{"id":20655,"date":"2020-11-22T13:35:49","date_gmt":"2020-11-22T17:35:49","guid":{"rendered":"https:\/\/www.pgmcapital.com\/?p=20655"},"modified":"2020-11-22T13:35:52","modified_gmt":"2020-11-22T17:35:52","slug":"is-it-now-the-right-time-to-buy-boeing-shares","status":"publish","type":"post","link":"https:\/\/www.pgmcapital.com\/nl\/is-it-now-the-right-time-to-buy-boeing-shares\/","title":{"rendered":"Is it now the right time to Buy Boeing Shares?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Dear<strong>&nbsp;PGM Capital<\/strong>&nbsp;Blog readers,<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this weekend\u2019s blog article, we want to take the opportunity to discuss with you, if\u00a0it is\u00a0currently\u00a0the\u00a0most lucrative time\u00a0to invest in shares of The Boeing Company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">INTRODUCTION:<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Together with its subsidiaries, the Boeing Company, designs, develops, manufactures, sales, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services worldwide.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The company also provides financing, and product support services, for a portfolio of equipment under operating and finance leases. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2020\/11\/UGCBDY4MPNJOTIDJZCGVD5KA7M-1024x490.jpg\" alt=\"\" class=\"wp-image-20667\" width=\"700\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2020\/11\/UGCBDY4MPNJOTIDJZCGVD5KA7M-1024x490.jpg 1024w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2020\/11\/UGCBDY4MPNJOTIDJZCGVD5KA7M-300x144.jpg 300w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2020\/11\/UGCBDY4MPNJOTIDJZCGVD5KA7M-768x367.jpg 768w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2020\/11\/UGCBDY4MPNJOTIDJZCGVD5KA7M.jpg 1279w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Among\u00a0the largest global\u00a0aerospace\u00a0manufacturers, it is also\u00a0the second-largest\u00a0defense contractor\u00a0in the world based on 2018 revenue,\u00a0and the\u00a0largest exporter in the United States by\u00a0USD\u00a0dollar value.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is ranked 40th on the\u00a0<em><a rel=\"noreferrer noopener\" href=\"https:\/\/fortune.com\/fortune500\/2020\/search\/\" target=\"_blank\">Fortune<\/a><\/em>\u00a0magazine &#8220;Fortune 500&#8221; list (2019),\u00a0and ranked 121th on the &#8220;<a rel=\"noreferrer noopener\" href=\"https:\/\/fortune.com\/global500\/2020\/search\/\" target=\"_blank\">Fortune Global 500<\/a>&#8221; list (2020).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Boeing was founded in 1916, and has its corporate headquarters in\u00a0Chicago,\u00a0Illinois.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The shares of the company are trading on the New York Stock Exchange under the symbol BA and have been a &#8220;<a rel=\"noreferrer noopener\" href=\"https:\/\/finance.yahoo.com\/quote\/%5EDJI\/components?p=%5EDJI\" target=\"_blank\">DOW-Jones Industrial<\/a>&#8221; component since March 12, 1987.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">BOEING VERSUS AIRBUS:<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">As a result from a series of mergers within the global\u00a0aerospace industry, in addition to other manufacturers, such as the following:\u00a0Lockheed Martin,\u00a0Convair,\u00a0British Aerospace\u00a0and\u00a0Fokker\u00a0that withdrew from this market, the\u00a0Boeing (NYSE: BA) and Airbus (AIR.PA)\u00a0competition has become  a\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/en.wikipedia.org\/wiki\/Duopoly\" target=\"_blank\">duopoly<\/a>\u00a0in the large\u00a0jet airliner\u00a0market since the 1990s.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2020\/11\/Duopole-Airbus-Boeing-800x445-1.jpg\" alt=\"\" class=\"wp-image-20684\" width=\"700\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2020\/11\/Duopole-Airbus-Boeing-800x445-1.jpg 800w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2020\/11\/Duopole-Airbus-Boeing-800x445-1-300x167.jpg 300w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2020\/11\/Duopole-Airbus-Boeing-800x445-1-768x427.jpg 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Since the beginning of Airbus, the European government had planned to build a series of aircraft to compete with each Boeing offer, making Airbus, Boeing\u2019s number one enemy on the aircraft marketplace.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Sales &amp; Delivery:<\/h5>\n\n\n\n<p class=\"wp-block-paragraph\">As Airbus was launched several years after Boeing, it would not be fair to look at aircraft deliveries as a success metric. As of the end of 2019, they are:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Boeing with 19,913 aircraft deliveries.<\/li><li>Airbus with 12,626 aircraft deliveries.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The flipside of this would be aircraft orders, which we can see Airbus comes out ahead:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Airbus with 7,621 aircraft in its backlog.<\/li><li>Boeing with 4,744 aircraft in its backlog.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Below chart shows the performance of the shares of Boeing and the ones of Airbus.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2020\/11\/Screen-Shot-2020-11-21-at-1.31.17-PM-1024x621.png\" alt=\"\" class=\"wp-image-20681\" width=\"900\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2020\/11\/Screen-Shot-2020-11-21-at-1.31.17-PM-1024x621.png 1024w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2020\/11\/Screen-Shot-2020-11-21-at-1.31.17-PM-300x182.png 300w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2020\/11\/Screen-Shot-2020-11-21-at-1.31.17-PM-768x466.png 768w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2020\/11\/Screen-Shot-2020-11-21-at-1.31.17-PM.png 1086w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>Blue chart = Boeing and Green chart is Airbus<\/figcaption><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">PGM CAPITAL ANALYSIS &amp; COMMENTS:<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">It has been a tough year for\u00a0Boeing\u00a0shareholders, with the stock losing more than 60% of its value over a three-week period in March amidst growing COVID-19 fears, as can be seen from the below chart.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2020\/11\/Screen-Shot-2020-11-21-at-2.01.49-PM-1024x624.png\" alt=\"\" class=\"wp-image-20688\" width=\"900\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2020\/11\/Screen-Shot-2020-11-21-at-2.01.49-PM-1024x624.png 1024w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2020\/11\/Screen-Shot-2020-11-21-at-2.01.49-PM-300x183.png 300w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2020\/11\/Screen-Shot-2020-11-21-at-2.01.49-PM-768x468.png 768w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2020\/11\/Screen-Shot-2020-11-21-at-2.01.49-PM.png 1095w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Boeing had concerns prior to the pandemic, with its 737 MAX airplane grounded in March 2019 after a pair of fatal accidents. The 737 MAX issues and an investigation into what went wrong led the company to&nbsp;dump its CEO&nbsp;and has cost Boeing billions in compensation payments to suppliers and customers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, with the signs that before the year-end, we will have a COVID-19 vaccin and the fact that the United States, Federal Aviation Administration (FFA) cleared Boeing\u2019s 737 Max for flights, the sky is clearing back for the world&#8217;s biggest commercial aircraft manufacturer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The above YTD chart of the shares of the company also shows that in the meantime shares of the company have already regained over 50% of its loses as of March this year.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Biggest US Exporter:<\/h5>\n\n\n\n<p class=\"wp-block-paragraph\">Boeing is a force in the global economy and it is America\u2019s biggest exporter. They are coming off their best earnings year ever with revenue topping US$100 billion in 2018.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Below chart shows also that shares of Boeing has outperformed the performance of the DOW Jones Industrial &#8211; for which it is a component &#8211; on average with a factor 3.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2020\/11\/Screen-Shot-2020-11-21-at-1.51.13-PM-1-1024x626.png\" alt=\"\" class=\"wp-image-20694\" width=\"900\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2020\/11\/Screen-Shot-2020-11-21-at-1.51.13-PM-1-1024x626.png 1024w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2020\/11\/Screen-Shot-2020-11-21-at-1.51.13-PM-1-300x183.png 300w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2020\/11\/Screen-Shot-2020-11-21-at-1.51.13-PM-1-768x470.png 768w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2020\/11\/Screen-Shot-2020-11-21-at-1.51.13-PM-1.png 1086w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>Blue chart = Boeing and Red chart = DOW Jones Industrial<\/figcaption><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Based on the company&#8217;s fundamentals and the points mentioned in this article, we have initiated our rating on the shares of Boeing with a BUY.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Disclosure:<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Currently, we do not own shares of Boeing or Airbus, but have\u00a0recently\u00a0started buying primary Boeing shares for our clients and the ones of AIRBUS as a hedge on them.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2019\/09\/When-you-succeed-we-succeed-transparant-1.png\" alt=\"\"\/><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Last but not least, before taking any investment decision, always take your investment horizon and risk tolerance into consideration. Keep in mind that share prices do not move in a straight line. Past Performance Is Not Indicative Of Future Results.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Yours sincerely,<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img decoding=\"async\" src=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2015\/06\/eric.jpg\" alt=\"\" width=\"110\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Eric Panneflek<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dear&nbsp;PGM Capital&nbsp;Blog readers, In this weekend\u2019s blog article, we want to take the opportunity to discuss with you, if\u00a0it is\u00a0currently\u00a0the\u00a0most lucrative time\u00a0to invest in shares of The Boeing Company. INTRODUCTION: Together with its subsidiaries, the Boeing Company, designs, develops, manufactures, sales, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and<a href=\"https:\/\/www.pgmcapital.com\/nl\/is-it-now-the-right-time-to-buy-boeing-shares\/\">[&#8230;]<\/a><\/p>\n","protected":false},"author":2,"featured_media":20668,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[51],"tags":[],"class_list":["post-20655","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pgm-capital-blog"],"_links":{"self":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/20655","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/comments?post=20655"}],"version-history":[{"count":48,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/20655\/revisions"}],"predecessor-version":[{"id":20712,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/20655\/revisions\/20712"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media\/20668"}],"wp:attachment":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media?parent=20655"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/categories?post=20655"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/tags?post=20655"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}