Damovo's 10 1/4% fixed-rate notes popped four points to 60. The bonds have made a strong comeback after falling to 46 a month ago (CIN, 8/18). A trader said investors are taking a strong interest in the distressed company, although he was mystified as to why they would, given the company's financial troubles.
Damovo's bonds first plunged in July after the IT services provider posted a second quarter net loss, which was mainly driven by a fall in sales at its Italian operations. The UK-based company posted a E24.4 million net loss and negative EBITDA of E1.8 million, compared with a E30.2 million net loss and negative EBITDA of E4.5 million in the same quarter of 2005 (CIN, 7/06). A call to Bob Contreras, cfo, was not returned.