The savings and loan rescue bill that...

The savings and loan rescue bill that was signed last week by President Bush allows banks to acquire healthy savings and loans with no waiting period.

This feature of the bill ignited takeover speculation and, by extension, the stock prices of Great American Bank and HomeFed, said Irving Katz, director of research at Thomas Green/San Diego Securities.

Their solid franchises in California and excellent branch systems make both Great American and HomeFed desirable acquisition candidates.

A good gain was also made by Cubic, up $2.50, upon reporting excellent third-quarter earnings of $.76 a share versus $.48 in the previous year’s third quarter. The stock still lags the market, however, and probably will until its dispute with the Department of Defense is settled.

Additional new highs were recorded by Magma Power, which reported excellent earnings, and Mail Boxes Etc., which was up $3 last week after announcing the sale of a franchise for Japan.

First National reached a new high after rewarding shareholders with a 10% stock dividend. Advanced Marketing Services gained $1 as investors began to realize that the poor earnings reported for the last two quarters were an aberration and that an earnings recovery is in place.

Stocks on the down side last week included Rohr Industries, down $1.375, and Molecular Biosystems, down $1. Western Health Plans, the troubled health maintenance organization, appears to be losing value rapidly as it dropped $.18 to close at $.25 a share.