Despite rising interest rates and fears of increased inflation, the market continues to move ahead, according to Irving Katz, director of research for Thomas Green/San Diego Securities. “Since the first of the year, the market has gained about 8% as it continues to defy the pessimistic short sellers and traders who have been waiting for a fall,” Katz said.
Eight San Diego stocks reached new highs this past week. Home Federal Savings & Loan, which sells at 80% of tangible book value--and about six times earnings--received a favorable mention in Barron’s magazine. Merrill Lynch recently upgraded its estimate of Home Federal’s 1989 earnings to $5.45 a share.
DH Technology continued to record new highs as it gained $1.125 to $8.75. The manufacturer of printer heads is showing improved earnings after digesting an acquisition that will double this year’s revenue.
Humphrey continued to rally on excellent 1988 earnings. The company gained $.875 to hit a new 52-week high of $4.875. Humphrey expects 1989 revenue to increase by 30% in 1989.
Molecular Biosystems reached a new high as it gained $1.375 to $17.625. The company signed a $31-million marketing pact with Shionogi & Co. of Japan for the development and marketing of its Albunex ultrasound contrast agent.
Rohr Industries made a new high of $37.875 on recurring takeover rumors but closed the week up $2.25 to $34.75.
Monitor Technologies reached a new high of $5.875 on no evident news but closed the week up $1.125 to $5.375.
Pancretec, which continued to hit new highs on excellent earnings prospects, gained $2.125 to $11.75.
Intermark reached a new high Monday--if one includes the recently announced 10% stock dividend, Katz said.
Other good gainers this week were Mycogen, up $.50 on news of a $1.8-million equity investment by a U. S. subsidiary of Japan Tobacco. The unit would also pay Mycogen $7.7 million over the next three years.
Despite all the good news, some San Diego stocks recorded new lows. Sym-Tek Systems fell to $6.625 as traders were reluctant to purchase a 20,000-share block that became available. After finding a buyer, the stock moved back to $9, where it closed down $.50 for the week.
Synbiotics hit a new low of $5 in continued reaction to its poor third-quarter earnings. Syntro matched its low of $1 as Upjohn filed a patent infringement suit over Syntro’s pseudorabies vaccine for swine.