Morning Commentary: Herbalife convertibles, stock decline post-earnings; Spirit Realty weakens

By Stephanie N. Rotondo

Phoenix, July 29 – Herbalife Ltd.’s 2% convertible notes due 2019 were coming in early Tuesday following the company’s disappointing earnings release late Monday.

The notes were seen at 89.125 at mid-morning, down from 96.125 going out Monday. As for the stock, it was “down a lot,” a trader said.

The equity was trading at $59.48, down $8, or 11.86%.

Investors were hoping that the dietary supplement seller would beat analysts’ expectations for the 22nd consecutive quarter. However, the company missed profit estimates by a penny.

Meanwhile, a trader said Spirit Realty Capital Inc.’s 2.875% convertible notes due 2019 were “a little bit cheaper,” trading around 100.75.

The company’s stock was up 3 cents at $11.73 at mid-morning.

There was no fresh news out to push the paper around, however. The real estate investment trust is slated to bring earnings next week.

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