Tech, telecom, and cable names all took a beating last week, or as one trader put it: "If it beeped or flashed, it crashed." Energy, chemicals, and gaming were all relatively quiet. Airlines were slightly weaker due to the "dirty bomb" scare. Here is some other action.
Lucent Drags Down Tech
Lucent Technologies' 7.25% notes of '06 (B2/B+) were bid four points lower to 78.5 after the telecommunications equipment giant issued a revenue warning on Thursday. A number of other technology names fell in sympathy. Fairchild Semiconductor's 10.75% notes of '09 (Caa1/CCC+) dropped two points to 107. Amkor 9.25% notes of '05 (B1/B+) dropped from 94.5 to 88.
Magellan Continues To Drift Lower In
Wake Of 1Q Miss
Psychiatric care provider Magellan Health Services saw its bonds continue to slip last week, as they have done ever since the company announced disappointing number in mid-May. Its 9% notes of '08 (Caa1/B-) were 5 points lower through Thursday to a 69 bid.
Susannah Gray, healthcare analyst at Merrill Lynch, says the credit runs up periodically and then gets knocked down again. She advises investors to wait another quarter or so before investing until Magellan shows some stability in its operations.
Telewest Stumbles, Claws Back On Tender Offer
Telewest Communications saw its 9.25% of '09 (Caa3/CCC-) drop 5 points to 42, but the bonds came back after Liberty Media announced it would launch a tender offer for the British cable company's bonds. Late Thursday, the bonds were bid at 44.