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Given my musings over the past 12 months, my pick for next year's best stock might surprise you (or maybe it won't). But everything at Boeing (NYSE: BA)has gone wrong for so long that something's bound to go right eventually.
2011: The year in preview:- This past year has been one long, uninterrupted disaster at Boeing. There have been delays and disruptions in the Dreamliner program, scandal and a suspected loss at KC-X, and cutthroat cutbacks in Pentagon spending, which threaten the defense business as a whole. Boeing either masters the soldering iron. Let's start with the cascading systems failure that began in a Boeing 787 electrical panel last month. Pundits are predicting that it will take Boeing anywhere from six to 12 months to fix what went wrong and make upgrades in software and wiring schematics.
If Boeing should beat the odds here, and deliver its first Dreamliner to Japan's All-Nippon Airways at any time in 2011 let alone at a date approximating its promised mid-first-quarter 2011 well, you can imagine the elation that will break out among Boeing investors. A promise fulfilled, rather than yet another vow broken? That's the ticket. But even if the worst happens, and getting the 787 [url=http://www.teatrodeoro.com/hollisterde.php]hollister deutschland[/url] ready for prime time takes as long as analysts fear, Boeing's got other tricks up its sleeve to boost the stock [url=http://www.rtnagel.com/louboutin.php]louboutin pas cher[/url] price. The company's already proven itself willing to wheel and deal if it'll help it steal some of Lockheed Martin's(NYSE: LMT) hope-for F-35 orders, and persuade the Pentagon to substitute orders for cheaper Boeing F-18 fighter jets instead.
And then there's the old 777 switcheroo. Boeing recently parlayed an embarrassing delay in 787 delivery into big profits in Russia, agreeing to sell extra 777s to Aeroflot to tide it over while it waits for the 787 program to get back on track. In one fell swoop, Boeing doubled the value of Aeroflot's order book; not bad for a day's work. Consider, too, the multiple announcements of significantly accelerated production of the company's 737 Next-Generation aircraft. Boeing says a rapid ramp will have it churning out 737s at the rate of 38 a month by 2013, and rumors are it could go to 40. While that would have positive knock-on effects for suppliers like United Technologies (NYSE: UTX) and Honeywell (NYSE: HON), certes, the biggest beneficiary would be Boeing.
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