Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers R > Headlines for Regeneron Pharmaceuticals Inc. > News item |
Morning Commentary: Slumping oil sends energy names lower; Cobalt, Goodrich fall; Priceline down
By Rebecca Melvin
New York, Nov. 4 – Convertibles of energy companies fell in early trade Tuesday in response to a tumble in oil prices after Saudi Arabia cut its prices for crude sold in the United States.
West Texas Intermediate crude extended losses from Monday, sliding 2.8% to $76.58 a barrel at late morning in New York, after reaching as low as $75.84.
“Today’s really about oil; it’s going lower caught a lot of people by surprise, and names in energy and the E&P sector are really getting hit hard,” a New York-based trader said.
Cobalt International Energy Inc.’s two convertible bonds slid to the low 70s from the high 70s early Tuesday. They were close to their all-time lows notched in the mid October plunge, the trader said.
The Cobalt 2.625% convertibles were seen at 70 to 71, and the Cobalt 3.125% convertibles were seen at 71 to 71.5 with the underlying shares at $9.80.
“That’s down about 7.5 points” on the day, the trader said.
In addition to the oil price drop, Cobalt reported disappointing third-quarter earnings. Shares of the Houston-based oil and gas company were down $1.73, or 15%, at $9.65.
Goodrich Petroleum Corp.’s 5% convertibles due 2019 slid about 7 point to 75.
Shares of the Houston-based oil and gas company were bouncing back a bit at late morning and were last seen down 5% at $7.29. Goodrich also posted disappointing quarterly results.
Priceline Group Inc.’s convertibles also fell in the early going on Tuesday after the Norwalk, Conn.-based online travel company posted positive earnings but disappointed investors with its current quarter earnings guidance. The company said it expected earnings of $9.40 to $10.10 per share for the quarter, which was below the $10.91 per share expected.
Shares of Herbalife Ltd. also tanked on Tuesday after the company’s disappointing earnings release late Monday. Herbalife’s 2% convertibles were not yet heard. And Regeneron Pharmaceuticals Inc. was in focus after the Tarrytown, N.Y.-based biotechnology company cut its full-year sales forecast for its Eylea macular degeneration drug.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.