Please take stock in this secret item making Boeing a saucy buy.. Its the Chinook 47 helicopter. Who wants one? Those who don't like the Likes of Osama Bin Laden. You know the zero dark thirty entourage that flew into Pakistan and swooped up seal team six, secret materials and OBL.
Source: Wikimedia Commons.
Motley Fool Credits and Quotes:"The best offense is a great defense businessOver on the other end of its business model, Boeing stock has a secret weapon that's getting far less attention than the vaunted Dreamliner -- and far less attention that it deserves.
That business is the business of building helicopters -- the CH-47F Chinook heavy-lift helicopter in particular. Over the past week, Boeing has received two blockbuster orders for its big bird. First the U.S. Army granted Boeing a contract to buy 177 Chinooks over the next several years, at a total cost of $4 billion. The Army says it may up that buy by a further 38 helos, potentially pushing the contract value past $4.8 billion.
But that's not all. Within days of receiving the Army contract, Boeing landed a second multibillion-dollar contract -- this time to build an unspecified number of Chinooks for the militaries of Turkey and the United Arab Emirates. Boeing's base contract here is quoted at $3.4 billion in value. If "optioned" helos are ordered on top of the base number, however, the value could rise to just under $5 billion.
Result: close to $10 billion in new revenues for Boeing."
It ain't the A400 but it doesn't have to be a cargo lifter, or troop deployer, or mission compliant tool. Because its much more and in smaller packages with Mission flexibility on a changing battle field. The case of Osama Bin Laden. A super secret stealth helicopter crashed at the compound and battlefield dynamic changed in seconds. The Chinook was held off station somewhere secret, new orders, go in and support the mission hauling out secrets, people and provide cover for evacuation. Everything the A400 could not do in a heavy lift capacity.
Now several countries are wanting the Chinook including the US wanting more. The changing battlefield needs its versatility with a common Rapid Battlefield Management lift.
"Long story short, these are big revenues, and high-margin revenues, that Boeing has coming down the runway. The more Chinooks Boeing can sell, the better it will be for Boeing stock.
Boeing operates as a major player in a multitrillion-dollar defense market in which the opportunities and responsibilities are absolutely massive. However, emerging competitors and the company's execution problems have investors wondering whether Boeing will live up to its shareholder responsibilities. The Fool's premium research report on the company provides investors with the must-know issues surrounding Boeing. They'll be updating the report as key news hits, so don't miss out -- simply click here now to claim your copy today.
Back to the secret in the sauce theme. This saucy Chinook looks like a flying warehouse, has no masculine looking gun pods or rocket launchers. But what it does is ensure mission success under a hostile changing field of war. Going into battle with stealth copters and coming back with the Chinooks is the secret. Boeing has positioned its helicopter as the needed battlefield "Game Changer".
ITS GO TIME
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