Despite rising interest rates and fears of...
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.