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Show The Bait Lake Tribune UTAH BRIEFS O46 EARNINGS REPORTS o6 BUSINESS GLANCE TRADEWINDS oe On Indicators NASDAQ CLOSE: 1,229.05 S&P 500 Sell-off continues; Tech stocks suffered even sharper lisappointing earnings reports. investor sentiment finan: ‘as bad asit gets’ bankers’ possible role CLOSE: 797.70 Utah's Ui$ Top|Performers The Bioomberg Utah index stocks wer hard by questions abc BY LISA SINGHANIA e ano es sionTuesday, with the DowJonesin dustrials bouncing between gains and losses before surrendering in late afternoon and closing with their fourth straightloss. measures the stock 1 performance of the v at 7,702.34, for a four-session loss of 840,14 And The Nasdaq a composite populated ech Dow components man- quarter, to cut aged to hold onto gains for much ofthe session. But analysts said that after weeksof by acs, 500 index, one of th but one tech repr advances. Financial tinually eroding becauseof corporate ethics scandals, most investors are percent compare unwilling to make many bets. The Dow endedthe session down percent and the Si percent See STOCKS. Page D-11 Conference Will Address Heritage as a Tourist Draw Qwest Communications Interna tional wonthe backingof the U.S. BY MIKE GORRELL distance telephoneservice in Colorado, Idaho, lowa, Nebraska and = * § v ®* > Ifthe San Rafael Swell becomes a national monument, what can EmeryCountydoto makethe most ofit economically? tions Commission to examine vest’s pricing and computer sys- It can makesuretourists who come to see its scenic splendors tems in deciding whetherto let Qwestexpand in thefivestates. It is the company’s first attemptto re enter the long-distancebusiness in the 14 states whereit bought the also get a feel for Utah regulatorsearlierthis monthsaid Qwest passedtests show- ingits lines are open to competitors and now mayproceed with plans to offer long distance in Utah. Those plans also await FCC approval. Headwaters to Sell Stock Headwaters Inc.filedtosell muchas $250 million worthofsecuri. ties to fund acquisitions and general corporate expenditures, Bloomberg Newsreported Tuesday. The Draper-baseddeveloper ofalternative energy technologies would havetheflexibility to sell debt securities and preferred and common stock undera registration statement filed with the Securities and Exchange Commission. The generai corporateuses for the proceeds may include working capi. tal, debt repayment, capital expendi tures and research and development for new technologies. Headwaters filedtosell the stock and bonds under a rule that permits the company toregister the securi ties in advance andthensell them whenfinancing needsarise. The termsof the securities are available at thetimeofsale. The company’s sharesfell 67 vents Tuesdaytocloseat $13.49 each. Lante Sued Over Buyout Lante Corp., an Internet consult ant, was sued by a stockholder who contendsthatits shares wouldbe un dervalued in a $41.1 million cash buyoutoffer from SBI & Co., Bloomberg News reported Tu Salt Lake City-based profe: ancient in habitants and howthey derived their livings or for the dino- saurs and other creatures that roamed that terrain tens of mil lions of years before humans evolved Denver-based Qwest and the other regional phone companies are barred fromselling long-distance service wherethey dominate local calling until they prove thatrivals mayleaseaccessto their networks a discountedrates. The processis designedto openlocal phone markets to competition. ‘ THE SALT LAKE TRIBUNE North Dakota, Bloomberg Newsreported Tuesday. Ina statement, the Justice Department urged the Federal Communica. local-phone operations of US West Ine.in 2000. ™ ™ stocks slid for a second mittee investigating the Enron col lapse heard testimony from JP. In percentage terms, the Na had the worst p Justice Department to sell long se gets.” straight session as a Senate subcom much buying. With confidence con Justice Backs Qwest Bid ToSell Long-Distance : si a bottom chief in deed, it was no surprise that the BOOMER BOUTIQUE publiclyhet companies. a mn Hancock s still bad, market had difficulty holding onto gains. With investors highly mis trustful after morethan nine weeks of losses. stocks have quickly relit the smallest of quished even ion, fel t was the s first ¢ lose below 800 since April selling, thereare few incentives to do searching for said vestme! f Funds. “But about as be 7,000 jobs D-6 broadest market mea sures, e here,” index jropped 53.60 to 1,229.05. LOSS ATLMEEMT tr as Facileaban Some stocksincluding Company $7.98in the Wall Street stag: CLOSE: 164.67 JULY 24, 2002 PAGE D6 losses after AT&T and Lucent issued THEASSOCIATED PRESS CLOSE: 430.28 WEDNESDAY its true financial condition. Stock MarketStill Bleeding YESTERDAY'S NYSE BUSIN PAGE D-5 nes A Senate investigator major investment banks loaned nronmillions to help it disguise A two-day conference to help Emery County officials cash in on their prospects for “heritagetour. ism” will be held Thursday and Friday in CastleDale. A half-dozen officials from the Utah Travel Council, Division of State History and the Utah Arts Council will outline that should be done to nt Ridder filephoto Mary Wilson shopsata Pier 1 store last month in Fort Worth, Texas.Pier1 is celebratingits 40th birthday this year. Chairman Marvin Girouardcredits its success to keeping pace with baby boomers’changingtastes. tial to appeal to visitors from far and wide. Pier | Growing Up 40-year-old company thrives on ability to change with the times BY LILA LAHOOD parents in the ‘90s. threey kindoflikebothof us were growing up.” orget the midlife cr Pier , Bano turns 40 this year. ndwhile m etallere s a ed in aroc!kyec n The company’s first stores sold aneclectic collectionof goods,from beads to beanbag chairs. Some showcased impractical “spice uch omy, the Fort Worth, Texas-based homefurnishings chainhas posted month after month ofstrong sales, watchedits stock price gain more than 25 percent and made plans for anew headquarters. Fromonestore in San Mateo, Ca lif., in 1962, Pier 1 has growninto a chain with more than 900stores including fourin the Salt Lake City area bypayingattentionto its customers andchanging with the times. Known for its hippie chic in the 1960s and '70s, Pier 1 adjustedits full suit of body ar moranda regimental rice cooker. At one point, Pier 1 even sold tropical fish Today, Pier 1 still imports mer chandise fromvendors in more than 50countries but focuses on home fur nishingsanddecorativeaccessories ‘This year, sales are being boosted by consumers who are travelingless andinstead spending money to improve their residences, A reconfigured pricing strategy and anadvertising campaign fea. turing actress Kirstie Alley are merchandise as its shoppers became yuppiesin the'80s and middle-aged credited with helping the company reboundfrom a sales slumpin 1999, sight on getting a successful project up and running. “Pier | had been drifting up too high end,” Girouard said, noting says muchofPier 1's longevity can be attributedto itsability to stay in tunewith baby boomers “Our customers wentfrom Volks combining folk arts and agri-tourism in rural North Carolina, will share her in howprices briefly movedoutof wagens to Volvos,” he said. “It was KNIGHTRIDDERNE) Then, Becky Anderson, who helped organize the “Handmade in America” program ChairmanMarvin Girouard, who has workedforPier 1 since197: “What is appealing about heri tage tourismis that you ‘don't to build infrastri r conference coordinator Mar; line with customer expectations igo. “There was ic things assemble a themed program with the poten: a place for us right in the middle. Godfrey Pier1’s merchandisingstrategy is payingoff, says Kurt Barnard, president of ard’s Retail ‘TrendReport, a retail consulting from the Utah Travel Council “You just have to preserve what you have, interpret it and makeit attractive to tourists.” firm in Upper Montelair, N.J. “It is taking advantage of a very Done right, heritage-cultural tourism canbringin big bucks. The Travel Industry of Amer: calculated that in 2001, historical or cultural activities accounted for 21 percent of business and plea favorable climate,” Barnard said “Decorative items at reasonable, affordable prices are very much in demandright now.” Alex Rotonen, an analyst with SWS Securities in Dallas, said Pier sure trips that overall generated $584 billion for the U.S. economy What's more, the nonprofit or 1 seems to be offering consumers what they want ganization has found consistently “Theyhave a very good selec: tion of merchandise, and their that people most interested in his. tory and culture stay longer and pricing strategy is very effective,” spend more money thanthe aver. he said. “The key is that they’re getting the traffic, I think theirad vertising campaign withKirstie Alley has been hugelysuccessful.” Same-store sales in May reflecting businessat stores open at least a year were up9 percent makingPier 1 one ofthe fewretai agetourist “This group of travelers spend, onav », $631 per trip compared with $457 forall U.S. travelers, ex cluding transportation to the des: tination,” reported ‘Travel See CONFERENCE, Page D-6 ers to report significant gains. Caldera Buys Back $4 Million Worth of Common Shares services provider SBI said Fridayit would pay $1.10 per share, or about $41.1 million in cash, for Lante’s stock, which tradedat 55 cents per share Thursday. In a lawsuitfiled the sameday in Delaware Chaneery C‘ourt, L BY STEVEN OBERBECK In a move it hopes eventuallywill help boost its stock price, Caldera International Inc. said Tues day it completed a $4 million buybackof its com mon shares. The Lindon-based company, company directors didn't try to get thebest price, SRZ asked a judgeto stop the transaction and award dam. ages andlegal fees. Lante is awareof the lawsuit and is evaluating the matter,” said David Deal, a company spokesman. Market capitalization is calculated by multiply ing the numberof shares a company has outstand. THE SALT LAKETRIBUNE a developer of business software for Linux. and Unix-based com puters, paid 94 cents each for morethan nillion ares held by Tarantella Inc. and MT! ‘Technology Corp. “We had a couple of our largest shareholder who needed cash andevery time ourstock would start to move up they wouldsell another block of shares and the price would drop again,” said Bob Bench, Caldera’schief financial officer. ‘The acquisition represented roughly one-third CORRECTIONS & CLARIFICATIONS of Caldera’s stock and reduces the number of out standingshares to 9.4 million. “It puts our existir Mona Burton is the attorney rep resenting Omniserve Cellular Inc. in its Chapter 11 reorganization. Her 's manager's believe they got a bargain a company with $60 million in annual revenue andto have the market capitalization for name was incorrect in a story in Tuesday's Business section R COPY shareholders in a much more attractive positior since there will be fewer shares outstanding d the whole company equal to one-fifth of that doesn't muke a lot of sense,” he said ing by the current stock price Caldera went public in March 2000 but has yet to post its first profit The Utah company, however, is projecting that it will reach profitability in two more qu Caldera is one of many technology companies that recently have completed or announced plans to buy back their own shares, said Karey Barker Caldera Shares Calderastock rose Tuesday alter the Lindon-based companysaidit bought back 31 percent ofits outstanding shares manager for Wasatch Global Science & Technol ogy Fund run by Wasatch Advisors of Salt Lake City ‘A lot of technology companies raised money through IPOs[initial went out and public offer ings] or secondary offerings in 1999 and 2000 when the getting was good,” Barker said And as those compani especially the ones with cash watch their stock price get cheaper und cheaper, their owr win to look like a good investment, she said For thosetechnology hat are profit able, a repurchase of share I prove their earnings per share be ny’snet income will be divided arr outstanding However 1 buyback is also a They're 1 aking the r Feb. M Apr. May joing to need that cash,” she For Caldera, the repurchase raise June July ae opens the way to additional capital at higher prices. It also wil! illow for the market to reach a share price that more closely reflects the value of the company Bench said Caldera shares closed up 20 cents, at $1 steveastirib.com |
