The end of the September quarter reflected...
The end of the September quarter reflected the stock market’s belief that we are already in a recession, according to Irving Katz, director of research for Thomas Green/San Diego Securities. Declining public confidence, corporate profits, real estate values and the financial services industry reflect an economy that continues to weaken under an oppressive national deficit, Katz said.
While stocks included in the Dow Jones and Standard & Poor’s indexes showed losses in the 14% range during the third quarter, the NASDAQ over-the-counter average fell 25.5%, taking with it many San Diego stocks.
Just in the past week, 19 of the 62 stocks on this stock chart made new 1990 lows. “While this may seem high, it compares to new lows by 43.5% of companies on the New York Stock Exchange, 34.3% of stocks on the AMEX and 26.8% of stocks on NASDAQ,” Katz said.
However, there was little in local corporate news during the past week to account for the preponderance of new lows, Katz said.
Maxwell Laboratories reported earnings of $1.60 for its fiscal year ended July 31, compared to $1.43 for the previous year. This improvement, however, included lower fourth-quarter earnings of $.43 per share versus $.49 per share for the same period last year and resulted in the stock making a new low of $8.25, Katz said. Maxwell, which is predominantly dependent upon government and defense-related activities, is presently selling at 5.5 times last year’s earnings.
Price Co., which fell to a new low of $27.75 last week in continued reaction to poor comparisons in same-store sales, rebounded strongly Monday to close at $30.75, up $1.75 on a day when the Dow Jones Industrial Average closed up 63.37 points.
Other good gainers included Mail Boxes Etc., Mycogen and San Diego Gas & Electric, each of which gained $1.
Wahlco Environmental gained $.375 to $7.25 after being recommended both on Wall Street Week last Friday and in Monday’s Barron’s magazine. Intermark, which is selling its 51% interest in Sunbelt Nurseries to its majority-controlled Pier One operation for $22.7 million in cash, gained $.25 to $3.625. The proceeds will be used to reduce some of Intermark’s massive debt.
