and niether is the gov't contract headline..
An Obama win is bad for defense business. McCain win not a positive either, as he'll be under even more pressure to reduce war spending if he pulls off a win. Defense industry has had a fantastic 8 year run, so no real upside vs. past 8 years which typically means multiple compression.
Airline bankruptcies have been small to date, but are still coming in (XL Airways for inst) rather consistantly. This puts extra used-plane inventory out there for "foreclosure"-like asking prices. Not exactly the kind of environment a new airplane mfr wants.
That said, Boeing is a fantastic company. Nothing against co, it's just a cyclical coming off a great run, and there's just too many poorly run airlines out there right now that don't need to exist. Tough winter season coming up-- and capital mkts are acting all antsy. Airbus probably not as good a co, but still a very strong competitor.
$61.4 (09/16/08)
