Wednesday, November 22, 2006


Now that Quantas, the big Australian Airline, is in play as a take over target, congratulations seem to be in order. Many of you have purchased CAL at prices ranging from $7 per share to $37 per share. You have made as much as 6 times your money. Those how purchased in margin accounts and leverage up along the way have made as much as 40 times your money; from $10,000 to $400,000 in only 4 years is not bad.

Now that Jim Cramer and many others have capitulated and are now recommending airlines, it is a difficult time for us of contrarian mind set. It is our natural response to have thoughts that the big run must be almost over. The risk that CAL will get caught in a bidding war becomes more frightening.

The big move is for more