A little background that I'm in the carbon fiber and composite fabrication business. This past month I couldn't find a supplier that had carbon fiber in stock in the quantities we use. And that is at more then 100% over early 2004 costs. One supplier laughed when I asked about quantity discounts and said, "Howard, don't you know there's a global shortage. I'm concerned about selling it to you at this price. I just don't know when we're going to get more in." It took at least 20 calls in to my main supplier to get a reply. And the reply was it is going to be at least a month before we have any stock greater then 15 yards. And we don't have the tow size you require anyway. All they had were seconds of the larger tow that is quicker to make. It took calls to 4 suppliers to find one that was willing to sell me half a roll. It HIT me: There is in fact a globlal carbon fiber shortage. It is caused by the rapid increase in use of composites in a variety of industries. Carbon fiber is used in products in commercial aircraft such as the new Boeing 787 which is over 50% carbon by weight and also the new Airbus A380 to motorsport which now has commonplace carbon fiber chassis to recreational sports such as golf on both the shafts and now heads on high end clubs such as the Calloway are made of CF and tennis and bicycling. Worldwide demand is growing and there is simply not enough capacity. And this is before Lockheed goes into full tilt with its projects. According to Toray Industries of Japan, the demand for PAN-based carbon fibre for 2004 was estimated to be about 22,000 tons and the demand is forecast to grow at an annual rate of more than 10 percent in the future and is expected to exceed 30 000 tons in 2007. (source: http://www.bicycleranch.com/carbonfibershortage.shtml) Manufacturers . . . developed products when the supply of small-tow carbon was plentiful, but now face the real prospect of fiber shortages. In fact, some small- and mid-size fabricators already are finding it almost impossible to obtain the quantity that they need for application development and part production.(source: http://www.compositesworld.com/hpc/issues/2005/January/689) "Our fifth prepreg line is installed and operational and provides the additional capacity for continued growth in our prepreg material sales. Our joint venture carbon fiber plant, CFT, is running at full capacity. Globally, the carbon fiber shortage is showing no signs of changing in the foreseeable future. Major commercialization successes for carbon fiber have been announced such as the Airbus A-380 super jumbo and Boeing 7E7 airplanes, wind energy programs and armor programs for our troops in Iraq. We believe carbon fiber capacity additions will lag the increasing global demand for the foreseeable future." (source: http://www.aldila.com/corp040070.htm) Yesterday and today I bought ALDA CYT and HXL stock, while getting out of 80% of my AAPL. I believe things are going to get worse (MUCH WORSE) before they get better. Additional production doesn't go online until 2008 and people are starting to hoard and stockpile the stuff. I'm thinking about going into options to make larger bets. Anyone have any advice for me?