The major stock averages continued their declines...

The major stock averages continued their declines last week, with imports up, exports down and the economy appearing to grow faster than expected, according to Irving Katz, director of research for Thomas Green/San Diego Securities. The situation brought back inflation fears, with a possibility of the Fed further tightening its control over the money supply, Katz said.

“San Diego stocks stayed in dullsville except for some special situations,” he said.

San Diego Gas & Electric was up $.875 to $34.50 as Southern California Edison increased its stock-swap merger offer to 1.2 shares from 1.15 shares. That exchange ratio would result in a 14.6% increase in dividends to SDG&E; shareholders--or a $2.98 annual dividend versus SDG&E;’s current $2.48 annual dividend.

The 1.2 shares would be worth more than $38 based on the present valuation of SCE common stock. That price would be 10.4% more than SDG&E; stock is now selling for, according to Katz, who added that SDG&E;’s current value includes gains registered since the merger announcement.

A new high of $15 was made by Magma Power, which gained $1.375 to close the week at $14.75. Magma has consistently moved upward since merging with its Magma Energy subsidiary.

Other good gains were made by Price Co., up $1.50, and Cubic Corp., up $.75 and regaining its loss of the previous week.

New lows were made by IRT Corp., at $1.125, and Gen-Probe, at $4. Other downward movers included Molecular Biosystems and Synbiotics, each down $1.

Langley Corp. was down $.50 to $5.50 upon reporting disappointing quarterly earnings of $.02 versus $20. Its prospective merger with Fleet Aerospace of Ontario, Canada, which would result in Fleet owning 88% of the company’s outstanding common shares, is still being evaluated.