Walston HofJ'luan G-Goodwin(,',''''''',–,– .!,',.' ,', 1..!; , . – '-. — 0– ' –''–''-'—'–'''-''''-'Ti'). .-;1, -;,,,-!,-,,-,,,,, -i!kP!'-;J–l ,I /. NEW YORK 5, N, Y Q,YJ'N-e.6 (I'c PHILADELPHIA 2, PA LOS ANGELES 13, CALIF. SAN FRANCISCO 4, CALIF. k , 35 Wall Street 1420 Walnut Street 550 South Sprin9 Street 265 Montgomery Street F,- l I DIGBY 4.4141 PENNYPACKER 55977 . ,l',' TABEll'S MARKET lETTER ,, MADISON '.232 SUTTER '.2100 'h i 'C2'1 ,,G, \! ., ,',,1 i!.ij U The correction of the September advance to 277.51 in the industrials ;''and 87.04 in the rails ended last week with the industrials holding above – ';the 265 support level at the week's low of 269.08 and the rails completing ;, i','their needeq. consolidation at the low of 84.40. Starting Monday, the market; reversed its minor downtrend and moved ahead to the expected testing of thetj, i'year's highs. The rails rallied to a high of 87.73, a shade above the Sep- tr., /,tember high of 87.04 but still below February's high of 90.82. The indus- i', 'trials, at this week's intra-day high of 277.30, did not quite reach the J' ,' ,last month's high. The market appears a bit tired after its sharp five-day t.;;;Orfalalydaencdl i again appears in need of some ne should furnish some indicat consolidation. ion of the next Its action intermedi in ate case move. ;i,-E !F.- , Regardless of the sh0rter term action of the market, the general tech l'nical pattern remains the same. Most of the market leaders have reached ;,their upside objectives and appear relatively high when probable 1952 earn-/, ,.'ings are considered. Many of these higher grade issues have started to form, ,' ,potential distributional tops but others have only started such patterns. ; ,Therefore, the timing of a downward adjustment is uncertain. The timing is L, ,further complicated by the fact that the lower pr,iced issues have not yet ;, ;.;'had the usual market ,,;tributional pattern. rise that generally precedes the completion of a dis- ,t,,'c, ,j r Many of the secondary issues have favorable technical patterns and t'- 'i t is possible that issues of this type may advance over the near term. Thist, ,may hold up the general market for a few months longer but the technical , ,pattern suggests the probability that a stock market correction of at ;.. least intermediate term proportions is to be expected some time in the ,,'next six months. .' ( '!.-, ',t I ;\ Whether this probability becomes a certainty or not, it seems wise (, i;to make some provision for it in long term capital appreciation accounts. i ,'rhat is1 WhYdI advlocadte a Idarge biUYing pOiwther rteserve anhdiamlbuYtintg or hOIld- ,,;,t ing on y un erva ue secon ary ssues w s rong t ec n ca pa erns. , ';omentioned several issues of this type in last week's letter. Some of them, , , like Bucyrus Erie, Elliott, Fruehauf Trailer, National Supply, New York , Air Brake, Twentieth Century-Fox and Western Auto Supply have advanced 1–, –.! ,; ',moderately during this week's strength. J , l r,'.'!,, , 1'1above Other issues that appear are the following undervalued in addition to those mentioned ', ,, American News 34 Gray Mfg. 16 ; isw. i ;!/!!nlass it .-', Burroughs 17 Hewitt Robins 27 tc ' Carrier Corp. 23 Lerner Stores 26 ,; ; Certain-teed 17 Marshall Field 31 (, ,-,1 City Stores 19 McGraw Electric 51 . ' Columbia Broad. 28 Otis Elevator 38 ;';, ; Columbia Pictures 15 Poor &' Co. 19 ;' ' Cuneo Press 14 Smith, A.O. 36 ' I 1 Standard Steel Spring 23 /,' New addition to our recommended list. , i;;October 5, 1951 ;.' Dow-Jones Indus. ; Dow-Jones Rails 275.57 86.99 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN ','b, I l ..!if; ;.' H -;; 'J Thh memorandum is not to b. condrued IiIS an offer or solidt.tion of off.r, to buy or ,II filly s.curiti.s From tima to tima Walston, Hofr,.riln & God… ir—-;;;;;- r\- /; have an inte,ut in some or all of the 'ecuri'le, mentioned herein. Th. for.qoln; material has b..n prepared by us as II matt., of rnfO'mdtl( lr'ly I. h btlsed r Ii upon information b.II…..d rellabl. but not neuuflrily compl.te, Is not ;uaran…d .. aceur. or final, and Is not Intended to foreclose independt'lnt ;r-qulry -v,,',,l.,,',.,,,c'I,,,,,',',-',.,',.,,',',',-',',',',,'- ., .,.,','',,,',',,',',,,-.,',',,,,' ,',, . .,.. ,',II-,''C.,',,,,7// ,- I'-'—,.;-,.,..'-.,,'i-… ',,..,.';,j-,,../,'C'/i,I,i!'.f,—-7','.,','- ''-'I/(,,' ,', ',.'…\;

— ——————————– , , , NEW YORK S, N Y , 35 Wall Street , DIGBY .4141 PHILADELPHIA 2, PA 1420 Walnut Street PENNYPACKER 5-5911 LOS ANGELES 13, CALIf, SAN fRANCISCO 4, CALIf, 550 South Spring Street 265 Montgomery Street MADISON 'I 22 SUTTER 12700 /, ! r' , , TABELL'S MARKET LETTER ,I;' ,',1' , '1 ', )I', It would appear that the industrial average will furnish the clue as,- ' to the direction of the nearer term price trend. While the rails last week i , 'were able to better their September high of 87.04 to reach 87.80 and are ini' I', a position to again test the February high of 90.82, the industrial average', ,,,, has acted rather sluggishly. This average reached its high in mid-September i,-at 277.51 and reacted to 269.08 later in the month. Last week's rally carrid the industrials back to 277.30. This week's low was 271.46. An upside pene-, , tration of the 277.51-269.08 trading range would indicate a continuation of' ; ,the uptrend from the July lows. A downside penetration might have consider-', ' , ably more significance and indicate a top of at least intermediate term ;'proportions. ,',' However, regardless of the action of the averages and the general (,-' market, there are a great many individual issues that have strong long term ,,, ',' technical patterns. In looking over the graphs of a number of individual ;,' ' issues showing the monthly price range Since 1929, it was interesting to note '''how many issues were selling below not only the highs of 1946, but also the ,highs of 1937. Of course, this does not mean that these issues are necessari- , ,ly undervalued or behind the market. In fact, quite the reverse is more apt ;' ,to be true. The fact that these issues have been unable to better former , , highs usually signifies a lack of growth potential. The great majority of 'growth stocks are selling above their 1929 highs as well as 1946 and 1937.' However, when a stock is selling below its highs of 1937 and 1946, ',,-, ' ,and has an upward trend of earnings plus a favorable long term technical ( , 'pattern, it merits some conSideration. Below are three issues in my recom- ,,, mended list….. AMERICAN RADIATOR 122l ',- High 29' 23 1612 -a ', , ,, ' Earnings Dividend 68 95 2.05 ' 60 40 1.25-1.59' ,.' This stock has paid continuous dividends since 1936. It has built up ;,,,' a very favorable long term technical pattern. It has held in the 10-17 po- , ''', tential base area since 1946. While no immediate move is necessarily indi- ', cated, the eventual objective appears to be an initial' 25 followed by 35. /-' ; Would buy this stock for patient long term appreciation plus good yield. /!, BURROUGHS ADDING MACHINE 1937 1946 19'51 High Earnings Dividend 36 5/8 21 3/4 1.63 '40 1.40 55 18 3/4 1.55 90 ,, ,, — Dividends have been paid since 1895. Earnings have been erratic over; , recent years and in a downtrend since 1929. However, the stock appears to f, ,have turned the corner. It held in the broad 13-17 range for over four years. – The recent upside penetration indicates a long term 31. Action may be Slow; , but the stock appears to be under accumulation and should be bought on minoe' ' price declines. I', OWENS ILLINOIS GLASS 1937 1946 1951 ',,r' I', ' High Earnings 103 3/4 100 3.51 4.53 89 6.50 , Dividend 3.25 3.50 4.00-4.25, Estimated. a – So far this year. , The stock has paid a dividend each year since 1907. Largest manufac-,' ' turer of glass containers. Has 42 interest in Owens-Corning Fibreglass CorP. ';Ii, Has favorable long term growth prospects. Recent penetration of 74-82 trading '; area indicates a possible 95-105. Good support at 80-75. Long term potentiaJL, I ,much higher. ,'- , All three of these stocks are recommended for purchase in long term ,' I capital appreciation accounts, provided there is also a large backlog of re,, ,;'', serve buying power. EDMUND W. TABELL ; October 11, 1951 Dow-Jones Ind. – 274.10 Dow-Jones Rails 86.88 WALSTON, HOFFMAN & GOODWIN ,' Thill memorandum is not to b, con,trued at lin offer or solicillltion of offen to buy or sell lin)' ,ecurlti from time to time Walton, Hofln')11 & Goco ….. ,n molY ho!lve olin interelt in lome or 1111 of thl lecurltlel mentioned herein The foregoln9 mo!ltetlal hal been prepo!lred b UI al o!I matter of Informt,,,1'\ orly I' I I.H'lu!d upon informo!ltlon believed reliable but not neceulHily complehl, is not ;uuanteed al accurate or fiul, oIInd II not Intended to loredou inf'pnder.t Irq,my \.

— — NEW YORK 5, N. y, 35 Wall Street DIGBY' 44141 PHILADELPHIA 2, PA 1420 Walnut Street PENNYPACKER 55'77 LOS ANGELES 13. CALIF 550 South Spring Street h4ADISON '22 SAN FRANCISCO 4. CALIF. 265 Montgomery Street SUTTER 11700 ,., , , The market sold off sharply in the last hour of Friday's trading and the Dow-Jones industrial average declined 3.83 to reach an intra-day low of 269.23. Further weakness would result in a downside penetration of the 277.51 to 269.04 trading shelf in which the industrials have held for 35 trading days. The rail average penetrated the downside of the shorter twenty-day trading range between 87.80 and 84.40 to reach a low of 83.63. , A downside penetration by the industrials would have conSiderable technical significance when coupled with generally deteriorating long term technical pattern that I have been mentioning recently -, in this letter. It would, in my opinion, indicate the end of the t,'!. approximately thirty-seven point advance from the June low of ,. i, ' 240.72 in the industrials. The fact that the rails failed to reach the February high of 90.82 on this rally, despite the fact that the industrial average advanced more than twenty pOints above the February high, lends credence to the thought that the market may have reached at least an intermediate term top. As mentioned in recent letters, the market has appeared stronger than it actually was. Strength in a relatively few issues caused the averages to advance while wild gyrations in a few speculative issues concealed the fact that the majority of stocks were making little upside progress. A study of forty-one graphs of individual groups showed that twenty had reached their highs prior to July 1st despite the fact that the averages reached new high territory. The internal action of the market as shown by the number of advances and declines, new highs and lows and advancing and declinir volume, and other factors, has been confirming this divergence of action that occurs at all important tops in the market. ,. , Such a decline, if it occurs, would meet initial support at about 265, but would most likely show an ultimate dip to the 260-255 area. That would be all I would expect 'on the first phase of the decline. If a full intermediate correction is in ii /',,' the offing, the market would have to rally from the 260-255 area to further broaden the tops in chemicals, oils and other , ' recent leaders that have only relatively minor tops at the moment. For intermediate term trading accounts interested in long term capital gains of six months or longer, my advice continues the same as that mentioned in recent letters. The outlook for the next six months is uncertain. Would confine commitments to better quality secondary issues with favorable long term patterns. I would use only 25 of available funds for issues of this type and keep 75 of funds liquid as a buying reserve. , ,, ,, ,,' , October 19, 1951 Closing Averages EDMUND W. T ABELL WALSTOW, HOFFMAN & GOODWIN Dow-Jones Industrials 269.68 Dow-Jones Rails 83.79 ! ,', ',' ,, .– r;', Thll m.morandum b not to b. con,tru.d 41 an off.r or ,olicitation of off, to buy or Mil any securitiu From tim. to tim. Waldon, Hoff'r,-,r, & Gocd'll1 may ,! hu. upon an lnt.rest in '0m, or Information b,lI,v,d all of th, curitl.s m,nhon,d her,ln Tlilabl' but not n.ceuerily compl,t Th, fore90in9 mat.al Is not u/lr.nteed aI hal bun prepared by UI at a matt acclff.t, or final, end il not intended of 10 toInf.oclon!;,i,n,!o!fo';'YlloleIr'.1 I blUd Il'q'.my if, ' , ,' ;'l;;'C';;,/;;..!,, !!.f,'!!,;/i,f,, ,' ;,,,/' ';11,,1,' I, ,,';;7, /- ',', ,',',!,\ ,'; I ' , , , i

Wolston.lIoffl110n & Goodwin , , 1,- NEW YORK 5, N Y PHILADELPHIA 2, PA 35 Willi Street 1420 Wlnut Street DIGBY 01\ 4141 PENNYPACKER 5-5917 ,' /, i; TABELL'S MARKET LETTER I lOS ANGELES 13, CALIF. 550 South Spring Street MADISON '3232 SAN FRANCISCO 4, CALIF 265 Montgomery Street SUTTER I 1700 .-' ,I -., 1'7 , ' ; '' The market, at Monday's low of 259.46, on the Dow-Jones industrials,., 1, reached the downside objective of 260-255 outlined by the 277-270 distri- ,; V butional top. The sharp eighteen point decline placed the market in an . ;-.' oversold condition. My short term technical indicator gave a buy signal on ;,; Tuesday. The market reached a high of 266.79 on Wednesday . I would not ' I' expect the advance to carry beyond the 268-270 area at this stage. There is overhead supply in the 270-277 area that will halt any immediate rise. ', 1; , /,', must Before the market moves very far be formed. The downside objective in of either direction, a new pattern 277-270 top has been approxi- ' mately reached and there 1s no other indication of importance at the mo- ,,, ment. I believe the market for the next area between roughly 270 and 255. After few the weeks may hold in a trading pattern is completed, some ';, c lew will be given as to the direc tion of the next move. -;; , I ',' The longer term pattern is also uncertain. Since January, the market' ; has held in the comparatively narrow (13) trading range between 240.72 i' and 277.51. Recently, the internal action of the market has been poor. . ', Unless this action improves, the possibility that the entire 277-240 area i;', is a distributional top must be taken into consideration. If such proves ,;' to be the case, a further substantial decline could occur. The downside (. implications of such a pattern are not certain because the pattern is not ,. yet complete. At the moment, there is a potential of 230-225, but this ;-,1 would be changed if the pattern broadens by further backing and filling ,' in the broad trading area. ; I )., ' It is not certain that this is the pattern. I mention it only as a ,! ; possibility. However, if the market over the next few weeks fails to pene- ' F,c,, trate the 277.51 high of September and then breaks below made on the current reaction (259.46 so far), a downward whatever low is trend would be 'I , signalled. f' 7. Because of this uncertain pattern, I continue to advise the invest- ment policy advocated by this letter in recent weeks. For accounts inte- ;,;, rested in capital appreciation of six months or longer, I recommend that ;,' 75 of funds be held liquid as a buying reserve. The remaining 25 should be invested in secondary stocks with good long term technical patterns. ;' I reprint below issues of this type that were mentioned in recent letters j – American News Hall Printing , , /,-, , til Blaw Knox o Bliss, E.W. o Hazel Atlas Glass Hewitt-Robins .,f' ' Bucyrus Erie Burroughs Lerner Stores I 0 Marshall Field , .C a r r i e r McGraw Electric ' & Certain-Teed National Supply City Stores f New York Air Brake I' ,, ' , Columbia Broadcasting olumbia Pictures It OtiS Elevat CD Poor & Co. \-I1IL ,\1' 1'- …,c; ctllieov1''ess Elliott Company Smith, A.O. Standard Steel Spring Fruehauf Trailer Twentieth Century-Fox Gray Manufacturing Western Auto Supply ., ;, Oc tober 26, 1951 , f Dow-Jones Industrials Dow-Jones Rails 262.27 80.83 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN ;7 , nUl memorillndum II not to b. condrued on jln off..r or solicitation of offers to buy or 5ell any lecuriliel From hm. to time Wllliiton, Hoffman & Goodwin may , , ,' '\ have an interest ,n lorn. or 11111 of the ltIcuritin mtlntioned herein The fore90lnq material hill bun prepIII,ed by us 41 III mBtlr of information only It 15 b41ed upon information believed r.llable but not n,cenarily compl,te, Is not ;u4tanteed III accurate or final, and is not intended to foredou independent Inquiry '/..;' -l–;;!–;.;;;.')..-;;r. – – -;.-1 ';.1 -// '.- – J;;'- '- – . /. 7 -.,.- '—-' ,- -.-'..'t- —.,. '– —- .-. –\