Macheezmo Mouse Gains As Dow Falls

The stock market opened down 42 points yesterday. In a similar vein late this summer, it has snubbed its nose at new issues, forcing many companies - Attachmate and Ernst Home Centers are two Seattle-area examples - to delay or erase plans to go public.

So what happened yesterday with Macheezmo Mouse Restaurants? The Portland-based chain of Mexican meals sneaked into the eye of the hurricane and emerged fat and saucy.

In what serves as a credit to Macheezmo's underwriters, Pacific Crest Securities, the stock was priced at $6 a share but garnered $11 in opening trading. None can say what would have happened in a rising market. But the investor who has willing to buy $1,000 worth of the stock during the underwriting could have sold for more than $1,800 in early trading.

At day's end, Macheezmo Mouse stock rested at $8.50, up $2.50, or 42 percent, above the initial price.

The chain, with locations in Seattle, has 13 stores. It plans to use the roughly $5.5 million in proceeds to continue expansion. Interestingly, none of the original investors chose to sell, a positive sign because it demonstrates confidence in the company.

The Dow Jones industrial average looked plenty confident Thursday when it pushed near its all-time high of 3,978.36. But it faded badly yesterday, losing 20.53 points to end the week at 3,933.55. For the five sessions, the Dow rose 58.69 points.

Bonds were bashed, especially yesterday when the 30-year

Treasury plummeted more than $15 per $1,000 of face value to yield 7.78 percent. That's the worst in more than two years.

Bart Ward, an investment manager with Ward & Co. in Minneapolis, said fear and pessimism is so great in the bond market he believes the market is within 10 percent of bottom and a perfect time to buy.

Among 164 regional stocks tracked by The Times, 75 rose, 56 fell and 33 were unchanged. The Murphey Favre Northwest 50, 50 stocks weighted by their regional economic impact, rose 9.06 points to 2,551.21.

Among the week's leaders was Merix, a recent spinoff of Tektronix. The Forest Grove, Ore., company reported strong sales and profits Tuesday. The stock skipped $3.625, or 29 percent, to $16.25. The stock sold May 26 for $9, meaning the gain has been 81 percent. Merix makes computer circuit boards and other high-tech devices.

Seattle FilmWorks stock jumped $4 a share - $2.25 yesterday - to $18.25, a 28 percent gain. Jim Smith, chief financial officer, said his best guess was favorable analysts' reports from the Ragen MacKenzie and Piper Jaffray brokerages, coupled with warm remarks from an investment newsletter.

Key Tronic, the Spokane-based computer-keyboard maker that has been in a funk, charged $1.50 a share ahead, or 17 percent, to $10.25. Piper Jaffray's Bob Toomey, who was positive on FilmWorks, issued a "strong buy" rating on Key Tronic, saying he expected a price of $18-$20 in the next two to three years.

Digital Systems International, on the other end, gave back 87.5 cents a share, or 12 percent, to end at $6.50. The Redmond maker of call-management systems hit a low of $2.25 a share in March, and has been climbing ever since. It hit a 52-week high of $7.75 on Monday, then succumbed to profit takers.

Lamonts Apparel, struggling against negative sales trends, revealed its sixth consecutive quarter of financial losses. The stock that traded as high as $4 a share in the past year skidded to 13/16ths, or 81.25 cents a share. That was off 6.25 cents, or 7 percent, from a week ago.

Information from Bloomberg Business News is contained in this report.

-------------------------------------------------------------. Taking stock of the Northwest. . The best and worst performers, based on percentage changes, for the week of . Sep. 12 through Sep. 16. .

Friday close Change %. .

1. National Securities 3.250 $0.750 30.0.

2. Merix 16.250 3.625 28.7.

3. Seattle FilmWorks 18.250 4.000 28.1.

4. Imre 2.500 0.375 17.6.

5. Key Tronic 10.250 1.500 17.1.

6. Pacific Rehab 6.875 1.000 17.0.

7. Utilx 4.125 0.500 13.8.

8. Organik 2.125 0.250 13.3.

9. Cellular Technical 12.938 1.438 12.5. 10. Electro Scientific Ind. 16.125 1.750 12.2. .

Friday close Change %. .

1. Digital Systems Int. 6.500 $0.875 -11.9.

2. International Yogurt 3.750 0.500 -11.8.

3. Arrow Transportation 5.375 0.500 -8.5.

4. Oregon Steel Mills 16.250 1.500 -8.5.

5. Carver 2.875 0.250 -8.0.

6. Prism Group 2.188 0.188 -7.9.

7. Mont. Precision Mining 2.000 0.125 -5.9.

8. Flir Systems 12.000 0.750 -5.9.

9. TriQuint Semiconductor 6.375 0.375 -5.6. 10. Synthetech 2.125 0.125 -5.6. . Note: Stocks below $2 excluded.