San Diego stocks continued to tread water...

San Diego stocks continued to tread water in the face of an uncertain economic future, according to Irving Katz, director of research for San Diego Securities Inc.

Economists could not agree whether interest rates will go up or down, said Katz, who added that analysts also could not agree whether to sell stocks and raise cash or to remain fully invested. The majority, however, believed that bargains were few and far between, Katz observed.

The surprise of the week was the end of merger negotiations between Energy Factors Inc. and Sithe Energies Group. The termination of the agreement to acquire Energy Factors at $17.25 a share caused the stock to fall 4 3/8 to close the week at 11.

Molecular Biosystems Inc. was up one point to 12 7/8 with the announcement of the introduction of a rapid non-radioactive DNA test for the detection of the AIDS virus. The announcement was made in conjunction with E.I. du Pont de Nemours & Co., which owns 6% of Molecular Biosystems’ stock.

Cubic Corp. announced that it had signed a letter of intent to purchase Automatic Toll Systems from Basix Corp. Walter Zable announced that the company had a record backlog in the $300-million range and will report sales in excess of $350 million and substantially higher profits over the previous year. Despite all the favorable news, Cubic stock gained just one-eighth of a point to 19, Katz observed.

Linear Corp. announced the signing of an agreement granting an option to an investment group to purchase management’s 34% interest at $12 a share. The option will expire at noon Monday. The stock closed up an eighth of a point at 11.

Burnham Pacific Properties moved from the NASDAQ to the American Stock Exchange on Thursday under the symbol BPP, where it closed the week up a half at 16.

Foodmaker was up one-quarter to 12 3/4, adding to its previous week’s gain of 1 1/8 points on a favorable brokerage report. The stock went public in February at 13 1/2 a share, Katz said.

Other stocks making good gains were WD-40, up 2 3/4 to 32 1/2; Fisher Scientific Group, plus one to 13, and Price Co., up seven-eighths to 43 3/8.

Annual meetings scheduled this week include Video Library, 10 a.m. today at the Westgate Hotel, and Southwest Bank, 2 p.m. Thursday at the Olympic Resort Hotel in Carlsbad.