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May 20, 1986

Henley Group, which will be spun off to Allied-Signal shareholders on May 27, priced its public offering of 60 million shares after the market closed Monday at $21.25 per share, according to Irving Katz, director of research at San Diego Securities.

Henley's public offering of $1.3 billion is a record for a company's initial sale of stock, said Katz.

Henley, which Katz described as "essentially a basket of 35 unprofitable cast-offs from Allied-Signal," has a book value of $22.59 per share, according to the company prospectus. Before Monday, the stock had been trading on a "when-issued" basis in the $23 to $24 range.

Henley will use some of the proceeds of the offering to purchase San Diego-based Imed from Warner-Lambert for $163 million.

San Diego Gas & Electric, up one-quarter to $33, proved to be one of the lowest-yielding utilities--6.7% annually on its present dividend, Katz observed.

Cubic rebounded five-eighths for the week, even though the company reported earnings of five cents per share for the quarter and 20 cents for the six months, compared to 51 cents and 97 cents for the previous year's periods.

Chairman Walter Zable explained that the profit situation was a "temporary setback" and predicted that the firm will report higher earnings after the completion of troubled defense programs during the remainder of this fiscal year.

GTI, after hitting a new high of 3 3/8 last week, closed up one-half for the week at 3. The firm showed its new computer image generator at the National Computer Graphics Show in Anaheim last week.

Intermark was down one-quarter after reporting a loss of 40 cents per share for the fourth quarter and 66 cents for the fiscal year ended March 31.

Southwest Bank was unchanged at 4 and is completing its sale of $5 million of 11% mandatory convertible debentures, which appears to be oversubscribed, Katz said.

Western Health Plans was down 1 for the week in what Katz described as "continued reaction to continued losses."

Beeba's Creations continued its roller-coaster ride in anticipation of a stock offering of 900,000 shares, Katz said. The stock was down 2 1/2 for the week after rising 3 points the previous week.

Cousins Home Furnishings was down one-eighth as the company "reported continuing losses with each name change," Katz quipped.

International Totalizator Systems was down three-eighths after reporting a loss of 5 cents per share in the first quarter ended March 31.

Langley was up one-eighth on the announcement of a second-quarter dividend of 18 cents a share, compared to just 3 cents during the same quarter a year ago. Revenues were up by more than 50%, Katz said.

Maxwell was down three-quarters even though it reported higher earnings of 21 cents for the quarter ended April 30 compared to 19 cents a year ago.

Price Club was up 3 for the week, hitting a post-stock-split high on a favorable mention in Sunday's New York Times.

Sym-Tek Systems was up one-half after a mention in Business Week's list of "Hot Growth Companies."

Womens Health Centers of America, which went public at 6, closed the week at 5 5/8, Katz said.

Fotomat, which was founded in San Diego and subsequently relocated to St. Petersburg, Fla., was up five-eighths to 1 5/8 after Konish Iroku, who owns 60% of the company's stock, announced a cash tender offer for the remaining 40% at $1.62 per share.

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