Boeing's Objectives Reveals A Fragile Outflow

Whether there is a hurricane or financial problems, Boeing has exposed a vulnerability with its high minded goals. They want to produce 12, 787 a month, straining suppliers and customers alike. In July Boeing could only deliver eight of its 787. In August Boeing delivered another eight. It’s already September 19, 2018, and the month only reveals four of its 787 delivered.

In total, since July first, Boeing has delivered 20 787's where a prorated pacing suggest it should have delivered at least thirty 787's during this time span. There are 10 787's not delivered, suggesting $2 billion in revenue missed since July 1, 2018. The stockholders are getting nervous, the day traders are jumping around the market like jumping beans.

A Chinese buyer has reached a financial box and can't fund delivery on two more 787's. Supplier problems arise in a seasonal fashion all that with Hurricane Florence. Boeing has reached a perfect storm. Production is slowed to a walk instead of its usual run. Like all convergences, it passes. Boeing will help solve its 787 supply chain hiccup and a customer’s financial plight. Water does run downhill and Charleston once again will have to spray for bug abatement after its swamps lose some water. It will take Boeing until Christmas to make its own perfect storm to cease and fair weather returns. The productivity lost will crawl back with a few deliveries missing in action as it had predicted a robust production year. It now appears it may deliver about four short of its goal by year's end.

Day trader alert, go fishing until December 15, 2018, and then buy Boeing at year-end after all this nonsense becomes a bad memory and someone on the top floor lost a bonus. That's how the corporate world works, there are ludicrous bonuses at stake and a position to continue holding until the golden parachute delivers near a top floor window.

Boeing may delivery 17 units in a month but it needs several months in a row with 17 787'delivered to make up ground before year's end. The Boeing plant parking lot could save the day if enough airplanes store outside awaiting delivery. Delivery is at a different pace than production and that's Boeing story and they are sticking to it. The perfect storm is only a movie and Boeing is making movement happen. They will still fall short but beat Airbus for this year's World's Largest Airplane Maker Award. It happens and how you scrape it off is how you roll!