Community Health ‘lackluster;’ retailers mixed after J.C. Penney announces store closings

By Colin Hanner

Chicago, Feb. 24 – As the week came to a close in the distressed market on Friday, only a few issues traded with any notable heft behind them, a trader said, and issues that traded during the week continued to top the most active list.

It was Franklin, Tenn.-based hospital operator Community Health Systems, Inc. that was “lackluster, and a tad firmer” on the session, a trader said. Though it saw “a bunch of trades,” the trader said it was likely that they were mostly “all scraps.”

Its most notable issue traded up marginally on the day, a trader said, though another said they were sideways on the day.

Traditional retailers took J.C. Penney Co, Inc.’s fourth quarter results in stride, at least in the distressed space, after the company announced that it would close “approximately 130-140 stores over the next few months,” according to a news release.

Neiman Marcus Group, Inc.’s two issues both posted hefty gains, a movement atypical when a fellow retailer has posted poor results in recent months.

Adding that Avaya, Inc., Intelsat SA and Valeant Pharmaceuticals International, Inc. were among the most notable, a trader said that from there on out, “We’re already down to the short strokes on trades.”

Hydrocarbon producer Calumet Specialty Product Partners, LP was up on the session, iHeartCommunications, Inc. was down slightly on the day and a handful of other one-offs were mixed on an otherwise inactive session.

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