In October last year, I took Boeing (US:BA) to task for launching an attack against Bombardier, Inc. (OTCMKTS:BDRBF).
Boeing complained that Delta air lines, Inc. (Europe:dal) ordering Bombadier in this series of aircraft unfairly hurt Boeing. The result was 220% tariff placed on canadian-made jets.
I said then that it would hurt much less than the canadian aircraft manufacturer in the short term, but end up hurting shares of the Boeing company in the long term.
In the past, I defended the right of Boeing to protect the interests of the company.
However, in the case of 220% of the fee, I felt as if the fight against Bombardier was under it. You Boeing, I thought; the world’s largest manufacturer of commercial aircraft. Why do you feel the need to kick sand in the face of 90-pound weakling?
Childish actions Boeing
In my opinion, the stock of Boeing was over-the-top and unnecessary, and as a result, I recommended that investors move away from shares of the Boeing company. I wrote on 9 October 2017:
“Today I had great doubts about the company and its shares. Because what he’s doing with Bombardier reeks of nepotism; in fact, Boeing is largely behaves like a spoiled child wants his or her way. For this reason, I recommend that if you have the stock BA you should reconsider your position and if You don’t, I think you should stay until the company recalls a world-class business, not a spoiled child.”
It was not easy for me to say as I would be very supportive of the shares of the Boeing company far in 2013, when I called him a “great long-term buy.”
It was trading at $75 when I said that.
Fortunately, the “Boeing” came to 23 March, affirming that he would not appeal the decision of the International trade Commission, which overturned the tyrannical Department of trade tariffs and duties against Bombardier.
Boeing stock heading to the clouds
As soon as I didn’t know that Boeing stock will reach $365, and the cumulative annual growth rate of 37%, when I recommended it in January 2013, I don’t know when he would climb into the clouds, but reduced him to a petty fight, it is the beginning of what should be a long runway of growth.
James Brumley, InvestorPlace a colleague of mine recently explained why Boeing would survive a trade war with China. If you want to read a balanced analysis of how the “Boing” may or may not be affected by a trade war, you have to take the time to check it.
For me, I’m going to stick with what I know to be true about Boeing, not guesses or speculation. Of course, it is possible that Boeing will eventually get burnt a trade war with 23% of its aircraft are sold in Chinese carriers — but it is equally possible that his max and 777X aircraft 737 will be more successful than predictions.
In business, as in life, we tend to exaggerate both the negative and positive things happening all around us. We work and live somewhere in the middle.
As Bramley said, investors spend a lot of energy worrying about something that will never happen.
Now that I’m back on the Boeing car, I believe that Boeing stock can deliver 20% -25% average annual growth over the next five years. If this happens, the stock price of 1000 $it is not out of the realm of possibility.
Much need of sound mind, but with 11.5 in free cash flow billion dollars, by far his best result in the history of the company, good things can happen if he stays away from the school pranks.
At the time of this writing, will Ashworth not to take a position in any of the above securities.