Book-to-Bill for Aug 07
September 21st, 2007 NW Teong
Yes, some tech investors get a little upset on the latest North America Semiconductor Book-to-bill ratio of 0.83 times for Aug 07. This reading is the same as July’s reading. Yes, this ratio is still less than one which means that the amount of orders received is still lag behind the amount of shipment. In short, there is no concrete evidence of a recovery, not yet. At most, we can say that it is trying to find a bottom.
I am cautiously optimistic at this moment as I feel that this ratio is at least not worst off as compared to July’s reading. There is a good chance for this ratio to improve in the next couple of months in view of a cyclically a stronger quarter in the final quarter. This is in addition to the positive impact due to a recent higher cut in interest rates. Instead of a spike up, I think the recovery would be more gradual looking forward. Hence, we should not be too disappointed with the latest data. In short, there is no change in my bullish short term view on tech stocks. Cheers!
Master “The Essence of Stock Investment” and ride towards the journey of your financial freedom! Be the “Master of Your Own Destiny”!
Disclaimer: Investors are investing at your own risk. Please read full disclaimer at the end of the blog or from the main page of the website.
Leave a Comment
Some HTML allowed:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>
Trackback this post | Subscribe to the comments via RSS Feed