STOCKS TO WATCH: Infonet Services, Rainbow Technologies and VA Linux

2 min read

Expect the following technology stocks to be among Wednesday's most actively traded issues: Infonet Services, Rainbow Technologies and VA Linux.

  • Infonet Services (NYSE: IN)

    Infonet Services will be worth watching after it said late Tuesday it plans to roll-out asynchronous transfer mode (ATM) capabilities for its fiber network clients in Latin America's Southern Cone countries by year-end.

    The ATM service will allow clients access to a wider range of data transmission services.

    The introduction of ATM in Latin America is part of an $850 million upgrade and expansion of Infonet's worldwide services.

    In Latin America, Infonet is also developing domestic networks with the construction of nodes in Rio de Janeiro in Brazil and Monterrey and Guadalajara in Mexico.

    Its shares closed up 1/4 to 14 1/2 Tuesday.

  • Rainbow Technologies (Nasdaq: RNBO)

    Rainbow Technologies said Tuesday it is comfortable with consensus analysts forecasts for its earnings for the remainder of the year.

    First Call Corp. consensus is expecting third-quarter earnings of 29 cents a share and forth-quarter earnings of 36 cents a share.

    The company's statement followed what it characterized as a recent decline in its stock price and a higher-than-usual trading volume. It said it knows of no reason for the activity.

    Its shares closed off 3/4 to 32 1/2.

  • VA Linux Systems (Nasdaq: LNUX)

    VA Linux will be active after ABN AMRO reiterated its "outperform" rating on the stock and bumped its 12-month price target to $70 a share from $50 a share after the bell Tuesday.

    VA Linux (Nasdaq: LNUX) shares closed off 57/64 to 54 7/64 ahead of the news.

    Analyst Keith Bachman said the company's entrance into the new network attached storage market should " drive not only top-line growth but also relatively high gross profit margins.''

    Last quarter, VA Linux topped analysts' estimates, losing $4 million, or 10 cents a share, on sales of $50.7 million.

    First Call Corp. consensus expects it to lose 9 cents a share in its first quarter and 26 cents a share in the fiscal year.