Boeing (BA)

Has done well. Earnings have done well. Cycles are very long. 787 cycle, 737 max cycle will probably take us well into 2020. It is not expensive and can grow from here. Doesn’t think it is expensive here. The airlines need Boeing as much as they need airlines.

A stock like this is extremely cyclical. Their customers are also very cyclical. Stock has had a huge run. Bombardier (BBD.B-T) are possibly coming up with the C series, which could take some market share away. You have to look at companies that are not doing well, as opposed to those that have already performed really well.

Great company. Have about a $330 billion backlog. Finally in full production on the 787 after the well orchestrated problems they had. New planes have the fuel efficiency that allows airlines to go from pretty boring. ROC, to pretty exciting ones. This will keep the company going for quite some time.

Likes the aerospace cycle and thinks we are at the right point in the cycle. Fundamentals look fantastic. This one is all about the Dreamliner. Now starting to get into the production phase and all their other platforms are producing quite well. Have sold out their production capacity through to 2016 and this is what gives you the tremendous visibility of their cash flows. Dividend yield of 1.67%.

Likes aerospace and what is happening with the main airplane companies. The commodity cycle is very muted this time around, and we won’t see commodity inflation for 5-10 years. As a result, the main lines will do very well. They will have more cash flow to spend and will spend it on upgrading their fleet. If it came off 7%-8%, that would be a great buying opportunity.

(Market Call Minute.) Defence and aerospace sectors are performing really well. All the suppliers are performing well. He got shaken out of this stock but wished that he still owned it. He may buy back.

Has been buying on weakness. Generates a ton of cash. Returning 80% of cash to shareholders through dividends and share buybacks.

This one has more room to run but wait for a pullback before buying. Have 3 things going for them. 1) Demand for new airplanes for new fleets in developing nations, 2) massive replacement requirements by North American airlines and 3) they are doing some interesting things in the defence area. CFO has stated that he wants to return 80% of their cash flow to shareholders in the next few years via dividend increases and/or share buybacks. 1.8% dividend yield.

Had recommended this one as a top pick in February at about $75. The airlines need the 787s as much as Boeing wants to sell them. Airlines need new fuel-efficient equipment to compete. Last week the stock reacted negatively to an incident at Heathrow, which was not a problem with Boeing but has since recovered. Still good value. This is a dream cycle, because it is long and could last into 2020 and beyond. Not expensive.

Has done extremely well but the cycle they are in is a long-term cycle and could last to 2020 and beyond. It may be a little ahead of itself. If it falls back, that will be a great opportunity to purchase it.

This is cyclical but in a longer cycle. Stock had a great move. At these levels, it is probably more fully valued even though it is in a growth cycle. Just sold his holdings but he would look for a re-entry point probably, if it traded below $90 again.

Problems with the Dreamliner have been well documented. Stock is had a terrific run so he would not buy at this price. Although they are allowing them to get the 787s back in the air, it is not certain that there is a long-term fix for the actual problem. It’s not even understood what went wrong in the 1^st place.

Airlines need the airplanes from a fuel efficiency standpoint. Still thinks there is a lot of opportunity here. This is a long-term secular story and will probably take us through 2020. Expect we can look for at least a mid to low teens growth of earnings through this period.

(Top Pick Mar 8/12, Up 16.98%) Stock fell on battery issues. Yesterday they got approval to start testing their new design. Good demand on their other models.

This is a long-term story. Airlines want the airplanes as much or more than Boeing wants to sell them. They need the airplanes. It is new technology and much more cost-efficient. The battery problem is only a bump in the road. All new technology goes through problems. Dividend yield of 2.58%.