Brett Hodess Quotations

Flattening orders and improving leading edge capacity utilization ? the industry is clearly entering the trough.

Chip makers will get what they need, but the solar cell companies will not get what they need and companies will not meet the forecasts people have for them.

The direction and level of the book-to-bill have been well anticipated by the market in our opinion. Thus, we expect little impact on the stocks from this news. Once the order reductions begin, they have continued for an average of nine months in previous downturns, in a range from seven- to- 10-months from peak to trough orders.

This should preclude valuations from retesting previous troughs of this year, making the stocks very attractive following the pullback of the past week.

This strength could result in orders coming in as high as $1.4 billion, above our original $1.2 billion estimate for the quarter.

Business conditions remain weak with little visibility. An upturn is not viewed as likely before year-end.