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Defense Stock # 5 – Boeing (BA)
Boeing (BA) is having enough trouble with the civilian side of its aircraft making business. A horrible
recession and fewer travelers hurt the domestic airline business. Idle planes sitting in the dessert do not help makers of aircraft. What, then, are
we to make of the decision to halt orders of C-17 transport planes to no more than the current 205 planned? Those transport planes play a huge role
in a military implementing preemptive foreign policy. Not so much for a military based on self-defense and diplomacy, as we are likely to see with
Obama.Current BA stock valuation is supported by current contracts. A drop in the government side of business will push shares of BA lower. Weakness in
domestic air travel will pressure shares as well. There is simply not much to like with BA today or in the near-term future. I would sell BA shares
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