With the positives of the Bush election...
With the positives of the Bush election already figured into the market before Election Day, the market had no place to go but down, according to Irving Katz, director of research for Thomas Green/San Diego Securities. “Reality set in as it became clear that Bush had no mandate, with both houses leaning more toward the Democrats than before,” Katz said.
In addition, “the ‘read my lips’ campaign promise not to raise taxes locked Bush into a difficult posture regarding the economy,” Katz said. “Wall Street is uneasy on how Bush could cope with the economy along with the ongoing budget and trade deficits.”
The main movement in San Diego stocks was generated by flighty institutional investors who were looking for an opportunity to sell into a market that has become further depressed, Katz said. Rohr Industries, for example, extended its decline an additional $1.50 this week for a total of $5 in the past three weeks.
The savings and loans continued their downward trend, as did Henley Group and Price Co., Katz said.
By contrast, San Diego Gas & Electric made a new high of $37.50 in continued reaction to the apparent viability of SCEcorp’s merger attempt. SDG&E; last week dropped its proposed merger with Tucson Electric Power.
The largest percentage gainer of the week was Mitek Systems, which gained $.5625 to $1.8125 after reporting a profitable fourth quarter of $.10 per share. Mitek reported a profit of $682,000 for the fourth quarter, but reported a loss of $671,000 for the fiscal year ended Sept. 30.
The largest percentage loser was Xytronyx, which made a new low of $4.25, falling $1.50 for the week despite no news developments.
Another new low was made by International Totalizator, down $.375 to $1.125, as it reported a third-quarter loss of $1.7 million and a nine-month loss of $2.9 million.
Most companies with good earnings reports usually report them within two to four weeks after the quarter ends.
Late reporters are usually those with unfavorable comparisons, and some wait to report until after the market closes for the week--hoping to receive the least notice. Those reporting late results included Oak Industries, Telequest, IRT Corp., Western Health Plans and Titan Corp.
