Twitter convertibles unchanged despite lower shares; lower-premium names in focus

By Rebecca Melvin

New York, Jan. 8 – Twitter Inc.’s convertibles were unchanged on Friday despite shares sinking to all-time lows below $20.00 per share.

Shares have been getting pummeled, a New York-based trader said about trading of Twitter stock this week. But the weakness didn’t follow through into convertibles.

“Of the trades that have gone up, they have been in line with swap moves, the trader said, adding that the convertibles had been relatively inactive.

Twitter shares peaked at $23.00 per share this past week and traded as low as $19.60 on Friday before paring losses to close at $19.98.

Twitter’s 0.25% convertible due 2019, or the A tranche, was quoted at 83.875 bid, 84.375 offered versus an underlying share price of $19.80.

Twitter’s 1% convertible due 2021, or the B tranche, was 81.875 bid, 82.375 offered versus the same $19.80 share price, a trader said.

As for what was generating the weakness in the shares, a second New York-based trader said, “Twitter is on the list of most-hated stocks.”

FireEye Inc. was also on the radar of convertibles traders. “FireEye keeps making new lows and has been better to buy with the stock down here,” a New York-based trader said, noting that shares notched a 52-week low on Friday, closing at $18.32.

Elsewhere, trading was focused on lower-premium names like Lam Research Corp. and Microchip Technology Inc., a New York-based trader said.

© 2015 Prospect News.
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