Boeing (BA)

They put up some great numbers and he has been there through an ETF ITA-N. It has a missile component. All components are firing right now. He wants to see the windfall from the tax breaks to go into reinvestments and cap-X. Give it some time and then reconsider it in a month. Let it shake out a little bit.

Partial Sell and move into something else? He has a lot of exposure in these types of stocks, and they’ve been really, really strong. This is partly on increased government spending and partly on really strong visibility. It looks like the group is going to continue to perform well. This company wins not only through its defence business, but commercial aircraft travel is booming around the world.

Sold his holdings about 6 months ago. A great illustration of how you have to balance off risk and reward. It got into the mid $200s, and looking at it relative to its past trading, was trading at about a 50% premium to its normalized valuation metrics. That represents risk. He didn't feel they deserved that much of a premium.

This company has a huge backlog. There is a lot of demand for aircraft, and not a lot of companies that are producing. This is not something you want to own in a market correction. This is something that could do really, really well for you, but you have to be on top of this name for any signs of credit quality in a weakening economy, or even if the market started to top or turnover.

Paid all of their equity (the BV on their balance sheet) to their investors through buybacks. It has a BV of literally $5, and is trading at $334. He would never sell this, but would let it roll on.

Bank of America (BAC-N), Boeing (BA-N) or Ali Baba (BABA-N)? His choice would definitely be Bank of America. Any pullback on Boeing though, would be a buying opportunity.

Sold her holdings about a year ago when it went through her price targets. They have done very well. Some of the rally early in 2017 was due to the defence side. Also, the stock is benefiting from what is happening with the US tax reform packages, and they were building their backlog and are now having to produce. They will be generating a lot of cash flow. If you’ve owned this for a couple of years, you might consider taking some profits.

Has had a fantastic year, mostly driven by strong free cash flow growth coming off of their 787 program. Doesn’t think now is a good time to buy in. Stocks has doubled over the last year which is really unusual for a mega cap like this one. Better to look elsewhere. Aerospace isn’t an area where they are invested heavily in at this time.

It had a nice run this year. Defense stocks go up when North Korea makes inflammatory statements and Trump responds. It’s a sentiment play rather than an earnings story. She likes it. It is a solid, stable company. Buy on the dips and sell on the twitter wars between North Korea and Trump.

Closed at $259. He doesn’t have a model price, because it doesn’t have any equity. It’s BV is only about $5, if that. Here it is at about $260. The world is going to spend money on armaments and all the stocks, from 2008 to now, are up 400%-500%. You are not buying anything financially when buying this company.

This has been buying back stock for a long period of time. As a result, the BV has actually been going down. He hates companies that do this. Trading at about 55X P/B. Intrinsic value is $125. This is not his idea of a good investment.

$100 billion in sales. Has an order backlog for about 3000 737 jets. Air travel is growing globally, particularly in Asia and this company has a tremendous capability, although China is starting to manufacture its own jets. Traditionally, it has not been a well-managed company. They have quite aggressive unions. However, the more research he does, the more he thinks travel and mass market tourism are going to be growth industries going forward, and he has to find ways to participate.

There is a lot of focus around this company and Bombardier. A very interesting political issue. Dirty politics are being played. As an investment, it has done really well over the last 2 years. The world’s leader and biggest commercial aerospace company. It has had a heck of a run, and his target price was around $240. If he owned this, he would definitely be selling it.

Owned this for many years, but just sold it a month ago, because it had done so well. As the price of something rises, its value tends to drop. This is trading at about a 50% premium to its 10-year historical average. That represents a lot of risk. He would love to buy it back, but it is a little overpriced as a stock.

Had owned this for a number of years, but sold it too soon. The stock has done quite well. Typically, you buy airline manufacturers when they are building their backlog. 30% of their business is defence, a sector that has done quite well this year. The stock should continue to do well because of its defence exposure. Eventually, as they start building out their planes, they should generate a lot of cash flow, which is a positive for the stock.