Paul: Re: "Charles Boucher, semiconductor industry analyst at Donaldson, Lufkin & Jenrette, told CBS.MarketWatch.com that companies such as KLA-Tencor, Novellus and Applied Materials would have been affected by the report, because the book-to-bill ratio "was off a little bit from last month's report. Those stocks may be selling off."
Anything you say, Chuckie. But you may want to focus on the bookings momentum. Gee, that 1.33 BTB was the highest BTB in years and reflected companies BUILDING their backlogs after having them depleted in the worst downturn EVER. BUT now you are concerned about companies shipping and booking revenues at a faster clip (wow -- .05 increase from 1.33 to 1.28) as Bob Pisani indicated on CNBC today? Well, maybe the companies are just a little bit more confident about the future and are willing to book that revenue from their backlogs because the see MORE orders coming in as Morgan said. Hello! That's what sequential revenue growth can do to a company. But, then again, if the BTB was up, Chuckie and others would be worried about that as well. Yeah, they would be worried about earnings then. Sorry folks, this price action has to do with the options man who is leaving town tomorrow. |
