Boeing has negative book value

Discussion in 'Stocks' started by tradealarm, Mar 25, 2009.

  1. I'm shocked to BA's balance sheet. Ford's CEO Mulally doesn't have a good background. BA has negative book value

    * Total equity=($1.294 billion)
    * Stock price is about 37.5 today. That's ridiculous.

    I bet against my broker friend.

    * BA need bail out and go under $5/share within one year.
    * I have never seen better short opportunity.
  2. I called it months ago on this same forum. Their balance sheet is UGLY!
  3. wow that is interesting... but I just went on Yahoo and isn't the company producing 2 billion profit a year?
  4. Free cash flow for 2008 was negative 2.1 Billion.

    Cash and investments in marketable securities on hand at the end of Q4 totaled $3.6 Billion.

    Boeing's 2009 revenue guidance is $68 billion to $69 billion. Earnings- per-share guidance for 2009 is $5.05 to $5.35 per share.

    The financial guidance continues to assume stable delivery levels for in-production commercial airplanes over the next several years, but also considers operational and market risks.

    Operating cash flow is expected to be greater than $2.5 billion (Table 7), including discretionary pension contributions of approximately $0.5 billion and an assumption of $1 billion for new commercial airplane financings.

    Meanwhile, Fed-Ex may cancel 30 new Boeing planes should Congress pass a bill that would remove drivers, couriers and other employees at FedEx's Express unit from the jurisdiction of the federal Railway Labor Act of 1926.

    In other words, if it becomes easier for Unions to organize Fed-Ex may cancel billions of dollars of cargo plane orders with BA.
  5. Boeing will not go under. They produce military equipment just as they produce commercial airplanes. They're a strategic asset for the nation as a whole.

    Of course I'm not quite so enamored with the outsourcing of the 787's components..
  6. Boeing will be still there. But stock holders will be wipped out.

  7. BA is near resistance in chart
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  8. As a former airline employee, I can say this should not be a surprise. I was completely done in 2003, and back then at least for our airline they were essentially giving us the planes for little to nothing and they had to know there was little hope for the long run. We were the flagship for the 717 and now down to 7 in the fleet that the airline hasn't been paying on for a few years now. It's another government sponsored business except for those few profiable years in between the continual downturns in the airline business.
  9. Shares Outstanding5: 726.13M
    Float: 722.71M
    % Held by Insiders1: 0.44%
    % Held by Institutions1: 69.60%
    Shares Short (as of 10-Mar-09)3: 19.35M
    Short Ratio (as of 10-Mar-09)3: 1.7
    Short % of Float (as of 10-Mar-09)3: 2.70%
    Shares Short (prior month)3: 13.38M
    #10     Mar 31, 2009