Boeing (BA) is due for a quick recovery soon
It is no secret with fears raging on due to COVID-19, Boeing and other airline giants have been taking massive hits. Massive being a 66% decline in the past month. Although it has fallen tremendously, this makes a great buying opportunity. Boeing has adequate liquidity to cover negative free cash flow this year, even if it’s troubled Boeing 737 Max doesn’t start deliveries until the fourth quarter. Looking in the past at 9/11 and the financial crisis of 2008, Boeing and other airlines follow with quick recoveries. “This time may take longer, but we do not believe the demand to fly will be structurally lower and that air traffic growth will return to its historical 2X global GDP multiple in the near-medium term,” analyst Noah Poponak wrote. On Monday, Boeing made a statement saying that the production halt will begin Wednesday across the Puget Sound area and last 14 days. During that time, the company will perform additional deep cleaning activities at impacted sites. With this information, you will most likely be patting yourself on the back in the next year or two for adding this to your portfolio.