Empty desks, Christmas Eve result in 'non-starter' distressed arena; Penney's gets good review

By Stephanie N. Rotondo

Phoenix, Dec. 24 - Christmas Eve's half-day trading session was a "non-starter," a distressed trader said Monday.

Around midday - only a couple of hours before the markets closed down for the holidays - the trader said only about $27 million of bonds had traded in the entire high-yield space.

"And no more than a million of anything," he said.

"I don't think there was anybody even around today," said another trader, who said he was filling his time cleaning out e-mails and doing other "year-end maintenance."

Not even J.C. Penney Co. Inc. could get going, even as its stock popped following a positive research report from Oppenheimer.

"There was not a thing, no trades," a trader noted.

Penney's analysts make case

Oppenheimer analysts Brian Nagel and Rupesh Parikh proclaimed that J.C. Penney stock was a buy on Monday, noting a strong holiday sales performance.

The strong sales come as the company attempts a turnaround that thus far has not been well received by investors or consumers.

Still, the stock (NYSE: JCP) was up 30 cents, or 1.53%, at midday to $19.89.

In the bonds, however, there was no activity.

Nagel and Parikh are optimistic that J.C. Penney's holiday sales indicate positive moves going into 2012.

"We are increasingly optimistic that the more price promotional stance that J.C. Penney is now assuming will allow the chain to make the most of a challenging holiday selling season and position it well to re-accelerate its aggressive turnaround strategy in 2013," the analysts wrote in a report out Monday.

The analysts further noted that in the near-term, there are still hurdles to overcome. But an increase in sales could help move the company along.

Caesars gets holiday boost

A trader called Caesars Entertainment Corp.'s 5 5/8% notes due 2015 were "a smidge better," at 85 ¾ bid, 86 offered.

Caesars is a Las Vegas-based casino operator.

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