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.

Options Update: Boeing volatility flat into Dreamliner first flight originally appeared on BloggingStocks on Mon, 14 Dec 2009 08:00:00 EST. Please see our terms for use of feeds.

Continue reading Boeing downgraded by Barclays Capital

Boeing downgraded by Barclays Capital originally appeared on BloggingStocks on Mon, 27 Jul 2009 09:40:00 EST. Please see our terms for use of feeds.

Continue reading Boeing sees huge drop in jet orders

Boeing sees huge drop in jet orders originally appeared on BloggingStocks on Thu, 05 Feb 2009 17:10:00 EST. Please see our terms for use of feeds.

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

Boeing's (BA) future gets more bleak originally appeared on BloggingStocks on Thu, 05 Feb 2009 10:35:00 EST. Please see our terms for use of feeds.

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.

Boeing (BA): Labor trouble, again originally appeared on BloggingStocks on Fri, 14 Nov 2008 10:30:00 EST. Please see our terms for use of feeds.

With its stock down 53% since it announced the first delay in the 787 Dreamliner, it would be an understatement to say that Boeing (NYSE: BA) is going through a rough patch. It has been a month since its 27,000 machinists went on strike and both sides are hurting. Now they are resuming negotiations.

How much pain is this strike creating? Boeing could lose $1.75 billion worth of revenue and take a 13% earnings hit if the strike ends up lasting seven weeks. Meanwhile, machinists -- who average $26 an hour -- are making $3.75 an hour worth of strike pay (assuming a 40 hour week for their $150 a week strike pay packet).

The dispute between Boeing and its machinists appears to be about several issues. But the most important one seems to be that Boeing wants to have the flexibility to outsource work and machinists want to limit that flexibility. I think they should agree to a compromise which would give the machinists a chance to make a proposal to keep work with them if they can do the work well at a competitive price.

Continue reading Boeing (BA) to revive talks with machinists union

Boeing (BA) to revive talks with machinists union originally appeared on BloggingStocks on Thu, 09 Oct 2008 10:50:00 EST. Please see our terms for use of feeds.

The Wall Street Journal reports that Boeing Inc. (NYSE: BA) factory workers who belong to the International Association of Machinists and Aerospace Workers (IAM) have voted to strike by a wide margin. However, thanks to the intervention of a federal mediator, the two sides have 48 hours to try to work something out. I cannot tell whether they will be able to find common ground.

Eighty-seven percent of IAM's "26,800 machinists rejected a proposed three-year contract that would have given members raises and bonuses totaling $34,000," according to the Journal. Boeing offered each union member a $2,500 signing bonus only if "the contract was ratified on the first vote." IAM's decision not to ratify costs workers that bonus. Boeing proposed an "11% pay raise over the life of the contract, as well as boosting pensions by 14% to $80 a month for each year of service. [The contract would pay the average union member] roughly $65,000 a year before overtime that averages $10,000 a year or more," according to the Journal.

IAM wants a bigger raise, more pension contributions, and lower health care payments. As the Journal wrote, IAM wants "pay raises of at least 13% and a larger pension amount. It also wants Boeing to abandon plans to have workers take on a greater share of certain health-care costs."

Continue reading Will Boeing and its workers come to terms in the next 48 hours?

Will Boeing and its workers come to terms in the next 48 hours? originally appeared on BloggingStocks on Thu, 04 Sep 2008 10:33:00 EST. Please see our terms for use of feeds.

Boeing's (BA) earnings soar originally appeared on BloggingStocks on Wed, 23 Apr 2008 08:48:00 EST. Please see our terms for use of feeds.

Boeing (NYSE: BA) - The WSJ reported BA to announce new delays in the 787 Dreamliner Program.

BA is recently down $2.19 to $79.68.

BA February option implied volatility of 34 is above its 26-week average of 28 according to Track Data, suggesting larger risk.

Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Options update 1-15-08: Boeing to announce new delays in 787 Program originally appeared on BloggingStocks on Tue, 15 Jan 2008 15:14:00 EST. Please see our terms for use of feeds.

Bloomberg News reports that Boeing Co. (NYSE: BA) set another sales record in 2007. While it's not yet clear whether Boeing sold more than its competitor, Airbus, the 1,413 commercial jets Boeing sold last year highlight the power of effective competitive strategy.

I'm in the middle of writing a book about Boeing and have found it fascinating to examine the competition between Boeing and Airbus. In the 1990s, Airbus decided that it could beat Boeing by building the biggest jumbo aircraft on the market. By contrast, Boeing -- which was then under pressure from Airbus -- listened to the airlines and heard them say that they were facing competitive pressure from low-cost, point-to-point airlines like Southwest Airlines Co. (NYSE: LUV) -- whose strategy I analyzed in Value Leadership -- and needed mid-range aircraft that were more fuel efficient.

Continue reading Boeing's 2007 orders set new record as Airbus struggles

Boeing's 2007 orders set new record as Airbus struggles originally appeared on BloggingStocks on Fri, 04 Jan 2008 08:50:00 EST. Please see our terms for use of feeds.

Continue reading Boeing says Qantas orders 31 more 737-800s for $2.3 billion

Boeing says Qantas orders 31 more 737-800s for $2.3 billion originally appeared on BloggingStocks on Thu, 20 Dec 2007 19:23:00 EST. Please see our terms for use of feeds.

The Wall Street Journal reports that Boeing (NYSE: BA)'s 787 Dreamliner is being delayed due to its global value chain. This suggests that despite the best efforts of globalization proponents to extol the virtues of a flat world, there are still some mighty big rocks in its path.

Boeing encountered much bigger challenges than anticipated in its efforts to lower the $10 billion cost of developing the 787 by shifting the job to other companies. It mistakenly thought that it would be easy to snap together at its Seattle-area factory a collection of parts designed and built by worldwide suppliers. The resulting delays have affected 19 of the 52 airlines that have ordered the 787, some of which were counting on using their planes during the 2008 Summer Olympics. Boeing could end up paying millions in penalty payments to customers.

The basic problem Boeing faces is that its suppliers -- instead of using their own engineers to do the design work -- outsourced that work to even smaller companies. And in their eagerness to profit from the 787 windfall, overloaded themselves with work from multiple 787 suppliers. In effect, Boeing is now learning that it did not provide strict enough performance goals to its suppliers. And now it's at their mercy.

Continue reading Outsourcing snags ground Boeing's Dreamliner

Outsourcing snags ground Boeing's Dreamliner originally appeared on BloggingStocks on Fri, 07 Dec 2007 16:02:00 EST. Please see our terms for use of feeds.

The Associated Press reports that The Boeing Company (NYSE: BA) has announced that it's delaying the shipment of its 787 Dreamliner from May 2008 to November 2008. The culprit? Unspecified manufacturing problems.

Boeing CEO Jim McNerney was disappointed with new schedule and said, "Notwithstanding the challenges that we are experiencing in bringing forward this game-changing product, we remain confident in the design of the 787, and in the fundamental innovation and technologies that underpin it."

It will be interesting to see how Boeing will be able to meet the new deadline without "materially affect[ing] its earnings or guidance for next year." Meanwhile, with its stock down 3%, the market appears skeptical of this claim.

Peter Cohan is president of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in Boeing.

Boeing (BA) delays Dreamliner by six months, stock slides 3% originally appeared on BloggingStocks on Wed, 10 Oct 2007 15:00:00 EST. Please see our terms for use of feeds.

Boeing (NYSE: BA) announced a six-month delay in its planned initial deliveries of the 787 Dreamliner due to challenges in completing the assembly of the first airplanes. First deliveries are now expected in late November or December of 2008.

• BA says: "The financial impact of the delay would not be material to earnings" and its earning guidance for 2007 and 2008 remained unchanged.
  
• BA will provide a quarterly financial update on 10/24.
  
• BA October option implied volatility is at 28, November is at 30 above its 26-week average of 25 according to Track Data, suggesting larger risk.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Option update: Boeing (BA) volatility elevated as it delays 787 Dreamliner originally appeared on BloggingStocks on Wed, 10 Oct 2007 13:22:00 EST. Please see our terms for use of feeds.

Boeing (NYSE: BA) may be saying that, despite delays in its first flight, the company will deliver its 787 Dreamliner to customers on time next year. But, the company's suppliers are not so sanguine.

According to a Wall Street Journal report: "We looked at each other and said, 'Are they kidding?'" said a senior Boeing supplier who listened in on the conference call in which Boeing broke the news to Wall Street analysts and reporters.

Boeing still has to put hundreds of new parts into the plane. The firm is scheduled to deliver 112 Dreamliners by the end of 2009.

The US company is risking being tagged with the "Airbus' label. The European company has been late getting its newer products off the ground, especially its A 380 super jumbo. The delays have caused customers to migrate to Boeing's latest offerings.

But, what if both companies fall into a cycle of late delivery. For starters, it might allow Airbus to get back into the game with airlines that have been concerned about delivery schedules.

The biggest fallout, however, would be to the efficiency of the global airline industry. New planes are not only more fuel-efficient. but they also do not require the significant overhauls that are needed to keep older models in the air.

In other words, the delays could hurt Boeing's biggest customers.

Douglas A. McIntyre is a partner at 24/7Wallst.com.

Boeing (BA) suppliers voice doubts about 'on time' delivery of Dreamliner originally appeared on BloggingStocks on Mon, 17 Sep 2007 09:58:00 EST. Please see our terms for use of feeds.

Boeing vs. Airbus at the Paris Air Show originally appeared on BloggingStocks on Wed, 20 Jun 2007 14:48:00 EST. Please see our terms for use of feeds.

Boeing 787 Dreamliner orders soaring originally appeared on BloggingStocks on Tue, 24 Apr 2007 12:25:00 EST. Please see our terms for use of feeds.

Boeing boom times, Airbus struggles originally appeared on BloggingStocks on Sat, 10 Mar 2007 12:10:00 EST. Please see our terms for use of feeds.