Cramer’s Mad Dash: Boeing

Key Concepts

• Boeing's potential for significant stock increase.
• The importance of delivery numbers for Boeing's success.
• Kelly Ortberg's role in improving Boeing's operational rigor.
• Boeing's strong cash flow position.
• The positive impact of a "no-nonsense" industrial CEO.
• Bernstein's price target increase for Boeing to $282.
• The significance of Wartburg's deal in Boeing's turnaround.
• Boeing's historical importance as an American company.
• Boeing's impact on trade and exports in dollars.

Boeing's Potential Growth

The discussion centers on the bullish outlook for Boeing (BA), with analysts from two firms pushing the stock. A key factor driving this optimism is the apparent resolution of concerns related to the Air India incident, which seems unrelated to the 787 Dreamliner's design. This removes a significant obstacle, allowing investors to focus on Boeing's core strength: its ability to deliver aircraft.

Delivery Numbers and Operational Rigor

The number of planes Boeing can deliver is crucial to its financial performance. Kelly Ortberg is credited with instilling a level of operational rigor that ensures Boeing can meet its delivery targets as production ramps up. This ability to deliver is seen as a key driver of Boeing's value.

Financial Stability and Leadership

Boeing is described as having no cash flow problems and being led by a "no-nonsense" industrial CEO. This leadership is expected to guide the company towards significant stock appreciation, potentially adding 30, 40, or even 50 points to its value.

Bernstein's Price Target and Wartburg's Deal

Bernstein's price target increase to $282 is highlighted as a significant event. The discussion also emphasizes the importance of a deal orchestrated by Wartburg, which is considered a pivotal moment in Boeing's turnaround. This deal is described as "the greatest deal of the century" and credited with generating substantial profits for investors.

Historical Significance and National Pride

Boeing is portrayed as a great American company with a rich history. The speaker references the World War Two museum as a testament to Boeing's legacy and contributions. The company's impact on trade and exports, conducted in dollars, is emphasized as a key driver of the U.S. economy.

Conclusion

The overall sentiment is highly positive regarding Boeing's future. The company's operational improvements, strong leadership, and historical significance are seen as catalysts for continued growth and stock appreciation. The discussion suggests that Boeing is a juggernaut that is back on track and poised for further success.