787 Dreamliner posts
FeedPosted Nov 12th 2010 9:00AM by Paul Foster (RSS feed)
Filed under: Wal-Mart (WMT), Boeing Co (BA), Options

Boeing (
BA) closed down 2.6% after canceling all scheduled 787 flight tests in the wake of Tuesday night's emergency landing. Overall option implied volatility of 33 is near its 26-week average of 32, suggesting non-directional price movement.
Walmart (
WMT) is expected to report Q3 EPS on November 16. November put option implied volatility is at 18, December and January is at 16; below its 26-week average of 19, according to Track Data, suggesting decreasing price movement.
Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.
Posted May 10th 2010 10:00AM by Mark Fightmaster (RSS feed)
Filed under: Analyst Upgrades and Downgrades, Boeing Co (BA)

Goldman Sachs on Monday
upgraded Boeing (
BA) to conviction buy from neutral, elevating the aerospace firm's price target to $90 from $82.
According to
MarketWatch, the brokerage said it believed that "suppliers would outperform Boeing," but now it thinks Boeing will continue to outperform because "it spans nearly every positive global theme that is driving outperformance in stocks today." As examples, Goldman cited Boeing's "BRICs exposure, credit normalization, a product story, the consumer recovery, favorable industry structure, and favorable company-specific dynamics."
Continue reading Boeing Upgraded by Goldman Sachs
Posted Dec 14th 2009 8:00AM by Paul Foster (RSS feed)
Filed under: Yahoo! (YHOO), Boeing Co (BA), Options
Boeing (BA) closed at $55.60. Boeing plans to fly its new 787 Dreamliner for the first time as early as this week. BA December option implied volatility is at 30, January is at 33, February is at 35; versus its 26-week average of 34, according to Track Data, suggesting non-directional price movement.
Yahoo (YHOO) closed at $15.74. YHOO January option implied volatility is at 29; April is at 32; below its 26-week average of 42, according to Track Data, suggesting decreasing price movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
Posted Aug 3rd 2009 11:00AM by Joseph Lazzaro (RSS feed)
Filed under: Bad News, Boeing Co (BA)
Word that Boeing's next-generation plane, the 787 Dreamliner, may not fly until 2010, according to The Seattle Times, is bad news not just for the company, it's a negative data point for the U.S. economy.
The 787's engineers must correct a wing flaw that extends to inside the plane: 17 long stiffening rods, called "stringers," on each wing's upper skin, sustained damage that occurred just beyond the aircraft's "limit load," which is the maximum load the wing is expected to bear in service, The Times said. In other words, the wing damage occurred when the wing was well below the load the wings must bear to be federally certified to carry passengers.
Continue reading Boeing 787's wing flaw: A data point the U.S. economy does not need
Posted Feb 16th 2009 5:30PM by Joseph Lazzaro (RSS feed)
Filed under: Competitive Strategy, Boeing Co (BA)

The traditional response -- and defense -- for a late delivery is 'Better late than never." Regarding
The Boeing Company's (NYSE:
BA) delayed
787 Dreamliner, the stance is, 'Better be great, or never.' The Dreamliner, Boeing's next-generation wide-body, has been dubbed the '7-Late-7,' due to the company's four delivery delays that have pushed back its first delivery to Q1 2010.
From a commercial aviation standpoint, delaying a delivering is like showing up late for the first semester of classes at college. In the 787's case, Boeing looks like it will arrive on campus about four weeks into the semester, so says stock analyst C. Leonard Bauer.
Continue reading Is that plane Boeing's 787 or the 7-Late-7 Dreamliner?
Posted Feb 5th 2009 5:10PM by Michael Fowlkes (RSS feed)
Filed under: Earnings Reports, Forecasts, Bad News, From the Boards, Products and Services, Boeing Co (BA), Recession, Financial Crisis

Most companies saw sales weakness in January, and
The Boeing Company (NYSE:
BA) was no exception. As the global economic slowdown continues to drag out, the company saw sharp drops in order for both freight and passenger jets in the month.
The figures are pretty staggering. In January, the company only received order for 18 jetliners. When you compare this with January of last year, when the company had orders for 65 of its planes, you see a year over year decline of 72%.
Continue reading Boeing sees huge drop in jet orders
Posted Feb 5th 2009 10:35AM by Douglas McIntyre (RSS feed)
Filed under: Products and Services, Middle East, Boeing Co (BA)
Boeing (NYSE:BA) delayed the launch of its 787 Dreamliner four times. That certainly allowed some customers to ask for penalties and it even may have allowed some airlines to cancel orders without financial consequences. Boeing has already reported a bad quarter due to weak sales and a worker strike. The recession in air travel and Boeing's tardiness in getting its new aircraft out the door may be about to exact a very large pound of flesh from the U.S. firm.
According to The Wall Street Journal, "A Dubai-based aircraft-leasing company called LCAL -- set up specifically to handle the Boeing 787 Dreamliner -- has decided to cancel 16 of the 21 jetliners it had on order."
Continue reading Boeing's (BA) future gets more bleak
Posted Jan 28th 2009 3:49PM by Joseph Lazzaro (RSS feed)
Filed under: Earnings Reports, Forecasts, Boeing Co (BA)

Talk about a triple-whammy of bad news:
The Boeing Company (NYSE:
BA) announced Wednesday a modest Q4, a workforce reduction, and the cancellation of some 787 orders.
Boeing, quintessential example of American capitalism and innovation,
announced Wednesday (pdf) Q4 EPS of 62 cents, excluding charges, compared with a First Call Q4 earnings consensus estimate of
78 cents per share. Including charges, Boeing lost 8 cents a share in Q4. In Q4 2007, Boeing earned $1.36 per share.
Continue reading Boeing posts modest Q4 on strike, to cut 10,000 jobs in 2009
Posted Jan 16th 2009 6:00PM by Joseph Lazzaro (RSS feed)
Filed under: Boeing Co (BA), Recession
Airbus bested Boeing in deliveries in 2008, but each probably recognizes the primary 'competition' at this juncture of the commercial aviation race is not the rival aerospace company: it's the global recession.
Europe-based
Airbus announced it had delivered 483 aircraft in 2008, up 30 from 2007, and 108 more than Boeing's 375, which was down 66 from 441 delivered in 2007.
Airbus also bested Boeing in net orders for 2008, 777 to 662. The two giants also finished the year statistically equivalent in order backlog, with Airbus boasting a backlog of 3,715 compared to Boeing's 3,714.
For Boeing, a difficult yearStock Analyst C. Leonard Bauer said Boeing had "a trying operational year," hurt by an 8-week machinist strike and further delays in the roll-out of its signature, next-generation plane, the 787 Dreamliner. Had the strike not occurred, Boeing would have approached Airbus in deliveries in 2008 and recorded more than 460 deliveries, he said.
The Boeing Company (NYSE:
BA)'s shares closed Friday up $1.50 to $42.46. Shares of Airbus' parent
EADS closed up 5 euro cents to 12.72 euros.
Further, Boeing also was hurt by additional 787 delivery delays, Bauer said. Boeing pushed back the 787's first flight test to Q2 2009, and its initial delivery to Q1 2010. That amounts to a two-year delivery delay for the next-generation plane that's expected to be 30% less expensive to maintain than comparable aircraft, including substantial fuel efficiency gains.
Continue reading Biggest headwind Boeing, Airbus face these days is the recession
Posted Nov 17th 2008 3:41PM by Joseph Lazzaro (RSS feed)
Filed under: Bad News, Competitive Strategy, Boeing Co (BA)
With the company having reached a tentative, new, 4-year contract agreement with its engineers, it appears Boeing will avoid a second, internecine work stoppage.
What Boeing will not be able to do, however, is avoid a decidedly downward revision in company and stock performance expectations, so says Stock Analyst C. Leonard Bauer.
U.S. business: A difficult decadeBauer, not one to wax philosophic, nevertheless takes a historian's-like view of Boeing's actions -- and the actions of numerous other companies -- in recent years.
"It's as if we decided as a nation to place all of the most idiotic, self-defeating, and economically-damaging business decisions in one decade," Bauer said. "It's as if the whole business community attended the wrong business school."
The Boeing Company's (NYSE:
BA) shares rose 45 cents to $42.51 in Monday afternoon trading.
Continue reading With 787, 747-8 roll-outs delayed, runway getting bumpy for Boeing
Posted Nov 14th 2008 10:30AM by Douglas McIntyre (RSS feed)
Filed under: Employees, Boeing Co (BA)
Boeing (NYSE:BA) made a major tactical mistake by letting its machinists go on strike for weeks. It ended up giving the workers a good contract and, in the meantime, it shut down the company when its back orders for aircraft were at record levels. Of course, that upset a large number of the firm's customers who are waiting for the new fuel-efficient Dreamliner, which will be the new flagship of Boeing's fleet.
Management at Boeing does not seem to have learned a single thing from the last work stoppage and is risking another one that could further undermine its stock price and earnings.
According to The Wall Street Journal, "In an effort to ratchet up pressure on Boeing Co. negotiators, leaders of the union that represents about 21,000 of the company's white-collar engineers and technical workers said they will ask their members to authorize a strike in the event that the two sides are unable to agree on a new labor contract." Current contracts expire on December 1, so there is not much time.
Investors would think that, with such huge revenue coming in from the delivery of new planes over the next several years, that the company would do as much as possible to keep its earnings and credibility up with its largest customers intact. Management would rather get a few extra bucks in labor expense savings.
Maybe that is why Boeing's shares, at $43, are less than 50% of its 52-week high.
Douglas A. McIntyre is an editor at 24/7 Wall St.
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