The market, which was anxiously awaiting the November trade deficit numbers, reacted quickly with an upward move, according to Irving Katz, director of research for Thomas Green/San Diego Securities. But that rise had little effect on the stocks of locally based companies.
Xscribe, which came public at 8 in August, 1987, fell three-quarters to 2 3/4 after reporting third-quarter earnings of 3 cents per share versus 30 cents in the prior year's third quarter.
Advanced Marketing Services, which came public at 13 in July, 1987, gained one-half to 8 as it announced a large increase in third-quarter earnings of 47 cents versus 30 cents on a smaller number of shares in the previous year's quarter.
There was profit taking in some of the biotechnology stocks as Molecular Biosystems dropped seven-eighths to 12 3/4. The company last week announced that regulators had approved clinical trials of its ultrasound contrast agent. The stock was San Diego's 1987 stellar performer, moving up 145%.
Gen-Probe, which received FDA clearance to market its chlamydia diagnostic test, fell one-half to 5 7/8. The stock had gained two points in the first week of 1988.
Among the good gainers last week were Home Federal Savings & Loan, up 1 3/4 to 22 1/2. The S&L still sells at a substantial discount from its more than 40-per-share book value, Katz observed.
PS Group gained 2 to 28 as insiders and sophisticated investors continue to accumulate the company's stock.
In addition, there were recoveries of 1 1/2 points each in Price Co., WD-40 and Xytronyx.
Forbes magazine's list of stocks selling at low price-earnings ratios on the basis of 1988 estimated earnings included Rohr Industries, which gained one, and Beeba's Creations, which was unchanged. Beeba's reported a first-quarter loss that was driven by securities transactions, Katz said.
A peculiar move in Fabulous Inns--the stock dropped 2 1/2 points last week and recovered 1 on Monday to 3--was connected to the sale of a large block of stock in the open market, Katz said. The company had tendered and purchased back most of its stock last year at 6 a share. With the tender expiring, the question remains why this block would be sold at these prices when it could have been tendered at 6 last year, Katz said.