In late December, the Board of Directors of Boeing met and decided CEO Dennis Muilenburg had handled the crisis of the 737 Max Jetliner wrong and for the company to regain the confidence of the travelling public, he had to go. It was not that he could correct the software but as the face of the company, he seemed not to give the empathy the public was seeking. It seemed to the public, the CEO was overly optimistic when the 737 would be flying as opposed to saying when we all governments signed off on the safety, we will fly. If you were flying would you be comfortable flying on a 737? You maybe but it would likely be in the back of your mind, no.
The stock market react positively to the news, however much effort will need to be done.
Linking to dividend paying stocks, companies similar to Boeing have many revenue streams, for Boeing they have other planes, they are involved with NASA, they are involved in the defense industry and President Trump increased that budget, so although the 737 Max is important for the years to come, Boeing is still a large and important company to the government of the US. In addition, Boeing major competitor is Airbus which is an European based company, can you imagine the US not having an aircraft company? The company has many elements going for it, but if the CEO does not make its customers and suppliers have confidence then changes had to be made. If you own the stock, watch for the better because the stock seems to have a bottom for now.
There are more questions than answers, till the next time – to raising questions.