ReadiCare Is Lone Winner in Field of Market Losers : Some County Firms Had a Rough Week

Even without the 35.6-point drop in the Dow Jones industrial average Friday, last week was not a rosy one for a handful of local companies whose stock prices slid enough to put them on the list of the market’s biggest losers.

Still, one local firm was a Wall Street winner. ReadiCare, a Newport Beach company specializing in emergency-care centers, posted a 58% overall increase in over-the-counter trading.

By the close of the markets Friday, ReadiCare had gained 87.5 cents to close at $2.375 per share.

For six other local companies, however, the market was not kind. All made the list of big percentage losers on their respective exchanges.

For some, like Varco International Inc. and Financial Corp of America, the loss was spread over the five-day period. For others, such as the Hammond Co., the stock price plunge occurred suddenly.

Hammond lost $1.25 per share in over-the-counter trading Friday to close at $4.25. In all, Hammond shares lost 22.7% of their value during the day. Company officials had no explanation.

“We really don’t understand what is happening to the stock,” said Norman Brody, executive vice president of the Newport Beach-based mortgage-banking firm. “It has nothing to do with our business. In fact, we’re expecting that the current quarter will be quite good.”

Another big loser in the over-the-counter market was PDA Engineering of Santa Ana, which lost 24% of its value to close Friday at $12.50, down $4 a share for the week. PDA had predicted earlier in the week that it would see earnings and sales drop in the upcoming quarter.

On the New York Stock Exchange, Varco’s $2 convertible preferred shares lost 22% of their value to close Friday at $10.625, down $3 a share. Orders for Orange-based Varco’s popular top-drive drilling system have dried up, prompting layoffs and early retirements. Additionally, the oil tool company has missed seven consecutive quarterly dividend payments on the preferred shares.

And bankrupt Smith International Inc. lost more than 14% of its value on the Big Board last week to close Friday at $2.25, down 37.5 cents for the week. Shares of the Newport Beach oil tools firm once traded for as high as $70.25 in late 1980.

Preferred shares of Financial Corp. of America, the Irvine-based holding company for American Savings & Loan Assn., lost 16.2% of their value on the NYSE to close Friday at $7.125 a share, down $1.375 for the week. Common shares fared little better, losing an even 16% to finish the week at $13.75 a share, down $2.63 from the previous week’s close.