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GarryGR

GarryGR
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  • Boeing may furlough defense, space, and security workers: Bloomberg [View news story]
    Hey, for the harshest criticism of some in the Tea Party wing of the Republican party, listen to fellow Republicans and conservative commentators. Caught Larry Kudlow today, on the radio; man was he tearing into them for daring to consider not raising the debt ceiling! :-) Many Republicans believe that they are driving the party to a disaster in the 2014 elections.

    Having gone through two economic crashes in one decade, it just crazy that we could have another totally unnecessary one; a self-inflicted one! ;-(
    Oct 13, 2013. 04:09 AM | 1 Like Like |Link to Comment
  • Leaving On A Jet Plane? Airbus Vs. Boeing [View article]
    Reminds me of the recent 777 crash in San Francisco where the pilots set the speed they wanted the plane to maintain, into the computers, but then neglected to turn "both" Auto Throttle switches on and then failed to notice that they were essentially gliding, until it was too late to recover.
    Oct 8, 2013. 04:21 AM | 1 Like Like |Link to Comment
  • Japan Airlines to buy 31 A350 jets in deal worth $9.5B [View news story]
    The Boeing 10/month 787 production rate projection date was always for the end of this year, 2013. But, according McNerney, as reported in this article, Boeing has already reached 10/month: “Boeing hits goal of 10 787 Dreamliners a month, CEO says – The Post and Courier. Fragments from that article: “Buyers of the 787 Dreamliner are clamoring for plane maker Boeing Co. to pick up the pace. So said CEO Jim McNerney on Monday, offering the strongest hint yet that the production rate for the airplane will almost certainly exceed the long-stated goal of 10 jets per month by the end of 2013” . . . . Boeing is making 10 Dreamliners a month right now, he added. “We’re already doing it in our factories ... and our suppliers’ factories ... so we’re pretty much there,” he said”. It does not sound like Boeing is having problems meeting the 10/month production rate and even higher than that, soon.

    Some seem to be just assuming that Airbus will have no problems with the A350, although even if all goes as planned, Airbus expects production to be at 4 / month by the end of next year, 2014, i.e. the beginning of 2015. I haven’t seen any A350 production rate estimates beyond that, but it’s obvious that it’ll be some time before the A350 will be in mass production, even if all goes well with that program. Unless Airbus had some earlier slots reserved, JAL will not be seeing any of those A350s for a number of years and a lot can happen between now and then.

    Airbus does appear to be making a concerted effort to transition from a skilled workforce jobs creator to a profitable corporation, something they've not been very good at in the past. Their stock price and PE indicates the Market is expecting that also. Time will tell.
    Oct 7, 2013. 07:19 PM | Likes Like |Link to Comment
  • Boeing boosts aircraft deliveries [View news story]
    The business press pays a lot of attention to the order numbers, especially since Airbus made it their top priority to beat Boeing, in the yearly orders race. But aircraft orders are not what one might commonly think of orders, i.e. that an order is a sale. For example, in the decade leading up to 2012, Airbus won that orders race 9 out of ten times but then in 2012, Boeing delivered more planes than Airbus did. Also, if you compared the yearly financial numbers to the order numbers, you would've seen another disconnect. It's not hard to see that for the aircraft order numbers to be meaningful, we need more info, like when are the ordered planes scheduled to be delivered, e.g. I'd love to see a table showing how many planes were scheduled to be delivered each year and how many were actually delivered, based on the order numbers. I think it would show just how misleading those order numbers can be.
    Oct 5, 2013. 04:16 AM | Likes Like |Link to Comment
  • Norwegian Air removes Dreamliner from service, says reliability unacceptable [View news story]
    Despite their problems with the 787, they're expecting to order more of them. "I believe that the 787 is an incredibly good aircraft," Kjos said in an interview. "It's even better on performance than we anticipated, the fuel burn is lower." "I feel we have been extra unlucky," he said. (http://bit.ly/15M31EK)
    Oct 2, 2013. 03:34 PM | Likes Like |Link to Comment
  • Norwegian Air removes Dreamliner from service, says reliability unacceptable [View news story]
    Every 787 problem hits the news but without knowing how frequently planes have problems, in general, one can not know the context, i.e. how the 787 compares to other planes. I fly infrequently but have had a number of times where my flight was delayed or even cancelled, due to problems with an aircraft. Never saw a story about any of those incidents in the press! ;-)
    Sep 30, 2013. 05:15 AM | Likes Like |Link to Comment
  • Stifel raises target on Boeing amid strong commercial demand [View news story]
    Maybe the market was slow to react, but this was reported by Bloomberg early yesterday, on September 24th: "Boeing Spurned as South Korea Plans New Tender for Jet Fighters By Sam Kim & Julie Johnsson - Sep 24, 2013 7:42 AM PT". And still, Boeing stock had a good day yesterday and has held up well, with another analyst raising his estimate. While the Defense portion of Boeing's revenue is certainly not insignificant, the analysts/firms raising their estimates for Boeing stock are primarily citing the commercial aircraft division for a basis of their estimates while not expecting much upside, if any, from the defense division.
    Sep 25, 2013. 04:01 PM | Likes Like |Link to Comment
  • Stifel raises target on Boeing amid strong commercial demand [View news story]
    Well, one firm says $164 but then there's Thomas, who says it should be $17.58! ;-)

    Boeing (BA) Target Raised to $164 at Sterne Agee; Says Stock is 'Must Own'
    Sep 24, 2013. 04:18 AM | 1 Like Like |Link to Comment
  • Sterne Agee sees big upside for "must-own" Boeing [View news story]
    I've owned Boeing since 1994; it's been a wild roller coaster ride. I sure wish I knew where the top is (don't we all?)! ;-)
    Sep 16, 2013. 02:52 PM | 1 Like Like |Link to Comment
  • Boeing reiterated at Buy on South Korea fighter jet bid [View news story]
    Yes, context is important. You're initial comment, "Meanwhile a look at Boeing Insider Activity will show that since May 7 the only trades made by Boeing Insiders were liquidations at full price or highly discounted purchase options" certainly sounded ominous (what was you reason for mentioning that?). For context, one needs to know what the normal activity is, in this case, how much activity do insiders normally have, over the long term. Is this activity unusual or not; I don't know; do you?
    Aug 21, 2013. 03:15 PM | Likes Like |Link to Comment
  • Boeing reiterated at Buy on South Korea fighter jet bid [View news story]
    Re Insider liquidations: I thought, HMmmm, that's not good. So I looked up Insider trading for BA on the NASDAQ web site; I don't see that the implication that insiders are liquidating their shares is true? For example, McNerney did an Option Execute for 283,037 shares ($37.57) and holds 745,504 shares on 8/8/13 leaving him with 463,467 shares, hardly a liquidation. As the CEO, he'll probably be picking up some more stock options and grants.

    VPs have such a large number of shares that the fact they're selling shares isn't that meaningful without looking at the overall picture.

    Now, if the intuitions start liquidating, that would be worrisome.
    Aug 19, 2013. 06:59 PM | Likes Like |Link to Comment
  • Dividend Growth Investors Should Consider Boeing Or Airbus [View article]
    You say, "Their reports are fairly easy to read in my opinion"; easy for you to say! :-) I should get more educated but I'm retired, and as everyone knows, retired people are very-very busy doing - ah - retired stuff.

    Interesting link, though, thanks.
    Aug 1, 2013. 03:57 PM | Likes Like |Link to Comment
  • Dividend Growth Investors Should Consider Boeing Or Airbus [View article]
    Actually, that's an example of "my confusion". :-) That link is to EADS N.V. (EADSY). You'll notice a lot of N/As. And, right now, it shows Volume: 10,179. Avg Vol (3m): 15,034? On Google, there's OTCMKTS:EADSF, also with a lot of "-"s for missing data, e.g. Open -; Vol / Avg. 0.00/692.00, P/E -; Div/yield -; EPS -; Shares -; Inst. own -.

    I'm a novice investor and so I like the 30,000 ft view provided by Google Finance, Yahoo finance, etc. Not much there for "EADS"?
    Aug 1, 2013. 03:50 PM | Likes Like |Link to Comment
  • Dividend Growth Investors Should Consider Boeing Or Airbus [View article]
    EADS/Airbus is not listed on the NYSE or NASDAQ; they are listed on four other "foreign" exchanges. To me that's a negative, as far as trading their shares. It's easy to look up info on Boeing but I never quite know where to look for EADS/Airbus. All the financial web sites I use (Google/Yahoo/NASDAQ et al) don't show as much info for EADS/Airbus as for they do for BA.

    I do agree that both companies are great companies, especially in the aircraft business. They produce amazingly complex flying machines and yet they are extremely safe.
    Jul 30, 2013. 04:14 PM | 2 Likes Like |Link to Comment
  • What sequester? Handily beating the S&P 500 this year are two aerospace and defense ETFs, ITA and PPA. Both have added to gains the last few sessions as top holdings Boeing (BA), Lockheed Martin (LMT), Northrop Grumman (NOC), and General Dynamics (GD) all posted earnings beats even as defense spending has been slashed. International and commercial orders are helping, but so are long-term contracts. "We are not out of the woods at all," says Boeing CEO Jim McNerney on the earnings call (transcript). "We are entering the woods." [View news story]
    A billion here and a billion there, and pretty soon, it adds up; well, except when you're talking about the federal budget! :-) My point is that all the federal budget numbers are big numbers; for context, you need to know more than that the number is large, e.g.:

    2012 Defense Budget expenditures were 672.9B (WikipediA). The "draconian" $500B Defense cuts are spread over 10 years for an average of $50B per year, which amounts to 7.5% (of 2012 numbers) . The four defense contractors listed are probably the largest ones but there are many more. Maybe something like 30% of Boeing’s revenue is from the US Defense budget, which would be roughly 24B for about 3.5% of the defense budget? So a 7.5% cut to $24B = $1.8B or about 2 ¼% of Boeing’s revenue; not insignificant but hardly draconian. Add the fact that Boeing is attempting to increase foreign defense sales and having some success, and the cuts become even less significant.

    OK, a lot of guessing but that’s the kind of calculations necessary to put the cuts into some context. It’s not at all surprising to me that the cuts have not had much of an impact on Boeing’s bottom line.
    Jul 25, 2013. 01:05 AM | Likes Like |Link to Comment
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