Walston 5- Co…… ., .', …. L.. , MEMBERS New VORl( SleCt( EXCHAN&E AND OTHER LEAOIN6 STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (SwH…I.ndJ OFFICES COAST TO, COAST CONNECTEC BY DIECT 'ItlYATE WIRE SYSTEM TAB Ell'S MARKET lETTER November 6, 1953 I have just returned from a month's tour of Southern Calif- ornia, Arizona, New Mexico, Texas and t;1e 30ut. The trip has confirm- ed my long term optimism ,09 our economy t;lat was engendered by my earlier trip to the North, Canada, the Northwest and Northern California. The growth potential in our economy is tremendous and, at present prices, the great majority of common stocks in sound, growth companies have not even started to discount the growth potentials. The long term trend of the stock market is, in my opinion, definitely upward. Because of my trip, I have not issued a letter for the past three weeks. My last letter on the general market was dated October 2nd. On that date, the Dow-Jones industrial average closed at 266.70. It had rallied from the September low of 254.36. In our October 2nd letter I anticipated a further rally to the 275-280 level. Today's high was 280.25. Regarding individual issues, I discussed the advisability of buying the blue chip issues that suffered only a mild decline, or buying the issues of above average quality that had suffered severe declines from their highs. I finally reached the conclusion that the wiser policy would be a combination of the two. It has turned out that both groups have advanced, but the blue hip group has turned in the better performance, as shown in the table below. The first column shows the stocks in the blue chip group mentioned in this letter, together with the October 2nd closing price and the November 5th price. The second column shows the price action of the stocks suggested as buys in the group that had already suffered severe price declines Oct. 2nd Union Carbide 65 3/4 General Electric 75 1/8 National Lead 33 5/8 Intern'l Paper 52 Scott Paper 65 1/4 duPont 102 General Foods 56 5/8 Nov. 70 5/8 83 3/8 36 7/8 57 68 3/8 104 3/4 59 Deere & Co. Amer. Cyanamid Food Machinery Amer. Viscose Oct. 2nd 25 1/8 45 3/8 34 1/4 38 3/4 Nov. 5th 26 1/4 48 1/2 37 1/4 39 1/8 My only purpose in mentioning these price advances in both individual stock and the averages is to point out that the market has advanced quite sharply and may be in need of a correction or at least a consolidation. The industrial average is in a, supply area and the rails, which have shown below-average action on the rally, also run into heavy overhead reSistance at 100-102. Friday'S close was 98.25. The intermediate term technical indicator Which signalled a buy on September 22nd has reached overbought territory and signalled a sell on Thursday. This gauge is a purely mechanical indicator, but its record of accuracy in the past has been quite good. , In other wordS, without altering my long term bullishness in any way, I would be inclined to expect at least a moderate sell-off in the near future. If this occurs, it should be a welcome develop- ment and an opportunity to buy selected growth issues at moderately lower levels in anicipation of a long term advance in prices. Any further strength should be used ,to lighten holdings in groups that still show potentially vulnerable patterns for the near term. Some of the Oils, rails and rubbers fall into this category. EDMUND W. TABELL WALSTON & CO. This memotlllnd.llm Is not Ie b. cons'tlled bmel,edheu.p…onlinlnIfnortm.fntltonIn lome or believed II of r.llebl. n off.r or lollclt.tlon of off.n to the sKurltl.. mentioned heln, The fboury.qooirfu 11 .ny tHurlti.l. From tim. to tim. materl.1 hu been prepared b, UI Wolston & Co, a. a matt., of or ,any pertner thereof, information only It is but not n.celledl, com pl…. Ii not 9u.rant..d ., accurat. or finel. end is not Intended to foredose independent InqUiry '.' ,', …..,';., ''',','',,;,.', ;''./'; '' .',.,' , …. . ',' ;…..;….,..;.;., ' ….. …….;.. ,'……;.,;;;;;-…–……-,- …… . . . . . 0… , ; – . . . . . . '. . . . ,. . , . ;.. . . . . .; . ;;.;' . ; . ' . . . . .- . . . . . . . . . . . . . . . .

– Walston &- Uo. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO SwH,Id I OFFICES COAST TO COASt CONNECTEC BY OIRECT PRIYATE WIRE SYTEM TAB ELL'S MARKET LETTER November 13, 1953 For the past ten trading days, the market, as measured by the DowJones industrial average, has held in an area bounded roughly by 280 and '275. This area of 280-275 has been my upside objective for the advance from the September low of 254.36. Also, the 280-275 area is one of fairly heavy supply so it is logical to expect a technical correction from last week's high of 280.33. As you know, the intermediate term indicator gave a sell signal last week. However, I do not expect the decline to be severe. In terms of the averages, which mean little or nothing, it would be normal to expect a one-third — two-thirds retracement of the September-November rise which ) totalled 25 pOints. A one-third correction would bring the average down to about 272, and two-thirds down to about 264. This week's low was 274.63. At the moment there are no large tops on individual issues, so it would appear that 272-270 would be a more logical stopping point than 265. This correction in the averages could have little effect on individual stocks. Would continue a policy of buying on minor price weakness. The action of the market over the next month or so should furnish an important clue as to whether the expected long term rise has started or whether it will be necessary to spend a further period of six months or so in the broad 290-240 area in which the market has held since 1951. ,Ability of any decline over the next month to hold in the 270-264 area would be extremely constructive. A decline below that level would probably indicate at least a testing of ' the September low of 54.36. Of course, except for near term indications, the averages have meant very little. The action of indiv,idual issues has been so diverse that one could have been, absolutely right on the course of the various averages, but the net result could have been quite unfavorable if the right issues had not been purchased or sold. ' For example, the industrial average has been at 275 many times over the past two and a half years. In the table below I have selected six days, rather widely separated, when the' industrials closed near 275. The first date was over two years ago. 'The most recent date was last Tuesday. I have also added the closing price of nine stocks on the same date. All of these stocks are part of the 30 stocks used in the Dow-Jones industrial average. September January August' April August November 17, 1951 22,1952 29,1952 7, 1953 17,1953 10,1953 Dow-Jones Ind. 275.09 Amer. Smelt. 47 3/8 Amer. T & T 159 Beth. Steel 55 1/2 Chrysler 72 1/4 Gen'l Elec. 63 7/8 'Gen'l Foods 44 1/4 Nat'l Dist. 35 Std.Oil of N.J. 67 1/8 United Aircraft 31 7/8 275.40 275.04,275.16 50 44 3/8 38 1/2 155 3/4 155 1/2 155 53.5/8 50 5/8 50 1/2' 70 81 3/4 79 7/8 59 3/4 63 1/8 68 '1/4 43 3/8 48 S/8 53 1/2 33 26 '1/4 20 84 3/8,78 ' 70 5/8 32 3/4 35 1/4 33 3/4 275.04 31 155 3/8 50 3/4 69 5/8 77 1/4 55 3/8 18 5/8 74 38 5/8 275.89 28 5/8 155 3/8 49 3/4 66 7/8 83 1/4 58 18 71 5/8 42 7/8 If one had sold 100 shares of Standard Oil of New Jersey on January 22, 1952, and switched the proQeeds into General Electric,his holding would be worth about 11,480 .. If ,the jersey had been held, the value would be 7,200. If one had switched 100 Natio'nal Distillers into 100 United Aircraft on September 17th, 195,' ,the holding would be w;orth 4,200 today. If the National Distillers had been held until today, the value would be 1,800. And yet, on al these six dte, the industrials,sold at the same price of 275. All the stocks 'mentioned' are part of the averages. If stocks outside the averages were used, the results would,of course, be even more startling. Selection is, and will continue to be of primary importance re- gardless of the course of the averages. An issue that appears attractive for price appreciation over the intermediate term is Glenn L. Martin. The stock closed at 14 7/8. Since 1946, it has shown very poor priye action as compared with the average air- craft issue. The 1946 high was 4b3/4. The 1949 low was 7 1/8. For the last four years, while most aircraft issues have been advancing, Glenn L. Martin has held in a wide trading area bounded roughly by 10 and 20. It is in the middle of the range now. It begins to appear that this is an accumulation base. The technical pattern is very interesting. The interme- dlate upside potential is 23-25. The longer term possibilities are even 1fulrtI''TItkYrPa11.ls nt to b, consltl,lld 'trIW/y have an Int.res! In so!,,!, or l1li11 0' bued upon InformatIon b.h …..d r,lIabl, atbhsuetan.n..ooctuffr.lretelolurom!,Iro,Uln1.hc,ofcn.ot,mrdonphlo,.tf,..,lonfIfsennTohtt,o9fbuUoaYrrUa.llr\'Vt,tJ\'l\1lI!Rst-Tr1\0Ic1,1rt1t't\,l.esrft iOd II tonboyttimuInsetelW1nli1dl!eabdtomntootH&foerrCeocolf,osoienrfoianrndmyeaptpeiaonrndtneeonrntlytihnqeUreiroyfis, . . . . ….. ',' . . . . . ….. . ….. .. ,. . , ..,., —-I———–..-……–……;..,.———

–r—— Walston &- Uo. MEMBeRS NEW vOlue STOCK EXCHNG AND otHER LEADING STOel( AND COMMODITY EXCHA.NGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (SH,.,landJ OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TAB ELL'S MARKET LETTER November 20, 1953 The market continues to show excellent technical action. A correction earlier in the week brought the DOW-Jones industrial average down to 273.01, but the market quickly rebounded back to the 277 level. At the week's ow, the indust'rials had not even retraced one-third of thp twenty-five point advance from the September lows. Whet,her or not the market will retrace the tradit ional, one-third to two-thirds of the preceding advance at this stage is problematical. On my technical work, the intermediate term technical indicator entered overbought territory earlier in the month and gave a sell signal on November 4th. The closing price level on that date was 276.82. This sell signal has not been reversed as yet. A renewed buy signal could be given in two ways. If, between now and late December, the industria16 declined to around 265, the technical indicator would be in over601d territory and in a position to give a buy signal. The other alternative would be for the average to hold at around present levels or slightly lower for another week or two. Thell if' the market rallied, a buy signal would be given because of loss of downside momentum. In either event, this is of interest to the short term trader rather than the long term' investor. The market is, in my opinion, in a long term accumulation area between 295 and 240. Sometime in 1954 it will break out of the area on the upside.' I have urged my readers to concentrate on growh issues when they are available at reasonable levels. I believe electric utilities in growth areas offer a consevative participation in the long term growth of tue country. Generating capacity has doubled since the end of World War II, but the nation's electric companies plan to increase the present capacity by another 50 by the end of 1956. Both Xndustrial and residential sales have shown tremendous increases since 1929. The average householder uses four times,ats,much current as in 1929 a'nd, of course, there are ILOre customers. This has resulted u,(18 drop of over 50 in rates since 1929. utilIties were speculative favorites in 1929, but the speculation was in the holding copany securities with highly pyramided capital structures. This ,ms changed by the utility 'Company Holding Act of 1935 and most of the electric utilities'tradd today are the direct operating companies. Latest operating statistics bear out the Srowth possibilities of the utility industry. For the twelve months endir August 31st, 1953, operating revenues of all'utilities ,in the United S1;ates increased 9.8 over the preceaing twelve months. The lincrease in net income of 13.4 was even greater. Utility common stOCkS' do 'not move rapidly marketwise, but many utilities re demonstrating increases in earnings per share, pointing toward larger dividends and higher share prices. There are a large number of utility issues that appear attractive from a tecrJlicsl viewpoint. To mention a few – Commonwealth Edison, Consumers Power, Florida Power, Idaho Power, Ohio Edison, Pacific Gas & Electric, Philadelphia EIGctric, Public ervice of Colorado, Southern California Edison. Listed utility issues yield between 5 and 6. Some of the unlisted issues of the smalaer companies are available on a higher yield basis than listed issues! ,\ EDMUND W. TABELL WALSTON & CO.

'''alston &- Co. MEMBERS NEW YORK STOCK EXCHANGe AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO iSwd,ld I OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TAB ELL'S MARKET LETTER November 27, 1953 Since reachlng a high of 280.33 on November 4th, the Dow-Jones industrial average has held in the 280-273 area for fifteen trading days. Friday's strength, particularly in the high-grade investment issues, brought the average into new highs for the move at 280.78, It becomes increaslngly probable that the 25-point advance from the Setember lows is being corrected by a consolidating movement rather che.n a one-third to two-thirds retracement of the advance. We are approaching the time of the year when the seasonal trend is upward. In eighteen of the last twenty years the market has advanced during the December-January 15th period. The aircraft manufacturing issues have been showing impressive technical action recently and several issues in the group have reached new high territory. Despite the already sharp rise from the September lows, most issues in the group still indicate higher levels over the intermediate term. One of the more attractive issues from 3 technical viewpoint is North American Aviation. The stock has not advanced as much as others in the group because of the strike which has partially held up production. However, it has a very strong technical pattern and ability to penetrate the 20 1/2 high reached earlier in the year would indicate the probability of 27-30 over the longer term. Friday'S close was 19 31. The company's new F-IOO jet fighter, which replaces the F-b6 Sabre jet, has been ordered into accelerated prodUction. North American also has contracts for guided missiles, rocket motors and control systems. For the longer term future, its work on atomic energy could be extremely important. The stock has been paying 75t semi-annually to yield over 7 1/2. Elimination of E.P.T. should add materially to earnings. This' letter has recommended American Telephone & Telegraph for the last two years as an excellent defensive investment holding with a good yield and moderate appreciation Possibilities. The stock has held very firmly despite the ups and downs of the genera market and the investor who purchased it over the past two years is in a better position than if he had ')(\usht AAA corporate bonds. At present price of 157 3/8, the stock yieldS 5.7 based on the current 9 a11nual dividend Which has been paid for 32 years. Actually, the holder of the stock over the past eight years would have received an even greater yield than 9 annualJ.y. Since 1945, American Telephone has offered rights to stockholders on six different occasions. These were rights to buy the convertible bondS of the company. These rights could either be exercised and the convertible bonds purchased or the rights' could have been sold. If ,Ie add up total value of all these rights at the high level reached (including the present issue o rights) we flnd that they had a value of 13.81. If they were all sold at their 10VIS, the value 1'I0uld llBve been 9.96. The median value would be 11.82. This means that over an eight-J'ear period there would have been an added average income of 1.48 per share. 'lhis added to the reGul-r 9 dividend would have averaged a return of 6 3/4 over the past 'eight yearG. 111e technical l)a'tern on American Telephone remains favorable lith a posGible 105-172 indicat10n over the longer term. The 1937 . i3h was 190 and the 1946 high was,200. At 157, the stock is ceIling at about the average price of the last ten years. American Telephone common stock apflears to offer fair appreciation possibilitic8 toether with excellent defensive quat.t1es and a good ;yield .. It is an interesting investment' pu;'chase at this stage of the market pattern. EDlylUND W. TABELL WALSTON & CO. ,! , I'hh mav memotand\Jm II nol 10 bll have til' Interest In some C.OM;'\lIlC Of all O'f u .HI er or Ihe sec\.Irllin iohc.da 'on mentioned I ff h0erl1;1n I!tS 10 The fbouryego'rnCSJCdI ItmailnIarclscaeulCrauhtraeitsieosbrefinFnraolpmreCpllniadmreeISd 10 time by us Walston & Co, u a ma\'tr 01 omrloarmnyilllpOaI'roln'eGIr'I\the-eHQ'' not ,ntended to forecl5e Indtpendent ,nqu,rv I lb'd'P''i''mi''b''''''d'''''b''b,,,,,,,,,y,,mp,,,,,,,,,,,,,,,,,,,''', i !