A buying frenzy that began last Tuesday...
A buying frenzy that began last Tuesday helped the Dow Jones Industrial Average gain back the last of the 500 points lost in the October, 1987, crash, according to Irving Katz, director of research for Thomas Green/San Diego Securities.
The Dow continued to move ahead last week, gaining 88.75, or 3.9%. Some San Diego stocks--particularly the financials--joined in the advance, Katz said.
Southwest Bancorp led the financial sector as it climbed $1.50 to $5.25 on an acquisition offer by Security Pacific and a stock swap valued at $6 a share. The offer must be approved by regulators and Southwest’s board of directors and shareholders.
First National Corp. reached a new high of $12 after reporting excellent earnings of $1.18 for the year, up from $.70 the previous year. BSD Bancorp gained $.25. BSD is selling at six times earnings and only 66% of book value, Katz said.
Most of San Diego’s savings and loans participated in the week’s gains, Katz said. Home Federal, which has yet to release 1988 earnings, was up $1.25, and Great American First Savings Bank was up $.375, despite reporting earnings below those of the same quarter a year ago. Great American is selling at below book value and returning a dividend of 5.1%, Katz said.
Imperial Corp. of America recorded a new low of $6.875. ICA eliminated its $.15 cent dividend and announced a reduction in 1988 earnings that was attributed to various write-offs.
Cipher Data reached a new high of $10.75 on second-quarter earnings that rose by 47% to $.22, up from $.15.
Other good movers last week included Xytronyx, up $1.375 after receiving an order for 50,000 periodontal disease detection kits from Colgate. Intermark was up $.875, responding to a favorable article in Business Week magazine.
Other stocks moving up this week were San Diego Gas & Electric, up $1.50; Henley Group, up $3.25; Price Co., up $1.50, and Rohr Industries, up $1.375.
Burnham Pacific Properties successfully sold 1.5 million shares at $18.625.