The Boeing Company BA

Orders are great but deliveries are better! 787’s are slowly being delivered and production is picking up! The path to positive cash flow is already established…..catalyst! Paying down debt……catalyst! Any word on China taking deliveries is an instant 25% jump overnight …….catalyst! increasing production to 35+ planes per month……catalyst!

New China stimulus issued. Policies beginning to pivot to support for their economy. China reopening is inevitable and they know they will have to re-certify the 737 to handle potential travel demand. Could happen anytime! BA should begin the climb to $200 and after China announcement easily 25% upside from there!

1. TSA daily numbers are 95% 2019 levels -it’s back folks!

2. 787 approved by FAA……many already built and ready for delivery = cash flow solved!

3. New orders outpacing Airbus for more fuel efficient planes

4. Stock trading at 2018 levels = dirt cheap!

5. Future order backlog of 500+ planes

The narrative has changed!!!!!!

The global pandemic is the cause of all our supply chain / inflation ills!

If China approves 737 to fly that signals Chinese airlines to take delivery of 100+ planes sitting in inventory. That’s immediately a $10+ billion injection which can happen any day. Why would Chinese airlines go through the trouble of “test flights” if there’s no chance of recertification? It’s always baby steps with CAAC. Their economy is in free fall due to their covid policy so changing strategy is inevitable. Risk reward for BA stock is overwhelmingly positive

Consider this: @$160 BA is trading at 2016 levels. Since then the stock moved to $440 then held $350 AFTER both crashes in 2019. The pandemic dropped it to the $80 level in fear of bankruptcy. Now, 737 & 787 are re-certified and tsa daily travel numbers are 90% of 2019 levels. This means we’re nearly back to “operating” at similar levels to when the stock was $300+. Remember, the stock held 350 AFTER China grounded the 737 max!

Consider this: @$158 this stock is the same price it was in 2020 when 737 was grounded around the world and cancellations for hundreds of planes were announced. Since then, 737 has been re-certified in all countries (except for China) and has received orders for 500+ planes overcoming cancellations. Many 787’s are already built and basically ready for delivery. They’ve only delivered 2 but deliveries will pick up improving cash flow. Even without China this stock should be $200.

I’ve been in for 2 years. Same narrative that keeps investors thinking there’s upside around the corner. I remember a report a year ago about China clearing the 737 as safe to fly. Calhoun said it would get certified last summer, then by end of the year, then early 2022 etc. Same thing occurred with 787.. The board had to know what the timetable was and strung investors along to keep the stock price from cratering. Now nobody cares about new report of China being ready to receive deliveries. However, with 787 approved so to will cash flow. Therefore, the stock finally has support (albeit at a low price). Once word comes directly from China (not from a Boeing employee) the stock will get back to $250…..not before

Any day now the 737 MAX will see the light of day in China!

Hahaha ???????
Crashed