Stocks: Investors Steered Off Golden West And onto Ahmanson

Analyst Bruce W. Harting of Salomon Brothers Inc. downgraded shares of Golden West Financial Corp. on Thursday to "hold" from "buy" because of the stock's recent rise in price.

"At two months it was the most short-lived buy rating I've ever had," Mr. Harting said.

He recommends that clients shift to another major California thrift, H.F. Ahamson & Co., whose stock has more upside potential.

The analyst recommended Oakland-based Golden West in early April, when its stock price was $41. It recently went as high as $50.25, and closed Thursday at $49.125, up 12.5 cents.

"I think the stock between now and yearend could get to 10 times my earnings estimate of $5.25 (per share) for next year, which would make it a $52 stock," Mr. Harting said. "But Ahmanson at $22.50 is trading at only seven times my estimate of $3 for next year."

The analyst said the market has not yet recognized the value to Ahmanson of the sale of its New York franchise to GreenPoint Financial Corp. last month. Ahmanson is based in Irwindale, Calif.

Separately, Thomas K. Brown, an analyst with Donaldson, Lufkin & Jenrette Securities Corp., on Thursday cut his earnings estimates for Capital One Financial Corp., Richmond, Va., the credit card issuer.

Mr. Brown, who was traveling and unavailable for comment, was said by market sources to have sliced his estimate this year by 15 cents to $1.95. Next year's estimate was reportedly cut by 25 cents to $2.55.

Capital One was spun off earlier this year by Signet Banking Corp., Richmond. The issuer's shares were up 50 cents to $21.50 in active trading Thursday on the New York Stock Exchange.

Shares of BayBanks Inc., Boston, hit yet another new 52-week high Thursday, up $2.50 to $75, on continued takeover speculation. Earlier this week, financial columnist Dan Dorfman said the company, one of the last major New England independent banks, might be taken over by a Canadian bank.

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