Boeing (BA)

They clearly have a management and supplier issue. They got a lot of explaining to do. Lots of quality problems. Management has no track record. The company is historically close to the FAA, which isn't good. That said, demand for planes is strong for them and Airbus. Boeing could be a good buy, based on this, but he wants to see evidence of a turnaround first.

This was a core holding of his coming out of Covid, and when 2022 began he declared it to be the Year of Boeing He figured that after being grounded return to the skies. Also, with only Boeing and Airbus building planes and facing surging post-pandemic demand, how could Boeing screw up? Indeed, Boeing's order book swelled and earnings soared. If you bought this in spring 2022, you would've made a killing. Problem is, he bought shares a lot earlier. Problem is Boeing's mismanagement, but when they screw up, the results can be fatal. Yes, he took profits in 2021, but then waited and waited as the coming faced problem after problem. Boeing kept dropping the ball by taking forever to retrofit their 737 Max (after getting recertified after crashes a few years ago).  Then, Boeing was blocked from selling their 787 to customers. Also, orders from China didn't come as hoped. In January 2022, Boeing reported an awful top and bottom line miss, higher labour costs, charges from late deliveries and nasty cost overruns. Another bad quarter followed. Were also huge costs overruns on a defense aircraft delivery.  Investors lost confidence and the company addressed it by moving HQ.  He got fed up with Boeing and sold. But he sold it in spring 2022 which he should withstood the pain and bought more shares. He should have stuck with his original thesis, because he would have nearly doubled his money.

It's been a mess in recent years, but Boeing enjoys a duopoly in plane-building. They want to resume 737 Max deliveries to China, which is possible. Shares are up 27% over the last three months. Boeing is over its supply chain problems and demand is up.

It's enjoying a multi-year move up, so buy on any pullback.

It could reach its higher price target (said an analyst today) as long as management  doesn't get in the way. It enjoys a duopoly, but he continues to stay away because of management mishaps.

Analyst upgraded it today and the high price target is fair unless there's an operational mistake. Shares are up lately given their order book, a recovery in China's economy and increasing production. But if you see a recession coming, don't buy this.

Can't believe how strong revenge travel has been. Flights are expensive, but airlines remain competitive. Boeing is down this year and currently. But it can do well in the next five months, but beyond that he's concerned. Share have broken below $200.

It reported last week: beat revenues, losses were larger than expected, and cool cash flow numbers. Slipped 2.5% after the report. That said, management affirmed full-year cash flow and free-cash flow should grow in 2024. Things are getting better.  CEO says the demand is robust; predicts major production growth in 2025 with $469 billion in backlog now.  True, be patient with this.

Reported a good quarter and shares popped this morning. But it closed down after yields creeped up and after a sloppy t-bill sale to raise funds to cover the budget deficit.

Doesn't feel the CEO has turned problems around. They should replace the CEO, who sat on the board during the 737 Max debacle.

They take two steps forward, and one step back, and this announcement is a doozy--shares are down 20% in the last two months. Boeing insists this is not a safety issue, so he reckons it is a manufacturing issue, but it will get solved. He trusts Boeing management; the CEO has pulled things around. Their cash flow is cleaning up their balance sheet.

He goes back and forth on this, but he has faith in this at the current share price.

Their situation with contractors is messy, which makes him think that Boeing isn't on the right path yet.

He bought a lot last year and expects it to rise. China is expected to pick up deliveries of the 737 Max, which will generate a lot of free cash flow.