The airlines industry appears to be imploding on itself so
it would seem silly to get involved with anything that even resembles an
airline. Boeing is related to such an
industry along with its Dreamliner problems, so why would anyone want to step
up to the plate here?
The valuation is not bad here and they are way off their 52
week high of $107.53 a share set back in September. Our Levott Buying Index (LBI) has them listed
as a 1.75 with 1.00 being the best. The
estimates for EPS growth rate in 2008 are in the 14% range, which is not too
bad, in what looks to be a down year for stocks. Boeing does pay a dividend of just over 2%.
The thing that really interests me though is all of these
airlines grounding their planes for inspections. These fleets are getting old and with all the
attention being paid to these groundings for inspections, they are going to
have to look into purchasing new planes.
This of course is a great situation for Boeing to be in and once they
get the Dreamliner delays corrected, they could have a nice march up the stock
chart ladder.
There appears to be more upside potential here than
downside, but that is why we play the game.
I know I am going to be keeping an eye on this stock.