Boeing's stock might be safe in the long term but expect some turbulence

No average person, including myself, has any business buying and selling individual stocks. Bad idea.

But for those who cannot help themselves – me included – let’s talk about whether anyone should buy Boeing stock.

The aircraft maker’s shares have been pummeled since the March 10 crash of one of its most profitable lines, the 737 Max 8. It was the second crash of a 737 in less than five months.

Investors started selling Monday morning after the Ethiopian Airlines flight killed all 157 on board.


Boeing’s stock takes a hit as more Max planes are grounded
Regulators challenge Boeing to prove Max jets are safe
Staggering cost of grounding the Max fleet

The stock dropped nearly 13 per cent in trading since the crash. That’s a lot, when you consider that a 1 per cent daily stock bump up or down can be newsworthy.

Thanks in no small part to the 737, Boeing has been one of the success stories of the 10-year old bull market. Shares had been up more than 1,000 per cent – a Buffett-like 28 per cent annual return – compared with a 315 per cent increase of the Standard & Poor’s 500 index, according to Howard Silverblatt of S&P Dow Jones Indices.

“It’s been a huge success story,” Silverblatt said.

Revenue is up. Profits are up. There’s a mountain of orders for the 737 Max that could keep Boeing busy making airplanes probably the rest of my lifetime.

Then came the Indonesian and Ethiopian tragedies.

The company has taken a reputational hit and will surely receive an as-yet undetermined financial hit.

I puzzled my way through the onslaught of bad news this week to answer my own questions over whether Boeing was a good company whose stock was on

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