This Insider Just Snatched $300,000 in Shares
To say that Boeing Co. (NYSE: BA) is having a rough time right now would be an understatement.
On Jan. 21, Boeing stock dropped another 4% on news that clearance for the troublesome 737 Max won’t happen until the middle of the year.
This will force airlines to seek alternatives.
Boeing has officially stopped all production on the 737 Max. On top of that they’re seeking out a $10 billion loan amid a huge revenue drop
On the other hand, Boeing’s largest competitor, Airbus (OTCBB: EADSY), has taken full advantage of Boeing’s misfortune — snagging up orders left and right.
And their stock shows it…
Since March 10, 2019, when the Ethiopian Airlines 737 Max crash occurred, Airbus stock rose nearly 30% and Boeing stock lost over a quarter of its value.
But I’m here to tell you it’s not time to dismiss Boeing just yet. In fact, it may be the perfect time to build a position…
A Story of Opportunity
The 737 Max crisis has been the worst in Boeing’s history.
It’s cost the company billions of dollars and led to the firing of its CEO.
But for you, this is a perfect opportunity to grab up shares while they’re heavily discounted.
Take it from insider Niel Golightly, senior vice president of communications at Boeing…
Last month, on the same day Boeing shares dropped 4%, Niel snagged over $300,000 worth of shares.
The last time Boeing stock was this low was late 2018, when the whole of the markets sold off.
So what about Airbus? Aren’t they still a huge competitor?
Well, yes and no.
You see, Airbus still has a backlog of 7,482 aircraft.
They’ve made strides to increase their production efforts recently…
But even if they doubled their yearly production, it would take over four years for them to clear that backlog — and that’s if they don’t take any new orders.
Once Boeing gets its feet moving with the 737 Max, things will return to normal and the stock will shoot up.
And when it does, you can be there to profit.
Remember, Boeing isn’t going anywhere. It’s a well-diversified company that gets revenue from several sources besides commercial airlines.
While commercial airlines make up about half of its revenue, the other half comes from the U.S. government and other private buyers.
And for the last three years, Boeing was the second-largest defense contractor to the U.S. government.
Furthermore, this isn’t the first time the company’s faced adversity.
It’s survived the dot-com bubble, the Great Recession and 2018’s sell-off, when it lost a quarter of its share price.
And with a not-too-shabby 2% dividend yield, you’ll be padding your account while it gets its act together.
Here’s to growing your wealth,
Chief Income Expert, Mike Burnick’s Wealth Watch