Opinion on  The Boeing Company (BA)     Sector: Capital Goods  >  Industry: Aerospace & Defense
The Boeing Company

Boeing Co. (The) (NYSE: BA) Optionable Last: 63.03 Chg: -3.04 ( -4.60% ) Open: 65.01 Avg Vol: 6,911,429 Vol: 500 Bid: N/A Ask: N/A High: 65.30 Low: 62.04 VV%Chg: -99.99% Pre Market Data Last: 62.05 Chg: -0.98 %Chg: -0.98% Vol: 500 TechSignals MA 30 days flat trend at least 4 days (30 Days MA break out)   This is a wait signal. Watch your other buy or sell signs for direction. A flat trend can indicate that the stock in preparing for a correction and it could begin to go down.   MA 30 days flat trend starts 4 days ago and is longer than down trend (30 Days MA break out)   This is a wait signal. Watch your other buy or sell signs for direction. A flat trend can indicate that the stock in preparing for a correction and it could begin to go down.   MACD downward crossed zero-line less than 3 days ago (MACD 8-17-9)   When combined with a red or phantom red arrow on the Stochastics it provides a strong negative signal. Some investors will ignore this signal if the stock is still above the moving average and the moving average is still up trending. This is called a lake play and should only be applied in a bullish or up trending market.   Today's volume is greater than 150% of the average volume of previous 10 days. (Volume)   Provides additional strength to our three green arrows. It is not necessary to have this in an up trending stock in an up trending market. It is critical to have this in a down trending market as we have more risk in that type of market. Remember that there are two types of volume, selling volume and buying volume. We can tell the difference by looking to see which way the price moved the day we had the large volume. If the price moved up we had buying volume, which is what we want, and if the price went down we had selling volume. Selling volume will have the opposite affect on our stock price pattern and could actually warn of a new down trend.   Company News Sep 4, 2008 @ 1:18PM SmarTrend(R) Market Wrap-Up -- September 4, 2008 Last Updated: September 4, 2008: 4:10 PM ET---The major US equity indices tumbled today following the release of disappointing economic reports. Large bellwether companies, Caterpillar (NYSE:CAT) down 5.5%, Boeing (NYSE:BA) down 4.7%, and United Technologies (NYSE:UTX) down 3.8%, were all hit hard after a rising jobless claims report heightened investors concerns that the economy is still struggling. The Labor Department reported that new applications for unemployment insurance rose by 15,000... Sep 4, 2008 @ 1:12PM Closing Update: Indexes Deep in Red as Economic Uncertainty Hangs Over Street -NYSE Down 260 (3.2%) 8,008.24. Sep 4, 2008 @ 12:04PM SPEEA Supports IAM 751 Efforts to Secure a New Contract from Boeing The union representing engineers, technical and other aerospace professionals at The Boeing Company calls on management to respect the call by Washington Gov. Chris Gregoire to avoid a strike and negotiate a fair contract with the International Association of Machinists (IAM), District 751. Sep 4, 2008 @ 9:49AM Boeing Off 6% as Union Readies for Strike, Economy Weighs Boeing (BA) is down more than 5% as stocks move broadly lower, but the company is also seeing downside after its principal union set the stage for a crippling strike. Sep 4, 2008 @ 9:38AM SmarTrend(R) MidDay Market Recap -- September 4, 2008 Last Updated: September 4, 2008: 12:05 PM ET---The major US equity indices are trading sharply to the downside due to an unexpected rise in jobless claims and more worries about the state of the economy. The labor Department reported that new applications for unemployment insurance rose by 15,000 to 444,000. Economists had been expecting a drop to 420,000. Retail sales numbers released this morning showed that many retailers are struggling during the back-to-school season. The lone brightspot... Sep 4, 2008 @ 9:12AM Mid-Day Update: Stocks Swoon as Jobless Figures, Retail Sales Suggest Weakening Economy Here's where markets stand at mid-day. Fundamentals Phase 1 Score: 6/0 Volume Ratio 5/30 Day 89.6 P/E Ratio 11.3 P/E Relative Ratio 0.4 Proj EPS 1M Chg CFY 0.0 EPS Growth 5 Yr 13.1 Company Growth Ratio 1.4 Acc. Dist Current 42.3 Cash Flow Growth 5 Yr 214.2 Debt/Equity Ratio 0.9 Insider Trading 1.0 EPS Rank 56.3 Price Rank 38 Group Rank 49 Phase 2 F/E Score 2.88 Estimates 2.75   Financials 3.00   Price Pattern 0.50 Volatility 3.50   Stock Highlights Industry $AIRDEF Last Trade Size 300 52 Week High 105.10 52 Week Low 60.40 EPS (ttm) 5.56 ERG 47.66 Shares Out 740.25 Est. Earnings Date Oct 20, 08 Dividend Yield 2.54 Previous Close 66.07 General Electric Co (NYSE: GE) Optionable Last: 27.70 Chg: -0.87 ( -3.05% ) Open: 28.39 Avg Vol: 44,629,447 Vol: 3,678 Bid: N/A Ask: N/A High: 28.49 Low: 27.60 VV%Chg: -99.99% Pre Market Data Last: 27.38 Chg: -0.32 %Chg: -0.32% Vol: 50,614 TechSignals MA 30 days flat trend at least 4 days (30 Days MA break out)   This is a wait signal. Watch your other buy or sell signs for direction. A flat trend can indicate that the stock in preparing for a correction and it could begin to go down.   Stochastics Value downward crossed 75 more than 2 days ago, now below 25 (Stochastics 14-5 breakout)   This is a wait signal. The stochastics has dipped below the 25% line into the oversold territory. A positive signal will occur when the stochastics crosses back above the 25% line.     Today's volume is greater than the average volume of previous 10 days, but less than 150% of it. (Volume)   On its own this kind of volume is not a strong positive signal but does lend some strength to the other positive signals we may be seeing. In a down trending market we need higher than average volume of at least 150% to invest.   Company News Sep 5, 2008 @ 4:20AM DJ US HOT STOCKS TO WATCH: SanDisk, UST, Merrill Lynch Among the companies whose shares are expected to see active trading in Friday's session are SanDisk Corp. (SNDK), UST Inc. (UST) and Merrill Lynch & Co. (MER) Sep 4, 2008 @ 7:16PM ValuEngine Upgrades CF Industries Holdings, Pioneer Natural Resources To A '5' Rating The ValuEngine Rating is an overall assessment of a stock's attractiveness. It combines the following five factors: ValuEngine's proprietary valuation, risk-return tradeoff, momentum, market capitalization and ValuEngine's proprietary forecasted one-month return.Approximately 80 to 85 companies achieve this highest ValuEngine rating out of VE's total coverage of over 5,000 publicly traded companies. These ratings are computed daily and are often discussed on financial broadcasts on General... Sep 4, 2008 @ 3:29PM MidnightTrader's After-Hours News Movers Some of the stocks moving on news-driven events in tonight's after-hours include: Sep 4, 2008 @ 2:20PM Airworthiness Directives; General Electric Company (GE) CF6-80A Series Turbofan Engines SUMMARY: The FAA proposes to adopt a new airworthiness directive (AD) for GE CF6-80A series turbofan engines with certain stage 1 high-pressure turbine (HPT) rotor disks, installed. This proposed AD would require removal from service of those stage 1 HPT rotor disks within 30 days after the effective date of the AD. This proposed AD results from the FAA learning that those disks are susceptible to cracks developing in the bottoms of the dovetail slots. We are proposing this AD to prevent cracks... Sep 4, 2008 @ 1:31PM Assurant Buys Warranty Unit From GE For $140 Million - Shares Flat in Evening Trade Assurant Inc. (AIZ) said it has signed a definitive agreement to acquire the Warranty Management Group from General Electric (GE) unit GE Consumer & Industrial for $140 million in cash. GE will also pay Assurant $115 million in cash for the assumption of certain obligations. Sep 4, 2008 @ 1:15PM Assurant to Acquire GE Consumer & Industrial's Warranty Management Group Assurant, Inc. ("Assurant") (NYSE: AIZ), a premier provider of specialized insurance and insurance-related products and services, today announced that it has signed a definitive agreement with GE Consumer & Industrial, a unit of General Electric (NYSE: GE), for Assurant to acquire GE's Warranty Management Group (WMG) business, a unit that markets and sells extended warranties and service contracts for major appliances and consumer electronics. As part of the definitive agreement, Assurant will... Fundamentals Update 09/08: Boeing Co, (BA) The Boeing Company Business: Boeing Co, (BA) The Boeing Company, together with its subsidiaries, engages in the design, development, manufacture, sale, and support of commercial jetliners, military aircraft, satellites, missile defense, and human space flight and launch systems and services worldwide. It operates in five segments: Commercial Airplanes (CA), Precision Engagement and Mobility Systems (PE&MS), Network and Space Systems (N&SS), Support Systems (SS), and Boeing Capital Corporation (BCC). The CA segment provides commercial jet aircrafts and related services primarily to the commercial airline industry. It also offers aviation support, aircraft modifications, spares, training, maintenance documents, and technical advice to commercial customers. The PE&MS segment engages in the research, development, production, and modification of precision engagement, and mobility products and services. The N&SS segment engages in the research, development, production, and modification of products and services that assist in the transformation of operations to be network-centric, through integration, intelligence and surveillance systems, communications, architectures, and space exploration. The SS segment engages in operations, maintenance, training, upgrades, and logistics support functions for military platforms and operations. The BCC segment facilitates, arranges, structures, and provides selective financing solutions in the commercial aircraft market, and the space and defense markets. This segments portfolio consists of finance leases, notes and other receivables, equipment under operating leases, and investments and assets held for sale or re-lease. The Boeing Company also operates a high speed broadband communications business. It has a partnership with Lockheed Martin Corporation. The company was incorporated in 1916 and is headquartered in Chicago, Illinois. Business Sector : BA has been assigned to the  Aerospace & Defense Business Sector. VectorVest classifies stocks into over 200 Industry Groups and 40 Business Sectors. Industry Group : BA has been assigned to the  Aerospace & Defense (Mfrs) Industry Group. VectorVest classifies stocks into over 200 Industry Groups and 40 Business Sectors.   Capital Appreciation Analysis       Value:  Value is a measure of a stock's current worth.  BA has a current Value of $98.19 per share. Therefore, it is undervalued compared to its Price of $62.89 per share .  Value is computed from forecasted earnings per share, forecasted earnings growth, profitability, interest, and inflation rates. Value increases when earnings, earnings growth rate and profitability increase, and when interest and inflation rates decrease. VectorVest advocates the purchase of undervalued stocks. At some point in time, a stock's Price and Value always will converge.   RV (Relative Value):  RV is an indicator of long-term price appreciation potential. BA has an RV of 1.43, which is excellent on a scale of 0.00 to 2.00 . This indicator is far superior to a simple comparison of Price and Value because it is computed from an analysis of projected price appreciation three years out, AAA Corporate Bond Rates, and risk. RV solves the riddle of whether it is preferable to buy High growth, High P/E stocks, or Low growth, Low P/E stocks. VectorVest favors the purchase of stocks with RV ratings above 1.00. RS (Relative Safety):  RS is an indicator of risk. BA has an RS rating of 1.05, which is fair on a scale of 0.00 to 2.00 . RS is computed from an analysis of the consistency and predictability of a company's financial performance, debt to equity ratio, sales volume, business longevity, price volatility and other factors. A stock with an RS rating greater than 1.00 is safer and more predictable than the average stock in the VectorVest database. VectorVest favors the purchase of stocks of companies with consistent, predictable financial performance.   RT (Relative Timing):  RT is a fast, smart, accurate indicator of a stock's price trend. BA has a Relative Timing rating of 0.70, which is poor on a scale of 0.00 to 2.00.   RT is computed from an analysis of the direction, magnitude, and dynamics of a stock's price movements over one day, one week, one quarter and one year time periods. Once a stock's price has established a strong trend, it is expected to continue in that trend for the short-term. If a trend dissipates, RT will gravitate toward 1.00. RT will explode from bottoms, dive from tops, and reflect changes in price momentum. VectorVest favors the purchase of stocks with RT ratings above 1.00.   VST (VST-Vector):   VST is the master indicator for ranking every stock in the VectorVest database. BA has a VST rating of 1.07, which is fair on a scale of 0.00 to 2.00.  VST is computed from the square root of a weighted sum of the squares of RV, RS, and RT. Stocks with the highest VST ratings have the best combinations of Value, Safety and Timing. These are the stocks to own for above average, long-term capital appreciation. VectorVest advocates the purchase of safe, undervalued stocks rising in price.   Recommendation (REC) : VectorVest gives a Buy, Sell, Hold recommendation on every stock, every day. BA has a Hold recommendation . REC reflects the cumulative effect of all the VectorVest parameters working together. These parameters are designed to help investors buy safe, undervalued stocks rising in price. They also help investors avoid or sell risky, overvalued stocks falling in price. VectorVest recommends that investors buy high VST-Vector, Buy-rated stocks in rising markets.   Stop (Stop-Price) : Stop is an indicator of when to sell a long position or cover a short position.  BA has a Stop of $61.67 per share . This is $1.22 below BA's current closing Price. A stock's Stop is computed from a 13 week moving average of its closing prices, and is fine-tuned according to the stock's fundamentals. High RV, high RS stocks have lower Stops, and low RV, low RS stocks have higher Stops. In the VectorVest system, a stock gets a 'B' or 'H' recommendation if its Price is above its Stop and an 'S' recommendation if its Price is below its Stop.   GRT (Earnings Growth Rate):  GRT reflects a company's one to three year forecasted earnings growth rate in percent per year. BA has a forecasted Earnings Growth Rate of 16.00%, which VectorVest considers to be very good . GRT is computed from historical, current and forecasted earnings data. It is updated each week for every stock in the VectorVest database. GRT often foretells a stock's future price trend. If a stock's GRT trend is upward, the stock's price will likely rise. If GRT is trending downward, the stock's Price will probably fall. VectorVest favors the purchase of stocks whose GRT is rising and is greater than the sum of current inflation and interest rates, (11.55%).   EPS (Earnings per Share):  EPS stands for leading 12 months Earnings Per Share.  BA has a forecasted EPS of $6.61 per share . VectorVest determines this forecast from a combination of recent earnings performance and traditional fiscal and/or calendar year earnings forecasts.   P/E (Price to Earnings Ratio): P/E is a popular measure of stock valuation which shows the dollars required to buy one dollar of earnings.  BA has a P/E of 9.51 . This ratio may be deemed to be high or low depending upon your frame of reference. The average P/E of all the stocks in the VectorVest database is 31.98. P/E is computed daily using the formula: P/E = Price/EPS.   EY (Earnings Yield) : EY reflects earnings per share as a percent of Price. EY is related to P/E via the formula, EY = 100 / (P/E), and may be used in place of P/E as a measure of valuation. EY has the advantages that it is always determinate and can reflect negative earnings. BA has an EY of 10.51 percent . This is above the current average of 3.14% for all the stocks in the VectorVest database. EY equals 100 x (EPS/Price).   GPE (Growth to P/E Ratio): GPE is another popular measure of stock valuation. It compares earnings growth rate to P/E ratio. BA has a GPE rating of 1.69 .  High growth stocks are believed to be able to justify high P/E ratios. A stock is commonly considered to be undervalued when GPE is greater than 1.00 and overvalued when GPE is below 1.00. Unfortunately, this rule of thumb does not take into account the effect of interest rates on P/E ratios. The operative GPE ratio of 1.00 is valid when and only when interest rates equal 10%. With long-term interest rates currently at 5.95%, the operative GPE ratio is 0.35. Therefore, BA may be considered to be undervalued .   Dividend Analysis     Back to top   DIV (Dividend): VectorVest reports annual, regular, cash dividends as indicated by the most recent payments. Special distributions, one-time payments, stock dividends, etc., are not generally included in DIV. BA pays an annual dividend of $1.6 per share .   DY (Dividend Yield): DY reflects dividend per share as a percent of Price. BA has a Dividend Yield of 2.54%. This is above the current average of 1.56% for all the stocks in the VectorVest database. DY equals 100 x (DIV/Price). It is useful to compare DY with EY. If DY is not significantly lower than EY, the dividend payment may be in jeopardy.   DS (Dividend Safety): DS is an indicator of the assurance that regular cash dividends will be declared and paid at current or at higher rates for the foreseeable future.  BA has a Dividend Safety of 70 , which is good on a scale of 0 to 99 . Stocks with DS values above 75 typically have RS values well above 1.00 and EY levels that are much higher than DY.   DG (Dividend Growth Rate): Dividend Growth is a subtle yet important indicator of a company's financial performance. It also provides some insight into the board's outlook on the company's ability to increase earnings. BA has a Dividend Growth of 14% This is above the current average of 5% for all the stocks in the VectorVest database.   YSG (YSG-Vector):  YSG is an indicator which combines DIV, DY and DG into a single value, and allows direct comparison of all dividend-paying stocks in the database. BA has a YSG rating of 1.1, which is good on a scale of 0.00 to 2.00 . Stocks with the highest YSG values have the best combinations of Dividend Yield, Safety and Growth. These are the stocks to buy for above average current income and long-term growth.   Price-Volume Data     Back to top   Price: BA closed on 9/5/2008 at $62.89 per share   Open : BA opened trading at a price of $62.52 per share on 9/5/2008.   High : BA traded at a High price of $63.49 per share on 9/5/2008.   Low : BA traded at a Low price of $61.89 per share on 9/5/2008   Close : BA closed trading at price $62.89 per share on 9/5/2008. (Close is also called Price in the VectorVest system)   Range : Range reflects the difference between the High and Low prices for the day. BA traded with a range of $1.60 per share on 9/5/2008.   $Change : BA closed down  0.14 from the prior day's closing Price.   %PRC : BA's Price changed -0.22% from the prior day's closing price.   Volume : BA traded 5,608,906 shares on 9/5/2008.   AvgVol : AvgVol is the 50 day moving average of daily volume as computed by VectorVest. BA has an AvgVol of 7,198,600 shares traded per day.   %Vol : %Vol reflects the percent change in today's trading volume as compared to the AvgVol. %Vol equals ((Volume - AvgVol) / AvgVol ) * 100.  BA had a %Vol of -22.08% on 9/5/2008   CI (Comfort Index) : CI is an indicator which reflects a stock's ability to resist severe and/or lengthy price declines. BA has a CI rating of 0.51, which is poor on a scale of 0.00 to 2.00. CI is quite different from RS in that it is based solely upon a stock's long-term price history. VectorVest advocates the purchase of high CI stocks.   Sales / Market Capitalization Information     Back to top   Sales: BA has annual sales of $66,946,000,000   Sales Growth : Sales Growth is the Sales Growth Rate in percent over the last 12 months.  BA has a Sales Growth of 4.00% per year. This is fair . Sales Growth is updated each week for every stock. It is often useful to compare Sales Growth to Earnings Growth to gain an insight into a company's operations.   Sales Per Share (SPS): BA has annual sales of $90.44 per share . SPS can be used as a measure of valuation when comparing stocks within an Industry Group.   Price to Sales Ratio (P/S): BA has a P/S of 0.70 . This ratio is also used as a measure of valuation. Here, too, it is useful when comparing stocks within an Industry Group.   Shares: BA has 740,000,000 shares of stock outstanding .   Market Capitalization: BA has a Market Capitalization of $46,554,000,000 . Market Capitalization is calculated by multiplying price times shares outstanding.   Summary     Back to top   BA is undervalued compared to its Price of $62.89 per share , has about average safety , and is currently rated a Hold .   The basic strategy of VectorVest is to buy Low risk, High reward stocks. We suggest that Prudent investors buy enough High Relative Value, High Relative Safety stocks to keep the overall RV and RS ratings of their portfolios above 1.00. As you do this, you'll find that your risk will go down and your investment performance will improve.   Graphs   Boeing Co Aerospace & Defense (Mfrs) BA:  This call was made on 09/05/08 @ $62.52 Rating:     $62.52 (09/05/08) Gain/Loss:   -39.81% in 79 days Target:   $100.00 (+59.95%) in > one year Allocation:   0.0% of portfolio Add Comment Be the first to comment on this story and earn 2 points. 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