CLEARER SKIES

Wow! $8.38

David Strine, airline analyst with Bear Stearns, projects that AMR and CAL will earn money in 2006 even with the oil price at $60. He writes that if oil prices were to average $40 per barrel in 2006, then AMRcould earn $8.38 per share and CAL could earn $5.80 per share.

Wow!

I project oil prices to dance around $55 for several months next year. I believe they will end lower by year end but an average of $40 would be a major stretch. Never-the-less, with the trucks loaded up with CAL and AMR it is fun to dream.

AMR is a huge company by revenues. It is a relatively small company by market capitalization. The AMRmarket cap this morning was $2,180 billon. MSFT only 139 times the market cap and LUV is only 6 times.

It is easy to imagine AMR as a $100 stock in a few years. Wow! $8.38!