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Stock #5: Boeing (BA)

It cannot be a good thing for Boeing (BA) to hear that airplanes are once again piling up in the desert. With airlines cutting capacity and cutting orders, the boom for BA appears to be over. At least that was my opinion at the start of the year.

BA did not disappoint. Shares are down nearly 17% so far this year – way beyond the losses of the overall market. Being short, BA would have netted investors a nice gain to start the year.

Recently shares have recovered, but airlines have cut capacity. In addition, Federal Express (FDX) threatened Congress that it would cancel orders if the Free Choice Act becomes law.

The negatives outweigh the positives for BA, and I would view recent gains as being temporary.

For the long term, I would avoid BA.

Get my Q1 Update on my Top 10 Stocks for 2009 here.

Next: Stock #6 – Eastman Chemical (EMN)