Nothing earth shattering. Consolidating its giant move. Some will want to break the trend once the right shoulder forms, and other will want buy expecting new highs. But this is going nowhere fast short term. Id continue to be a seller of puts into measured downturns as a way to build position at a small cost trusting in the long term growth story.
Boeing Soars Mar 4, 2019 To say that Boeing shares have had a good start to 2019 would be like calling the 747 a puddle jumper. With a gain of over 50% from its late 2018 low and a YTD gain of over 36% through last Friday’s close, it has been one of the strongest starts to a year (through 3/1) for a current DJIA component in decades. Making its move even more noteworthy is that with a share price of more than $400 and the fact that the Dow is a price-weighted index where each components weighting in the index is based on its share price, BA’s rally has had a ‘jumbo’ impact on the overall index. BA’s weight in the DJIA currently stands at 11.5%, while its weighting in the S&P 500, which is a market cap weighted index is less than 1%. As a result, through Friday’s close the DJIA had gained 2,807 points so far in 2019 and BA accounted for 812 of them. That works out to 29% of the DJIA’s entire gain this year! Without BA’s rally, the DJIA would only be up about 8% this year versus the 11.5% gain through Friday. Behind BA, the next closest stock in terms of its impact on the DJIA this year has been Goldman Sachs (GS) which has accounted for 216 points of the DJIA’s YTD gain (7.7%). As mentioned above, BA’s strong start to the year is one of the best for current DJIA components going back to 1995. Of the 30 current members, there have been just four prior occurrences where they rallied more than 30% YTD through the close on 3/1, and two of those occurrences were in the stock of Apple (1998 & 2005) well before it was even added to the DJIA. The only two other occurrences were Intel’s (INTC) 41% gain in 2000 just after it was added in late 1999 and then Microsoft (MSFT) the next year in 2001 when it rallied 37%. The key difference between those two occurrences and Boeing, though, is that because of their share prices at the time, they didn’t have nearly the positive impact on the overall index when they rallied. While bulls have nothing to complain about regarding BA’s big rally this year, the impact of high price stocks on the DJIA cuts both ways. Barring any future stock splits, even just a 10% correction in shares of BA would clip the DJIA by more than 250 points.
Interesting number here mentioned on CNBC. At the current rate of growth of China's fleet, they need $1.2T worth of planes over the next 10yrs.
Well....I haven't been here in this forum very long, and I don't want to ruffle any feathers, or damage anyone's feelings, so this article comes with a warning. If you are politically correct and you favor political correctness you may be offended by the following article, also, please keep in mind that I am simply the messenger and not the author, please don't shoot me. With all of that being said, this article speaks of Boeing's woes with regards towards the recent failures of their 737's and what the future of Boeing might be. Jim Stone: Boeing Is Either Going To Get Woke Or Die.. The Firing Of White Male Engineers And Hiring Cheap Foreign SJW Labor Doomed Their 737 'Max' http://www.rumormillnews.com/cgi-bin/forum.cgi?read=127465 *Disclaimer: I'm not certain how much truth there is in the claims about Boeing's human resources practices but I have read the same claims elsewhere so I felt that this should be fair game for discussion in this thread, my apologizes to those who are offended.
In short at 376.5; covered at 363.41. I should've just put a stop in and let it run. The support for now seems to be around 350, so if I cant find a better play im going back in.
There's obvious support from 320- 324. I think this can bounce atleast to 350, but I feel a bear market coming.
I am not interested in distressed companies that have been mis-managed but, if I was, Boeing with Miulenburg being replaced, would probably be at the top of my list. At some point, the 737 Max will fly again. When that day comes, there will likely be a strong positive over-reaction. It could be a great trade swing, for those who do that sort of thing.
Boeing will be fine. All this negative news will only cause short term moves. In the long term Boeing is giving good value now. Its like Bank of America as a product sucks, but if the government is only gonna back them when they tank whats the point of not having confidence in them.
You may be right. But anecdotally, I know many people who are refusing to ride the Max. Not because of any safety worries on their behalf, but because the Max is 1970's technology. That is the real issue with Boeing. They just tried to slap some new features on old technology. Lazy. And it turns out, deadly. But no matter how much you polish a turd, you're still holding a piece of shit. imo best solution for Boeing going forward is scrap the Max, and scrap any more bright ideas to build with the 737. I can't believe they're trying to hold onto 50+ year old designs. They're lucky this industry has no competition, or they could have ended up being GE. new design = easier to win people back. Seriously, just give more legroom.
Allow me to be devil's advocate.... Leg room is a decision of the airlines and a function of how many seats they install in the cabin. It is not a limitation of the max. The 737 Max is a new airframe. While similar in appearance to the previous generation, all aircraft necessarily look similar. The max flies and handles differently than previous 737 models. This would have caused airline pilots to recertify in the max as a new type. Would have. As an efficiency measure, Boeing designed a computer system that sits between the traditional flight computer and the flight controls. The purpose of the new computer is to make the new airframe fly like the old airframe. It is this adapter piece that is causing the crashes. The system can work. It just isn't there, yet I'm very concerned about Boeing management. I did not trust them with my nest egg as they have displayed behaviours that I avoid. With the CEO who steered them into trouble gone, I hope things improve. I would certainly buy Boeing in the future but not until they have a good management team and that is going to mean a lot more than a new CEO.
The 737 is 50 year old technology. Back in the day, you had to walk onto planes from the tarmac; so they couldn't make the planes very high. So what they did, and still do to this day, is they put the wings low. Now there may be a new frame, but the wings are still low. Because of how things were 50 years ago. Now, they want to make bigger engines. But the engines hang below the wings, which are low. So with the MAX, they kept the low wings (for what reason?) and moved the engines forward. This has screwed up the balance of the planes. I believe the MCAS was made to make the MAX handle like the previous plane. Maybe the planes look different, because the engines are bigger and have moved forward. But they're still basing it all on a 50 year old paradigm.
$BA What's going on guys I just made a video about the news released today on $BA...which I think it's Bearish...why the technicals are showing we may have a big move to the downside this week from Boeing. Interested to learn if anyone has any other perspective on the future of Boeing stock over the next two weeks. -
Boeing isn't going to reduce their dividend, and has advised relatively minor profit reduction, despite the company more or less being on fire. Boeing indicates there is no hardware or software problem with the 737 Max. They cite lack of pilot familiarity with the plane as cause of the crashes. To date, no sales of the 787. The 777x is struggling to producrion ready on a few fronts. I watched the maiden flight of the 777x a few days ago. Gorgeous plane. Meanwhile, Quantas passed over the 787 for the A350. If I were an investor, I'd hope for the Justice Department to clean up Boeing. It's a rotten apple that appears to be in big trouble. I'm sure it can be saved but not without first cleaning up the systemic corruption problems.
Boeing seems a bit f##### up. https://finance.yahoo.com/news/airbus-boeing-duopoly-looks-extremely-085518833.html
Boeing now claims there is a second software bug which can causes the attitude indicator light to malfunction. What are the odds they are using this as cover for a software fix that is far deeper than an indicator light, and they want to register a change so they don't go to jail if the change goes poorly? If Boeing management had always conducted itself with integrity, there would be no cause to think this way but they have been so obnoxious and obstructionist, it's the first thing that popped into my head when I read the Bloomberg article. I think there is still a chance the 737 Max will fly later this summer. We'll see. Given how things are going, This would be a great time to short their engine supplier: GE. GE has said they will take a big hit if the 737 Max does not resume production by mid year.
A Dow Without Boeing (BA) Wed, Feb 19, 2020 For more than a year now, Boeing (BA) has been plagued by the 737 MAX crisis which has weighed on shares of the plane manufacturer with it now currently down nearly 20% from when the initial groundings took place on March 10th of last year. Despite this, while underperforming the broader market due to the 737 issues, the stock is actually still up just over 5% since the start of 2019. Even though BA has lagged, it is still the highest-priced stock of the 30 stocks in the price-weighted Dow Jones Industrial Average. Currently trading around $338.5, the only stocks in the index holding a candle to BA are Apple (AAPL) and UnitedHealth (UNH) which also trade north of $300 per share. That means these stocks have the highest weighting in the index and therefore have a much larger impact than other stocks on its performance. With BA's issues, a number of people have pondered the what-ifs for the Dow had the company not had the issues with the 737. Would we have already broken out the Dow 30K were it nor for BA? In the chart below, we show the actual performance of the DJIA and have overlaid the performance of an 'alternate Dow' showing its performance if BA had not been in the index since the start of 2019. We used the start of 2019 instead of the actual date of the groundings as it is a little less arbitrary. By our calculations, while we would be a bit closer, even if BA wasn't in the index since the start of 2019, we wouldn't quite be at Dow 30K yet. As shown, our alternate Dow would be almost 1% or 266 points higher if Boeing was not included in the index since the start fo 2019. While BA has been a drag on the DJIA since last March, it also provided a big boost to the index in early 2018 before the 737 issues hit the stock. In fact, at the start of March 2017, BA was up over 36% YTD and the spread between the Dow's performance with and without BA was around 700 points in the other direction as it is now! Another example of this dynamic in which high priced stocks have a greater impact on the index was observed on Tuesday when Apple's (AAPL) stock fell after the company warned that Q1 revenues would be shy of prior guidance due to the coronavirus. The warnings sent shares down over 3% at its intraday lows, but the stock only finished down 1.83%. While there were equivalent or larger declines like Dow (DOW) or Walgreens Boots Alliance (WBA) in Tuesday's session, AAPL's declines by far weighed on the index more than any other stock. Of the Dow's 165.89 point decline, AAPL contributed 40.35 pts. Fortunately, UNH helped to mitigate some of those losses as it had a positive impact on the index of 22.79.
