There doesn’t appear to be a better...
There doesn’t appear to be a better way--outside of a takeover--for a stock to gain immediate recognition in the market than a feature article in Barron’s magazine, according to Irving Katz, director of research for Thomas Green/San Diego Securities.
Such was the case with Synbiotics Corp., which rose $2.75 to $10.25 and traded 465,500 shares Monday after hitting a high of $11.75. The article focused on Synbiotics’ leadership in anti-idiotypic antibody research, which is an advancement on monoclonal antibody technology.
The article highlighted Synbiotics’ development of the technology and its patents, which could be used in an approach to an AIDS vaccine.
Syntro Corp., another local biotech company, was up $1.125 to $3.625 as it announced it was close to receiving approval for a genetically engineered vaccine used to treat pseudorabies in swine, Katz said.
Other good gains were made in stocks involved in takeovers or mergers, Katz said. Video Library gained $.875 to $4.625 as its board received a fairness opinion that $4.75 per share was more appropriate than the previous $4 offer by Fort Lauderdale-based Blockbuster.
Magma Power was up $1.625 to $12.375 after it successfully merged its majority-owned subsidiary, Magma Energy, into the parent company. The company exchanged 1.9 shares of Energy stock for each share of Power stock it previously did not own. In addition, Magma Power announced an agreement with Southern California Edison to become its partner in two geothermal plants. Burnham Pacific Properties gained $.625 to $18.375 as it announced it would merge with its Burnham American Properties sister real estate investment trust. Burnham American shareholderes will receive .87 shares of Burnham Pacific stock for each of their shares.
Guild Mortgage Investment gained $.875 to $5.875 as it announced it will merge into MDC Asset Investors and receive about .45 shares of that company’s stock for each share tendered, Katz said.
Triton Group gained an additional $1 as the price of its Continental Graphics subsidiary--which it is negotiating to sell--continued to rise in the market.
Other gainers during the week were Sym-Tek, up $1.50 to $15 as it announced a $650,000 order for two modules of its automated handling and testing system.
Advanced Marketing Services, which spoke last Thursday before the San Diego Stock & Bond Club, gained $1.75 to $12.75.
On the down side, Price Co. fell $2.25 to $37.50 in possible recognition that more competition is coming into the already crowded membership warehouse club industry. Kmart announced last week that it was purchasing a 51% interest in a small chain that issues no-fee membership cards.
