Boeing (BA)

Gave conservative guidance when they reported their 4^th quarter. Company historically has always beaten on their earnings and cash flow by a wide margin. Have a very strong backlog support, cash flow and earnings for the next few years. Can see big demand out of emerging markets as air travel demand increases. Within developed markets, she is seeing replacement demand for aging planes. Have committed to returning 80% of free cash flow to shareholders and they don’t expect free cash flow to peak until 2015-2016 at the earliest.

Really loves the idea of the predictability for many years to come. Right through to the end of the decade, they have an order book of $374 billion, representing over 5000 airplanes. Airlines need the new airplanes because from an operations standpoint, they are anywhere from 10% to 15% more fuel-efficient than the older fleets. That really represents the bread-and-butter of the airlines. 787 is now in full production. Also, have the 737 Max in full production. They will be busy for the next 5-7 years. Not expensive.

A good long term story. Had a great move. Doesn`t know if he would own it here, but wait for a pullback and hold for the long term.

Looks like it's breaking down, but a little support at the 120's. Just make sure that it's not broken.

(Top Pick Feb 5/13, Up 71.14%) Recommended it when the 787 problems with the battery were just happening. The airlines need their airplanes because they are fuel efficient. This one was an easy call for him.

Qualcomm (QCOM-Q) or Boeing (BA-N) for a great granddaughter that wouldn’t have to be changed? He would prefer Boeing. The whole airline industry is going to be growing by leaps and bounds. They make airplane engines and also involved with armaments. Dividend is 2.3%.

Good company and you will do all right but his concern is that a big portion of its business is under pressure. 40% of revenue comes from military sales. Sequester in the US caused a cut of 50% of military budget so he is concerned about future government cutbacks. He would prefer a company that does not have this problem.

Thinks the shares got beat up a little too much. Have a $445 billion backlog, so they are supply constrained, not demand constrained. Everything going on globally fits the theme of recovery and growth. There are a lot of old planes out there that have to be replaced. He is seeing orders almost every week for them.

Stock pulled back when they reported their quarter. Gave very conservative guidance, which they are known to do. Still believes in their long-term commercial aerospace story. Strong demand from emerging markets for traffic growth and from developed markets for replacement. Along with the conservative guidance they gave for 2014, there is probably this lingering emerging-market concern that might impact plane demand. She doesn’t think the crisis is that deep. Dividend yield of 2.39%.

Had a fabulous quarter. Put the numbers on the table for 2014 and the street didn’t like it. Feels this is a good time to get back into this stock. Both the defence and commercial sides were very good. Delivered 648 airplanes in 2013 and expects between 715 and 725 in 2014. This is a very long cycle and visibility is excellent.

(Market Call Minute.) Airlines are having a bit of a boost here. It’s a financial shell game right now so be careful.

Has been a wonderful performer but, as the price of anything rises, value tends to drop. Although this company has been doing great things in terms of cash flow, earnings and revenue growth, valuations are rising. He still thinks it is good value. It is probably a 10 year secular bull market for them. He is happy with the synchronization of price and fundamentals for now.

A huge play on the global economy. If you think the worldwide economy is going to continue to grow, this is probably a decent play. He thinks it is probably fully valued and he is finding better opportunities.

Have a lot of momentum in orders. Airlines globally are continuing to order new planes. For the next few years, they look very, very good. Order books are all packed and they’re scheduled to make a lot of money. The issue comes after that because a lot of the airlines are being bought on credit and anticipated growth. Once they buy the plane, they have to put it into service.

Had a very impressive run where they got $100 billion in orders. If it pulled back, he would participate in it. You could buy a little bit now to have a position if you really wanted to.