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March 18, 1986

Profit-taking hurt interest-rate-sensitive stocks Monday after a week when the Dow Jones Industrial Average advanced nearly 93 points, according to Irving Katz, director of research at San Diego Securities.

Savings and loans and utilities were down across the board. Great American First Savings was down 2 5/8; Home Federal, 1 5/8; Imperial Corp., 3/4 and San Diego Gas & Electric, 1.

Sun Savings slipped 3/8 to 3, as investors waited patiently for a cash infusion that would keep the thrift afloat, Katz said.

At 24 5/8, Great American is selling at only six times its estimated 1984 earnings of $4.40 per share. And the S&L's proposed mergers with Home Federal of Arizona and Los Angeles First Federal are coming closer to fruition.

Cubic advanced 1 to 21 as investors realized that the company has a brighter future than a hefty non-recurring first-quarter write-off might have indicated.

Energy Factors moved up a point to 18 3/4 with the announcement that the company planned to acquire Cogeneration National Corp. from CP National.

On the day before shareholders voted on a proposed acquisition by Eli Lilly & Co., Hybritech moved up 2 1/2 to another new high. The market evidently believes the novel contingent payment units that are part of the Lilly deal will be worth more than the $3 value attached by Hybritech, Katz suggested.

ISSCO was up 1/2 on the announcement that the company would purchase a 60% interest in a Swedish marketer and developer of software.

Kaypro was down to 2 3/8 after reaching 4 last week during a rapid flurry of trading that industry analysts suggested was generated possibly by a takeover bid, a move by Andrew Kay to take the company private, or a return to profitability.

"Must have been none of the above," Katz quipped.

Northview was up 1/2 to 17 1/2 although earnings were down 62% for the year to 51 cents per share.

The Price Co. hit a new post-split high of 45 on Monday but closed at 42 1/2 after the company announced that it was calling convertible debentures which are convertible at 28 7/8. Although most of the $75-million issue will be converted because of the substantial premium, the company left the door open for additional future financing.

WD 40 was up 1 to 24 1/2 on sharply improved second quarter sales and earnings. Second quarter earnings rose 12% to 40 cents compared to the same quarter a year ago. Revenues rose $5.7 million to $18.9 million.

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