Morning Commentary: Intel bonds add with shares after earnings; SanDisk in line ahead of earnings

By Rebecca Melvin

New York, April 15 – Intel Corp.’s convertibles traded higher on an outright basis early Wednesday on the back of quarterly results that pulled the chip giant’s shares higher by 4%.

Intel’s 3.25% convertibles due 2039, which were trading more actively than the more balanced Intel 2.95% convertibles, were up several points to 164.375 bid, 164.75 offered, versus an underlying share price of $32.80, a New York-based convertibles analyst said. The bond had traded late Tuesday at 161.9 after the earnings report was released.

Intel’s 2.95% convertibles due 2035 were trading at 127.125 bid, 127.5 offered versus a share price of $32.80. That was up from around 125 last.

Shares of the Santa Clara, Calif.-based company were up $1.33, or 4%, at $32.82 last. Information on how the bonds did on swap wasn’t immediately available.

Intel reported results that were largely in line with expectations. The report was followed by a couple of analyst upgrades, including that of Wedbush, which raised its rating on the stock to “outperform” from “neutral,” citing stronger growth expectations for the third quarter.

Also in the chip space, SanDisk Corp.’s convertibles were a little better outright and in line with shares ahead of the storage chip maker’s results expected after the close.

Early Wednesday, the SanDisk 1.5% convertibles were trading at 148.125 bid, 148.375 offered versus a share price of $70.32, and the SanDisk 0.5% convertibles were at 104.375 bid, 104.625 offered versus a share price of $70.32, a convertibles analyst said.

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