SunEdison free fall continues; slide in oil prices weighs on energy names; Accuray surges

By Rebecca Melvin

New York, Aug. 21 – U.S. convertibles remained heavy on Friday with some of the names that have seen the greatest magnitude of losses in recent sessions continuing to move lower as shares plunged in a worsening rout.

Heaviness continued in convertibles “as global risk-off sentiment pervades,” a New York-based trader said.

In addition, oil prices continued to tumble, amounting to a “double bogey” for the session, a New York-based trader said, referring to a score of two over par on an individual hole of a golf course.

The slide was on thin trading volume however as market players eye the upcoming Labor Day holiday as a signal for normal trading action to resume following the summer slowdown, a trader said.

The convertibles in the SunEdison Inc. complex moved lower again. The SunEdison 2.625% convertible was quoted at 64 bid, 64.5 offered intraday when shares were around $11.00. But the shares actually closed lower at $10.72, or down 11%, which was on top of a loss of 17% over Wednesday and Thursday.

Oil prices fell on Friday, and selling reignited among some energy sector equities.

The price of West Texas intermediate crude oil for October delivery was down $1.08, or 2.6%, to $40.24 per barrel.

Meanwhile, Accuray Inc. saw a 13% surge in its common stock after reporting a jump in its 21st Century oncology orders, and its 3.5% convertibles were indicated higher to 133 from 122 previously.

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