Is Boeing Stock a Buy in 2019? - (BA Stock Analysis & Review)

Welcome to my world of stocks!!!
My name is Ale, and today, we are talking all about Boeing stock to see if it is a buy in 2019 (ticker symbol BA). Please hit the like button if you enjoy this Boeing stock analysis and review! Thanks :)

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***Please be advised that I am not giving any financial or investing advice. I am not telling anyone how to spend or invest their money. Take all of my videos as my own opinion, as entertainment, and at your own risk.***

[mikl]

Hello! Thanks for your videos analysis. 8 months after the ground, the production of 737 will be temporary suspended, the stock crashing again and the re-certification might happen next year only. What do you think now?

[trumpie]

Below 200 day MOA is good
For me close to strong Buy after 16 Aug 2019 @ $322

[scottscriticalmass]

Excellent analysis and info Ale... Thank you! I missed out on the huge run in Boeing over the past few years and would jump at the chance to own the stock at the right price. I love duopoly situations in strong industries! With that said, I expect significant downside in BA from current levels over the near term. I see no reason this can't retrace a year or even two of stock appreciation, which could take us anywhere from the low-high $200's. The numbers are obviously just guesses, but sentiment can tank a stock in fairly short order and BA seems ripe for a sentiment hit. So... Boeing should be a great buy and hold over the next decade-plus. Over the next 12 months however, there's no telling what'll it do. As it stands today, I'll likely initiate a position if it dips near $300 which is quite a drop from here. We'll see if I get the chance. Good luck folks...

[weiluntan]

Ale, given that the stock has dropped so much, any thoughts on this company?

[inquirer]

Another fine video as usual. Boeing is a good solid stock to own long term. The question is how much lower will it go and how soon will the airplane get back up in the air. I would like to see it drop to around 350 in order to jump in. Once this bad event passes and the plane is back in action, Boeing could rise back to over 400.

[DeezSkates]

Yo, Ale! You are growing, bro! When I subbed to your channel you had like 3k and now you’re over 20k! Congrats! I like your financial information and that’s why I’m here, but also as a YouTuber I really appreciate the work that goes into your videos and the artistry and style you follow. Also really love how well you handle the audience. Cheers!

[kavinguo]

Hi Ale, is this the good time to buy BA now, will it go up to 300 soon?

[neerajkhera]

I have bought 100 shares of Boeing..I am looking for really bright future

[anttilehtoranta]

Hi, the story is inaccurate in the 1) description of the Ethiopian air crash, 2) how the MCAS (pronounced em-cas) works, and whether 3) the 737 MAX has alternatives in the Boeing line-up.


First, the 2) part.
a) the "STAB TRIM" cutoff switch which the pilots used (as per Boeing instructions) does not actually cut off the MCAS, it however cuts off the power of the electric motor that drives the jackscrew that changes the angle of the horizontal stabilizer (i.e. the horizontal part of the tail).
b) the MCAS is always active (as long as the flight computers are active), there is NO switch to just deactivate the MCAS. The only thing is that the MCAS operates is by giving commands to the STAB TRIM electric motor, hence if you cut the power to the motor, the MCAS commands have now effect. In fact the flight data blackbox data showed the MCAS also trying to command the STAB TRIM during the time it was cutoff.
c) when you cutoff the power to the electric motor driving the jackscrew, you can not use the normal trimming switch (because it needs the electric motor), but you have to manually rotate the trim wheel. If the airspeed is high and the trim is off (resulting in heavy aerodynamic forces), it may be impossible to effect sufficient force to move the wheel against the aerodynamic load.


Second, the 1) part (description of accident)
a) If the AOA-sensor malfunctions, the systems that calculates the airspeed are likely malfunction (they need the AOA-sensor data for the calculation)
b) The Boeing mandated procedure for the pilots in airspeed error, calls for increasing thrust to a setting that prevents stall at any elevation (this would explain why the plane was at such a high speed, also note that the plane tells the pilots that the airspeed indicators are unreliably at this stage).
c) Now, the faulty captain side AOA-sensor may also lead to the MCAS system to interpret that the plane is pitching up too steeply (also the thrust settings need to be high, and the autopilot has to be switched off). If so, the MCAS will apply nose down trim for 9 seconds at a time, then if after 5 seconds it still detects too steep nose angle it repeats.
d) the MCAS had run this 9 second interval for a few times before the pilots hit the STAB TRIM cutoff switches
e) however, at this stage the plane was out of trim and the airspeed was already pretty high (probably the captain was pulling the yoke with all his force), and even with the co-pilot doing his best to rotating the trim wheel manually it might not have moved.
f) this is speculation, but it's likely that the pilots tried putting the STAB TRIM cutoff switches in the normal mode to use the trim switches so they could trim the plane properly
g) as the MCAS was giving repeated nose down commands to the electic motor, this lead to the plane nose going down even further.


That is, it appears that the pilots were following Boeing instructions (until the point where they put the switches back on), the problem being that following the Boeing instructions lead to a situation where they could not control the plane... Mentour pilot had a pretty ghastly video about this (done in a simulator), however, he took it off since he thought it didn't fit his channels purpose of being _positive_ about airline industry (i.e. reducing fear of flying etc.). Hence, lawsuits are to be expected... The good thing is that, this should be fixable by software updates (i.e. instead of inexplicably making the MCAS dependent on a single sensor, make it use both sensors. And also putting some limits on how much the MCAS actually trims the plane, while current system had no effective limits.


The sad thing was that the Boeing military tanker plane Pegasus KC-46 had an MCAS that uses _both_ AOA-sensors, and is supposed to cutoff if the pilots yoke inputs are opposite to the MCAS (i.e. it does not fight against the pilot inputs). (The KC-46 is based on the 767 model but, because its a tanker, it needed the stability system, because moving fuel could result in bad trim situations). Because the 737 is a different plane, they probably could not use the KC-46 MCAS directly in the 737MAX and opted for a cheaper way of adding the MCAS to the previous 737 flight computers, and hence ended up only making the system rely on a single AOA-sensor. This cost cutting likely ended in two crashed planes and a lot of bad publicity.


Third, 3) are there alternative in the 737-lineup to the MAX -variants.
* Sure, the older 737 Next Gens (or 737NGs) a viable alternative
* All pilots rated for the 737-MAX's should be able to fly the older models (in fact many 737 pilots probably have more flight hours in the NG than in the MAX)
* The problem is that 737NGs use more fuel -- and hence it's more expensive to operate them
* Also the 737MAXs tend to have slight higher ranges than the older versions, although Boeing did do ER (extended range) versions of the older NG models as well, thus some routes flown with 737MAXs may not be flown with standard 737NGs (they would at least require ER models), and hence for airliner logistical reasons (leasing ER models in big numbers at this stage may be pretty difficult) may be flown with bigger planes instead.
* In 2009 (Jan and Feb delivery data from Boeing website): the deliveries for 737MAX were 46 planes and 737NGs were 20 planes.

[mst]

You didnt mention that shareholders sued Boeing, and also families of victims started to sue Boeing. Besides there is reputationdamage. I wohldnt pick Boeing now/already

[dannyrod]

How do you know how much to put into a stock considering your portfolio, versus partial investment now and waiting to buy more shares down the road?

[ichoudhury]

I was watching Boeing after that day after Christmas 2018 drop and was kinda sad for at least dipping into it. It was climbing ever since. So due to those unfortunate event, when the price came down, I decided to pick few ( even the situation is way worse ).

[miltube]

Cheers Ale! great intro.
have been thinking about investing in BA since the crash but never could justify the financials.
appreciate your view and i am going to hold off for now.
any chance you have considered JNJ?

[didacmateu]

Could you please do an analysis on $BIDU and $MOMO momentum? if its worth to buy or we should wait for a good downside?

Thanks in advance buddy

[walidhalabi]

Brother what do you think about (nipexy)Nippon Express co intersting company in north America. Thank you

[eisaqureshi]

What do you think about airbus, they are the competition. Would they make good replacement ??

[danielkariti]

Thank you for the analysis on BA
What do you think about $NOK as a 5g play?

[plo]

Why didnt you factored in friday's after hours breaking news of lower guidance. Game changer and balance sheet buster! Institutions/HF now have a very good reason for taking some profits and no one is factoring in the lawsuits costs, settlements and subpoenas.

[sidneyburs]

Hey, Ale
I wanted to ask you were do you get all the information especially of future investments and the nice graphs all the time? :)


As always it was a great video.

[dzfromtheburgh]

What site do you get the dividend scorecard from?