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Subject: NASDAQ Amex Market
Date: Tue, 10 Nov 92 12:43:39 EST
Message-ID: <8.1992Nov10.124340@AmeriCast.com>

11/10/92


TITLE NASDAQ Amex Market Nasdaq Adds 0.9% As 245 Mil Shares Trade

Biotech Rally Gains Momentum; Johnson Products Jumps 41/8 Lance
Ignon Biotechnology and technology stocks teamed up yesterday to
drive the Nasdaq to its fourth straight gain and its highest
close in nearly eight months.  The Nasdaq composite index shot up
5.23 points, or 0.85%, to 622.05 - its highest close since March
20. Advances passed declines 7-to-5 as volume swelled 7% to 245
million shares - well above the 197 million traded on the New
York Stock Exchange.  The NYSE composite index rose 0.23%, and
the American Stock Exchange market value index climbed 0.55% with
winners leading 6-to-5.  Biotechnology stocks followed through on
a powerful advance last week, when Investor's Business Daily's
index for the group rose 5.2%. Although some analysts maintain
that the move is no more than a rebound after a crushing sell-off
earlier this year - the biotech index has fallen about 30% since
Jan. 1 - others contend that industry fundamentals are fueling a
more sustainable rise.

Analyst Jay B. Silverman of Wertheim Schroder & Co. noted that
researchers and biotech firms are likely to begin presenting up-
beat reports at a series of medical conferences through the end
of the year. Silverman has talked with investors around the world
recently and found that, "They're very interested in biotechnolo-
gy, and they have a lot of cash." Those factors, along with talk
of biotech investment tax credits, the absence of looming regula-
tory bombs and the potential for short-covering, convinced
Silverman that the group's leaders will probably remain in an up-
trend through the end of the year.  Immunex Corp. surged 31/4 to
531/4. Silverman said four medical conferences scheduled between
today and Dec. 9 will highlight Immunex's PIXY321, a compound for
boosting platelet and white blood cells, and its IL-1 and TNFr
soluable receptors for sepsis and autoimmune diseases.  The
analyst said he also was encouraged by the the possibility of ex-
panded uses for Leukine, the company's approved product for bone
marrow transplant patients. Lastly, he said, Immunex may buy back
Receptech Corp. before Jan. 31 and boost confidence in soluable
receptors.  Meanwhile, Amgen Inc. added 25/8 to 687/8 and Chiron
Corp. 25/8 to 551/2. Also, Immune Response Corp.-
 gained 21/8 to 201/4 and Regeneron Pharmaceuticals 11/4 to 10.
Biogen Inc., which has been ascending since September, tacked on
another 21/2 to 443/4 on turnover of 1.6 million shares - three
times average. Hambrecht & Quist Inc. reiterated a strong buy and
increased its profit estimate for the coming year as well as for
each year through 1995. Biogen earned 15 cents a share last year.
H&Q raised its 1992 projection to 85 cents a share from 57 cents.
H&Q also reiterated a "speculative buy" on Centocor Inc., which
rose 21/8 to 151/8.  Synergen-
 surged 27/8 to 557/8 in heavy action. The Boulder, Colo.-based
firm said it finished signing up patients for the final testing
of Antril, its treatment for sepsis, a potentially deadly side
effect of infection.

Among conventional drug makers, Gensia Pharmaceuticals Inc.
climbed 21/2 to 283/4. Analysts scrambled to reiterate buy rat-
ings after the San Diego-based firm said it planned to file a new
drug application for its Arasine compound with the Food and Drug
Administration.  Medco Containment Services Inc. gained 13/8 to
335/8 on a torrent of nearly five million shares - three times
normal. The low-cost drug provider said it was re-evaluating a
merger of its newly formed subsidiary with Diagnostek Inc. Medco
said it had discussed the possibility of decreasing the number of
Medco shares it would exchange.  On the downside, Medex Inc.
plunged 71/4 to 14 in heavy turnover. After Fridays' close, the
maker of disposable products for life support systems reported a
fiscal first-quarter profit of 16 cents a share - 33% below a
year earlier. The company also warned that second-quarter results
would be below the same period a year before.  In the technology
group, software developr BMC Software Inc., up 4 points in the
final two days of trading last week, surged another 2 to 651/2.
Sybase Inc. added 2 to 441/4 and Autodesk Inc. 15/8 to 551/8.
Networking stocks, the hottest area of the market, continued to
pick up support. Wellfleet Communications Inc. added 21/4 to
583/4 and SynOptics Communications Inc. 21/8 to 651/8.  Network-
ing stocks, strong since the bull market began in October 1990,
have picked up renewed support on the theory that businesses will
continue to boost their computer power by linking existing net-
works. After climbing 4.3% last week, the Computer - Local Net-
work index was up 37.1% for the year.  American Power Conversion
Corp. rose 21/4 to 42 following an announcement that it plans to
split its stock 2-for-1 on Dec. 17. American Power had a 2-for-1
last December and a 3-for-1 in the fall 1990.  SBE Inc., which
makes microcomputer boards, climbed another 23/4 to 173/4. The
stock has gained 75% since breaking out of a choppy base three
weeks ago.

Compression Labs Inc. vaulted 23/4 to 143/8. The maker of video
conferencing equipment announced a new version of SpectrumSaver,
a digital satellite transmission technology.  On the buyout
front, Colorado National Bankshares Inc. surged 61/8 to 387/8
after it said it would merge with First Bank System Inc. in a
$525 million stock swap.  The announcement touched off a wave of
speculation over other possible buyouts and mergers among western
banks. Zions Bancorp-
 advanced 33/8 to 685/8, First Security Corp. of Utah 11/4 to
263/4 and West One Bancorp 11/4 to 461/4 Elsewhere, DSG Interna-
tional Ltd., a maker of disposable diapers, climbed 21/2 to
191/4. Merrill Lynch Capital Markets reiterated a buy and upped
its 1992 estimate to between $1.30 and $1.35 a share. DSG earned
$1.26 a share in 1991.  Rag Shops Inc. descended 23/4 to 101/4
after reporting a fiscal fourth-quarter loss of three cents a
share, compared with a penny profit a year earlier.  In Amex ac-
tion, Johnson Products Co. surged another 41/8 to 341/2. The
stock has gained 80% this month after the hair-care products
manufacturer reported a 331% improvement in fiscal fourth-quarter
earnings.

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