BA was trading at a PE of 13 3 years ago (below the Spx). Today it’s trading st 30+. What has changed? The world’s demand for aircraft hasn’t changed. They have a small victory in that the 787 philosophy beat out the a380 philosophy.
Couldn't agree more. Its seen its high for the year. Probably longer. Sell the news. Remember when it was north of $360....(?) https://elitetrader.com/et/threads/ba.316620/page-2#post-4597325 Its a friggin mammoth cyclical. Why did it get so high? Its no different than Cramer pumping Fitbit at $55. For real. ....Only a few here will understand.
Apparently. Like WTF watches Cramer? What's the Fitbit analog? Fitbit is a cyclical as well? Your point?
Boeing has a 20 year cycle where they should grow at a 6percent+ rate. And this is fairly riskless barring a major aviation centric terrorist event or trade war. But shouldn’t warrant a PE of 30
My Cramer/Fitbit analogy is quite simple. It has nothing to do with Fitbit being a cyclical; it has everything to do with the fact that Cramer has a remarkable record of touting a stock that is at the apex of some spectacular run north, right before the stock pulls back. He does it all the time. NVDA, COST, CAT, ADBE, SQ, MU..... and those are just in the last 12 months. He's a great fade and to ignore him is just silly. Your comment: "WTF watches Cramer(?)".... is a classic condescending meme embraced by many on Wall Street I'm sure. It sounds good... as if to imply.... "we know better, we're smarter, he's for amateurs". Well, thats probably true, but its also like a Julliard trained classic pianist snootily proclaiming Elton John is a hack on the piano... however that same pianist could not for the life of them get into a studio and record a hit record. So who watches Cramer? Apparently enough viewers to keep him in the 6PM time-slot for over a dozen years and a daily telecast at 9AM from post 9 on the NYSE for the opening bell. There is no denying his comments can have short lived effects on the market in general and stocks in particular. Just like Trump's can. Back to Boeing. It IS a cyclical stock. A multiple of 30 is ridiculous. The defense sector is stable revenue but its subject to the whims of Congress and the lions share of their earnings are resultant from building airplanes. When the economy sours as it inevitably will at some point, airlines park airplanes, they don't buy them. These things can change in the blink of an eye. Here's a good article that echoes these sentiments https://investorplace.com/2017/12/boeing-ba-stock-storm/ Hope that answers all your questions. I apologize if we got off to a bad start.
So every stock he touts is an analog. Gotcha. Brilliant. I've traded for three hedge funds with AUM over $1B. You're some dude from Chicago trading pennies.
Did I say "every stock he touts" is analogous? I don't think I did. I'll have to go back and re-read that. Sound a little insecure there. A need to impress perhaps? Pretty obvious. You go big guy.