Walston &- Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LU,GANO (Sw,Idl OFFICES COAST TO COAST BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET LEnER September 2, 1955 The Dow-Jones industrial average reached new high territory at Friday'S high of 473.52, but the lack of volume on the advance casts considerable doubt on the ability of the market to support a sustained rise at this stage of the market pattern. Friday's high was reached on volume ofl,700,OD( shares, while the July peak of 471.15 and 471.73 were reached on volume of 3 million shares and 2t million shares, respectively. In fact, while there was not a single day in June and only one day in July when trading fell be- low the 2 million share mark, more than half of the -ugust sessions were below that figure. This waning upside momentum dictates a certain amount of-caution despite that the upside penetration of the two-month old 471-446 trading area indicates the posSibility of a further rise to the 480-490 area. However, the industrial average is the only market aver- age to reach a new high. The rails at the week's high of 157.65 are still . considerably below the June of 164.59 and the various combined aver- ages (both industrial and rail) are also below comparable highs. In trading accounts would continue the policy recently advocated in this letter of taking profits on strength. In investment accounts see no reason to change the overall pOSition, but would use strength to sell si- tuations of below average attraction and transfer into issues on our recommended list such as Joy, Dresser, Eagle Picher, Hewitt-Robins, etc. Would expect the market to hold in the broad 500-400 area for the fore- seeable future with selected issues continuing to show individual strength while the balance of the market consolidates or declines. & DECKER Current Market Current Dividend Current Yield 76 3.15 (E) 4.2 (E) Black & Decker was originally men- tioned in this letter in February, 1954 at a price of 38. At that Funded Debt Common stock 5,170,000 430,042 shs. Net' PerShare, 1',f55 7 (Ef Net Per Share,1954 6.66 — time it was pOinted out that the – company was embarking on a vigor– ousexpans-ion – , ize on the growing do-it-yourself market for its comprehensive line Sales-1955 40,000,000 (E) of portable power tools. It was Sales-1954 35,140,000 pointed out that the heavy rate of Market Range 1951-1955 76 – 31 5/8 capital investment necessitated a payout ratio of only 50 of earn- Based on estimated 1.50 annual ings but that this might be expect- rate on new stock and giving ed to be liberalized on completion effect to 5 stock dividend and of expansion and when debt reduct- two-far-one split. – ion charges were reduced. Since – – – – – – – – – – then both the fundamental picture and the market action of Black & Decker have continued favorable. Earnings are estimated to be about 7.75, a new high for the fiscal year ending September 30,1955 and the stock has almost doubled in price. Yesterday, the Directors declared a dividend of 5 in stock, supplementing the regular 501 quarterly, to be followed by a 2-for-l split. Thus, the present holder of 100 shares will wind up with 210 shares when all the new stock distributions are completed. With capital expenditures completed, Black & Decker is still deserving of scrutiny deepite the sharp price advance. There is every reason to ex- pecttheodo-it-yourselftrend to continue over the long term should improve correspondingly. Even at present levels, cash flow is gene- rous due to liberal depreciation charges. Thus, the big question is the future trend of dividends. The 2.00 annual rate on the present stock was supplemented by a 1.00 extra in 1950 and 1951 before expansion was under- taken and with capital expenditures about to level off there is no reason not to suspect a 1.50 rate on the new stock which works out to be an indi- cated dividend of 3.15 based on current capitalization. Over the longer term it is expected that this rate could be liberalized further as earnings improve. From a technical point of view the long term objective continues to be 135. First objectives have been reached and it would be logical to ex- pect some consolidation now or following the split.Support is encountered in the low 60s on the present capitalization and commitments made in this area should work out to advantage. ,ai I I ,t,

Walston &Co. MEMBERS NEW YORK STOCk EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PH!LADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw;',,d I OFFICES COA.ST TO COAST CONHECTEC BY DIRECT PRIVATE WIRE SYSTEM EDMUND W. TABELL INSTITUTIONAL LETTER September 7, 1955 After reaching a high of 432.76 in April, the Dow-Jones industrial average reacted to a May low of 412.60. Just at about that time, my May 20th letter said- From a timing viewpoint, it is probable that after some further irre- gularity, the market will have its traditional Memorial Day to Labor Day ad- vance. After that, it be normal to expect a return to the lower part of the wide trading area later in the year. This contemplated pattern sug- gests a market that will necessitate owning the right issues if capital appreciation is the prime motivation. It also suggests a market where over- exploited issues should be avoided. In the 1951-1953 market, Celanese drop- ped from 58 to 20 at the same time that Seaboard Air Line was advancing from 18 to 48. Similar divergence will undoubtedly occur in the contemplated trading shelf in which the market may hold for a considerable period of time. ' With the exception of a few minor changes, I see no particular reason to alter the opinion expressed four months ago. The traditional Summer rally has taken place. The advance was greater than I expected. My projection was a move from 415 to 435-450, or about thirty-five points. Actually, the industrial average reached a high of 473.52 on the trading day before Labor Day and 478.80 on the day after for an actual advance of over sixty points. As far as the trading shelf is concerned, I have recently revised my opinion. I envision a trading area of roughly 500 to .400 over the next year or two with the possibility of 40 of the individual issues working lower while 40 rest or consolidate and 20 move higher. My timing for the near term has been off a bit. My expectation was a decline from the July high of 471.73 to about the 430 level before a new high above the July peak was attempted. However, the actual August low was 445.67 which was quite a bit above my downside objective. The upside penetration of the two-month-old 471-446 area now indicates a probable advance to 480-490 level. At Tuesday's high of 478.80, this level was almost reached. The rail average at Tuesday's high of 159.29 is still considerably below the June high of 164.59. \!Ihile it is possible that the industrial average may move a bit higher,the investment odds are not very favorable at this level of the market. The technical pattern suggests a potential advance of ten to twenty pOints as compared to a possible downside potential of at least 430 or fifty pOints lower. Pre-supposing earnings of 36.00 a share for 1955 and a dividend payout of 20.00 a share on the Dow-Jones industrial average would result in a PiE ratio of 13.9 and a yield of 4.0 at a price level of 500 . .'.t a price level of 400, the piE ratio would be 11.1 and the yield would be 5.0.These figures compare with the following for the past ten years with piE ratios and yields figured at the yearly high prices PiE Yield Yield 1946 1947 1948 1949 1950 16.0 9.8 8.2 8.2 7.7 3.6 5.0 6.0 6.5 6.9 1951 1952 1953 1954 11.0 12.0 11.1 14.2 6.0 5.2 5.2 4.3 At a price level of 500 for 1955, the 13.9 PIE ratio would be higher than all of the above years except 1946 and 1954. On a yield of 4.0, the yield would be lower than every year except 1946. At a price level of 400, the 11.1 PIE ratio would be higher than five and lower than three of the years from 1946. The 5 yield would be better than two previous years, about equal to one more and below six previous years. All of this indicates that at 500, the industrial average would be amply discounting the expected 30 increase in 1955 earnings over 1954 and the approximately 20 increase in dividends. Also at 400, the market would not be too drastically undervalued compared with the PIE ratios and yields of the past ten years. Of course, the market was greatly undervalued during most of that period and it would require quite a drastic change in investor sentiment to bring about a return to 1950-1953 ratios. EDMUND W. TABELL vH.LSTON & CO.

Walston &- Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISw,'wl.,d I COAST TO COAST CQ4NECTfC BY DIRECT PRI …..ATE WIRE SYSTEM TABELL'S MARKET LEnER September-9, 1955 The market pushed selectively higher last week with the Dow-Jones Industrials making a new high at 478.80. The rails, at the week's high of 163.32 were still below the June high of 164.59, although the group was showing good strength at week's end. As indicated in our last week's letter, I it would seem that somewhat higher prices are indicated, but at this stage the advance is expected to extremely selective and a considerable amount Iof trading agility will be reqttired. Upside objective on the industrials is ' about 490 and on the rails 172-179, assuming an upside breakout. It must i1 be remembered, however, that although the probabilities appear to favor the- –upll-ide7 -duwnside-pot-entialsre-cun-siderab-ly—great-er;– thus-creat-ing-unfavor- – – .I able investment odds. New buying should be undertaken caution and Istrength should be utilized to switch out of unfavorably-placed commitments. Statistics DRESSER INDUSTRIES,INC. Dresser Industries, which has I Current Market Current DiVidend 46 2.50 been on our recommended list for some time, attracted a good deal I' Current Yield 5.4 of favorable market attention in Long Term Debt Common (shs.) 12,500,000 2,006,815 A the past two days, based partly on a talk by R.E.Reimer,Vice Presi dent and Treasurer, at the New Net Per Share,1955 5.00 E Society of Security on Net Per Share,1953 5.03 B Thursday. Mr. Reimer estimated Sales,1955 Sales,1954 160,000,000 E 130,000,200 B Mkt.Range 1951-1955 47 3/4 – 1/4 that Dresser's sales for the current fiscal year will be about160 million as compared to about 130 million last year. Earnings A – Gives effect to full conversion of preferred. E Kstimat-e-.—- – — – should be about 5.00 per share vs. 5.65 last year of which 331 was ..Don-recurl'-ingtncQme …-J2.Qth- figures have' been adjusted te-re- B – Consolidated with Lane-Wells. flect the operations of Company, Dresser's newest subsi- diary, and the 1955 estim' C takes cognizance ,of the fact that 100,000 additional Dresser shares will be out- standing at the end of this year due to conversion of preferred stock. The attractiveness of this earnings picture is further enhanced by the fact that it includes a loss of million or 751 a share on Dresser's Securities Engineering division. The main product of this division-is the tri-cone or three-cornered drilling bit, extensively used for deep-well drilling. Since this proctuct is still partially in the experimental stage, it has shown operating losses so far. Mr. Reimer estimated,however, that over a period of time the division can show around 27 million dollars sales and contribute proportionally to Dresser's operating profit. Dresser has changed its character considerably over recent years. For 1955, over 50 of sales will come from expendable items. Since these items have a far more stable demand than do capital goods, Dresser's sales and earnings can be expected to-show far less variability than in the past. Greatest to volume non-expendable items came from the mer- ger with Lane-ltJells, a specialized oil well engineering service. Another major expendable item.is drilling mud,which must drilling.Major-components-for this material are Barite and Bentonite of which Dresser owns the largest depOSits in the world. These mineral reserves are not included on the balance sheet,incidentally,but have a possible potential value at around 20 per share. With economists predicting steady growth of oil demand over the long term,Dresser products, which are the cornerstone of the oil industry, can be expected to experience a dynamic sales growth. Bought on any weak- ness, Dresser appears to be one of the cheapest participations in the ex- panding oil and gas industry. The long term technical objective for Dresser is 75-80. Over the term, ability to reach 48 would indicate 53. There is support at 45-43 where the stock should be bought. EDMUND VI. TABELL

.. 6 Walston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,'wld I OFFICES COAST TO COAST CONNECTfC BY DIRECT PRIVATE WIRE SYSTEM TAB Ell'S MARKET lEnER September 16, 1955 The market extended its gains during the week and the Dow-Jones indus- trial average reached a newall-time high at 485.73. This average is approach ing its short term objective of 490 and may need some consolidation. The 470 level should furnish near term support. The rail average pushed through a lOG of overhead supply to reach a fractional new high at 164.89 compared with the June high of 164.59. Perhaps a more decisive penetration is needed and this may occur either shortly or after a consolidation. An upside penetration would -indi-c-a-te -a pos-sef-bcle 172—-l'J9. i-f they– peFlet-rate, a safer trading opportunity than the industrials which have already advanced sharply. The market of the past week clearly illustrates the futility of paying too much attention to the various averages at this stage of the market pat- tern. Individual issues moved ahead sharply and the industrial average ad- vanced ten pOints and yet, from Monday to Thursday, the total number of daily declining stocks of 1860 almost equalled the daily number of advancing stocks of 1896. This, together with other breadth-of-the-market indications of waning upside momentum dictates the advisability of a rather cautionary attitude despite the seeming strength in the averages and spectacular runups in individual issues. It warrants a continuation of the policy of lightening commitments on strength in both overvalued and below average issues and confining purchases to seemingly undervaluei situations that are selling at realistic price to earnings ratios and are sl-owing reasonable yields and have strong technical patterns with a minimum dcwnside risk. Issues of this type are continually reviewed in this letter anJ remain suitable for longer term and intermediate term holding in capital appreciation accounts. In investment accounts, there is no need to disturb sound holdings. The long term trend of prices is still toward higher levels. In trading accounts, the situation is different. This stage then of the omr agrokeota;ifsOratutrrfae dtoer's paradise – handful of stocks that are really moving. – , f I GENERAL RAILVIAY SIGNAL StatistiCS Perhaps more than any other industry Current Market Current Dividend Current Yield Funded Debt & Pfd. Common Stock Net Per Share,1955 Net Per Share,1954 59 2.50 4.2 None 337,587 shs. 3.50 (E) 3.25 the railroads of America are faced with a problem of cost control. Competition from other carriers,federal regulation and other factors have necessitated comprehensive programs on the part of rail carriers to trim operating expenses and protect thinning profit margins. Heretofore, the major effort in this Sales, 1955 Sales, 1954 17,000,000 (E) 15,990,000 direction has been dieselization,the replacement of antiquated steam loco motives by up-to-date diesel equip- Market Range,1955-52 60i' – 25 ment. On most of the country's major Preferred issue to December 31, -1955. be redeemed – – carriers, these programs are either complete or well on their way. Now — the raii-men are beginning to slash at another item — track maintenance One of the best ways of cutting down maintenance of way is to eliminat surplus track — by making one track do the work of two, or two do the work of three or four. New elec tronic developments, similar to those whicr,' have revolutionized the business machine industry, are making this possible. Most important of these new developments is CTC, Centralized Traffic Control. Under this system, one man can keep watch over miles of track, with the movement of each train plotted on an elect-ronic board in front of him. By pressing a button he can accuate switches and signals many miles away and arrange for two high-speed trains approaching each other on a single track to pass on a high-speed siding without either train having to stop. By means of this system it often is possible to make one track -2- and a few sidings handle the same amount of traffic that two tracks handled before. The savings provided by CTC are often astronomical. If it is installed when track is due to be replaced, replacement costs of 30,000 per mile of track can be eliminated. In an average case, maintenance of one track instead of two may save a railroad 2000 to 3000 annually per mile. From this it should be obvious that CTC can pay for itself in many cases within a very short while. In addition to CTC, new electronic signalling and switching equipment can help railroads to effect great savings in yard costs, enabling one or – .,,– -twG,,–men-tG-Har.ld 1e-a–l-lsw-it G-h.;ingand-c-las s 1-fy-ing-on,., Itis also possible that CTC can be applied to industrial plani traffic controls and airport and highway controls. All electronic switching devices made in this country are manufactured by two companies Union Switch & Signal and General Railway Signal, which cross-license all patents between each other. Union is a wholly-owned subsidiary of viestinghouse Airbrake and accounts for a fourth of Irlestinghouse I s business. General Railway Signal almost entirely is in the switching business and the 337,000 shares of common will be direct beneficiaries of any growth in demand for electronic signalling devices. On this basis the shares of General Railway Signal seem to have attraction for long-term holding. General Railway Signal was established in 1889 and has long been a major producer of railway signalling equipment. Reported earnings over the past five years have averaged 3.73 with last year, as could be expected due to railroad results, a poor one at 3.25. However, there is a strong indication that the downward earnings trend has reversed itself. For the second quarter of 1955 the company showed 93 cents a share, an annual rate of 3.72. Backlog has increased to a point 65 above the end of 1954 and this should begin to manifest itself in earnings shortly. With railway Signal demand still in its infancy, the future looks extremely promising. Aa-jor-newerd-ero-was- one- road amounti1g to million. New York Central will remove two of the four main tracks in 185 miles between Buffalo and Cleveland and install CTC. This may set the stage for Similar elimination by major roads. Another plus factor is that reported earnings during the years 19511953 do not tend to show the true earning power of the company. During those years the company operated at a huge profit margin and was subject to heavy excess profits tax. Reported earnings for the three years were 11.21 or an average of 3.73 per share. Had the present 52 tax rate then beenin effect, per share earnings would have averaged close to 6.00. It can thus be inferred that, given an increase in demand,such as that foreseen, earning power can be increased conSiderably due to widening profit margins. Furthermore, the company will, in all probability, be 'able to increase production without a dollar spent on additional plant. It is now operating on a full one-shift capacity. vlere demand to justify it, it would be very easy to add another shift. With demand increasing and no capital expenditures called for, all benefits accruing from increased sales will pass on directly to the common stockholder since there is no debt or preferred. This,together with the small commoncapi talization,iso.f great benefitto th,……commonholder. – The lack of any capital reqUirements, together with an excell'ent working capital position, insures the continuance of the high 60 payout ratio. With the outlook pointing to generous future earnings and dividends,plus stable and continuing demand,General Railway Signal appears to have exceptionally attractive long-term prospects. The technical pattern is very constructive with a long-term 140-150 indicated. Over the near-term, the objective appears to be 64-69. There is support around 50-48, thus offering a small downside risk with a huge upside potential. This recommendation, as are all the recommendations of this letter, is for long-term holding and not necessarily for trading purchases. ; EDMUND vi. Tf,BELL VlAL.3TON & CO.

Walston 5- Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA.' LOS ANGELES SAN FRANCISCO LUGANO ISw,hed.,d) OffiCES COAST TO COAST CONNECTEC BY OIRECT PRIVATE WIRE SYSteM EDMUND W. TABELL INSTITUTIONAL LETTER September 21,1955 On the constructive side of the market picture is the continuing good business news. This will result in some excellent third-quarter and full- year earnings reports and a considerable number of dividend increases and year-end extras. Earnings on the Dow-Jones industrials are estimated at 36-38 and dividend payout at 20-21. These figures compare with 28,40 earnings in 1954 and dividends of 17.47. These are increases of 34 and 20 for a outs will truly also i remarkable year ncrease sharply lyovreirse1.95R4.ail and utility earnings and pay- The important question,of course, is whether or not the market has sub- stantially discounted the excellent business conditions and earnings pow pre- vailing. At estimated earnings of 38 and a dividend payment of 21, the in- dustrial average at 485 is selling at a price-to-earnings ratio of 13.6 to yield 4.6. These figures are unfavorable when compared to the PiE .ratio of 7.7 and a yield of 6.9 atthe 1950 lows, but relatively favorable when com- pared with 18.5 dustrials today PIE are and 3.4 yield a selling at about t the the sa1m9e45P-1IE946rahtiioghys . i In eld fact, the inas they were at 408 at the beginning of the year in anticipation of first quarter earnings. It is only when we move away from the bUSiness background and move into action that we begin to see signs that indicate that a certain amount of caution is necessary. Breadth of the market charts continue to indicate waning upside momentum. Market Action Inc., a service that special- izes in this type of technical work, has a series of eleven weekly grap.hs of breadth of the market. Only one of these graphs, the action of the Dow- Jones industrial itself is favorable on a long term basiS. The others are either doubtful or unfavorable. They include work on such things as issues traded, highs and lows, upside and downside volume, advancing and declining stocks, odd lot trading, member trading, etc. The trend of other sectors of the market also indicates caution. The rail average, as contrasted with the industrials, has not reached a decisive new high since June. However, this average is close enough to the 165 peak to decisively penetrate into new high territory and indicate 172-179. The London industrial average has been acting poorly also and it is ten weeks since it reached its high of above 220. It is now around the recent low of 194T. he bond market has been acting poorly and has been in a downtrend since last year. This ultimately should have an effect on the stock market. The following excerpt from a recent Investment Report published by Arthur Wiesenberger & Co. on The Three Step and Stumble Rule is very interesting. The rule states Whenever three successive rises occur in anyone of the three rates set by the monetary. authorities the investor should beware, for some time there- after the stock market is likely to suffer a substantial, perhaps serious setback. There has been no exception to this rule in the whole history of the stock market since the establishment of our Federal Reserve System, Today, modern governments attempt to control the supply and price of credit in an effort to keep their economies on an even keel. In this country the monetary authorities endeavor to control credit'(apart from pronounce- ments and propaganda) through 'open market operations' – that is by buying or selling bonds, notes and/or bills – and by fixing three rates (1) the margin required for stock purchases, (2) the amount of reserves the member banks must carry with the Federal Reserve bankS and (3) the rate at which member banks can rediscount paper at the Federal Reserve banks. The 'Three Step and Stumble Rule' simply means that when and as a period of bUSiness expansion and stock market rise has lasted sufficiently long, and gone suf- ficiently far, for the monetary authorities to make three successive moves to alter credit conditions, some kind of reversal is in the offing. The significant point is that now, for the first time in 7 years, we have had 3 upward steps in the rediscount rate. Does that, in accordance wi th the rule, portend trouble for the market lve are inc lined to think so – but probably not immediately. There is a very definite lag in the effect of banking credit and monetary conditions on the stock market. This lag has varied all the way from 2 months in 1920 to 14 months in 1929. While there is no sign of any immediate vulnerabilitY,I continue to ad- lv\lorcicaete raiseca,Iutiloouoks afottritaudpeo.sAsifbteler rsoemtuernfutrothethre time and possiblYosom level beI'o''F' e t hfue r ther lnnO a.u TIr;s If nct reS1Jme ri (ofIJtruea offer or so.lldt,',on of offers to buy or lell F rl't'ttIn6JlitJPfJd-fN1'.I.!..fasWalllomndU&erCoof, oflrTf.o!IrIImV aptlloHnIMornlytherHeofI,I may have an Int'rut In some or all of the SeCUrities me,ntloned herein The m Inr.ot Intended to foreclose Independent InQUirY upon information believed reliable but not necenar,iy complete, 15 not guar.!n ted on -VV-filJlJ.L V 0 0; v V. .1 -……-…………..

Walston &- Co. NEW YORK NEW YORK STOCK EXCHANGE ANO OTHER LEADING STOCK AND PHILADELPHIA LOS ANGELES SAN FRANCISCO OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE wIRe EXCHANGES LUGANO ISw,t..,IdJ TABELL'S MARKET LEnER September-23, 1955 The rails, after failing in last week's attempt to decisively penetrate the June high of 164.59, are again in the process of attempting an upside breakthrough. Friday's high was 164.65. Ability to decisively penetrate the over five-month trading area in the rail average would indicate an upside possibility of 172-179. The Dow-Jones industrial average reached its short term upside objective of 490 at the week' high of 489.94 and while there is no indication of an immediate top, some consolidation may be needed. The 470 level is a strong support level. The rails, if they penetrate upside, would seem to offer better near term profit possibilities than the indus- 'is -possible that–the–rndustrial- average-mi'ght hord-in' roughry – – the 490-470 range for a time while the backward rails catch up. The over-all pattern after that possible occurrence would then give some indication of the direction of the next move. Of course, all discussion of averages is academic. Particularly in short-term trends, individual stocks even in the same group will have diverse price action. The intermediate pattern remains the same. While there is no indication of immediate vulnerability, many individual issues have reached upside ob- jectives and I would continue a policy of lightening capital appreciation accounts on strength when upside objectives are reached. Below is a summary of my recommended list. While some of these issues have advanced sharply since our last compilation, I suggest continued hold- ing as the ultimate upside objectives are considerably above current levels and there are support points not too far below the market. In cases where two objectives are mentioned, the lower objective is the nearer term poten- tial followed by a resting period and possible attainment of the higher ob- jective over the longer term. Present Price Price Recom. Yield Aevice Alleghany Corp. 10 – A-n-e-gheny-Lutnum—-5-S— Allied Stores 61 American Chain 46 Amer.Potash B 98 Assoc.Dry Goods 35 Barber Oil Black & Decker Calgary & Edmonton 55 77 17 Celanese 24 Chain Belt 55 Cities Service 62 Coca-Cola 135 Colgate Palm. 58 Cornell Dubilier 33 Cutler Hammer 72 Dow Chemical 57 Dresser Ind. 48 Eagle Picher 38 Gen'l Rwy.Signal 62 Hall Printing 24 Hewitt-Robins Joy Mfg. — 39 – 61 Magma Copper 115 Monsanto Chern. 48 Montana-Dakota Util. 29 Pacific Petroleum 12 Pan-Amero World Air 19 Raybestos Man. 58 Robertshaw-Fulton 30 Simmons Co. 47 Sinclair Oil 58 United Fruit 56 Western Auto Yale & Towne 29 68 3 3/4 38 30-33 40 26 59 39 16 31-37 30-35 38 122 60 21-22 57 38-40 33 22 59 16-17 25-30 47 75 31 26 11 11-13 42 21 36 46 47-50 25 45 – -HH(oilrda-fCfo5rI'11J2s.-1S7u. ppS-uoprtp-oartt aSTt '850. . 5.0 Hold for 98. Support at 57-55. 5.4 Hold for income. Support at 41-39 2.2 Hold for 120-150.Support at 88-85 5.1 Hold for 45-65.Support at 33-31. 3.6 Hold for 80-115. Buy at market. 2.6 Hold for 135. Support at 68-64. – Buy for long term speculation. 2.2 Hold for 34.Support at 22-20. 4.6 Hold for long term 78. Support at 3.2 Hold for 81. Support at 55. 3.7 Hold for 200. Support at 130-125. 4.3 Hold for 73-100.Support at 54-50. 6.1 Hold for income.Support at 30-27. 4.2 Hold for 120-140.Support at 65-60 1.8 Hold for growth.Support at 54-50. 5.2 Hold for 70-85.Support,at 43-41. 4.7 Hold for 61 to 77.Support at 33-3 4.0 Hold for 140-150.SuPP9rt at 50-48 5.0 Hold for income.Support at 20. 5.1 Hold for 85.Support at 35-33. 4.1 –Hold -for 75150Support at 55-50. – Hold for 200.Support at 100-90. 2.1 Hold for growth.Buy at 43-40. 3.5 Hold for 45-60.Support at 28-25. 0.8 Buy as long term speculation. 4.2 Hold for 27-45.Support at 18-17. 5.2 Hold for income.Suppprt at 53-51. 5.0 Hold for 40-46.Suppo'rt at 28-26. 6.3 Hold for 71-96.Suppqrt at 43-40. 4.5 Hold for 65-89.Suppdrt at 55-52. 5.3 Hold for 86.supportfat 55-52. 5.5 Hold for income.Support at 28-27. 4.4 Hold for 105.Support at 60. ED/lUff') 'oN. 'f1'!rELL J – I \, J

Walston &- Co. I MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK ANO COt-iMODITY EXCHANGES I NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISw …Id) OFFices COAST TO COAST CONNECHC BY OIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER September 30, 1955 The market, in one day, lost almost the entire August-September advanc from 445.67 to 489.94 that took thirty-one days to accomplish. Then, in a quick two-day reversal, it regained the normal two-thirds retracement to rally back to 475.13. The rails also almost covered the complete range of a five-month trading area between 165 and 150 in one day. Thus, in three days, the market completed a full cycle that usually take a month or two to acc,omplish,..Both -averages at Monday' of' !t!J6.74 and 150.67 held above the August lows. There are apparently three courbes now open to the market. (1) The market could advance to a new high in both averages shortly. (2) The market could hold in a trading area bounded roughly by the August lows and the September highs for a long period of time and break out on the upside. (3) The market could shortly penetrate the August lows. The first course might result in an advance to about the 500 level. It seems difficult to envision an advance much higher than that on the basis of the present technical patterns. It might also result in a deeply overbought condition. The second course would be the most constructive one. It would result in building up re-accumulation areas that would result in eventually higher price levels. There would be no indication of the upside objective of such a pattern until it was completed, but it would undoubtedly indicate con- siderably higher levels. The third course would result in a price decline to the 420-400 level in the industrials and 125-120 in the rails. Of course, this pattern could broaden before the lower levels. !'!oyld downside penetration , occurs. In that event, some'w-hat Just which one of the three patterns occurs is, of course, not yet certain. However, a check with other types of technical work indicates that the market has shown signs of waning upSide momentum for quite some time. For example, while industrial average was reaching successively new highs, the volume has been steadily declining. This is also true of new highs and advances and declines. In fact, before this week's break, at the high of the market, there were almost as many stocks declining as ad- vancing on a ten-week movi'Dg total. Market Action, Inc., a service that specializes in breadth-of-the-market action, has a series of eleven graphs based on this type of technical work. Its September 23rd compila- tion showed only one graph favorable with three unfavorable and seven doubtful. Of course, these indicators could improve and change the picture at a later date, but present action dictates a certain amount of caution. The fact that the possible thirty-pdint potential advance in the market is countered by a potential seventy-point decline makes it ap- parent that the investment odds are relatively unfavorable at this stage of the market pattern. This letter has been advising lightening accounts on strength and continues to do so. Would also advise switching out of issues with unfavorable investment odds into Situations with- more favorable pat' terns such as the issues in my recommended list. This list, which was reviewed last week, contains only issues that, over the longer term, have a wide upside potential and a relatively minor dO\mside potential. EDMUND 11. TABELL \!!f,LSTON & CO. 0, I II I i I I ! .Lua..