Morning Commentary: Allegheny Technologies edges up again; Chesapeake extends gains

By Rebecca Melvin

New York, May 23 – Allegheny Technologies Inc.’s 4.75% convertibles continued to improve early Monday, extending gains from Friday after the bond put in a weak debut in the convertibles market on Thursday.

Allegheny’s 4.75% convertibles lifted above par, trading at 101.5 last, which was better on the day by 2.5 points, according to Trace data. Allegheny shares were also up, trading higher by 50 cents, or 4.6%, at $11.75 last. On their debut on Thursday, the bonds went out at 98.5 to 99 with shares at $11.25.

Elsewhere, Chesapeake Energy Corp.’s 2.5% convertible notes due 2037 traded up yet again, changing hands at 91.75, which was better by 0.875 point on the day. Shares of the Oklahoma City-based energy company were down at late morning by 2 cents, or 0.5%, at $3.71 last. Three weeks ago – on May 3 – the Chesapeake bonds were seen trading just south of 83.

Molina Healthcare Inc.’s two convertible bonds both traded a little higher on Monday as shares of the Long Beach, Calif.-based Medicaid services company gained about a buck, or 2.2%, to $47.00.

The Molina 1.125% convertibles due 2020 traded at 129.8, which was up 3.725 points, against shares at $47.00, a New York-based trader said. Molina’s 1.625% convertibles due 2044 traded up 0.375 point to 107.6 against the same share price.

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