Boeing (BA) appears to have arrived at a long term top. This synchronizes with design problems with its new 737 model that accounts for about 30% of present and future income, causing all those in service to be grounded. The company has admitted that it is at fault, causing two totally fatal plane crashes.
There is clearly some severe negligence involved. The claims will probably be significant. The modifications may not receive approval, since the clandestine control system was an afterthought when it was found that the plane was not safe.
The families are no doubt being informed not to sign anything until the official inquiries are complete and the opportunity for class action is looked into. Downside potential for the stock is significant. Boeing will no doubt be the major buyer of its own stock at this time in an effort to stem the impact of selling. A practice that used to be unlawful for obvious reasons. Efforts to obfuscate reporting of the facts can also be expected but will only serve to delay the bear trend that is now underway.
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