WE WANT TO TALK

Just after the UN voted to approve the third round of sanctions against Iran, Iranian officials and EU officials have each said they would like to talk. The trial balloon that has once again been floated is to allow a consortium of countries, including Iran, to enrich uranium on Iranian soil under UN supervision. The UN would have the right of inspection of any facility on short notice.

There is light at the end of the tunnel. This has been a very long tunnel, so far. The US continues to accuse Iran of training and supplying terrorist, so it is not like the two sides are all set to make nice. Still the willingness to talk is important and the talks imply that the door to a deal has the potential to be opened.

FIRST IN -- FIRST OUT

One of the accounting methods for inventory is first-in, first-out. I view the airline shares as being stock market inventory. More than a year ago, in January of 2007, the airline shares made a top. Continental traded at more than $52 per share. On January 8 of 2008, these same shares put in a bottom at $17.84 per share.

The most recent financial reports show that CAL is experiencing traffic growth and most important yield growth. I have a meeting to attend so I must cut this short. Let me simply state that whenever any company in any industry is increasing its unit volume while increasing its price per unit the company is enjoying the ingredients of profit growth. While it is true that fuel cost have continued to increase, it is also true that fuel price surcharges have been added, regardless of whether there is a recession or not. Again, the combination of rising unit volume with rising price per unit is a healthy business environment. CAL shares were among the first to dive but they will also be among the first to soar!

Former chairman, Bethune says that DAL should declare victory and announce the merger of DAL-NWA. The pilots can negotiate whatever deal they can, after the merger has been announced. The offer on the table, which included $50,000 to $100,000 equity to each pilot and pay increases of 25% to NWA pilots is going to be difficult for the pilots to top.