The stock market made feeble attempts at...
The stock market made feeble attempts at a rally last week as investors returned after the summer doldrums, according to Irving Katz, director of research for Thomas Green/San Diego Securities.
Great American First Savings Bank was up $1 to $11.25, and $.875 of that gain came Monday. Barron’s highlighted the stock in an article on investors who follow insider investments.
“My analysis shows that Edward Wedbush and his Wedbush Corp. have increased their holdings from 12.6% to 15.5% by purchasing about 750,000 shares during the past four months,” Katz said.
Great American also holds 854,000 Freddie Mac shares of preferred stock, which on Monday hit a new high of $159. Great American’s original purchase cost was $70 a share. Each share of Great American represents a $5.55 value of Freddie Mac preferred, including a $3.75 built-in hidden value capital gain should the shares be sold.
Those values, along with Great American’s low price-earnings ratio of 4 to 5, its secure annual dividend of $.60, and its 40% discount from tangible book value, make the stock overdue for value investor recognition, Katz said.
Cipher Data Products gained $1 to $9.875 as a Dow Jones story highlighted the fact that company management is comfortable with an $.80 estimate of earnings for the current fiscal year ending June 30, 1989.
Burnham Pacific Properties was up $.375 to $19 after a favorable analyst report that put current value of its real estate holdings at $20.75 a share. The report also highlighted the management of John Burnham and the emphasis on growth in value of San Diego real estate.
PS Group continues to move ahead as it has gained more than $2 since it was revealed that Warren Buffett had purchased 117,000 shares through one of Berkshire Hathaway’s insurance subsidiaries.
Other good gainers for the week included Price Co., up $1.50 , Rohr Industries, up $1.125, and Advanced Marketing Services, up $1.
On the down side, Molecular Biosystems fell $1.375 for no apparent reason.
Triton Group Ltd. was down $.75, despite the impending sale of its Continental Graphics division. That sale will make Triton a cash-rich entity, Katz said.
