-. 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 DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER December 4, 1953 In the past three years, the market has had eight moves forward and seven downward. Each move, particularly the advances, has had the same characteristic. Once the move started it continued in more or less of a straight line until it fially exhausted itself. There was little opportunity to trade out at an earlier stage of the advance and buy back on a decline. Once a position was relinquished, it was a difficult thing to buy back again until the advance finally topped out. The same has been more or less true of the present advance from the September lows. There has been little opportunity to buy back stock sold at a lower level. Of course, eventually, the upward move will exhaust itself. There are a few signs that the market is getting a bit tired, but nothing definite as yet. The Dow-Jones industrial average reached new high territory for the move at 285.20 and the rails, while showing less favorable action, also advanced to a fractional new high at ,99.49 as against the early November high of 99.18. In my talks to our West Coast offices in September and october, I expressed the opinion that the early leaders of The Coming Advance in Common Stocks would be the growth stocks and investment issues. So far, this has certainly worked out. This type of issue has moved ahead very rapidly while many of the secondary and speculative issues have done little marketwise. For example, in my talks I mentioned a list of stocks of the growthinvestment type. Here is how they have acted since the September lows Approx. Sept. low Public Servo of Colo. Florida Pro &Lt. 31 33 Texas Utilities 41 Republic Natural Gas 40 Shamrock Oil & Gas 36 Phillips Petroleum 50 P-clre Oil 44 El Paso Natural Gas 30 PanhandJ.e Eastern 66 Southern Natural Gas 24 Recent Price 34 39 46 50 42 56 49 35 73 28 a – adjusted for 7 stock dividend. Approx Recent Sept. low Price American Natl. Gas 34 41 Union Carbide 63 71 Bendix Aviation 4'7-a 62 Intern'l Paper 45-b 53 National Lead 31 38 Aluminium, Ltd. 44 50 Pfizer 30 34 American Viscose 38 37 Food Machinery 3L. 39 b – adjusted for 10 stock dividend. With the notable exception of American Viscose, all these issues have advanced 10 to 25 in three months. Other issues like General Electric from 69 to 92 and Minnesota Mining from 44 to 60, have also shown tremendous advances in a short period of time. It is possible that some of these issues may have temporarily exhausted their upside potentials and may require some rest or consolidation before the advance is resumed. While this is happening, it is possible that some of the secondary issues may take over. There were some signs of this during the past week. There are quite a few secondary issues that still appear reasonably priced. For example, Penn-Dixie Cement, now around 37, still indicates higher levels and would appear to be an interesting purchase. Earnings for 1953 are expected to approximate 6 as against 4.44 in 1952. The quarterly dividend of 50i was supple- mented by a 50 extra. The company has spent over12 million since 1949 for property plant and equipment improvements. This is the equivalent of approximately 20 a share on the 602,136 shares of common outstanding. The stock has an interesting technical pattern and has both a higher intermediate and longer term objective. New York Air Brake, at around 17 3/4, also seems to be an interesting purchase. It is down quite a bit from the year's high of 23 1/8 and, at present levels, yields approximately 9i on the 1.60 dividend. Earnings for 1953 should be around 3 as compared with 2.62 reported in 1952. 'Despite the company's name, because of the diversification gained by the company's entry into the field of hydraulics and vacuum pumps, sales to railroads are expected to be about 30 of this year's total sales as compared to 85 in 1950. The hydraulic division's Stratopower umps are used on more than 90 of the country's military aircraft. The stock has a very interesting technical pattern with a substantial upside potential. EDMUND W. TABELL WALSTON & CO. ThiS memornd.llm IS not to be construed as an offr or ,olktation of ffen to buy or ,ell any securities From time to time Waldon & Co, or any partner thereof, may have a,! Interes In soe or a1 of the Slcuntlu mentlone hereIn The 'ongoIng mlJtedal has been preplJfed by us as III maHer of Information only It II based upon InformatIon -beh..,ed relIable but not neceuarlly comp,ete, Is not guaranteed as aCCUflJte or finlJt, and is not intended to foreclose independent inqUiry / /

MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES .0NEW YORK PHILADElPHIA LOS ANGELES SAN FRANCISCO LUGANO (Swlherland) OFFICES COAST TO COAST CONNECTEC BY DIRECT PPIVATE WIRE SYSTEM TABELL'S MARKET LETTER December 11, 1953 The market moved moderately lower during the week. At the week's low of 278.38 reached on Friday, the Dow-Jones industrial average was down 6.82 from the December 3rd high of 285.20. The rail average has had a comparable drop from 99.49 to 95.89. There is strong support in the industrials at the 279-275 area and I would not expect the average to declinebelol that level at the present time. There is a small top formation in the industrials that indicates a possible 277. The over-all pattern continues strong and I would use any such minor decline to add to holdings. The rail average has built up a somewhat wider potential top and a decline to 95 would most likely indicate a decline to the 9391 level. Would avoid the rails until they show some signs of an improving technical pattern. One of the week's features was the continued decline of the tobacco issues to new low territory for the year. I have taken a dim view of this group for the last five or six months and despite the almost general bull- ishness of the Street on this group, my technical work indicated that they were in selling territory during the summer strength. However, at this week's lows, most issues have reached the downside objectives indicated by the graphs. For example — Stock 1953 High Week's Low Downside Objective American Tobacco Liggett & Myers Lorillard Phillip Morris Reynolds B 77 5/8 82 30 1/2 55 49 61 1/4 63 3/4 23 5/8 42 3/4 38 3/8 62-60 67-64 25-23 39-35 39-36 Phillip Morris is the only one of the five that did not reach its approximate downside objective during the recent weakness. It would appear that the group is low enough for the time being but except for a possible near term move I would not advise the group for long term holding. At the 1953 highs, most tobacco issues were below not only the 1946 highs but also the 1937 highs and in some cases the 1946 high was below 1937 despite the broad rise in the general market. This is certainly not indicative of long term growth. Other groups appear more attractive over the long term. The paper stocks are showing excellent technical action and most issues in the group continue to indicate higher price levels. International Paper has been my favorite issue in the group and reached new high territory this week at 55 1/2 (after adjusting for the recent 10 stock dividend) Other issues also have excellent technical patterns. Mead Co.-(27) appears to be moving out of a long accumulation area and ability to reach 29 would be a very strong technical signal. This issue appears to be an attractive long term holding. Champion Paper (33 5/8) has already penetrated the upside of a broad trading area and indicates a probable advance to the 37-39 area. Sutherland Paper (29 3/4) is also in a slow uptrend and indicates higher levels over the intermediate term. West Virginia Pulp and Paper (24 5/8) ,which was recently split 4 for 1, also appears to have resumed its uptrend. Container Corp. (43) has a very strong potential pattern and could approach at least the 50 level.Another very interesting issueis St. Regis Paper (19 7/8). It is also another potential candidate for price appreciation. Technically it appears behind the market but there is some overhead supply of stock that may hold it back temporarily. EDMUND W. TABELL WALSTON & CO. Th mernordndum I not to be ,on!rued ,n an offer or 5011(1Ial,on 01 offer!. to buy or sell anv secuntlQs From t,me to lime Wdlston & Co. or any partner the'col mav hdV(! ell) Interelt In !oomc Of ali of the sccurltles mentioned herein The toregolng mille,,1 hilS been prepared by us as a maHH of ,nformat,on only It 1\ bdled upon onformatlon believed reliable but flot necenarlly complcl. Ii n01 guaranteed as aCC\lf'lte or final, dnd IS not Intended to forectoc l'ldcpendcnt ,nquHV

————————————————————.———- ———, Walston e- Co. t.iEMBERS NEW YORK STOCK EXCHANGE ANO OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Swd,ld) OFFICES COAST TO COAST CONNECTEC BY OIE RIVAT WIRE SYSTEM TABELL'S MARKET LEnER December 18, 1953 The slow downdrift from the December 3rd rally highs of 285.20 in the Dow-Jones industrials and 99.49 in the rails continued through Tuesday when lows of 277.49 and 95.13 were reached. The market reversed its trend on Wednesday when both averages rallied sharply. The advance continued at a lessened pace for the balance of the week but neither average was able to decisively penetrate the early December highs. The industrials did the better job with a week's high of 284.55. The rail high was 97.75. The rail average is also still below the early November high of 99.18. A third failure to penetrate the 99-100 area would be a discouraging development for the carrier portion of the market. Ability of the industrials to reach 286 would indicate a further advance to 290-295. A decline below this week's low would indicate 275-272. However these moves by the averages are mainly of academic interest. Individuai issues and groups will continue to pursue their diverse patterns. The paper group mentioned in last week's letter continued its strength and Mead cor. advanced over two points to ' ' reach 29 1/2 and has br9kn out on the ups de of the two-year trading range. United Fruit (45-I have been bearish on this stock for three years and have consIstently recommended its sale. It reached its upside objective erly in 1951 at 73 5/. The distributional top pattern formed in the 73-66 area during 1951 and 1952 suggested an ultimate decline to 47-43. At the recent low of 4, the stock had just about reached its downside objective. Some further time may be needed to enlarge the po- tential base, ,but the stock now appears to be in a long term buying area. However, there does not seem to be any particular need for hurry and would not buy on strength but rather during periods of market heaviness. There is overhead supply at 51-53 that may take time to penetrate. Despite its improving technical action, there. are still plenty of clouds 6n the horizon of the world's largest banana grower. A substahtial – amount of the company's acreage in Guatemala has been expropriated by the communist-tinged government and Costa Rica is demanding a larger share of' the profits. In addition, minority stockholders of International Railways of Central America have brought suit against the company. However, the decline to a five-year low may have largely discounted these uncertainties. United Fruit has been a most successful enterprise with good long term growth rate of sales and profits and uninterrupted dividend payments since 1899. C6ntinued strong demand and firm prices for bananas are in- d1cated for the intermediate term. In addition to bananas, other products include sugar cane, cocoa, abaca and oil palm. The company owns acreage in Cuba, Honduras ,Costa Rica, Guatemala, Panama, Colombia, Ecuador, Dominican Republic and Jamaica. The company operates 65 steamships, pri- marily to transport the company products. There are also 1525 miles of railroad loading and unloading docks and sugar mils anQ refineries. arnings for 1953 are estimated at around 5.00-5.25 for each of the outstanding 8,775,000 shares of common stock. There is no funded debt or preferred stock. This will be an improvement over the 4.32 per share earned in 1952. The earnings and dividend payments of recent years follow – Earnings Dividends Earnings Dividends 1948 1949 1 11950 6.81 6.25 7.54 4.00 4.00 4.50 i1951 1952 1953 5 80 4.32 5.00 est. 4.50 4.00 3.50 . The indicated regular dividend rate has been 3 annually since 1951, This has been supplemented by extras. A 501 extra payment was declared in October,1953. Substantial capital outlays have been necessary in recent years for research and increasing yields per acre and as a result these capital expenditures have exceeded the annual depreciation charge. Depre'ciation charge for 1953 will most likely be around 2 per share. This trend may continue for another year or so and may' ,hold down dividend extras. However, even on only the 3 regular dividend, the yield is about.6.6. On a 3.50 dividend the yield would be 7.7 and about 8.8 on a 4 dividend. This is an excellent yield on a quality issue of the type of United Fruit. The excellent yield and long term appreciation potential,plus the improving technical pattern, appear to sufficiently offset the risk of further political uncertainty to warrant purchases of United Fruit around 45 for long term holding. EDMUND W. TABELL WALSTON & CO. -'- Thl memorandum IS nol to be construed as an offer or olullallon of offer to buy or all any e(Urltles From time 10 lime Walston & Co, or anv partner lht''tof may have an Interest In some or ,11 ol the se'LHltle5 mentioned hereIn The ioreqolllg matenal has been prepared bl' 1,15 a5 a maHer 0/ Inlormahon only II 15 baud upon Informallon believed relIable but not neceHlrLly complete, 15 not gU,Hanteed a5 iccurale or Ilnal, dnd 15 1'101 Intended to loreclose Independent InquIry

– ,, MEMBERS NEW YORK STOCK EXCHANGE AND 6;Hh LEADING STOCK AND COMMODITY EXCHANGES O'S FRACISCONEW YORK PHILADELPHIA ANGELES' SAN LUGANO ISwtwlood OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM. TABELL'S MARKET LETTER ) December 24, 1953 i .. Both averages falled to better the December 31'd rally highs of 285.20 on the Dow-Jones industrials and 99.49 on'the rails. The industrials made the nearer approach to reach 284.69 on Monday, but the rails continued their unfavorable action and could rally to only 97.75, almost two points below the December 3rd high. Later in the week the rail average dropped below the December low of 95.13 and now appears to be in a downtrend. A testing of the September low of 90.39 is lndicated. I have advised avoiding the rails on the recent rally but if the average again reacted to around the 9189 area, I would advise the purchase of selected rail eqc1.ties. The industrial section of the list also dropped sharply during the week, but at Wednesday's low of 278.14, the average was still above the December low of 277.49. The industrials are now in a rather clearly defjned trading shelf between rOQghly 285 and 278. Ability to reach 286 would presumably indicate a further advance to the 290-295 level. A decline to 277 would jndicate a further drop to the 272-270 level. If this occurs, it would be a construct,ve development. Such a decline would be a 50 correction of the thirty-point advance from the September low and would place many issues in a good buyng range. The coming week wjll be the last opportunity to establish tax losses for 1953. Tax loss selling undoubtedLY held down a great many issues and an eaSing of the pressure could, result in better market action. There are a s,zeable number of issues that have declined very sharply over the last two years and are now at or approaching their downside objectives indicated by my techncal work. Some further time may be needed to bUild up basic accumulation pa,tterns but issues of this type appear to have quite thoroughly discounted most potentially unfavorable deveop ments and appear to offer a minimum of downside risk. United Fruit,which was reviewed In last week's letter, is an issue of this type. Additional issues are listed below Abbot.t Laboratores Allegheny Ludlum Steel Allls Chalmer's American lscose Blaw-Knox Bucyrus Erie Certain-Teed Crane & Company Deere & Company Eagle Picher Elliott Co General Railway Sgnal Glidden Company Industrial Rayon Inialld Steel International Harvester J0hns ManVille .Joy Manufacturing Kennecott Copper', Motorola' National 'Distillers New York Airbrake Parke Davis Pennsylvania Salt PI f,tsburgh Coke & ('hem. Ullited Fr;iit Western A1Jto Supply Yale & Towne -Pr-ic-e 1951-53 H1,gh – 64 1/2 52 1/8 44 6j, 5/8 36 78 J.7 22 1/4 22 28 5/8 12 18 1/4 28 42 1/2 25 37 27 27 3/8 337335 4 29 48 1/2 41 68 1/2 41 62 1/2 27 36 5/8 63 78 3/4 32 63 , 39 3/4 2 1/8 31 4 3/4 i 37 1/4 23 1/8 32 63 1/8 41 71 19 45 733953 8 47 57 7/8 36 48 Plus stock. Yield 4.0 7.0 9.0 6.9 7.1 9.0 .o .0 6.0 7.9 8.2 9'.2 6.9 7.3 8.5 7.4 6.7 9.5 94.. 5.3 8.9 4.3 4.2 6 5 7.7 7.9 6.9 Fitch Rating BBB BB BB BB B B CCC B BB B B B B BB BB BBB BB B BB B B B B BBB B BBB BB B A HAPPY NEW YEAR TO ALL. EDMUND W, TABELL WALSTON & CO. Th,s mily mheameora'nlnd,unmr('r,estno,tn 10 be 50me construed or all of as an oHer , or soI'C,'' I,a I Ion f 0 Her5 t 0 the secunt,es mentIoned h,',reln Th,e b or sell any ecuritlU Frm lime 10 ',me Wlslon & Co, or any partner Ihe'eof fourye9lOgd matenal ha5 as accurate been prepared or final and IS blf nol u,sntasndead m1a0 ttfeorreodfosleOf,ormdeaplieonndeo1nly'nquItlrV,5 bled upon lOfo,matlon believed relIable but nol necessarily tomp e e, IS no guran ee ,

P I . … – … ,.. … …. ., .. '.. Walston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISw,.,Id) OFFICES COAST TO COAST CONNECTEr; BY DIRECT PRIVATE WIRE SYSTEM TABELLS MARKET LEnER December 3. 1953 The stock market, as measured by i;he Dow-Jones indu.s tr J aJ arId rail averages, showed a year-to-;YO.31' loss for the f5.!'st Gime s1 nce 1948 despite the fact that both earnings and divldends weT' higher tn 1953 than in 1952. The industrial average closed at 291.90 on Deember 31, 1952. Today's close was 280.90, a loss of 11.00 pOints. The comparable figures on the ratl average are 111.27 and 94.03 01' a loss of 17.24 potnts. During the year the averages reached btghs of 295.06 and 112.87. The industrtals reached their high 1n January ard the rails tn March. he aCGal high of the move in the rails was attained in December. 1952 ac 113.94. Both averages reach ed their lows of the year in September at 254.36 and 90.39. In my fOrecast for 1953, issued when the tndustrial average was aroun 290, I expressed the opinion that 1953 would be neither a bull or a bear year but rather a combination of both with private bull and bear markets in individual securities and that the range of the industrial average would be between 300 high and 250 low. To quote a paragraph from my January 2. 1953 letter – Since 1949. ! have stated that the market leaders would be the high grade 'blue chip' issues with the speclative issues dOing little or nothing. This has been the pattern up to now. I believe the market leaders on advar,c-,x'b pl'Joises over thE next two years will be the 'light blue chips' — the issues slightly below the qua.l.Hy of the blue chips. These are issues with good dividend records. good growth prospects and high yield . There are a grea'; many that have just started to move. I do not believe the very speculative. low-priced issues are ready to move ahead on a broad scale. 'l'hey will come ini;o the pi,cture at a later date after the consoli- dating and readjusting phase is completed. Group action in 1953 will be ex- tremely diverse and selectlon will be all important. Fortunately, the forecast worked out rather well with the exception of the fact that the light t.luG chips did very little as a grop. Some moved ahead and some moved lower. What is the oJ.tlook for 1954 Most economists believe that general business will work somewhat lower in 1954. Estimates vary from a 5 to 15 drop. If these predictions trn out o be approximately accurate, does that mean that the stock market. will also work lower I do not believe so. The stock market has been ant.lclpU.ng a decline in business. At present price-to-Ernings and pr.ce-to-divi.dend ratiOS, the market has already discounted a considerable amount of potentially unfavorable news. I believe the 'market is less vvlnerable at the moment than any time in the last three years. I believe the low of the year wll be reached ,in the first six months of 1954, probably in the first three months. I believe the low will be above the September, 192 low of 255. My estimate is 265, but it l.s very possible that, ',8 too low. From the low point, an advance will start that will carry through the balance of the year. The high will be around 325. The high grade issues, favored by lnstitutional investors. will con- tinUe their excellent. action but may not move over as wide a vange as jn previous years. I believe t.hat. delayed advance in the light blue chips will start. in 1954. Renewed investor confidence could bring these issues more in line with the hlgher grade issu.es. I still do not look for any broad advance in the low-priced speculative iss….es in 1954, although, of course. there will be many indtvj dual issues of this type that '111.11 lOrlc higher because of special reasonS. However, a broad advance would require the participation of a spec.ulatively minded public. Conditions will most likely not. be ripe for that'untiJ. later in the advance. However. many of these issues are very cheap and, although conSiderable patl.ence may be required, Sizeable percentg,ge apprec1.at.on is 1IC prospect over the longer term. EDMUND W. TABELL WALSTON & CO.