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November 03, 1987

With five days of upward movement, the market has recovered from its recent "crash, meltdown, panic or whatever," according to Irving Katz, director of research for Thomas Green & Associates / San Diego Securities Inc.

"The price of a stock is thought to represent the market's estimate of the present, discounted value of a company's future earnings," Katz said. "If this is true, the present value of America's future prosperity has been revalued down by several hundred billions of dollars."

Some of the oversold, over-the-counter stocks, which have been badly battered to unrealistic prices during recent weeks, have bounced back to some more-realistic values, Katz said.

"The OTC market still suffers from larger-than-normal spreads--the difference between the price that dealers are offering to sell and willing to buy--which shows there is less liquidity in a market where OTC dealers have absorbed extraordinary losses on their inventory positions," Katz said.

Among those recovering were Maxwell Laboratories, up 3 1/2 to 9 3/4, from a post-crash low of 6.

Price Co. was up 4 to 31 3/4, recovering from a low of 26 3/4. Cipher Data Products gained 2 3/4 to 7, after sinking to 3 1/2. Beeba's Creations was up 1 3/4 to 11 after a low of 9. GenProbe was up 1 5/8 to 5 1/2 from its 3 5/8 low, and Synbiotics was up 1 3/8 to 6 from its low of 4 1/2.

Among listed stocks, good gains were made by Cubic, up 3; Foodmaker, up 1 7/8; Imperial Corp. of America, up 1 5/8; Great American First Savings Bank, up 1 1/2; Cohu, up 1 3/8, and San Diego Gas & Electric, up 1.

Cipher Data Products will hold its annual meeting at 10 a.m. Thursday at the La Jolla Marriott hotel.

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