Boeing

They have a great back-log and they are in a duopoly. The stock has a lot of challenges in the coming year. He’s doing a 6 month option.

He wonders how the issues with the Max may reverberate back from the airlines in the long run. He also wonders what the new CEO will do and does not know his history. If write-downs follow the arrival of the new CEO, investors may look to run away for a while.

Sell in reaction to grounding the 737? The news is no surprise. The FAA will take their time to approve the 737 and this will cost Boeing--and the whole airline industry. Expect more downside, but not a ton--downside is already factored in the current share price. The suppliers will get hit who depend Boeing. Boeing is well-capitalized, but are in the penalty box.

Hard to say if the bulk of the worst is behind it. Be patient and look long-term. They have money set aside for the legal issues. Has a backlog. A good industrial name, but don't own a lot at this point in the cycle.

His bias is to be leaning to sectors that would benefit from re-inflation. BA fits into this camp. They have the 737Max issue, but there are only two global airline manufacturers and there is no excess supply. The company will get through this. There will still be tough news flow, but hearings are already underway and it has been dragged through the media already. Over 2-3 years you will do very well.

(A Top Pick Nov 09/18, Up 2%) A covered call. Boeing is under the regulatory microscope for a good reason. He sold a call and made a modest profit even though the stock itself has gone down. Don't trade Boeing now, but do a call. Boeing has a long runway ahead, pun intended.

He just took a position in this company. There's a duopoly and it's not a question of if the Max air comes back, it's when. They missed on earnings but they are seeing the Max coming back in Q4. From a financial point of view, this is a stock he would buy here.

The sell-off is likely overdone, but in 5 years this will be a lot higher than now. True, safety is #1 and he doesn't like what he saw about the 737 Max. There's a lot of work and at least a year of negativity. But Boeing enjoys a duopoly.

Is the bad news now baked in? Recovered? Demand for air travel and planes continues to grow. The 737 fiasco is their bread and butter, and they may halt production of this. Boeing originally thought this stoppage would last only weeks or months, but it's dragged on. You can hang onto the stock, but there are too many issues. He's avoiding it.

(A Top Pick Sep 20/18, Down 8%) He continues to like the defense sector. He would buy again, but not yet. There are only two producers of major air planes. He would continue to hold.

Buy it now after a pull back? This didn't oversell as some expected given its woes. He wouldn't buy it now? Who will compensate the airlines who can't use their 737? A veteran pilot he knows feels that Boeing screwed up a fine plane by massively mis-designing it (its engines are too big and too close to the fuselage). The 737 may never fly again, which would be a disaster for Boeing. There's also the legal liability of all the people who died in those crashes. Way too much uncertainty here. In the future, tourists (more them Asian) will fly Chinese-made planes and that will eat up part of the airplane market from Boeing.

You have to pick your timelines. He owns some personally but not as a firm. They are the absolute leader in their space. Nobody can take over production of their planes in the near future. They have a near term problem. The stock has been remarkably resilient given the concerns people have with their planes and that tells you the street thinks they will fix the problems. When it broke above $360, it became technically attractive to him but he thinks we will continue to be affected by news flow. He would hold or buy more if you were willing to take some risk. Commercial air travel will continue to accelerate around the world and there are only two companies that can supply these planes. (Analysts’ price target is $425.00)

He does not own it. Fundamentally, it is fairly priced. He would not be a buyer because you just do not know what legal ramifications may be yet to come. It smells bad, so he is staying away.

It's amazing the stock hasn't come off more given the 737 Max crash, but it's in a duopoly and travel demand is strong. 23x forward earnings so not cheap. Risk will get worse going forward.