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 July 18, 1969 Although half of the week was spent in a rallying phase, the market gave little evidence that it had reversed the long slide that has characterized the year to date. The decline com- tinued unabated on Monday and early Tuesday with an intra-day low of 832.79 being reached on the Dow. A rally began at mid-day Tuesday, and continued through mid-day on Thursday with an intra-day high of 863. 04 being reached, but late selling pared most of the earlier gains and on Friday most popular averages slid back to levels just slightly above the lows posted at the start of the week. The present decline on a closing basis has brought the Dow down some 14.620/0 over 149 trading days, and the Standard & Poor's 500-Composite down 12.750/0 over a period of 151 trading days. It may perhaps be worthwhile to try to devote a bit of effort to setting these declines in historical perspective. If we define a major market downswing as one extending 100/0 or more, there have been, in terms of the S&P, 58 such downswings from 1928 to date, including the present one. Of the 57 previous drops, 50 have been greater than the present decline to date In other words, on the average, a worse decline than the present case has occurred a little bit less than twice a year The present drop, therefore, cal. hardly be characterized as a unique historical phenomenon. The following table shows the 18 declines of 100/0 or more that have taken place since 1942. The reasons for beginning the list at this point, incidentally, are something more ar- bitrary The experience of the 1930's is of little use to us in this particular case since un- failingly during that period market drops were shorter and steeper than the present one, having an average length of 34 days, with no decline than 96 days without a 100/0 recovery The length of the present drop places it the context of the post-1942 pattern Date of High Date of Low S&P 500-Decline s Aver. Daily Decline Sept 1941 July 1943 Feb. 1946 May 1946 Feb. 1947 July 1947 June 1948 June 1950 Jan. 1953 Sept. 1955 Aug. 1956 July 1957 Jan. 1960 Dec. 1961 Aug. 1962 Feb. 1966 Sept. 1967 Nov. 1968 April 1942 Nov. 1943 Feb. 1946 Oct. 1946 – 28 65 I & . \\'!V 13 5W cOo 17 i' 93 Mar 1 – .3 – 4 81 182 June 20 57 281 July 19 – 14 02 24 Sept. 195 -14.82 176 Oct. 19 -10.59 12 Feb. 1957 – 14. 78 132 Oct. 1957 -20.66 70 Sept. 1960 -13.39 205 June 1962 -27.97 135 Oct. 1962 -10.52 43 Oct. 1966 -22.18 167 March 1968 -10.11 110 July 1969 (to date) -12.75 151 .157 .115 .597 .287 .190 .078 073 .584 .084 .882 .112 .295 .065 .207 .245 .133 .091 .084 As the table quite clearly shows, the present decline has so far been one of the smallest in recent market history. This, of course, affords little comfort since there is no assurance that it cannot continue further. What is more interesting, however, is that the 151 trading days so far have carried this dip longer in time than all but five of the previous drops, and the decline of 1948-49 is the only one which was significantly longer than the present one to date. The final column, which shows the average daily percentage decline, is also of interes The steepness of the recent drop has been entirely unlike that of such major bear markets as 1946,1957, 1962 or 1966. So far, it has been most reminiscent of such de- clines as 1947-48, 1953 or 1960. Again, it must be reiter& ed that none of the above constitutes evidence that the decline may not continue further over the near term. On an historical basis, however, the case again an extreme drop from these levels, or one continumg over an extended period of time, is a fairly strong one. DOw Ihd 5'; '92- -. , Dow-Jones Rails 201. 52 ANTHONY W. TABELL … ,-r.'. … …- WALSTON & CO. INC. 'ThiR mllrket (Otter lS Jluhhahen for conVenLl'nce '\nd Illformatlon and 1'0 not an offer to sellar .1 …ohltatlOn to hU) .my dL!lCus.sed The In- ormatlOn WliS obts\lned rom sOUl'ct-q we bchl'\'(' to lie lchahle, but v,e 11o nut guarRntee Its accurlcy \\'aJston 8. Co, (ne. and Its officels, directors or AWTambma.y have an mterest In or 11Ul'chale Rnd '1ell the …..cuntltS refl.'rred to herem WNsol a., , .,, ,&…..

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 July – —g– 25, 1969 F! It is absolutely impossible to say anything encouraging about the stock market based upon the action of last week. The popular averages declined on all five days of the week and wound up at new 1969 lows, the Dow reaching an intra-day figure of 814. The fact that volum continued to recede provided scant encouragement. Volume also dried up during the 1966 break, and this did not prevent that slide from dragging on to its inexorable conclusion. In short, the obvious direction of the market continues downward. The job of the stock market technician during a decline is twofold. He must, first, try to pinpoint downside objectives and, secondly, try to identify a turn or a change in momentu when it comes. As, indicated … fore, – no -question of dissecting a rebound to see–if it constituted a possible turning pOint. -, When a rebound does occur, we will happily attempt this sort of analysis. At the moment, we are restricted to making estimates as to how low the decline may carry. The following table lists six popular market averages and indicates the 1966 low, the 1968 low, the present price, a conservative downside projection, and the lowest readable downside projection in each case. 1966 Low 1968 Low Current First Downside Obj. Lowest Downside Obj. DJ Ind. 735 817 818 820 730 DJ Rails 182 213 196 196 172 DJ Util. 119 120 118 116 S&P-500 73 88 92 92 87 NYSE Ind. ASE Ind 39 12 49 51 21 26 51 – 49 \0i 0 24 A few comments are interesting. First of alllJJf Ii ver s had, as of Friday's close, just about reached their more conservative pr' ions. We have, in other words, reached an area from which it usi'tip'to ect a rally, although there is no evidence as yet that such a rally ond . is interesting to note the dis- -, parity iff – – -e ' .-T .- – ore narrowly constructeo'Dow-Aver;- ages have performed broadly based indices so far. The Dow Industrials, for exa pIe, v t the way to thelr 1968 low and, indeed, breach ed that on an intra-da b i a e Dow Rails have performed even worse, having sharply broken th 1 lw-and ing returned almost to thelr lows of 1966. As for the Utilities, 1966 and 1 s the same and that Index has returned again to this general 500-Stock Index and the NYSE Index are measurably above their 1968 lows, as is more speculahve and volatile ASE Index. Of interest also is the apparent greater risk on the Dow-Jones Industrials and Rails compared to the more broadly based indices. The worst possible objective readable on the S&P-500 is 87, or a decline of some 5 from current levels, whereas a 10 decline in the Dow can be projected. It is impossible to project either the S&P or the NYSE indices back to their 1966 lows, whereas the possible reading on the Dow indicates that this move might be retraced. In short, the more broadly based averages indicate a conslderably more bullish picture. I Ii hc t We are inclined to go along with the picture indicated by the S&P and NYSE indexes and to regard the return of the Dow to its 1966 lows as being an overly pessimistic indicatio It will, therefore, be worthwhlle to watch the future action of these two widely followed indi- ces fairly closely. Any move of 'these indices toward the objectives indicated abOve should provide an interesting long range opportunity. It is also worth noting that time is on the side of the holder of common stocks at the moment. As pointed out in last week's letter, the present drop has already consumed more time than the 1962 decline and in another week will have equalled 1966 in duration. Likewise on the side of the investor is intrinsic value. At week's end, the Dow was selling at about the same multiple of earnings it had reached at the lows of 1966, which in turn was a nine-year record low. The stage, therefore, is set. Downside obJectives are beginning to be reached, stocks are at low levels, and the timing is about right. However, any evidence of a change in the downside momentum of today' s stock market is still waiting, as of this writing, in the wings. Dow-Jones Ind. 818.06 Dow-Jones Rails 196.86 ANTHONY W. TABELL WALSTON & CO. INC. ThiS mnrket litter IS IJuLhc;ht.'d for lour conVl.'flll.'nce nnd mform,ltlOn nnd 1; not lUi ofl''-''I to S('\l 01 n ;,()hut.l.tlOn to bu Rny M.'t'untlL'S dlscued The In- fOlmntlOn W,\S obluned flom SOUlet''! I.' h('l1l'v,' to ht lelllll)le hut Wt' do nut Its nrcurnn, \\',llstOlI li. Co, 1m', ,lIul lt'l offi('cl'I. dlll'Ctors or cmploy('t''1 may havc an mtelCAt In 01 pUI,-hase m,d !'cll tht' bt'LUlltlt'S I ('f1 led 10 ht'lcm WN.301

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 August 1, 1969 We concluded last week's edition of this letter by saying – The stage, therefore, 1S set. Downside objectives are beginning to be reached, stocks are at low levels, and the timing is about right. However, any evidence of a change in the downside momentum of today' stock market is still waiting, as of this writing, in the wings. This week, the evidence began to emerge from the wings. The week began in the dreary fashion to which investors have become accustomed. The Dow chalked up an almost 12-point loss on Monday, and, after a feeble rally attempt Tlesday morning, dropped another 4 points by the close. This decline continued in Wednes- day's early morning trading with the Dow reaching an intra-day low at mid-week at 788.07. —Noontime''OriWednesday,liowever, marKedtlie turn. 1'1ieDow erased a 9-poiiit-lossto c1ose with a small gain, and extended this with advances of over 11 points on both of the final two trading days of the week. The total advance from low to high was 55 points in two and one- half trading days. Is this, then, conclusive evidence that the downtrend has been reversed The answer must be no —for the reasonthatlhere has simply not been enough time for such evidence.to be conclusive. What can be said, however, is that the action of the past two and one-half days is totally consistent with the theory that a major bottom has been seen. Let us enumerate some of the favorable features of the rally. First of all, market breadth. On both Thursday and Friday more than 1100 stocks, better than 70 of the total traded, advanced. (The 1183 advancing issues on Friday constituted the highest total in the history of the Stock Exchange). This type of unusual occurred on each initial rally following each major low in the stock market 0 years. It is paren- thetically only the second time in 13 years that the a' fi,(stocks has been this high for two consecutive days — additlOnal evidence e dee ersold condition that existed at the mid-week lows. Volume, in ,w a' ctory. It extended to over 15 million shares on Wednesday and Friday id ove is t. tho million on Thursday. This statisti sents a satisfactory rise Despite all this, a we' i , of volume on the last leg down. is not totally conclusive, and only time will provide confi m area has been reached. It is worth enumerating some of the things – or to provide such evidence over the coming period. We would watch, firs 1, e a conclusive penetration of the downtrend channel which has characterized the ar since May. This could take place were the advance to continue next week or, as a rna of fact, if the market were simply to hold its gains over the comin few tradtng sessions. Further 1mportant evidence of a bottom having taken place would be provided by a sharply reduced number of stocks making new lows. It would be highly en- couraging if the number of daily new lows were to drop off to around the 50 level and stay there for a period of time. This would confirm that almost all stocks had exhausted their downside momentum on the recent decline. Another encouraging factor over the next week or two would be a buildup in the level of odd-lot short sales, a number which generally in- creases shortly after major market bottoms. A final evidence would be provided by the ability of our short-term breadth/volume figures to reach an historical overbought condition. Since most of these are based on 10-day totals, such action could hardly occur before mid- August, at the Jatest. – -It iswell to remember,- also, downswing were to have been made as of last Wednesday, that an immediate advance from these levels would be unlikely. The most bullish near-term prognosis that it is possible to come up with 1S continue backing and filltng around the present area in order to build a base for a further market ad- vance. When and if the evidence continues to pile up that the decline has been completed, there will be plenty of time to assess the prospects for the future. Dow-Jones Ind. 826. 59 Dow-Jones Rails 199.31 ANTHONY W. TABELL WALSTON & CO. INC. AWTamb Thi8 market l(!tter IS pubhshed for )'our convenHmce find InformatIOn And 1' not .\11 ofTet to 01 '1ohcltatJon to buy 1m …..'('untles lhscussed The In. formation WA'I obtamed from sources Vol' heh'\'(, to be rehable hut we do not gUAr.-mtec Its acc-ural') \Valslon & Co. Inc and Its officers. dIrectors or employees may have an mterest m or Ilunhllse and sell the refClrC(t to

W—-a–l–s-tIoncn—&—C–o. Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVErt 100 OFFICES COAST TO COAST AND OVERSEAS — ! TABEll'S MARKET lETTER Q. Is this a technical rally within a bear market Q. Is this a new bull market A. No. Q. Have the lows been seen A. Maybe. August 8, 1969 A. No. The above represent the most probable answers to the three questions most commonly asked about today's stock market, and they derive from what, historically, has been normal technical action following a severe decline. Following such a decline, a base must be form- ed for a new advance and this process takes time — generally up to six months. Therefore, the question about a new bull market can be decidedly answered in the negative. The initial stage of such abase formation isgenerallya sellingcltmax of whii'hthe action of a week ag is typical. Such action is much more characteristic of the beginning of a baElEithan a in an ongoing decline. Thus the no answer to the first question.As to whether the ultimate lows have been reached, it is necessarily to remain equivocal. A base has always involved some sort of a test of the climax lows. At recent bottoms, i. e., 1962 and 1966, these lows have been penetrated. In previous bottoms, such as 1957 and 1960, they were not. The ex- istence of lower downsk!et0bJeltt-ilveEmIremIlDshindtces makes a penetration of the former low,s at least a possibility. ' In such an environment, the obvious course is to purchase stocks on weakness and to refuse to chase rallies. Among the issues in our Recommended List which would be attract- ive in periods of decline are the following. VORNADO (19 1/2).Things are looking up for this important food retailer and discount chain operator. Although second quarter results will West Coast stores and the phasing out of ten Ummart unit. H strike at some all Vornado divisions now are in the black, management is OPti!jiC 0 es or the fiscal year ending next January 31. Although record sales and n come i ticipated, per share re- sults are estimated at between 1. 90 and 1965. Industry analysts are optimistic over som at w the per share record of sult proaching the 2.20 a share level –F-rom-the -technical-view, VNO has upSIde price objectives KYSOR INDUSTRIAL (26 ) . rt in the-l7—1-5a-rea.–Longer–term— i l \li&3Jl–J6i II 0 range. e ec&;p'r sharp market decline worked its effect on KZ along with most liste s I t ontinuing impressive earnings trend. Results for the fiscal year en ere 1. 62 a share, up slightly from 1. 57 for the pre- vious twelve months. eve, anagement recently forecast sharply higher earmngs for the three months to en A st 31, projecting 43; a share, vs. 25; for the similar period a year earlier. For the fiscal year ending next May 31, management is estimating a rec- ord 2.10. Sales are expected to advance to near 66 million, from the 56.8 million of fiscal 1969. Downside support in the 25-22 area has been augmented by recent backing and filling action. ALLIED SUPERMARKETS (143/8). Although competitive pressures remain evident in some of ASU' s marketing areas, modest improvement has been noted in Detroit, an area highly important to this supermarket chain. Results for the fiscal year ended June 30, 1969, are likely to see a decline to around the 40; a share level, from 84; in fiscal 1968. These results obscure the progress being made with the K-Mart division, which is well in the blac with profitability steadily increaSing. There now are 190 K-Marts and another 65 are sched- uled to be added in fiscal 1970. As a result of this, fiscal 1970 is expected to be much better for ASU with'sales likely to expand well above the-1- billion' mark. Technically, ASU has – support on the downside around the 10 level. PARKE DAVIS (325/8) .. One of the few stocks to have bucked the market downtrend this year, PDC continues to bask in the light of sigmficant developments. The Chloromyeetin problem is becoming increasingly less important to overall operations and for ,the current year should account for only 12 of total sales. At the same time other products have been increasing their market penetration. Three new products could prove important to future operations (1) a rubella vaccine (German measles), (2) improved influenza vaccine and (3) an anesthetic that does not affect blood pressure or respiration rates. These all should be introduced in the near future. Earnings are benefiting from a vigorous cost control program and for the 1969 year, net may reach 1. 55 a share, vs. 1. 25 last year. Considerable down side support has been created by recent stock activity in the 31-28 area and the initial up- side objective remains in the mid-40's. Dow-Jones Ind. 824.46 f I – ANTHONY W. W. LAUBSCHE Dow-.ToneR Rails 197.81 WALSTON & CO. INC. ThiS maTket letter is JJU1JJI;hcd for your alLd InfOllnatlOn Itnd IS not ,In ofT., to ;( UI .1 ,olullat,OlI lo bu\ ,ul) ,h;(Utf'd Tho.' 111- formation WII'I obtain cd from we hdH'V to hc rell,llll.,. hut v. L do lIot 1-.'1.111 lis ,('LUI,\( W.t11.011 &. Co. 1m. find It ufficel, .hrettor… 01 employees n'lll.y have nn Jnterest In or purcha.c .\lId sell the W(UIJtJC, rt,rtrlcd to heJl'lll WN.30t

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 August 15, 1969 Those who bring sunshine to the lives of others cannot keep it from themselves. …. Barri It would appear from the market action of recent days that at least a temporary testing of the recent lows around the 800 DJ level has been successful. This should give way to a rally of indeterminate proportions on a near-term basis. Overhead supply is evident around 830 and 850-860 levels. This does not rule out the possibility of another test later on. In either event, it would seem likely that the market will be engaged in a backing and filling operation for several months ahead, offering investors ample opportumty to add to holdings. One current opportunity is described below. – ',11!;c – -….1-k-,j Current Price Current Dividend Current Yield Long Term Debt Common Stock Sales-1968 Sales-1969-E. Earn. Per Sh. -1968 Earn. Per Sh. -1969-E Mkt. Range 1968-69 36 7/8 0.10 0.3 16,000,000 3,936,348 shs.';' 16 400 000 22' 000' 000 1. 50 2.20 54 – 35 3/4 The merger between MESA PETROLEUM COMPANY and Hugoton Production is expected to result in an above-average performance with- in the oil and gas mdustry in coming years. The combination of Mesa's young and aggressive management with the stable earning power and large assets of Hugoton strongly suggest a. favor able outcome to this particular marriage contract. Mesa is a young company, having been form ed as recently as 1964, with the corporate object (Fully diluted basis) lve to an ev and geophysical f oil and gas prop- erties, acquire leases and other interests in such , d t termine the presence or absence of commerCial values by drilling wells ol'1\tfro/)se pr ties. The results of this objective have been favorable. The ll9S/be lmpressive with profit growth averagmg in excess of 25 annually .y – — -For'thefiscal'ye-ar enden-i\-prii' 1 evenues-reached-a-record'high-of – – 16,404,476, while net from 5.8 million the previous twelve months. This comes do to . e;Vs. 1. 48 the previous year. These results in- clude the merger on r 1 ugoton Production on a pooling of interest basis. The company has switched from an April 30th fiscal year to a calen- dar year basis. On t si or the six months ended June 30,1969, net income totaled 3, 3 million, equal to share, vs. 2. 9 million, or 74; a share on somewhat more shar outstanding for the fi six months of 1968. Gross revenues for the first half of 1969 de- clined slightly from the same period a year earlier. For the twelve months ending Decem- ber 31,1969, record earnings of around 2.20 a share are estimated on a fully diluted basis of 3,936,348 shares. Fully diluted basls assumes complete conversion of all outstanding convertible debentures and preferred stocks. The 5 1/2 convertible debentures are conver ible into common stock at the rate of 43.31 prinCipal amount of debenture per share. If any reason can be given for recent weakness in MSA, we would ascribe to the idea tha Hugoton holders, which received vrSA shares as a result of the merger, were more income oriented and thus did not care to retain MSA shares due to the low yield. The merged company now controls huge reserves of natural gas located in Kansas.Sinc to date lit has limited its sales of natural gas to it has aVOided coming under control of the Federal Power Commission. However, it is anticipated that sales to other areas will be made .in futur.e.With,drilling and of the picture,due-to the merger, the effective tax rate is expected to be lower. Management recently noted the expanding demand for gas throughout the nation and the critical shortage of gas supply'for interstate carriers and voiced an optimistic note for in- dependent producers with uncommitted reserves. Mesa has more than 1/2 trillion cubic feet of undedicated gas reserves and it anticipates being able to sell this gas under highly de- sirable contractual terms within the year. Technically, the recent decline has brought MSA down into a strong support zone betwee 38 and 34, going a long way toward lowering downslde risk. On the upside, we continue to hoI to an mitial price objective in the mid-to-upper 40' s, with a higher reading on a longer-term basis at 60 to 73. Mesa, already on tile Speculative Price Appreciation section of our Recom mended List, again is recommended for purchase at current market. ', .. Ind. 820.88 … ,. Dow-Jones Rails 198.12 TABELL-HARRY W. LAUBSCHER WALSTON & CO. INC. ThIEl marl..et 1,ttL! 1' puhh&hcd fnJ lonYl'l11L'rlre and lur'm.lb .llId I nt ,II /f,, to (11.1 …,,11 11M,,, to \'Il\' fmmntlon …..18 ollRlnttl from '1tll 1'lu,, to hl 1,II.\I,lt. I,ut w,' ,In lIlt J,UIl,\lIlt. ,I.. ,'U, l\ \\'Itoll Co. Jilt' employees may have an Interetlt In )r I,urrh,\l' ,Iml bell thl' 'UIII … 111'111,.,110 hIlll HWLamb 'It… , U I I ! I I ' , The 1/1 I It… oflhI, dlrttort 01 WN'ot I ,L ,d ,IU,

Walston &- Co. Inc –…;.– Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAST TO COAST AND OVERSEAS lABELL'S MARKET LETTER August 22, 1969 The stock market extended its rebound from the oversold position of last July in the past week, turning in what must be characterized as a reasonably impressive performance. Solid advances were chalked up on Monday and Tuesday and after some consolidation at mid- week, the upswing continued in more restrained fashion with the Dow-Jones Industrials reaching a high of..8d3.. July 30th intra-day low of 788. 07. It has been something better than three weeks, now, since that low was made, and as the growl of the bear recedes further into the distance, it is worthwhile to stand back and try to put the current stock market into perspective. The benchmarks are, at the mo- ment, actually rather clear–and;-if we assume by-tbe which characterized the post-war period, a few fairly obvious conclusions can be drawn as to the market's future. .. n The first and most obvious fact is that the action of the last week in July had all of the characteristics of a typical selling climax. More than 1100 Issues, 650/0 of the total number of issues traded, made new lows for the week, and this was followed by two days of a sharp rebound with 700/0 of issues traded advancing on July 31st and August 1st. Similar conditions have occurred at three, and only three, periods in the recent past — in October 1957, May of 1962 and August of 1966. All three of these periods will be recalled as times when the stock market was in the process of making major bottoms. However, lest joy become unconfined at this prospect, let us take a close look at the action of the market in each of these periods. The for each of the three previous bottoms, and for 1969 to date, the w'7rJdy a; '0 I dthe climax was recorded \'y the week in which 1957 1962 6 1969 Week DJIA New Week DJIA New k New Week DJIA Ended 10/25/57 9/;66 11/1/57 432 180 6/8/ 775 420 8/8/69 821 11/8/57 434 0 9/16/66 795 165 8/15/69 809 11/15/57 430 2 / 3 425 9/23/66 791 220 8/22/69 827 11/22/57 432 160 /6 5 620 9/30/66 772 480 11/29/57 435 100 10/7/66 744 780 12/6/57 447 100 12/13/57 438 205 12/20/57 426 325 New 189 238 N/A A few patterns are clearly noticeable. In all cases, a move to or through the initial low took place following the climax. In 1962 and 1966 new lows were posted on the average- in the first instance, four weeks later and 70/0 below the climax lows and, in the second, six weeks later and 30/0 lower. Comparable figures for the current market would be 745 and 778. In 1957, the old low was virtually equalled some eight weeks later. The figures for new lows, however, are interesting. In all three previous cases the number of weekly new lows at the second downward move was considerably less than it had been at the time of the climax. If history is followed in the present case, it would mean a large number of issues saw their lows for the year as of last month. – – – – — For the near term, then, caution should be the watchword. Experience indicates a strong likelihood of a downward move within the next two to six weeks which could bring thb Dow back to its former low and perhaps through that low by a fairly Significant amount. Such action would probably bring about widespread prophecies of gloom and doom. Experience indicates, however, that, Yver,e-new lows to hold below their 1969 peaks, it would probably constitute a major buying opportunity. Dow-Jones Ind. 837.25 Dow-Jones Rails 202.02 ANTHONY W. TABELL WALSTON & CO. INC. AWTamb This market letter is J)ubhshed for YOU) convemellce Rnd InformatIOn and not an offer to sell or II. soliCitation to bu) finy seuntle. dIscussed. The lfl- fonnatlan was obtained from source! we believe to he rehable. but we do not guarantee Its accuracy Walston & Co., Inc. and its officers, dlretorB or employees may have nn ',ntereet In or I)UfChA.Se and sell the .beCuntlCS referred to herem.

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 August 29, 1969 Sherlock Holmes buffs will no doubt recall from the story Silver Blaze Holmes' al- lusion to the curious incident of the dog in the nighttime. When Watson remonstrated that the dog did nothing in the nightttme, That, replied Holmes, was the curious incident. In the week ended August 1, 1969, 1102 issues on the New York Stock Exchange posted new 1969 lows. Other issues had posted such lows in the previous week or, in a few cases, in the weeks following. The names of these issues were duIy recorded in the fimmcial journal Considering the severity of the market decline of June-July, it is hardly surprising that a great many issues reached new low territory. The curious incident in this case is that, during the past two and one-half months, 211 NYSE common issues did not make new -1969 lows- This'is 'more 'thansimply'an'idle 'exerclse-Between'mid- May-and -the-end ,of;;-Jul-y- 1969, the Dow-Jones Industrials dropped almost 190 points, one of the steepest short-term declines on recent record. The ablity of an individual lssue to hold above its previously made low during this period is indicative of the sort of relative strength that cOuId put it among the leaders in the next upswing — especially if it continued to hold its low during any testing period that may occur in the next month or two, We have compiled below a listing of all those common issues on the NYSE which held above their previous lows during June, JuIy and August of this year. Included are a few stocks that made new lows by fractions and have since recovered substantially. We think it is a group of issues from which upcoming market leaders may well emerge. L' .Abbott Labs Campbell S Fed.Dept. S. Ky. Fried Ch. Papercraft Staley Mfg. AMP, Inc. Aguirre Co Carter Wal Ferro Corp Kresgej Caterpillar Fin. Feder. Kroger ron, Standard Brands 0 Std. Oil of Ohio Alberto CuI. Cent. So. W First Chart. LFC vtPe ,Allied Maint. Chesebrough First Nat. SLane Br. 1\ si . Sterling Drug Sunbeam Corp Amer. Enka Clark Equip Fla. E. C. Ry. Amer. Home P Clark Oil Food Fair -Amer.. Hosp. SCoca COla .Amer. Res. D Coca Cola B L t.. Amer. Steril. Comsat ssv()Amer. T&T e e St. MGIC Inv Ampex C Manpower P , Chas. lttston Co .'polaroici Proctor G. Pueblo S. M Purolator Quaker St. O. Surveyor Fund Texas Instrum. Texas Utilities Tishman Realty Todd Shipyards Trane Co Anchor Hock. Cont a raltar F Marlennan Read. Bates Transworld Fin. Armco Steel Corn.G a Gimbel Revco Tri-Continental C Armstrong C Crow ork Global M Maytag Revlon Uarco, Inc. Assoc. Dry G Culligan Grant,W.T. McDonald Rheingold Union Camp Atlantic Rich. Atlas Chern. Avery Prod Avon Prod Bard, Inc. Baxter Labs Beatrice F Beckman Inst Becton Dick Benguet Con Big 3 Ind Black Deck. Boise Cas Broad.Hale Bulova Watch Burndy Corp Burroughs Butler Shoe Calif. Finan Callahan Min Cunning. Dr Great W. Fin Mel. Shoe Cutler Ham Grolier Memorex Dart, Inc Dexter DiGiorgio Dictaphone Diebold Disney, W Dlst. Corp Dr. Pepper Dominick F East.Kodak Ebasco Ind. Harcourt B Merck Hewlett P. Midwest O. Holiday Inns Miles Lab Honeywell Minn. MM Host Intl Mobil Oil Hotel Corp Motorola Hughes & H. Narco S. Imperial C.' IBM Nat! Bis. IntI. Flav. F Natl Can IntI. Paper Natl Cash Eckerd Dr. IntI. T&T Natomas Elec. Mem. Japan Fund Norton S Emerson El. Jewel Cos. Outboard M Faberge Factor, M Fedders John. & John. PPG Ind Kauf. & Br. Pac. Light. Kellogg Pac. Pete Fed. Paper Kendall Co Pac. Tin Rich. Merr. Riegel Paper Robt. Cont. Robins, A. H. St. Regis P Schering Schaefer,FM Schlumberger Scott Paper Searle,.G. D. Sears Sher. Wms. Signode Skyline Smith Ind. S. Car. E&G Southern Co Sperry Hut. Squibb Beech. Unishops, Inc United Fin. U. S. Pipe & Fdry Valve Corp. Amer Varian Assoc. Walker, Hr. G. W. Walter, Jim Warner Lambert Webb, Del WescQ Fin… Western Union Whirlpool Wickes Corp Williams Bros. Woolworth Xerox Dow-Jones Ind. 836.72 Dow-Jones Rails 201. 18 . ' ANTHONY W. TABELL WALSTON & CO. INC. – ' – II

Walston &- Co. —–Inc –……;;….;;… Members New York Stock Exchange and Other Principal Stock and Commodity Exchange. OVER 100 OFFICES COAST TO COAST ANO OVERSEAS TABELL'S MARKET LETTER September 5, 1969 Stock market analysis will, we suspect, always remain as much an art as a science, and it is only this fact which prevents the analyst from striking a highly definite and highly positive note about today's stock market. Were market forecasting to be totally sCientific, there would be room for only one possible interpretation of the market action of the past month, for it has conformed with almost uncanny accuracy to a tried and true model — the bear market bottom, post-World War-II style. This scenario has repeated itself some four times now in the past quarter century and its pattern is, or should be, familiar. Bnefly, the sequence runs something like this – — — (1)-The'marketdeclines'sharp1y,-persIstently-and .over,a.protractedper.iodof.time,. with momentum building up toward the end, the final decline reaching a figure in the n'eighbo — hood of 200/0 in the popular averages. This occurred, as we all know, in 1957, 1962, 1966 and again in 1969. (2) A bottom takes place which is characterized by the large majority of issues post ing new lows, followed by a few days of sharp, dynamic reversal. This occurred on and following October 22, 1957, May 28, 1962 and August 29, 1966. It occurred again on July 29, 1969. '! (3) This initial bounce is followed by a period of relative firmness on fairly low. volume. This period lasted for four weeks in 1957, three weeks in 1966, and only a week in 1962. Through the high of September 2nd, such a period has lasted for a bit more than three weeks in the present instance. (4) The next phase has, invariably, been a a couple of week's duration. The weakness on the last thr ainto this pattern. Generally, the decline carrles to of no more than d thqs week certainly fits s ig t rough the previous low — although a great many stocks do not move to ows. (5) The next phase generally is a ha 11 covering most of the ground lost on the previous slide. – (6f This; 'in turn; neighborhood of two to three (7) By this time a bas s p of relative firmness . W !yo the takeoff rally of a new bull market begins Were the e time in Decembe , . I e st likely time sequence, this would occur some0 nClde with the usual year-end rally. As we sald, t r s ance of the current market to the model above is almost eerie. Since, however, rket forecasting is an art as well as a science we find ourselves looking for ways in w ch the market might surprise us by deviatmg from the expected model. One way, of course would be for the market slide to continue to much lower levels. It is, of course, possible and there are, indeed, a great many pessimistic forecasters abou assuring us that precisely this will be the case. We think, however, a number of factors argue against this sort of a surprise, among them the relatively low level of the market, or, at least, the quality portion of the list, based upon proven earning power, and, perhaps as importantly, the technical patterns of individual stocks. If the market were truly to pull a surprise at this stage, it would have to be in the opposite direction. In other words, at some point it would have to begin slowly rising, and instead of simply remaining firm and level, keep on going up. A case can be made for this sort of surprise precisely on the grounds that nobody that we areaware of, including, be honest, ourselves, really thinks that it is going to take place, and, when the market chooses to behave in a contrary fashion, lt generally does that which is least accommodating to the greatest number of people. We must confess,however, that we do not, at the moment, see the base patterns conducive to any sort of protracted and immediate market rise. We have to return, therefore, to our forecast model above under which prices are likely to be lower next week, about the same next month, and higher next year. While al- ways on the alert for surprises, we think it prudent to work on the a ssumption that the market in 1969 will conform to its tested behavior pattern. Dow-Jones Ind. 819.50 Dow-Jones Rails 197.88 ANTHONY W. TABELL WALSTON & CO. INC. AWT'amb ThIS market, iettcr IS Jlllhh1h''(j fm C'on\'cn1l1rl' ;lllf/ mrllm.lt!on .\lU( 1; not lUI offer to sel! or ,orm,ntlon \\I\s ohtmnt',1 from \\(' \)(11'\; to he 1(Ii.lhk hut we rio not Its n('cUrlH') mny have an mtel eat III or I'U! ,..ha,oJ .Uld bdl '.' Ullt!. lef!'! rc,1 to helclIl tQ hu &. Co, Jnt' '';'Ullt., Th !l1I0i Its offict'l'l dlrc(t e Ln. ' orH u WN301

– Wdlston &- Co. —–Inc —- Members New York Stock Exchange and Other Pr;nc;pal Stock and Commod;ty Exchange. OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER September 12, 1969 The Dow-Jones Industrial Average made its fourth assault at the 840 level this week and, for the fourth time, was set back. After making an intra-day low of 804.45 on Tuesday a sharp rally set in at mid-day followed by the 12-point Wednesday advance. After an llltraday high of 838. 50 on Thursday, however, the market again turned down, followed by further weakness on Friday in response to resumption of B-52 raids in Vietnam. All of these short-term swings are, of course, conslstent wlth our theory that the market is undergoing a process of base formation which wlll continue for some time. During such a period a great many attractive stocks become available for purchase on weakness. A few of the- issues on buying on market dips;earenevtewedbelow. CLARK EQUIPMENT (31) turned in an excellent earnings performance in the first half of 1969 with six months net reaching 1. 53 a share vs. 1. 00 in the comparable 1968 period. For the year w' would expect earnings to rise to 3.00 vs. 2.45, and, although reduced capital goods spending next year may prove a mild depressant, we would expect further lmproved results in 1970. The stock is currently available at an historically low multiple of ten times estimated 1969 earnings and has sold at 14 to 17 times current earnings at some time during every year in the past decade. The stock has a long-term obJective of 61,and there is strong support in the 30-28 area. DART INDUSTRIES, INC. (46), formerly Rexall Drug & Chemical, presents an in- teresting growth picture. The most exciting aspects of al(Y the direct selling an consumer products groups, including Tupperware plastic 0 osmetics marketed door-to-door as well as West Bend products and i gs. ese groups account for only 33 of sales, but 66 of profits. These t ass container group, will become more important as agreement in ached to sell Dart's ethical drug division to Minnesota Mining. has fallen through;-but there-is-no-'re 0 0 t, fr ise and retail drug operations l that'thts-op-e-ration win be-dtspo-sed- – of at some time in the future. at 2. 25-2, 35 vs. 1. 91, and we would be a buyer of t e sto 0 FIRST CH T F y mo llltO the low 40' s. 7) is the outstanding technical performer in an out- ! standing group, the 'ngs & Loan issues. The stock has maintained a consistent uptrend all through th rket debacle, and continues to have a long-term objective of BO. It is the largest of &L holding companies, and owns the second largest association in the country. Earm gs growth based on the strong underlying demand trend for homes in Califorma is expect ed to continue, and yields on new mortgages should remain high. Savings flow, of course, remains a questionmark, but FCF is not dependent on out-of-State funds, having developed a strong local base. For 1969, earnings are expected to reach a record 2. BO-2. 90 level vs. a depressed 1. 81 la-st year. We would be a buyer of the stock on dips to the low 40' s. PARKE-DAVIS (32) has, for a long time, been included in our Recommended List and during most of the period its market performc,nce has been somewhat less than stellar. However, it has come into its own in the bear market of 1969, proving, by-and-Iarge, resistant to the sharp drop in stock prices. During this process a substantial base has been formed indicating that it 'may 'soon reward- the patience'of its holders. 'Recent earnings declines in Parke-Davis have been due, of course, to the decline in profitability of nO-Iongerpatent-protected Chloromycetin, and from a peak of 2, 20 in 1965,earnings dropped to a nadir of 1. 25 in 196B. 1969 results are expected to begin a recovery and could well approach 1. 40-1. 45 area. Accompanying this could be a return to the growth multiples which were characteristic of the stock before the Chloromycetin difficulties began. We would be a buyer in investment accounts. Dow-Jones Ind. B24.25 Dow-Jones Rails 19B.45 ANTHONY W. TABELL WALSTON & CO. INC. AWTamb ThiS mnrl.et, letter IS Jlubhshcd for )OUr o.!onvenH'nr(' and mformatlOn m,\ Ito not ;\11 olTeJ tn sell 01 ..I. SOlll'll,ltlO1l W 1IU\ ,In) !,,,Ulltll!'!. rhscusscd The In. formation '1\; obtnJncl from SOUt.(' ,\(' belwv(' to be r('hnbll' Lut \\( do not In!.lrantet' Its finUr,!,), \\nbton IV Co, Int. Jlml lh nffic('r'/, rhrt.'Ciors 01 employccs may hnvc an mtel cet lfi 01 !lUI lind '1ell thc I CrCI L'(l tu WN.SOI

W—-a–l-s-tInocn—&–C–o–. Members New York Stock Exchange and Other Principal Slock and Commodity Exchanges I OVER 100 OFFICES COAST TO COAST AND OVERSEAS TABEll'S MARKET lETTER September 19, 1969 The technical dilemma now facing the stock market should be quite clear by now to almost all investors. It is symbolized perfectly by the most-widely-looked-at single stock market chart — the one that appears on the next-to-the-last page of the Wall Street Journal, covering the three Dow-Jones Averages. As the chart quite clearly shows, since the low of July 29th, the Dow Industrials have held in a sideways trading range contained by, roughly, 800 on the downside and 840 on the upside. Three separate tests of the downside portion of this range occurred, and four separate tests of the upper part, including last week when the Dow spent most of its time bouncing against this temporarily impermeable Thechart oi.Jhe Dow-Jones Rails looks very much like the Industrials. – – ——- Whichever way this trading range is penetrated, the chart is going to look awfully good or awfully bad to the untutored eye, and we believe this is significant enough to indicat a rather quick move in either direction. The upside target for the Dow would be 875, and the downside target somewhere in the 785-775 ra.nge. While the direction of the immediate penetration is still in doubt, there is very little doubt that the trading range constitutes part of an ultimate base formation. The only question that remains is the ultima.te shape of the base. Here we are willing to let the mar- ket tell its own story. In such an environment, however, it is incumbent upon the investor to build up a fully invested position in those stocks which can be potential leaders on the upside. To as- sist in this task we are making, herewith, a number of ur Recommended List. We are removing from the list a number of issues whose e h i aRern has been damage by the 1969 decline, or where we think the issues being removed are as follows' t 1 is Po average. Those Quality & Long-Term Growth Amerada – – — — -Prlce Appreciation Air (39);- ved in exchange for Amerada 1/ d e . (27), Goodyear (28 5/8), Kraftco – s -( /2);-Winn–Bixie-(-3-3-7/8-). .., i..RMCluction (18), American Bakeries (13 1/4), (193/8), Great Northern Paper (54), '——r- , We are ii .' additions to the list, but are suggesting buy pomts for 24 issues which wil tom ally added to the list if those buy points are reached. This strategy is in line wit th ssibility that a further extension of the trading range may brin these lssues down to e attractive buying levels. Should an upside breakout take place, of course, we will revise this strategy and suggest immediate purchase of a number of issues. We will duly notify our readers of such a change in this letter. Quality & Long-Term Growth Stock Buy Level Stock Buy Lev Int'l Bus. Mach. 340 Squibb Beech-Nut 55 Merck 95 Sears Roebuck 66 Nat'l Cash Reg. 140 Union Carbide 41 Procter & Gamble 95 Price Appreciation Stock Buy Level Stock Buy Leve Alberto Culver 45 Culligan, Inc. 22 Atlas Chemical 27 Faberge, Inc. 32 Amer. Hosp.Supply 38 Grolier, Inc. 32 AMP, Inc. 47 Hewlett-Packard 90 Big 3 Ind. Gas 44 Carter Wallace 27 Speculative Price Appreciation Stock Buy Level Capitol Ind. 41 Dixilyn Corp. 28 i I Great West. Fm. 25 Pittston Times Mirror Stock. Memorex Tishman Realty 65 44 BUy Level 92 30 Those issues which are ultimatel y added to the Itst will be reviewed in subsequent issues of this letter. Dow-Jones Ind. 830.39 Dow-Jones Rails 200. 35 ANTHONY W. TABELL WALSTON & CO. INC. ThIS mnl'hM httl!l' 15 Iubhsh(d fot )Oll/ nn(1 lllfollnnllon and ,'- not an aIT'-'J formatIon was obtamed from we 1…1Ll'v' to he lell!!h1. hut We do not emptoyees may have an Interest Ln or pureha;e Rutl !.ell the '\',UlltW' Ifrclred to herein to sell 01 a '1011t'llRtlOn to bu) ,tn seCUrities dISCussed Its .I'cur.I(\ W.llton &. Co Inc Rnrl Its officel'; 'I'he In. OJ WN.aot