One takeover does not a market make....
One takeover does not a market make. Georgia Pacific’s unsolicited bid to take over Great Northern Nekoosa last week gave the Dow Jones Industrial Average hope as it rose 33 points, making up some of the previous week’s 92-point plunge.
Monday, the market gave it all back and then some. The Dow lost 47 points as investors are lowering earnings expectations in the aftermath of disappointing third-quarter results, said Irving Katz, director of research at Thomas Green/San Diego Securities.
San Diego stocks, particularly savings and loans, have been in their own bear market, Katz said. HomeFed continued to plunge as analysts lowered projected earnings estimates for 1989 and 1990. The stock closed Monday at $32.125, down from its October high of $47.50. Great American Bank hit a new low of $8.25, dropping $.375 for the week, while Imperial Corp. of America gained $.75 and continued a recovery from the previous week’s low of $1.50.
New lows were also recorded by Chart House Enterprises, Rohr Industries, Biomagnetic Technologies, Intermark and Mission West Properties.
The only new high by a local stock was the result of a takeover. Chugai Pharmaceutical of Japan began a $6.25 per share bid for Gen-Probe stock. The stock, which went public in 1987 at $7, was selling in the $3 range when the offer was made, causing an instant doubling in price.
