Midday Commentary: New Spectrum edges up on debut; Ford lower on disappointing outlook

By Rebecca Melvin

New York, Dec. 18 - Spectrum Pharmaceuticals Inc.'s newly priced 2.75% convertibles traded just above par in the early going Wednesday after the Henderson, Nev.-based biopharmaceutical company priced $100 million of the five-year notes at the cheap end of talk, according to a syndicate source.

The Spectrum 2.75% convertibles came out of the chute at 100.5 bid, 101.5 offered and subsequently were trading at 100 bid, 100.5 offered.

Spectrum shares were down by about a nickel, or 0.6%, at $8.20 at late morning. The shares had fallen 9% on Tuesday.

Back in established issues, Ford Motor Co. was atop the Trace-data volume chart, with the Ford 4.25% convertibles due 2016 seen down 6.7 points at 191.

Ford shares were also lower after the Dearborn, Mich.-based auto maker released 2015 profit guidance that is lower than what it expected for 2013.

The auto maker now expects total company pre-tax profit, excluding items, of $7 billion to $8 billion. That's down from an expected $8.5 billion in 2013.

Ford also expects North America 2014 pre-tax profit to be lower than in 2013, with an operating margin ranging from 8% to 9%, consistent with the company's targeted ongoing range of 8% to 10%.

The company also expects special item charges in Europe in 2014 of $400 million to $500 million, mainly related to personnel separations; these charges will not be reported in operating results, and the company's results in Europe are expected to improve compared to 2013.

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