Login

Boeing, Air Taxis and The Jettsons

Dear Rundown Reader,

Another opinion on GE:

“I think GE shares will tank some more before we find a bottom.

“First, there is uncertainty of what the new CEO will do and second, we could have market downturn that would accelerate the selling pressure on the stock.

“I think longer term there are some great prospects for this, but right now with the market high you don’t want to buy a stock that is blemished.”

The reader makes a fair point. Looking at GE’s price this morning, it’s still hovering around the small bump it got from the CEO announcement. A wait-and-see approach is probably smart.

We’d like to pivot to Boeing — the airplane manufacturer couldn’t be more different from GE.

It’s stock is moving up and to the right. It’s been awarded several government contracts and it’s actively pursuing M&As.

Yesterday, Boeing’s CEO made the rounds, talking up the air-taxi project it’s spearheading with recent acquisition and drone pioneer Aurora Flight Sciences.

A headline at Bloomberg says: “Air-Taxi Prototype Will Be Ready for Takeoff Next Year.”

flight

Credit: Aurora Flight Sciences

“Think about a future in which you will have three-dimensional highways to relieve traffic congestion,’’ Boeing’s CEO Dennis Muilenburg says.

The Jettsons were forward-thinking.

“So we’re working on both the ecosystem — the regulatory framework — and the new vehicles. All of that is happening now.’’

Just when you were getting used to Uber. And forget autonomous driving. This is autonomous flying.

So would you take a spin in an air taxi?

We appreciate your feedback.

Your Rundown for Thursday, October 4, 2018…

Beyond Boeing…

Boeing’s piqued our imagination.

Beyond that, what’s the best way to invest in the company this fall?

Boeing announced in July that it would assume 80% ownership of Brazilian airplane-maker Embraer Aircraft’s (NYSE:ERJ) commercial division.

To bolster its defense division, Embraer and Boeing are also partnering to produce a new military plane called the KC-390, a tanker/transport jet that would be partly assembled in the U.S.

The deal would compete with Lockheed Martin’s C-130, a relic of the 1950s.

While Embraer’s stock’s been choppy, the partnership with Boeing should give shares a lift.

Looking at ERJ from a seasonal perspective, we spotted this chart and table:

While you might want to buy and hold — shares are a bargain right now — the best trade situation is to buy in mid-November and sell in mid-February.

This trade’s locked in an average return of 7.04% above the S&P 500 Total Return Index for the past 17 years. That’s the average. Full disclosure: It’s worked 15 of the last 17 years.

Those odds aren’t bad. And they might get better with Boeing on board.

Market Rundown for Thurs. October 4, 2018

S&P 500 futures are down 21 points to 2,904.44.

Oil’s staying above $75.

Gold’s up $7.40 to $1,210.30.

Bitcoin, too, it up by $73 to $6,565.68.

Have a great day. We’ll circle back tomorrow.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

You May Also Be Interested In:

Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown. Aaron’s been with Agora Financial/Seven Figure Publishing for 13 years. He's been covering technology and markets for over a decade.

View More By Aaron Gentzler