The market, which was anxiously awaiting the...

The market, which was anxiously awaiting the November trade deficit numbers, reacted quickly with an upward move, according to Irving Katz, director of research for Thomas Green/San Diego Securities. But that rise had little effect on the stocks of locally based companies.

Xscribe, which came public at 8 in August, 1987, fell three-quarters to 2 3/4 after reporting third-quarter earnings of 3 cents per share versus 30 cents in the prior year's third quarter.

Advanced Marketing Services, which came public at 13 in July, 1987, gained one-half to 8 as it announced a large increase in third-quarter earnings of 47 cents versus 30 cents on a smaller number of shares in the previous year's quarter.

There was profit taking in some of the biotechnology stocks as Molecular Biosystems dropped seven-eighths to 12 3/4. The company last week announced that regulators had approved clinical trials of its ultrasound contrast agent. The stock was San Diego's 1987 stellar performer, moving up 145%.

Gen-Probe, which received FDA clearance to market its chlamydia diagnostic test, fell one-half to 5 7/8. The stock had gained two points in the first week of 1988.

Among the good gainers last week were Home Federal Savings & Loan, up 1 3/4 to 22 1/2. The S&L; still sells at a substantial discount from its more than 40-per-share book value, Katz observed.

PS Group gained 2 to 28 as insiders and sophisticated investors continue to accumulate the company's stock.

In addition, there were recoveries of 1 1/2 points each in Price Co., WD-40 and Xytronyx.

Forbes magazine's list of stocks selling at low price-earnings ratios on the basis of 1988 estimated earnings included Rohr Industries, which gained one, and Beeba's Creations, which was unchanged. Beeba's reported a first-quarter loss that was driven by securities transactions, Katz said.

A peculiar move in Fabulous Inns--the stock dropped 2 1/2 points last week and recovered 1 on Monday to 3--was connected to the sale of a large block of stock in the open market, Katz said. The company had tendered and purchased back most of its stock last year at 6 a share. With the tender expiring, the question remains why this block would be sold at these prices when it could have been tendered at 6 last year, Katz said.

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