Convertibles volume low in light trading; SanDisk paper rallies; Goodrich Petroleum quiet

By Cristal Cody

Tupelo, Miss., April 17 - The convertibles market stayed mostly quiet in the short session on Thursday as traders and investors cleared out ahead of the long holiday weekend, according to market sources.

Volume was a low $30 million in convertibles by midday and later hit $188 million, a source said.

SanDisk Corp.'s 1.5% convertible senior notes due 2017 climbed to 167.75 bid, 168.25 offered versus where the underlying shares traded at $83.00, a trader said.

The notes were quoted in the 158.50 area on Wednesday.

SanDisk's stock rallied over the day on better-than-expected first-quarter earnings and closed up $7.14, or 9.41%, to $82.99.

The Milpitas, Calif.-based data storage company sold $1 billion of the three-year notes in 2010 at par.

No trades were seen in Goodrich Petroleum Corp.'s 5% convertible notes due 2032 on Thursday as the "stock barely moved," a trader said.

Shares rose 10 cents, or 0.41%, to end at $24.36.

The company saw its stock rise more than 30% on Monday after it put out an operational update.

Traders pegged Goodrich Petroleum's 5% convertible notes due 2032 at 110 bid, 111 offered on Monday and last at 110.25 bid, 111 offered on Tuesday before trading fell off.

The Houston-based oil and gas company sold $57 million of the notes on Sept. 25 at par.

Mentioned in this article:

Goodrich Petroleum Corp. NYSE: GDP

SanDisk Corp. Nasdaq: SNDK

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