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To: Bill Harmond who wrote (10757)	3/6/2002 4:37:20 PM
From: stockman_scott	Respond to of 57684

Riverstone shares extend rally, up 22 percent (UPDATE: Updates with closing price, analyst comments) By Jim Christie Wednesday March 6, 4:32 pm Eastern Time SAN FRANCISCO, March 6 (Reuters) - Shares in Riverstone Networks Inc. (NasdaqNM:RSTN - news) rose strongly for the third straight day on Wednesday as investors bet that the network gear maker will recover more quickly than its peers in the battered sector, analysts said. Riverstone shares closed at $6.12, up $1.12, or 22.4 percent, joining the best percentage gainers on the Nasdaq stock market. The shares rose nearly eight percent on Tuesday and more than 13.4 percent on Monday after losing half their value last Thursday. ``It was just oversold for the most part,'' said Erik Suppiger of Pacific Growth Equities. Investors last week dumped Riverstone shares after the company warned it would miss fourth-quarter earnings estimates as the slump in the telecommunications market deepened. Investors punished Riverstone because it had been seen as a safer play among network gear makers, whose sales have plunged amid the brutal downturn in telecommunications. Riverstone's gear is used in urban networks, markets where carriers are expected to boost capital spending to tap pent-up demand from businesses and consumers eager to get online. By contrast, the long-haul, long-distance segment of the network market offers little hope for immediate growth to gear suppliers because of an equipment inventory glut. LOOKING TO METRO MARKETS Investors have been rethinking last week's sell-off in Riverstone shares, according to analysts. ``We kept a 'buy' rating (on the stock) because it's a good fundamental play for intermediate- to long-term investors because the metro market is a strategic focus for major carriers,'' Suppiger said. But the shares remain below their $7.59 close of a week ago. In a research note on Tuesday, Salomon Smith Barney analysts wrote that they had met with Riverstone President and Chief Executive Romulus Pereira and concluded that the company's metro-market focus positions it to be among the first networkers to recover. ``Riverstone's near-term problems are related to weak end markets, not to issues with the company's products, competitive position or future opportunities -- simply weak end markets,'' the analysts wrote. ``We think they are building a head of steam with key accounts,'' the analysts added. They said broadband service providers ``are likely to continue to gravitate to Riverstone. ... In our opinion, the only question is one of timing.'' Riverstone shares also were boosted on Wednesday by an upbeat report on manufactured goods new orders, said an analyst who asked not to be named. New orders for computers and electronic products, which include communications equipment, rose 1.9 percent in January from December, according to the Department of Commerce. The gain was driven by a 14.2 percent rise in new orders of semiconductors, but was helped by a 7.7 percent rise in new orders of nondefense communications gear. ``It's a positive data point in a market that has been sliding,'' the analyst said.

To: Bill Harmond who wrote (10757)	3/7/2002 12:55:41 PM
From: Bill Harmond	Respond to of 57684

UTStarcom: China decision should be a non-event (UTSI) 23.08: Merrill Lynch says that China's decision to halt further applications to offer UTSI's Personal Access System mobile service in cities and provinces other than where it already operates is a non-event; firm says that there are no applications for PAS deployment that are awaiting approval from the central govt, and that the PAS network is already represented in all of the provinces in China. Reiterates Buy rating and target price of $27.