Convertibles quiet after holiday; SanDisk a little better again; Priceline, Tesla improve

By Rebecca Melvin

New York, April 6 – U.S. convertibles were quiet on Monday following a long holiday weekend and as European markets remained shut for Easter Monday, market sources said.

“It’s very quiet; there is no activity,” a Connecticut-based trader said.

In the broader markets, stocks surged after a sharply lower open and bonds sold off on the heels of Friday’s disappointing March jobs report.

The Dow Jones industrial average gained 117.61 points, or 0.7%, to 17,880.85, the S&P 500 gained 13.66 points, or 0.7%, to 2,080.62, and the Nasdaq composite stock index rose 30.38 points, or 0.6%, to 4,917.32.

SanDisk Corp.’s sister convertibles traded some on Monday, resuming their climb higher in action that is related to a takeout rumor that surfaced last week, a trader said.

Priceline Group Inc.’s convertibles also showed up in trading action after Argus initiated coverage on shares of the Norwalk, Conn.-based internet travel services company with a “buy” raging and set a price target of $1,480.00, which represents a 25% premium to the current price.

Priceline’s 1% convertibles due 2018 traded at 135.129, which was up 0.8 point, according to Trace data.

Priceline shares traded up $24.57, or 2%, to $1,185.01.

Meanwhile, Tesla Motors Inc.’s shares surged after the electric car maker reported that it sold a record number of Model S sedans in the first three months of the year, or 10,300 cars, which was up 55% from a year earlier.

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