The head and shoulder of the yearFor more than five years I have been investing and diving deep in the process of creating airplanes. Boeing should have a sellers market, but due to their incompetence in delivering safe planes they now risk lossing goverment contracts due to their ongoing fraud cases. Their defence department is 32% of their revenue (2023) and most of it comes from the US government which would by law have to stop giving Boeing new contracts. The US government can abstain from this and still give Boeing contracts, but it will diffently have an impact. Beyond this the announced the purchase of SPR. This could give them some positive marginals for the production of MAX planes which SPR have been an important part of. However boeing is still restriced by the FAA to not produce more than 34 MAX planes per month which is already way behind their expected deliveries for the year. Boeing is too big to fail, but not to big to be held accountable for their misconducts and be faced out in the portfolio of multiple pension funds. The current head and shoulds I see for the company is just the tip of the iceberg at the current look out. Their order book is generally filled out for the next 8-10 years, but no growth can come beyond that if they are behind on deliveries. I have a fair price at 97 USD per share of Boeing. I do not see this coming into effect yet however I would not be surprised to see them trading at or below 159 USD before years end.
