unkown

Boeing: Excellent Contrarian Investment Option After a 40% Drop in Stock Price

one aspect that you are missing in your analysis - the delivery mix. boeing has stated that it will keep its delivery schedule, except for 787, flat for years 2009 and 2010. thus incremental deliveries will come from 787 program which is a new program and as boeing has said will have close to 0% margin in initial years of production. r&d scaling back effect will take place in 2009. one should not expect much r&d improvements from year 2009 to 2011. having said this - what it means to boeing commercial aerospace segment? it means even though boeing deliveries will be increasing its operating margins will peak in 2009 and operating profit growth will be very modest - maybe equal to productivity improvements. 787 deliveries are a drag on overall profitability for initially. defense sector might expereince contraction given budget constraints and by company own accord should shrink in early part of next decade. help me understand - what is the fun in investing in a stock whose earnings growth below average for 2010 and 2011 with a overhang that airlines can and will defer orders in the future. boeing 737 order book to the tune of 25% is subject to deferrals.... boeing does not seem a investment idea. sometimes the multiples are cheap for a reason.......