Midday Commentary: Chart Industries adds on hedge after earnings miss; DDR in focus

By Rebecca Melvin

New York, April 29 - Chart Industries Inc.'s convertibles were trading actively in the convertibles market early Tuesday after the Garfield, Ohio-based engineering, procurement and construction company missed earnings estimates and the stock slid 13%, market players said.

Chart's 2% convertibles due 2018 were seen a point better on a dollar-neutral, or hedged, basis versus the underlying shares, a New York-based trader said. Chart Industries shares were last down nearly 7%.

Elsewhere, DDR Corp. was said to be in focus among convertibles players as shares of the Ohio-based shopping mall real estate investment trust wavered between gains and losses in early trading.

Late Monday DDR announced it closed the sale of 50% ownership in Sonae Sierra Brazil for $344 million and that it was redeeming the remaining $55 million outstanding of its 7.375% class H preferred shares.

Otherwise the convertible market was very quiet, one trader said.

Salesforce.com Inc.'s 0.25% convertibles due 2018 looked to be lower with the shares off fractionally, although traders queried said they hadn't traded the bonds.

The Salesforce 0.25% convertibles were shown to have printed on Trace data at between 108.25 and 108.75, which was down from about 111.75 to 112.25 on Monday.

In the broader markets, equities were trading higher.

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