Continue reading Chasing Value: Looked at Boeing, Then Looked Away

Chasing Value: Looked at Boeing, Then Looked Away originally appeared on BloggingStocks on Mon, 28 Feb 2011 09:40:00 EST. Please see our terms for use of feeds.

Boeing (BA - option chain) stock is trading lower today on conflicting reports about the company's timeline for the debut of its highly-anticipated, but much-delayed 787 Dreamliner. Aviation Week published a report late Friday that the company has told several customers that delivery of its 787 Dreamliner will be delayed by up to 10 months, but Boeing denies this report, saying it intends to meet the current delivery date of Q1 2011. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on BA.

Continue reading Boeing Could Be Facing Even More 787 Delays

Boeing Could Be Facing Even More 787 Delays originally appeared on BloggingStocks on Mon, 08 Nov 2010 13:00:00 EST. Please see our terms for use of feeds.

Boeing Co. (BA) announced Friday that delivery of its 787 Dreamliner is going to be delayed until the middle of Q1 2011. This is disappointing news, but don't let it cloud your outlook on Boeing too much.

Goldman Sachs has Boeing on its conviction buy list and recently raised its earnings-per-share estimates for Q3 from $1.02 to $1.09 and for Q4 from $1.12 to $1.15. Goldman is also maintaining a price target of $84 for the stock, which is 37% higher than Boeing's current price of $61.

Continue reading Boeing Ready to Climb to Cruising Altitutde

Boeing Ready to Climb to Cruising Altitutde originally appeared on BloggingStocks on Fri, 27 Aug 2010 12:30:00 EST. Please see our terms for use of feeds.

Continue reading Boeing Upgraded by Goldman Sachs

Boeing Upgraded by Goldman Sachs originally appeared on BloggingStocks on Mon, 10 May 2010 10:00:00 EST. Please see our terms for use of feeds.

Boeing (BA) hung its future on the Dreamliner, but this messy project has turned into quite a nightmare for stockholders. The next-generation plane is two years late after five delays ... so I'll believe this launch when I see it.

It's tough to trust a company that is this poorly run.

Next: Dog of the Dow #5: Chevron (CVX)

Dog of the Dow #4: Boeing (BA) originally appeared on BloggingStocks on Sat, 12 Dec 2009 13:00:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Stocks move away from dollar & oil (DNDN, FNM, SNSS, IMAX, RX, BA, ERTS)

Closing Bell: Stocks move away from dollar & oil (DNDN, FNM, SNSS, IMAX, RX, BA, ERTS) originally appeared on BloggingStocks on Fri, 11 Dec 2009 16:00:00 EST. Please see our terms for use of feeds.

Continue reading Ray of light: Airlines say travel slump has ended

Ray of light: Airlines say travel slump has ended originally appeared on BloggingStocks on Wed, 09 Dec 2009 17:15:00 EST. Please see our terms for use of feeds.

With Precision Castparts Corp. (NYSE: PCP), as air travel goes, so go the profits, which is why I'm Reiterating my Buy rating for the company, first recommended on April 20, 2009, at a price of $61.92. If you bought PCP in April, you're up an impressive 50%.

Precision is a major maker of jet engine components, and PCP will benefit as engine orders ramp-up in FY2010. By most measures, an industrial bottom is occurring in the U.S. and global economies in Q3/Q4. Hence, rising demand coupled with the need to re-stock inventories of parts bodes well for Precision. The key revenue drivers: 1) emerging market economies that are modernizing their airline fleets and increasing fleet sizes and 2) Boeing's (NYSE: BA) new 787 Dreamliner, which should undergo its first test flight by the end of 2009.

Continue reading Like its parts, Precision Castparts is soaring

Like its parts, Precision Castparts is soaring originally appeared on BloggingStocks on Wed, 04 Nov 2009 09:30:00 EST. Please see our terms for use of feeds.

According to FlightGlobal, Boeing (NYSE: BA) is going to "surge" (a very popular word nowadays) 787 production early in order to meet customer demand. The surge is part of the establishment of the Charleston 787 line. Boeing will use "transitional surge capability" until the second 787 line is on line; this capability will take place at Boeing's current Washington line. As far as the new South Carolina plant, the facility will support the testing and the delivery of the airplanes.

In addition to this news, Boeing received an upgrade from Macquarie Research, as the airliner was elevated to "outperform" from "neutral." Valuation was the main reason for the upgrade, as the brokerage feels that the current pullback may afford a good buying opportunity.

Continue reading Boeing announces more 787s, receives an upgrade

Boeing announces more 787s, receives an upgrade originally appeared on BloggingStocks on Thu, 29 Oct 2009 11:30:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: The good off day (BA, JAVA, SLM, WFC)

Closing Bell: The good off day (BA, JAVA, SLM, WFC) originally appeared on BloggingStocks on Wed, 21 Oct 2009 16:00:00 EST. Please see our terms for use of feeds.

The only really important bit of financial news today was the Reuters/University of Michigan consumer sentiment figure for August. It declined to 63.2 from 66 in May. The consensus among economists polled by MarketWatch was the August's figure would be 69. The portion of the poll called the "expectations index" hit its lowest level since March.

That is particularly bad news because March was the depth of the recession. Analysts were at a loss to explain why the consumer's picture of the economy had turned sour so fast. It is certainly a sign a rebound in spending may be well off in the future, which could be bad news for the upcoming holiday season.

Today's unofficial closing numbers:

Dow 9,321.40 -76.79 (-0.82%)
S&P 500 1,004.09 -8.64 (-0.85%)
Nasdaq 1,985.52 -23.83 (-1.19%)

Continue reading Closing bell: The consumer's retreat takes Wall Street down (BBI, BA)

Closing bell: The consumer's retreat takes Wall Street down (BBI, BA) originally appeared on BloggingStocks on Fri, 14 Aug 2009 16:04:00 EST. Please see our terms for use of feeds.

Last fall, Boeing's 27,000 machinists went on strike for 52 days. Not surprisingly, this put a crimp in Boeing's ability to meet its production schedule. Until today, it was hard to know just how much damage that strike did. Now we know that Boeing's 2008 aircraft deliveries dropped 15% thanks to the strike. But big questions remain for investors.

The numbers are not pretty. Boeing delivered 375 commercial planes in 2008, 15% fewer than the 441 it delivered in 2007. Prior to the strike, in early 2008, expectations for the year ranged from 475 to 480. But Boeing fell far short. Boeing finished 2008 with 662 commercial airplane orders, bringing its total backlog of unfilled orders to over 3,700. But the 2008 figure was less than half 2007's record order amount.

Meanwhile, Boeing's 787 Dreamliner -- which accounts for 900 aircraft in that backlog -- is about two years behind schedule. The 787's delays are taking engineers away from other projects, such as the one to update its 747 jumbo jet, which has now been delayed nine months. Despite all this bad news, we still don't know how much these delays will cost Boeing in lost revenues and profits. And it remains to be seen whether the fourth 787 production delay will be its last.

Continue reading Strike leads to 15% drop in Boeing's 2008 deliveries

Strike leads to 15% drop in Boeing's 2008 deliveries originally appeared on BloggingStocks on Thu, 08 Jan 2009 15:45:00 EST. Please see our terms for use of feeds.

The Boeing Company (NYSE: BA) has announced its fourth delay in delivering its first of nearly 900 unit order backlog of its 787 Dreamliner from the original May 2008 to the current first quarter 2010. After parts problems and an eight week machinists strike, this does not come as a surprise but many customers are probably wondering whether there will be more delays in the future. Unfortunately, it is unclear whether Boeing has learned enough from these delays to keep them from happening in the future.

If a study by Boeing competitor, Airbus, is to be believed, the 787 has been plagued by a wide range of management problems. The study suggests that when Boeing outsourced a significant portion of the 787's design and assembly integration, it failed in overseeing those partners. Airbus's study suggests that Boeing should have known about the following six problems:

• Its partners' factory workers lacked the skill to do their jobs - The study claims that these workers were "low-wage, trained-on-the-job workers that had no previous aerospace experience."
• Some of its partners lacked design staff - The study claims that one of its partners, Vought, "had no engineering department when selected" by Boeing.
• Some of its suppliers could not produce enough parts - The study claims there was "insufficient supply of frame, clips brackets and floor beams."

Continue reading Is Boeing's fourth 787 delay its last?

Is Boeing's fourth 787 delay its last? originally appeared on BloggingStocks on Thu, 11 Dec 2008 11:56:00 EST. Please see our terms for use of feeds.

The Boeing Company (NYSE: BA) has had significant problems meeting its schedule to deliver its new 787 Dreamliner. It has a nearly 900 aircraft backlog but it has delayed the delivery three times already. Now it looks poised to announce a fourth one -- as long as six months. This is making customers frustrated and is likely to cost shareholders.

The 787's delays have resulted from a variety of problems. The most significant was that Boeing outsourced some 70% of the design and manufacture of the 787 to suppliers around the world -- with the idea of snapping the pieces together in Washington state when the components were ready. But Boeing did not monitor the suppliers closely enough so it was surprised when some of them did not meet their production schedules.

Meanwhile, the strike by its machinists union has delayed by 10 weeks the delivery dates of the 3,734 jetliners in its order book. But the 787 is running into other problems such as still fixing bugs in the software that runs its systems, from the electric brakes to cockpit instruments. And with customers being frustrated by the missed delivery dates, Boeing is struggling with how much slack to build into the schedule so it can give them a truly firm date.

Continue reading Will Boeing delay Dreamliner six more months?

Will Boeing delay Dreamliner six more months? originally appeared on BloggingStocks on Fri, 05 Dec 2008 09:27:00 EST. Please see our terms for use of feeds.

Boeing (NYSE: BA) settled its seven-week old strike with machinists agreeing to a four-year contract. In the meantime, the company has lost precious time building planes including its Dreamliner, which is already over a year late for its first delivery. World airlines that have ordered the new aircraft are already in a snit.

According to The Wall Street Journal, "During the standoff, both sides dug in over issues such as job security and who had ultimate authority to run the factories, even as the national economy was undergoing a major upheaval." In other words, Boeing undercut the value of its shares when it could have settled on a similar deal a month ago. During most negotiations management knows how far it is willing to go, but holds out hoping labor will back down. In this case, that did not happen.

While Boeing management has been fiddling around, the company's stock has dropped to $42, near a 52-week low, and down from a period high of almost $99. Boeing faces angry customers, many of whom are asking for compensation for planes that will be late.

Boeing let labor shut it down while the economy went to hell in a hand-basket and its rival Airbus took whatever advantage of that it could. Boeing has a huge back-order of planes. Giving into the union would not have cost it much in profits. It has too many sales to fulfill.

Douglas A. McIntyre is an editor at 247wallst.com.

Boeing settles strike too late originally appeared on BloggingStocks on Tue, 28 Oct 2008 07:30:00 EST. Please see our terms for use of feeds.

Since its stock peaked in September 2007 at $105, Boeing Inc. (NYSE: BA) has lost 59% of its value. It has misfired on multiple fronts: it was unable to meet its original delivery schedule for a new aircraft, the 787; it lost a $35 billion bid to build an airborne refueling tanker which was canceled due to irregularities and is scheduled to be rebid next year; and it's suffering through a strike of its 27,000-member machinists union that began in early September.

Today Boeing announced a big decline in earnings. Specifically, Boeing net income dropped 38% to 96 cents a share -- two cents below analysts' expectations. And its revenues fell 7% to $15.29 billion, slightly higher than the $14.61 billion analysts had expected. The strike has delayed deliveries significantly. Without the strike, Boeing would have shipped 119 planes during the quarter, but ended up with 35 fewer than planned.

Are Boeing's woes at their bottom? It is scheduled to go back to the negotiating table tomorrow, but it is unclear whether either side will budge. Meanwhile, Boeing had expected to start delivering its 787 in the third quarter of 2009; however, meeting that deadline now appears uncertain. Boeing stock is down 7.8% today, suggesting that analysts are deeply disappointed.

Continue reading Has Boeing (BA) bottomed out?

Has Boeing (BA) bottomed out? originally appeared on BloggingStocks on Wed, 22 Oct 2008 12:25:00 EST. Please see our terms for use of feeds.

It is hard to do business, make sales, and drive profits when your company is shut down by a strike. It also aids the competition.

Boeing Co. (NYSE: BA) is finding that out the hard way. According to Bloomberg, "Airbus SAS, starting its first aircraft assembly today outside Europe, said it may buy up to $1 billion of components from China by 2020, as the world's most populous nation may need 3,000 planes in the next 20 years."

By putting a plant inside China and offering to put money into the economy, Airbus is making best friends with the central government, a move that is almost certain to garner significant orders from the nation's commercial airlines.

Boeing management made a huge mistake by allowing its machinists to go out on strike instead of improving their compensation packages enough to keep the company operating. Boeing said that its margins could be hurt by the size of the deal the union wanted. The machinists knew better. They could see the size of the Boeing back-orders for products like the new Dreamliner going out for years and year driving higher and higher sales.

Each day that the strike goes on, Boeing risks losing more customers to Airbus. Management has not done the shareholders any favors.

Douglas A. McIntyre is an editor at 247wallst.com.

Airbus gets a leg up on Boeing originally appeared on BloggingStocks on Sun, 28 Sep 2008 10:40:00 EST. Please see our terms for use of feeds.

The fight between Boeing (NYSE: BA) and its machinists may go on a long, long time. While that may be bad for the union, it is much worse for Boeing. Its customers expect prompt delivery of fuel-efficient planes, especially the new Dreamliner. Boeing's management gambled on getting the union to knuckle under and lost.

According to The Wall Street Journal, "As far as our members are concerned, we are in this one for the long haul," said Mark Blondin, aerospace coordinator and lead negotiator for the 26,800 machinists. The statement does not sound conciliatory.

Shareholders are getting the worst of it. Boeing trades at about $57, down from a 52-week high over over $107. With delivery delays, revenue is certain to drop.

Boeing's case with the unions is weak. The company claims it cannot give machinists a good three-year deal because earnings may not be strong that far out. With the company's tremendous backlog, it would be hard to imagine that being true.

Boeing's management will not be remembered well by history. They thought they had leverage in a situation where they had almost none.

Douglas A. McIntyre is an editor at 24/7 Wall St.

Boeing now regretting strike originally appeared on BloggingStocks on Thu, 25 Sep 2008 09:54:00 EST. Please see our terms for use of feeds.

Boeing (NYSE: BA) has been gambling that its machinist union would back down from further wage and benefit demands. Instead, according to The Wall Street Journal, the aircraft company's largest labor union "voted to strike Wednesday night, but the union agreed to postpone a walkout for 48 hours after federal mediators urged both sides to return to the bargaining table."

If the employees walk, the delays in delivering the company's new Dreamliner flagship product could be pushed back again. The launch has already been postponed three times. Airline customers are mad enough that some are asking for compensation because Boeing has not hit its schedules.

Boeing's argument is that it cannot be saddled with high future labor costs. If its business slows down, its margins could be hurt. But the union members can read Boeing press releases. The company has a substantial back order of planes which should feed earnings for the next decade. Boeing is also saying that growth in the Chinese market could help support its business for the next twenty years.

Boeing can afford to pay the union members a bit more. It can't afford a strike.

Douglas A. McIntyre is an editor at 24/7 Wall St.

Boeing union votes to strike -- management's mistake originally appeared on BloggingStocks on Thu, 04 Sep 2008 08:30:00 EST. Please see our terms for use of feeds.

Boeing (NYSE: BA) has been furiously negotiating with its machinist's union to avoid a strike vote by them that could come as early as September 3. Labor's greatest concerns is that Boeing has made a lot of money over the past several years, and workers have seen very little benefit from that.

According to Bloomberg, "The union says workers haven't had raises, except for cost-of-living increases, since 2004 and deserve to share in Boeing's $10.7 billion in profit since then." Boeing is taking the standard large company position: It cannot afford to sharply increase benefits without putting itself in jeopardy if its business slows.

Boeing might want to sharpen its pencil. A strike could cost it another delay for the launch of its new Dreamliner. It has already pushed back that date three times. Airline customers are so upset that some of them have asked for compensation. More delays could up the request for "damages" from carriers who still need the more fuel-efficient airplane.

The winner in a Boeing strike will probably be Airbus. It has had delays of some of its own products, including its huge A380 jumbo jet. But, most of those issues seem to be behind the European company. If Boeing can't deliver planes, Airbus can pick up market share.

Douglas A. McIntyre is an editor at 247wallst.com.

A strike at Boeing? An advantage for Airbus originally appeared on BloggingStocks on Sat, 23 Aug 2008 11:40:00 EST. Please see our terms for use of feeds.