The Boeing Company (NYSE: BA)
The Boeing Company (BA), an airline company saw its share price drop over 10% yesterday on news of an SEC probe investigating a whistleblower complaint regarding Boeing’s accounting methods. The probe is looking into Boeing’s two best known jetliners the 787 Dreamliner and 747 jumbo aircraft, they are specifically looking into whether Boeing properly accounted for the cost and expected sales for the two jetliners. The SEC probe comes a day after Boeing announced that they will cut their workforce so they can lower costs and better compete with Airbus.
The Boeing Company Spokesman Comments
“We typically do not comment on media inquiries of this nature,” Boeing spokesman Chaz Bickers said in an e-mailed statement. SEC spokesman John Nester declined to comment. Bloomberg
Spokesman Comments on Job Cuts
“To win in the market, fund our growth and operate as a healthy business, we are taking thoughtful steps to reduce the cost of designing and building our airplanes, part of which involves evaluating our employment levels across all of commercial airplanes,” Boeing said after its Airplanes chief, Ray Conner, announced the move in an employee webcast. “We will start reducing employment levels beginning with executives and managers first.” Reuters
BA Technical Analysis
BA gapped down in price yesterday to $113.35, down from the prior day’s close of $116.36, which is a 3% decrease in price. Taking a look at the daily chart we can see that the last time BA traded below this price level we have to go all the way back to September 8th, 2013 when it traded at $111.33. BA has gapped down to reach new 52 week lows on news of SEC probe and job cuts. BA has a float of 666.07 million shares and is trading over 6 times the normal daily trading volume. BA did reach pre market lows of $133.08, but bounced back $0.27 at the open. For trading purposes, my entry point short would have been $113.25 looking for a run down to $110. My stop loss would have been $113.50, fearing anything above that and the stock would start to fill in the gap down.
The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. The company operates in five segments: Commercial Airplanes, Boeing Military Aircraft, Network & Space Systems, Global Services & Support, and Boeing Capital. The Commercial Airplanes segment develops, produces, and markets commercial jet aircraft for various passenger and cargo requirements, as well as provides related support services to the commercial airline industry. This segment also offers aviation services support, aircraft modifications, spares, training, maintenance documents, and technical advice to commercial and government customers. The Boeing Military Aircraft segment is involved in the research, development, production, and modification of manned and unmanned military aircraft and weapons systems for the global strike and vertical lift, and unmanned airborne systems programs, as well as mobility, surveillance, and engagement. The Network & Space Systems segment engages in the research, development, production, and modification of electronics and information solutions; strategic missile and defense systems; space and intelligence systems; and space exploration products. The Global Services and Support segment offers integrated logistics, including supply chain management and engineering support; maintenance, modification, and upgrades for aircraft; and training systems and government services, such as pilot and maintenance training. The Boeing Capital segment facilitates, arranges, structures, and provides financing solutions, such as equipment under operating leases, finance leases, notes and other receivables, assets held for sale or re-lease, and investments for its commercial airplanes customers. The Boeing Company was founded in 1916 and is based in Chicago, Illinois. Yahoo Finance