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Technology Stocks : Boeing keeps setting new highs! When will it split? -- Ignore unavailable to you. Want to Upgrade?

To: Lyle Bean who wrote (1975)	12/2/1998 10:53:00 PM
From: Joe S Pack	Respond to of 3764

I have been a BA long since beginning of this year. Now I realize this dog is not going to show the amount that I invested any time within couple of years. I think the main problem, which I regret in investing in this company, is that the management is part of the problem. Asian crisis plus other countries in S. America and Africa are not in bad shape. Hence no increase in order. Another problem is real competition from Airbus. Third problem Dollar dominated products are really costly. 4 th this companies fortune is tied to unions which like to have a sweat free ride like the management team. On the positive side I have to comment the management having courage to keep the analysts in dark. Had they leaked the message we will be holding the bag while all fat cats slowly distribute their holdings. Given this 6 or 7 analysts showed a knee jerk reaction this stock will come back to a decent level soon as their clients would like to get a decent lose rather than huge lose. May be they are helping the fun managers to take tax lose now and buy early next year to get some profit at the end of the year. I think in the long run it will be ok. Why? 1) They have $90B backlog orders. Given that current projection of $58B, $56B and $50B for FY 1998, 1999 and 2000 respectively and assuming a decent order continuation for the next year and beyond they should be able to maintain a decent profit within couple of years. I assume that ASEA will recover by the beginning of 2000. 2) Management will use job cuts to scare the union off to get a reasonable contract. 3) Will use this dip to buy back anotehr 50 to 100M shares. This will show a decent profit margin and in fact they can beat the "analsyts project" handily. 4) BA is symbol of US's technological progress and a member of DOW 30 component. So there will be indirect pressure on analysts not to over do these downgrade-upgrade game. Personally I have to rethink my situation and decide after a week or so. All the best for the longs. -Nat