Morning Commentary: Cemex 4.875% convertibles bounce around with shares; Tesla narrowly mixed

By Rebecca Melvin

New York, July 18 – Cemex SAB de CV’s 4.875% convertible was trading actively and bouncing around with the underlying shares of the Monterrey, Mexico-based cement producer early Friday after the company posted earnings that missed estimates on higher revenue.

The Cemex 4.875% convertibles due 2015 were seen last at 122.75 bid with the underlying shares at $12.89, a New York-based trader said. The bond also printed higher at 125.371, according to Trace data.

Cemex shares were also up and seen last higher by 26 cents, or 2%, at $13.15.

Cemex’s 3.25% convertibles due 2016 hadn’t yet traded Friday but were last seen 141.625, the trader said.

The Cemex 3.75% convertibles due 2018 were not heard in trade either and they are generally the most thinly traded of the Cemex bonds.

Cemex swung to a profit for its second quarter, but results missed estimates. EBITDA was $737 million, up from $730 million in the year-earlier period, but below analysts’ estimates of $768 million.

Net sales rose 4% to $4.2 billion, boosted by higher prices and higher sales volume in the United States as well as in Cemex’s Mediterranean, South, Central America and Caribbean and Asia regions, the company said.

Elsewhere, trading was dull in U.S. convertibles early Friday, a trader said. But another name changing hands was Tesla Motors Inc., which saw its 1.25% convertibles due 2015 and 0.25% convertibles due 2019 trading narrowly mixed, both in the 93 context.

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