18 ordspråk av Cai Von Rumohr
Cai Von Rumohr
Commercial and defense companies are apt to deliver very solid results again in Q4. But upside momentum remains greater for commercial plays, while defense stocks are stable, defensive cash redeployment vehicles.
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Does this mean that Boeing will lose business to Airbus? If the strike does not last more than three months, that would be unlikely.
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Execution is the story. It's not just what the orders are. It's what you can make out of them.
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Funding for weapons has been moving up for four years. This creates momentum for bigger numbers in the future.
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I assume part of it has to do with the budget.
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I don't lose any sleep whether they miss by 2 or 6 or 8 cents. The concern is how this ends, do they come back as one team, or do they come back one at a time with an attitude. That could impact [on whether] you recover in the quarter.
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I think under other circumstances it's possible this is something the board might have overlooked,
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I would guess you're not going to see a lot of folks announce orders during this period for Boeing products.
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In normal market it could get back to 60.
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It's like doing a total 180. It's like saying: 'Everything I've done in my career until now has been wrong.
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Profits were good, cash was great, and the guidance was good.
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Spinning it off kind of just gives the problems to your shareholders, and a joint venture really doesn't do much for you. The optimal plan would be to sell it and use the cash to reduce debt.
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The union feels that business is better for Boeing and that the union has more leverage.
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There's probably going to be more money coming to the industry, but it's difficult to put precise numbers on it right now.
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They're going to get good points for that. But I think the issue is that Harry had done enough good things in terms of commercial (aircraft) marketing and cash redeployment that it will be difficult to maintain that momentum in this transitional period.
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