To The Moon

$Boeing(BA)$

2022, Happy New Year to Fellow Tiger investors

As countries opening borders, air travel gradually returning, wanted to relook at some of my position.

Finally can smell my holiday. Missed travelling to neighbouring countries.

I own a small position of Boeing shares averaging about $220. But not intending to add more. Here is the reason.

Shares of Boeing gave up 5.95% in 2021, making it the third worst Dow stock. In Q4 21 Boeing stock sank 8.5%.

Recap, Boeing is a leader in aviation, aerospace and defense technology supporting airlines and U.S. and allied government customers in more than 150 countries. Boeing technology, products and tailored services include commercial and military aircraft, satellites, defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training.

The plane-maker battled production issues with the 787 Dreamliner in 2021. And it faced lingering 737 Max issues after the jets were grounded following two fatal flights. Now Boeing's mulling a stock sale to pay down debt from the 737 Max grounding.

For its latest quarter, Boeing posted an overall miss. But analysts expect to see Boeing earnings returning in 2022 as sales jump 35%.

After BA stock reached an astounding high price of $440 in February 2019 which then sported a lofty P/E unbecoming of a highly cyclical industrial stock, the stock plummeted due to the 737 scandal and the COVID-19 pandemic.

After two fatal crashes of its 737 MAX narrow-body passenger airplanes in 2018 and 2019, government regulators and airlines around the world grounded all 737 MAX airliners.

A total of 387 aircraft were grounded. The company’s reputation, business, and financial rating has suffered after these groundings, questioning Boeing's strategy, governance, and focus on profits and cost efficiency. The company has still not fully recovered from this scandal.

I think it will be few more years before Boeing can recover its former earnings potential. The company expects passenger traffic to return to 2019 levels in 2023-24 and then return to its long-term trend a few years after that. Thats like another 4-5 years from now at best.[Cry] 

Analysts think 2025 will be the first full recovery year in terms of earnings potential, from both COVID-19 and 737 issues. The last normalized EPS was in 2018 when it earned $17.85 in diluted EPS[Cry] 

I think the above assessment by the analyst is assess based on a normal circumstances. In 4-5 years many things can happen. So, personally i prefer not to take more position as risk is high for someone planning to retire to 5 years time. Prefer to still build on my Reits portfolio, Semiconductor stock for capital gain in 2022, and tiny portion in new high growth company.[smile] 

Once again, happy investing and I hope all of you continue to move towards your investment objectives.@小虎活动@Tiger Stars