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ThAts stolen. No other reason why to take it off. My opinion.
Nope that does not denote stolen.
Its a legit watch and in the time period for a little legal issue that required some US sold watches to be drilled like that. Uncommon, very little affect on price. providing the serial puts it around the late 60's early 70's. Scroll through @X350 XJR 's link and there is a nice article on what is going on.