Fannie Mae preferreds preferred; Standard Pacific wrecked; new investor doesn't help AMD; EMC mixed

By Evan Weinberger

New York, Nov. 16 - Fannie Mae's convertible preferred stock rose as the mortgage-backer's common stock sank. Fannie Mae faced accounting questions but did say that it would be able to make back some of its third quarter subprime-related losses.

Standard Pacific Corp. convertibles and stock plunged Friday, although for reasons that were not entirely clear.

A major investment from a Middle Eastern government couldn't help Advanced Micro Devices Inc. convertibles, while Intel Corp. convertibles rose.

EMC Corp. convertibles ended the day mixed.

Much remained quiet on the convertibles front Friday, with mostly the usual suspects trading in narrow ranges.

"I have a lot of stocks that have moved up and down, but not a lot of it's been news related," an analyst said.

A trader added simply: "Nothing in convertibles."

Stock markets were volatile Friday, as continued unsettling earnings reports and a larger than expected drop in industrial production in October combined with bargain hunting to produce a fluctuating trading session.

In the end, the Dow Jones Industrial Average added 66.74 points, or 0.51%, to close at 13,176.79.

The Nasdaq picked up 18.73 points, or 0.72%, for a 2,637.24 close.

And the Standard & Poor's 500 gained 7.59 points, or 0.52%, for a 1,458.74 close.

No new convertibles hit the tape in the United States Friday.

Fannie Mae has mixed day

Washington-based mortgage company Fannie Mae had a muddled Friday.

The day began with news stories critical of Fannie Mae's accounting standards. Then, the GSE's chief financial officer said Fannie may make back some of the $670 million in losses it took on bad loans in the third quarter as he defended the accounting practices. The day ended with Fannie Mae issuing $500 million in preferred stock.

By the closing bell, Fannie Mae's 5.375% series 2004-1 convertible perpetual preferred stock (NYSE: FNM-PI) had gained 75 cents, or 1.92%, to close at $39.75.

Fannie Mae stock (NYSE: FNM) went in the other direction, losing $2.35, or 5.46%, to close at $40.69.

Standard Pacific torn down

Irvine, Calif.-based homebuilder Standard Pacific took a beating Friday, although there was no news out on the company to drive the losses.

Those losses were felt in both Standard Pacific's stock and its convertibles.

The company's 6% convertible subordinated notes due Oct. 1, 2012 closed Friday at 57.9687 versus a closing stock price of $3.15. They closed Thursday at 62.5312 versus $3.67.

Standard Pacific stock (NYSE: SPF) lost 52 cents, or 14.17%, on the day.

Abu Dhabi buy doesn't help AMD

The investment arm of the government of Abu Dhabi, the Mubadala Development Co., bought an 8.1% stake in Advanced Micro Devices Friday. That represents a $622 million investment in the world's second-largest microprocessor maker, which is based in Sunnyvale, Calif.

That cash infusion didn't help much, as AMD's stocks and convertibles were down a touch on the day.

AMD's 5.75% convertible senior notes due Aug. 15, 2012 closed Friday at 99.539 versus a closing stock price of $12.64. They closed Thursday at 99.709 versus $12.70.

AMD's 6% convertible senior notes due May 1, 2015 closed Friday at 86.7261 versus $12.64. They finished trading Thursday at 86.9016 versus $12.70.

AMD stock (NYSE: AMD) slipped 6 cents, or 0.47%, on the day.

Intel up

While rival AMD moved down on the day, the biggest player in semiconductors, Intel, moved in the same direction.

Santa Clara, Calif.-based Intel's 2.95% junior subordinated convertible notes due Dec. 15, 2035 closed Friday at 104.951 versus a closing stock price of $25.51. They closed Thursday at 105.414 versus $25.53.

Intel stock (Nasdaq: INTC) slipped 2 cents, or 0.08%, on the day.

EMC ends the week mixed

Hopkinton, Mass.-based computer storage maker EMC saw its convertibles end Friday down while its stock ended the day up.

EMC's 1.75% convertible senior notes due Dec. 1, 2011 closed Friday at 139.106 versus a closing stock price of $19.64. They closed Thursday at 139.56 versus $19.32.

EMC's 1.75% convertible senior notes due Dec. 1, 2013 closed Friday at 141.354 versus $19.64. They closed Thursday at 142.609 versus $19.32.

EMC stock (NYSE: EMC) added 32 cents, or 1.66%, in trading Friday.

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