Salomon adds Triquint, Ivax as Clear Channel, NDCHealth disappear

By Ronda Fears

Nashville, Dec. 5 - Salomon Smith Barney added Triquint Semiconductor's 4% convertible due 2007 and Ivax Corp.'s 5.5% convertible due 2007 to its recommended portfolio as replacements for one security that matured and another was redeemed.

Clear Channel Communications' 1.5% convertible due 2002 matured on Dec. 1 and NDCHealth called its 5% convertible due 2003 as part of its recapitalization plan.

With regard to Triquint's convert, Salomon convertible analysts said they like the company's generally positive operating cash flow and relatively good balance sheet with more cash than debt.

"Occasional bond repurchases are also a positive," said analysts Adrian Miller and Stuart Novick in a report Thursday.

"That said, we find the issue's 11%-ish yield to maturity attractive."

With regard to the Ivax 5.5% convert, the analysts said they are upbeat on the prospects for generic drug companies overall and noted this issue pays a nice-sized coupon that would help offset income lost from the two issues that left the recommended portfolio.

The Ivax convert presently trades with "a hearty 8.5% yield to maturity and a not too out-of-this-world 104% conversion premium," the analysts said.

In November, the Salomon Smith Barney convertible recommended portfolio posted a return of 7.28%.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.