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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Math Junkie who wrote (7438)	12/18/1998 5:40:00 PM
From: Rob-Chemist	Read Replies (1) \| Respond to of 10921

Re: <<If the BtB is below 1, the industry is shrinking.>> I think that everyone is correct. As a couple people have noted, you can have increased bookings and sales with the book-to-bill remaining below one if you consume backlog. However, after a short period your backlog will be reduced to 0. Once this occurs, book to bill has to be >1 if you want the industry to continue. In many regards, this situation seems analogous to a company that is increasing sales but is losing money on each sale. At some point, it either starts making money or it goes bankrupt (unless, of course, it's name ends .com).