To: BirdDog who wrote (46077 ) 1/9/2002 2:25:13 PM From: stockman_scott Respond to of 65232 Networking Stocks Up on Cisco Comments Wednesday January 9 1:42 PM ET CHICAGO (Reuters) - The networking stocks rose on Wednesday thanks to positive comments made by the ``industry's own Alan Greenspan (news - web sites),'' Cisco Systems Inc.'s (Nasdaq:CSCO - news) Chief Executive John Chambers. Chambers, speaking at two technology conferences in Arizona on Tuesday, said the networking giant's December orders met expectations and that customer budgets, while conservative, had the flexibility to go up. The good news seemed to outweigh Cisco's view that it was hard to make any forecasts beyond a few months and the fact U.S. markets are still struggling. Cisco's shares were up 75 cents, or 3.58 percent, at $21.70 in afternoon trading on the Nasdaq. Since the beginning of last year, the stock has outperformed its peers in the American Stock Exchange Networking Index (^NWX - news) by about 17 percent. ``John Chambers, who is our industry's own Alan Greenspan, ... had good-news-bad-news, but it was more positive than negative is the read investors have taken,'' said Gerard Klauer Mattison & Co. analyst Michael Cristinziano. The networking index was up almost 2 percent and individual stocks that gained included Juniper Networks Inc. (Nasdaq:JNPR - news), Redback Networks Inc. (Nasdaq:RBAK - news), Sonus Networks Inc. (Nasdaq:SONS - news), Riverstone Networks Inc. (Nasdaq:RSTN - news), Enterasys Networks Inc. (NYSE:ETS - news) and Extreme Networks Inc. (Nasdaq:EXTR - news) The fact that December orders at Cisco, the largest maker of gear that powers the Internet, met expectations was a far cry from December 2000 when they ``fell off a cliff,'' said C.E. Unterberg, Towbin analyst Martin Pyykkonen. He said the results gave investors heart that demand may be rebounding. But he warned that San Jose, California-based Cisco is benefiting from its own efforts and investors cannot necessarily extrapolate that other industry players will see similar gains. Lehman Brothers analyst Tim Luke said recent comments from Extreme, Riverstone and Enterasys suggest better outlooks. Also, on Tuesday, Tellium Inc. (Nasdaq:TELM - news) Chairman and CEO Harry Carr reiterated the Oceanport, New Jersey company's fourth-quarter and 2002 revenue forecasts. ``Most of the market is beginning to believe that Cisco's numbers are achievable for the year and might even be beatable, actually,'' said David Brady, portfolio manager of the Liberty- Stein Roe Young Investor Fund. ``If the environment were to accelerate, there would be some spillover effect and some of the secondary and tertiary players would be benefit as well,'' he added.