FluidFlow wrote:morrisond wrote:Interested wrote:
However much you think the drop in value is down to the crashes or not I doubt it's stopped falling
And if these planes aren't back in the air for months who knows where it might fall to?
What about the lack of orders and deposits and payments for planes whilst these planes are grounded?
Surely it's all outlay now with next to no income?
They had almost $8B in cash on hand at the end of the 1st Quarter and will have Billions available under Stand by lines.
Plus they will make a lot of cash on 767, 777 and 787 Deliveries.
The market value of the stock is irrelevant to Boeing's operating activities - other than they will get more shares per dollar spent in buybacks if the price goes lower.
Over the long term with the backlog they have - the 737 will be a blip in the financials. If Boeing was in trouble the stock would be less than $100 per share. Right now it is just a Market performer.
I don't believe they can actually recognize much of the revenue on Deposits until a lot closer to delivery anyways. There are not too many slots on any lines for years - Sales might just not grow as much.
The real big deal will be the class action law suits. I guess this will already go in the 5billion range, maybe even more depending on the criminal investigation. Here some references:
Again they can handle this easily. The bigger concern is the length of time they have no income and aren't taking orders.
They've gone all in with this plane really