Morning Commentary: Iconix recouping some losses; Priceline 1% off with stock on disappointing view

By Rebecca Melvin

New York, Nov. 9 – Iconix Brand Group Inc.’s 2.75% convertible bonds were trading up early Monday, recouping some of the losses suffered on Friday after the New York-based brand management company announced restatements of certain financials and lowered forward guidance, a New York-based trader said.

The Iconix 2.5% convertibles due 2016 were seen in the range of 87 to 80, which was up about 7 points from Friday when the bonds were seen at 78 to 81. An early Trace print went up at 87.5. That compares to about 97 last Thursday.

Iconix shares were also up about 11% at $7.66, after plunging 57% on Friday.

Priceline Group Inc.’s convertibles were lower along with the underlying shares after the online travel site reported earnings and revenue that beat estimates but disappointed investors with its current-quarter outlook.

Priceline said it expects to earn $11.10 per share to $11.90 per share for the fourth quarter, which was below analysts’ estimates for earnings of $12.42. Bookings and revenue were also seen lower, with bookings expected to fall 5% to 10% from a year earlier.

Priceline’s 1% convertibles due 2018 were down nearly 11 points to 150. The other Priceline convertibles were not trading as actively, but the Priceline 0.35% convertible due 2020 changed hands at 122.5, which was down 7 points on the day. Priceline shares were down 9% at $1.318.00.

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