SAN DIEGO MARKET WATCH
Despite losing its capital infusion deal and reporting enough red ink to plunge its net worth to less than $1.3 million, or 0.3% of its $403 million in assets, Sun Savings & Loan’s stock dropped only three-eighths for the week, to 3 1/2, according to Irving Katz, director of research at San Diego Securities.
Someone continues to gobble up Sun stock, however, said Katz. A possible reason: the Treasury Department is expected to urge the Federal Home Loan Bank Board to allow non-financial companies to acquire troubled thrifts as a way to ease increasingly severe pressures on deposit insurance funds.
The plan is to be unveiled early next month, said Katz.
San Diego companies that are interest-rate-sensitive fared well in the stock market last week, according to Katz.
With interest rates on 30-year Treasury Bills falling below 9% for the first time in seven years, some of these companies hit new highs.
Home Federal Savings & Loan rose to 34 1/8, an all-time-high, while San Diego Gas & Electric rose to an all-time-high of 30 3/8.
Imperial Corp rose more than 20%.
Intermark hit a new high of 17 3/8, as its subsidiary companies Pier 1 and Sunbelt Nurserys made new recovery highs.
Meanwhile, Intermark named Kraig W. Kramers as president and chief executive of Graphic Arts Center, the company’s printing subsidiary in Portland. That’s significant, said Katz, because it means that Intermark’s US Press unit will be bolstered in anticipation of a public offering.
International Totalizator’s stock rose 1 1/8, to 9, despite news that it had lost a lucrative California lottery contract to GTECH.
Langley Corp. rose five-eighths as it announced a doubling of first-quarter sales and earnings, while Specialized Systems Inc. made a new high of 2 1/8.
Sym-Tek Systems rose 1 on its announcement of a special research and development team to automate handling and testing processes of semiconductors.
And Cubic Corp. dropped 1 as Wall Street analysts revised earnings projections downward for fiscal 1986 after the company’s $4 million first-quarter write-off for scheduling delays in an Air Force simulator contract.
