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HotOtc Featured Company: The Boeing Company (BA) Projects 2009 Earnings to Grow 20%

Some industries are just high finance at all levels. There are big dollars, big government and big paydays across the board when things all come together. The opposite is also true when those paydays turn sour. But, when times are good nobody complains and everybody gets on board for the ride.

The Boeing Company Inc., a designer, manufacturer and marketer of aviation and advanced design technical products, works to offer aviation and advanced technical products to the world’s governments and private concerns. The company’s primary product lines deal with planes of military, passenger and cargo designs. Other product lines offer advanced design/manufacturing and implementation of one-off project designs. Service programs also constitute a good portion of the company’s revenue.

The company has been operating in a good position of late given the competitive nature of the industries it serves. Its primary aviation competitor, Airbus, is a heavily subsidized manufacturer and competes vigorously on all aviation contracts. However, the company made some strategic decisions in the past that are now paying off. Where its competitor bet its future plane offerings on number of passengers carried, The Boeing Company bet on fuel efficiency and the need for longer haul routes. At present this is paying off handsomely given current fuel issues and back orders. It has also placed the company in a certain position of power as it has stumbled on planes delivery schedules. Airlines are being forced to wait for their planes but have little recourse. Investors see this situation playing out and are keenly aware of Boeings position to the upside. Backlogs are currently at $346 billion and growing.

Further benefiting the company is a slight controversy regarding a large military order with the US government. The government recently gave a large contract to Airbus and not its domestic counterpart Boeing. Needless to say, many US officials were not all too pleased and have ordered a review. A rework of the contract would increase backlog for the company even further. The combination of these events and solid contracts in other areas has resulted in a 38% net increase in the company’s 1st. quarter income and a $1.62EPS. Although this particular industry is prone to sever swings in its business cycles, it is currently at the top of its sales and management game.

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