So Boeing after a tumultuous 2019 that included the company's worst year in three decades, after a slew of safety concerns over their flagship airliner, the 737 Max, after a ton of deserved bad publicity on that and after the massive costs of managing that crisis Boeing Stock got beat down like a rabid dog and this was just in 2019. If you adjust the chart for 2020, this earlier sell-off really just looks like child's play. The Play of children. If you thought the prior sell-off from for 46 to 336 was bad, you clearly haven't met Barbra the Beer Bug.

But folks, even prior to Barbara Barbara The Beer Bug, it wasn't looking like it was going to be a good year. it wasn't going to be all berries and roses for Boeing While this was the year that they were supposed to fix their safety issues and reintroduce their flagship jet liners, that was going to be doubtful all along. It was reported in early January that the 737 Max would continue to be grounded throughout the summer, and bad news just keeps coming in. Even two hours ago, it was reported that criminal probes are reopening into their handling of that crisis and this on its own is terrible publicity and extremely detrimental news for Boeing Yet that's really only a small part of their problem.

Barbara The Beer Bug has destroyed demand for planes and wreak havoc on their bottom line. and as airliners around the world. Teeter On the edge of bankruptcy, it's not so surprising that the demand for commercial airlines is down, but this leaves us at a price point approximately 30% of the value that we're at just 14 months ago. and if he brought in the chart cue include the last 20 years.

Boeing The company once hailed as the future of American ingenuity and eternal growth. Well, it's growth hasn't been quite so eternal, has it folks? But enough enough with the useful information. we don't come to these channels to learn something. We don't come to these channels to be informed.

We come to them to make money. So with that in mind in this video, we're going to be talking about whether or not you should buy Ba and whether it makes sense to buy at the current trading price. And the only thing that I ask in return for all of the work that goes into a video like this is that you hit that ravishing like button. Also, take a moment to let me know down below what you think about be a should you buy it Now, should you run for the hills, what should you do? Okay, so to start, let's go ahead and do a quick overview of how Boeing's business model works.

There's a complete psychotic breakdown of the four major components to Boeing's business model. So Numero Uno That's number one for the English speakers that watch me. Numero Uno is commercial airlines accounting for 49% of their revenue in 2019. As you know, 2019 was actually the year prior to 2020.

Numero Dos is Defense, Space and Security Systems. This accounted for about thirty percent of their revenue. Numero Tres is global services. So this global services is basically another way of saying supply chain.

And it accounted for about 21 percent of their revenue. And Numero Quatro is capital. So this accounts for a miniscule amount less than 1% but it's worth it's. worth mentioning because this is one of their official revenue streams.

and here's how they all look when laid out on a convenient chart as you could see Commercial Airlines, Defense, Space and Security, Global Services, and Capital. But if you've been reading the media lately, then you've been reading all the fear mongering people are saying you're an idiot to buy Boeing Because their commercial airline sector is dead, you would think why Hawaii would I take the time to talk about Boeing When you could talk about such great and stable companies like Carnival Cruises or Royal Caribbean, all of the wonderful media monkeys are talking about how it's a much safer bet to buy Carnival Cruises Because it's been beat down so much yet compared to the cruise lines and the airlines for that matter, Boeing's doing a lot better. Whereas something like the cruise lines, they don't have any other streams of revenue right now. At the same time, they'll tell you Boeing isn't a safe bet.

It's dangerous. You should avoid it at all costs. But hey, we know the biggest sector commercial airlines is essentially shot for the foreseeable future. It's not entirely shot as planes are ordered on a rolling basis, but it's largely been decimated I Agree with them there.

However, Boeing is not as bad as other companies. hit this hard by the Beer Bug crisis. Sure, Boeing had a similar drop as compared to many the worst-hit sectors. If you compare this to American Airlines Delta Air Lines Carnival Cruise Lines or all Caribbean so on and so forth.

they've all been hit very, very strongly. But when you compare the amount of being hit, well, Boeing's been hit pretty hard. but it still has most of its revenue streams intact or a large portion of its revenue streams intact. Whereas you compare this to American Airlines or Carnival Cruise Like, 90% of their revenue streams have been decimated completely.

Boeing still has other sectors that they serve, and despite what you may hear, the US government isn't going to magically stop needing defense equipment anytime soon. And the need for supply chains hasn't disappeared either. These are two sectors within their business model that's still largely intact, and while this big one here has been wounded, it'll start coming back when the crisis starts. Do it! So the question isn't whether or not Boeing will be able to weather the storm, but rather why will they be able to weather the storm? Well, that's because they are currently sitting on 24 billion dollars in cash.

It has currently kept most of its essential revenue streams intact, and it is also the second biggest defense contractor for the US government. Now, this is a company that is crucial. It's crucial to national security to the national security of the United States. And if there is one thing that the United States doesn't skimp on, it's the military supply chain.

Talks of bailout had already circulated earlier and if they needed it, the current administration explained they wouldn't let Boeing die, but Boeing's not even dying. They have tons of capital, still have revenue streams intact, and they're ready to weather the storm. But if for some reason the storm eats them up, hey, the US government can help. So from a fundamental basis you can make the case that Boying is far from doomed.

But what what? Charlie is. The biggest downside of investing or trading? Boeing Well, the biggest downside of bided is more technical than it is fundamental. When we as traders assess the value of a position, we look at how much upward potential it has to where it was trading pre-crisis But the first issue with doing this though is first that BA was already trending down and this beat down just rapidly accelerated it. And the second and perhaps the bigger issue with this is the reason that it was trading so high in the first place is because of stock buybacks as part of a tax cut.

Many stocks rallied as corporations used their extra profits to buy back shares, which then made the share prices go up. As you could see during the rest of BA runs prior, it was quite slow and then boom. All of a sudden, we get massive buybacks and the share prices decelerate before dropping off a cliff. But you see share buybacks create sort of an unrealistic picture of growth because perhaps during this period, share price growth was due to actual profits, but during this period it was due largely to stock buybacks.

and you could see that indicated by the fact that it's been up so much. And the third issue is probably one of the least exciting issues. And that's how long it's going to take for BA to weather the storm. Because of course, we know that they're going to weather the storm, but how long will that take? How long will the storm go on? The fact of the matter is that while we could still be in the beginning to the middle of the crisis, the effects of this crisis on airline sales down the road are likely to last a long time.

And you compile this with news reactions still piling in from the 737 max and you've got some serious liabilities. And this is only a problem if you're trying to take a long-term investment in Ba and you don't want to lock up capital. But as zip traders, our goal is not to just long-term invest, it's to take advantage of fluctuations. And the fact that Ba has so many liabilities but also so many potential catalysts for positive news means that we're almost guaranteed to have tons of opportunities to trade off.

of. That's why Ba had been a Zip trader favorite throughout most of 2019. One of the things that we focus on here at Zip Traitor is stocks. They go from oversold to overbought again and again.

That means it's a stock that has so much fluctuation that you could literally just buy in at oversold and sell out it overbought and do that again and again. This sounds like Voodoo to a lot of new folks, but what over seven and Over Bind really represents is just irrational price action. That means irrational selling. An irrational buying.

Since prices are largely a factor of public perception. That means they are largely susceptible to fluctuations based on news alone. You see this run up hither was after Boeing did damage control. This was a breakdown in anticipation of poor earnings.

This as poor running sank in and this was a beat down in anticipation of poor earnings. and then their earnings sank in. again. It's a pattern that tends to repeat itself.

It's the over selling and over buying pattern. It's the overreaction pattern. But the reason that prices react this way is because when bad news comes out, everyone over reacts and sells off as much as possible. and then as it settles it reverses.

And we also saw that in the original weeks of this beer bug crisis during those early weeks in over Seoul to 89 and then had an initial correction as the news settled it. But the key here is that Boeing is very susceptible to over selling and over buying if you are looking at the short term trading side literally just looking at the last 30 days. If you had bought in any time it was oversold and simply held out until it was overbought. you would have made money with one exception.

but the point is the massive fluctuations of Ba make it prime for trading prime like prime ribs folks and the fact that so many news catalysts or in the future mean that this is going to be a great opportunity. At some point news reports will drop that report, the 737s are back in the air and safe. At some point the beer bug crisis will end and commercial airliners will start ordering planes again and at some point Boeing will start fixing their public perception and this will lead to a gradual increase in share prices, but will also lead to overreaction plays and huge spike ability. As Boeing has a huge past of overreacting to news events, they will continue to overreact to news events which means sweet sweet opportunities for us to trade off of.

And sure as all this news settles in and years ago by Boeing we'll have a gradual uptrend. but until then we as trainers will be taking advantage of the movements. anyways. folks.

I Do hope that this video is helpful to you. Let me know in the comment section below whether or not you agree with my analysis and how you're planning on handling Boeing in the future. Remember at the end of the day I Always present my opinions. but I want you to go out and use my opinions to go.

do your own research right. empower yourself to go and learn more about these companies. What makes them move? What makes the companies go down versus go up. What catalysts are you going to be trading off of? And how can you protect your capital when you're trading? And moreover, are you using a trading plan because folks without a trading plan are gonna fail.

It's just as simple as that: You don't just buy something because you feel like it's gonna go up. You buy it because it makes sense based on the previous patterns and based on the catalyst that's happening in the moment. But anyways, if you have any questions, feel free to reach out to us in the comment section below or join us on Zipp Traders Circle on zip Trader Circle which is our free Facebook group. We post nightly watch lists every night by the nature of Knightly, so if you're not on that Facebook circle make sure to join.

link will be in the description below Also, for those of you who are looking to use this peculiar time to learn how to trade, we are still offering $50 off Zip Trader You For folks who go and type in stay Home 20 20 at checkout they home 20 20 is our coupon code and we'll get you that $50 off. You can check out Zip Trader Ucomm by clicking the link in the description below to find out whether or not it is a good fit. Also, if you were wondering what broker to trade these stocks on, we always like to send new traders over to Weeble Weebles. A very powerful platform and I've sent thousands of people over there and I've only got like two complaints and both of them were offended by the name Weeble.

But anyways, they have an excellent platform and if you sign up with our link below, you will get not one but two free stocks. When you both sign up and deposit again, link in the description. Sign up if you're interested in a great broker, Can you waist have a great day? I'll see you in the next video.