Boeing stock takes another beating

Discussion in 'Business, Investing & Finance' started by GatorInGeorgia, Mar 12, 2019.

  1. GatorInGeorgia

    GatorInGeorgia Senior Member
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    For the individual stock pickers on this board, BA gets hit again, down about 6% today and approximately 16% over the past week. I don’t own any individual shares. It wasn’t too long ago (past few months) that many analysts were touting its’ virtues. I’m not saying it’s not a good company or good stock, rather this is a good reminder how quickly things can change for all sort of crazy reasons, even for companies perceived to have a wide moat.

    Anybody feeling frisky enough to start nibbling at BA shares at these prices? Also, a side question...would you fly on the Max 8 this evening if you were booked to fly out?
     
  2. bradgator2

    bradgator2 Internet Bully
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    Im in for a few if it gets down to $300.
     
    • 78

      78 Dazed and Confused
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      Boeing's liability risk is mitigated by $2B per plane insurance. The company has jumped on the autopilot issue, which helps mitigate the public backlash.

      Systemically? You want these shares.

      Boeing had rudder issues with the 737 in the '90s. Solved.
       
    • BMF

      BMF Bad Mother....
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      I cashed in big time when Deepwater Horizon happened and BP stock tanked. It came back strong within weeks.
       
      • ChiefGator

        ChiefGator A Chief and a Gator, Master of the Ignore list!!!!

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        I was looking at it closely, it was down worse on the opening and has come back some. I was too chicken to buy, but would fly a US based airline. I do think all the airlines should ground the aircraft for publicity.

        boeing had a bright future, it might be over priced.
         
      • 78

        78 Dazed and Confused
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        Boeing is trading at a 21.3 earnings multiple. Not certain how you extrapolate that it's overpriced unless you're trying to bake in some kind of doomsday scenario over the investigation, which would be speculative. The company killed it on earnings for Q4 and on guidance. Systemically, it's in very good shape.

        Let's see where the investigation takes us. If it reveals a mechanical flaw, as is being speculated about the nose-up issue, I'm sure Boeing will address it head on.

        The media just loves to run amok with these kinds of stories.
         
      • ChiefGator

        ChiefGator A Chief and a Gator, Master of the Ignore list!!!!

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        Depending on how much this issue affects both legal liability and future sales. And it has increased a lot this year.

        Overpriced means it is going down more in the short term, not some technical evaluation. The market works on emotion, not really rational thought.
         
      • ChiefGator

        ChiefGator A Chief and a Gator, Master of the Ignore list!!!!

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        It is pretty clear, both of these issues will be found to be caused by pilots that could not properly adapt to the automated system doing something that it really is not supposed to do. In case one faulty data which was known and the plane flown anyhow.

        The second is still under question.

        Planes today are too automated, pilots not that well trained or capable.

        Just my opinion.
         
      • BMF

        BMF Bad Mother....
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        Anybody get in on this tank?

        It's at $95 after hours....closed at $97.71.
         
        • bradgator2

          bradgator2 Internet Bully
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          I did a few shares this morning at $97.69. My first BA purchase.
           
          • BMF

            BMF Bad Mother....
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            I just placed an order for $95.25 for 11 shares.
             
            • FireFoley

              FireFoley Senior Member
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              Well I guess I made a mistake on BA the other day. I admit I had a resting order just above $90/share to buy a small amount. With a $8+ dividend that would be a nice hit. Well I cancelled it in the morning and the stock traded down to $89/share and then rallied about 20 bux. Well my thinking (right or wrong) was that I know the government is going to get involved so does that mean loan, takeover, etc.? Would it mean like GM, the old stock becomes toilet paper and they issue new stock or the stock remains in place and the government becomes an owner? Well that and I was busy doing other stuff made me cancel my order. Be that as it may, BA has now suspended the dividend (good move IMO) and I guess I can reassess. I am thinking that the stock could find some footing now being that they can save that dividend money for now. And yes they are going to need more financial help, but I am just unsure of how government help will change the current stockholder situation? Does anyone have any thoughts b/c people are going to have to fly for obvious reasons and BA and Airbus are the only games in town. So might this be a once in a lifetime opportunity or pieces of paper waiting to be used as wall paper?
               
            • Detroitgator

              Detroitgator General Factotum
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              You are asking the right question, and I think there is no question that the Fed/USG will literally own Boeing... and a lot of other things. I'm not willing to take the risk on what the paper will be. I also think we are more likely to see a 6000 pt Dow before we see a 10000 pt gain again.
               
            • Detroitgator

              Detroitgator General Factotum
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              Just a little more about your post.

              I read how you worded this and I recognize your conundrum. Also, based on your posting history, I see you as someone who is much more financially savvy than the average person...

              But here is my takeaway from your post: "A very financially savvy guy does not know what to do in the current market situation." That's yet another indicator to me of what is going on right now.

              I would keep powder dry and wait. We're down 30% overall. It took three years for the dotcom bubble to bust and bottom. Do you REALLY think we are anywhere near bottom yet?

              I posted a thread at about 3 am this morning with my thoughts and then pulled it, because I didn't want to be "that guy." BNA was still awake and through the power of "Modship" was able to read what I deleted, and I think he deleted my blank thread.

              Here were my thoughts in a nutshell:

              1. The slow walk to shutdown we are STILL walking toward really has nothing to do with the pandemic. It has everything to do with a global financial "reckoning" that is long overdue.
              2. We are slowly being prepared for something really bad, and it ain't "the flu on steroids."
              3. The Trump "hyper bubble" (gains of last 3.5 years) are now erased.
              4. There is still a MUCH bigger bubble left to go, the Obama bubble.
              5. As a financially smart guy, you well know that true "free" markets serve only one purpose: to fairly price things, and the market is no different, even with manipulation. Eventually, there is a reckoning and it will be fairly valued, one way or the other.
              6. The last time the DJIA was "fairly valued" is when it was at 6,000. That's when we started the real games with QE 1. It's been a bubble ever since.
              7. So, in the big picture, which do you think is more likely:
                1. We are pretty close to the bottom and more likely to resume the march to Dow 30,000? Or,
                2. We are being prepped for something really terrible, a reckoning/reset that will also set China back far more than it will us, and the market will "fairly value" itself and test 6,000?
              8. And yes, in the end, the Fed/USG will literally own not just Boeing, but whole sectors of the economy (likely the most important ones), and so will all our "friendly" CB nations. We already see the Fed shoveling money to them by the truckload. First with the EU, then it expanded to other friendly nation central banks this week. And it will continue, probably by trillion(s).
              9. I know people are talking $2-3 trillion, but we've already done that in the first MONTH.
              10. Quit worrying about the pandemic, worry about each other, and keep your powder dry.
              11. If I'm wrong, you'll only miss out on what, a 5-10% increase in Boeing's value after you watch a true bottom form and then you only partake in the rest of the upside?
              12. You understand the "catching a falling knife" saying, and I'm not picking on Brad, but it's a great example. Yes, I agree with him, RCL will recover one day. It is now down 50% from the "great deal" he got on it at $47... Now, he ONLY needs it to go up 100%... to break even.
              13. I wouldn't touch anything long until we see the slow walking to shut down end.
               
              • BMF

                BMF Bad Mother....
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                Did you get in at all? It's up to $120+ today. Will be interesting to see where all of this goes.
                 
              • FireFoley

                FireFoley Senior Member
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                SaDly, I did not. Not the only mistake I have made LOL. could have had a nice quick hit, but was not really what I was thinking. They did scrap the dividend which was obvious, so my feeling was I would be left holding a stock with a lot hanging over its head and no known answers immediately. But still it was a mistake to pull that order. I diverted those funds elsewhere to grab some 5+% dividends in companies that I do not think will need government help financially.
                 
              • FireFoley

                FireFoley Senior Member
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                Been stabbed by that knife more times that I want to admit, but the temptation is sometimes hard to overcome. But throughout my life, it certainly would have been more prudent to let that thing hit the ground :)
                 
              • BMF

                BMF Bad Mother....
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                I only bought 15 shares (9 in my non-retirement account and 6 in my Roth). I'm just going to hang on. If it doubles I might sell....thoughts?

                I think if we can get this virus settled we'll get back at least 50% of the losses...but after that it'll be a slow climb - and could fall again depending on the elections and/or if the virus issue flares up again. It's definitely a gamble.
                 
              • FireFoley

                FireFoley Senior Member
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                I don;t doubt that BA will eventually double and more. Not sure of the timetable I Your patience will be rewarded I hope and I am glad we did not dive in head first when BA was 350, 300, 250, when it "looked" inexpensive, LOL.

                As it turned out my timing would have been excellent but I failed on the execution of my plan. Should have stuck to my first instinct. But as we say in the markets, there is a train leaving the station every hour and you can't be on all of them
                 
                • FireFoley

                  FireFoley Senior Member
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                  Good read and I agree with almost everything you said. But I might dispute your thought that "I am more financially savvy than the average person". Sometimes I wonder myself but I appreciate your words :)
                   

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