The malaise in the stock market continued...

The malaise in the stock market continued this past week, even though Monday’s Dow Jones Industrial Average was up 24 points over last Monday as part of a feeble attempt at a rally, according to Irving Katz, director of research for Thomas Green/San Diego Securities.

Monday’s biggest surprise was the leveraged buyout offer involving Foodmaker. The $19.125 per share LBO offer helped Foodmaker close up $6.75 for the week, Katz said.

Foodmaker, which has been criticized for being very highly leveraged, “apparently felt that another layer of leverage to take it private would be a just desert to its critics,” Katz said.

A new high was made by Pancretec at $5.50 after the U.S. Food and Drug Administration approved a new nutrition pump.

San Diego Gas & Electric came close to its annual high of $35 as it gained $.375, to $34.875, with the market waiting for SDG&E;’S board of directors to vote on an acquisition bid by SCEcorp.

Mail Boxes Etc. reported excellent first-quarter earnings of $.17, against $.14 for the same period last year, but only managed a $.25-a-share stock gain last week.

Molecular Biosystems was up $.875 as the Food & Drug Administration approved its marketing of a DNA probe test kit.

Cubic Corp. gained $.50, and shareholders received a personal letter from Chairman Walter Zable saying that, “despite news reports, at this time neither the company or any of its officers, directors or employees are targets” of a continuing national investigation into defense procurement fraud.

PS Group was up $.50 to $29.50 as Barrons revealed that investor Warren Buffet, through one of his insurance subsidiaries, had purchased 117,000 shares of PS Group stock at an average price of $27.50.

Other good gains were made by Price Co., up $1.50, and Wavetek, up $1.

There were four new lows for the week: Western Health Plans at $.875; Beeba’s Creations at $6.375; Kaypro at $.44, and Telequest at $.4375.