Majority of Area’s Stocks Decline : Market: Slides in the 3rd and 2nd quarters abruptly halted the region’s strong showing in early 1992.

A majority of the region’s stocks fell during the third quarter, a performance that trailed the overall stock market’s modest improvement in the period.

The weakness in local stocks extended a slide that began in the second quarter, when three out of four area shares declined. Both quarters’ slides abruptly halted a strong showing for local stocks in early 1992, when investors were more encouraged about the economy’s growth prospects.

The 89 stocks of companies headquartered between Glendale and Ventura, or that have major employment in the area, showed an average loss of 3.5% during the three months that ended Sept. 30, according to Media General Financial Services, a Richmond, Va., concern that tracks the stocks for The Times.

Fifty of the stocks posted actual declines, while 36 advanced. Three finished unchanged: Cherokee Inc., Nu-Med Inc. and TransWorld Bancorp.

By contrast, Standard & Poor’s composite index of 500 industrial stocks edged up 2.4% in the quarter, and the composite index of the NASDAQ market--where most of the region’s shares are traded--rose 3.5%. The Dow Jones average of 30 industrial blue-chip stocks slipped 1.4% in the quarter, to 3271.66. (The average closed Monday at 3179.00.)

The area’s shares generally suffered from the same factors that are keeping a lid on the broader market. The sputtering U. S. economy is hampering earnings growth for many companies, the world’s currency problems have left investors worried about the firms’ overseas prospects and continued weakness in the real estate industry has continued to damage banks and thrifts.

Indeed, during the third quarter one of the nation’s largest thrifts, Glenfed Inc., posted a loss of $121 million for its fiscal year that ended June 30 because of mounting real-estate problems, which sent its stock tumbling 42% in the quarter, to $2.38 a share. And last week, the parent of Glendale Federal Bank warned that early next year it might miss interest payments to its bondholders, who could conceivably push Glenfed into bankruptcy proceedings.

Real estate woes also contributed to the share declines of Citadel Holding Corp., the Glendale-based parent of Fidelity Federal Bank, and Mortgage & Realty Trust, a real estate investment trust with executive offices in Burbank and Pennsylvania. Citadel plunged 48% in the quarter, to $13 a share, while Mortgage & Realty lost 31%, to $1.13.

Another bank holding company, Ventura County National Bancorp in Oxnard, announced a 9% increase in second-quarter profit, but its stock still dropped 29% in the third quarter, to $3 a share.

Other financial-services shares prospered, however. The stock of RKS Financial Group Inc., formerly Otra Securities, jumped 52% in the quarter, to $5.50 a share. The Glendale company provides securities clearing and brokerage services.

A few blocks away, Spear Financial Services Inc. in Glendale enjoyed a 49% surge in its stock price, to $8.38 a share. During the third quarter, Spear announced a 71% increase in its second-quarter profit, with most of the gains coming from its James Mitchell & Co. unit, which markets insurance-related investments.

Spear, in fact, announced Thursday that it plans to focus solely on Mitchell’s activities, and will divest its two smaller lines of business: providing discount brokerage and securities specialist services.

Profit gains predictably benefited other companies’ stocks. The region’s biggest winner, Dolco Packaging Corp., whose stock more than doubled to $6.25 a share, reported profits in the first two quarters this year after emerging from bankruptcy reorganization in July, 1991.

Shares of California Amplifier Inc. climbed 26%, to $9.13 a share, after the Camarillo maker of telecommunications equipment said its second-quarter profit more than doubled from a year earlier.

Hamburger Hamlet Restaurants Inc., having posted a $710,000 second-quarter profit compared with a year-earlier loss, saw its stock climb 46% in the third quarter, to $16 a share. The stock of Syncor International Corp., a Chatsworth operator of specialized pharmacies, rose 27%, to $21.25 a share, after Syncor reported a 38% increase in earnings for its fiscal first quarter ended Aug. 31.

The stock of Xircom Inc., a Calabasas producer of components that link personal computers, continued its comeback from a sharp decline earlier this year. The stock, which went public March 30 at $14 a share, soared as high as $21 before plunging to $7.75 in mid-June. In the third quarter, however, Xircom rebounded 29%, to $11.25, after the company said its earnings in its fiscal third quarter ended June 30 nearly tripled from a year earlier.

(Two other regional companies, Cheesecake Factory Inc. and Authentic Fitness Corp., also had splashy initial public offerings. Cheesecake Factory, a Calabasas-based operator of upscale restaurants, went public at $20 a share on Sept. 17 and the stock finished the quarter at $25. Authentic Fitness, a Van Nuys apparel maker, came to market June 25 at $14 a share and closed the quarter at $21.)

But just as predictably, stocks of companies reporting disappointing earnings were dumped by skittish investors.

For instance, Vitesse Semiconductor Corp.’s stock slid 46%, to $4.75 a share, after the Camarillo semiconductor maker posted a 25% drop in profit for its fiscal third quarter that ended June 30. Vitesse’s third-quarter revenue of $9.8 million, although up 58%, also was below expectations.

It was the second straight big quarterly drop in Vitesse’s stock, which had tumbled 45% in second-quarter trading.

Datron Systems Inc., whose stock was among the biggest gainers in the second quarter, abruptly turned in one of the worst showings in the third quarter, falling 29% to $7.50 a share. In late-July, the Simi Valley maker of communications equipment said profit in its fiscal first quarter ended June 30 tumbled 71% from a year earlier.

And the region’s other biggest loser besides Citadel Holding was Rexhall Industries Inc., whose motor home business continues to be hammered by the recession. The stock of Rexhall, which in August announced a 57% plunge in second-quarter sales, fell 48% during the third quarter, to $1.75 a share.

10 Biggest Regional Stock Winners for 3rd Quarter

Closing Price on Percent Stock 9/30/92 Change Line of Business Dolco Packaging $6.25 +127 Packaging goods RKS Financial $5.50 +52 Financial services Spear Financial $8.38 +49 Financial services Biopool International $2.19 +46 Medical testing Hamburger Hamlet $16.00 +46 Restaurants Perceptronics $3.00 +33 Simulators Xircom $11.25 +29 Computer equipment Syncor International $21.25 +27 Pharmacies Summit Care $10.25 +26 Nursing homes California Amplifier $9.13 +26 Electronics

Note: Excludes stocks whose June 30, 1992, price was below $1.50 a share

Source: Media General Financial Services, Inc., Richmond, Virginia

10 Biggest Regional Stock Losers for 3rd Quarter

Closing Price on Percent Stock 9/30/92 Change Line of Business Rexhall Industries $1.75 -48 Motor homes Citadel Holding $13.00 -48 Thrift Vitesse Semiconductor $4.75 -46 Semiconductors Glenfed $2.38 -42 Thrift Leslie’s Poolmart $6.00 -35 Pool supplies Huntway Partners $3.13 -32 Liquid asphalt Mortgage & Realty Trust $1.13 -31 Real estate Networks Electronic $1.75 -30 Aerospace components Ventura Co Natl Bancorp $3.00 -29 Banking Datron Systems $7.50 -29 Communications equip.

Note: Excludes stocks whose June 30, 1992, price was below $1.50 a share