SAN DIEGO MARKET WATCH
With interest rates still coming down, local thrifts seemed to have weathered any anxieties they might have had about the ongoing refinancing of mortgages, according to Irving Katz, director of research at San Diego Securities.
Great American First Savings Bank--which will be San Diego’s largest thrift after federal regulators approve Great American’s acquisition of Los Angeles Federal--was up 1 5/8. Home Federal of San Diego was up 3 and Imperial Corp. of America was up 1 5/8 for the week.
Evidently the sale of fixed-rate mortgages and the taking into income of refinancing fees has cushioned profits for savings and loans that continue to hold their adjustable rate mortgages, Katz said.
However, Sun Savings & Loan--which did not participate in the upward movement--set a new 1986 low of 2 5/8, down 5/8 for the week, Katz said.
SDG&E; was up a point after the state Public Utility Commission voted to let SDG&E; organize a holding company.
PSA was down 5/8 after announcing that its first quarter loss would be larger than the previous year’s quarterly loss. PSA also called its convertible debentures and announced that it would sell 2 million additional shares and $75 million in convertible notes.
Intermark was not really down 4 points on Monday, Katz said. After adjusting for a 5-for-4 split, the stock remained the same.
IRT Corp. was down 1 1/8 on Monday and 3 3/4 from its 1986 high of 14, as it surprised the Street by announcing that it will break even for the fourth quarter ended March 31 and show a loss for the fiscal year, Katz said. The loss was generated by the higher-than-expected start-up costs on an automated solder-quality X-ray inspection unit which IRT has begun to ship.
Synbiotics was up 1 7/8 for the week as investors searched for small-capitalization technology companies, said Katz, who added that Synbiotics, with only 2 million shares outstanding and a market value of $22 million, seems to meet those standards.
If its research produces a big breakthrough, Katz explained, resulting earnings would be allocated to a much smaller number of shareholders, producing increased earnings per share relative to most other companies.
The year 1986 should be better for Humphrey, which was up 3/4 for the week, Katz said. Humphrey’s backlog has improved and it evidently took most of its write-offs during fiscal 1985.
Price Co., which reported a 43% quarterly earnings increase, was up 2 for the week.
Benefiting from positive reports by analysts, WD 40 continued to move ahead.
Wavetek was down 5/8 in reaction to a recently filed class action suit that alleged management misconduct.
