The stock market rallied Monday on very light volume after falling 100 points in the Dow Jones Industrial Average during the previous five trading days, said Irving Katz, Director of Research at Thomas Green/SD Securities. Continued fears of inflation and higher interest rates continue to scare away investors as stocks have difficulty finding support, Katz said.
Despite this forbidding outlook, four San Diego stocks managed to make new highs. Molecular Biosystems reached a new high of $21.625 and closed the week up $1.75, at $20. The company went public in 1983 at an adjusted price of $2 and since has risen tenfold.
Other new highs were recorded by Christiana, at $8.125, Southwest Bank, at $5.625, and BSD Bancorp, at $5.75. BSD Bancorp is still selling below its year-end book value.
Burnham Pacific Properties gained $.375, to $18.50, after receiving favorable mention in this week’s Barron’s magazine.
A new low was hit by Imperial Corp. of America, at $6.375, as it fell $.875, to $6.75, on the announcement that 1989 earnings may be at or below the 1988 level. The company has experienced higher than expected losses on its purchased consumer loan portfolio. Other new lows were hit by Synbiotics, at $4.75, and Yuba Natural Resources, at $.75.
Price Co., which fell $1.125, to $34.875, continues to suffer from its intention to issue later this year a $5 convertible preferred stock share for each 10 shares of common stock owned. Investors are overlooking the strengths of the company, the earnings of which have increased more than 20% in each year since 1985.
The company also owns all its real estate and, with the stock selling at $35, can be purchased at 15 times expected per-share earnings for 1989, the lowest price-earnings ratio in many years.