All is not rosy with Great American...

All is not rosy with Great American Bank, which dropped $2.625 for the week after reporting a loss of $.42 a share in its second quarter, said Irving Katz, director of research at Thomas Green/San Diego Securities. The drop was related to loan loss provisions for the bank’s Arizona subsidiary.

But Great American stock may be undervalued, Katz said. At its Monday close of $10.625, the stock is selling at 62% of tangible book value of $17.22 a share. In addition, the Arizona loans represent only 5% of assets. And Great American’s branch system is one of the best in Southern California, Katz said.

Meanwhile, the Dow Jones Industrial Average reached new post-October, 1987, crash highs. High-water marks for San Diego County-based firms were reached by Mail Boxes Etc. at $24.25, DH Technology at $13 and San Diego Gas & Electric at $42. SDG&E; stock is selling at $7 below the valuation of the SCE stock that SDG&E; shareholders would receive under terms of the proposed merger.

Southwest Bank hit a new high of $7.875, despite the fact that shareholders are due to receive $8.69 worth of Security Pacific National Bank stock if and when the merger clears regulatory hurdles. Southwest shareholders have already approved.

First National Corp. gained $2 after declaring a 10% stock dividend and a 10-cent-a-share cash dividend, and reporting sharply higher earnings.

Biomagnetic Technologies, which develops biomagnetic imaging instruments used in the diagnosis of functional disorders in the brain, heart and neuromuscular systems, made its initial public stock offering of 1.5 million shares priced at $9 each. The stock closed the week unchanged at that price.

Dropped from our quotation list are Furnishings 2000 and TeleQuest, as they no longer meet NASDAQ listing requirements.