7 May 2005 

Looking Up

Many investors are looking up as the the market reaches its first or perhaps
'last' upper saturation level. On Friday Honeywell appreciated in valuation
by 4-5 percent -the best rise in 16 months -in a Œplannedı, not actualı
takeover bid. Earlier in the week GM who has newly acquired concrete junk
shoes by the S&P bond raters and is currently swimming in the South China
Sea with Japanese models and the-soon-to-the-market ultra low cost Chinese
models, received a similar Œplannedı acquisition bid with a spike valuation
of 15-20 percent. Where would the DJIA have ended this week without the
rumors propelling these two DJIA stocks?

Even with all the rumor hoopla the DJIA ended near the low for the day on
Friday. At major 140 year transition points expect even a good percentage of
those generally bearish on markets to be looking up for a short term gain -
as the trapdoor swings open.

G. Lammert