Boeing has been busy as of late. With the increase in travel and international cargo shipments, many commercial and cargo carriers have placed orders to expand their capacity on some or most of the planes in their fleets. Boeing is looking into profitably and cost-effectively in upgrading capacity of existing planes for many carriers, as a lot of them look at the offer being a great opportunity to increase seating and cargo space on the planes already in their fleet, as a less expensive alternative to buying more planes. I have not seen that Boeing has lost any new plane sales as their orders are piling up in 2011, and we have just entered April. In addition to the new orders that Boeing has received as of late, the Company has been able to land multiple Defense type orders from the US., as well as international players in the Defense market.
Boeing Defense, Space and Security President says that he plans to boost sales and revenue in the international market in case the US. Defense budget continues to tighten. However, Boeing has managed to get a $35 billion Air Force tanker order in February, and there are talks of more Defense sales this year to the US. Military. On Monday the 11th, Boeing landed an order from the NAVY for the
Some carriers adding the "New Generation" 737s. Although, these orders, some that have been placed and others to be placed in the near future, have estimated completion dates from mid 2011 to well into 2012 and beyond, Boeing, nevertheless, has been able to get these orders on their books. Also, so far year-to-date, Boeing has received 305 orders for the new 737s which will feature "a new 737 Boeing Sky Interior and will come equipped with the latest aerodynamic and engine changes, reducing fuel consumption further by 2%." (1). Other model sales have increased as well this year, adding to an incredible start to 2011 in Company new unit orders.
Recently, Boeing has also returned to the communication satellite market. The previous venture was poorly managed and ineffective, however, this move by Boeing's Satellite Division has come at an opportune time. Boeing will be the only major player in this market, as every other competitor has left the sector and disregarded its great revenue producing potential.
The incident on April 1st at Southwest Airlines (NYSE:LUV), has caused a bit of "uncalled-for" uneasiness about the possibility of future inspections by Boeing, as well as the FAA's order issued today for a series of checks of 80 older Boeing 737s, and the results they may bring should not be made to be a "big deal" by investors. I am not changing my mind and my "bullish" position I have taken in the Company. I also believe that Southwest Airlines is a good value, especially after yesterday's 1.66% drop. With oil prices set for a significant correction, the airline sector as a whole and Southwest are a great investment opportunity right now.
Boeing has captured a lot of interest as of late. This interest has come from big players, and given its recent moves towards its 52-week high a little under a year ago, therefore Boeing deserves a major consideration as a profitable investment for this year and years to come.
My interests have gone towards the (NYSE:BA) May $75.00 Calls as the "Play of the Month."
Good profits to all, and to all a good night,
Jeff the Genius
(1). SOURCE, BOEING
Disclosure: I am long BA.
Additional disclosure: I currently have options contracts, May $75 BA Calls.