PART ONE
From the mid-1960s to the late 2010s BOEING’s cyclical stock price tracked a sustainable increase in value over multiple Bull & Bear cycles with a culture of Engineering & Design excellence that produced multiple generations of commercial jet aircraft with outstanding quality, performance and safety. In recent years, the problems with the 737 MAX reflect how the corporate culture has seemingly abandoned this proven long-term performance approach in favor of maximizing short term earnings through cost cutting, reshuffling its balance sheet and upgrading older aircraft models instead of launching new generation aircraft more conducive to integrating new technologies associated with advancements in commercial aviation. The origins of how and why BOEING has veered off course, thereby leading to a sharp decline in its reputation and stock price will be explored in my upcoming article “VEERING OFF COURSE AND LOSING ALTITUDE –
How Boeing’s Problems With the 737 MAX Have Caused its Stock Price to Fall.” Today’s Boeing is NOT the company that produced the 50+ year record of sustainable shareholder value depicted in my Bull & Bear chart attached to this transmission.