Model Airplanes

• Boeing was downgraded to underperform due to a $15 billion discrepancy in its FCF projections.
• The discrepancy can also emanate from underestimating the disruptive power of new competitors.
• Besides valuations and competition, Boeing still has an impending SEC probe which might prove detrimental to the stock’s upside momentum.

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Boeing: The $15 billion Discrepancy

The bearish sentiments for Boeing, last week, came from Ronald Epstein and Kristine Liwag of Bank of America (NYSE:BAC) over concerns that Boeing’s (NYSE:BA) new 787 Dreamliner was not profitable enough for the company. As a result, Bank of America/Merrill Lynch downgraded Boeing to an equivalent of a sell rating when they downgraded Boeing from neutral to underperform. Although the analysts raised the price target on Boeing by $10 to $125, the new price target is still below Boeing’s current stock price.

“The bull thesis on the stock is predicated on strong free-cash-flow generation in the out years, largely driven by the 787 Dreamliner, in our view. Boeing’s current outlook assumes that the 787 will generate $29 billion of cash by 1Q22, while our analysis shows that Boeing will only generate $14 billion of cash,” wrote analysts Ronald Epstein and Kristine Liwag in a note to clients on Wednesday. “Boeing will likely take a charge on the 787 program and/or extend the block size…Boeing will likely offset

Article source: http://amigobulls.com/articles/boeing-stock-why-the-bank-of-america-downgrade-makes-sense

Anyone who’s ever dreamed about test driving a high-performance sports car as it rolled off the assembly line should meet Rick Smith.

Smith, an Athens native, had a similar opportunity Monday, though it wasn’t a sports car. Instead, it was the first Airbus A321 built in Alabama and delivered to JetBlue. After a large ceremony at Airbus’ manufacturing facility in Mobile, Captain Smith flew the plane to a JetBlue maintenance hangar in Lake City, Florida, to be outfitted with Wi-Fi and other entertainment capabilities.

The brief flight was made more special because Smith’s father, Kenneth Smith, and Rick’s wife, Kimberly Smith, were along for the flight. When asked how he was selected to be the first pilot to fly the first Airbus manufactured in Alabama, his explanation was simple — he asked.

“I saw on the news where they were doing the initial test flying and I thought, ‘Wouldn’t it be neat to have an Alabama boy fly the first American-made Airbus out of Mobile?’”

When asked if there was a sense of anxiety associated with flying the first Alabama-made Airbus, Smith admitted he was slightly nervous. He wasn’t nervous about the plane’s performance, however, but instead having a limited crew on board and the fact not all the planes features had been installed.

“It does have more power and a few of the systems have been upgraded,” Smith said of the A321. “It’s the largest one we fly.”

After finishing touches on the plane are made in Lake City, JetBlue will put the plane into

Article source: http://www.enewscourier.com/news/local_news/athens-native-pilots-first-alabama-made-airbus/article_e4e4fd4e-0c05-11e6-9e54-1b31662a866c.html

TUCSON, AZ (Tucson News Now) –

Desert View High School students are making plane parts for actual commercial jetliners.

Hi-Tech Machining Engineering is partnering with students in the Precision Manufacturing Class at the Sunnyside Unified School District school.

Why?

There are estimates that about half of machinists in the United States are 55 or older and that means retirement.

Add to that no pipeline of up and coming workers ready to take their place. 

Businesses in Tucson and across the country complain that they have the jobs, but young people need the skills.

That’s why Desert View High School and is giving students a head start in an industry where the sky’s the limit.

It’s an idea that manufacturing companies wish would take off across the country.

In the Desert View shop Jose Luis Lizarraga, lll, is checking the airplane part, a foot or mounting bracket for an oil separator

“And right there would be 451/1000 which is just within tolerance,” Lizarraga said.

When you’re building parts for airplanes, every measurement must be precise.

The idea of training high school students for high-skill, high-paying jobs meets many needs, including creating that skilled worker pipeline.

Desert View students learn design, drafting and machining.

They build tools they need.

One tool, a specialized wrench, normally would cost $50.

The students can make one for $10 to $12.

Hi-Tech Machining and Engineering has supported high school shop classes like Desert View’s for a long time.

The company is a member of Southern Arizona Manufacturing Partners, or

Article source: http://www.tucsonnewsnow.com/story/31820233/desert-view-high-students-building-airplane-parts-launching-their-careers

In energy news, San Francisco just scored a big victory for solar power with a new bill that will require photovoltaic panels to be installed on all new buildings. Meanwhile, Tokyo approved plans for a massive solar skyscraper with hanging gardens, and Disneyland flipped the switch on a giant photovoltaic farm shaped like Mickey Mouse. Researchers also discovered a way to make cheap, sustainable batteries from urine, and a new report shows how the world can completely phase out fossil fuels in just 10 years.

The World Health Organization has declared the Zika virus a public health emergency, so two creative agencies developed a billboard to raise awareness while trapping mosquitos by imitating human breath and sweat. In other design and technology news, researchers have developed clear glass bricks that are stronger than concrete, and a new 3D printing breakthrough could change the way that we consume clothing. Apple has been shoring up its environmental initiatives lately, and for Earth Day the company donated all proceeds from sales of 27 apps to conservation efforts. And on the interior design front, we spotted a table made from old Apple laptop keys and a brilliant chair that hooks up to a radiator to keep you warm in the winter.

Article source: http://www.engadget.com/2016/04/24/inhabitat-week-in-green-solar-impulse-trans-pacific-flight/

I am constantly on the lookout for ten baggers, stocks that have the potential to rise tenfold over the long term.

Look at the great long-term track records compiled by the most outstanding money managers, and they always have a handful of these that account for the bulk of their outperformance, or alpha, as it is known in the industry.

I’ve found another live one for you.

Elon Musk’s Space X (Private:SPACE) is so forcefully pushing forward rocket technology that he is setting up one of the great investment opportunities of the century.

In the past decade, his startup has accomplished more breakthroughs in advanced rocket technology than have been seen in the last half century, since the golden age of the Apollo space program.

As a result, we are now on the threshold of another great leap forward into space. Musk’s ultimate goal is to make mankind an “interplanetary species.”

There is only one catch.

Space X is not yet a public company, being owned by a handful of fortunate insiders and venture capital firms. But you should get a shot at the brass ring someday.

The rocket launch and satellite industry is the biggest business you have never heard of, accounting for $200 billion a year in sales globally. This is probably because there are no pure stock market plays.

Only two major companies are public, Boeing (NYSE:BA) and Lockheed Martin

Article source: http://seekingalpha.com/article/3967735-will-space-x-next-ten-bagger