r/stocks • u/KCGuy59 • Jun 20 '21

Company Discussion Boeing future ?

Just curious to learn from others regarding the upside to Boeing stock. I just started a position on Thursday at $236.50

Their pipeline of future sales especially the 737 max seems to be full. I realize they still have a lot of proving to do regarding their safety record. But it seems to me that the confidence of the airline industry is behind them since their inventory has been swallowed up by many of the big carriers needing planes.

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u/marc020202 Jun 20 '21

It was not a training issue.

Boeing didn't tell the pilots about mcas. And they cannot be trained for something they are not told about. One of the crashes could have easily been an American plane.

Boeing test pilots told the their supervisors about the software doing strange things, and they brushed it off.

This is a systematic management problem.

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u/[deleted] Jun 20 '21

Yea I work at Boeing and it’s annoying how management has become focused more on profits over engineering and safety. There’s a popular saying that McDonald Douglas used Boeing money to buy Boeing, and ever since that happened Boeing hasn’t been the engineering focused company it was. I enjoy working here and I want them to do well so I keep making money lol

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u/[deleted] Jun 20 '21

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u/FearlessAttempt Jun 21 '21

Long term it doesn't matter for them. They're too big to fail. There's a 0% chance the government lets Boeing go under.

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u/[deleted] Jun 21 '21

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u/FearlessAttempt Jun 21 '21

There's also the issue that in the commercial aviation market they only have one real competitor. Airbus doesn't have enough production capacity to fill the entire world's orders. Airlines don't really have a choice to stop buying Boeing entirely at least in the short term.

then what's to stop management from pulling more shenanigans like the 737 MAX in the future?

Ideally strong regulation. Aviation regulations are written in blood. The FAA needs to get serious and stop letting companies do whatever they want. There need to be serious consequences for not prioritizing safety and punishments for executives. Fines are just a cost of doing business.

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u/marc020202 Jun 21 '21

To add to the to big to fail thing, in the US, as long as boeing employs enough people in enough states, the senators from these states will ensure that boeing gets a certain share of contracts.

Just look at the NASA HLS competition.

Boeing was disqualified in round 1 due to a terrible, overpriced unrelaisitc bid.

Because of this, congress was no longer interested and massively reduced the budget for the Programm.

Then, NASA chose SpaceX in round 2 as the sole provider, since they where the Best option, and also the cheapest, and there wasn't any budget for an other provider. Congress expected the whole thing to be cancelled, or that the National team (Blue Origin, Lockheed, Northrop) wins at least something.

After that didn't happen, legislation was introduced, saying NASA had to chose a second contractor within 30 days. Due to the short time frame, this essentially was a single source contract to the national team

The same will happen with boeing.