I've been overwhelmingly bullish on Boeing Inc. (NYSE: BA) for years, since long before I started publishing Private Briefing in 2011, but it's nevertheless one of the very first stocks I recommended for my subscribers.
It goes deeper than that, in fact: I can't remember a time in my life when I wasn't absolutely nuts about airplanes, aeronautics, and the adventures aviation has spawned throughout history. It was a passion I inherited from my late dad, a physicist by education and an engineer by experience. He started his long and honorable career with Hamilton Standard and Pratt & Whitney up in Connecticut – and ended that career with Northrop Grumman Corp. (NYSE: NOC).
So, naturally, I've been closely following details of the tragedy outside Addis Ababa, Ethiopia, where a four-month-old Boeing 737 MAX 8 airliner crashed six minutes after takeoff, claiming 157 lives.
Investigators from all over the world are on site outside Addis Ababa, and the black boxes have been recovered. And because this is the second crash of a MAX 8 aircraft in less than six months, countries from Indonesia to China to Mexico have begun to ground the MAX 8, with the United Kingdom being the latest. Boeing's "home turf," the United States, has yet to make a move either way.
The shares, which have given my subscribers peak gains of more than 582%, have taken a bit of a cliff dive. They fell more than 12% between Friday's pre-crash close and Monday morning's opening about 24 hours after the crash. And because Boeing is a "whale," the most expensive component of the Dow Jones, Boeing's troubles sent a good chunk of the stock market reeling.
The uncertainty over both the safety of the MAX 8 and the solidity of Boeing's all-important "order book" is understandable. No doubt the professionals are racing for the answers, with billions of dollars and, more importantly, potentially millions of travelers' lives at stake.
So let me share with you why I'm every bit as bullish on Boeing this morning as I was on Friday…
About the Author
Before he moved into the investment-research business in 2005, William (Bill) Patalon III spent 22 years as an award-winning financial reporter, columnist, and editor. Today he is the Executive Editor and Senior Research Analyst for Money Morning. With his latest project, Private Briefing, Bill takes you "behind the scenes" of his established investment news website for a closer look at the action. Members get all the expert analysis and exclusive scoops he can't publish... and some of the most valuable picks that turn up in Bill's closed-door sessions with editors and experts.