BA delivering more 787’s but not one peep from the media! One 787 delivery is similar to delivering five 737’s people! Next earnings report is next month and will show a huge bump in revenue!
rcloud1976
Posts
-
-
TSA passes 2019 levels yet media’s not talking about the fact they did it with less flights and fewer pilots! TSA isn’t a measure of airline pricing which demonstrates the DEMAND for travel is higher than ever!
-
Just an old Greek, BA already reported ramping production to 31 per month. They also have 300+ planes in inventory so delivering those while ramping production says a lot about demand!
BA needs to take a stand with China after the deal they made with Airbus. If Calhoun had any balls he’d tell them the inventory of 130 planes on hold for China will go to India or whoever else wants them. There shouldn’t be any assembly line excuses when BA has 300+ planes sitting in inventory! -
BA is being held hostage by the US, China and the Fed. US not willing to approve of 737 max 10, China won’t recertify 737 max and s&p still trading at a high forward multiple.
Unfortunately, there’s no catalyst until
- Inflation trends meaningfully lower
- Job market slows
- Democrats get slaughtered in midterms
-
the reason for today’s negative market action is the US requiring NVIDIA to obtain a license to sell certain high end chips to China. Essentially forming another barrier on the trade war. Some chip stocks are now trading below the June low. This is negative for BA since it adds more political pressure…..delaying if not removing hopes for China recertification anytime soon
-
Btw this administration sucks
-
2 days ago this literally spiked back to $169. Sentiment can change on a dime….if S&P holds 3900 and job report comes in soft tomorrow BA could snap right back. If not, we’re looking at a June low retest. 787 Deliveries are happening now so BA investors shouldn’t panic!
-
New US ban for NVDIA to apply for license to supply chips to China is bad news for the market. Trade war 2.0 has begun and will take everything down regardless of China exposure. Probably bad news on China recertification. Damn shame…..the Democrats must know they have zero chance at winning in November
-
Keep in mind a China recertification expedites all timelines for production ramps and deliveries for BA. BA would immediately deliver about 100 737 maxes, and pay down a huge chunk of debt. If this were to occur we’re looking at a $300 stock
-
BA has (100) 787’s in inventory ready for delivery. The smallest model 787-8 sells for $250 million. That means Boeing has a minimum of $25 billion worth of 787’s. They also have 200+ 737 max’s which total $20 billion. Altogether, that’s $45 billion in inventory which when unloaded wipes out all BA’s current Debt.
BA is now producing 31 planes per month and delivering around 45. That means BA’s delivering 14 planes per month from inventory. At this pace, BA will deliver around 150 planes per year (from inventory) which puts BA on target to unload inventory and pay off all debt by 2024. In an average market this would value BA stock at $250. With China recertification easily $300+ -
Good observations Baywatcher! I would add that in addition to averaging 31 planes per month BA still has over 300 planes in inventory (waiting to be delivered). I believe (130) 737 max’s are on hold for Chinese customers, but what about the other 170?
On average 300 planes made up of a mix of 737 max’s and handful of 787’s equals a total value of around $35 billion. Unloading this inventory will nearly eliminate all their debt.
Why isn’t BA delivering planes from inventory at a faster pace? It makes more sense to deliver planes from inventory and keep costs down and reduce debt at the same time!
-
In Feb-March of 2021 BA popped to $278 on recertification of 737 max and new orders. The 737 was still grounded in China so the situation is virtually the same! Since then BA has received orders for 500+ planes so the situation is even better. China news lingers, but IF it happens the stock will blow past $200 directly to $300!
-
Taiwan buying (16) 878’s is HUGE NEWS! This is a new order people….other new orders for 787’s will continue to be announced. American Airlines reported to place an order for 100+ planes soon. CNBC’s lack of reporting is to be expected. If this was Rivian or Tesla making a deal for billions of revenue the stocks would be up 5-10%
-
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!
-
-
TSA daily numbers are 95% 2019 levels -it’s back folks!
-
787 approved by FAA……many already built and ready for delivery = cash flow solved!
-
New orders outpacing Airbus for more fuel efficient planes
-
Stock trading at 2018 levels = dirt cheap!
-
Future order backlog of 500+ planes
The narrative has changed!!!!!!
-
-
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
BA
BA
BA
BA
BA
BA
BA
BA
BA
BA
BA
BA
BA
BA
BA
BA
BA
BA
BA
BA