Morning Commentary: Tesla convertibles add on swap after mixed earnings; Ctrip trading on earnings

By Rebecca Melvin

New York, Feb. 23 – Tesla Inc.’s convertibles were in focus early Thursday, with the Tesla A tranche trading actively and better on a swap basis after the Palo Alto, Calif.-based electric car maker reported mixed earnings, including a disappointing loss but better-than-expected revenue.

The Tesla 0.25% convertibles due 2019, or A tranche, were lower on an outright basis at 98.625, which was down from about par previously. But on a dollar-neutral, or swap, basis, they were up about 0.25 point, a New York-based trader said.

The Tesla 1.25% convertible due 2021, or the B tranche, was also seen up about 0.25 point on swap, but the issue was not trading that much.

Tesla shares were down $16.32, or 6%, at $257.19.

The company lost 69 cents per share for the fourth quarter excluding items, which was a wider loss than the 43 cents per share loss anticipated by analysts’ consensus forecast. Revenue was $2.28 billion compared to $2.19 billion expected.

Ctrip.com International Ltd.’s 1.25% convertible due 2018 traded last at 131 but had traded as high as 132 early Thursday, which was up from about 128 previously.

The uptick was against gains in the underlying shares of Ctrip, which were up 3.5% after the China travel company reported earnings.

© 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.