Company Overview and News
I am expecting that it can take up to 1-1.5 years and in some cases even 2.5 for MoUs to materialize. (16-0)
On the 4th day of the Dubai Airshow, Airbus (OTCPK:EADSF) stole the show announcing a commitment from Indigo Partners to order over 400 single aisle jets to support the rapid expansion plan of low-cost carriers in Europe and North & South America. The deal, valued close to $50B at list prices, obviously is good news but I think today’s news also shows that there is no future for the Airbus A319neo on commercial level. (3-0)
On Day 3 of the Dubai Airshow Airbus (OTCPK:EADSF), Boeing (BA) and Bombardier (OTCQX:BDRAF) all received commitments for their jet aircraft. If you missed the order and news overview for Day 3, you can read it here. The article also contains links to the overviews of the previous days. (1-0)
On the first two days of the Dubai Airshow, Airbus (OTCPK:EADSF) had nothing to celebrate after a potential order for the A380 from Emirates was not firmed. Meanwhile Boeing (BA) secured orders and commitments for the Boeing 737, Boeing 777 and Boeing 787 and possibly also the Boeing 747. (4-0)
Little to no news on Defense side, focus on landing key contracts for F-18 and development of programs key to BDS future. (61-0)
Four companies are due to kick off Dow 30 earnings today as the DJIA comes within a trading session of the 23,000 milestone. Investors will be looking for signs of improvement within Goldman Sachs' (NYSE:GS) fixed income division and are expecting IBM to report another straight quarter of revenue declines after the bell. Traders will also be sizing up UnitedHealth (NYSE:UNH) a few days after President Trump scrapped Obamacare subsidies, as well as results from Johnson & Johnson (NYSE:JNJ) following its acquisition of Actelion. (348-0)
In a previous article, I had a look at the preliminary ruling from the Department of Commerce which recommended a 300% tariff on Bombardier (OTCQX:BDRAF) C Series deliveries to the US aircraft market after a complaint from The Boeing Company (BA). (61-0)
Bombardier did not provide the DoC with requested information resulting in an anti-dumping tariff as initially requested by the petitioner. (59-0)
Boeing has not offered any Boeing product to Delta, making potential damage to the US industry inflicted by C Series deliveries to Delta doubtful. (60-0)
220% tariff only deals with the illegal subsidies; Tariff is significantly higher than the 80% Boeing asked for countervailing. (1-0)
Tariff seems excessive and current C Series family forms no threat to Boeing as they have no competing product. (62-0)
Developing a new jet to address the small single aisle market does not remove the threat of competition penetrating the large single aisle market. (3-0)
Boeing's decision not to depart from the council should not be hurtful to the company's share prices, or at least its impact should not be lasting.
Markets are pushing for all time highs, and skepticism continues to grow about the current state of the markets. If you look at fundamentals, the markets do not exactly look that bad, and there are some areas of opportunity. However, there are other factors to look at as well. Certain metrics should make investors wary to go all in. Unemployment numbers in North America look good but looking in closer shows that employment numbers look good mostly because of part time or temporary jobs that are heavily dominated by the restaurant or tourism industries.
Boeing's (BA) improving position in the airline market, in combination with fast growth of said market, will allow for improving fundamentals for years, and the company's owners are poised to profit from that as well, via growing income streams and share price appreciation.
2017-10-28 - Wilton
2017-10-25 - Wilton
2017-10-10 - Wilton
2017-10-09 - Wilton
2017-08-25 - Wilton