Cenveo slides on poor earnings; energy names weak, Level 3 loses; other telecoms see a bounce

By Paul Deckelman

New York, Nov 9 – Traders in distressed debt and bonds of other underperforming companies said Thursday was another day of market weakness, with most names lower amidst investor angst over weak earnings and uncertainly about what, if anything, will be coming out of Washington in terms of tax code changes.

Cenveo Inc. was one of the big losers on the day after the company reported third-quarter results that included a sizable net loss versus a year-ago profit, completely missing analysts’ expectations. The news overshadowed a company announcement of an asset sale.

Oil and natural gas company names such as California Resources Corp. and Denbury Resources Inc. lost ground, their bonds not helped by an upturn in world crude oil prices after two straight sessions of decline.

Other losers on the day included names such as Valeant Pharmaceuticals International Inc., Tesla Inc. and Rite Aid Corp.

Level 3 Communications had a particularly big loss on the day.

But other telecommunications operators recently under intense pressure, such as wireline telecommunications providers like Frontier Communications Corp. and CenturyLink, Inc. – Level 3’s new corporate parent – were rebounding from their recent depths.

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