Some companies learn the hard way that tussling with organized labor often isn’t a winning proposition, and when those disagreements are lengthy and public, nobody wins. But there are plenty of losers, including the company itself, its workers, and shareholders.
It looks as if Boeing (NYSE: BA) got that memo because earlier this month, the aerospace and defense Goliath averted a strike with 17,000 engineers and technical workers. For many of the largest industrial companies by market cap, of which Boeing is one, engineers and technical staffers are among the most essential personnel, so keeping them happy is a good idea.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Boeing may have accomplished that objective as the Society of Professional Engineering Employees in Aerospace came away saying it notched some wins it previously thought “were completely out of reach.” Still, Boeing shares are off 11.3% over the past month, extending a bear market in which the stock is down 26.7% from its 52-week high. Those are ominous statistics, but I see opportunity in this decline.
Boeing’s a battlefield, but it has positives
Undoubtedly, Boeing has its warts. On the commercial aircraft side of the equation, which has been a thorn in the stock’s side for multiple years, Boeing previously warned that supply chain issues could present production snags in its 737. Compounding the issue, an autopilot software “glitch” prompted a Sept. 28 sell-off in the shares.
Still, the defense side of the Boeing coin is appealing. The U.S. Navy recently chose Boeing over rival Northrop Grumman to deliver (likely in the 2030s) the sixth generation of carrier-based fighter jets. For fans of avionics and movies, the plane that will eventually replace the vaunted F-18 Super Hornet. This is an important, potentially lucrative contract for prospective Boeing investors to consider because, as just one example, F-18s were among the jets that flew more than 14,000 “sorties” (military speak for flight missions) during the USS Abraham Lincoln’s recently concluded deployment.
That contract win came after the Air Force chose Boeing to develop the F-47, the plane that will replace the F-15. Arguably, there’s an element of prestige in that contract win that Boeing’s share price isn’t reflecting because, in air-to-air combat, also known as dogfighting, the F-15 is undefeated.
