The market continues to mark time as...
The market continues to mark time as it perceives that interest rates will be going up until the Federal Reserve Board is convinced that inflation is under control, the dollar has stabilized and President-elect Bush is willing or able to do something about the deficit, according to Irving Katz, director of research for Thomas Green/San Diego Securities.
With the tax-loss season upon us, new lows were made by some San Diego stocks.
Xytronyx and Gen-Probe were down $.625 each, and CCT Corp. and Langley fell $.50 each.
Langley shareholders have found themselves diluted down to a minority position as Fleet Aerospace acquired 4.5-million shares of Langley stock in exchange for some of its divisions. Fleet now owns 88% of Langley.
Large capitalization stocks in addition suffered some erosion, with Henley down $1 as Michael Dingman announced that he would like to take the Henley Manufacturing subsidiary private.
Price Co., which received a favorable review in Investors Daily, likewise fell $1.25 on profit-taking. Imperial Corp. of America was down $.75 as investors become more wary of ICA’s junk bond portfolio.
Favorable mention in Barron’s magazine did not help the two San Diego stocks listed as selling below their book value. Beeba’s Creations, with a book value of $9.73, closed down $.25 at $7. The company lost $4 million in its last fiscal year.
Maxwell Laboratories, with a book value of $12.84, was down $.50 to $10.50 in response to poor first-quarter earnings of $.29 versus $.32 the previous year on lower sales. Maxwell attributed the drop to a delay in the start of several large projects.
