With the first anniversary of the stock...
With the first anniversary of the stock market crash of Oct. 19, 1987, upon us, public interest in purchasing stock seems to be waning, according to Irving Katz, director of research for Thomas Green/San Diego Securities.
“Volume on a daily basis continues to contract with movements (only) in stocks involved with mergers, acquisitions, takeovers or stock buybacks or restructuring,” Katz said. “But with few San Diego stocks involved in any of these activities, stocks seemed to be backing and filling, giving back one week’s gains during the following week.”
One of only two new highs for the week was made by Burnham Pacific Properties, which reported excellent third-quarter earnings of $.33, versus $.29 a year ago. The company has received favorable mention in several analysts’ reports, Katz said.
The other new high was made by Cubic, which has climbed $3 in the past two weeks as the company announced an additional buyback of 500,000 of its shares.
Great American First Savings Bank gained $.375, to $11.625, possibly because of the 850,000 preferred shares of Freddie Mac that it is holding. Those shares traded at a new high of $182. Great American’s cost basis for the Freddie Mac shares is about $70, which indicates a potential capital gain of close to $4 per Great American share should the S&L; sell its Freddie Mac holdings.
Triton Group gained $1 as investors began to realize that the stock is selling for below the actual cash per share that will be available after Triton sells its Continental Graphics division early next month.
“The disaster of the week was Weaver Arms, a company apparently involved in arms manufacturing in China,” Katz said. The stock, which sold for $7 last week, collapsed and closed at $3.25, for no apparent reason.
Foodmaker fell $.50, to $18.50, as it extended its offer to purchase all outstanding shares at $19.425 a share until Nov. 22. The company needs the added time to receive necessary approvals from the Securities and Exchange Commission and lenders.
