Midday Commentary: Fluidigm zooms higher on debut; Lam Research adds after earnings; KB Home trades

By Rebecca Melvin

New York, Jan. 30 - Fluidigm Corp.'s newly priced 2.75% convertible bonds zoomed up in early action on their debut in the secondary market on Thursday after the genomics company priced $175 million of the 20-year convertible bonds at the tight end of tightened talk.

Fluidigm's new 2.75% convertibles due 2034 moved up to 106 bid, 107 offered in active trade with the underlying shares up $3.00, or 7.5%, at $42.96.

"The stock is on fire," a Connecticut-based trader said, adding that on a hedged basis the bonds were up 1.5 points on the bid side, assuming a delta of 70%.

Fluidigm was definitely dominating the day's action with $45.5 million of bonds, or nearly half, of the day's volume, in Fluidigm trades as of 10:42 a.m. ET, according to Trace data.

Back in established issues, Lam Research Corp.'s two convertible issues were in trade after the Fremont, Calif.-based semiconductor-equipment company reported earnings and revenue that beat estimates and guided the current quarter above consensus.

Lam's 1.25% convertibles due 2018 changed hands at 120.057, which was up about 0.5 point, and Lam's 0.5% convertibles due 2016 traded at 113.447, which was up 1.6 points on the day. Lam shares dropped back to near the flat line after an initial pop on the earnings news.

Also KB Home's 1.375% convertibles due 2019 changed hands at 104.154, according to Trace data. Shares of the Los Angeles-based homebuilder and financial services company were up 1% at $18.87 but were losing steam by late morning.

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