 500,000 votes — this in a State which was won by just 100,'000 votes in 1960. Thus, the .question of w.hether the half-million potential Wallace voters would otherwise have voted for Nixon or Humphrey, and whether they will switch back in the privacy .f, the voting booth, or simply stay ho. me, becomes crucial. It is a questi0Il,as yet largely . – . ,\ .De spite all of the above, however, we are inclined to think that Mr .. Nixon's strength as shown by even the most recent polls, is insuperable. We, therefore,' forecast a Nixon – victory. i r () ( …. j \.. . Having undertaken the above exerCise, we confess we think it makes little difference as far as the stock market is' concerned. Were Mr. Htiitiphrey-t8 pUll 8ff il.tI Mi suing correction would probably be a little bit deeper lind faster than might otherwise be the case. In the likely event of a Nixon victory, a correction probably will also ensue — but in somewhat milder form. The only thing that might dra-matically alter the'picture would'be, of course, the third result — no candidate's being able\to win an electoral majority, with its attendantpossibilities of a brokered electoral college or selection. by the House of Re- ' 't . presentatives. Barring this eventuq.l.ity, we think the market's most likely course is dictate .by'-its . -,' internaL technic'al position as outlined above. ; . . ,… .. -. .!. . .. DOW-Jones Ind. 948.41 Dow-Jones Rails 265. 37 ANTHONY W. TABELL WALSTON &-co. INC. .. .' ; – . .. ' — AW'I'amb Thls'market letter Is published for your convemence and InformRtlon find Is not an offer to sell or It lIOilcltation to buy RY fonnatlon was obtamed rom wc,-oe/U!e to be rl;'itabJe but we do not gul\rantee Its aCcurACY Walston & Co Inc. and ItS officers, director or employec8 may have Interest In or purchase and sell the securities referred to helem II , .. . WN801

Walston &Co. —-Inc —- Members New York Stock Exch.nge and Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER November 8, 1968 As has been noted before in this space, the record of this letter in stock market fore casting has been somewhat less than perfect, but it has, at least, been able to continue a 20-year unbroken string of successfully forecasting Presidential elections. The balloting turned out just about as outlined in last week's letter. Mr. Nixon was the winner, as fore- cast, and Mr. Humphrey's dramatic resurgence was largely the result of a swing in the large industrial States — a possibility we discussed at some length. We suspect the whole thing will make little difference as far as the market is con- cerned. The 100-point advance of August-October still reqUlres digestion, and the post- election tion centered around the 950 level rather than a deeper coirection to 930-920. At the mo- ment, the best that can be read on the upside is a test of the old high which, in turn, might broaden the potential top. In this connection, we can only wait to see how the pattern develop The salient fact is that the long-term trend remains up and that investment opportunities abound in individual issues. Along these lines, we are continuing our industry group review below. Freightcar Leasing issues are showing attractive technical action at the present tim with General American Transportation (47), Union Tank Car (41) and North American Car ( 36) all having patterns which would justify purchase on dips. Glass issues have, in most cases, reached upside objectives, although a long-term potential of 114 is still readable in the price pattern of Owens Illinois ( 71 ). Most stocks in the Insurance field are either recently listed so it is impossible to determine price projections for most of the i s . H))wever, relative actio continues well above average and shows no rated as holds at the present time. I;yr! 0 m to would have to be Liquors, in general, appear attractive, D' ers Seagram ( 44) with an upside objective of 60. American n interesting potential base pat- ',. ….igher Us aIL exception to the general and should be switched. . The Machinery a number of sub-categories. Machine Tool issues d r in the latter part of 1967 and early 1968 and have, recently, recover t t i sses. We suspect a process of reba sing is under way, but it may be prem 0 aggreSSive purchases at this time. A number of Heavy Machinery issues app r a ctive, notably Caterpillar Tractor (48 ), with a long-term ob- jective of 80, and Inge Rand ( 49 ) with a target of 80-100. The Oil Well Equipment stocks have consiste y shown above-average relative action. We suspect that Dresser In- dustries ( 37), behind the market with an upside potential of 64, is the most interesting new purchase at present. The long-term relative actlOn of the Non-Ferrous Metal group has been desultory, but some signs of improvement, especially in the Copper stocks, can be noted, and these issues appear attractive for income and longer-term appreciation. Anaconda (53) and Kennecott (47 ) both have price targets in the 70' s. Patterns in the Motion Picture group are mixed, but relative strength is good. The Oil industry generally presents one of the most interesting technical pictures in existence at the moment. Interest in the group has picked up sharply in the past six months, ,baseEl on a number of factors including theil' relative cheapness, the good earnings outlook for 1969-1970, and the recent discoveries on the north slope of Alaska. Attractive opportu- nities abound in the industry and representative issues should at the moment constitute an important part of most investment portfoliOS. Standard on of New Jersey ( 80), Standard Oil of California (70 ), Royal Dutch ( 57), Phillips Petroleum ( 67), Continental Oil ( 75 ), Superior Oil of Nevada (194), .and the more speculative Pacific Petroleum ( 21), all appear attractive at the present time. The Paper group, 'long a favorite of this letter for long-term investment, began to show improvmg relative action in the early part of 1968, and for most of this year the stock in the group have been just about the best acting major group on the Board. Most issues have dropped off moderately from all-time highs scored a few weeks ago, and we regard further weakness an attractive opportunity for purchase of such stocks as Union Camp ( 55), West Virginia Pulp &. Paper ( 32), International Paper (36 ) and Great Northern Paper ( 68 ). Dow-Jones Ind. 958.98 Dow-Jones Rails 266.76 ANTHONY W. TABELL WALSTON & CO. INC.

W—a-lsItocn.&—C-o-. FI L e. Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER. 100 OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER November 15, 1968 Recent market strength has been impressive and consistent with the theory of a ma- jor uptrend's being in effect. Advances exceeded declines on all four trading days of last week and the major averages closed the week at or around new highs for the move,cancelling out the entire pre-election decline. Yet there remains the lingering suspicion that the modest October-November correct ion, encompassing only eight trading days and retracing less than a third of the Ill-point August-October move in the Dow, is insufficient fully to correct the previous rise. The re- cent rally, furthermore, began from levels which, under no circumstance, could be called 'Oversold- Under th-e-se' conditio'ns ssilJility'of -riea'r-term'weakne1!rCannot be'overlooke although it must be emphasized that such weakness would constitute nothing more than a tem porary interruption of a now-clear-cut major uptrend. We are concluding herewith our re- view, started four weeks ago, of major industry groups. , Relative strength of the Publishing group has generally been below average, and we would prefer to avoid commitments in this industry. Patterns building up in the Railroad industry are generally attractive, and although no immediate moves are indicated, purchase on weakness for patient holding could work out well. Penn-Central (62) has returned to a support level in the low 60' s, and such carriers as Seaboard Coast Line (49), Southern Railway (65), Chesapeake & Ohio (72) and Nor1hern Pacific (57), appear to be completing attractive long-term base patterns. Retailing issues, benefiting from the resurgence in consumer spending, generally present strong patterns. In the department store group, Stores (36) has recently moved back again to the support at around th 5 1 stock has a longer term objective of 62. May (44) with a long-term 7, is 0 interesting. In the mail order group, Sears (69) might be subject to nea – m we ss to the mid-60's, but appears attractive for purchase on dips. s its sharp rise, still has a higher long-term objective and should bell . ou ains show mixed patterns, but Vornado (26) appears to have – 0 .- ct-c orfhe past J. ;in the variety-chain group, , Rubber stocks are ano . e..ctMn a technical pOint of view. . . t major groups on an intermediate-ter basjs, a!l most of th e – e issues constitute attractive purchase candidates. Firestone (61) ha 0 I s gest pattern with a long-term objective of 86 followed by higher levels. Go r 6 's also attractive, but Goodrich (44) appears to be lagging behind the rest of the i d Y and should probably be switched into either of the two above i-s,sues. Armstrong R r (58) is an interesting smaller special situation. . . Action of the major Soft Drink companies, Coca Cola (71) and Pepsico (49) is poor, and they probably. should be considered as switch candidates. stocks present an interesting picture. They have lagged the market for almost a decade, but the potential bases are huge and preliminary signs of a relative strength up- turn are apparent. We are inclined to consider the group, at worst, interesting for the pa- tient investor, arid possibly of the interest of the more aggressive investor as well. , Textile stocks completed a needed' correction at their lows of last Summer and appea on their' way to higher objectives which are, almost uniformly, above current levels. We re- gard ,Burlington (49) and American Enka (53) as especially attractive. Althpugh action will probbly be slQW, iPe Tobaccos higler !el..2vJ'! the lo.ng. term and, wit,h a minimum of downside risk, should be interesting for the income- oriented holder. ' , . Utility stocks present an extremely interesting picture at the present time. The Dow- Jones Utility has held, since early July, in a narrow range between 130 and 132. This range was penetrated early this week by a sharp upward move which reached an intra- day high of-140. 47 on Friday.' This is especially interesting in view of the longer-term pattern which indicates that a base has been in the process of formation in the 120-140 range ever since the 1966 lows. Decisive upside penetration of 140 for this index would indicate an upside target of 163-174. Individual stocks also have substantial bases and a few have begun to break out of these on the upside. We consider the utility stocks to have above-average at this juncture. !Jow-Jones'Ind. 965.88 Dow-Jones Rails ' 271. 83 ANTHONY W. TABELL WALSTON & CO. INC. —.; '. Thl.- market letter is published for your conve-nlenee And InformAtion and IS not an offer to sell or R solicitation to buy an), IleCUrltiea Iilscuea.ed The In I 0;formation wal obtained from aourCH we believe to be reliable. but we do not IlUArantee its Olecurac)', Wal.ton &\; Co., Inc. and Ita ofl'lcen, dlr'edor. C!!IIployeel may have an interest in or pUl'chue and &ell the aeeurltlea referred to herein.

;-; Le 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 November 22, 1968 For the past month, with a short digression for the discussion of election prospects, this letter has devoted itself to consideration of the outlook for individual industry groups. It was, actually, a good period to pick for such a discussion. When the review began, on Oct 0- ber 18th, the Dow-Jones Industrials closed at 967.49 vs, Friday's close of 967.06, so that, presumably, individual stock selection, rather than the market, has been the most importan investment factor over the period. Nonetheless, it appears wise at this juncture to back up and once more to take a look at the prospects for the overall equity market climate. The events which are central to any technical discussion of today's stock market began it..seemBtO-llS, soe3 .lL2-.mqnths .ago—-1o….bepre dse ,onAugust9th.. t day, the 0-, Jones Industrial Average posted an intra-day low of 863. 33, over 100 points below its pres- ent level. The Standard & Poor's 500 was at 96, 11 vs. the Friday close of 106. 30. The next 40 trading days were spent in a rather dynamic rally with the Dow advancing to an intra day peak of 974.27 and the Standard & Poor's to 105.78. This was in turn f0110wed by an 8- day decline to low figures of 936.54 and 101. 85 respectively. Subsequently, in the past 11 trading days an advance has ensued bringing the Dow back to its former high and the Standar & Poor's 500 to a level somewhat above its peak of late October. It is rather easy, there- fore, to divide the market, since last August, into three separate phases — the first, a long and powerful rally, the second a minor decline, and the third a rally which has wiped out that decline entirely. It is interesting to try to relate these three phases to world news at the time they were taking place. During the first phase, for example, the were (1) the im- proving prospect for a Vietnam settlement, and (2) the inc as 'l\W'ola ility of the election of Mr. Nixon, By the end of October, Mr. HumPhre8ic e s ng S gth in the polls was becoming apparent, and the market thus declined, r ng is' a-day low the day before the election. The news surrounding the thirdlW,ei n e interesting in light of the ability of the market to rally in the face of a ti . c Vietnam outlook and a rather – -1 ;–arguablethat-ba-sed-orr-the-experien of the past two weeks, other and the international money pic- ture as the subject of investor p 0 s portant factor is the 40-day August-October rally. In it,. the Dow-Jo I v ge broke decisively out of the trading range which had contained it since th I dIe of 1967. As we have stated before, the upside implications of this base plamly pOI t t nsiderably higher levels, i. e., 1300 over the long term and a possible nearer-term to be reached, say, in the first half of 1969. This long-term pic- ture, therefore, dictates for the majority of investors, it seems to us, a rather fully in- vested position with concentration on the unexploited groups which have been discussed in this space previously. From a shorter-term point of view, however, attention must shift from the August- October rally fo the pre-election decline and the technician must ask himself whether this modest drop, on the order of 3 1/2, was sufficient to correct the almost 13 advance whic preceded it. In consideration of this question, there are a number of factors to be taken into account, including the extent of the oversold position at the November low, and the size of the base subsequently formed. It is, in this case, necessary to note that the market had not, by most measurements, reached an oversold position three weeks ago and that the base formed u'sat that level was small. It is these factors that leaif to some doubt about the market's . ability to continue a short-term rally from these levels without undergomg a further correct ionary process of some sort. It is necessary to emphasize again that the truly relevant factor at this time is the long-term outlook and not the questionable short-term prospect which is useful in this instance only as a rough guide to timing. We thmk that even during a short-term decline in- dividual issues could out-perform the market to a sufficient degree to make their ,purchase at current levels profitable. Any weakness which might take place, therefore, must be re- garded as a purchase opportunity. Dow-Jones Ind. 967. 06 Dow-Jones Rails 272.46 ANTHONY W. TABELL WALSTON & CO. INC. AWTamb This market letter I,ll pubhshed for your conv.emence and InformAtion nnd IS not an offel to sell or 0\ soitcltation to buy an' securitles ..hscussed. The m. formation wall obtfuned from sources we believe to be reliable. but we d(t not lrunrantee Its nccurncy WalBton & Co. Inc And Its officers, directors or emDloyees may have an mterest in or purchase and sell the referred to heren'. .I

Walston &- Co. —-Inc —- M.mb…. N.w York Stock Exchange and Principal Stock and Commodity Exchange. OVER 100 OffiCES COAST TO COAST AND OVERSEAS TABElL'S. ,RECOM.MENDED LIST November 25, 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 I the stock has I! n ot I 'tye tbrok en Io ut of its 'base formation. 1d – . I . I1 QUALITY & LONG TERM GROWTH 1 …,….- ..ClosgQual- 11/22/68 ity Obj. port Close Qual- Ullside -,t1/2276a-iry- pSourPT- Alum. CoAmer. 76 1/4 Amerada 941/2 Amer.T & T 57 3/4 Borden Co 35 Caterpillar T 46 1/8 Colgate Palm. 51 Cont'lOil 78 1/8 DelMonte 343/4 Fed.Dept.S 34 7/8 B A A A A AA A A 110 112-140 67-80 48-60 59-80 58 91-130 60 50-62 72-66 82-74 50-46 30-28 44-37 47-42 70-65 30 34-29 Goodyear T 58 1/2 Inti. Paper 38 1/2 Kellogg Co 42 Natl Dairy 433/4 Parke Davis 31 1/2 Phillips P 65 3/4 Radio Corp 47 1/8 Reynolds Tob. 405/8 Royal Dutch 52 3/4 U. S. Gypsum 861/4 A AA A A A AA A A- 82 48-82 70 56-66 44-50 76-120 76-98 74-124 79 104 44-42 34-32 38-34 38 26 63-56 45 38 44 80 Adams Millis 21 1/2 B PRICE APPRECIATION 17 Koppers Co. 44 Air ReductiCl1 31 1/4 A- 42-55 28 McNeil Corp.51 3/4 Amer.Baker. 303/8 B 43-62 26 Medusa P. C. 435/8 ,Amer….Ma;h.F 27 . Arvin Ind. 41 3/r B 51 38 Olin Math. 42 BulovaWatch 48 7/8 B 50- 68 34 Republic St. 45 Burlington Ind. 50 B 76 46-44 Rexall Drug 42 Chic.M'us. Inst.31 1/4 B 40-65 29-25 Reynolds Met. 44 1/2 Commonw'th Oil 291/2 – 35-46 25 Robt. Cont. 62 1/2 Copperweld St. 24 1/2 B 36-54 24-22 Seaboard C.L. 49 1/2 Diners Club 52 1/4 B 72 48 Sharon Steel 50 1/8 Dresser Ind. 38 B 57-64 35-33 Stokely V. C. 37 5/8 First Chart.F. 39 48-80 33-30 Union Camp55 1/8 Gt. No.Paper 74 1/2 B 102 60 Vornado 28 B 57-62 35 B 63 44 A- 54 38 .2.7 ……12 B 60 35 B 70-106 40 A- 52-78 36 B 53-94 34 B 70-104 50 B 58-84 44-41 B 70 42 B 64-96 34 B 74-92 46 32-45 20 SPECULATIVE PRICE APPRECIATION Allied Super. 19 1/8 B 34 17 Macke Co 28 5/8 B 41 25 Amer.Motors 15 1/8 B 24-32 13 Microwave 31 1/2 B 48 28 Camp. Chib. 8 5/8 16 8 Pac. Pete 21 5/8 B 30-50 19-16 Chris-Craft 38 1/8 B 46-68 32 Penn-Cent. 62 1/4 B- 104 54 Elec. Special. 28 B 72 26 Technicolor 45 B 50-58 32 Gibraltar Fin. 30 1/2 UMC Ind. 25 1/8 B 40-58 20-18 Home Oil A 36 1/8 B 39 32-29 Victoreen 15 1/8 C 26 14 In registration. Anthony W. Tabell Walston & Co. Inc. I This Bulletw 1'1 IIUllhshed fOl your 110. Inform.ltlOn 11.0,1 I.., not .In otTt'r to …. U'l obtained from .,nUI(',-., \10,- t…lv, 10 I.. lelmlolc hut …. l df) lint Ils ,\('(Ula,'\ havc ,In Intl,.rcs\ III Ot Iml (hH't' and th. I det Ic,1 In ht .'In or a 5011l,'11llt.100 to huy A.lly s('(uralll-'S discussed The )nfOlmnilOn W.IL\on & Co, Inc lind Its officer.'!, (H mlly WN- 916 1/ I