DSN Index advances modestly; 13 issues hit 1990 highs - Discount Store News Index

Discount Store News, August 6, 1990

DSN Index Advances Modestly; 13 Issues Hit 1990 Highs

NEW YORK -- The DSN stock index gained 1.34 percent, or 23.13 points, to close at 1,744.51 during the two weeks ended July 20.

In comparison, the Dow Jones Industrial Average continued its strong advance, rising 2.79 percent, or 80.45 points, to 2,961.14.

Gains for two other major market indicators, however, were more in the DSN league. Standard & Poor's 500-Stock Index rose 1 percent, or 3.59 points, to 361.61, while the New York Stock Exchange Composite gained 1.11 percent, or 2.17 points, to 197.65.

In contrast, the Value Line Index of all stocks declined 0.87 percent, or 2.14 points, to 243.83.

Among discounter issues, 13 hit new highs during the two weeks, six sank to new lows and two closed unchanged.

Office Depot took honors for the largest dollar gain, adding $2.75, or 18.97 percent, to $17.25.

Greenman Bros. was the largest percentage gainer, rising 31.71 percent, or $1.63, to $6.75. During the period, Greenman agreed to sell its 330-unit Circus World toy chain to Melville Corp. for $95 million. Joining Melville's Kay-Bee Toys division, the acquisition makes Kay-Bee the nation's second-largest toy retailer behind Toys "R" Us.

Melville, which also owns Marshalls, accounted for one of the new highs, closing at $54.88. That was a gain of $2.50, or 4.77 percent.

On the downside, Alexander's was the largest dollar loser, shedding $6.75, or 14.97 percent, to close at a new low of $35.50.

S.E. Nichols was the largest percentage loser, sinking 44.86 percent, or 19 cents, to 25 cents. Nichols recently said it may be unable to avoid filing for Chapter 11 bankruptcy if it cannot restructure its debts.

Nichols this spring began converting 19 of its 34 stores to a deep discount drug format called Pharmhouse. But the chain said it lacks enough cash to complete the conversion.

STOR Furnishings also sustained a major loss, losing 32.31 percent, or $2.63, to $5.50.

Waban Inc., comprised of BJ's Wholesale Club and HomeClub home centers, added 50 cents, or 6.15 percent, to $8.63, compared with a high of $20.