Net One Rises on Report It'll Sell Faster Wireless LAN Systems
Tokyo, Dec. 7 (Bloomberg) -- Net One Systems Co., a supplier of computer networking equipment, rose as much as 7.3 percent on a report it plans to sell a new wireless communication technology offering transmission speeds ten times faster than those in conventional wireless networks.
Shares in Tokyo-based Net One jumped as much as 160,000 yen to 2.35 million yen in the morning session. Trading volume was 643 shares, on course to surpass the daily average the past three months. With today's gains Net One has rocketed more than fourfold this year on expectations the spread of the Internet in Japan will fuel strong earnings growth.
The supplier of Internet switching equipment as soon as next month will start selling wireless local area network systems offering transmission speeds of 100-megabits-per-second, 10 times faster than existing networks, the Nihon Keizai newspaper reported, without citing sources.
''This is positive news,'' said Hidenori Karaki, manager at Tokyo-Mitsubishi Personal Securities Co.'s equity department. ''There's a huge appetite for internet-related stocks right now, so any good news will push prices higher.''
A decision yesterday by Net One's two largest shareholders to sell part of their holdings in the stock, a move likely to improve liquidity in Net One, also lifted the stock.
Kawasaki Steel Corp. and Mitsubishi Corp. said yesterday they will sell a total of 23,600 shares in Net One later this month at 2.1243 million yen a share.
Japan's third-largest steelmaker said it will sell all of its 13,502 shares in Net One Systems Co. for 26.6 billion yen, while Japan's second-largest trading company will sell about a third of its 33.1 percent stake for 19.9 billion yen.
Mitsubishi's share in Net One will fall to 20.4 percent as a result of the transaction |
