EADSY

Trading Strategies

Regardless of Where Boeing Heads Next, Here's How to Score Big on It

The fall of aviation icon Boeing has been one of the most shocking market stories of the past year.

Once the biggest name in the industry, Boeing took hit after hit throughout 2019.

Let's go back to the beginning.

In 2018, Boeing was promising it could ramp up production of its 737 Max models to meet the influx in demand.

Just five days later, the world witnessed the first 737 Max crash.

And five months after that, a second crash rocked the world and the company.

This was followed by a laundry list of misfortune for Boeing.

What was supposed to be the company's flagship model turned into its worst nightmare. The plane has been grounded worldwide since March 2019.

Cancellations have outpaced deliveries following the aircraft's grounding. And its overall shares have plummeted about 25% following the second deadly crash.

Meanwhile, Boeing's main competitor, Airbus, has been outpacing it in the production of the A320neo, a roughly equivalent aircraft.

Boeing's recent earnings report posted its first annual loss in more than two decades. According to Barron's, core earnings per share fell from $10.85 to $6.50 for 2020, while cash flow was cut from an inflow of $9.8 billion to an outflow of $5.6 billion.

This earnings report has opened the door to a whirlwind of different questions – but the most important one for traders is where this stock will head next.

It's a great question, but it doesn't really matter. Let me explain why… Full Story

It's a great question, but it doesn't really matter. Let me explain why...

Technology

This Aerospace Company Breakup Delivers a 3-for-1 Investment Bargain

If you still have your Christmas tree up, you might want to check under it for a late present.

It comes in the form of a spin-off. Let me explain.

United Technologies Corp. completed a $23 billion merger with Rockwell Collins Inc. on Nov. 26, 2018.

Normally, the story of a sprawling conglomerate acquiring an aerospace contractor would pretty much end there.

That's because the idea behind these kinds of bolt-on buyouts is to create new synergies that make the bigger, newer firm more competitive and more profitable.

Of course, United Technologies wants to take advantage of the Trump administration's defense buildup, one of the biggest we've seen since the Reagan era.

But in this case, the merger served as a catalyst for a much bigger change.

The same day United Technologies closed the books on the deal, it announced a broad realignment that surprised Wall Street.

Following the Rockwell acquisition, United Technologies said it would break itself up into three standalone companies.

That's great news for investors because studies have shown that these kinds of spin-offs usually lead to market-beating gains.

Just the sort of late Christmas gift investors can enjoy.

That's why today, I'm going to show you how to get in on the action.

Before it's too late...

Trading Strategies

Forget the Trade War, Here's the War That Really Counts for Boeing

There's an old business maxim that tells us "All business is war."

And the one company, more than any other, that's currently bringing that maxim to life is The Boeing Co.

Indeed, to hear the experts tell it, Boeing is right now fighting two "wars."

There's the so-called "order war" – the year-in, year-out skirmish Boeing fights with its European perennial archnemesis, Airbus SE.

And there's now the "trade war" – or the potential for one – stemming from the Trump administration's institution of tariffs on steel and aluminum – two materials it's mighty hard to skimp on when you're building thousands of jetliners.

If you've been a reader for a long time, you know we'll come back to look at the tariffs and "trade war" impact on Boeing when it's fully warranted.

Today, I want to talk about the more urgent conflict as far as shareholders are concerned: the war raging between boardrooms in Chicago, Ill., and Toulouse, France, right now.

It's all going our way...

Stocks

Get Ready for Another Round of Triple-Digit Gains... Courtesy of the WTO

I remember a bitter global trade dispute from my days as a reporter, back in the 1990s – you might, too.

Rochester, N.Y.-based Eastman Kodak alleged Japanese rival Fujifilm was employing unfair practices – colluding with the Japanese government to create a "profit sanctuary," and erecting trade and distribution barriers – to dampen competition in Japan and abroad, and achieve dominance in the world photo products market.

From what I could see, anecdotally, Kodak's claims had at least some merit. The European Commission agreed, but the World Trade Organization didn't see it that way; Fuji was allowed to continue to press its advantage.

Winning the dispute made Fuji a bigger, bolder company. It invested in itself. I went on a tour of Fuji's Greenwood, S.C. plant, and it blew Kodak's facilities out of the water; it was "modular," modern, more efficient, and more easily able to adapt to fluctuations in market preferences.

Of course, the birth of digital photography soon made the dispute academic. We never got to see how it all might've played out.

Now, I mention all this because the WTO just issued another landmark ruling in a major international trade dispute with billions at stake.

I can't say history is repeating, though – this time, the organization sided with the American firm and against its rival in Europe.

That's great news for American industry, but especially for my readers. They've got the chance to reap a whole new batch of profits – after we've already seen peak gains of 157%.

We're backing the winning horse here, folks...