Stock Prices Rise in 2nd Quarter for Most Firms in Valley Area

Stock prices for most San Fernando Valley-area companies rose during the second quarter, following the broader increase in the overall stock market.

Out of 59 major publicly held companies in the area, 35, or 59%, saw their stock prices rise in the three months that ended last Friday. Twenty-one stocks appreciated 10% or more.

There were 23 stock losers, and one was unchanged. Stocks in the group include those with headquarters from Glendale to Camarillo that traded for at least $2 a share at the start of the second quarter.

The quarter was marked by a strong surge in the Dow Jones Industrial Average, the most widely followed stock indicator. The average, despite tumbling 91.81 points last week, gained more than 146 points, or 6.4%, in the quarter to close at 2,440.06.

Biggest Winner

The biggest winner in the quarter was Judy’s. The Van Nuys clothing chain’s stock more than doubled in the quarter, rising from $2.50 a share to $5.38, nearly all of it in June. Last week, the company disclosed that it is talking to an unidentified clothing concern that has offered to pay at least $6.71 a share, or $31 million, for the company.

Sierracin’s stock rose 81%, from $7.75 a share to $14. A group led by Chairman Christoph Tribull last month offered about $30 million, or $15 a share, for the 50% of the Sylmar aerospace firm that the group does not already own.

The price per share of Nu-Med, an Encino hospital chain, rose 51% to $7.75 from $5.13. In May, the company finished selling three of its health-care service subsidiaries to a Beverly Hills investment group. Nu-Med has indicated in Securities and Exchange Commission filings that it will receive about $45 million.

However, Nu-Med announced Friday that it had scrapped a separate plan to sell four hospitals to a newly formed company for $210 million in cash and securities.

Computer Software

Software Toolworks, a Chatsworth developer of computer software, rose 42%, from $6.88 a share to $9.75. In May, the company reported that its earnings in the fourth quarter, which ended March 31, soared to $676,000 from $37,000 a year earlier as sales more than tripled to $4.1 million.

In entertainment, Walt Disney’s stock rose 21%, from $78.50 a share to $94.63. The Burbank entertainment giant continues to benefit from strong performances at its theme parks. In addition, Disney has two films that are emerging as summer hits, “Dead Poets Society” starring Robin Williams, and “Honey, I Shrunk the Kids.”

MCA, the Universal City entertainment conglomerate, saw its stock rise 9%, from $52.75 a share to $57.38. The company for several years has been the subject of takeover rumors. MCA’s current films include the hit “Field of Dreams,” released by its Universal unit.

The biggest loser in the area was Tekelec, whose stock fell 39%, from $14 a share to $8.50. In May, the Calabasas company, which makes equipment that tests telecommunications products, said domestic orders for its equipment were lower than expected.

Another once-hot company, Micropolis, saw its stock fall 23% to $5 a share from $6.50. The Chatsworth disk-drive maker has been hurt by a product glut in the industry. With its stock lagging the past few months, Micropolis earlier this year adopted an anti-takeover shield.

House of Fabrics, a Sherman Oaks chain of fabric stores that has previously been the subject of buyout rumors, saw its stock drop 19% in the quarter to $19.13 a share from $23.75.

Dataproducts, one of the area’s biggest winners in the first quarter, gave back 21% of its price in the second quarter, with the stock dropping from $16.75 a share to $13.25.

The company’s stock price climbed earlier this year after a New York investment group in December disclosed that it wants to acquire the Woodland Hills computer printer maker and is willing to pay $15 a share for it. Dataproducts has said it will consider offers from other potential suitors, but there have been few new developments in recent weeks.

10 BIGGEST VALLEY AREA STOCK WINNERS FOR 2ND QUARTER

Closing Price on Percent Stock 6/30/89 Change Line of Business Judy’s $5.38 +115% Apparel Sierracin $14.00 +81% Aerospace Nu-Med $7.75 +51% Hospitals HCC Industries $5.75 +44% Electronics Software Toolworks $9.75 +42% Software ATI Medical $9.13 +38% Medical equip. Com Systems $4.75 +36% L-D carrier HOH Water $2.88 +33% Water systems Products Research $21.50 +27% Chemicals Dick Clark $4.88 +22% TV, films

Note: Excludes stocks whose March 31, 1989, price was below $2.00 a share

Source: Communications Research Group, Austin, Tex.

10 BIGGEST VALLEY AREA STOCK LOSERS FOR 2ND QUARTER

Closing Price on Percent Stock 3/1/89 Change Line of Business Tekelec $8.50 -39% Telecomm. Verit Inds $3.63 -26% Speakers Micropolis $5.00 -23% Disk drives Dataproducts $13.25 -21% Cmptr printers Brajdas $5.00 -20% Electronics House of Fabrics $19.13 -19% Fabric stores Terminal Data $1.75 -18% Imaging equip. Medical Properties $7.38 -16% Real estate Flamemaster $4.88 -13% Chemicals Geotek Inds $2.00 -11% Lasers

Note: Excludes stocks whose March 31, 1989 price was below $2.00 a share