<<IMHO, two catalysts to look for(one mentioned before): 1) change in
management and 2) changes in operating strategy at Airbus.>>
Very perceptive. And you have pointed to the real reason I bought Boeing. Thank God I didn't do it three weeks ago, when I made the decision and started watching the stock. When it dropped 8 points in a day, I pounced.
1) Change in management. Its necessary, and I think its coming.
2) Change in Airbus strategy. This is the big one. Airbus's strategy is changing. They are about to implement a pay for ROI type of bonus plan. And the company is making as many planes as they can make, and they have achieved their market share goals. They have no incentive to discount. I saw them present at a conference three weeks ago and it was clear to me (if you didn't know, I am an airline analyst for an investment firm) that Airbus has changed its stripes. The head of U.S. operations said that they are going for profitability now, and slipped and referred to Boeing as its "colleague" rather than its competitor. Call it Freudian, but I cannot imagine Airbus saying anything like that a year ago.
And if we've beaten this one to death, how about another question. Is Federal Express a Buffett stock? Or rather, will it be?
Jim |
