Boeing (BA)

A nightmare. They reported a horrendous quarter today, losing $1 billion a month from this machinists' strike, and they've forgotten how to make planes. That said, buy a lot of shares when they do a secondary offering (much lower than the current share price) to shore up their balance sheet to survive. Why buy? They enjoy a duopoly. After this strike, Boeing will be back to profit again. Demand for airplanes remains strong, a half-trillion dollars worth. The company has poor, arrogant management, and a lousy corporate culture.

Is worried. Poor balance sheet and fears there will be a strike.

Prefers not to step in front; like picking up dimes in front of a bulldozer. You could buy it and be a hero, but he'd prefer to buy at 20% off the lows with a better technical setup. Too many unhappy shareholders just waiting for it to move higher so they can get their money back. You want happy shareholders around you.

He owns GE (it's now purely jet engines after the spinoff). Also owns ERJ, which has an opportunity to win significant market share. 

She sold Boeing after being very patient with it. But the labour negotiation and the company coming to market to raise capital changed her mind. Eventually, Boeing will right itself though.

Today the strategy is to sell a put option to get in at the entry point, maybe January 2026 or June 2025, looking to sell at $150. He would buy additional out of the money puts in case of more problems with the company.

Both of the primary upstream manufacturing units are incurring operating losses. Technical issues are troubling. Labour issues. Fixed-price contracts at a time of rising inflation. Covid really hurt. Order backlog starting to rebuild. Still no dividend. Lots of debt. New CEO will take a while to settle in.

Boeing has several problems, including the 737 Max. There are better industrials with cheaper valuations and better growth.

It has been in the headlines a lot and deliveries have been an issue for both Boeing and Airbus. It is hugely capital intensive and this is not their way to play aerospace. He prefers RTX, formerly Raytheon, which makes parts. More are needed for older airplanes since deliveries of new ones are a challenge these days.

Long term they have staying power, but short term they have a cash flow problem.

Hold your nose with this one. Horrible performer for years. Big loss recently, weaker revenue. Commercial and defense remain challenged, behind schedule and above cost targets. Scrutiny on the door that just blew out. But notice that when the door did blow out, stock didn't go that much lower. Not a lot more downside. No dividend.

Just replaced CEO with a very seasoned engineer. A name that's necessary to the US supply chain. A fixable company, and thinks it will be with the right leadership. Analysts assume 2025-2027 growth is 56% EPS. Priced well at 22x 2026. Want to buy the great names when they've had a fall. Don't need to buy right away or too early, but the cycle will turn for this company.

Can't buy it, because Boeing is constantly in the cross-hairs of the government

Can't criminally prosecute a company, could be good company to hold (some people will be held accountable though). 

It has had to deal with the 737 Max problems. It is not generating cash and the overflow is slowing down. It has some potential since the defense side of the business may help and there are only two main builders of aircraft. However there are better places to be in the industrial space.