Submitted by admijn t3_107djis in wallstreetbets
Hi Chads,
Listen I’m not even allowed to write this DD since I’m a smooth brained mouth breather and even don’t know how to order a Jr. cheeseburger at Wendy’s without spilling all my quarters on the floor.
I want to talk to you about Boeing. The big airplane, space and defence contractor who’s actually doing pretty well the last couple of weeks compared to the overall decline in the markets.
In my simple mind this raised a red flag. I once learned that in any recession climate never invest in airplane or construction companies because they are the first ones to lose big.
“If there's an S&P 500 stock that might surprise investors with its demonstrated poor track record in recent recessions, it's aircraft maker Boeing.
Shares of the company that's part of a near oligopoly for commercial airplanes is a dud in recessions. Shares have dropped an average 40.1% in the past five recessions. That's the worst showing of any S&P 500 stock in that time. It's surprising, too, as Boeing typically carries a big backlog of plane orders.”
Allright, so we have a down streak of 5/5 for every past 5 recessions.
So how is Boeing doing at the moment?
​
​
As you can see they are climbing out of the recession hole on a steep incline.
But it doesn't make sense. They missed all their quarterly earnings for the past 4 times.
​
Also their R / E is not looking great.
​
Earnings are coming up on the 25th this month. That’s also pushing the price at the moment.
The smoking gun on this DD is that Cramer told us to buy Boeing at the dip. As we all know reverse cramer is a universal truth, I think this company is not holding up this ramp and will decline in value before this month is over.
​
​
As for this morning I am short on Boeing. I bought a BA Turbo short leveraged 4.5x position with a stop los of 259.90. A Turbo is basically a Barrier Option. Wildly available for Europoor people like me.
TL:DR
Boeing is going down. Boeing always goes down in a recession. Cramer told to buy = time to sell.