While Japanese stocks remain in the doldrums,...

While Japanese stocks remain in the doldrums, the Dow Jones Industrial Average continues to advance and is only 47 points shy of its Jan. 2 all-time high of 2810, said Irving Katz, director of research at Thomas Green/San Diego Securities.

But San Diego stocks remain lethargic, with a few exceptions. HomeFed Corp., the parent of HomeFed Bank, gained $1.625 after reporting excellent earnings in the first quarter of $1.48 per share, versus $1.31 for the corresponding period last year.

The stock is still down 40% from its 1989 high of $47.50 and is selling at a 30% discount from tangible book value, which is more than $40 a share.

“Can the expectations of doom in California real estate be so horrendous that HomeFed stock should be selling at these levels?” Katz asked.

Five San Diego stocks managed new highs this week.

Among them was Cubic Corp., also undervalued on a book value and earnings basis. The stock gained $1.75, reaching a new 1990 high of $20.875.

Mission West Properties made a new high of $9.50 on trading volume of only 2,200 shares.

The company, which is controlled by Intermark, last week announced the sale of its High Bluff Del Mar office building that will result in an after-tax gain of $2.2 million.

DH Technology, which was favorably mentioned in last week’s Barron’s magazine, continued to move up, reaching a new high of $16.875. The largest gainer of the week was Magma Power, which gained $3 to a new high of $37 a share.

Smith Laboratories, which is merging with closely held Columbia Hospital Corp., hit a new high of $3.81.

The proxy statement recently mailed to shareholders for the May 16 meeting to approve the merger has 332 pages.

Other good gains last week included Molecular Biosystems, up $1.875, and Price Co., gaining $1.50 after rebounding from its 1990 low of $34.50.