The Dow Jones Industrial Average flip-flopped between...
The Dow Jones Industrial Average flip-flopped between Friday and Monday, gaining back 88 of the 190 points it dropped Friday, noted Irving Katz, director of research at Thomas Green/San Diego Securities.
Where did that leave investors in San Diego stocks? Probably with a loss, Katz said. As the accompanying stock chart shows, only two minuscule gains were made in the 62 locally based stocks tracked over the past three trading days.
New lows were posted by Rohr Industries, at $24.50 before rebounding Monday to close at $25.50. Cipher Data Products continued its downward trend and made a new low of $5.25. Agouron Pharmaceuticals, which successfully sold 1.5 million shares at $11 each last week, dipped to $9.75 for a new low, but closed Monday at $10.25.
Molecular Biosystems, which made a new high of $26.25 last week, saw speculators stampede for the exits with the stock closing Monday at $22. Other stocks off their 52-week highs were GTI, down from $6.25 to $4.125, and International Totalizator, down from $5.25 to $3.19.
Stocks moving down more than a point during the past three trading days included Henley Group, down $3.50. This reaction did not appear overdone, as the price simply represents the passage of unprofitable assets from one entity to the other with the supposed result of creating more value, Katz said.
Price Co., on the other hand, was down $2.75 to a level where it represents good value. Price Co. shares are selling at 17.5 times earnings per share, while Pace Membership Warehouse has agreed to be purchased by K mart at a multiple of 30 times earnings per share. Costco, the second-largest player in the discount-warehouse field, is selling at 35 times 12-month earnings.
Beeba’s Creations, which hit a new high of $15.875 a few weeks ago, lost some ground, closing at $12 despite reporting a profitable fourth quarter and excellent earnings for the year of 85 cents per share, contrasted with an 88-cent-per-share loss for the previous fiscal year. The company’s current backlog of $58 million is 45% higher than this time last year.
WD-40, which recorded a new high of $38.25 last week, closed Monday at $34.50, despite reporting a 15% gain in fourth-quarter earnings.
Financial stocks experienced profit-taking, with HomeFed Corp. down $1.75; Great American, down $1.625; First National, down $1; BSD Bancorp, down $1, and La Jolla Bancorp, down $.375. Imperial Corp. of America seems to have dropped as far as it can, matching its all-time low of $2.125.
The only San Diego County firms posting gains were Mail Boxes Etc., up $.25, and Xscribe, up $.125.
