Time's up for Boeing
The airplane maker has over-promised and under-delivered on the 787 Dreamliner for too long.
Shawn3179- If you looked into what went wrong with boeing it is actually the opposite. Boeing thought they could move jobs overseas and saved a buck or 2. They cut engineers and manufacturing here and then sent to jobs overseas. Turns out making a state of the art aircraft is a bit tricky and the overseas manufactures couldn't make high quality parts and as more and more the part came in and failed, the plane got delayed. The plane got further and further delayed waiting on key components that were contracted out and never returned and in the end man component ended up being constructed here in the "terrible union" factories because no one else had the technical ability to do this. Unfortunately Boeing has limited capacity at these factories because of earlier cuts and shuttering of factories, so the 787 is further delayed. The 787 is pretty much a case study of how not to do outsourcing.
Another company forced into being "uncompetitive" by the unions and the democratic party. Boeing tried to keep its manufacturing in the US by opening another operation in NC. The Obama machine got it marching orders from the union bosses and used or are using the entire force of the US legal system to keep Boeing from opening up in a right to work state! Meaning that Obama , the Democratic party and most especially the Union Millionairs would rather see Boeing in China than a right to work state in the US!!!
This is what happens to EVERY industry that the unions and the democratic party take over (one in the same) . The Steel industry, The Textile industry and the Automotive Industry (GM , ford just assemble here everything is made out of the country) In the case of the Automakers the unions know that if they made everything here then the starting price for a stripped down version would start at $22,000!
Honda makes there parts and assembles in Ohio with no UNION!! although alittle more expensive the hold there resale value far better that a UNION built auto, plus even a little civic will last 300,000 miles! A good american car 100,000 and it is constant repaires by 150,000 to 175,000 it is dead!!
UNIONS destroy jobs and cause the price of everything to go up and be made cheaper!! There time has gone unless we want to end up like the EU or Greece!
"Turns out making a state of the art aircraft is a bit tricky and the overseas manufactures couldn't make high quality parts and as more and more the part came in and failed, the plane got delayed. The plane got further and further delayed waiting on key components that were contracted out and never returned and in the end man component ended up being constructed here in the "terrible union" factories because no one else had the technical ability to do this."
Blaming everybody else for Boeing's self inflicted problems is of course the easiest and least productive way to change what needs to be changed to survive. What drivel to state that only Americans can produce "state of the art aircraft" with Airbus beating Boeing consistently since 2003. They must do something right to keep the number one position? An even greater problem America and Boeing have is the medieval measurement mode they still use. To expect metric engineers and workers, who have neither the feel nor inclination to work with that cumbersome anachronism and get it right, borders on hubris. To insist on that anomaly in metric countries costs Boeing and America billions of dollars annually (see your never ending astronomical trade deficits). They only way out of this predicament is to join the metric world. Failing that and with metric China producing its first civilian airliner, I would know what to do with my Boeing shares.
x-country, they might have a huge cash flow but they are going to start spending that on the tanker, 737 MAX, 777 re-wing, and soon enough a 737 replacement. I wouldn't expect any sort of "off the charts" dividend any time soon.
Your analysis is shallow. Provide detail on the following points in Boeing history.
1. increase in price of boeing stock over next 3 years starting with day 1 of 1st 737 delivered
2. increase in price of boeing stock over next 3 years starting with day 1 of 1st 777 delivered
The 787 is larger than both programs. Forget everything leading up to now. Boeing has delivered #1. Boeing will figure out the production ramp. But, #1 is out the door and we are flying. Hold on for the next few years. The stock simply can't remain where it is. Otherwise, the dividend yield will go off the charts because they will be raising the dividend with the cash flow generation that is coming with this program.
Boeing sure has an astounding history, including a funny early 60s movie, "Boeing, Boeing" with Tony Curtis as a playboy juggling three flight attendants ("stews" in those days) at the same time. In 1970 Boeing in the Seattle area laid off a huge number of workers. A billboard said, "Will the last person out of Seattle please turn off the lights"....
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