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Citigroup sees some compelling reasons to buy Boeing (BA +1%) at current levels, saying its...

Citigroup sees some compelling reasons to buy Boeing (BA +1%) at current levels, saying its December board meeting should produce a 20% dividend hike and a $2B-plus share repurchase program. The firm reiterates its Buy rating with an $89 price target.
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Comments (3)
  • thomas85225
    , contributor
    Comments (563) | Send Message
     
    Buy Boeing?
    The stock has fallen from $104 dollars a share 4 years ago to 70.83 today
    Boeing orders and delivery for 2013 has been poor
    The military budget cut will take effect on 1-2013 what will Boeing stock be worth on 2-2013 ?
    Boeing has ready gone over budget on the kc-46 tanker and none has been build
    The 737 MAX will not be readily still 2017 after the A320NEO.
    the 777-X will not be readily to the end of century after the A350

     

    Qantas has canceled their orders for 787-9, The Sydney-based company booked a net loss for the year to June 30 of $245m, compared to a $250m profit a year earlier.
    American airline has filed for bankruptcy
    Southwest is delaying its orders of 30 737 aircraft for four years to conserve capital, Southwest loss $18 million, Southwest blamed the $478 million increase on fuel costs compared to the same quarter last year
    Delta airline and other have delay or cancelled their order for aircrafts for several years (2020) Richard Anderson, CEO of the world’s biggest airline in terms of fleet size, is more focused on reliable aircraft performance than fuel economy and more on flight frequency than aircraft size.
    http://bit.ly/SSnhmm

     

    The latest wind tunnel testing of the 737 show that the 737MAX will required a lot more modification, to meet the fuel burn required!

     

    The 747-8 is two years late 2.4 billion over budget and overweight Boeing has take 111 orders with only 5 new orders from china which are a reorders from China cancellation their 24 787
    Boeing lost a major customer for its new 787 on Tuesday, with China Eastern Airlines canceling its order for 24 of the long-delayed planes after saying it has waited long enough.

     

    http://usat.ly/OsfMzZ

     

    The 787-8 has been well document in the press with all its problems over the last 4 years
    Japan's All Nippon Airways grounded part of its fleet of 787 Dreamliners after tests revealed a risk of engine corrosion,
    http://reut.rs/Q3JXd5

     

    Boeing and All Nippon Airways are investigating a landing gear problem on the 787 Dreamliner, the first technical glitch reported since the new jetliner entered service

     

    http://reut.rs/OsfMA0.

     

    The 787 has had the following problems: Engines, overweight’s, wind box, fasteners, shims, the mountain of engineering changes that was dump into the vendor after the design was release by the Boeing Engineering Change Board , the lack of a train workforce, leadership and management
    the weight of the 787-8 is still an issue with the current production block still at about 4 tones overweight according to Aspire's sources.
    http://bit.ly/Q3JXd8

     

    How many performance shortfall checks is Boeing now writing for the 787-8 not meet perform guarantee?
    Of the first 70 787-8 build 55 had to rework and several are still park on the runway in Everett
    The first 40 787-8 cost Boeing 32 billion and Boeing is writing late fee checks to the airlines
    Boeing must sell 1100 787 aircrafts to break even which will take 10-20 years
    http://bit.ly/SYyEss

     

    Boeing has taken 850 orders (and now has 114 cancelation) before Boeing had the capability of assembly 10 787 aircrafts per month
    On 11 January 2006, Air India announced an order for 68 jets - 8 Boeing 777-200LR 15 Boeing 777-300ER,18 Boeing 737-800 and 27 Boeing 787-8 .
    India has had take delivery of their military aircrafts alone with Air bus and Boeing 777 except for their 24 787 that where schedule for the fall of 2008
    Boeing is now writing late fee checks to the airlines
    The only way that Boeing could bring the 787 market was to make it’s a Risk shaving program and off load the building of the aircraft into suppler see Manufacturing and suppliers, Boeing had only plan to using 800-1200 employee final assembly and delivery
    http://bit.ly/Q3JXtm...
    Boeing has been off loading aircraft since 1956 with kc-135, 747 in the 1960’s, 757,767 in 1972, 777 in 1990, 737NG in 2005, 787 in 2003
    Someone has claim, building commercial aircraft form composite is the best way to build aircraft, but this a slow process requiring a climate control factory, clean room, several auto clays, several composite machine and highly skill workforce, but a composite aircraft need a metal grounding system that add weight, Military aircraft like the Northrop F/A-18, F-35, B-2, McDonnell F-15, Lockheed F-22 & F-35 and the A-350 commercial aircraft attach composite panels to a metal frame this method save time, allow the panels to be repairable.
    Boeing is now claiming its building 5 787-8 per month!
    Boeing has delivery 29 787 this year’s 29 divide by 10 month= 2.9 aircraft per month
    The profit from 29 787-8 is not go to pay off the Billions that Boeing and the partners has invested into the 787-8 program! Alone with the 747-8 and the 737 MAX, 787-9 -10, and the 777-X yet to come !
    Qantas has canceled their orders for 787-9, http://bit.ly/OsfMA2

     

    May be Boeing will learn its lesson before is start the 777-X and build the 777-X from hybrid or upgraded metallic alloys aluminum in place of spinning and baking composite in the case of the 787

     

    http://bit.ly/Q3JVBT
    Of the first 70 787-8 build 55 had to rework and several are still park on the runway
    The first 40 cost Boeing 32 billion and Boeing is writing late fee checks to the airline
    The 747-8 is two years late 2.4 billion over budget and over weight
    Boeing must sell 1100 aircrafts to break even which will take 10-20 years
    http://bit.ly/SYyEss
    Boeing has taken 850 orders (and now has 114 cancelation) before Boeing had the capability of assembly 10 aircrafts per month
    Air India order 111 aircraft from Boeing and Airbus, Air India had take delivery of their military aircrafts , Air bus and Boeing 777 except for their 27 787 that where schedule for the fall of 2008
    The only way that Boeing could bring the 787 market was to make it’s a Risk shaving program and off load the building of the aircraft parts into suppler see Manufacturing and suppliers
    South Caroline tax payer give Vought 860 million in tax break to build the 787 plant
    http://bit.ly/PXuElX

     

    Boeing has been off loading aircraft since 1956 with kc-135, 747 in the 1960’s, 757,767 in 1972, 777 in 1990, 737NG in 2005, 787 in 2003
    Someone has claim, building commercial aircraft form composite is the best way to build aircraft
    But this a slow process requiring Factory Controls factor, clean room, several auto clays, several composite machine and highly skill workforce
    But a composite aircraft need a metal grounding system that add weight, Military aircraft like the Northrop F/A-18, F-35, B-2, McDonnell F-15, Lockheed F-22 & F-35 and commercial aircraft the airbus A-350 that attach composite panels to a metal frame this method save time, allow the panels to be repairable.
    But Boeing problem date back to 1996
    http://buswk.co/OsfKIm
    http://bit.ly/Q3JVC1
    May be Boeing will learn its lesson before is start the 777-X and build the 777-X
    http://bit.ly/Q3JVBT
    Buy Boeing stock see
    http://bit.ly/Q3JXtw
    11 Oct 2012, 11:42 PM Reply Like
  • thomas85225
    , contributor
    Comments (563) | Send Message
     
    40 years ago Boeing became a Multination Corporation
    (that before Harry Stonecipher joins the company, Harry was from GE same as James McNerney and other Boeing board of directors (Not MDC)
    Since the end of the 707,727, 737 classic, 70% of Boeing commercial has been off loaded into 70 countries and 25 states (that before MDC)
    during that time Boeing has become vulnerable to a takeover, the infrastructure of Boeing, land alone with its holding, made Boeing vulnerable to a takeover, in 1987 T. Boone Pickens, try !

     

    The 787 is not the first program to be outsourced! The KC-135A in 1956, 747 in 1960’s, 757 &767 in 1972, 777 in 1990 and 787 in 2003
    In 1996 Boeing bought North American Aviation from Rockwell
    1997 Boeing merger with McDonnell Douglas (and torn down Long Beach and bankruptcy Sea Lunch)
    2000 bought a few divisions from Hughes
    2002 after torn down most of Renton right after the earth quick
    2005 sold the 737 commercial division in Kansas to Oxen of Canada aka Spirit AeroSystems
    2005 move the passenger to freighter mod center to China
    2005 Boeing has sold other plant in Oklahoma to Triumph Aerostructures and Spirit AeroSystems, now build parts for both Airbus and Boeing
    Boeing no longer build aircraft, Boeing is only a competition center that assemble aircraft
    The 787 tail fin is moving to Utah
    http://bit.ly/RfaS6F
    When Allen Mulally suggest the 787 to Boeing, The Boeing Board of Directors limited the funding of 787 that Allen Mulally could used to build the 787 program
    The 787 would be outsource as a Risk Sharing program, where the vendor and supplier would design the parts, build the parts , provide all the tooling and the building, obtain the FAA Certification at their expense and delivery the finish product to Boeing ( like a landing gears, engines, black boxes) saving Boeing Billions, Vought build the plant in south Caroline and the south Caroline tax payer given 860 million in tax break to Vought Japanese industrial participation was very important to the project, with a 35% work share, the first time Japanese firms had taken a lead role in mass production of Boeing airliner wings, and many of the subcontractors supported and funded by the Japanese government. On April 26, 2006, Japanese manufacturer Toray Industries and Boeing announced a production agreement involving US$6 billion worth of carbon fiber, extending a 2004 contract and aimed at easing production concerns.[
    see Manufacturing and suppliers at

     

    http://bit.ly/PXuElX

     

    http://bit.ly/RfaSmX

     

    (Note the 787 complex would not fit into Everett, South Caroline site sit on two 240 acres site,
    (plus Boeing has 380 acres of land across the road from the existing complex of land that yet to be develop
    (Boeing is expanding the south Caroline again by 63%) plus all the supplies in Japan, Kansas and Italy ect , Boeing has yet to build 10 787 a month.
    In the past Boeing has outsource the building of the aircraft section of commercial aircraft , but it was always Boeing drawing, Boeing Spec like the 747 super panel that where build by Northrop , it was Boeing design, Spec and Boeing on site Rep, QA, inspector overseeing the program
    In the mild 1990’s Boeing has become one of the largest (commercial, military, space) corporation with all its acquisition, but in reality Boeing has become a Corporate Raider destroying its own infrastructure, and American aerospace company and off loading 70% of its manufacturing into 70 countries like Japan, China, India
    Boeing has bankruptcy the Sea Lunch program, shutting down the space shuttle program; selling off manucfacting capacity. Boeing has 31 government contact violation and the tankers scandal where Boeing had paid off Darleen Druyun to win contact like the kc-46
    11 Oct 2012, 11:52 PM Reply Like
  • GarryGR
    , contributor
    Comments (207) | Send Message
     
    Ah, thomas85225, I see you still have that short position on Boeing, eh; so, how short are you; HOW LOW CAN YOU GO?! :)
    17 Oct 2012, 02:28 PM Reply Like
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