STOCK OF THE WEEK: HONDA:STRONG LINE UP

The Honda Motor Co
(HMC) manufactures automobiles, motorcycles, portable generators and lawn motors. They develop and manufacture a wide variety of products, ranging from small general-purpose engines to specialty sports cars that incorporate their internal combustion engine technology. The Group
also provides financing for their products.

Honda's International office is located in Tokyo and has approximately 319 subsidiaries throughout the world including North America, Pakistan, the Philippines, India, South America and Europe.

The Japanese always seem to work hard developing state of the art products. Case in point, Honda introduced the first mass-market gas-electric hybrid car with the introduction of the Civic Hybrid in 2001.

The 2005 Honda FCX, the world's most advanced production fuel cell vehicle, is once again breaking new ground. Now fitted with Honda's
all-new, originally developed fuel cell stack (Honda FC Stack) the FCX is capable of starting and operating at temperatures as low as -20 C (-4 F) with improved performance, range and reduced build complexity. This new version of the FCX has received significant engineering upgrades, such as the capability of the stack to operate at below freezing temperatures and remain operational at high temperatures up to 95 C (203 F).

Honda
is not the biggest or most prestigious automaker compared with industry giants like Toyota and GM but they are a diversified manufacturer with total consolidated sales of about $80 billion. The automotive division provides about 80% of sales, motorcycles accounting for another 10%, and power products and financial services making up the remaining 10%.

To make up for their size, Honda
has developed a highly regarded flexible manufacturing system and hyper efficient supply chain that help hold down costs. Also, by trying to locating their manufacturing facilities near customers, Honda
has lower logistics costs, reduced exposure to foreign-currency fluctuations, and engineers who better understand consumer needs.

Coming directly from their web site- Honda's
success in the global marketplace relies on its commitment to continued investment in America's future. That's been their philosophy since they first started U.S. operations in 1959. It's what they believe in. It's what the consumer expects, and it's why they will continue to grow in America.

On a personal note, I have owned the same Honda Accord for the last 20 years. When I met my husband Chuck, he also owned a Honda Accord. Once we had children, we test drove all the mini vans on the market. We chose the Odyssey over the Sienna. Chuck’s mother drives an Accord and his father just replaced his Cadillac with an Accord. We feel and still do that Honda
offers the consumer high-quality and very popular products. Everywhere I look I see the Honda Element. My 12 year old daughter already has her eye on an orange one. Their newest product, the “Ridgeline” truck might be in my future.

This morning, Monday October 24th (HMC) closed at $27.40, up $3.80 from their 52 week low of $23.55 on 10/25/04. They reached their 52 week high of $27.73 on 9/20/05. 2005 has shaped up to be tough for most of the auto industry. However, Honda
seems to have a strong lineup of smaller cars which in turn use less gas. Remember, their financial division that makes up about 3% of sales now. Is this a growth area? The other question is will Honda keep working harder than their competitors to create a better, more fuel efficient “mouse trap” than the other car manufacturers?

Current Value of the SOW Portfolio:

$106,008.56

Simple Return: 18.98%

~~>~>~~>~>~~>~>~~>~>~~

S & P 500 Value : $102,518.78
Simple Return: -.89%

~~>~>~~>~>~~>~>~~>~>~~

Treasury Bond Value : $98,700.51
Simple Return: -1.26%

~~>~>~~>~>~~>~>~~>~>~~

Individual Stocks continue to outperform equal investments in the S & P 500 (-.89%)and the TLT Treasury Bond index (-1.26%).
Be sure to check out other Stocks of the Week to see if it's a pick to include in your portfolio.

Past performance does not guarantee future performance. We make no recommendations!

Please call or write if you have questions about how to make money in stocks, bonds and real estate. You can reach me during office hours at 336-778-0543 or write me

WHY WE BOUGHT AMERICAN AIRLINES

Last week, we cut our losses and sold four stocks in our portfolio that were consistently not performing and reinvested the buy out in AMR. American Airlines is one of two experienced carriers who have managed to operate under less than optimum conditions to make a profit. On July 20, (AMR). reported quarterly profits for the first time in a great while. (AMR). has proved they are one of the strongest airlines and the most likely to be successful over the long haul.

Several things were responsible for the quarter's numbers. The airline industry is seeing improvements. (AMR). grew numbers while experiencing higher load factors and passenger growth. This agrees with the strengthening demand being seen in the airline industry.

Aditionally, this long time airline carrier continues to lower its operating costs. Not counting fuel, cost per available seat mile (CASM) at (AMR). decreased 5%, over the prior-year period. (AMR) and other airlines realize low costs are the key to success. While American Airlines may not be closing the gap quickly with airlines like Southwest, LUV), they are holding their position over their long time peers.

American Airlines has one of the most extensive domestic networks and attractive international route systems, making it a preferred choice for many business travelers. They are putting their planes where there is the least amount of low-cost competition: flights to Europe and Asia. These routes are longer than most domestic and Latin American routes, and therefore less like a commodity.

The company has seasoned leadership; President and CEO Gerard Arpey has worked for American since 1982 and Ed Brennan, Chairman has been an (AMR). director since 1987. Highly respected and financial experts in the business, (AMR). strategy is survival. Management has been renegotiating labor agreements, cutting discretionary spending, and improving the efficiency of many of its back-office functions to improve profitability. (AMR) continues to cut its ticket-distribution costs by sending customers to its Web site, where transaction costs are much lower than through a sales agent.

Optimism remains high about the pension bill that stands to ease the financial pinch facing U.S. airline carriers. According to the latest version of a pension reform bill in the U.S. Senate, both (AMR). and (CAL) will be given extra time to address the under funded status of their pension plans. The same privilege was granted last week to Northwest and Delta after the two carriers filed for bankruptcy protection. The pension bill, which still needs to be discussed in the full Senate and in the House of Representatives, would help reduce (AMR) immediate financial burden.

Airline stocks fell on Friday but closed out the week with a 6.4% gain as investors took heart in oil prices that saw futures close at levels not seen since July. American closed at $12.30 up 11.8% for the week of October 3rd.

Founded in 1982, (AMR) is the parent company of American Airlines and other aviation companies headquartered in Forth Worth, TX. (AMR)">American provides passenger and cargo transportation to 250 cities through it's major hubs in Dallas-Fort Worth, Chicago, LA, and NY-LaGuardia.

Today, all airlines operate in an extremely uncertain industry. With the unpredictability of fuel prices, labor woes and poor economic conditions lurking behind every cloud, We believe there a silver lining for the future of American Airlines.

STOCK OF THE WEEK: CONTINENTAL AIRLINES: POISED FOR ALTITUDE

Despite Hurricanes Katrina and Rita, Continental Airlines Inc. (CAL) recently reported a 9.8% increase in their September traffic and analysts expect Continental to earn 8 cents a share in the third quarter. This good news comes after a 2nd quarter profit July.

The airline said their strong performances in July and August helped offset some of the negative impacts from the Hurricanes as well as higher fuel prices. Continental Airlines Inc. estimates that the adverse impact in September on operating results from Hurricane Rita was about $25 million. After the Rita storm, the airlineInc.helped evacuate Houston residents by cutting fares and also waived change fees for travelers who changed their travel plans.

Continental Airlines Inc.operates the world's six-largest air carrier, transporting passengers, cargo, and mail with hubs in Newark, Houston, and Cleveland. Its ExpressJet affiliate also operates regional planes as Continental Express. Continental operates a fleet of more than 350 aircraft with about 42,000 employees.

Continental Airlines Inc. said it flew 6.2 billion consolidated revenue passenger miles, or RPMs, up from 5.6 billion a year earlier. A revenue passenger mile is one paying passenger flown one mile. Continental said September's consolidated load factor (percentage of seats filled) was 77%, 2.5 points above last year's load factor of 74.5%.

Focusing on domestic flights, the carrier reported a domestic mainline load factor of 79%, 4.7 points above a year earlier and international mainline load factor of 75.4%, 1 point below September 2004.

A bright star in the sky? The average cost per available seat mile of the other major airlines in 2004 was almost 9% higher than Continental's, while the average revenue per available seat mile was about 1% lower. Continental may be one of the strongest major airlines, and wild swings in share price can make for tempting speculative trades.

The firm has announced plans to purchase 10 Boeing 787 Dreamliners as part of its effort to modernize its fleet and cut costs with more-efficient and less maintenance-intensive planes. Continental seems to be avoiding the temptation to grow at all costs.

Thanks to relatively good relations with its employees, Continental has avoided disruptive labor disagreements and maintains labor expenses lower than the major airline average. However, a Defined-Benefit Pension Bill sits on the floor of the Senate. If it makes it through the healthy airlines could face an estimated $10.4 billion in minimum pension contribution requirements over the next four years, more than some may be able to afford and stay in business. However, Sen. John Cornyn, R-Texas, has placed a hold on the legislation that could prevent it from coming to the floor.

Continental Airlines Inc. opened on Monday October 3th at 9.70. Are the airlines seeing a strengthening demand for their industry? If they stay focused on improving customer service, seeking business travel, and cutting costs I believe Continental is a stock poised to catch some altitude?

BUY & SELL: FAITH IN THE AIRLINE INDUSTRY

Current Value of the SOW Portfolio:

$105,412.88

Simple Return: 23.87%

~~>~>~~>~>~~>~>~~>~>~~

S & P 500 Value : $99,476.22
Simple Return: .04%

~~>~>~~>~>~~>~>~~>~>~~

Treasury Bond Value : $94,918.88
Simple Return: -1.08%

~~>~>~~>~>~~>~>~~>~>~~

Our Stock of the Week addition refects our faith in the survival of the airline industry. We sold four of our lower performing stocks and reinvested those proceeds into AMR

This week we chose Continental (CAL) for the Stock of the Week. Current performance is listed above.

Individual Stocks continue to outperform equal investments in the S & P 500 (.04%)and the TLT Treasury Bond index (-1.08%).

Be sure to check out other Stocks of the Week to see if it's a pick to include in your portfolio.

Past performance does not guarantee future performance. We make no recommendations!

Please call or write if you have questions about how to make money in stocks, bonds and real estate. You can reach me during office hours at 336-778-0543 or write me

Television Article | Reuters.com

SELLING STOCKS: BUYING AMR

After reviewing the Stock of the Weekportfolio this week We have decided to sell a few of our stocks that seem to have fallen into Bearish hands. Dillard’s (DDS), Joann’s Fabric (JAS), Spartan Foods (SPTN) and Russell Athletic (RML).

With individual stocks outperforming the S& P 500 and the 10 year treasury bond, each company was evaluated to see why it has not stood firm with other market performances. One common thread reoccurs: these businesses are tied to the retail sector. Perhaps rising energy prices, increase costs to transport goods, two major hurricanes and even Mr. Greenspan’s attempts to slow the economy are possible reasons for stock declines. (DDS) lost six stores in the Southeast due to the hurricanes. Dillard’s (DDS), sells upscale clothing which is a sector usually hit hard when consumers have less discretionary money to spend.

(SPTN) has been struggling recently with a major stocker holder group demanding that management enhance shareholder value. In other words, they have some internal problems as well as rising costs to transport goods to stores.

Russell Athletic (RML). just lost the sale of Jerzees brand boys sweats at all of the Wal-Mart locations. This is 2-3% of their revenue. Russell Athletic (RML). has also been affected by the hurricanes through damage to merchandise and distribution routes as well as rising costs to transport goods.

Quarterly sales at Joann’s Fabric (JAS), have been disappointing and present Joann’s Fabric (JAS), with additional challenges in meeting their 2005 performance expectations. Even with their strongest sales months ahead (September –January), they have an uphill battle. Additionally, they recently lost two of their top executives.

Even with a few “out-of-favor” choices, our Stock of the Week portfoliois still rolling on the positive side.

Moneys returned from the sale of these four stocks have been reinvested in AMR. We firmly believe the airlines are going to survive and have great faith in this stock pick to add to our Stock of the Week Portfolio. Look for Continential to be added to the portfolio as our next Stock of the Weekpick.

STOCK OF THE WEEK: HONDA:STRONG LINE UP

The Honda Motor Co
(HMC) manufactures automobiles, motorcycles, portable generators and lawn motors. They develop and manufacture a wide variety of products, ranging from small general-purpose engines to specialty sports cars that incorporate their internal combustion engine technology. The Group
also provides financing for their products.

Honda's International office is located in Tokyo and has approximately 319 subsidiaries throughout the world including North America, Pakistan, the Philippines, India, South America and Europe.

The Japanese always seem to work hard developing state of the art products. Case in point, Honda introduced the first mass-market gas-electric hybrid car with the introduction of the Civic Hybrid in 2001.

The 2005 Honda FCX, the world's most advanced production fuel cell vehicle, is once again breaking new ground. Now fitted with Honda's
all-new, originally developed fuel cell stack (Honda FC Stack) the FCX is capable of starting and operating at temperatures as low as -20 C (-4 F) with improved performance, range and reduced build complexity. This new version of the FCX has received significant engineering upgrades, such as the capability of the stack to operate at below freezing temperatures and remain operational at high temperatures up to 95 C (203 F).

Honda
is not the biggest or most prestigious automaker compared with industry giants like Toyota and GM but they are a diversified manufacturer with total consolidated sales of about $80 billion. The automotive division provides about 80% of sales, motorcycles accounting for another 10%, and power products and financial services making up the remaining 10%.

To make up for their size, Honda
has developed a highly regarded flexible manufacturing system and hyper efficient supply chain that help hold down costs. Also, by trying to locating their manufacturing facilities near customers, Honda
has lower logistics costs, reduced exposure to foreign-currency fluctuations, and engineers who better understand consumer needs.

Coming directly from their web site- Honda's
success in the global marketplace relies on its commitment to continued investment in America's future. That's been their philosophy since they first started U.S. operations in 1959. It's what they believe in. It's what the consumer expects, and it's why they will continue to grow in America.

On a personal note, I have owned the same Honda Accord for the last 20 years. When I met my husband Chuck, he also owned a Honda Accord. Once we had children, we test drove all the mini vans on the market. We chose the Odyssey over the Sienna. Chuck’s mother drives an Accord and his father just replaced his Cadillac with an Accord. We feel and still do that Honda
offers the consumer high-quality and very popular products. Everywhere I look I see the Honda Element. My 12 year old daughter already has her eye on an orange one. Their newest product, the “Ridgeline” truck might be in my future.

This morning, Monday October 24th (HMC) closed at $27.40, up $3.80 from their 52 week low of $23.55 on 10/25/04. They reached their 52 week high of $27.73 on 9/20/05. 2005 has shaped up to be tough for most of the auto industry. However, Honda
seems to have a strong lineup of smaller cars which in turn use less gas. Remember, their financial division that makes up about 3% of sales now. Is this a growth area? The other question is will Honda keep working harder than their competitors to create a better, more fuel efficient “mouse trap” than the other car manufacturers?

#

Current Value of the SOW Portfolio:

$106,008.56

Simple Return: 18.98%

~~>~>~~>~>~~>~>~~>~>~~

S & P 500 Value : $102,518.78
Simple Return: -.89%

~~>~>~~>~>~~>~>~~>~>~~

Treasury Bond Value : $98,700.51
Simple Return: -1.26%

~~>~>~~>~>~~>~>~~>~>~~

Individual Stocks continue to outperform equal investments in the S & P 500 (-.89%)and the TLT Treasury Bond index (-1.26%).
Be sure to check out other Stocks of the Week to see if it's a pick to include in your portfolio.

Past performance does not guarantee future performance. We make no recommendations!

Please call or write if you have questions about how to make money in stocks, bonds and real estate. You can reach me during office hours at 336-778-0543 or write me

#

WHY WE BOUGHT AMERICAN AIRLINES

Last week, we cut our losses and sold four stocks in our portfolio that were consistently not performing and reinvested the buy out in AMR. American Airlines is one of two experienced carriers who have managed to operate under less than optimum conditions to make a profit. On July 20, (AMR). reported quarterly profits for the first time in a great while. (AMR). has proved they are one of the strongest airlines and the most likely to be successful over the long haul.

Several things were responsible for the quarter's numbers. The airline industry is seeing improvements. (AMR). grew numbers while experiencing higher load factors and passenger growth. This agrees with the strengthening demand being seen in the airline industry.

Aditionally, this long time airline carrier continues to lower its operating costs. Not counting fuel, cost per available seat mile (CASM) at (AMR). decreased 5%, over the prior-year period. (AMR) and other airlines realize low costs are the key to success. While American Airlines may not be closing the gap quickly with airlines like Southwest, LUV), they are holding their position over their long time peers.

American Airlines has one of the most extensive domestic networks and attractive international route systems, making it a preferred choice for many business travelers. They are putting their planes where there is the least amount of low-cost competition: flights to Europe and Asia. These routes are longer than most domestic and Latin American routes, and therefore less like a commodity.

The company has seasoned leadership; President and CEO Gerard Arpey has worked for American since 1982 and Ed Brennan, Chairman has been an (AMR). director since 1987. Highly respected and financial experts in the business, (AMR). strategy is survival. Management has been renegotiating labor agreements, cutting discretionary spending, and improving the efficiency of many of its back-office functions to improve profitability. (AMR) continues to cut its ticket-distribution costs by sending customers to its Web site, where transaction costs are much lower than through a sales agent.

Optimism remains high about the pension bill that stands to ease the financial pinch facing U.S. airline carriers. According to the latest version of a pension reform bill in the U.S. Senate, both (AMR). and (CAL) will be given extra time to address the under funded status of their pension plans. The same privilege was granted last week to Northwest and Delta after the two carriers filed for bankruptcy protection. The pension bill, which still needs to be discussed in the full Senate and in the House of Representatives, would help reduce (AMR) immediate financial burden.

Airline stocks fell on Friday but closed out the week with a 6.4% gain as investors took heart in oil prices that saw futures close at levels not seen since July. American closed at $12.30 up 11.8% for the week of October 3rd.

Founded in 1982, (AMR) is the parent company of American Airlines and other aviation companies headquartered in Forth Worth, TX. (AMR)">American provides passenger and cargo transportation to 250 cities through it's major hubs in Dallas-Fort Worth, Chicago, LA, and NY-LaGuardia.

Today, all airlines operate in an extremely uncertain industry. With the unpredictability of fuel prices, labor woes and poor economic conditions lurking behind every cloud, We believe there a silver lining for the future of American Airlines.

#

STOCK OF THE WEEK: CONTINENTAL AIRLINES: POISED FOR ALTITUDE

Despite Hurricanes Katrina and Rita, Continental Airlines Inc. (CAL) recently reported a 9.8% increase in their September traffic and analysts expect Continental to earn 8 cents a share in the third quarter. This good news comes after a 2nd quarter profit July.

The airline said their strong performances in July and August helped offset some of the negative impacts from the Hurricanes as well as higher fuel prices. Continental Airlines Inc. estimates that the adverse impact in September on operating results from Hurricane Rita was about $25 million. After the Rita storm, the airlineInc.helped evacuate Houston residents by cutting fares and also waived change fees for travelers who changed their travel plans.

Continental Airlines Inc.operates the world's six-largest air carrier, transporting passengers, cargo, and mail with hubs in Newark, Houston, and Cleveland. Its ExpressJet affiliate also operates regional planes as Continental Express. Continental operates a fleet of more than 350 aircraft with about 42,000 employees.

Continental Airlines Inc. said it flew 6.2 billion consolidated revenue passenger miles, or RPMs, up from 5.6 billion a year earlier. A revenue passenger mile is one paying passenger flown one mile. Continental said September's consolidated load factor (percentage of seats filled) was 77%, 2.5 points above last year's load factor of 74.5%.

Focusing on domestic flights, the carrier reported a domestic mainline load factor of 79%, 4.7 points above a year earlier and international mainline load factor of 75.4%, 1 point below September 2004.

A bright star in the sky? The average cost per available seat mile of the other major airlines in 2004 was almost 9% higher than Continental's, while the average revenue per available seat mile was about 1% lower. Continental may be one of the strongest major airlines, and wild swings in share price can make for tempting speculative trades.

The firm has announced plans to purchase 10 Boeing 787 Dreamliners as part of its effort to modernize its fleet and cut costs with more-efficient and less maintenance-intensive planes. Continental seems to be avoiding the temptation to grow at all costs.

Thanks to relatively good relations with its employees, Continental has avoided disruptive labor disagreements and maintains labor expenses lower than the major airline average. However, a Defined-Benefit Pension Bill sits on the floor of the Senate. If it makes it through the healthy airlines could face an estimated $10.4 billion in minimum pension contribution requirements over the next four years, more than some may be able to afford and stay in business. However, Sen. John Cornyn, R-Texas, has placed a hold on the legislation that could prevent it from coming to the floor.

Continental Airlines Inc. opened on Monday October 3th at 9.70. Are the airlines seeing a strengthening demand for their industry? If they stay focused on improving customer service, seeking business travel, and cutting costs I believe Continental is a stock poised to catch some altitude?

#

BUY & SELL: FAITH IN THE AIRLINE INDUSTRY

Current Value of the SOW Portfolio:

$105,412.88

Simple Return: 23.87%

~~>~>~~>~>~~>~>~~>~>~~

S & P 500 Value : $99,476.22
Simple Return: .04%

~~>~>~~>~>~~>~>~~>~>~~

Treasury Bond Value : $94,918.88
Simple Return: -1.08%

~~>~>~~>~>~~>~>~~>~>~~

Our Stock of the Week addition refects our faith in the survival of the airline industry. We sold four of our lower performing stocks and reinvested those proceeds into AMR

This week we chose Continental (CAL) for the Stock of the Week. Current performance is listed above.

Individual Stocks continue to outperform equal investments in the S & P 500 (.04%)and the TLT Treasury Bond index (-1.08%).

Be sure to check out other Stocks of the Week to see if it's a pick to include in your portfolio.

Past performance does not guarantee future performance. We make no recommendations!

Please call or write if you have questions about how to make money in stocks, bonds and real estate. You can reach me during office hours at 336-778-0543 or write me

#

Television Article | Reuters.com

#

SELLING STOCKS: BUYING AMR

After reviewing the Stock of the Weekportfolio this week We have decided to sell a few of our stocks that seem to have fallen into Bearish hands. Dillard’s (DDS), Joann’s Fabric (JAS), Spartan Foods (SPTN) and Russell Athletic (RML).

With individual stocks outperforming the S& P 500 and the 10 year treasury bond, each company was evaluated to see why it has not stood firm with other market performances. One common thread reoccurs: these businesses are tied to the retail sector. Perhaps rising energy prices, increase costs to transport goods, two major hurricanes and even Mr. Greenspan’s attempts to slow the economy are possible reasons for stock declines. (DDS) lost six stores in the Southeast due to the hurricanes. Dillard’s (DDS), sells upscale clothing which is a sector usually hit hard when consumers have less discretionary money to spend.

(SPTN) has been struggling recently with a major stocker holder group demanding that management enhance shareholder value. In other words, they have some internal problems as well as rising costs to transport goods to stores.

Russell Athletic (RML). just lost the sale of Jerzees brand boys sweats at all of the Wal-Mart locations. This is 2-3% of their revenue. Russell Athletic (RML). has also been affected by the hurricanes through damage to merchandise and distribution routes as well as rising costs to transport goods.

Quarterly sales at Joann’s Fabric (JAS), have been disappointing and present Joann’s Fabric (JAS), with additional challenges in meeting their 2005 performance expectations. Even with their strongest sales months ahead (September –January), they have an uphill battle. Additionally, they recently lost two of their top executives.

Even with a few “out-of-favor” choices, our Stock of the Week portfoliois still rolling on the positive side.

Moneys returned from the sale of these four stocks have been reinvested in AMR. We firmly believe the airlines are going to survive and have great faith in this stock pick to add to our Stock of the Week Portfolio. Look for Continential to be added to the portfolio as our next Stock of the Weekpick.

#