The legion of mistakes is monumental over the past few years for Boeing (BA) , the nation’s only sizable jet maker.
Here’s just a sample of its woes:
- 2018-19: Two Boeing 737 Max 8 crashes kill a combined 346 people, leading to a grounding of the jets for 20 months in the U.S.
- 2020: The FAA grounds eight 787 Dreamliners.
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- 2021: Boeing reveals that it found empty tequila bottles in a plane being redone for use as Air Force One.
- 2022: Boeing announces delays for two jets to be used as Air Force One, causing losses that will exceed $2 billion.
- 2023: Boeing announces that production and delivery of 737 Max jets will be delayed due to a flawed production process by one of its suppliers.
- January 2024: A door plug explodes on an Alaska Airlines 737 Max 9 flight, blowing a hole in the plane and necessitating an emergency landing.
- February 2024: The Federal Aviation Administration said Boeing lacks “a foundational commitment to safety.”
- March 2024: Boeing Chief Executive Dave Calhoun resigns.
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- April 2024: The FAA announced it will investigate a whistleblower's allegations of manufacturing problems with 777 and 787 Dreamliners that could lead to crashes.
- June 2024: Following years of delays, Boeing sends its Starliner spacecraft to the International Space Station. The two astronauts were supposed to return in about a week. But problems with the craft will keep them there for up to 90 days.
- June 2024: Calhoun tells Congress that Boeing’s safety culture “is far from perfect.
- July 2024: Boeing agrees to plead guilty to fraud for its role in the 2018-19 crashes.
- September 2024: About 33,000 Boeing workers go on strike.
So it’s no great surprise that Boeing’s stock has plunged 60% over the past five years and 42% so far this year alone. If it weren’t the country’s sole big jet manufacturer and an important contractor for the Pentagon, Boeing might be in danger of going under.
Related: Boeing's hardball play with striking workers backfires
Analyst is bearish on Boeing despite sell-off
In any case, TheStreet Pro analyst Stephen Guilfoyle, whose career stretches back to the 1980s on the floor of the New York Stock Exchange, sees Boeing's pain continuing.
As of June 30, the company had $52.904 billion of debt, of which $4.765 billion is due within 12 months, the veteran investor said. Boeing also had accounts payable of $11.864 billion and $8.407 billion in pension-related liabilities.
Technical analysis factors bode ill for the company, too.
“The stock's relative strength is weak, the daily moving average convergence/divergence oscillator is negative, with two of the three components deep inside of sub-zero territory,” Guilfoyle said.
Related: Analyst adjusts Boeing stock price target on strike impact
“The stock has not kissed its 50-day simple moving average since mid-August and has not touched its 200-day simple moving average since last winter, after coming close in late July.”
Don’t stand in front of cannon
On Thursday, the stock traded at $151, its lowest since October 2022. “I see no reason to stand in front of a cannon,” Guilfoyle said.
He cites an Air Force sergeant who expressed pessimism about Boeing to him 40 years ago. “What he told me decades ago has kept me from ever doing more than trade BA,” Guilfoyle said.
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He frequently buys large defense contractor stocks for sustained periods but never Boeing.
“I would not touch the Boeing with a 10-foot pole. I would not invest your money in Boeing, even if I hated your guts.”
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