The Dow Jones Industrial Average last week...

The Dow Jones Industrial Average last week dropped to below 20% of highs reached earlier this year, further demonstrating that stocks are in a bear market, according to Irving Katz, director of research for Thomas Green/San Diego Securities.

The NASDAQ composite, which is a more broadly based stock index, has fallen more than 30% so far this year, Katz said.

Despite rallies Friday and Monday, most San Diego stocks are down 40% to 50%, he said.

The largest casualty of the week was the $1.25, or 29.4%, per-share drop by Beeba’s Creations. The company reported a loss of $.76 a share on sales of $158 million for the year ended Aug. 31, contrasted with a $.85 profit on $128 million in revenue the previous year.

The company reported a non-recurring manufacturing writeoff of $.54 a share in the third quarter and experienced a larger liquidation of inventory, Katz said.

In addition, Beeba’s suffered the consequences of Chapter 11 filings by Campeau (Federated and Ames department stores).

Beeba’s backlog was up 15% to $56.8 million, and the stock, which has a book value of $8 a share, closed Monday at $3. During 1990, the stock sold as high as $11.625.

It made a new low of $2.625 earlier this year, Katz said.

On the down side this past week were some San Diego stocks with high price/earning ratios.

PS Group was down $1.125, Alliance Pharmaceuticals was down $1.50, and Mail Boxes Etc. was down $1.25.

Price Co. gained $1.75 Monday to $29. The stock is selling at its lowest price/earnings ratio in memory, at 12 times last year’s earnings and 11 times projected 1991 earnings, Katz said. The high reached in 1990 was $48.25.

Great American Bank holds its shareholder meeting Thursday, at which it will seek shareholder approval to sell its California branches to Wells Fargo.