With the credit boom unwinding and the cloud of asset deflation spreading, fear and loathing continued to be manifested in the stock market, said Irving Katz, director of research at Thomas Green/San Diego Securities.
This follows the distress in the junk bond market, whose recent price decline would be exacerbated by a decline in corporate cash flow, Katz said.
Increased economic weakness that many analysts see on the horizon would also affect real estate, which is already threatened by a glut of foreclosed properties in savings-and-loan portfolios taken over by federal regulators, he said.
Six San Diego stocks were among those hitting new lows last week. Amistar recorded a new low of $1, down from its high of $4.25. Biomagnetic Technologies sank to $6.625 after its recent initial public stock offering priced at $9 a share. CCT dropped to $1 from a 52-week high of $3.375.
Intermark was down to $9.875 from its year’s high of $15. Rohr Industries, which had risen earlier on takeover rumors to $37.875, made a new low of $22.625. And Wavetek, which reported poor earnings, made a new low of $4.25, down from its year high of $6.25.
Small bank stocks experienced a revival of interest as La Jolla Bank & Trust received a $15-a-share takeover offer from Security Pacific, a price close to three times book value per share. Parent La Jolla Bancorp gained $3.125 to $13.125. First National gained $.75 and BSD Bancorp gained $.875.
Savings and loans continued to get pounded, with new lows registered by Great American, at $8.50, and Imperial Corp. of America, at $1.50. HomeFed Corp. closed at $35, down from its 1989 high of $47.50.
Supercomputing Solutions, formerly known as General Microelectronics, sold 2 million shares to the public at $3.50 each. The stock recently sold at $6.25.