Boeing (NYSE: BA)
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Don't Get Suckered by the Boeing Media Frenzy
Look for a chance to buy Boeing now.
You heard me right.
As someone who worked in the news business for nearly three decades, I've seen these kinds of media "feeding frenzies" take hold more times than I can count. They take on a life of their own - meaning that facts, logic and context can fall by the wayside.
And make no mistake: The grounding of the problem-plagued 787 "Dreamliner" fleet by the U.S. Federal Aviation Administration (FAA) and aviation authorities in other countries is turning into just such a media feeding frenzy - with The Boeing Co. (NYSE: BA) as the main course.
I'm referring to it as a feeding frenzy because the grounding was the culmination of 11 days of escalating, negative news coverage about the 787. The potential for battery fires was presented as the ultimate culprit, and the reason for the grounding order. But the stories that preceded that edict dealt with such unrelated issues as fuel leaks and a cracked windshield.
In other words, this firestorm has been stoked by non-expert journalists - each of them fixated on writing "a story," while not really understanding "the story."
That said, there is a safety issue here - one that Boeing badly mishandled by not getting out in front of. If we're handing out grades for crisis management, the U.S. aerospace giant gets an "F."
With that bit of background, let's take a look at what the Dreamliner crisis means for Boeing - both the company and the stock.
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Farnborough Air Show Delivers for Boeing (NYSE: BA)
There have been some fireworks at the Farnborough Air Show for The Boeing Co. (NYSE: BA) and I'm not talking about the aerobatics displays. Boeing has had major orders on the first two days of the air show, outpacing rival Airbus.
The much anticipated show which runs July 9-15 has given hope to Boeing that it could catch up to Airbus as the world's biggest aircraft producer. Airbus last year dominated the festival, which alternates between Farnborough and Paris, with its "Neo" aircraft, but Boeing is leading the charge this year.
The aircraft industry has been thriving the past few years and Airbus has led Boeing in market share since 2006. Boeing hopes the Farnborough Air Show will be a catalyst for its comeback, fueled by orders of its new 737 Max plane.
U.S. Air Lease Corporation on Monday purchased 75 of the 737 Max jets and founder Steven Udvar-Hazy commemorated the opening of the festival and the deal by ringing Monday's NYSE opening bell via satellite.
That excitement was followed Tuesday by news that GE Capital Aviation, the commercial aircraft leasing and financing arm of General Electric (NYSE: GE), announced it would purchase 75 of the updated 737 Max 8s and 25 of the current 737s.
Airbus has announced smaller orders, one Tuesday from Hong Kong-based airline Cathay Pacific worth up to $4.2 billion and two Wednesday worth about $4.4 billion.
Boeing's orders with GE and ALC are said to be worth up to $9.2 and $7.2 billion, respectively, but it's not known for sure. That's where the mystery of the show and the secretive nature of the industry come into play.
