Cramer's Lightning Round - Boeing Takes a Nosedive (12/4/08)

Stocks discussed in the lightning round session of Jim Cramer’s Mad Money TV program, Thursday December 4.

Bullish Calls:

Teck Cominco (TCK): "If you want to play the mining game, that's probably a good way to go, but it's been rough over there."
Terra Nitrogen (TNH), Celgene (CELG)
ITT Industries (ITT): "ITT is a cheap stock."

Bearish Calls:

Agrium (AGU): “If you're going to buy something in that sector, I would go to Terra Nitrogen for the yield, but I'm not recommending that sector right now."
Medtronic (MDT): “That one has suffered a severe beat down. I think that whole group is in trouble. If I was going there, I'd look at biotech and Celgene.”
Boeing (BA): "Boeing is the most worrisome stock in the Dow right now. I think they have nothing cooking over there, I say sell, sell, sell."

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Comments

[User 253060:]

Cramer better be wrong about BA... One of the last great American manufacturers.

2008 Dec 05 09:00 AM

[oldman:]

I agree, do not sell BA.I have owned since 1978. It is a long term hold in all markets, unless you need to raise cash. Hang tight, this will be one of your best positions in 5 years.

2008 Dec 05 10:01 AM

[Craig-69:]

I don't own any Boeing stock now but I will be buying. I love this analysis’s suggestion like “Sell now that a main manufacturer stock (that in no way will go out of business due to government security) is at its lowest point in years.” His suggestion is a perfect way to lose money.

2008 Dec 05 11:01 AM

[Richard Col...:]

The Dreamliner will be delayed 6 months due to Boeing's strike this year. The unions time has passed and they should be abolished. For that reason Boeing went down today but I think they will start to move up again. I never listen to old news Cramer.

2008 Dec 05 12:56 PM

[BerkeleyBob:]

I bailed on BA a while ago, although it does pay a decent dividend. I think management underestimated the willingness of the machinists to take the pain of a prolonged strike, and their policy of outsourcing guaranteed further erosion of jobs for union members. The Dreamliner will be a technical triumph and a fuel-efficient replacement for an aging airline fleet. On top of BA's most recent announcement of a further 6 month delivery delay and low fuel price and passenger count, I would get back into BA only when there is some good news or positive catalyst. One plus for BA is that is not completely dependent on either the military or civilian market. The latter does not look good, and we don't know what will happen with the new military tanker procurement, except that it will take a long time to generate revenue. Please note that whether you agree or disagree with my post, I am not simply parroting Cramer, but doing as he suggests, doing my own homework.

2008 Dec 05 01:09 PM

[PeteK:]

Cramer is right this time.
Don't you see the shadow of UAW behind those unions of Boeing ?
It's the same blue print as GM.
Unions won't give up until they destroy all big American industries.
Dividend is just a pretence to show the co is OK. They all do that.
Don't underestimate airbus and China's jetliner development, just like you did with Toyota decades ago. Can't ignore history.

2008 Dec 07 11:14 AM

[satyr:]

I don't see an impetus for Boeing to do particularly well over the next year or two, primarily because it will be hard for 99% of companies to do well during a deep recession. What they do have going for them is a strong backlog of orders for commercial jets.

Don't forget that a significant part of Boeing is the defense business. I think that's a wild card right now. The Obama administration undoubtedy will be looking to cut what they can from the military budget, along with winding down operations in Iraq. But will all defense contractors be impacted equally? Remember, Boeing moved its HQ to Chicago a few years ago, while keeping the bulk of its manufacturing operations in the Seattle area. The former is Obama's home state, and the latter is as blue as they get.

Finally, there is some speculation that the machinist union won the battle and lost the war. Many experts anticipate that manufacturing operations will move south to somewhere like Alabama, where they can avoid many of the headaches that the unions have caused over the last several years.

The bottom line here is that in the short run Boeing stock will not set the world on fire. But they will easily survive the current turmoil, and in the long run they should do well and likely outperform the broad market.

2008 Dec 08 03:40 PM

[Norman Lepo...:]

Typical Cramer. Buy BA at 100, sell at 40.

2008 Dec 10 09:13 AM