Opinions
Javed Mirza
Boeing
BA-N
WATCH
Jan 31, 2025
Stock price when the opinion was issued
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He hopes their troubles are behind them but as an equity investor is not sure if he sees the light at the end of the tunnel yet. There are only three companies in the world that make planes and global travel is growing. It has some logistics issues and has received some significant slaps on the wrist by the transportation board. There is a lot of debt but the order book is pretty filled up. He thinks there has been some change in management.
He started a position earlier this month. He avoided it for a long time, but this year he wanted it to take advantage of Trump's trade war. Also, the CEO is doing a good job. He entered after the big pullback earlier this month. Buy some, then wait till it touches $200. Reasons: only 2 companies build at scale commercial jets in the world such as Japan ordering 100 Boeing jets. Making more planes will boost their cash flow. The CEO has cleaned up the messy balance sheet; has sold parts of the operation to pay off debt.
Ups and downs over the years. OK right now and looks fairly resilient. Trending upward, so far so good. Holding above $200-210 support. You have to play the trend on this one. (Years ago, he got back in thinking all troubles were behind it, and he woke up one morning to find one of the doors had fallen off.)
LMT has definitely done better over the last couple of years. BA is a bit of a recovery play here. In general, where we are in the cycle, he thinks we're in phase 2 but on the cusp of phase 3. Phase 2 is typically where materials, industrials, and technology continue to do well.
These names should do OK, but we are approaching the end of the cycle. Ultimately, at some point, we'll see rotation out of these industrial plays.