Boeing (BA) Close to $87 Billion Deal

Shares of the Boeing Company (BA) closed down -0.22 or -0.17 percent on Tuesday to $129.66 per share, ahead of news that the company is negotiating with several airlines on orders for Boeingâ s redesigned 777X jetliner. The orders, which are reported to be for a total of 255 aircraft, could be worth as much as $87 billion. The news comes ahead of the upcoming Dubai Airshow, taking place in Dubai November 17th through the 21st. The Dubai Airshow is a showcase for a number of aircraft, including the 777X and the Airbus A380.

Daily Chart
Chicago, Illinois based Boeing Company is an American multinational aerospace corporation involved in the design and manufacture of fixed wing aircraft, rockets, satellites and rotorcraft. The company is divided into four main components: Boeing Military Aircraft, Commercial Airplanes, Network & Space Systems and Global Services & Support. Boeing is among the largest aircraft manufacturers in the world and the second largest aerospace and defense contractor. The company had operating income of $6.1 billion on revenues of $81.7 billion in 2012. The orders for the redesigned 777X jetliners come from four airlines, three of them based in the United Arab Emirates. Qatar Airways Ltd., Etihad Airways, and Dubai-based Emirates airlines. Also, Hong Kong based Cathay Pacific Airways Ltd. will also place an order for 25 777X, which will most likely happen before the Airshow next month. Dubai-based Emirates airlines is expected to order 100 to 150 777X, while Qatar Airways will be ordering 50 of the revamped 777Xs. Abu Dhabi-based airline, Etihad Airways is negotiating the purchase of at least 25 777Xs and is also expected to order as many as 30 more 787 Dreamliner aircraft. Also, the regionâ s first discount airline, flydubai is expected to place an order for 50 Boeing 737s, worth $5 billion. The new orders come as a relief after Boeing suffered a considerable drawback earlier this year with its Dreamliner aircraft. The entire global fleet of Dreamliners had to be grounded for three months, due to a malfunction in its lithium ion batteries. The new revamped 777X comes with the largest commercial jet engines ever manufactured by General Electric (GE), with the first model, the 777-9X capable of carrying 400 passengers for a distance of 8,000 nautical miles. In addition, the plane will use 20 percent less fuel than the original 777. Another 777 model will carry 350 people for a distance of 9,400 nautical miles. While the price of the 777X has not yet been divulged by Boeing, a deal last month for 34 of the jetliners made with Deutsche Lufthansa AG implied a per unit price of $340 million. The Dubai Airshow next month may hold additional surprises for Boeing, with possibilities of additional orders. Boeing stock is up considerably this year, but that does not rule out potentially further upside on the stock. With the large orders from the UAE carriers and other airlines, and with a solid balance sheet, the Boeing Company continues to be wise investment. Other News About BA Boeing, Lockheed team up to bid on new U.S. bomber program Air Force may order 100 new bombers at $550 million each. Boeing says next-generation 737 MAX plane is even more efficient Company says the new planes are 14 percent more efficient. Other Stocks in the News Chrysler profit up 22 percent, confirms 2013 sales outlook Third quarter profit on target for end of the year. New IPad Is Slimmed Down, Speeded Up iPad air goes on sale November 1st. Copyright 2013 by, Inc. InvestorGuide has no control over the sites we link to, is not affiliated with these sites, and cannot take responsibility for their quality or suitability. The news, analysis, commentary and profile information is not meant to be comprehensive, and the data provided is not guaranteed to be accurate. WebFinance Inc., the publisher of this newsletter, is not a registered investment advisor or a broker/dealer. This is not a stock recommendation newsletter but rather a source for investment ideas, and we encourage you to fully research any company before considering investing. The opinions expressed herein are those of the author and do not necessarily represent the views of nor are they endorsed by WebFinance Inc. No employee of WebFinance has owned or currently owns any shares in the company described above. The above is neither an offer nor solicitation to buy or sell any securities. The trading of securities may not be suitable for all potential readers of this newsletter, and the purchase of stocks mentioned in this newsletter may result in the loss of some or all of any investment made. We recommend that you consult a stockbroker or financial advisor before buying or selling securities or making investment decisions. We are not responsible for claims made by advertisers and sponsors. Anyone who makes decisions based on what they read here does so at their own risk and cannot hold WebFinance Inc. (DBA, Inc.) or its employees responsible.

Published on Oct 30, 2013
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

Posted in ...