Vacillations in investor beliefs concerning inflation, interest...
Vacillations in investor beliefs concerning inflation, interest rates, recession and trade imbalances have created a total lack of conviction in the stock market, according to Irving Katz, director of research for Thomas Green/San Diego Securities, making it difficult for any local stock to make a sustained move in either direction.
“There seems to be a basic distrust of the system, as is evidenced by extreme 100-point moves and a Dow Industrial Average that has zigzagged between 1,700 and 2,100 during the past six months,” Katz said.
Most San Diego stocks held to their narrow range during the past week, but some reacted to very favorable news items.
Henley Group gained $2.50 to $24.875 as it announced a new entity, in combination with Waste Management and its Wheelabrator Technology division, to form a “billion-dollar” waste-to-energy company.
Agouron Pharmaceuticals was up $1.50 to $12.50 as it announced a drug development pact with Eli Lilly & Co. and a $3.25-million investment by Lilly for about 10% of Agouron’s outstanding shares.
Price Co. was up $1.50 to $36.25 on favorable analyst recommendations. Intermark gained $1 to $10.875 as it explored the possible sale of its majority-owned Pier 1 subsidiary.
On the down side, Christiana Cos. fell $.75 to $4 upon announcing a rights offering to shareholders with a subscription price of $4 a share. The rights will be non-transferable with one newly issued share available for each share held, Katz said.
While Home Federal Savings & Loan and Imperial Corp. of America announced lower earnings, their prices changed very little. Great American First Savings Bank, which has yet to announce earnings, will hold its annual meeting today at 9 a.m. Great American was down $1 to $11 in anticipation of poor earnings.
First National Corp. dropped $.375 to $9.125 as President Robert Richley left to join First City Bancorp of Texas as chief operating officer. Richley joined Robert Abboud, a former employer, at First City.
Energy Factors gained $.25 to $8.125 as litigation in California and Delaware appears to be at an end. The company’s merger with Sithe Energies apparently is about to go through, Katz said.
Annual meetings this week include San Diego Gas & Electric Co. at 11 a.m. today; Home Federal at 9:30 a.m. Wednesday, Imperial Corp. of America and First National Corp. at 11 a.m. Thursday, and Humphrey at 2:30 p.m. Wednesday.
